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8/3/2019 CAD vs CAM
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CAD vs CAMCAD and CAM are important tools in designing and manufacturing. Before the adventofcomputersand especially PC in the eighties, draftsmen performed important role indesigning in companies. But computers changed the scenario completely. Their affordabilityand versatility allowed engineers to do drafting on their own. Today hand drafting for
designing has become obsolete and the days of compasses and protractors are virtuallyover. CAD and CAM are important terms in the field of design and manufacture and refer toComputer Aided Design and Computer Aided Manufacture respectively.CADCAD is the use of computers for designing in simple language. It is also known as CADD,which stands for computer aided design and drafting. In CAD, a wide range of computerbased tools are used to assist engineers, architects and other design professionals in theirdesign activities.Originally CAD referred to computer aided drafting as it was a replacement of traditionaldrafting board. But today it is called designing to reflect the fact that much more can be donewith the help of computers besides just drafting. CAD is usually employed when simpledrafting is not able to do the job such as in design of automobiles, airplanes, ships and other
industrial designs.CAMCAM is the use of computer based tools that assist engineers, tool and die makers and CNCmachinists in the manufacture and prototyping of productcomponents. While CAD has manyfunctions that do not necessarily involve CAM, the same cannot be said about CAM, and ingeneral, CAM is heavily dependent upon CAD.Difference between CAD and CAMCAD and CAM are both part of an over all important process that is referred to as computeraidedengineering(CAE). CADS and CAM have similar advantages and they render items in2D or 3D. Both CAD and CAM help in quick processing and production of any design that isconceptualized by a scientist. Most of the CAM machines have inbuilt CAD software.The major difference between CAD and CAM lies in the end user. While CAM software is
mostly used by an engineer, CAM is used by a trained machinist. These machinists arehighly skilled and are equivalent to a computer engineer.
Summary
CAD refers to Computer Aided Design, while CAM stands for Computer Aided
Manufacture.
CAD and CAM have revolutionized the way things are designed and
manufactured.
CAD and CAM are heavily dependent upon each other.
Read more:http://www.differencebetween.com/difference-between-cad-and-vs-
cam/#ixzz1JDGYNmOC
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Standardization is the process of developing and implementingtechnical standards.
The goals of standardization can be to help with independence of
singlesuppliers(commoditization),compatibility,interoperability,safety,repeatability
, orquality.Insocial sciences, includingeconomics, the idea of standardizationis close to the
solution for acoordination problem, a situation in which all parties can realize mutual
gains, but only by making mutually consistent decisions. Standardizationis defined
as best technical application consentual wisdom inclusive of processes for selection
in making appropriate choices forratificationcoupled with consistent decisions for
maintaining obtained standards. This view includes the case of "spontaneous
standardization processes", to producede facto standards.
Contents
[hide]
1 Usage
2 Techniques
3 Other uses
4 Types
5 Further reading
6 See also
7 References
[edit]Usage
Standardization is the process of establishing atechnical standard, which could be a
standardspecification, standardtest method, standarddefinition, standard procedure
(or practice), etc.
The existence of a published standard does not necessarily imply that it is useful or
correct. Just because an item is stamped with a standard number does not, by itself,
indicate that the item is fit for any particular use. The people who use the item or
service (engineers, trade unions, etc) or specify it (building codes, government,
industry, etc) have the responsibility to consider the available standards, specify the
correct one, enforce compliance, and use the item correctly.Validationof suitability
is necessary.
Standardization is implemented greatly when companies release new products to
market. Compatibility is important for products to be successful; many devices
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coming out haveUSB,Ethernet, or other standard types of connection. This allows
consumers to use their new items along with what they already own.
By using standardization, groups can easily communicate through the set guidelines,
in order to maintain focus. The method is made to facilitate processes and tasks; thisis why it interlocks with lean manufacturing.
[edit]Techniques
There are typically four different techniques for standardization
Simplification or variety control
Codification
value engineering / value analysis
Statistical process
[edit]Other uses
Instatistics, standardization refers to conversion tostandard scores.
Intest theory, standardization refers to measurements or assessments
conducted under exact, specified, and repeatable conditions.
Insupply chain management, standardization refers to approaches for increasing
commonality of either part, process, product orprocurement. Such change will
enable delayed making ofmanufacturingor procurement decisions, thus reducing
variability found in having many non-standard components.
From aNew institutional economicspoint of view, standardization processstarts
with a social problem known as "coordination dilemma". Standards, as "voluntary
norms", serve to facilitate the resolution ofcoordination dilemmasand realize
mutual gains; then standardrefer also to a kind of social dilemma solution.
[edit]Types
Types of standardization process:
Emergence asde facto standard:tradition, market domination, etc.
Written by aStandards organization:
in a closed consensus process: Restricted membership and often having
formal procedures for due-process among voting members
in a full consensus process: usually open to all interested and qualified parties
and with formal procedures for due-process considerations.
Written by a government or regulatory body
Written by a corporation, union, trade association, etc
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A bill of materials (sometimes bill of material or BOM)is a list of the raw materials, sub-assemblies,intermediate assemblies, sub-components, components,parts and the quantities of each needed to manufactureanend product. No physical dimension is described inBOM[1][2]
It may be used for communication betweenmanufacturing partners,[3]or confined to a singlemanufacturing plant.
