Assignment: Production management Question 1 The gross requirements schedule for a product Z is given below.

The management of the company believes in taking the advantage of Economic Order Quantity also and has decided on a EOQ for a product Z of 1 units . The lead time to produce Z is four weeks . !f the company units of Z and if# at this moment# there are $ items in believes in keeping a safety stock of "

stock # compute the %&' . (ssume a lot for lot ordering. )eek *o &equiremments 1 1 + 1 1 , 1 " 1+ . 1 $ 1 / 10 0 1 1 1 units of Z on

2uppose that the requirement schedule is the same as before and there are $

hand 3as before4 but# the company management is changing its procedures from keeping a safety stock to maintaining a safety time for production of Z. 5rom the limited data given below # ccompute the changed %&' . (ssume a lot for ordering # as ealier
Week Opening Balance Gross Requiremen !c"e#ule# Receip $ro%ec e# &n'en or( *e Requiremen $lanne# Or#er Week Opening Balance Gross Requiremen !c"e#ule# Receip 1 700 0 100 100 0 120 0 100 0 300 200 0 200 500 0 0 200 0 250 0 0 190 0 0 100 2 3 4 5 6 7 8 9 10

700 0 100 0 1 700 0

600 0 200 2

500 0 200 0 3

500 0 100 0 4

600 190 0

600 0

)1700 1700

5 120 0 100 0

10

100

100

1900

100

$ro%ec e# &n'en or( *e Requiremen $lanne# Or#er

700 0 100 0

600 0

500 0

500 0 100 0

300 0 100 0

300 0

300 0

)1600 1600

) 1600 1600

) 1700 1700

Question + a4 what are i4 6pull7system and ii47push7 system Push System The push system of inventory control involves forecasting inventory needs to meet customer demand. 8ompanies must predict which products customers will purchase along with determining what quantity of goods will be purchased. The company will in turn produce enough product to meet the forecast demand and sell# or push# the goods to the consumer. 9isadvantages of the push inventory control system are that forecasts are often inaccurate as sales can be unpredictable and vary from one year to the ne:t. (nother problem with push inventory control systems is that if too much product is left in inventory. This increases the company;s costs for storing these goods. (n advantage to the push system is that the company is fairly assured it will have enough product on hand to complete customer orders# preventing the inability to meet customer demand for the product. (n e:ample of a push system is %aterials &equirements 'lanning# or %&'. %&' combines the calculations for financial# operations and logistics planning. !t is a computer1 based information system which controls scheduling and ordering. !t;s purpose is to make sure raw goods and materials needed for production are available when they are needed. Pull System The pull inventory control system begins with a customer;s order. )ith this strategy# companies only make enough product to fulfill customer;s orders. One advantage to the system is that there will be no e:cess of inventory that needs to be stored# thus reducing inventory levels and the cost of carrying and storing goods. <owever# one ma=or

disadvantage to the pull system is that it is highly possible to run into ordering dilemmas# such as a supplier not being able to get a shipment out on time. This leaves the company unable to fulfill the order and contributes to customer dissatisfaction. (n e:ample of a pull inventory control system is the =ust1in1time# or >!T system. The goal is to keep inventory levels to a minimum by only having enough inventory# not more or less# to meet customer demand. The >!T system eliminates waste by reducing the amount of storage space needed for inventory and the costs of storing goods.

b4 9istinguish between? i4 Specification 2pecification and Tolerance Tolerance Tolerance is the range within which deviations from specifications are acceptable. !n certain case# tolerances are specified on either side# i.e the These normally comprise length# breadth# deviation can be on the lower side and higher side of specification. !n case of certain other thickness# diameter# height etc. and are essential the

for any manufactured product. These are specifications# they can on one side only# vi@# either mentioned normally on the drawings for on higher side or lower side# but not on both sides. manufactured products and in purchase orders Aross for bought out items. tolerance is the ma:imum tolerance permissible for a given class of fit.

ii4

%aster scheduling and loading

Master scheduling Loading %aster scheduling is the process by which a manufacturing operation is run. The master scheduler is the person or department in a manufacturing plant responsible for scheduling. The master scheduling department may be responsible for all aspects of scheduling such as Boading is a mechanical force applied slowly to an demand forecasting# the master production assembly or ob=ect. This can be contrasted with a schedule or mps# production planning# and dynamic load# which is a force that is applied rapidly. inventory planning. !n large operations# the Tests of static load are useful in determining the master scheduling group is its own department ma:imum allowable loads on engineering structures# and the other aspects of planning are handled by such as bridges# and they can also be useful in additional groups or departments. iii4 discovering the mechanical properties of materials.

