COMPUTER AIDED PRODUCTION PLANNING & CONTROL

JAYESH SHARMA JOMY JOSEPH

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TRADITIONAL PPC SYSTEM

Sales and marketing Forecasting Production planning Master scheduling Reqmts. planning Machine loading & scheduling Dispatching Inventory control Design engineering Process planning Estimating

Purchasing

C U S T O M E R

Outside Suppliers

Production & assembly

Shipping & warehousing

Expediting

Quality control

PROBLEMS WITH TRADITIONAL PPC

Plant capacity problems Suboptimal production scheduling Long manufacturing lead times Inefficient inventory control Low work centre utilization Process planning not followed Errors in engg. and manufacturing records Quality problems

COMPUTER INTEGRATED SYSTEM

Cost planning and control Sales and marketing Forecasting Design engineering

Production Planning
Master schedule

Process Planning

Engineering and manufacturing database Capacity planning Inventory management

Purchasing

MRP

C U S T O M E R

SFC
Outside Suppliers Production & assembly

Shipping & warehousing

Quality control

KEY FEATURES OF CIPMS

Engineering and manufacturing database Material requirements planning Capacity planning

Inventory management
Shop floor control

Cost planning and control

1) Engineering and manufacturing database

Comprises all the information needed to fabricate the components and assemble the products. It includes Item master file Bill of material file Routing file Work center file Tool file
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Item master file

Bill of material file

Component item number Parent item number Quantity per parent Unit of measure Point of usage Parent operation number Scrap allowance Current engineering change number

Routing file
Routing number For each operation on the routing:

Operation number Operation description Work center Machine number Drawing number Tool number NC tape number Standard setup time

Standard labor run time per piece Standard machine run time per piece Interoperation time Overlap pieces or hours Number of machines for split operation Shrinkage Alternate option number

Work center file

Work center number Description Location Department number Number of machines Number of workers Work center efficiency Work center utilization Number of hours per shift Number of shifts Maximum daily hours Machine rate Labor rate Overhead rate Setup rate Queue time Wait time For each machine in work center: Machine number Machine description Last preventive maintenance date Next preventive maintenance date

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Tool file
Tool number Description Status (in use, available, being repaired) Number of tools Serial number Storage location Current assignment (work center, order number) Usage code Accumulated use since last repair Estimated tool life Date of last tool repair

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2) Material requirements planning (MRP)

Data Files M a s t e r p r o d u c t i o n s c h e d u l e BOM Master production schedule Output Reports
MRP by period report

MRP by date report

Lead times
(Item master file) Planned order report

Inventory data Material requirement planning programs (computer and software)

Purchase advice

Purchasing data

Exception reports Order early or late or not needed Order quantity too small or too large

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BENEFITS OF MRP
Customer service is improved Reduction in lead time for each time horizon. Reduction in work-in-process Reduction in past-due orders

Elimination of annual inventory

Increase in productivity

Capacity constraints are better understood

Inventory turn-over increases
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"Perhaps the greatest requirement of all for successful MRP installation and operation is discipline. This includes the discipline to maintain accurate stock records, the discipline to report accurately and in good time the completion of jobs and orders and to report to the system every event that MRP should be aware of. Many successful MRP installations have padlock on

the doors to the stockrooms."

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Closed loop MRP system

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Why closed loop MRP?

The common MRP (open loop) is static in the sense that problems with production machines, quality, labor, late delivery etc. make the output of MRP more or less irrelevant.

Manual updating is difficult and time consuming and

error prone also.

Closed loop MRP handle this problem of updating.

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How closed loop MRP works?

Purchase and production activities control modules interfaced with MRP-module. Dynamic updating of order status done by purchasing interface generates updated order status from which new planned order releases. Shop floor interface updates MRP production status by collecting daily production and operator time-sheet data.
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Manufacturing Resource planning (MRP II)

Once an MRP system is in place, inventory data can be augmented by other useful information

Labor hours
Material costs Capital costs Virtually any resource Then the system is called MRP II or Manufacturing Resource Planning
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Enterprise resource planning

An extension of the MRP system to tie in customers and suppliers

1. Allows automation and integration of many business processes

2. Shares common data bases and business practices 3. Produces information in real time Coordinates business from supplier evaluation to customer invoicing

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ERP modules include

Basic MRP Finance Human resources Supply chain management (SCM) Customer relationship management (CRM)

ERP systems can be integrated with

Warehouse management Logistics Electronic catalogs Quality management
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3) Capacity planning
Concerned with determining the labor and equipment resources needed to meet the production schedule.

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Capacity planning for short term adjustments include decisions on employment levels number of work shifts overtime or reduced workweek inventory stockpiling order backlogs subcontracting Capacity planning for long term requirements investing in more productive or new type of machines new plant construction acquisitions and buyouts closing down or selling off
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4) Inventory management
The inventory management module of the CIPMS should accomplish two major functions. Inventory accounting Inventory planning and control

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Inventory accounting
Inventory accounting is concerned with inventory transactions and inventory records. Inventory transactions include

receipts issues returns & loans

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Inventory planning and control

Many of the planning and control activities are accomplished by the MRP module. Other functions include Determining economic lot sizes Determining safety stock levels Determining reorder points ABC inventory analysis Analysis of usage rates for lot size calculations Automatic generation of purchase requests

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4) Shop floor control

The functions of a shop floor control system are

Priority control and assignment of shop orders

Maintain information on WIP for MRP Monitor shop order status information Provide production output data for capacity control

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Software modules in SFC system

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4) Cost planning and control

It receives data from all other CIPMS modules and reduces them to a lowest common denominator : money
Input source Bill of materials Input Components & materials used

Process route sheets Manufacturing operations employed Time standards Operation times Labor & machine rates Associated cost Material quotations Accounting data Material cost Overhead rates
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Cost control
Expected cost?

Actual cost?
Why difference?

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References
1)CAD/CAM, Mikell P. Groover 2)Computer based production and inventory control, Spencer B. Smith

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