A BOM can define products as they are designed(engineering bill of materials), as they are ordered (salesbill of materials), as they are built (manufacturing bill of
materials), or as they are maintained (service bill ofmaterials). The different types of BOMs depend on thebusiness need and use for which they are intended. Inprocess industries, the BOM is also known asthe formula, recipe, or ingredients list. In electronics, the
BOM represents the list of components used on theprinted wiring board or printed circuit board. Once the
design of the circuit is completed, the BOM list is passedon to the PCB layout engineer as well as componentengineer who will procure the components required forthe design.
BOMs are hierarchical in nature with the top levelrepresenting the finished product which may be a sub-assembly or a completed item. BOMs that describe the
sub-assemblies are referred to asmodular BOMs. An
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example of this is the NAAMS BOM that is used in theautomative industry to list all the components in anassembly line. The structure of the NAAMS BOM is
System, Line, Tool, Unit and Detail.The first hierarchical databases were developed forautomating bills of materials for manufacturingorganizations in the early 1960s. At present this BOM isused as a data base to identify the many parts and theircodes in automobile manufacturing companies.[4]
A bill of materials "implosion" links component pieces to
a major assembly, while a bill of materials "explosion"breaks apart each assembly or sub-assembly into itscomponent parts.
A BOM can be displayed in the following formats:
A single-level BOM that displays the assembly orsub-assembly with only one level of children. Thus it
displays the components directly needed to make theassembly or sub-assembly.
[5]
An indented BOM that displays the highest-level itemclosest to the left margin and the components used inthat item indented more to the right.[1]
Modular (planning) BOM
A BOM can also be visually represented by a product
structure tree, although they are rarely used in theworkplace.[1][edit]
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Getting Started: BOM ProcedureThe ABC Lamp Company product line example fromFogarty, Blackstone, and Hoffmann
(1991)illustrates the basic features of PROC BOM. The Part Master data set,PMaster0,
displayed inFigure 2.1, contains the part master records for all items in the company. Each
master record contains the part number (denoted by the Partvariable) and the part description(denoted by the Desc variable) for an item. It also contains data on unit of measure (denoted
by the Unit variable) for the item. The Product Structure data set, ParComp0, displayed
inFigure 2.2, contains all product structure records in the company. Each product structure
defines a parent-component relationship. The Parent variable contains the part number for the
parent item and the Component variable contains the part number for the component.
The QtyPer variable contains the quantity per assembly for the parent-component
relationship.
The values for the Parent and Component variables are linked by the value of
the Part variable in the Part Master data set to define the parent-component relationship. For
example, in the 11th observation of the data set ParComp0 (as displayed inFigure 2.2), thevalue '1100' for the Parent variable is linked to the first observation of the data
set PMaster0 (as displayed inFigure 2.1), which provides the part description and unit of
measure for the parent item. Similarly, the value of '2100' for the Componentvariable is
linked to the eighth observation of the part master file providing the master data for the
component. Therefore, the parent-component relationship that is represented in the 11th
observation of the product structure data set, ParComp0, should be interpreted as: each
finished shaft uses 26 inches of 3/8 steel tubing.
ABC Lamp Company
Part Master Data Set
Obs Part Desc Unit
1 1100 Finished shaft Each
2 1200 6-Diameter steel plate Each
3 1300 Hub Each
4 1400 1/4-20 Screw Each
5 1500 Steel holder Each
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6 1600 One-way socket Each
7 1700 Wiring assembly Each
8 2100 3/8 Steel tubing Inches
9 2200 16-Gauge lamp cord Feet
10 2300 Standard plug terminal Each
11 A100 Socket assembly Each
12 B100 Base assembly Each
13 LA01 Lamp LA Each
14 S100 Black shade Each
Figure 2.1: Part Master File (PMaster0)
ABC Lamp Company
Product Structure Data Set
Obs Parent Component QtyPer
1 LA01 B100 1
2 LA01 S100 1
3 LA01 A100 1
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4 B100 1100 1
5 B100 1200 1
6 B100 1300 1
7 B100 1400 4
8 A100 1500 1
9 A100 1600 1
10 A100 1700 1
11 1100 2100 26
12 1500 1400 2
13 1700 2200 12
14 1700 2300 1
Figure 2.2: Product Structure File (ParComp0)
The following code invokes PROC BOM to produce the indented bill of material for the
product 'LA01' and the summarized parts list for the production plan in which 1 unit
of'LA01' is planned in the current planning period (period 1).
/* Create the indented BOM and summarized parts list */
proc bom data=ParComp0 pmdata=PMaster0out=IndBOM0 summaryout=SumBOM0;
structure / part=Part
parent=Parent
component=Component
quantity=QtyPer
id=(Desc Unit);
run;
The Indented BOM data set, IndBOM0, is displayed inFigure 2.3. This data set contains the
indented bill of material for the product 'LA01'. Each record or observation in this data setcontains product structure data: the part number for the parent item is contained in
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the _Parent_ variable, the part number for the component is contained in the _Part_ variable,
and the quantity per assembly is contained in the QtyPer variable. It also contains the part
master data (Desc and Unit variables) from the Part Master data set for the component
identified by the _Part_ variable. If a component is used in more than one parent item, it
appears in multiple records. For example, the item 1/4-20 Screw (part number '1400') is used
in both Base assembly (part number 'B100') and Steel holder (part number '1500'); this item
occurs in records identified by the values 6 and 10 for the variable Part_ID.
