17.12.

2008

Computer aided
production
planning and
control
(Lecture #11)

Computer
Computer--aided production planning
& control
l Production planning & control
l MRP and MRP II
l Just in time principles
l The Kanban system

17.12.2008

Computer
Computer--aided production planning
& control
The scope of production planning and
control within a company is to plan
manufacturing process for control
v
the flow of materials
v
tools
work in production (WIP)
v

Computer
Computer--aided production planning
& control
Computer-aided production planning &
Computercontrol (CAPP&C) systems rely on the
data generated by all other areas of
CAE.
CAPP&C can be seen as being dominant in
the structure of a CIM environment.

17.12.2008

Production Planning
It involves a number of activities related
to
the preperation of the manufacturing
the modification of the manufacturing
the master production schedule

Production Planning
It includes a number of activities such as
v
v
v

selecting the most appropriate

process
process planning
factory layout

17.12.2008

Production Planning
Weekly Planning: The initial planning was
re--structured to accommodate both the
re
existing delays as well as the shortened
schedule. Weekly plans were developed
based on the new work plan.
These weekly plans, however, were
designed considering the possible
future change orders and engineering
delays.

Production Planning
Daily Planning: Based on the weekly
planning, a daily planning was developed.
This considered all the field problems
and delays, in order to adjust the next
day planning.
Changes were so frequent during the
project, that it was impossible to think
that planning could be developed even
for a few days, without a major change.

17.12.2008

Production Planning
Work Orders/Information Retrieval: The
daily planning was transformed into daily
work orders. This order included the
responsible foremen, the location of the
work to be realized, the crew leader ,
the equipment required, the volume of
work and, the time at which the work
shall be started an finished.

Production Planning
Initial planning

Weekly planning
Productivity
measurement

Work
orders
Information
retrieval

Productiviy
Improvement
Team

PW,CW,NCW
Optimum crews
Optimum procedure
Productivity
Velocity

Daily planning
Field engineer

Foreman
Production report

Feedback

Summary reports

Information analysis

Management

17.12.2008

Master Production Schedule

sets out an aggregate plan for
production.
is the statement of its expected
production output over the long
term.
term.

Master Production Schedule

is effectively the plan that the company
has developed for production, staffing,
inventory, etc.
has as input a variety of data, e.g.
(forecast demand, production costs, inventory costs,
etc and as output a production plan detailing amounts
to be produced, staffing levels, etc for each of a
number of time periods.)

17.12.2008

Master Production Schedule

This production plan:
operates at an aggregate level (that is it
does not usually go into great detail
about parts to be used, etc - hence the
name aggregate planning); and
is cost driven, that is it attempts to
meet the specified requirements at
minimum cost.

Master Production Schedule

The diagram below illustrates the situation and the
types of factor.
Hire
Manhours
(regular/overtime

People

Fine

Shifts

Cost

Revenue

Production

Subconstractors

Inventory

Demand

17.12.2008

Master Production Schedule

This is the most general of the options allowed by the
package. LP stands for linear programming and is a
generalised way of modelling decision problems.

Process planning
Planning the processes for a particular
component / assembly is vital to the costcosteffectiveness of a product in the
marketplace.
Manual process planning involves generating a
set of instructions to the manufacturing
plant for the production of a component / an
effective order for assembly.

17.12.2008

Process planning
Computer
Computer--aided process planning tools fully
utilize the computers data storage and
retrieval capabilities to manage a database
of this information.
More complex CAPP packages are known as
generative type systems.

Scheduling
An important aspect of planning the effecient
manufacture of components and products
within the factory is that they are
scheduled.
v Shortest processing time (SPT)
v Earliest due data (EDD)
v Moores algorithm
v Johnsons algorithm

17.12.2008

Production Control
Production control does not only have to ensure
the correct implementation of production
planning but must also provide the means to
dynamically change the planning to suit such
fluctuations.
In a computer
computer--aided system, the correct and
timely delivery of materials can be carried
out by automated materials handling devices.

