Computer Integrated Manufacturing Systems (CIMS) Prof Rajesh V PatilMODULE NO.2 Production Planning and Control Systems|Course Contents: [Introduction: Introduction to CAD/CAM Automation: Automation in Production/Mamufacturing |Systems, types of automation, Types of Manufacturing, Introduction to CIM, CIM Elements, Evolution| |& Development of CIM, CIM wheel, CIM Hardware & Software, Introduction to CIM Models (IBM, |Siemens, ESPRIT CIM OSA. NIST-AMRF, Digital Equipment Corporation) & Present Scenario. [Production Planning and Control and Process Planning: Process planning and control, Aggregate Production Planning, Master Production Schedule — Material Requirement planning -Capacity| Planning. Shop Floor Control Inventory control, simple numerical, Computer Aided Process Planning| |(CAPP), Generative & Retrieval type Process planning, Benefits of CAPP |Cellular Manufacturing, Flexible Manufacturing System (FMS): Group Technology (GT), Part ‘machine ~ Parts Classification and coding— Cellular eo Families and ‘zroups . Jnumerical. FMS Components, Application & Benefits, Cell. Typical FMS tay simple numerical, Introduction to. sted Guided Vehicle System (AGVS), types of AGVS, AGVS [ApplicationProduction Planning and Control Systems * Production planning and control (PPC) is concerned with the logistics problems that are encountered in manufacturing, that is, managing the details of what and how many products to produce and when, and obtaining the raw materials, parts, and resources to produce those products. + PPC solves these logistics problems by managing information. + Computers are essential for processing the tremendous amounts of data involved to define the products and the means to produce them, and for reconciling these technical details with the desired production schedule. + Ina very real sense, PPC is the integrator in computer-integrated manufacturing.Production Planning and Control Systems * Planning and control in PPC must themselves be integrated functions. * Itis insufficient to plan production if there is no control of the factory resources to achieve the plan. + And it is ineffective to control production if there is no plan with which to compare factory progress. * Both planning and control must be accomplished, and they must be coordinated with each other and with other functions in the manufacturing firm, such as process planning, concurrent engineering, and advanced manufacturing planning + Notwithstanding the integrated nature of PPC, it is appropriate to define what i involved in each function: production planning and production control.Production planning Production planning consists of (1) deciding which products to make, in what quantities, and when they should be completed; (2) scheduling the delivery and/or production of the parts and products; and (3) planning the manpower and equipment resources needed to accomplish the production plan. Activities within the scope of production planning include: + Aggregate production planning. This involves planning the production output levels for major product lines produced by the firm. These plans must be coordinated among various functions in the firm, including product design, production, marketing, and sales. ‘+ Master production planning. The ageregate production plan must be converted into a master production schedule (MPS) which is a specific plan of the quantities to be produced of individual models within each product line. ‘+ Material requirements planning (MRP). MRP is a planning technique, usually implemented by ‘computer, that translates the MPS of end products into a detailed schedule for the raw materials and parts used in those end products. + Capacity planning. This is concerned with determining the labour and equipment resources needed to achieve the master schedule.Production planning... + Production planning activities divide into two stages: + (1) aggregate planning, which results in the MPS, and * (2) detailed planning, which includes MRP and capacity planning. + Aggregate planning involves planning six months or more into the future, whereas detailed planning is concerned with the shorter term (weeks to months). * Production control consists of determining whether the necessary resources to implement the production plan have been provided, and if not, attempting to take corrective action to address the deficiencies. * As its name suggests, production control includes various systems and techniques for controlling production and inventory in the factory.Operaticas Figure 25.1 Activities in a production planning and control system (shaded in the diagram) and their relationships with other fimetions in the firm and outside.Aggregate Production Planning and the Master Production Schedule Ageregate planning is a high-level corporate planning activity. The aggregate production plan indicates production output levels for the major product lines of the company. The aggregate plan must be coordinated with the plans of the sales and marketing departments. Because the aggregate production plan includes products that are currently in production, it must also consider the present and future inventory levels of those products and their component parts. Because new products currently being developed will also be included in the aggregate plan, the marketing plans and promotions for current products and