ABC Lamp Company
Indented Bill of Material, Part LA01
_Lev
el_
_Pare
nt_
_Pa
rt_
Desc Qty
Per
Qty_P
rod
Unit Paren
_ID
Part
_ID
_Pro
d_
0 LA0
1
Lamp
LA
. 1 Eac
h
. 0 LA01
1 LA01 B100
Baseasse
mbly
1 1 Each
0 1 LA01
2 B100 110
0
Finish
ed
shaft
1 1 Eac
h
1 2 LA01
3 1100 210
0
3/8
Steeltubing
26 26 Inch
es
2 3 LA01
2 B100 120
0
6-
Diame
ter
steel
plate
1 1 Eac
h
1 4 LA01
2 B100 130
0
Hub 1 1 Eac
h
1 5 LA01
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2 B100 140
0
1/4-20
Screw
4 4 Eac
h
1 6 LA01
1 LA01 S10
0
Black
shade
1 1 Eac
h
0 7 LA01
1 LA01 A10
0
Socke
t
asse
mbly
1 1 Eac
h
0 8 LA01
2 A100 150
0
Steel
holder
1 1 Eac
h
8 9 LA01
3 1500 140
0
1/4-20
Screw
2 2 Eac
h
9 10 LA01
2 A100 160
0
One-
way
socket
1 1 Eac
h
8 11 LA01
2 A100 170
0
Wiring
asse
mbly
1 1 Eac
h
8 12 LA01
3 1700 220
0
16-
Gaug
e
lamp
cord
12 12 Feet 12 13 LA01
3 1700 230
0
Stand
ard
plugtermin
al
1 1 Eac
h
12 14 LA01
Figure 2.3: Indented Bill of Material (IndBOM0)
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As discussed in the section"Overview: BOM Procedure", each indented bill of material can
be illustrated by a family tree. In fact, each record in the Indented BOM data set corresponds
to a node in this tree.Figure 2.4displays the tree diagram for the indented bill of material in
the IndBOM0 data set. Each tree node or record is uniquely identified by
a sequenceor IDnumber that is assigned to it by the procedure. The Part_ID variable
contains this ID number for each record. The Paren_ID variable contains the sequence
number for the parent node or parent record. A parent recordfor a given record is the
record that defines the parent node of the node defined by the given record. For example, the
parent record of record 6 in the data set IndBOM0 is record 1, while record 9 is the parent
record of record 10. Record 0 has no parent record.
Read more:There are four main types of production. Describe each one, giving examples
where each type may be employed. |
Answerbaghttp://www.answerbag.com/q_view/554067#ixzz1JDKHqrOi
Figure 2.4: Tree Diagram for the Bill of Material for LA01
The IndBOM0 data set contains other data: The _Level_ variable denotes the indenture level
number for each node or record. The root node with the sequence number 0 is at level 0, and
the level numbers increase as you look down the tree. The _Prod_ variable contains the part
number of the end item. The Qty_Prod variable contains thequantity per product, that is,the quantity of the component identified by the _Part_ variable required to make one unit of
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the end item 'LA01'. Note that in this particular example, the values of the Qty_Prod variable
are identical to the values of the QtyPer variable. This is because the quantities per assembly
for all the parent-component relationships are 1, except for relationships 'B100'-'1400', '1100'-
'2100', '1500'-'1400', '1700'-'2200'. The components ('1400', '2100', and '2200') of these
parent-component relationships do not have any subcomponents themselves.
Figure 2.3, as well asFigure 2.4, shows that the Indented BOM data set lists all the records
in depth-firstorder. This scheme lists tree nodes from top to bottom and from left to right.
For example, item '1100' is listed directly after its parent, 'B100', and before
items 'S100' and 'A100' (the right siblings of item 'B100'). Similarly, item '2100' is listed
directly after item '1100' and before items '1200', '1300', and '1400'. Refer toAho, Hopcroft,
and Ullman (1983)for details about depth-first ordering. See the section"Indented BOM
Data Set"for details regarding the records in this data set.
ABC Lamp Company
Summarized Parts List, Period 1
_Part_ Low_Code Gros_Req On_Hand Net_Req Desc Unit
1100 2 1 0 1 Finished
shaft
Each
1200 2 1 0 1 6-
Diameter
steel
plate
Each
1300 2 1 0 1 Hub Each
1400 3 6 0 6 1/4-20
Screw
Each
1500 2 1 0 1 Steel
holder
Each
1600 2 1 0 1 One-way
socket
Each
1700 2 1 0 1 Wiring
assembly
Each
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2100 3 26 0 26 3/8 Steel
tubing
Inches
2200 3 12 0 12 16-
Gaugelamp
cord
Feet
2300 3 1 0 1 Standard
plug
terminal
Each
A100 1 1 0 1 Socket
assembly
Each
B100 1 1 0 1 Base
assembly
Each
LA01 0 1 0 1 Lamp LA Each
S100 1 1 0 1 Black
shade
Each
Figure 2.5: Summarized Parts List (SumBOM0)
The Summarized Parts data set, SumBOM0, is displayed inFigure 2.5. This data set, which
has been sorted by the _Part_ variable, has a record for each item in the ABC Lamp
Company's product line. Each record contains the part master data from the Part Master data
set, PMaster0. The _Part_, Desc, and Unit variables contain the part number, part description,
and unit of measure, respectively, for each item. It also contains some other
data: The Low_Code variable denotes the low-level codeof the item. The low-level code
for an item is a number that indicates the lowest level in any bill of material at which this
item appears. For example, item '1400' appears at levels 2 and 3 in this example; thus, its
low-level code is 3. The low-level codes are necessary to make sure that the net requirement
for a given item is not calculated until all the gross requirements have been calculated down
to that level. The On_Hand variable contains the quantity of the item currently on hand. Since
the part master file (as shown inFigure 2.1) does not contain any quantity on hand
information, the procedure assumes that this variable is 0 for allitems. The Gros_Req and Net_Req variables contain the gross and net requirements,
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respectively. Again, since the PMaster0 data set does not provide any production plan
information, PROC BOM assumes that the final product, 'LA01', is the only master schedule
item and the gross requirement for this item is 1 unit. The net requirement for item 'LA01' is
the gross requirement (1) minus the quantity on hand (0). The gross and net requirements of
the other items are then calculated sequentially:'B100' Base assembly (1 per lamp)
Gross requirement
(= net requirement of 'LA01' quantity per assembly)
Quantity on hand
Net requirement 1
'1100' Finished shaft (1 per base assembly)
Gross requirement
(= net requirement of 'B100' quantity per assembly)
Quantity on hand
Net requirement 1
'2100' 3/8 Steel tubing (26 inches per shaft)
Gross requirement
(= net requirement of '1100' quantity per assembly)
Quantity on hand
Net requirement 26
If an item (such as item '1400' in this example) is used in more than one assembly, the gross
requirement is the total needed in all assemblies where it is used. See the
section"Summarized Parts Data Set"for details about determining the gross and net
requirements.Recall that the Part Master data set (as shown inFigure 2.1) does not contain any quantity on
hand and requirement information, and item 'LA01' is the only final product. Thus, in this
example, the summarized parts list (as displayed inFigure 2.5) is actually the same as the
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summarized bill of material for item 'LA01', with the gross (or net) requirement representing
the total usage of each item.
