Production
Activity
Control
1
Lead Time
One of the most noteworthy accomplishments in
keeping the price of Ford products low is the
gradual shortening of the production cycle. The
longer an article is in the process of manufacture
and the more it is moved about, the greater is its
ultimate cost.
Henry Ford, 1926
Production Activity
Control
PAC
PAC is responsible for executing the MPS and the MR
plan.
PAC must make good use of labor and machines,
minimize WIP inventory, and maintain customer
service.
Production Activity
Control
PAC Activities
PAC is authorized via the MR Plan to:
Release work orders to the shop
Control work orders and ensure on time completion
Be responsible for immediate detailed planning of the
work order flow through the shop and controlling the
work as it progresses to completion
Manage the day-to-day activities and provide support
Production Activity
Control
Planning
Flow of work through each work center must
be planned by activities such as:
Ensuring materials, tooling, personnel, and
information are available when needed
Scheduling start and completion dates for each
shop order at each work center such that
completion dates are met.
Production Activity
Priority
Control
Production
Plan
Planning
Planning
and
Productio
n Activity
Control
Master
Production
Schedule
Material
Requirement
s Plan
Input/Output
Control
Implemen
t and
Control
Purchasing
Production
Activity
Control
Operation
Sequencing
6
Production Activity
Control
Implementation
PAC must put plans into action by advising the shop
floor as to what must be done including:
Gathering information needed by the shop to make the
product
Releasing (dispatching) orders to the shop floor as
authorized by the MR Plan
Production Activity
Control
Control
PAC must monitor the process to compare actual
results to the plan and take corrective action if needed.
Control activities include:
Ranking shop orders in desired priority order
Creation of dispatch list based on priorities
Tracking and comparison of actual performance of work
orders to planned schedules
Monitor and control WIP, LT, and queues
Report on work center efficiency, operation times, order
quantities and scrap
Production Activity
Control
PRODUCTION ACTIVITY CONTROL
PLAN
Schedul
e Replan
EXECUTE
Work
Authorizatio
n
CONTRO
L
Compare
Decide
Dispatch
Feedback
MANUFACTURING OPERATIONS
Production Activity
Control
Categories of Manufacturing Systems
Flow Manufacturing
Intermittent Manufacturing
Project Manufacturing
10
Production Activity
Control
Flow Manufacturing
Production of high volume standard products
Repetitive manufacturing: discrete products
Continuous manufacturing: continuous flow
Major characteristics:
Routings are fixed and work centers arranged
according to the routings
Work centers dedicated to a limited range of
products
Material flows via some form of mechanization
Capacity is fixed by the line
Simple implementation and control
11
Production Activity
Control
Intermittent Manufacturing
Characterized by many variations in product design,
process requirements, and order quantities
Major characteristics:
Flow of work is varied and depends on designs
Machinery and workers must be flexible
Throughput times are generally long
WIP is usually large
Required capacity is difficult to predict
PAC activities are complex
12
Batch Vs. Single Piece Flow
Demonstration:
Requirements:
1. Three workers
2. Two Industrial Engineers for time studies
3. One part-time material handle
Step 2- Draw red circle
Step 1- Draw
black square
Step 3- Draw blue triangle
13
Procedure:
Scenario #1 (w/material handler):
1. When signaled by the IE, station 1 (black square) will begin drawing.
2. After all eleven are completed, the material handler will move those
components to the next station.
3. Repeat for each station until complete.
IEs1. One IE will measure the total batch time from start to finish (track pink
sheet).
2. The second IE will track the amount of value added time (again track
the pink sheet).
14
Procedure:
Scenario #2 (without material handler):
1. When signaled by the IE, station 1 (black square) will begin drawing.
2. After all eleven are completed, move those components to the next
station.
3. Repeat for each station until complete.
IEs1. One IE will measure the total batch time from start to finish (track pink
sheet).
2. The second IE will track the amount of value added time (again track
the pink sheet).
15
Procedure:
Scenario #3 (one piece flow):
1. When signaled by the IE, station 1 (black square) will begin drawing.
2. After each piece is completed, move that component to the next station.
3. Repeat for each station until complete.
IEs1. One IE will measure the total batch time from start to finish (track pink
sheet).
2. The second IE will track the amount of value added time (again track
the pink sheet).