5abrication and process and %etal working process Metal Working Process %etalworking is the process of working with metals to create individual parts# assemblies# or large scale structures. The term covers a wide range of work from

Fabrication Process

%anufacturing process in which an item is made 3fabricated4 from raw or semi1finished materials instead of being assembled from ready1made components or parts. iv4 Method study %ethod study and time study

large ships and bridges to precise engine parts and delicate =ewelry. !t therefore includes a correspondingly wide range of skills# processes# and tools.

Time Study

( time and motion study 3or time1motion study4 is a business efficiency technique combining the Time 2tudy work of 5rederick )inslow Taylor with the %otion 2tudy work of 5rank and Billian Ailbreth 3the same couple as is best known through the biographical 10" film and book 8heaper by the 9o@en4. !t is a ma=or part of scientific management 3Taylorism4. (fter its first introduction# time study developed in the direction of establishing standard times# while motion %ethod study is the systematic recording and study evolved into a technique for improving critical e:amination of e:isting and proposed work methods. The two techniques became ways of doing work# as a means of developing integrated and refined into a widely accepted and applying easier and more effective method applicable to the improvement and methods and reducing costs. v4 Elevator and 8onveyor upgrading of work systems.

Ele ator !on eyor The elevator 3or lift in the 8ommonwealth ( conveyor system is a common piece of e:cluding 8anada4 is a type of vertical transport mechanical handling equipment that moves equipment that efficiently moves people or materials from one location to another. goods between floors 3levels# decks4 of a 8onveyors are especially useful in building# vessel or other structure. Elevators are applications involving the transportation of generally powered by electric motors that either heavy or bulky materials. 8onveyor systems drive traction cables or counterweight systems allow quick and efficient transportation for a like a hoist# or pump hydraulic fluid to raise a wide variety of materials# which make them cylindrical piston like a =ack. very popular in the material handling and industries. %any kinds of !n agriculture and manufacturing# an elevator is packaging

any type of conveyor device used to lift conveying systems are available# and are materials in a continuous stream into bins or used according to the various needs of

silos. 2everal types e:ist# such as the chain and different

industries.

There

are

chain

bucket bucket elevator# grain auger screw conveyors 3floor and overhead4 as well. conveyor using the principle of (rchimedes; 8hain conveyors consist of enclosed tracks# screw# or the chain and paddlesCforks of hay !1Deam# towline# power E free# and hand elevators. pushed trolleys.

Question No 3 a4 ( workshop has + identical machines whose failure pattern is as below? Elapsed time (months) 1 + , " . No. of machines failed , , , , -

!t cost &s. 1"

attend to a broken1down machine. ( maintenance contractor offers

preventive maintenance of the machines and in return guarantees no failure of the machine for one year. <e charges &s. -" per machine per year. )ould you go for preventive maintenance contractF The cost of preventive maintenance is &s. -" G+ H &s. 0 5rom the data given E:pected time before failure H 3-C+ 4G1 I 3,C+ 4G+I3,C+ 4G,I3,G+ 4G-I3,C+ 4G"I3-C+ 4G. H ,." months per annum

*os. of repair per machine per annum H 1+C,." 8onsidering + machines and &s. 1" to attend a failed machine# the yearly 8ost of servicing H 31+C,."4 G + G 1" H &s. 1 #+/. 'reventive maintenance# which is only &s. 0 per year would be cheaper# as compared to breakdown maintenance cost which is &s. 1 #+/.. b4 9istinguish between ? 3a4 2pecification and ToleranceJ Specification Tolerance Tolerance is the range within which deviations from specifications are acceptable. !n certain case# tolerances are specified on either side# i.e the These normally comprise length# breadth# deviation can be on the lower side and higher side of specification. !n case of certain other thickness# diameter# height etc. and are essential the

for any manufactured product. These are specifications# they can on one side only# vi@# either mentioned normally on the drawings for on higher side or lower side# but not on both sides. manufactured products and in purchase orders Aross for bought out items. 3b4 %aster scheduling and BoadingJ
Master scheduling +as er sc"e#uling is "e process ,( -"ic" a manu.ac uring opera ion is run/ 0"e mas er sc"e#uler is "e person or #epar men in a manu.ac uring plan responsi,le .or sc"e#uling/ 0"e mas er sc"e#uling #epar men ma( ,e responsi,le .or all aspec s o. sc"e#uling suc" as #eman# .orecas ing1 "e mas er pro#uc ion sc"e#ule or mps1 pro#uc ion planning1 an# in'en or( planning/ &n large opera ions1 "e mas er sc"e#uling group is i s o-n #epar men an# "e o "er aspec s o. planning are "an#le# ,( a##i ional groups or #epar men s/ Loading

tolerance

is

the

ma:imum

tolerance

permissible for a given class of fit.

