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1 TPPE37 Manufacturing Control Agenda Lecture 1 Introduction 1. A brief introduction to Ou Tang 2. Overview of the course 3. Administrative issues 4. MPC definition 5. MPC systems Ou Tang 1 Ou Tang 2 Ou Tang My teaching experience Universitetslektor, Docent, Tekn. dr. Tel: ou.tang@ipe.liu.se Homepage: Office: Hus A 2B:956, Campus Valla, Linköping TPPE24 Economic Analysis: Decision and Financial Methodology TPPE37 Manufacturing Control TPPE54 Advanced Planning and Scheduling TPPE97 Supply chain planning and simulation TPMM05 Manufacturing planning and control systems TPMM06 Analysis and Improving Manufacturing Operations Also short courses in Germany, Italy, Japan, and China Ou Tang 3 Ou Tang 4
2 My research interests Experience in industry 1. Modelling and management of production/inventory systems 2. Management of manufacturing planning and control systems 3. Logistics, reverse logistics 4. Global supply chain / Risk management Projects with companies such as Volvo, IKEA, Hewlett-Packard, GE, Ericsson, Electrolux, Faurecia, etc Ou Tang 5 Ou Tang 6 Objective of the course Literature After this course you should be be able to to distinguish characteristics in in different production systems understand planning and control techniques at at different hierarchical levels use basic models in in material and capacity planning identify planning and control problems in in industrial practice Vollmann T. E., Berry W. L., Whybark D. C. and Jacobs, F. R., Manufacturing Planning and Control for Supply Chain Management, 5th ed., McGraw-Hill, 2005 Other Handouts during the lectures Ou Tang 7 Ou Tang 8
3 Course presentation Production - a transformation process Organisation Lectures 20 hrs Seminars hrs Laboratory 4 hrs (compulsory) Project Examination An oral examination, 2 points Project report in a selected topic/company, 2 points Participation in all laboratory sessions Course Webpage Ou Tang 9 Input Labor capital Nature resource Construction Machine Material Energy Transformation Operations Information Output goods services Ou Tang 10 Tranformation process with a network of activities Value-Added Information Process management Information The difference between the cost of inputs and the value or price of outputs. Input Transformation Operation Output Input Flow A Flow B Goods Services Labor capital Nature resource Construction Machine Material Energy Transformation Operations Output goods services Resources Capital, labor Information Ou Tang 11 Ou Tang 12
4 Production of bread A typical supply chain Stage of Production Farmer produces and harvests wheat Value Added $0.15 Value of Product $0.15 Primary information flow Wheat transported to mill $0.08 $0.23 Mill produces flour $0.15 $0.38 Flour transported to baker $0.08 $0.46 Baker produces bread Bread transported to grocery store Grocery store displays and sells bread Total Value-Added $0.54 $0.08 $0.21 $1.29 $1.00 $1.08 $1.29 Raw material supplier Primary material flow Manufacturer End-product manufacturer Distributor Retailer Ou Tang 13 Ou Tang 14 More or less known aliases Product attributes Manufacturing Chain Value Chain Marketing Channel Distribution Network Supply Network Supply Chain Logistics chain Product cost the total cost for a customer Product delivery time the total waiting time for a customer to get the product Product variety the range of choices offered to a customer Product quality degree of excellence, what and how well the product performs Ou Tang 15 Ou Tang 16
5 Process attributes Strategic business process Process cost the total cost in producing and delivering outputs Process flow time the total time to transform from input to output Process flexibility the ability of the process to produce and deliver desired product variety Process quality the ability of the process to produce and deliver quality products Market (Potential customer) needs Identify and create demand specified products and customer delivery request Develop products and processes with specific Needs Delivery of products and services - Specified products safisfaction Ou Tang 17 Ou Tang 18 Enterprise MPC systems The objective of of the the enterprise is isto to give the the customer most possible value (utility) at at the the lowest possible total cost (consumption of of resources) Focus of oftppe37: Process view of ofmaterial flows, but focus on on what traditionally is is covered by bymanufacturing planning and control (the function Manufacturing) Definition: A collection of of principles and methods for forcontrolling material and production, which are are consistent with the the companies objective: Making money Realisation of ofmpc-system often involves computer support, but it it is is not a precondition Ou Tang 19 Ou Tang 20