Materials Requirements Planning

It is a more a statement of how the
company wishes or even needs to affect
the market rather than how the market
is actually performed.
The master production schedule is set up
by the materials requirements planning
(MRP) system.

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17.12.2008

Materials Requirements Planning

Materials requirements planning, referred
to by the initials MRP, is a technique
which assists a company in the detailed
planning of its production.
MRP was developed in the 1960s in the US
to provide a computerized means of
controlling the availability of materials
for production.

MRP Operation
The operation of a materials requirements
planning system is key to that of a CIM
system as it utilitize data from a wide
range of the CAE facilities within a
company.

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17.12.2008

Materials Requirements Planning

Conceptually therefore two related decisions
about ordering are :
timing - when to order
quantity - how much to order
With respect to the timing decision as late as
possible, but never planned a stockout. This is
a driving principle in MRP,
Never order before you need to,
never plan to stockout.

Materials Requirements Planning

Customer

Customer order

Purchase
Order

Received
Purchase Order

Received Order

MRP
PROCESS

Inventory

Supplier

Purchase order

Check-status
Inventory

Result MRPprocess

Management

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17.12.2008

Materials Requirements Planning

This quantity decision rule can be varied in MRP
and some other rules are:
Fixed order quantity rule (sometimes called
FOQ or FO)
FO) - the quantity ordered is an
integer multiple of the same fixed amount
each time an order is made
Fixed period requirements rule (sometimes
called FPR)
FPR) - the quantity ordered should be
enough for a fixed number of periods

MRP Operation
Multi
Multi--layer hierarchical description of MRP activity.
Customer orders

Plan and forecast

Long-term production
requirements

Medium-term: plan
production for
infinite capacity

Short-term: plan and

investigare individual
batch

Real-time
system control

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17.12.2008

MRP Operation
Medium
Medium--term planning :
The actual requirements for raw
materials, component manufacture and
boughtbought-in component acquisition can
take place.

MRP Operation
Short-term planning :
ShortGenerates shopfloor scheduling on a
week
week--by
by--week or even a day
day--by
by--day
basis, considering single batches of
components/assemblies.

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17.12.2008

MRP Operation
Real-time control :
RealOf the manufacturing activities takes
place. It is carried out by the machinery
and personnel on the shopfloor but the
vital link to the MRP system.

MRP System Structure

MRP software is essentially a database
management system. The database at
the heart of an MRP system is held in
text form.
The database management system for
MRP presents the user with a series of
functions for accessing, distributing and
manipulating that data.

15

17.12.2008

MRP System Structure

A database can be defined as a collection of
one or more data files relating to a particular
application and the database management
system is the software used to access and
manipulate that data.
File
Record 1

Record 2

Record 3

Fields 1 2 3 4 5 6 7

MRP System Structure

The database controlled and managed by
an MRP system consists of many files
including part master file
file,, the billbill-of
of-materials and other data files such as
the vendor file.
file.

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17.12.2008

MRP overview
In MRP two types of information are
required:
Structural information
Tactical information

MRP overview
Structural information is information
about the items (parts/components)
that the company uses and how
different items are related to one
another. It includes information for
each item such as lead time and lot (or
batch) size rule.
The key point about this information is
that it changes relatively infrequently.

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17.12.2008

MRP overview
The structural information required in
MRP relates to:
item information; and
bill of materials.

Bill of materials
In order to show the make
make--up (in terms of the
parts needed for production) we have a Bill of
Materials (BOM) for the endend-product (namely
the chair).
Chair

Seat (1)

Back (1)

Legs (4)

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17.12.2008

Bill of materials
The BOM is best
thought of as being
divided into levels,
with the final item
(the chair) being at
the top level and the
items needed to
make up a chair
being at the second
level.

MRP overview
Tactical information is information about
the current state of the company - for
example sales orders (real and forecast)
pending, the master production
schedule, onon-hand inventory levels and
purchase orders.
Obviously the key point about this
information is that it changes
frequently.

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17.12.2008

MRP overview
The tactical information required in MRP
relates to:
out--going inventory (sales) and planned
out
production (master production
schedule); and
on--hand inventory and inon
in-coming
inventory (purchases).