TYPES OF PRODUCTION SYSTEM
The production system varies from factory to factory and from product toproduct. However, one of the most important issues is productionvolume. The most common type of production systems are:
1. Job shop production2. Batch production3. Mass production
Further, a particular type of job shop situation is project production.Similarly, the mass production could be line (or flow production) and
continuous production.
Methods of production
Production is at the heart of all industry and is the process of using the resources of
a firm to convert inputs into outputs, which are products or services desired by
customers.
Job production
Job production is used to create one-off orders or jobs especially made for the
purpose. This might be a relatively small job such as bespoke suit or a sandwich
made to order in a caf, or it could be a massive job such as a cruise liner or the
Arsenals new stadium.
Job production helps ensure that the product or service matches the customers
exact needs, as closely as the firm is able, because it is literally custom-made. In
many cases, skilled or specialised staff make products of very high quality, or which
have individual character that might have less appeal if they were mass-produced.
Job production is a relatively expensive process because it requires specialised and
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skilled staff who concentrate on the individual job or project. It is therefore labour
intensive, although some projects such as the cruise liner may also need a lot of
expensive capital equipment.
Small businesses that are built on the skills of the owner, such as a window cleaneror a hairdresser, use job production techniques.
Batch production
As the name suggests, products are produced in small or large batches. This
process is useful to a firm that makes a number of different variations of basically
similar products. Examples would include; a bakery, a car exhaust pipe factory or atoothpaste manufacturer.
If the sandwich shop mentioned above wanted to speed up production, instead of
making sandwiches to order, it might be able to benefit by making the days
sandwiches in batches of all the different types and have them available for sale,
pre-packed.
A toothpaste manufacturer will set its weekly batches of production of each product
according to the orders from the supermarkets and wholesalers. The samemachinery is used for each product but the ingredients, packaging an/or size is
changed for each batch as required. It is crucial that the machinery can be quickly
cleaned and re-configured for each new batch to minimise unproductive time.
In a factory that uses flow production (see below), it is quite common for component
parts to be made in batches enough for a weeks production.
Flow production
This is a production line method, where product is continuously produced, flowing
from one stage of production to the next. Workers and, increasingly robots, carry out
individual repetitive tasks aiming to work as quickly as possible without loss of
quality. This is the method pioneered by Henry Ford for his Model T car, and the
efficiencies he gained enabled him to produce large numbers of cars at low cost. Any
product made in high volumes will almost certainly be made on a flow production
line.
This approach to production has close links with FW Taylor and his Scientific schoolof management Taylors motivational theories were all about creating the
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workplace and forms of reward to maximise efficiency. This in turn led to very boring
work and contributed to industrial unrest over the years where workers interests
were overlooked.
More modern, lean production techniques have at least partly recognised the factthat this type of work can be extremely boring, and ideas such as cell production and
quality circles can help improve the workplace as workers become multi-skilled, take
more responsibility for quality and can contribute their ideas for improvements.
Flow production systems are typically capital intensive and it is important to keep
them running smoothly with high levels of capacity utilisation, so that these high
overhead costs are spread over as many units as possible.
Once set up properly, flow production lines can in some cases produce millions of
consistently high quality products.
Cell production
This is a form of flow production in which the line is separated into a number of
sections, each looked after by a group of workers called a cell. Cells take
responsibility for work in their area, such as quality, job rotation, training and so on.
See notes on Lean Production for more detailed discussion of Cell Production.
PLANT LOCATION
Selecting the location of a facility is of strategic importance for any organization as it
acts as the basis for determining the production technology and cost structure. For
example, a manufacturing facility that is located in a less developed country will use a
labor-intensive process, to cash in on the low cost labor and will have a different cost
structure than the one located in a developed country.
In the case of a developed country, the cost of labor will be high because the
manufacturing process will be more capital intensive. Second, location decisions require
huge financial investments and are not easily reversible in the short term. Third, the
location of the facility affects the company's ability to serve customers quickly and
conveniently. Major factors that influence plant location decisions are:
Market proximity.
