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Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - 0000 X Supporting Slides Professor David K Harrison.

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Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld X Supporting Slides Professor David K Harrison.

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Presentation on theme: "Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - 0000 X Supporting Slides Professor David K Harrison."— Presentation transcript:

1 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld X Supporting Slides Professor David K Harrison Glasgow Caledonian University Dr David J Petty The University of Manchester Institute of Science and Technology Systems for Planning & Control in Manufacturing: Systems and Management for Competitive Manufacture ISBN

2 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Finite Capacity Scheduling (FCS) Doubts Over MRPII by 1980's Use of JIT Techniques Development of OPT by Goldratt in 1970's Publication of "The Goal" Marketing of the OPT Software Package This Section Will Examine FCS, ICS and OPT

3 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - MRP Limitations JobA Quantity100 Due Date07/10 Operation 10Work Centre001 Set Time60 Mins Unit Time 2 Mins 20Work Centre002 Set Time120 Mins Unit Time 3 Mins JobB Quantity100 Due Date07/10 Operation 10Work Centre001 Set Time120 Mins Unit Time 4 Mins 20Work Centre002 Set Time 60 Mins Unit Time 1.5 Mins Work Centre 001 Work Centre 002 Total Time to Manufacture A = 11.33Hrs Total Time to Manufacture B = 12.17Hrs MRP Assumptions: Fixed Lot Sizes Fixed Lead Times What is the Best Sequence for Manufacture?

4 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Finite and Infinite Scheduling MRP - Infinite, Backward Scheduling Method FCS - Finite, Forward Scheduling Method Due Date Now Start Date Due Date Now Start Date Lead Time MRP - Assumes Dominant Queuing Time 19 Time Base 1903

5 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Data 1 – Workcentres Efficiency Factor: 90% Efficiency Factor: 90% Efficiency Factor: 90% Efficiency Factor: 90% £50/Hr £40/Hr £45/Hr £25/Hr 2 Shift Pattern 2 Shift Pattern 2 Shift Pattern 2 Shift Pattern 8 Hours per Shift 8 Hours per Shift 8 Hours per Shift 8 Hours per Shift 1 M/C in Group 1 M/C in Group 1 M/C in Group 1 M/C in Group Forging Press Lathe Vertical Mill Drill

6 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Data 2 - Routings Operation 10 W/C 1029 T s = 90 Mins T p = 2 Mins T m = 240 Mins T q = 480 Mins Set press to 15T. Operation 20 W/C 1013 T s = 80 Mins T p = 2 Mins T m = 240 Mins T q = 480 Mins Turn complete to drawing. Use NC tape number Operation 30 W/C 1019 T s = 90 Mins T p = 3 Mins T m = 240 Mins T q = 480 Mins Mill slots and inlet pockets to drawing. Use NC tape Operation 40 W/C 1023 T s = 45 Mins T p = 2 Mins T m = 240 Mins T q = 480 Mins Drill 15 holes, evenly spaced. Item Number: GDS8975T

7 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Example Routing Job 1 Job 2 Job 3 Job 4 Job 5 Job 6 Op 1.R1Op 2.R2Op 3.R3Op 4. R6 Op 1. R1 Op 2. R2 Op 3. R4 Op 4. R5 Op 1. R4 Op 2. R1 Op 3. R3 Op 4. R5 Op 1.R5Op 2.R1Op 3.R4Op 1. R6 Op 2. R4 Op 3. R2 Op 4. R1 Op 1.R2R3Op 2.Op 3.R5Op 4.R4Op 4.R6 R1R3R4R5R6R2 19 Op. = Operation R = Resource Op 4. R6 Operation 4 on Resource