MRP overview
The screen below is the initial screen to
set up number of items, time units etc.

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17.12.2008

MRP overview
An important point to note is that MRP is
not cost driven i.e. it does not seek to
minimise cost.
Instead MRP is stockout driven - that is
it will always order sufficient to avoid
stockouts (using the lot size rule for
each item) and order as late as possible.

MRP - Sensitivity
It is often important to conduct sensitivity
(what(what-if) analysis in MRP. Considering the
example above, for instance, the only actions
we need to take now relate to the orders
suggested for the current period.
All other actions relate to orders that we may
(or may not) place at future points in time.

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17.12.2008

Materials Requirements Planning

Products

Production
planning

Bill of
materials

Material
explosion

Suppliers

Order
Recommendations

Purchase
Ordering

Allocations
Management
Reports

Raw Materials
Control

Stock Take
Routines

Issues & Returns

Receipts

Purchase
orders

GRNs
Production
control

Manufacturing Resources Planning

MRP II is (essentially) MRP but with more
added. It may also include capacity
requirements planning (essentially try
and automatically include capacity
restrictions in the planning process).
By the 1970s, the system had developed
into manufacturing resource planning
(MRP II).

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17.12.2008

Manufacturing Resources Planning

In order to generate the net material
requirement plan, the software had to
access the inventory control file
file.. The
inventory control part of the software
enables the file to be kept up.
The inventory of boughtbought-in parts is
serviced by and also provides
information for purchasing control.
control.

Manufacturing Resources Planning

To confuse things MRP II stands for
manufacturing resources planning,
signifying that we are concentrating
upon the planning of the manufacturing
resources (e.g. people, machines,
storage),
storage), rather than limiting ourselves
to the planning of the materials
requirements.

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17.12.2008

Enterprise Resource Planning

ERP is basically huge databases of information
coupled with business rules
rules,, logic and
constraints that allow users to interact
interact..
The scope of these systems encompass the
entire company
company..
Example functionality includes accounting
accounting,,
production
production,, inventory,
inventory, and customer
management
management..

Enterprise Resource Planning

ERP systems are the highest level systems in a
company that allow a customer to enter an
order, track that order, build the order, ship
the order to the customer, and then receive
payment for the order.
Typical ERP data would include product lists,
inventory, customer lists, customer orders,
invoices, purchase orders, etc. Typical ERP
rules would be "check customer credit before
sending order to MRP".

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17.12.2008

JustJust-inin-time

JustJust-in
in--Time
JustJust-in
in--time (JIT) is easy to grasp conceptually,
everything happens just
just--in
in--time.
For example consider the journey to work this
morning, We could have left my house, just
just--in
in-time to catch a bus to the train station, just
just--in
in-time to catch the train, just
just--in
in--time to arrive at
my office, just
just--in
in--time to pick up my lecture
notes, just
just--in
in--time to walk into this lecture
theatre to start the lecture.
Conceptually there is no problem about this,
however achieving it in practice is likely to be
difficult!

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17.12.2008

JustJust-in
in--Time
So too in a manufacturing operation component
parts could conceptually arrive justjust-inin-time to
be picked up by a worker and used.
So we would at a stroke eliminate any inventory
of parts, they would simply arrive just
just--inin-time!
Similarly we could produce finished goods just
just-in--time to be handed to a customer who wants
in
them.
So, at a conceptual extreme, JIT has no need for
inventory or stock, either of raw materials or
work in progress or finished goods.

JustJust-in
in--Time History
JIT originated in Japan. Its introduction as a
recognised technique/philosophy/way of
working is generally associated with the
Toyota motor company, JIT being initially
known as the "Toyota Production System
System".
".
Note the emphasis here - JIT is very much a
mindset/way of looking at a production system
that is distinctly different from what
(traditionally) had been done previous to its
conception.

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17.12.2008

JustJust-in
in--Time
Just
Just--inin-time and MRP are two different
systems for controlling production. It is
often said that:
MRP = a 'Push' system
JIT = a 'Pull' system
Really this is an incorrect analysis - MRP is a
system based on fulfilling predicted usage
in a set time period.