Integration with other parts of the organization.
Availability of labor and skills.
Availability of amenities.
Availability of transport.
Availability of inputs.
Availability of services. Suitability of land and climate.
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Regional regulations.
Room for expansion.
Safety requirements.
Site Cost.
Political, Cultural and Economic Situation.
Regional taxes, special grants and import/export barriers.
Major functions of production planning and control
A ll of the four basic phases of control of manufacture are easily identified in
production planning and control. The plan for the processing of materials
through the plant is established by the functions of process planning, loading,and scheduling. The function of dispatching puts the plan into effect; that is,
operations are started in accordance with the plant. Actual performance is then
compared to the planned performance, and, when required, corrective action is
taken. In some instances re-planning is necessary to ensure the effective
utilization of the manufacturing facilities and personnel. Let us examine more
closely each of these functions.
Major Functions of Production Planning and Control:
o Loading
o Scheduling
o Combining Functions
o Dispatching
o Reporting or Follow up
o Corrective Action
o Re-planning
LESSON 8
PRODUCTION PLANNING AND
CONTROL
Abha Kumar
STRUCTURE
8.0 Introduction
8.1 Objectives
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8.2 Production management
8.3 Product design
8.4 Design of production system
8.4.1 Types of production system
8.5 Manufacturing process
8.5.1 Types of manufacturing process
8.5.2 Factors affecting the choice of manufacturing process
8.6 Production planning and control
8.6.1 Benefits to small entrepreneur
8.6.2 Steps of production planning and control
8.7 Summary
8.8 Glossary
8.9 Self-Assessment Questions
8.10 Further Readings
8.0 INTRODUCTION
After taking decisions about the type of business, its location, layout etc. the
entrepreneur steps into the shoe of production manager and attempts to apply
managerial principles to the production function in an enterprise.
Production is a process whereby raw material is converted into semi finished
products and thereby adds to the value of utility of products, which can be
measured as the difference between the value of inputs and value of outputs.
Production function encompasses the activities of procurement, allocation and
utilization of resources. The main objective of production function is to produce
the goods and services demanded by the customers in the most efficient and
economical way. Therefore efficient management of the production function is of
utmost importance in order to achieve this objective. 115
8.1 OBJECTIVES
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After studying this lesson, you should be able to
Describe the production function and its component
Define production management
Analyze various factors, which are crucial for designing the production
Explain the design of production system and manufacturing process
List out the factors influencing the choice of production process
Discuss the benefits, which a small entrepreneur can reap by having
properly designed production planning, and control system
8.2 PRODUCTION MANAGEMENT
Production system is a system whose function is to convert a set of inputs into a
set of desired outputs. Production system is depicted under with help of chart
Figure 8.1: Production System
Production management involves the managerial decisions regarding design of
the product and design of the production system i.e. determination of production
processes and production planning and control.
8.3 PRODUCT DESIGN
Product design is a strategic decision as the image and profit earning capacity of a
small firm depends largely on product design. Once the product to be produced is
decided by the entrepreneur the next step is to prepare its design. Product design
Inputs Conversion
Process
Outputs
Land
Building
machines
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labour capital
management
material
other
Goods
services
Control 116
consists of form and function. The form designing includes decisions regarding its
shape, size, color and appearance of the product. The functional design involves
the working conditions of the product. Once a product is designed, it prevails for a
long time therefore various factors are to be considered before designing it. These
factors are listed below: -
(a) Standardization
(b) Reliability
(c) Maintainability
(d) Servicing
(e) Reproducibility
(f) Sustainability
(g) Product simplification
(h) Quality Commensuration with cost
(i) Product value
(j) Consumer quality
(k) Needs and tastes of consumers.
Above all, the product design should be dictated by the market demand. It is an
important decision and therefore the entrepreneur should pay due effort, time,
energy and attention in order to get the best results.
8.4 DESIGN OF PRODUCTION SYSTEM
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Production system is the framework within which the production activities of an
enterprise take place. Manufacturing process is the conversion process through
which inputs are converted into outputs. An appropriate designing of production
system ensures the coordination of various production operations. There is no
single pattern of production system which is universally applicable to all types of
production system varies from one enterprise to another.
8.4.1 TYPES OF PRODUCTION SYSTEM
Broadly one can think of three types of production systems which are mentioned
here under: -
(a) Continuous production
(b) Job or unit production
(c) Intermittent production
(a) Continuous production: - It refers to the production of standardized
products with a standard set of process and operation sequence in anticipation of
demand. It is also known as mass flow production or assembly line production.
This system ensures less work in process inventory and high product quality but
involves large investment in machinery and equipment. The system is suitable in 117
plants involving large volume and small variety of output
e.g. oil refineries reform
cement manufacturing etc.
(b) Job or Unit production: - It involves production as per customer's
specification each batch or order consists of a small lot of identical products and
is different from other batches. The system requires comparatively smaller
investment in machines and equipment. It is flexible and can be adapted to
changes in product design and order size without much inconvenience. This
system is most suitable where heterogeneous products are produced against
specific orders.
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(c) Intermittent Production: Under this system the goods are produced partly
for inventory and partly for customer's orders. E.g. components are made for
inventory but they are combined differently for different customers. . Automobile
plants, printing presses, electrical goods plant are examples of this type of
manufacturing.
8.5 MANUFACTURING PROCESS
The nature of the process of production required by these three different types of
production system are distinct and require different conditions for their working.