8 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Infinite Scheduling - Example Op 1.R1 Op 1. R1 Op 1. R4 Op 1.R5 Op 1.R6 Op 1.R2 Op 2. R2 Op 2. R2 Op 2. R1 Op 2. R1 Op 2.R4 R3 Op 2. Op 3.R3 Op 3. R4 Op 3. R3 Op 3. R4 Op 3.R2 Op 3. R5 Op 4.R6 Op 4. R5 Op 4. R5 Op 4.R1 Op 4. R4 Op 4. R6 R1 Load Hrs Time (Days) R2 Load Hrs R3 Load Hrs R4 Load Hrs R5 Load Hrs R6 Load Hrs Overload Job 1 Job 2 Job 3 Job 4 Job 5 Job 6 Op 1.R1Op 2.R2Op 3.R3Op 4. R6 Op 1. R1 Op 2. R2 Op 3. R4 Op 4. R5 Op 1. R4 Op 2. R1 Op 3. R3 Op 4. R5 Op 1.R5Op 2.R1Op 3.R4 Op 1.R6 Op 2. R4Op 3.R2 Op 4. R1 Op 1. R2R3 Op 2.Op 3. R5 Op 4. R4 Op 4.R6 Due Date Lead Time Job 1 Job 2 Job 3 Job 4 Job 5 Job 6 Op 1.Op 2.Op 3.Op 4. Start Date Cap Time (Days) Op 1.R1 Op 1.R1 Op 1.R1 Op 1.R1 Op 1.R1 Op 1.R1 Op 1.R1 Op 1. R1 Op 1. R1 Op 1. R1 Op 1. R1 Op 1. R1 Op 1. R1 Op 1. R1 1907

9 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Infinite Scheduling - Key Points Jobs Never Late by Definition Problems Shown by Overloads Does not Provide Solutions Called CRP with MRPII/ERP

10 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Finite Capacity Scheduling (1) 1Determine Priority Sequence 2Load Jobs Progressively 3Optimise Schedule Different Methods Available Computers Commonly Used Manual Methods (e.g. Gantt Charts) Available General Approach

11 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Finite Capacity Scheduling (2) Job 1 Job 2 Job 3 Job 4 Job 5 Job 6 Op 1.R1Op 2. R2 Op 3.R3 Op 4. R6 Op 1. R1 Op 2. R2 Op 3. R4 Op 4. R5 Op 1. R4 Op 2. R1 Op 3. R3 Op 4. R5Op 1. R5 Op 2.R1 Op 3. R4 Op 1. R6 Op 2. R4 Op 3. R2 Op 4. R1 Op 1. R2R3 Op 2.Op 3.R5Op 4. R4 R1 R2 R3 R4 R5 R6 Op 4. R6 Time

12 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Finite Capacity Scheduling (3) Job 1 Job 2 Job 3 Job 4 Job 5 Job 6 Op 1.R1Op 2. R2 Op 3.R3 Op 4. R6 Op 1. R1 Op 2. R2 Op 3. R4 Op 4. R5 Op 1. R4 Op 2. R1 Op 3. R3 Op 4. R5Op 1. R5 Op 2.R1 Op 3. R4 Op 1. R6 Op 2. R4 Op 3. R2 Op 4. R1 Op 1. R2R3 Op 2.Op 3.R5Op 4. R4 R1 R2 R3 R4 R5 R6 Op 1.R1 Op 2.R2 Op 3.R3 Op 4. R6 Op 4. R6 Time 19 Op 1.R1Op 1.R1Op 1.R1Op 1.R1Op 1.R1Op 1.R1Op 1.R1Op 1.R1Op 1.R1Op 1.R1Op 1.R1Op 1.R1Op 1.R1Op 1.R1Op 1.R1Op 1.R1Op 1.R1Op 1.R1Op 1.R1Op 1.R1Op 1.R1Op 1.R1Op 1.R1Op 1.R1Op 1.R1Op 1.R1Op 1.R1Op 1.R1Op 1.R1Op 1.R1Op 1.R1 1911