2oa#ing is a mec"anical .orce applie# slo-l( o an assem,l( or o,%ec / 0"is can ,e con ras e# -i " a #(namic loa#1 -"ic" is a .orce "a is applie# rapi#l(/ 0es s o. s a ic loa# are use.ul in #e ermining "e ma3imum allo-a,le loa#s on engineering s ruc ures1 suc" as ,ri#ges1 an# "e( can also ,e use.ul in #isco'ering "e mec"anical proper ies o. ma erials/

3c4 5abrication process and %etal working processJ

Fabrication Process Metal Working Process +e al-orking is "e process o. -orking -i " me als o crea e in#i'i#ual par s1 assem,lies1 or large scale s ruc ures/ 0"e erm co'ers a -i#e range o. -ork .rom large s"ips an# ,ri#ges o precise engine par s an# #elica e %e-elr(/ & "ere.ore inclu#es a correspon#ingl( -i#e range o. skills1 processes1 an# ools/

+anu.ac uring process in -"ic" an i em is ma#e 4.a,rica e#5 .rom ra- or semi) .inis"e# ma erials ins ea# o. ,eing assem,le# .rom rea#()ma#e componen s or par s/

3d4 %achine availability and %achine utili@ation

Machine Availability +ac"ine a'aila,ili ( is "e ac ual ime le. .or pro#uc ion a. er su, rac all planne# #o-n ime .rom "e pro#uc ion ime Machine Utilization 0"e measure o. mac"ine "ours recor#e# agains pro#uc ion 's/ "e "ours a'aila,le or sc"e#ule# .or a gi'en perio#/ & re.ers o "e e3 en "a (ou are using a mac"ine e..icien l(/

3d4 %ethod study and time studyJ

Method study Time Study 6 ime an# mo ion s u#( 4or ime)mo ion s u#(5 is a ,usiness e..icienc( ec"nique com,ining "e 0ime ! u#( -ork o. 7re#erick Winslo- 0a(lor -i " "e +o ion ! u#( -ork o. 7rank an# 2illian Gil,re " 4 "e same couple as is ,es kno-n "roug" "e ,iograp"ical 1950 .ilm an# ,ook 8"eaper ,( "e 9o:en5/ & is a ma%or par o. scien i.ic managemen 40a(lorism5/ 6. er i s .irs in ro#uc ion1 ime s u#( #e'elope# in "e #irec ion o. es a,lis"ing s an#ar# imes1 -"ile mo ion s u#( e'ol'e# in o a ec"nique .or impro'ing -ork me "o#s/ 0"e -o ec"niques ,ecame in egra e# an# re.ine# in o a -i#el( accep e# me "o# applica,le o "e impro'emen an# upgra#ing o. -ork s(s ems/

+e "o# s u#( is "e s(s ema ic recor#ing an# cri ical e3amina ion o. e3is ing an# propose# -a(s o. #oing -ork1 as a means o. #e'eloping an# appl(ing easier an# more e..ec i'e me "o#s an# re#ucing cos s/

3f4 Elevator and 8onveyor.

Elevator 0"e ele'a or 4or li. in "e 8ommon-eal " e3clu#ing 8ana#a5 is a (pe o. 'er ical ranspor equipmen "a e..icien l( mo'es people or goo#s ,e -een .loors 4le'els1 #ecks5 o. a ,uil#ing1 'essel or o "er s ruc ure/ ;le'a ors are generall( po-ere# ,( elec ric mo ors "a ei "er #ri'e rac ion ca,les or coun er-eig" s(s ems like a "ois 1 or pump "(#raulic .lui# o raise a c(lin#rical pis on like a %ack/ &n agricul ure an# manu.ac uring1 an ele'a or is an( (pe o. con'e(or #e'ice use# o li. ma erials in a con inuous s ream in o ,ins or silos/ !e'eral (pes e3is 1 suc" as "e c"ain an# ,ucke ,ucke ele'a or1 grain auger screcon'e(or using "e principle o. 6rc"ime#es< scre-1 or "e c"ain an# pa##les=.orks o. "a( ele'a ors/

onveyor 6 con'e(or s(s em is a common piece o. mec"anical "an#ling equipmen "a mo'es ma erials .rom one loca ion o ano "er/ 8on'e(ors are especiall( use.ul in applica ions in'ol'ing "e ranspor a ion o. "ea'( or ,ulk( ma erials/ 8on'e(or s(s ems alloquick an# e..icien ranspor a ion .or a -i#e 'arie ( o. ma erials1 -"ic" make "em 'er( popular in "e ma erial "an#ling an# packaging in#us ries/ +an( kin#s o. con'e(ing s(s ems are a'aila,le1 an# are use# accor#ing o "e 'arious nee#s o. #i..eren in#us ries/ 0"ere are c"ain con'e(ors 4.loor an# o'er"ea#5 as -ell/ 8"ain con'e(ors consis o. enclose# racks1 &)Beam1 o-line1 po-er > .ree1 an# "an# pus"e# rolle(s/

Question No 4: a4 )hat do you mean by K'lant 2hut 9ownKF Lnder what situations will you advise to resort to 'lant 2hut 9ownF

The words Mplant shutdownN O even if referring to a temporary one O can be associated with a long litany of negatives. 2topping production# no matter the duration# results in decreased revenue. The additional resources and other costs associated with the shutdown make it a very e:pensive endeavor. %ost shutdowns are highly comple: and carry inherent safety risks. (nd as compared to other maintenance procedures# shutdowns are more unpredictable since there are many opportunities to discover or create problems involving e:pensive equipment and machinery.