new products must be reconciled against the total capacity resources available to the company.Aggregate Production Planning and the Master Production Schedule * The production quantities of the major product lines listed in the aggregate plan must be converted into a very specific schedule of individual products, known as the master production schedule (MPS), or master schedule for short. + Itis alist of the products to be manufactured , when they should be completed and delivered, and in what quantities. + A hypothetical MPS for a narrow product set is presented in Figure 25.2(b), showing how it is derived from the corresponding aggregate plan in Figure 25.2(a). The master schedule must be based on an accurate estimate of demand and a realistic assessmentWeek Product line 1[2[3[4[s[e6[7][s][ 9] M model line 200 | 200 | 200 | 150 | 150 | 120 | 120 | 100 | 100 | 100 N model line 80 | | 50 | 40 | 30 | 20 | 10 P model line 70 | 130 [25 [100 (a) Aggregate production plan Week Productlinemodels | 1 [2 [3 |4]5]6]7]8]9 | 10 ‘Model M3 120 [ 120 | 120 [100 | 100 [80 | 80 | 70 | 70 | 70 ‘Model M4 x0 | 80 | 80 | 50 | 50 | 40 | 40 | 30 | 30 | 30 ‘Model NS 80 | 0 | 50 [40 | 30 | 20 | 10 ‘Model PI 50 100 Model P2 70 | 80 | 25 () Master production schedule Figure 25.2 (a) Aggregate production plan and (b) corresponding master production schedule for a hypothetical product line.Aggregate Production Planning and the Master Production Schedule Products Included in the MPS divide into three categories: (1) firm customer orders, (2) forecasted demand, and (3) spare parts. Proportions in each’ category vary for differen ‘companies, and in some cases one or more categories are omitted. Companies producing assembled products will generally have to handle all three types. In the case of customer orders for specific products, the company is usually obligated to deliver the item by a particular date that has been promised by the sales department, In the second category, production output quantities are based on statistical forecasting techniques applied to previous demand patterns, estimates by the sales staff, and other sources. For many companies, forecasted demand constitutes the largest portion of the masterschedule. The third category consists of repair parts that either will be stocked in the company’s service department or sent directly to the customer. ‘Some companies exclude this third category from the master schedule since it does not represent end products.Aggregate Production Planning and the Master Production Schedule The MPS is generally considered to be a medium-range plan since it must take into account the lead times to order raw materials and components, produce parts in the factory, and then assemble the end products. Depending on the product, the lead times can range from several weeks to many months; in some cases, more than a year. The MPS is usually considered to be fixed in the near term. This means that changes are not allowed within about a six-week horizon because of the difficulty in adjusting production schedules within such a short period. However, schedule adjustments are allowed beyond six weeks to cope with changing demand patterns or the introduction of new products. Accordingly, it should be noted that the aggregate production plan is not the only input to the master schedule. Other inputs that may cause the master schedule to depart from the aggregate plan include new customer orders and changes in sales forecast over the near term.Material Requirements Planning * Material requirements planning (MRP) is a computational technique that converts the master schedule for end products into a detailed schedule for the raw materials and components used in the end products. * The detailed schedule identifies the quantities of each raw material and component item. It also indicates when each item must be ordered and delivered to meet the master schedule for final products. * MRP is often thought of as a method of inventory control. It is both an effective tool for minimizing unnecessary inventory investment and a useful technique in production scheduling and purchasing of materials.Material Requirements Planning * The distinction between independent demand and dependent demand is important in MRP. * Independent demand means that demand for a product is unrelated to demand for other items. * Final products and spare parts are examples of items whose demand is independent. + Independent demand patterns must usually be forecasted. Dependent demand means that demand for the item is directly related to the demand for some other item, typically a final product. + The dependency usually derives from the fact that the item is a component of the other product. Component parts, raw materials, and subassemblies are examples of items subject to dependent demandMaterial Requirements Planning Whereas the demand for firm's end products must be forecasted (in the absence of customer orders), the raw materials and component parts used in the end products should not be forecasted. Once the delivery schedule for end products is established, the requirements for components and raw materials can be directly calculated. For example, even though demand for a given model of automobile each month can only be forecasted, once the quantity is established and production is scheduled, it is known that