16
Production Activity
Control
Project Manufacturing
Involves the creation of one or a small number of
units
Design may be carried out or changed as the project
develops
Requires close coordination between manufacturing,
marketing, purchasing, and engineering
17
Production Activity
Control
Data Requirements
PAC requires the following information:
What and how much to produce
When parts are to be completed
What operations are required
What the available capacities of the work centers are
PAC obtains this information from:
Planning files (database)
Control Files (database)
18
Production Activity
Control
Planning Files
Item Master File
One record for each part number
Part number
Part description
Manufacturing Lead Time (MLT)
Quantity on hand
Quantity available
Allocated quantity
On-Order quantity
Lot size quantity
19
Production Activity
Control
Planning Files
Product Structure File
A list of the single level components and quantities
needed to assemble the parent
Form the basis for a pick list
Routing File
Operations required and the sequence
A description of each operation
Equipment, tools and accessories needed
Setup, run, and lead times for each operation
20
Production Activity
Control
Planning Files
Work Center Master File
Work center number
Capacity
Number of shifts per week
Number of machine hours per shift
Efficiency
Utilization
Queue time
Alternate work centers
21
Production Activity
Control
Control Files
Shop Order Master File
Shop order number
Order quantity
Quantity completed
Quantity scrapped
Quantity of material issued to the order
Due date
Priority
Balance due
Cost information
22
Production Activity
Control
Control Files
Shop Order Detail File
Operation number
Setup hours, planned and actual
Run hours, planned and actual
Quantity reported complete at that operation
Quantity reported scrapped at that operation
Due date or lead time remaining
23
Production Activity
Control
Order Preparation
Order should be reviewed to ensure that the
appropriate tooling, materials, and capacity are
available.
Checking capacity involves two steps:
Order must be scheduled to see when capacity is
needed
Load on the work centers must be checked in that
period
24
Production Activity
Control
Scheduling
The objective of scheduling is to meet delivery dates
and to make the best use of manufacturing resources
Involves establishing start and finish dates
The planner must have information concerning
routing, required and available capacity, competing
jobs, and MLT at each work center.
25
Production Activity
Control
Manufacturing Lead Time
The time required to produce an item in a typical lot
quantity.
Total includes order preparation and release plus the MLTs
for each operation
Five elements:
Queue time
Setup time
Run time
Wait time
Move time
26
Production Activity
Control
MANUFACTURING LEAD
TIME
ORDER
RELEAS
E
QUEU
E
MOVE
SETUP
RUN
WAIT
MOVE
QUEU
E
MOVE
QUEU
E
SETUP
RUN
WAIT
QUEU
E
SETUP
RUN
WAIT
MOVE
SETUP
RUN
WAIT
27
Production Activity
Control
Manufacturing Lead Time
Setup and run times are the responsibility of the
industrial and manufacturing engineering
departments
Queue, wait, and move times are under the control
of manufacturing and PAC
Largest element is queue time
85%+ of total lead time
PAC is responsible for managing the queue by
regulating the flow of work into and out of work centers
28
Production Activity
Control
Scheduling Techniques
Forward Scheduling
Assumes that the material procurement and operation
scheduling for a component starts when the order is received
Operations are scheduled forward from that date
A likely result is completion before the due date
Inventory buildup
May be used to determine the earliest delivery date for a
product
29
Production Activity
Control
Scheduling Techniques
Backward scheduling
The last operation on the routing is scheduled first at the
completion due date
Previous operations are then scheduled back from the last
operation
WIP is reduced
Since there is little slack time customer service may suffer
30
Production Activity
Control
Back
Scheduling
Part
(days)
A
B
Operation
Time
10
20
10
10
Assembly X
Part
A
Part
B
OP
10
OP
20
5
Assembly
X
OP
10
85
90
Working Days 95
100
31
Production Activity
Control
Scheduling Techniques
Infinite Loading
Assumes that the workstations on which the operations
are to be performed have capacity available whenever
needed.
Assumes infinite capacity
Finite Loading
Assumes there is a defined limit to available capacity at
any workstation
If capacity is not available because of other orders, the
order must be scheduled in a different time period
32
Production Activity
Control
Capacity Overload
Infinite Load
Profile
CAPACITY
Capacity
Underload
33
Production Activity
Control
Finite Load
Profile
CAPACITY
Smoothed Load
34
Production Activity
Control
Operation Overlapping
The next operation is allowed to begin before the
entire lot is completed on the previous operation.