JustJust-in
in--Time
JIT is a system based on actual usage parts of the production system are
"linked" together via the use of Kanban's
as the system runs.
It is this linkage that is the distinguishing
difference between MRP and JIT - JIT is
a dynamic linked system, MRP is not. This
implies that JIT can be used when lead
times are short, MRP is more appropriate
when lead times are long.

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17.12.2008

Japanese View of Productivity

Reduce cost by eliminating waste any
element of production that does not add
value to the final product
Waste is found in:
v Overproduction
v Inventory
v Conveyance
v Defects & correction
v Waiting
v Processing

Just in Time
Produce only the
necessary parts/
products, in the
necessary quantity,
at the necessary
time.

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17.12.2008

J-I-T Objectives
Reduce cost by eliminating waste
Make it easier to achieve & assure quality
Attempt to create work sites that
respond quickly to change
Organize work sites to emphasize human
resource

Japanese terms
There are a number of Japanese terms associated with
JIT that you may encounter. I have listed some below
for you:
Andon - trouble lights which immediately signal to the
production line that there is a problem to be resolved
Jikoda - autonomation - enabling machines to be
autonomous and able to automatically detect defects
Muda - waste
Mura - unevenness
Muri - excess
Poka--yoke - "foolproof" machines and methods so as to
Poka
prevent production mistakes
Shojinka - a workforce flexible enough to cope with
changes in production and using different machines
Soikufu - thinking creatively, having inventive ideas

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17.12.2008

JIT Approach
Integrated (systems)
approach to production
Efficiently use
resources (facilities;
materials; labor)
Eliminate waste
(muda), uneveness
(mura), and overburden
(muri) 3 ms
Inventory

The Aims of JustJust-in

in--time
The principles is envisaged in Waldner refer to
as the five zeros attitude namely,
Zero stock
Zero lead time
Zero defects
Zero breakdowns
Zero paperwork

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17.12.2008

JustJust-in
in--time
JIT is a suitable production system when:
have steady production of clearly defined
standard products
a reasonable number of units made
a high value product
have flexible working practices and a
disciplined workforce
short setup times on machines
quality can be assured, e.g. zero defects
either though good working practices or
though a cost penalty

"Just"Just-in
in--time" and its Logistic
This new notion amplifies the role of
transport merchandise particularly in
trucking.
It involves the delivery of a component of
assemblage a few minutes before the
assembly line requires it.

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17.12.2008

"Just"Just-in
in--time" and its Logistic
Consequences: transporters must respect
tighter delivery schedules and must plan
their operations accordingly in order to
avoid strict penalties.
The unit of production (the factory) no
longer has to assume a storage service.
Some analysts have pointed out that the
trucks (vehicles) themselves have
assumed the task of ambulatory storage
units, thus increasing road traffic
congestion.

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17.12.2008

JustJust-In
In--Time
Just
Just--InIn-Time Programming has provided with
much needed acceleration in operations in five
vital areas:
Generating toolpaths fast enough for highhighspeed machining.
Handling lastlast-minute engineering changes.
Training new machinists to be programmers as
well.
Reduced electrical discharge machining.
Handling larger toolpath program files up to
80 MB.

JustJust-In
In--Time
The relationship between high
high--speed
machining and at
at--the
the--machine
programming is crucial.
HighHigh-speed machining chews through
toolpaths so quickly that at
at--the
the-machine programming is almost a
requirement.

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17.12.2008

JustJust-In
In--Time
"In programming, we are never more than
half a shift or one shift ahead of the
machine tool," said Joseph Geerts,
"The old way of overnight batch
programming for toolpaths is long gone."