Selection of manufacturing process is also a strategic decision as changes in the
same are costly. Therefore the manufacturing process is selected at the stage of
planning a business venture. It should meet the basic two objectives i.e. to meet
the specification of the final product and to be cost effective.
8.5.1 TYPES OF MANUFACTURING PROCESS
The manufacturing process is classified into four types.
(i) Jobbing production
(ii) Batch production
(iii) Mass or flow production
(iv) Process Production
(i) Jobbing Production: - Herein one or few units of the products are produced as
per the requirement and specification of the customer. Production is to meet the
delivery schedule and costs are fixed prior to the contract.
(ii) Batch Production: - In this, limited quantities of each of the different types of
products are manufactured on same set of machines. Different products are
produced separately one after the other. 118
(iii) Mass or flow production: Under this, the production run is conducted on a set
of machines arranged according to the sequence of operations. A huge quantity of
same product is manufactured at a time and is stocked for sale. Different product
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will require different manufacturing lines. Since one line can produce only one
type of product, this process is also called as line flow.
(iv) Process Production: Under this, the production run is conducted for an
indefinite period.
8.5.2 FACTORS AFFECTING THE CHOICE OF
MANUFACTURING PROCESS
Following factors need to be considered before making a choice of manufacturing
process.
a) Effect of volume/variety: This is one of the major considerations in selection of
manufacturing process. When the volume is low and variety is high, intermittent
process is most suitable and with increase in volume and reduction in variety
continuous process become suitable. The following figure indicates the choice of
process as a function of repetitiveness. Degree of repetitiveness is determined by
dividing volume of goods by variety.
One
Figure 8.2: Types of Production Processes
b) Capacity of the plant: Projected sales volume is the key factor to make a choice
between batch and line process. In case of line process, fixed costs are
substantially higher than variable costs. The reverse is true for batch process thus
Jobbing
Batching
Line
Process
Degree of
repetitiveness
Quantity
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Many 119
at low volume it would be cheaper to install and maintain a batch process and line
process becomes economical at higher volumes.
c) Lead time: - The continuous process normally yields faster deliveries as
compared to batch process. Therefore lead-time and level of competition certainly
influence the choice of production process.
d) Flexibility and Efficiency: - The manufacturing process needs to be flexible
enough to adapt contemplated changes and volume of production should be large
enough to lower costs.
Hence it is very important for entrepreneur to consider all above mentioned
factors before taking a decision regarding the type of manufacturing process to be
adopted as for as SSI are concerned they usually adopt batch processes due to low
investment.
8.6 PRODUCTION PLANNING AND CONTROL
Once the entrepreneur has taken the decisions regarding the product design and
production processes and system, his next task is to take steps for production
planning and control, as this function is essentially required for efficient and
economical production. One of the major problems of small scale enterprises is
that of low productivity small scale industries can utilise natural resources, which
are otherwise lying.
Small scale sector can play an important role, similar to the one played by small
scale industries in other developed countries.
Planned production is an important feature of the small industry. The small
entrepreneur possessing the ability to look ahead, organize and coordinate and
having plenty of driving force and capacity to lead and ability to supervise and
coordinate work and simulates his associates by means of a programme of human
relation and organization of employees, he would be able to get the best out of his
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small industrial unit.
Gorden and Carson observe production; planning and control involve generally
the organization and planning of manufacturing process. Especially it consists of
the planning of routing, scheduling, dispatching inspection, and coordination,
control of materials, methods machines, tools and operating times. The ultimate
objective is the organization of the supply and movement of materials and labour,
machines utilization and related activities, in order to bring about the desired
manufacturing results in terms of quality, quantity, time and place. 120
Production planning without production control is like a bank without a bank
manager, planning initiates action while control is an adjusting process, providing
corrective measures for planned development. Production control regulates and
stimulates the orderly how of materials in the manufacturing process from the
beginning to the end.
8.6.1 BENEFITS TO SMALL ENTREPRENEUR
Production planning and control can facilitate the small entrepreneur in the
following ways
(1) Optimum Utilisation of Capacity:
With the help of Production Planning and Control [PPC] the entrepreneur can
schedule his tasks and production runs and thereby ensure that his productive
capacity does not remain idle and there is no undue queuing up of tasks via proper
allocation of tasks to the production facilities. No order goes unattended and no
machine remains idle.
(2) Inventory control:
Proper PPC will help the entrepreneur to resort to just- in- time systems and
thereby reduce the overall inventory. It will enable him to ensure that the right
supplies are available at the right time.
(3) Economy in production time:
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PPC will help the entrepreneur to reduce the cycle time and increase the turnover
via proper scheduling.
(4) Ensure quality:
A good PPC will provide for adherence to the quality standards so that quality of
output is ensured.
To sum up we may say that PPC is of immense value to the entrepreneur in
capacity utilization and inventory control. More importantly it improves his
response time and quality. As such effective PPC contributes to time, quality and
cost parameters of entrepreneurial success.
121
8.6.2 STEPS OF PRODUCTION PLANNING AND
CONTROL
Production Planning and Control (PPC) is a process that comprises the
performance of some critical; functions on either side, viz., planning as well as
control. See figure 8.3.
Figure 8.3: PPC Process
Production planning: Production planning may be defined as the technique of
foreseeing every step in a long series of separate operations, each step to be taken
at the right time and in the right place and each operation to be performed in
maximum efficiency. It helps entrepreneur to work out the quantity of material
manpower, machine and money requires for producing predetermined level of
output in given period of time.