five tires will be needed to deliver the car (don’t forget the spare}. MRP is the appropriate technique for determining quantities of dependent demand items. These items constitute the inventory of manufacturing: raw materials, work-in-process (WIP), component parts, and subassemblies. That is why MRP is such a powerful technique in the planning and control of manufacturing inventories. For independent demand items, inventory control is often accomplished using order point system.Material Requirements Planning The concept of MRP is relatively straightforward. Its implementation is complicated by the sheer magnitude of the data to be processed The master schedule provides the overall production plan for the final products in terms of month-by-month deliveries. Each product may contain hundreds of individual components. These components are produced from raw materials, some of which are common among the components. For example, several components may be made out of the same gauge sheet steel. The components are assembled into simple subassemblies, and these subassemblies are put together into more complex subassemblies, and so on, until the final products are assembled. Each step in the manufacturing and assembly sequence takes time. All of these factors must be incorporated into the MRP calculations. Although each calculation is uncomplicated, the magnitude of the data is so large (at least for products of more than a few components) that the application of MRP is impractical without computer processing. OoCAPACITY PLANNING + The original MRP systems that were developed in the 1970s created schedules that were not always consistent with the production capabilities and limitations of the plants that were to make the products. * In many instances, the MRP system developed the detailed schedule based on a master production schedule that was unrealistic. * A realistic production schedule must consider production capacity. In cases where current capacity is inadequate, the firm must make plans for changes in capacity to meet the changing production requirements specified in the schedule. * Capacity planning consists of determining what labour and equipment resources are required to meet the current MPS as well as long-term future production needs of the firm (see Advanced Manufacturing Planning, Section 24.4). * Capacity planning also identifies the limitations of the available production resources to prevent the planning of an unrealistic master schedule.CAPACITY PLANNING * Capacity planning is often accomplished in three stages, as indicated in Figure 25.8: first, during aggregate production planning; second, when the master production schedule is established; and third, when the MRP computations are done. + During aggregate production planning, the term resource requirements planning (RRP) denotes the evaluation process used to make sure that the aggregate plan is feasible. Downward adjustments may be required if the plan is too ambitious. * RRP may also be used to plan for future increases in capacity to match an ambitious plan or to anticipate demand increases in the future. Thus, resource requirements planning is used not only to check the aggregate production plan but also to plan for future expansion (or reduction) of capacity.Figure 25.8 Three stages of capacity planning: (1) resource requirements planning (RRP), (2) rough-cut capacity planning (RCCP), and (3) capacity requirements planning (CRP).CAPACITY PLANNING + Next in MPS a capacity calculation called rough-cut capacity planning (RCCP) is made to assess the feasibility of the master schedule. * Such a calculation indicates whether there is a significant violation of production capacity in the MPS. On the + other hand, if the calculation shows no capacity violation, neither does it guarantee that the production schedule can be met. * This depends on the allocation of work orders to specific work cells in the plant. * Accordingly, a thd capacity calculation is made at the time the MRP schedule is prepared Called capacity requirements planning (CRP), this detailed calculation determines whether there Is sufficient production capacity in the individual departments and in the work cells to complete the specific parts and assemblies that have been scheduled by MRP. * If the schedule is not compatible with capacity, then either the plant capacity or the master schedule must be adjusted.SHOP FLOOR CONTROL Shop floor control is set of activities in production control that are concerned with releasing. production orders to the factory, monitoring and controlling the progress of the orders through the various work centers, and acquiring current information on the status of the orders. A typical SFC system consists of three phases: (1) order release, (2) order scheduling, and (3) order progress. The three phases and their connections to other functions in the production management system are pictured in Figure 25.9. In modern implementations of shop floor control, these phases are executed by a combination of computer and human resources, with a growing proportion accomplished by computer automated methods. The term manufacturing execution system (MES) is used for the computer software that supports SFC and that typically includes the capability to respond to on-line inquiries concerning the status of each of the three phases. Other