Reduces total MLT
Costs involved:
Move costs are increased
May increase queue an LT for other orders
May actually decrease capacity if the second operation
is idle waiting for parts from the first
35
Production Activity
Control
Operation Overlapping
Operation A
SU
Lot 1
Lot 2
T
Transit Time
SU
Lot 1
Lot 2
Operation B
36
Production Activity
Control
Operation Splitting
Orders are split into two or more lots and run on two
or more machines simultaneously.
Effectively cuts the run time in half
And reduces overall MLT
Additional setup may be incurred
37
Production Activity
Control
Bottlenecks
Bottlenecks are those stations where the required
capacity is greater than the available capacity
APICS Definition:
A facility, function, department, or resource whose
capacity is equal to or less than the demand placed on
it.
38
Production Activity
Control
Throughput
Is the total volume of production passing through a facility
Bottlenecks control throughput of all products passing
through them
Work should be scheduled through a bottleneck at the rate
it can process work
Work centers fed by a bottleneck have their throughput
controlled by the bottleneck
39
Production Activity
Control
Bottleneck Principles
Utilization of a non-bottleneck resource is not
determined by its potential, but by another
constraint in the system.
Using a non-bottleneck 100% of the time does not
produce 100% utilization.
The capacity of the system depends on the capacity
of the bottleneck.
40
Production Activity
Control
Bottleneck Principles
Time saved at a non-bottleneck saves the system
nothing
Capacity and priority must be considered together
Loads can, and should be split
41
Production Activity
Control
Managing Bottlenecks
Establish a time buffer before each bottleneck
Control the rate of material feeding the bottleneck
Do everything to provide the needed bottleneck
capacity (and hence the system)
42
Production Activity
Control
Managing Bottlenecks
Adjust loads
Change the schedule
43
Drum-Buffer-Rope
Drum pace of production
Buffer inventory time buffer
to prevent starving the
constraint
Rope pulls production to
the constraint
44
Production Activity
Control
Implementation
Implementation is arrived at by issuing a shop order
to manufacturing authorizing them to proceed with
making the item.
A shop packet is compiled and issued:
Shop order
Engineering drawings
BOM
Route sheets
-Material issue tickets
-Tool requisitions
-Job tickets
-Move tickets
45
Production Activity
Control
Control
Performance is to be measured and compared to
what is planned
Control of the progress of orders in the shop
Control queue to meet delivery dates
Control the work going into and out of a work center
(input/output control)
Set the correct priority of orders to run at each work
center
46
Production Activity
Control
Input/Output Control
A method of managing queues and WIP lead times by
monitoring and controlling the input to, and output from,
a facility.
Goal is to balance the flow of work to and from different
work centers.
Input is controlled by the release of orders to the shop
floor
Output is controlled by increasing or decreasing the
capacity of the work center
47
Production Activity
Control
Input/Output Report
Provides the information for control:
Cumulative variance
The difference between the total planned for a given
period and the actual total for that period
Backlog
The same as queue expressed in hours
48
Production Activity
Control
Operation Sequencing
APICS Definition:
A technique for short-term planning of actual jobs to
be run in each work center based on capacity and
priorities.
Priority is the sequence in which jobs at a work center
should be worked on
49
Production Activity
Control
Dispatching
Is the function of selecting and sequencing available
jobs to be run at individual work centers.
Dispatch list:
A listing by operation of all the jobs available to be run
at a work center with the job listed in priority order.
50
Production Activity
Control
Dispatching Rules
First come first served (FCFS)
Earliest job due date (EDD)
Earliest operation due date (ODD)
Shortest process time
51
Production Activity
Control
Production Reporting
Provides feedback of what is actually happening on the
plant floor.
Used by PAC to establish proper priorities and to answer
questions regarding deliveries, shortages, and order status.
Types of information:
Order status
-Inventory status
Exception reports
-Performance summaries
Weekly input/output by dept
52
Next Week. . .
Work and be prepared to discuss:
6.1
6.2
6.3
6.10
6.14
Read Chapter 7
53