Routing: Under this, the operations, their path and sequence are established. To
perform these operations the proper class of machines and personnel required are
also worked out. The main aim of routing is to determine the best and cheapest
Production Planning and control
Production Planning Production Control
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Planning
Routing
Scheduling
Loading
Dispatching
Following up
Inspection
Corrective 122
sequence of operations and to ensure that this sequence is strictly followed. In
small enterprises, this job is usually done by entrepreneur himself in a rather
adhoc manner. Routing procedure involves following different activities.
(1) An analysis of the article to determine what to make and what to buy.
(2) To determine the quality and type of material
(3) Determining the manufacturing operations and their sequence.
(4) A determination of lot sizes
(5) Determination of scrap factors
(6) An analysis of cost of the article
(7) Organization of production control forms.
Scheduling: It means working out of time that should be required to perform each
operation and also the time necessary to perform the entire series as routed,
making allowances for all factors concerned. It mainly concerns with time
element and priorities of a job. The pattern of scheduling differs from one job to
another which is explained as below:
Production schedule: The main aim is to schedule that amount of work which
can easily be handled by plant and equipment without interference. Its not
independent decision as it takes into account following factors.
(1) Physical plant facilities of the type required to process the material being
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scheduled.
(2) Personnel who possess the desired skills and experience to operate the
equipment and perform the type of work involved.
(3) Necessary materials and purchased parts.
Master Schedule: Scheduling usually starts with preparation of master schedule
which is weekly or monthly break-down of the production requirement for each
product for a definite time period, by having this as a running record of total
production requirements the entrepreneur is in better position to shift the
production from one product to another as per the changed production
requirements. This forms a base for all subsequent scheduling acclivities. A
master schedule is followed by operator schedule which fixes total time required
to do a piece of work with a given machine or which shows the time required to
do each detailed operation of a given job with a given machine or process.
Manufacturing schedule: It is prepared on the basis of type of manufacturing
process involved. It is very useful where single or few products are manufactured
repeatedly at regular intervals. Thus it would show the required quality of each
product and sequence in which the same to be operated
Scheduling of Job order manufacturing: Scheduling acquires greater
importance in job order manufacturing. This will enable the speedy execution of
job at each center point. 123
As far as small scale industry is concerned scheduling is of utmost importance as
it brings out efficiency in the operations and s reduces cost price. The small
entrepreneur should maintain four types of schedules to have a close scrutiny of
all stages namely an enquiry schedule, a production schedule, a shop schedule and
an arrears schedule out of above four, a shop schedule is the most important most
suited to the needs of small scale industry as it enables a foreman to see at a
glance.
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1. The total load on any section
2. The operational sequence
3. The stage, which any job has reached.
Loading: The next step is the execution of the schedule plan as per the route
chalked out it includes the assignment of the work to the operators at their
machines or work places. So loading determines who will do the work as routing
determines where and scheduling determines when it shall be done. Gantt Charts
are most commonly used in small industries in order to determine the existing
load and also to foresee how fast a job can be done. The usefulness of their
technique lies in the fact that they compare what has been done and what ought to
have been done.
Most of a small scale enterprise fail due to non-adherence to delivery schedules
therefore they can be successful if they have ability to meet delivery order in time
which no doubt depends upon production of quality goods in right time. It makes
all the more important for entrepreneur to judge ahead of time what should be
done, where and when thus to leave nothing to chance once the work has begun.
Production control: Production control is the process of planning production in
advance of operations, establishing the extract route of each individual item part
or assembly, setting, starting and finishing for each important item, assembly or
the finishing production and releasing the necessary orders as well as initiating the
necessary follow-up to have the smooth function of the enterprise. The production
control is of complicated nature in small industries. The production planning and
control department can function at its best in small scale unit only when the work
manager, the purchase manager, the personnel manager and the financial
controller assist in planning production activities. The production controller
directly reports to the works manager but in small scale unit, all the three
functions namely material control, planning and control are often performed by
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the entrepreneur himself production control starts with dispatching and ends up
with corrective actions.
Dispatching: Dispatching involves issue of production orders for starting the
operations. Necessary authority and conformation is given for:
1. Movement of materials to different workstations.
2. Movement of tools and fixtures necessary for each operation.
3. Beginning of work on each operation.
4. Recording of time and cost involved in each operation. 124
5. Movement of work from one operation to another in accordance with the
route sheet.
6. Inspecting or supervision of work
Dispatching is an important step as it translates production plans into production.
Follow up: Every production programme involves determination of the progress
of work, removing bottlenecks in the flow of work and ensuring that the
productive operations are taking place in accordance with the plans. It spots
delays or deviations from the production plans. It helps to reveal detects in routing
and scheduling, misunderstanding of orders and instruction, under loading or
overloading of work etc. All problems or deviations are investigated and remedial
measurer are undertaken to ensure the completion of work by the planned date.
Inspection: This is mainly to ensure the quality of goods. It can be required as
effective agency of production control.
Corrective measures: Corrective action may involve any of those activities of
adjusting the route, rescheduling of work changing the workloads, repairs and
maintenance of machinery or equipment, control over inventories of the cause of
deviation is the poor performance of the employees. Certain personnel decisions
like training, transfer, demotion etc. may have to be taken. Alternate methods may
be suggested to handle peak loads.
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CHECK YOUR PROGRESS
Activity 1: Circle the key words, which do not belong to this lesson.