Elements of JustJust-In
In--Time
regular meetings of the workforce (e.g.
daily/weekly)
discuss work practices, confront and solve
problems
an emphasis on consultation and cooperation (i.e.
involving the workforce) rather than confrontation
modify machinery, e.g. to reduce setup time
reduce buffer stock
expose problems, rather than have them covered
up
reveal bad practices
take away the "security blanket" of stock

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17.12.2008

Benefits of JIT
Increased productivity
Better quality
Reduced lead time
Less scrap & rework (less resources)
Less work in process (WIP)
Higher worker motivation & more
teamwork

Benefits of JIT (contd)

Saved space
Increased worker & equipment
efficiency
Benefits across functional boundaries
(e.g., manufacturing; manufacturing
engineering; purchasing; sales &
marketing; accounting; quality control;
assembly)

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17.12.2008

Benefits of JIT
Finally ,
Easy to talk about, difficult to
implement
Problems solved at root cause level
Doesnt allow for labor or equipment
disruption
Doesnt consider market forecasting
procedures
Benefits outweigh challenges

WIP
The whole stock or inventory for a JIT
company is in the work in progress
(WIP).
The principle of zero stock must also be
reflected in how much of this there is.
The amount of WIP can be reduced by
the shortening of inter
inter--operational
transportation times.

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17.12.2008

JIT
Value added, Kaizen, Six sigma, Quality at the
Source, Problem Solving Tools, Planning Tools
Empowerment
Management support
Training
Quality circles
Work teams
Job rotation
Job enlargement
Job enrichment
Profit sharing

TQM
PI

JIT
Manufacturing
Techniques

Kanban
Poka Yoke
Pull
VHI
TPM
SMED
5S
Jidoka
Group Technology

manufacuting cell

Kanban
The Japanese world kanban means card or
sign and it is by the use of cards or
kanbans that continuous flow of
production within this type of JIT
system is regulated.

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17.12.2008

Kanban
In order to have a method of controlling
production (the flow of items) in this new
environment Toyota introduced the
kanban
kanban..
The kanban is essentially information as to
what has to be done. Within Toyota the
most common form of kanban was a
rectangular piece of paper within a
transparent vinyl envelope.

Kanban
In Toyota two types of kanban are
distinguished for controlling the flow of
items::
items
a withdrawal kanban - which details the
items which should be withdrawn from
the preceding step in the process
a production ordering kanban - which
details the items to be produced

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17.12.2008

Kanban Types
Withdrawl kanban
pass authorizes movement of parts
from one work center to another;
stays with parts until parts
consumed, then returns for part
replenishment.

Kanban Types
Production kanban
kanban
release order to preceding process
to build specified number of parts.

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17.12.2008

Withdrawl Kanban
Part Number
Container capacity
(number of parts)

Raw materials and other

part types used in
manufacturing at the
work center

Preceding work center number

Stock location number

Production Kanban
Part number

Container capacity
(number of parts)
Number of kanbans
released

Subsequent work
center number
Stock location
number
Proceding work
center number
Stock location number

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17.12.2008

Rules for Kanban

No withdrawal of parts without a
kanban
Subsequent process comes to withdraw
only what is needed
Do not send defective parts to
subsequent process
Preceding process should produce only
exact quantity of parts withdrawn by
subsequent process

Rules for Kanban (contd)

Smoothing (minimize fluctuations) of
production
Fine tuning of production using kanban
Stop process if production
requirements decrease
Use overtime & improvements in
processes if production requirements
increase

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17.12.2008

Kanban
a signal or message or communication,
e.g. wave hands, shout, send a card,
electronic
used to control the flow of items
though the production process

Other Important Concepts

Jidoka warning system to indicate
production problems (minor to serious)
Autonomation
Autonomation
manual or automatic
stopping of production if defective part
is produced
Mixed production make all models at
same time on same line
Work improvement ideas of workers
improve production

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17.12.2008

Concepts (contd)
Multi
Multi--work assignment workers
shifted to other jobs as needed
Fool--proof methods various
Fool
techniques that prevent mismis-assembly
or other defect causing actions
Total quality control no defective part
is passed on to next process/operation

Computer aided project planning &

control
Questions :
1. What is the JIT approach to quality?
2. Show how Kanban is used to control work flow in
repetitive manufacturing environments.
3. How does the JIT approach to manufacturing
deal with the relationship between product and
process variety?
4. List the five zeros aimed for in a JIT system
and explain by what methods their achievement
is attempted.

43