6 Production process The Planning Hierarchy/ MPCs Production is a transformation process Input resources Control Production Process Output resources How to control (evaluate) the production process? Costs Production Process Revenues Ou Tang 21 Decision level Horizon Period Decision aspects Sales and operations planning (S&OP) Master production scheduling (MPS) Requirements planning (MRP) material och capacityt Production activity control (PAC) 1-5 years month Aggregrated (product family) Planning strategy (level/chase/mix) Aggregrated capacity 1 year Week Products, delivery objectives Product mix Capacity planning Determine delivery schedule order point (MTS/ATO/MTO) 2-6 months Week / day Specific units Specific resources (work center..) Product structure complexity Flow complexity < 1 month Day/ hour Specific unit (operation) Specific resources (work center) Decentral control i cells Evaluation Ou Tang 22 The Planning Hierarchy/ MPCs Matching process choice with strategy Master planning Demand management Final assembly schedule Sales and operations planning Production planning Master prod. schedule Resource planning Master (production) scheduling Rough-cut capacity plan Front end Process Flexibility High Jumbled Flow. Process segments loosely linked. Disconnected Line Flow/Jumbled Flow but a dominant flow exists. Opportunity Costs BATCH (Heavy Equipment, Auto Repari) JOB SHOP (Commercial Printer, Architecture firm) Feedback Vendor systems Material planning Shop floor systems Detailed capacity planning Engine Ou Tang 23 Back end Connected Line Flow (assembly line) Continuous, automated, rigid line flow. Process segments tightly linked. Low CONTINUOUS FLOW (Oil Refinery) Low High Standardization Commodity Products LINE FLOWS (Auto Assembly, Car lubrication shop) Few Major Products Many Products Out-of-pocket Costs Low Standardization One of a kind Low Volume Product Variety High volume Ou Tang 24 High
7 Process classification from MPC-perspective Why use a computer for MPC? One-time manufacturing Project Jobbing Batch manufacturing Intermittent flow flow Flow manufacturing Line Line Continuous process Ou Tang 25 Perform comprehensive computing, e.g. e.g. Product costing Requirement calculations Perform formal routines, e.g. e.g. Monitoring of oforder points Generate printouts of of shop-floor documents Generate new new decision support Where-used analysis (implosion) Simulation of of load loadand andcosting Results in in a review and andstructuring of ofe.g. Item, Item, BOM and androuting data data Work centers and andtooling Ou Tang 26 The development of computer based MPC Information flow for computer based MPC 1960 Inventory control models 1970 The COPICS concept MRP Crusade (APICS) MRP-systems Mini computer Distribution req. planning (DRP) 1980 MPC on micro computers The OPT system MPC for MTO companies MRP II MPC for JIT 1990 CIM - Factory of the future Operativ simulation Integr. production/material control 1995 Supply chain, ERP 2000 Closed loop supply chain Ou Tang 27 Ou Tang 28
8 Modularised MPC system Goods and service S&OP Purchasing RCCP Steel production Automobile fabrication Home remodeling Retail sales Auto Repair Appliance repair Maid Service Manual car wash Teaching Lawn mowing Costing Item master file Bill of material file Routing file Work center file Tool file CRP CRP High percentage goods Low percentage service Low percentage goods High percentage service Order entry entry PAC PAC MRP Ou Tang 29 Ou Tang 30 Trends in Business The Structure of a RFID system Major trends The Internet, e-commerce, e-business Management technology Globalization Management of supply chains Agility Ou Tang 31 Ou Tang 32
9 A RFID-enabled supply chain information system Supply Chain Partners Visibility of products in supply chains RFID connected with enterprise systems RFID Middleware Enterprise Applications PML ONS Internet Web Web services Global Registry Reader RFID tag (ONS Object Name Service for locating information of a product through the Internet; PML Physical Markup Language as a standard format for presenting product data; RFID Middleware Interfacing a RFID system with the enterprise data sources) Ou Tang 33 Ou Tang 34
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