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Integrated Production Processes (IPP)

Integrated Production Processes (IPP). Learning Objectives. Appreciate contemporary production trends. Understand role of ERPs in integrating total manufacturing environment. Know principal components of Integrated Production Processes (IPP). Recognize effects of automation on IPP.

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Integrated Production Processes (IPP)

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  1. Integrated Production Processes (IPP)

  2. Learning Objectives • Appreciate contemporary production trends. • Understand role of ERPs in integrating total manufacturing environment. • Know principal components of Integrated Production Processes (IPP). • Recognize effects of automation on IPP. • Understand key inputs, outputs, files, processes. • Identify principal challenges/opportunities. • Introduce supply chain management software

  3. ERPs - SAP Automotive Modules • Business Planning • Controlling • Finance & Accounting • Suppliers • Original Equipment Manufacturers • Aftermarket

  4. Managing Throughput Times • Push Manufacturing • Sales forecast drives production plan • Goods produced in large batches • Jobs wait until machines ready • Pull Manufacturing • Idle machine pulls job from previous machine • Theoretically, job = “batch” of one unit

  5. Features of Pull Approach • Short production runs • Continuous flow operations • Factory cells - all machines together • workers run more than 1 machine • Reduced WIP & FG inventories • Reduced floor space • improved layout/less inventory

  6. Cost Management/ Accounting - Trends • Shift to reporting to assist strategic planning/decision making • Increased emphasis - managing costs v. accounting for costs • Attack waste Vs. reporting variances • Flexible cost systems - responsive to change • Shift - cost structure - variable to fixed costs

  7. Cost Management/ Accounting – Trends ..contd. • Less DL - less use of DL to apply OH • Increase in OH component of total cost • 4th category (direct technology) added to DM, DL, OH • Use of Activity Based Costing (ABC) systems • Real-time data capture in factory • Shift from Std. cost systems to actual • Reduction in data-gathering costs • Collecting statistical + financial data

  8. Cost Management/ Accounting – Trends ..contd. • Replace detail reporting by shop order and/or operation with actg. for cell throughput time • Use cell throughput time v. DL to apply OH • Trend towards process cost systems v. job order systems • For mgt. purposes, abandonment of absorption costing • Accumulation of costs for decision making vs. valuing inventories

  9. Overview–ERP-Driven Manufacturing

  10. Production Planning/Control Systems • Manufacturing Resource Planning (MRP) • Master production schedule • Materials requirements planning (mrp) • Shop floor control • Just-in-time

  11. Just-in-time Objectives • Zero defects • Zero setup times • Small lot sizes • Zero lead times • Zero inventories

  12. JIT Implementation Features • Arrange factory in U-shaped work cells • Assign 1 worker to multiple machines • Give production workers authority to stop the line if they are behind schedule or if they discover defective parts • Require nearly constant parts production schedule • Develop vendor cooperation re deliveries • Simplify system for tracking movement of goods through factory

  13. Flexible Mfg. Systems Components • Group Technology • Computer-aided manufacturing • Computer-aided process planning • computer numerical control • robotics • automated guided vehicles • automated storage/retrieval systems • digital image processors • Automated data collection devices

  14. Overview: Production planning & control & cost accounting.

  15. Inventory system controls • Effectiveness of operations • maintain sufficient inventory to prevent stockouts • maintain sufficient inventory to maintain operational efficiency • minimize cost of carrying inventory • Efficiency of system operations • JIT materials acquisition • Warehouse bin locations • Resource security • periodic physical inventory counts • locked storerooms

  16. Summary • Contemporary production trends. • Role of ERPs in integrating total manufacturing environment. • Principal components of Integrated Production Processes (IPP). • Effects of automation on IPP. • Key inputs, outputs, files, processes. • Supply chain management software

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