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X. Supporting Slides. Systems for Planning & Control in Manufacturing: Systems and Management for Competitive Manufacture. Professor David K Harrison Glasgow Caledonian University Dr David J Petty The University of Manchester Institute of Science and Technology. ISBN 0 7506 49771. 0000.

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  1. X Supporting Slides Systems for Planning & Control in Manufacturing: Systems and Management for Competitive Manufacture Professor David K Harrison Glasgow Caledonian University Dr David J Petty The University of Manchester Institute of Science and Technology ISBN 0 7506 49771 0000

  2. 20 MRPII • Widely Employed by Early 1980's • ABCD Classification System • <10% Achieved Class "A" • Success of Japanese Manufacturers • Re-evaluation of MRPII 2001

  3. 20 Just-in-Time (JIT) An Approach that Attempts to Systematically Eliminate Waste Downtime Delay Defects Inventory Paper The Five Zeros An Integrated Approach 2002

  4. 20 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) 2003

  5. External Control 20 Push Vs Pull Systems Push Pull Kanban Squares - Control Comes From Within the System 2004

  6. 20 Kanban Squares Machine 2 Machine 1 Machine 3 Raw Material Finished Goods Production Triggered Production Triggered Production Triggered Product Consumed 2005

  7. Empty Container from Downstream Workcentre W W P W P Withdrawal Kanban Production Kanban W P W P 20 Two Card Kanban – Step 1 Input Queue Output Queue Machine Step 1 2006

  8. W P P W W W P P W W P P Production Kanban Removed From Empty Container 20 Two Card Kanban – Steps 2 and 3 Step 2 P W Full Container Sent to Downstream Workcentre P Production Kanban Removed From Empty Container Step 3 W P W 2007

  9. P W W P P W W P 20 Two Card Kanban – Steps 4 and 5 Step 4 W P P W P P Empty Container Sent to Upstream Workcentre Step 5 W W Full Container From Upstream Workcentre 2008

  10. 20 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 2009

  11. W W W W W W 20 One Card Kanban – Steps 1, 2 and 3 Step 1 W Empty Container Sent from Downstream Workcentre Full Container Sent to Downstream Workcentre Step 2 W W W Step 3: Production Triggered by External Control 2010

  12. W W W W 20 One Card Kanban – Steps 4 and 5 Step 4 W W Empty Container Sent to Upstream Workcentre Step 5 W W Full Container From Upstream Workcentre 2011

  13. 20 One Card Kanban – Key Points • Requires an External Control System • Hybrid Push-Pull System • No Production Kanbans • Only Controls the Input Queue 2012

  14. Kanban Racks Signal Kanbans • Lights • Flags • Golf Balls N =Number of Kanbans Ad = Average Demand Over Unit Time Lt = Lead-Time Ss =Safety Stock C = Container Size Signal Transmission Number of Kanbans 20 Other Kanban Techniques 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 2013

  15. 20 Model for JIT Use within MRPII/ERP Financial Systems Supplier Schedules Customer Schedules Purch Order Processing Sales Order Processing Payments ERP Invoices Inventory Control Raw Material Finished Product W/C 1 W/C 2 W/C 3 W/C 4 W/C 5 W/C 6 Kanban Control 2014

  16. 20 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 STK STK Transaction Due Launch Date Date Process Process Process FGI RM 1 3 2 Due Work in Process Due Date Date SO PO Receipt Lead Time (Lt ) Despatch Lt Must be Short 2015

  17. 20 JIT Pre-Requisites • Repetitive Manufacture • Machine Layout • Small Lot Sizes • Reliability • Multi-skilled Environment • Stable MPS The JIT Philosophy Can be Applied Even if Kanban is Inappropriate 2016

  18. 20 Effect of Lead-Time and Lot-Size (1) 22 23 24 25 26 27 28 Stk. = 0 A Orders 15 20 L = 2 Wks t A 0 Gross Req. 15 20 Stk. = 5 1 B L = 30 Net Req. 10 20 s D B 2 L = 2 Wks 2-Off t Order 30 3 D C 4 Gross Req. 5 30 Stk. = 0 C L = 30 Net Req. 6 30 Pur s L = 3 Wks t Order 7 30 Pur 8 Pur Gross Req. 30 40 30 Stk. = 10 D Net Req. L = 100 20 40 30 s L = 4 Wks t Order 100 2017

  19. 20 Effect of Lead-Time and Lot-Size (2) 22 23 24 25 26 27 28 Stk. = 0 A Demand Orders OEM 16 20 L = 2 Wks t Gross Req. 16 20 Stk. = 5 B L = 30 Net Req. 20 11 s Time L = 2 Wks t Order 30 30 1st Tier Demand Supplier Gross Req. 30 30 Stk. = 0 C L = 30 Net Req. 30 30 s L = 3 Wks Time t Order 30 30 Demand 2nd Tier Supplier Gross Req. 30 40 62 Stk. = 10 D Net Req. L = 100 20 30 40 s L = 4 Wks t Order Time 100 100 100 2018

  20. 20 Classical Approach x = Inventory Level Ss= Safety Stock x 1 x + Ss 2 2019

  21. 20 JIT Approach y = Inventory Level y 1 y - Reduction 2 2020

  22. 20 Traditional Purchasing Philosophy • Labour Most Significant • Time Spent on Expediting • Emphasis on Price • Adversarial Relationship • Formal Relationship Expediting Administration 60% 30% Sourcing 10% Purchase Order Purchasing Department Sales Department Requisition Planned Works Order Production and Inventory Control Department Production and Inventory Control Department Customer Supplier 2021