There is a positive side# however. 'lanned shutdowns are almost always undertaken because ultimately they are good for business. They lead to improvements in the performance of equipment and processes and enable product modifications. (nd they are an opportunity to reduce the energy# materials# safety ha@ards# or waste associated with manufacturing.

!t7s clear that although the actual shutdown may fall on the shoulders of internal and e:ternal resources responsible for maintenance# engineering# procurement# and pro=ect management# a shutdown impacts other business functions such as finance# sales# product design# top management as well O in short# the entire company. !t is the most critical and time1consuming of the phases. 8ontributing to the comple:ity is the need to prepare for how the equipment and systems will be both removed from and returned to service. This is significant because in many plants it is necessary to start up systems in a specific sequence in order to allow upstream systems to come online. (s a simple e:ample# in most chemical# food and beverage# and pharmaceutical shutdowns# it is critical to start up systems that supply water for in=ection# then those that convert water to high1pressure steam# followed by those that generate clean steam.

5urthermore# the cleaning procedures that are required in a cA%' 38urrent Aood %anufacturing 'ractice4 facility require certain utilities be operational in order to provide the raw materials for the cleaning processes to occur. (ll these steps must be orchestrated in an efficient manner in order to stay on track. (ny breakdowns along the way have a domino effect that puts the schedule and budget at risk. The coordination phase usually takes a minimum of three months to be e:ecuted properly and can take upward of si: months on comple: shutdowns. <ere7s some advice for the coordination phase?

De diligent about communicating to all groups. 2hutdowns are the ultimate team sport in which winning is a coordinated effort. (s such# continuous# clear communication among

the team members is absolutely necessary. Peep in mind that some internal staff may be novices when it comes to shut down procedures and protocols. They will need detailed instruction and oversight prior to and during the pro=ect.

8omple: shutdowns require the cooperation of rank1and1file employee groups. They need to know if their normal routines# like access to certain areas inside or outside of the building# will be compromised. %aking employees aware of the reason for the shutdown# its duration# and the benefits to the company will ease any concerns they might have. Qou and your contractors should use the established communication channels to routinely inform employees and distribute pro=ect information.

The shutdown may be an opportunity to piggyback scheduled maintenance or other pro=ects that are difficult or impossible to e:ecute when the systems are operational. Lnless these are planned into the coordination activities# they can =eopardi@e the agreed upon budget and schedule. The pro=ect manager needs to confirm if the facility has any intention to run non1shutdown related pro=ects during the e:ecution phase.

b4 ( factory has three departments :# y and @ to manufacture two products ( and D. 9epartment ;:; can produce parts for $ Lnits of ( or parts for 1+ parts for ( or " units of D per parts for D week# but cannot do both at the same time# through parts for some ( and some D can produced. 2imilarly# department ;y; can produce 0 or combinations in between. 5inal assembly is undertaken in department ;@; with separate assembly lines for ( and D with ma:imum capacities of . and units respectively. Doth lines can be operated at the same time. )hat is the optimal product mi:F

Bet the optimal quantity of the product 6(7 be % numbers and optimal quantity of product 6D7 be * numbers. 2o constraints of 6R7 will be %C$ %C$ I *C1+ I *C1+ S1 H1 OOO3i4 !gnoring inequality# Or# 1+ %I $ * H /%C0 %C0 I *C. I *C. S1 H1 OOOOO3ii4

5rom the constraints of 6Q7 department# !gnoring inequality# Or .%I 0 * H "%T. *T -

5rom the constraints of Z department# OOOOOOOO3iii4 OOOOOOOOO3iv4 OOOOO3ii4U+OOO3v4 OOO3i4

2olving equation 3i4and 3ii4 1+ %I 1/ * H 1 / 1+ %I $ * H /11 * H +* H +1/1./. 2ubstituting the value of * in Eq. 3ii 4 .%I0U+1/+ H "Or# . % H "Or# . % H ,-,.+ Or# %H "$+$. The values of % E * thus obtained satisfies the equations 3iii4 and 3iv4. Therefore the optimal 'roduct %i: is "$+/ units of ( E +1/+ units of D. V 10.,/

2ubstracting 3i4 from 3v4