functions often included in an MES are generation of process instructions, real-time inventory control, machine and tool status monitoring, and labor tracking. In addition, an MES usually provides links to other modules in the firm’s information system, such as quality control, maintenance, and product design data.Taser mete a oo ed ee ai Fear) ime ‘release shel progress reports Factory —f t t =) | ma er | Lp Msnccton oe Raw materials“ f Lf +L }-+— at ssc Rl otc Wert cate \- Werte proces Figure 25.9. Three phases ina shop floor control system.INVENTORY CONTROL + Inventory control attempts to achieve a compromise between two opposing objectives: (1) minimizing the cost of holding inventory and (2) maximizing customer service. + Minimizinginventory cost suggests keeping inventoryto @ minimum, in the extreme, zero inventory. + Maximizing customer service implies keeping large stocks on hand so that customer orders can immediately be filled. . » wee m + The types af inventory of greatest nterestin PPC are raw materials purchased components, in-process wventory (WIP), and finished products. The major costs of holdinginventory are (1) investment costs, (2) storage costs, and (3) cost of possible obsolescence or spoilage. * The three costs are referred to collectively as carrying costs or holdingcosts. Investment cost is usually the largest component. + When a company borrows money to invest in materials to be processed in the factory, it must pay interest on that money until the customer pays for the finished product. + But many months may elapse between start of production and delivery to the customer. Even ifthe company uses its own money to purchase the starting materials, itis still making an investment that associated with it.INVENTORY CONTROL * Companies can minimize holding costs by minimizing the amount of inventory on hand. However, when inventories are minimized, customer service may suffer, inducing customers to take their business elsewhere. This also has a cost, called the stock-out cost. + Most companies want to minimize stock-out cost and provide good customer service. + Thus, they are caught on the horns of an inventory control dilemma, balancing carrying costs against the cost of poor customer service.Process Planning * The product design is the plan for the product and its components and subassemblies. + Amanufacturing plan is needed to convert the product design into a physical entity. * The activity of developing such a plan is called process planning. * Itis the bridge between product design and manufacturing. Process planning involves determining the sequence of processing and assembly steps that must be accomplished to make the product.Process Planning * Process planning consists of determining the most appropriate manufacturing and assembly processes and the sequence in which they should be accomplished to produce a given part or product according to specifications set forth in the product design documentation. +The scope and variety of processes that can be planned are generally limited by the available processing equipment and_ technological capabilities of the company or plant. + Parts that cannot be made internally must be purchased from outside vendors. * The choice of processes is also limited by the details of the product design,Process Planning * Process planning is usually accomplished by manufacturing engineers (other titles include industrial engineers, production engineers, and process engineers). * They must be familiar with the particular manufacturing processes available in the factory and be able to interpret engineering drawings. Based on the planner’s knowledge, skill, and experience, the processing steps are developed in the most logical sequence to make each part. + Following is a list of the many decisions and details usually included within the scope of process planningProcess Planning + Interpretation of choice drawing : First, the planner must analyze the part or product design (materials, dimensions, tolerances, surface finishes, etc.). * Choice of processes and sequence. The process planner must select which processes and their sequence are required, and prepare a brief description of all processing steps. * Choice of equipment. In general, process planners must develop plans that utilize existing equipment in the plant. Otherwise, the company must purchase the componentor invest in new equipment. * Choice of tools, dies, molds, fixtures, and gages. The process planner must decide what tooling ts required for each processing step. The actual design and fabrication of these tools is usually delegated to a tool design department and tool room, or an outside vendor specializing in that type of tooling.Process Planning + Analysis of methods. : Workplace layout, small tools, hoists for lifting heavy parts, even in some cases hand and body motions must be specified for manual operations. The industrial engineering department is usually responsible for this area. + Setting of work standards. :\Workimeasurementitechniquesiarelusedito __ set time standards for each operation. * Choice of cutting tools and cutting conditions. : These must be specified for machining operations, often with reference to standard handbook recommendations. + Similar decisions about process and equipment settings must be made for processes other than machining.