Hessel Visser NCOI Les 6 A P 373. Operations Management, 7E: Chapter 14 en15

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1 1 Lecture Planning and Control 14 Enterprise Resource Planning (ERP) 15 Lean synchronization 16 Project Management (zie andere sheets) 17 Quality Management (zie andere sheets) Hessel Visser NCOI Les 6 A P 373

2 2 Lecture 6 Planning and Control 14 Enterprise Resource Planning (ERP) P 435

3 Increasing impact on the whole supply network 3 The development of ERP Manufacturing Resource Planning (MRPII) Web-integrated Enterprise Resource Planning (Collaborative Commerce, c-commerce) Enterprise Resource Planning (ERP) Material Requirements Planning (MRP) Increasing integration of information systems P 441

4 4 Material requirements planning (MRP-1) Customer orders Master production schedule Forecast demand Bill of materials Material requirements planning Inventory records Purchase orders Materials plans Works orders P 446

5 Demand 5 Total future demand is made up of known and forecast demand Total demand Forecast element of demand Known orders Time in future

6 6 Master production schedule (MPS) Forecast demand Sister plant demand R & D demand Promotion requirements etc. Known orders Master production schedule Key capacity constraints Spares demand Safety stock requirements Inventory levels P 441

7 7 To Distribution company Distribution planning MRP II system Accounts and invoicing system To Customers To Suppliers Purchasing system Common database Order validation EDI orders from customers From Customers Plant and Facilities Management Recipe Management System (RMS) Sales and Marketing system To Customers ERP structure for the sandwich company P 452

8 8 Product structure for a simple board game Level 0 Board game Level Box lid Level 2 Box base assembly Quest cards Character set Dice TV label Game board Rules Box base Inner tray TV label Why do we use a Level code? P 458

9 9 Lecture 6 Planning and Control 15 Lean synchronization

10 10 The key principle of lean operations is relatively straightforward to understand: it means moving towards the elimination of all waste in order to develop an operation that is faster and more dependable, produces higher quality products and services and, above all, operates at low cost.

11 11 Synonyms continuous flow manufacture high value-added manufacture stockless production low-inventory production fast-throughput manufacturing lean manufacturing Toyota production system short cycle time manufacturing Source: Corbis/Denis Balihouse

12 12 JIT material flow Traditional approach stage A buffer inventory stage B buffer inventory stage C JIT approach orders orders stage A stage B stage C deliveries deliveries P 466

13 13 The problem with inventory productivity problems Scrap Downtime WIP Defective materials Rework Reduce the level of inventory (water) to reveal the operations problems productivity problems Scrap Downtime WIP Defective materials Rework P 468 (zie film HP)

14 14 Traditional approach more production at each stage JIT and capacity utilization focus on high capacity utilization more stoppages because of problems high inventory means less chance of problems being exposed and solved extra production goes into inventory because of continuing stoppages at stages JIT approach lower capacity utilization, but focus on producing only when needed no surplus production goes into inventory fewer stoppages low inventory so problems are exposed and solved P 469

15 15 Waste (muda) Activities: operation movement inspection delay storage Which of these symbols signify non-valueadding activities? Types of waste: over-production waiting time transport process inventory motion defective goods influencing the throughput efficiency P 472

16 16 Value stream map for an industrial air-conditioning installation service T/T = Task time TTT = Total throughput time V-A T = Value-added time C/T = Cycle time Sales office Forecasts Operations planning Invoice status Cash management Job tracking confirmations Completion confirmation Survey Order Assemble Frame Install T/T = 0.5 Avail = 100% C/T = mins Wait in branch 58 hrs T/T = 0.5 Avail = 100% C/T = mins Wait for assembly 96 hrs T/T = 5.0 Avail = 100% C/T = hrs Ship to branch and wait 48 hrs T/T = 0.75 Avail = 100% C/T = mins Wait for installers 48 hrs T/T = 0.75 Avail = 100% C/T = mins TTT = 258 hrs V-A T = 8 hrs P 474

17 17 Small machines easy to move (layout) quick set-up flexible scheduling options cheaper tooling planned maintenance easier fewer set-ups needed Using several small machines rather than one large one allows simultaneous processing, is more robust and is more flexible P 476

18 18 The 5 S s test 5S 1. Sort (Seiri) Eliminate what is not needed and keep what is needed. 2. Straighten (Seiton) Position things in such a way that they can be easily reached whenever they are needed. 3. Shine (Seiso) Keep things clean and tidy; no refuse or dirt in the work area. 4. Standardize (Seiketsu) Maintain cleanliness and order perpetual neatness. 5. Sustain (Shitsuke) Develop a commitment and pride in keeping to standards. P 484

19 19 Delivering smaller quantities more often can reduce inventory levels Inventory level Inventory level P 483

20 20 JIT and MRP - control MRP Control simplified bill of materials master production schedule materials requirement planning orders management system factory assembly schedule purchasing Kanban control vendors goods in cell 1 cell 2 cell 3 final assembly

21 21 JIT, MRP, or both? complex structures PERT JIT and/or MRP MRP simple structures JIT simple routings complex routings P 484

22 22 Conceptual diagram of the kanban system

23 23

24 24

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