13 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Finite Capacity Scheduling (4) Job 1 Job 2 Job 3 Job 4 Job 5 Job 6 Op 1.R1Op 2. R2 Op 3.R3 Op 4. R6 Op 1. R1 Op 2. R2 Op 3. R4 Op 4. R5 Op 1. R4 Op 2. R1 Op 3. R3 Op 4. R5Op 1. R5 Op 2.R1 Op 3. R4 Op 1. R6 Op 2. R4 Op 3. R2 Op 4. R1 Op 1. R2R3 Op 2.Op 3.R5Op 4. R4 R1 R2 R3 R4 R5 R6 Op 1.R1 Op 2.R2 Op 3.R3 Op 4. R6 Op 4. R6 Time Op 1. R1 Op 2. R2 Op 3. R4 Op 4. R

14 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Finite Capacity Scheduling (5) Job 1 Job 2 Job 3 Job 4 Job 5 Job 6 Op 1.R1Op 2.R2 Op 3.R3 Op 4. R6 Op 1. R1 Op 2. R2 Op 3. R4 Op 4. R5 Op 1. R4 Op 2. R1 Op 3. R3 Op 4. R5 Op 1.R5 Op 2.R1 Op 3.R4 Op 1. R6 Op 2. R4 Op 3. R2 Op 4. R1 Op 1.R2R3Op 2.Op 3.R5Op 4.R4 R1 R2 R3 R4 R5 R6 Op 1.R1 Op 2.R2 Op 3.R3 Op 4. R6 Op 4.R6 Time Op 1. R1 Op 2. R2 Op 3. R4 Op 4. R5 Op 1. R4 Op 2. R1 Op 3.R3 Op 4. R5 Op 1. R5 Op 4.R6 Op 2.R1 Op 3.R4 Op 1. R6 Op 2. R4 Op 3. R2 Op 4. R1 Op 1.R2 R3 Op 2. Op 3.R5 Op 4.R

15 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Finite Scheduling - Key Points Resources Never Overloaded Problems Shown by Lateness Ignores Subjective Factors

16 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Schedule Optimisation R1 R2 R3 R4 R5 R6 Op 1.R1Op 2. R2 Op 3.R3 Op 4. R6 Time Op 1. R1 Op 2. R2 Op 3. R4 Op 4. R5 Op 1. R4 Op 2. R1 Op 3. R3 Op 4. R5 Op 1.R5 Op 4.R6 Op 2.R1 Op 3.R4 Op 1. R6 Op 2.R4 Op 3. R2 Op 4. R1 Op 1.R2 R3 Op 2. Op 3.R5 Op 4.R4 Idle Is this the Best Schedule? Objective Functions Permutations = m n Queue Minimum Makespan Minimum Tardiness Maximum Profit

17 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Johnson’s Algorithm Select Smallest Time Occurs at Machine 1? Place as Near to End as Possible Place as Near to Beginning as Possible Yes No Last Job? Yes List Jobs and Times No Finish Queue Machine 1 Machine 2 Which Sequence Will Minimise Makespan? Machine JobTime (1)Time (2) Seq. A B C D E F G H I J D A H I E F G J C B

18 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Work-to-Lists MRP Due Date MRP Start Date Op 10 Op 20 Op 30 Op 40 Back Scheduling Logic Prioritisation Rules Work Centre 0290 Centre LathesIssue Date17/04/05 Work Order Number Part Number Operation Due Due Date GOS1365 GDS1987 PFF1888 TDS3687 TDS /05/05 07/05/05 12/05/05 16/05/05 17/05/05 Next Work Centre Previous Work Centre Order Due Date 18/04/05 19/04/ Quantity 1000 Issued to Each Work Centre Means of Detailed Control Issued Daily

19 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Prioritisation and Sequencing – 1 SPT* EDD* LPT mn Today Due Time Available (T ) a Static Rules

20 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Prioritisation and Sequencing – 2 Dynamic Rules FIFO* C r * L S * LSPRO* mn Today Due Time Available (T ) a

