LOGISTIQUE ET PRODUCTION SUPPLY CHAIN & OPERATIONS MANAGEMENT
CURSUS CONTENTS 1) Introduction 2) Human resources functions 3) A new factory 4) Products 5) Services management 6) The processes 7) Planning the production 8) Mass production 9) Project management
CURSUS CONTENTS 10) Make to order production 11) Production management philosophie 12) Maintenance 13) Quality management 14) Procurement 15) Transport
NB : Production management philosophies - Taylor Scientific Organisation of Operations - Work enrichment - Material Requirement or Resources Planning (MRP I & 2) - Optimized Production Technology (OPT) - Just In Time (JIT) - Total Quality Management (TQM) - World Class Manufacturing (WCM) These philosophies are management layers more than competiting each others. These are evolutions not revolutions.
Taylor and Ford - Beginning of the 20th Century (Needs > Production) Standard Product, few competition, non-qualified workers (up-down) Simple and standard tasks on standard products Line production Wages linked to production (Time measurement) «Scientific» is used to increase productivity, but remember that in a system Max (i) and < Max (i). Film Charlie Chaplin Modern Times and even in URSS Stakanov Big companies with a lot of separated departements
From Taylor to Work Enrichment - Competition appears Capacity > Needs - New Technologies (Automatization) - New customer s requirements (quality, flexibility, costs) - Workers with upper education and new needs - Social and economic changes Groups organize in autonom units around similar technologies or a range of products. People are taken into account (people involvement, new management, small hierarchy) New relationship with the furnishers and customers
Material Requirement Planning MRP I Thanks to their calculation capacity, computers allow optimisation of process. So the company is now manage by an algorithm allowing to optimize production (time, economic lot or batch). The calculation process requires : -The forecasts and confirmed orders (How much - When) IN - The stocks situation - The bill of material (BOM) and production lead times => (MRP I) 1st generation, only for Material Requirement How many components or raw material? When? Purchase Orders and scheduling Gross Need + Safety Stock Stock available = Net Need
Material Resources Planning MRP II - The resources capacity (machines, men) - The routes (detailled operations) => (MRP II) 2nd generation Materiel Resources Planning => Material and Resources scheduling Purchase and Work Orders => How much? When? Who?
Material Resources Planning MRP II The computing system requires severals modules: - Master production schedule (Plan directeur de production) - Need calculation - Stock or Inventory management (Items and BOM) -MRP - Work centers - Workshop management
Material Resources Planning MRP II Modules are linked as follows Production forecast Master production schedule Need calculation Material scheduling If problem Capacity scheduling NO Capacity Yes Purchase order scheduling execution Capacity scheduling execution If problem
Example Production Forecasts 4 products A, B, C, D requiring 2, 4, 1 and 5 units of capacity. Production forecasts January February March 838 1024 925 Forecasts by product during March Week 1 Week 2 Week 3 Week 4 A 25 30 40 15 B 20-10 20 C 140 100 80 60 D 10 5-10 Total 925, taking product capacity requirement. April 955
Example Master Production Schedule For product A, the production planning can be scheduled Week 1 Week 2 Week 3 Week 4 A (1) 25 30 40 15 A (2) 60-60 - A (3) 95 - - 15 + April needs (1) According to the needs week by week (2) According to economic batch (3) According to economic period i.e 3 weeks
Example Need Calculation Based on the BOM, if A is made as follows with 15 cm of X and Y Level 1 2 X A Y 1 Level 2 X Gross (1m) So, we can estimate the gross needs of A, X, X gross and Y
Example Need Calculation Forecasts for a gearbox composed of two crammings are as follows : Week 1 2 3 4 5 6 7 8 9 Gross Need 2 2 2 4 4 6 4 4 4 Stock level : -Available 16 units - Confirmed purchase 20 units for week 3 - Purchase delay 5 weeks - Economic purchase quantity 20 units 10 4 11 4
Example Need Calculation Week 1 2 3 4 5 6 7 8 9 10 11 Gross Needs 4 4 4 8 8 12 8 8 8 8 8 Available (16) 12 8 24 16 8 16 8 0 0 0 0 Purchase Order 20 20 (Launch) Purchase Order 20 (Reception)
Example Inventory Management Material Requirement Inventory management module require the following parameters - Purchase or production item - Stock level for every item - Purchase delay or production lead time for every item - Furnishers availables
Example Purchase order scheduling MRP I If D = dead line of the order T0 delay for transport and packaging T1 lead time to assemble X and y to make A T2 lead time to cut X Gross to get X T3 delau to get X Gross T4 delay to get Y, the scheduling will be as follows T3 T2 T1 T0 M1 M2 T4 M3 M4 Time
Example Capacity Scheduling MRP II The system is optimized with infinite capacity, it means without resources constraints. Data are : - capacity already used - total capacity availlable (holiday, maintenance) - lead time fort each job on each resources NB : Typically the calculation is performed once a week (week- end or by night) and can take a few hours.
Example Execution Level Hazards can modify the system and must be taken into account. So, on line reporting by every resourves for every job is a help to adapt the system to respect the dead line. - Material defects, breakage, unavailability - Resources out of order, diseases, strike - Inventory gap
Optimized Production Technology (OPT) From The Goal Goldratt, Theory of Constraints Method based on «Bottle neck» or Critical and non-critical resources analysis. Aim maximize critical resources working time. 1) The bottle neck capacity is related to the system 2) Usefull activity and utilization are not similar 3) 1 h more or less on the bottle neck is earned or lost for the system 4) 1 h more on a non-critical resources is useless 5) Bottle neck leads the production and the stock level inside 6) Transit batch can not be equal to process batch 7) Batch size can be different and variable on critical and non-critical machines (bigger and smaller respectively) 8) Capacity and priority must be taken into account simultaneously 9) The ain is to balance the flow and not the capacity 10) Sum of individual performances is not equal to the system performance
Just In Time (JIT) Aim : reduce stock and delay in every step of production. Purchase (to reduce stock) Production (reduce set-up time, increase flexibility) Positive points: -Increase of reactivity to customer s needs, increase of the range of products (i.e: cars), shorter delay, increase of people qualification, reduce stock (=> ), increase of productivity, waste reduction Negative points: - Increase transport costs (more trip with less products) WOW, defaults create big damage,
Just In Time (JIT) - KANBAN From Japan, KANBAN means label, tag From Push system (MRP) to Pull system Push : forecasts and confirmed orders lead the system Pull : stocks of finished products and customer lead the system In a production process, as operation X+1 relies on operations X, if we know the relation between both, we can regulate X+1 by making the right numbers of products in operation X to feed X+1. The numbers of operations to do are symbolized by tags called KANBAN. KANBAN can easily work with MRP.
Total Quality Management (TQM) Quality is a competitive advantage. It is not only quality control, but also a process to increase the production efficiency. Efficacity : to succeed to do a performance i.e : 99% Efficiency : to reduce resources to succeed i.e : 20% cheeper World Class Manufacturing (WCM) Composition of JIT, TQM and Work Enrichment Cultural approach, people education and lifelong learning, reegineering, new methods, new technologies. i.e : KAIZEN (Change for the best) down to up