  23. 20 JIT Purchasing Philosophy • Labour Only One Factor • Price Only One Factor • More Time Spent on Sourcing • Cooperative Relationship • Direct PIC Relationship Expediting 10% Administration 20% Sourcing 70% Blanket Purchase Order Purchasing Sales Anticipated Volumes Anticipated Volumes PIC PIC Customer Supplier Call-Off 2022

  24. 20 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 2023

  25. 20 Comparison of Approaches Technique Principles Infinite Capacity MRPII/ERP Data Accuracy Planning Set-up Time JIT Kanban Control Reduction Forward Finite Focus on OPT Scheduling Bottleneck 2024

  26. 20 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 2025

  27. Quality Management 21 • Development of Quality • Statistical Basis of Quality • Human Factors • Quality Costs • TQM • Certification 2101

  28. Quality Development 21 Quality is Conformance to Requirements 1920 Quality Assurance and SPC 1950 Introduction into Japan 1970 Just-in-Time 1980 TQM and Certification 1990 Extended use of TQM 2102

  29. Random Variations Special Causes 21 SPC Size Diagram A Deviations Upper Limit Mean Lower Limit Batch Size Size Diagram B Diagram C Upper Limit Upper Limit Mean Mean Lower Limit Lower Limit Batch Batch 2103

  30. 21 Processes in Control Size Diagram C Batch • 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) Upper Limit Mean Lower Limit Batch • Quality Management’s Objective is to Check the Process, Not the Product • Quality Cannot be Inspected into a Product or Service 2104

  31. 21 Fourteen Points 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. 2105

  32. 21 Quality Costs • Cost of Conformance (COC) • Cost of Non-Conformance (CONC) 2106

  33. Quality Cost Trade Off 21 Minimum Cost is the Acceptable Quality Level (AQL) • COC Overestimated • CONC Underestimated • AQLs Now Generally Discredited • Some Companies Have PPM Defects • Also True in Service Industries 2107

  34. TQM - Key Points 21 • 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 2108

  35. Human Factors 21 Organisation: 8-12 people, Common area, supervisor as moderator Training: Group processes, data collection, analysis techniques • Employee Involvement (EI) Crucial • Circles Less Successful in USA and Europe • Circles Have Worked Well in Service Industries Problem Identification: List alternatives, consensus, brainstorming Quality Circles Problem Analysis: Cause and effect, data collection/analysis Solution: Problem, results Presentation: Implementation, monitoring of results 2109

  36. Certification 21 • 70’s: BS5750 - Standard for Procedural Integrity • International Standard - ISO9000 • Independent Auditors • Common Condition of Business • Not a Quality Standard • Can be Over-Rated 2110

  37. Quality – Summary 21 • Revolution in Quality • Management Philosophy but Based on Statistics • Certification Now Common in Business • Wide Application 2201

  38. 22 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 2101

  39. 22 Management of Plant and Machinery Failure Rate Early Failure Wear-Out Failure • Plant Subject to Failure • Maximising ROI • Development of Terotechnology • Emphasis in Japan • Growth of TPM Normal Operation Time 2102

  40. Slow Running Only 45 Made (Tc = 1min/unit) = 75% 6 Scrapped = 80% Scrap 22 OEE 2 Hours Breakdown, Lack of Parts, Set-up, Lack of Services, No Operator, Etc. 1 Hour = 50% 2103

  41. 22 Fundamental Maintenance Strategies Repairs are Undertaken in Response to Problems • Breakdown • Preventative • Predictive Maintenance is Undertaken Routinely Based Upon Usage or Elapsed Time Plant is Monitored and Maintenance takes Place When Certain Conditions are Detected dB f 2104

  42. 22 Prevention Vs Breakdown Traditional Maintenance –Breakdown Cost Trade-Off Modified Maintenance –Breakdown Cost Trade-Off Total Cost Total Cost Cost Cost Breakdown Cost Breakdown Cost Maintenance Cost Maintenance Cost Low Medium High Low Medium High Level of Preventative Maintenance Level of Preventative Maintenance • 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 2105

  43. Preventative Maintenance Schedules Plant Register Work Order Processing Inventory Control Maintenance Costing Purchasing 22 Basic CMMS Package Structure • Now in Common Use • Can Reduce Admin • Can be Part of an ERP System 2106

  44. 22 Problems with CMMS • Lack of Commitment • A Breakdown Culture • Lack of Skills • Excessively Detailed Schedules 2107

  45. 22 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 2108

  46. 22 Five S • Seiri (Sort) • Seiton (Straighten) • Seiso (Sweep and Clean) • Seiketsu (Standardise) • Shitsuke (Sustain) 2109

  47. 22 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 Step 2 Step 1 Step 3 Step 4 Separate internal and external operations Convert internal operations to external Analyse current changeovers Streamline set-up Next Slide 2110

  48. 22 Streamlining Set-ups • Be Critical of the Existing Process • Be Cautious About Adding New Elements • Think Laterally About the Process 2111

  49. 22 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 2112

  50. X Course Book Systems for Planning & Control in Manufacturing: Systems and Management for Competitive Manufacture Professor David K Harrison Dr David J Petty ISBN 0 7506 49771 0000

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