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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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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 - MRPII 20 Widely Employed by Early 1980's ABCD Classification System <10% Achieved Class "A" Success of Japanese Manufacturers Re-evaluation of MRPII 2001

3 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Just-in-Time (JIT) PaperInventory DowntimeDefectsDelay The Five Zeros An Approach that Attempts to Systematically Eliminate Waste 20 An Integrated Approach 2002

4 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Elements of JIT Set-up Time Reduction Total Productive Maintenance (TPM) Total Quality Management (TQM) Use of Appropriate Plant Layout Supply Chain Management Use of "Pull" Control Systems Involvement of People Continuous Improvement (CI)

5 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Push Vs Pull Systems Push Kanban Squares - Control Comes From Within the System Pull External Control

6 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Two Card Kanban – Step 1 Machine Input Queue Output Queue W W W W P P P P W Empty Container from Downstream Workcentre Step 1 Withdrawal Kanban Production Kanban

7 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Two Card Kanban – Steps 2 and 3 W W W W P P P P Step 2 W Full Container Sent to Downstream Workcentre Production Kanban Removed From Empty Container W W W W P P P Step 3 P P Production Kanban Removed From Empty Container

8 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - P Two Card Kanban – Steps 4 and 5 W W W W PP P Step 4 Empty Container Sent to Upstream Workcentre W W W Step 5 W Full Container From Upstream Workcentre P P P P

9 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Two Card Kanban – Key Points System Always Returns to Original State True Pull System Cards Control Queues Advantages Over Kanban Squares No Need for Line of Sight Easy to Modify Queue Sizes Easy Introduction of New Products

10 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - One Card Kanban – Steps 1, 2 and 3 20 W W W W Step 1 W Empty Container Sent from Downstream Workcentre W W W Step 2 W Full Container Sent to Downstream Workcentre Step 3: Production Triggered by External Control W 2010

11 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - One Card Kanban – Steps 4 and 5 W W W W Step 4 Empty Container Sent to Upstream Workcentre W W W Step 5 W Full Container From Upstream Workcentre

12 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - One Card Kanban – Key Points Requires an External Control System Hybrid Push-Pull System No Production Kanbans Only Controls the Input Queue

13 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Other Kanban Techniques Signal Transmission Lights Flags Golf Balls Part Number:DP1035 Description:Disk Brake Pad Box Capacity:20 Box Type:A Issue Level:3 From: Pressing Cells 1-6 To: Heat Treat Example Card Number of Kanbans N =Number of Kanbans A d = Average Demand Over Unit Time L t = Lead-Time S s =Safety Stock C = Container Size 20 Kanban RacksSignal Kanbans 2013

14 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Model for JIT Use within MRPII/ERP ERP Sales Order Processing Customer Schedules Financial Systems Invoices Purch Order Processing Supplier Schedules Payments Inventory Control Kanban Control W/C 1 W/C 2 W/C 3 W/C 4 W/C 5 W/C 6 Raw Material Finished Product

15 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - JIT Extensions in ERP Packages Smoothing/Rate Levelling Facilities Simplified Order Systems, Including Electronic Data Interchange (EDI) Repetitive Manufacturing (No Works Orders) Provision for Backflushing Receipt/Issue Transaction Work in Process Launch Date Due Date PO Receipt SO Despatch Due Date Due Date Lead Time (L t ) RM STK FGI Process L t Must be Short

16 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - JIT Pre-Requisites Repetitive Manufacture Machine Layout Small Lot Sizes Reliability Multi-skilled Environment Stable MPS 20 The JIT Philosophy Can be Applied Even if Kanban is Inappropriate 2016

17 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Effect of Lead-Time and Lot-Size (1) Gross Req. Orders 30 Gross Req Gross Req Net Req. Order Net Req. Order Net Req. Order Stk.= 5 L = 30 L = 2 Wks t s Stk.= 0 L = 30 L = 3 Wks t s Stk.= 10 L = 100 L = 4 Wks t s Stk.= 0 L = 2 Wks t A DB DC Pur 2-Off A B C D