21 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Prioritisation and Sequencing – 3 Least Loaded Next W/C Easiest Next Set-up* Biggest Bonus Who Shouts Loudest Undefined Informal Rules mn Today Due Time Available (T ) a

22 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Prioritisation and Sequencing – 4 ABCDEFGHIJABCDEFGHIJ Priority List Selection Window This Approach is a Compromise Between Set-Up Time and Manufacturing in a sequence related to Customer Requirements

23 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Shop Floor Feedback Completions Time Required Process Data Labour Productivity M/C Efficiency M/C Breakdowns Scrap Rework Defect Analysis Remote Entry Shop Floor Terminals Data Collection Smart Tag Direct Interface Controller Transducer Hand Held Computer Software Application

24 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Short Interval Scheduling (SIS) Upload Download Interface Hybrid Approach Simulation What-if Analysis Operational Rough Cut Capacity Planning Cannot Cope with a Heavily Overloaded Situation SIS System Material Requirements Planning Master Production Scheduling Sales and Operations Planning Business Planning Capacity Requirements Planning Realistic Shop Floor Control No Yes Purchasing

25 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Rough Cut Capacity Planning – 1 Objective: to Check that the MPS is Valid MPS RCCP Resources Production Line Critical Work Centres Labour Key Supplier Capacity Testing Product Load Profile Resource Load Profile Time Capacity Load Per Unit Load Time Before Due Date

26 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Rough Cut Capacity Planning – 2 Objectives Checks MPS Validity Shows Impact of Product Mix Allows "What-if" Analysis Limitations Only Consider Key Resources Ignores Inventory of Components Does not Monitor Work Order Execution

27 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - RCCP vs CRP Definition Method Frequency Objective Precision Data Speed Use RCCP CRP Calculation based on all works orders As required 1. Post-MRP analysis 2. Determining bottlenecks Aggregate Detailed MPS and product load profiles FastTypically longer than MRP Virtually all users of formalA minority of users manufacturing management Systems Detailed evaluation of load based at work centre level Estimated Load on critical resources based on MPS Following each MRP run - typically once a week 1. Pre-MRP evaluation of MPS 2. Operational planning Works orders, work centres, routings and works order status Use of MPS and product load profiles

28 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Disadvantages of CRP Data Hungry Need for Feedback Timing of Information

29 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - OPT Background Doubts Over MRPII Developed by Dr EM Goldratt in the 1970s. OPT has Two Elements Philosophical Finite Scheduling Algorithm

30 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - OPT Principles "The Goal" - To Make Money OPT Emphasises the Importance of Bottlenecks. A Bottleneck is any Resource where Capacity is less than Load Operating Expense Inventory Throughput Cash Flow ROCE Net Profit

31 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Ten Rules of OPT 1.Balance flow, not capacity. 2.The level of utilisation of a non-bottleneck is determined not by its own potential, but by some other constraint in the system. 3.Utilisation and activation of a resource are not necessarily the same thing. 4.An hour lost at a bottleneck is an hour lost for the total system. 5.An hour saved at a non-bottleneck is a mirage. 6.Bottlenecks govern both throughput and inventory. 7.The transfer batch may not, and many times should not, be equal to the processbatch. 8.The process batch should be variable, not fixed. 9.Capacity and priority should be considered simultaneously, not sequentially. 10.The sum of local optima is not equal to the optimum of the whole system

32 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Process and Transfer Batches Standard Case – Process Batch and Transfer Batch the Same Size Operation 10 Operation 20 Operation 30 Operation 40 Process Batch Larger than the Transfer Batch Op 10 Op 20 Op 30 Op

33 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Process and Transfer Batches - 2 Process Transfer Process Batch = 9 Transfer Batch =

34 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Process and Transfer Batches - 3 Process Transfer Process Batch = 9 Transfer Batch =3 Transfer 19 Second Process Starts Earlier WIP is Reduced Lead Time is Reduced Increased Material Handling 1933

