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Need:
To overcome the hurdles faced in traditional
process plan
1. Retirement of planners
2. Time consumption
3. Understandability
Scope :
A direct link between CAD CAM
Better utilization
Benefits:
Improved legibility
Planning PPC
Control
Production Planning
Problem definition:
1. Deciding which products ?
How many of each required?
When they should be completed?
Production Control:
1. Monitoring the flow of resources
Aggregate
Product Design
Production
Planning
Aggregate
Planning
Master
Production
Schedule
Inventory Capacity
Records Planning
Detailed Material
Planning Requirements
Engineering &
Planning
Manufacturing
Data base
Production
Purchasing Shop Floor
Control
Department Control
Supplier
Operations Factory
Customer
Base Base
Aggregate Production Planning (APP):
High-level corporate planning activity
Coordination with plans of sales and marketing
Includes product currently in production, present and future
inventory levels
Master Production Schedule (MPS):
Medium range plan (setting for 6 weeks)
Specific schedule of individual products listed in APP
What and when the products required
Products in MPS:
1. Firm Customer Orders (Delivery in a scheduled date)
2. Forecast demand (Statistical forecasting technique)
3. Spare Parts (Repair parts stocked in service department)
Aggregate Production Plan
Week
Product Line 1 2 3 4 5 6 7 8 9 10
M Model Line 200 200 200 150 150 120 120 100 100 100
N Model Line 80 60 50 40 30 20 10
P Model Line 70 130 25 100
Week
Product Line 1 2 3 4 5 6 7 8 9 10
Model
Model M3 120 120 120 100 100 80 80 70 70 70
Model M4 80 80 80 50 50 40 40 30 30 30
Model N8 80 60 50 40 30 20 10
Model P1 50 100
Model P2 70 80 25
Material Requirements Planning (MRP):
Master schedule (end product) to detailed schedule (raw material)
Quantity of raw material
When to place an order and to deliver?
Independent demand and dependent demand
Demand for the product is unrelated to demand for other products (Final
parts and spare parts)
When directly related to the other product (raw material and sub assembly)
Input to MRP
MPS
Bill of Materials and other engineering data
Inventory record file
1. Item master data
2. Inventory status
3. Subsidiary data
Master Sales Orders
Production Sales Forecast
Schedule Spare Parts Requirement
Capacity
Inventory Material Planning
Record Requirements
File Planning
Bill of Materials
and other design Product Design
&
Manufacturing
Planned order releases Engineering
Manufacturing
for Engineering
1. Purchasing
2. Manufacturing and
other output reports
P1
S1 S2
C1 C2 C3 C4 C5 C6
M1 M2 M3 M4 M5 M6
Product Structure
MRP Function:
1. The quantities of sub assemblies and components must adjusted
with future inventory
MRP Failure:
Capacity
Planning
Material
Requirements
Planning Capacity Requirements
Planning
Capacity Adjustments:
Short term:
Employment levels: variation of employment in plant
Labor hours
Plant closings: Closing the factory which will not needed in future
Shop Floor Control:
Definition: Release of production orders to the factory, monitoring
and controlling the progress of the orders through the various work
centers and acquiring current information on the status of the
orders.
Phases:
1. Order Release
2. Order Scheduling
3. Order Progress
Factory
Factory Data
Shop Packet Dispatch list collection system
Closed loop system that integrates and coordinates all the major
functions to produce “Right product at right time”
Application:
1. Management planning
2. Customer service
3. Operations planning
4. Operations execution
5. Financial jucnction
Business Planning and Demand
planning
YES
Problem
NO
YES NO
Problem Required Schedule