18 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Effect of Lead-Time and Lot-Size (2) Gross Req. Orders 30 Gross Req Gross Req Net Req. Order Net Req. Order Net Req. Order Stk.= 5 L = 30 L = 2 Wks t s Stk.= 0 L = 30 L = 3 Wks t s Stk.= 10 L = 100 L = 4 Wks t s Stk.= 0 L = 2 Wks t 30 A B C D 100 Demand Time 2nd Tier Supplier Demand Time OEM Demand Time 1st Tier Supplier

19 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Classical Approach 20 x + S s x 1 2 x = Inventory Level S s = Safety Stock 2019

20 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - JIT Approach 20 y - Reduction y 1 2 y = Inventory Level 2020

21 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Traditional Purchasing Philosophy Labour Most Significant Time Spent on Expediting Emphasis on Price Adversarial Relationship Formal Relationship Expediting 60% Administration 30% Sourcing 10% Customer Supplier Production and Inventory Control Department Sales Department Purchasing Department Requisition Purchase Order Planned Works Order 20 Production and Inventory Control Department 2021

22 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - JIT Purchasing Philosophy Labour Only One Factor Price Only One Factor More Time Spent on Sourcing Cooperative Relationship Direct PIC Relationship Sourcing 70% Administration 20% Expediting 10% Customer Supplier PIC Sales Purchasing Blanket Purchase Order Anticipated Volumes Call-Off

23 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - JIT Summary No Universal Definition -Elimination of Waste Decentralised Approach Some Companies Apply Selectively Can be Used with Other Approaches Most Influential Idea in Manufacturing

24 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Comparison of Approaches Focus on Bottleneck Forward Finite Scheduling OPT Kanban Control Set-up Time Reduction JIT MRPII/ERP Infinite Capacity Planning Data Accuracy TechniquePrinciples

25 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Planning and Control - Summary Great Attention on Planning and Control Vigourous Promotion Cannot Solve All Problems One Way of Gaining Competitive Advantage Intrinsic Part of the Operation of the Business No Technique is a Panacea

26 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Quality Management Development of Quality Statistical Basis of Quality Human Factors Quality Costs TQM Certification

27 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld Quality Assurance and SPC 1950Introduction into Japan 1970 Just-in-Time 1980 TQM and Certification 1990 Extended use of TQM Quality is Conformance to Requirements Quality Development

28 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Deviations Size Batch Upper Limit Lower Limit Mean Size Batch SPC Size Batch 21 Upper Limit Lower Limit Mean Upper Limit Lower Limit Mean Diagram A Diagram B Diagram C Special Causes Random Variations 2103

29 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Processes in Control Batch Quality Managements Objective is to Check the Process, Not the Product Quality Cannot be Inspected into a Product or Service Size Batch Upper Limit Lower Limit Mean Diagram C Most points are close to the mean and few near to the limits Comparable numbers of points are above and below the mean No pattern in the data exists (e.g., no trend up or down)

30 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - 1. Create a constancy of purpose 2. Adopt a philosophy of preventing poor-quality products 3. Eliminate the need for inspection 4. Select a few suppliers 5. Constantly improve the production process 6. Institute worker training that focuses on the prevention of quality problems and SPC 7. Instill leadership among supervisors to help workers perform better 8. Encourage employee involvement by eliminating the fear of reprisal 9. Eliminate barriers between departments 10. Eliminate slogans and numerical targets 11. Eliminate numerical quotas 12. Enhance worker pride, artisanry (craftsmanship) and self-esteem 13. Institute vigorous education and training programs in methods of quality improvement 14. Develop a commitment from top management to implement the previous thirteen points. Fourteen Points

31 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Quality Costs 21 Cost of Conformance (COC)Cost of Non-Conformance (CONC) 2106

32 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - COC Overestimated CONC Underestimated AQLs Now Generally Discredited Some Companies Have PPM Defects Also True in Service Industries Quality Cost Trade Off 21 Minimum Cost is the Acceptable Quality Level (AQL) 2107