35 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - OPT Mechanics BOM BUILDNET Routing Initial SERVE Analysis SPLIT OPT Network SERVE Network SERVE OPT Non-Critical Resource Schedule Critical Resource Schedule

36 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - OPT Features Lot Sizes Variable Transfer Batch Variable Process Batch Set-up Tabular Approach to Dependencies Reports Utilisation Stockman Despatch Daily Foreman Raw Material Requirements

37 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - OPT Network Raw Material Finished Goods Inventory Components Assemblies Critical Capacity Restraint Critical Resource Network Non Critical Resource Network

38 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Drum-Buffer-Rope Analogy Drum. The Scheduling Rhythm. Rope. "Pulling" Material into the System. Buffers. Providing a Time Safety Margin. Rope Bottleneck Resource Material Launched into System Drum Buffer

39 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Limitations of FCS Complex Expensive Stochastic Process and Set-up Times Set-up Time Dependency Automatic Rescheduling of a Backlog Cannot Act as a Substitute for Poor Management

40 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - FCS - Summary FCS - Relatively Old Approach Made Popular By OPT Simulation of the Manufacturing System Can be Employed in Several Forms Full Scheduling System Short Interval Scheduling Enhanced RCCP Will be Used More Widely in the Future (APS)

41 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - AlterCo Case Study - Overview Location East Lancashire Size 315 Employees Turnover £15M Products Alternators Production 6000 units/wk Spares Production None Business Type Make to stock and order Variety 100 stock types plus specials

42 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - AlterCo - History Problems in the 70's Overdues Excessive Overtime Excessive Inventory Shortages Computer System Lost Credibility Serious Cash Flow Problems

43 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - AlterCo – Bill of Material

44 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - AlterCo – Material Flow Raw Material Stores Shaft Winding End Cover Other Component Stores Line Assembly Finished Goods Stores Despatch Line Parts

45 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - AlterCo – The Initial Response Increase Batch Size to Improve Efficiency Sequence Work to Minimise Set-ups Increase Lead Times Increase Capacity in All Areas The Companies Position was Becoming Serious

46 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - AlterCo - The Exercise Planned to Take Similar Actions Set-up a Project Team Their Objective - Short Term Improvement Your Task What was the Project Team's Assessment? What Action Did they Take?

47 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - AlterCo – The Real Problems (1) Winding was a Bottleneck Surprisingly, Other Sections Also Had Overdues Other Sections Were Making the Wrong Types Manufacture in the Wrong Sequence Unmatched Inventory

48 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - AlterCo – The Real Problems (2) Sequenced Work Increase Batches Increased Capacity Increased Lead Time Increased Overdues Increased Overtime Increased Stocks Increased WIP

49 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - AlterCo – The Short Term Solution Customer Orders MRP Winding Other Manufacturing Sections

50 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - AlterCo – The Results (1) Output of Finished Goods Up Most Overdue Jobs Completed First Overtime Eliminated Except for Winding Reduced Purchasing in Short Term WIP/Lead Times Reduced Efficiency Reduced!!

51 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - AlterCo – The Results (2) Overall Overdues Overall Output Shaft Output End Cover Stocks Shaft Lead Time Shaft WIP Shaft Stocks Performance Measure of Wks1 Wk JanuaryApril But the Project Team Advised Caution

52 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - AlterCo – The Need for Caution Stocks Would Eventually be Consumed Non-bottlenecks Would Need to Increase Output Only Winding had Any Forward Vision

53 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - AlterCo – The Long Term Solution Customer Orders MRP Manufacturing Sections Master Production Scheduling Capacity Constraints (General) Capacity Constraints (Specific)

54 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - AlterCo – They All Lived Happily… Or did they……?

55 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Course Book Systems for Planning & Control in Manufacturing: Systems and Management for Competitive Manufacture Professor David K Harrison Dr David J Petty ISBN X 0000


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