33 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - TQM - Key Points Customers Define Quality Senior Management Provides Quality Leadership Quality is a Strategic Issue Quality is the Responsibility of All Continuous Quality Improvement is Crucial Cooperative Effort is Crucial Statistical Methods are Key Education/training are Essential for all Personnel

34 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Human Factors Organisation: 8-12 people, Common area, supervisor as moderator Training: Group processes, data collection, analysis techniques Problem Identification: List alternatives, consensus, brainstorming Problem Analysis: Cause and effect, data collection/analysis Solution: Problem, results Presentation: Implementation, monitoring of results Quality Circles Employee Involvement (EI) Crucial Circles Less Successful in USA and Europe Circles Have Worked Well in Service Industries

35 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Certification 70s: BS Standard for Procedural Integrity International Standard - ISO9000 Independent Auditors Common Condition of Business Not a Quality Standard Can be Over-Rated

36 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Quality – Summary Revolution in Quality Management Philosophy but Based on Statistics Certification Now Common in Business Wide Application

37 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Management of Plant and Machinery The Growing Importance of Maintenance Overall Equipment Effectiveness Maintenance Strategies Application of Computers Total Productive Maintenance Importance of Rapid Set-up

38 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Management of Plant and Machinery Plant Subject to Failure Maximising ROI Development of Terotechnology Emphasis in Japan Growth of TPM Normal Operation Early Failure Wear-Out Failure Rate Time

39 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - OEE 22 Breakdown, Lack of Parts, Set-up, Lack of Services, No Operator, Etc. 2 Hours 1 Hour = 50% Slow Running Only 45 Made (T c = 1min/unit) = 75%Scrap6 Scrapped = 80% 2103

40 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Fundamental Maintenance Strategies Breakdown Preventative Predictive Repairs are Undertaken in Response to Problems Maintenance is Undertaken Routinely Based Upon Usage or Elapsed Time Plant is Monitored and Maintenance takes Place When Certain Conditions are Detected dB f

41 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Prevention Vs Breakdown LowMediumHigh Level of Preventative Maintenance Cost Modified Maintenance – Breakdown Cost Trade-Off Cost LowMediumHigh Level of Preventative Maintenance Traditional Maintenance – Breakdown Cost Trade-Off Maintenance Cost Breakdown Cost Total Cost Breakdown Costs Often Underestimated Preventative Maintenance Costs Often Overestimated Breakdowns are More Serious in a JIT Environment Many Companies Have a Downtime Target of Zero Maintenance Cost Breakdown Cost Total Cost

42 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Basic CMMS Package Structure Plant Register Preventative Maintenance Schedules Work Order Processing Purchasing Inventory Control Maintenance Costing Now in Common Use Can Reduce Admin Can be Part of an ERP System

43 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Problems with CMMS 22 Lack of Commitment A Breakdown Culture Lack of Skills Excessively Detailed Schedules 2107

44 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Total Productive Maintenance (TPM) 120 Crucial to JIT and Strongly Related to TQM Whole Company Philosophy Emphasis on Reliability Not Repair Designing-Out Problems A Cultural Change Involves Operators

45 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Five S Seiri (Sort) Seiton (Straighten) Seiso (Sweep and Clean) Seiketsu (Standardise) Shitsuke (Sustain)

46 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - The SMED Approach Set-up Time Reduction Improves OEE and is Crucial for Small Lot Sizes Set-up Time Reduction Programmes are Common Single Minute Exchange of Dies (SMED) SMED is the Best Known Set-up Time Reduction Methodology 22 Analyse current changeovers Separate internal and external operations Convert internal operations to external Streamline set-up Step 1 Step 2 Step 3Step 4 Next Slide 2110

47 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Streamlining Set-ups Be Critical of the Existing Process Be Cautious About Adding New Elements Think Laterally About the Process

48 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Plant Management – Summary Maintenance Now Recognised as Being Crucial Reliability Crucial to Supporting JIT Breakdown Maintenance is Widely Discredited TPM is more than Preventative Maintenance Many Companies Have Not Changed Culture

49 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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