Dispatching Plant Layout Inspection
Productivity Index Loading Marketing Mix
Activity 2: Match the following
Routing Working out of time that should be required to perform each
operation
Scheduling To assign the work to the operations at machines or work place
Loading To determine the best and cheapest sequence of operations
Activity 3: Explain the meaning of following key words in your own words
(a) Production planning
(b) Production control
(c) Routing
(d) Scheduling 125
8.7 SUMMARY
Small-scale industries have a challenge to manufacture products at economical
prices. They need to embrace management principles surrounding production
processes, which are effective for the products manufactured by them. An upfront
planning and study of the critical factors of the manufacturing processes will not
only help the small scale entrepreneurs to understand the steps they need to take
in selecting the most appropriate manufacturing process but also help them
identify areas of risk so that necessary control procedures are put in place. This
will eventually help the small entrepreneur to eliminate the wastages and increase
the production, productivity and profits.
8.8 GLOSSARY
Inventory Stock of raw material, WIP or finished goods
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Lead time Time lag between placing an order or getting deliveries
Personnel Team of persons who work for organization
8.9 SELF-ASSESSMENT QUESTIONS
1. Discuss with examples various manufacturing processes?
2. What factors affect the choice of manufacturing process?
3. Write short notes on
a. Production planning
b. Relationship between production planning and control
4. What do you understand by production planning and control? Discuss its
elements in brief.
5. State the requirements for an effective system of production planning and
control?
6. What benefits can small scale enterprises can derive by installing an effective
system of production planning and control?
Definition of MRP: "a time phased priority planningtechnique that calculates material requirements andschedules supply to meet changing demand acrossall products and parts in one or more plants"
MRP is used to derive the master schedule from the
forecast, the sales order or both. The masterschedule is the foundation of all the operations, withMRP handling all the ordering and scheduling of theinventory (raw materials, components, etc). One bigadvantage of MRP is that it analyses and plans yourfuture needs for all dependant demand items. If anitem is not needed, you don't plan for it any more.
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Components of an MRP system
The bills of material in tabular form show theproduct structure, which basically lists all thedifferent component parts and sub-assemblies thatmake up product, showing the lead times andrelationships between each components.
The BOM diagrams show the same information asthe bills of material but are represented in adiagrammatical sense.
The MRP calculations are derived from the bills ofmaterial and the BOM diagrams. This tabular datarepresents the quantity of each component of thefinal product that is required and the current periodof time that it is required for.
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The MRP system outputs a variety of informationthat can be used by the company, both for theplanning side and the management side of the
factory operations. These outputs include orderrelease notices for the placement of orders that mayhave been planned by the MRP simulator system.
The capacity and master schedule need to bemanaged correctly to help reduce the workload andmaximise the effectiveness. Management has a bigresponsibility in this and how they choose to plan
ahead and how effective they are, will in turn effecttheir decisions on the right approach and howeffective the MRP system is. If certain areas becomestressed and overloaded, jobs may end up beingpushed back past their due date and end up beinglate. Planning is very important to help the companybecome more efficient, reduce costs and increase
profits.
Information systems are a competitive tool whenrunning along side traditional stock controlsystems. A computerised MRP system is reliant onthe fact that the demand for low-level components isbrought about from the production of an end
product of which the production level is planned.The system itself will make it easy to put togetherthe production schedule saving vast amount ofmoney that would otherwise be spent on labour timeto do the same activity.
MRP does not take into account the level of capacityof what can or cannot be handled by the shop floor.
MRP is best used in manufacturing companies with
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products and techniques achieve business needs within the
standards set by the market and the regulatory standards bodies.
4.*With the Warehouse and Distribution Manager, develop, direct
and control the warehouse and distribution activities toensure the efficient and economical utilisation of facilities
for storing and distributing the finished goods.
5.*Wtih the Manufacturing Services Manager, develop, direct the
implementation of manufacturing sustainability strategies/
actions plans and continuous improvement programs.
Reporting the Operation/ Production Manager are
*Planning/Production Manager, R & D Engineering Manager,
Manufacturing Services Manager, Factory Services Manager,
Warehousing/ Distribution Manager, &Demand Planning Manager.
SCOPE.
Primary Objective.
*Direct and Control a variety of divergent functional business
activities, including Manufacturing, R&D Engineering, Production,
Logistics, Demand Planning, Manufacturing Services, Factory
Services, to achieve optimum Productivity, Profitability andEffective use of the OPERATION's assets and human resources,
within guidelines set by the Managing Director. Direct planning
activities and provide leadership and guidance on the OPERATION.
SPECIFIC ACCOUNTABILITIES
*Manage and Control the logistics function to ensure supplies of
raw materials, finished goods, parts and accessories are
available within required time frames and budgets.
*With the Planning & Production Manager, develop, direct the
implementation of production business strategies and activities
to enable the production to achieve output and quality objectives.
*With the R&D Engineering Manager, develop, direct the
the research & development/ engineering activities to ensure
products and techniques achieve business needs within the
standards set by the market and the regulatory standards bodies.
*With the Demand Planning Manager, develop, direct and control
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the supply activities to maximise the quality and reliability
of raw materials, parts, accessories and finished goods.
*With the Warehouse and Distribution Manager, develop, direct
and control the warehouse and distribution activities toensure the efficient and economical utilisation of facilities
for storing and distributing the finished goods.
*Wtih the Manufacturing Services Manager, develop, direct the
implementation of manufacturing sustainability strategies/
actions plans and continuous improvement programs.
*Wtih the Factory Services Manager, develop, direct the
service operations and the factory warehousing management.
MAJOR RESPONSIBILITIES.
*Responsible for directing the operation/ PRODUCTION activities to ensure
the current and future plans of the organization are met.
*Report to the Managing Director on major PRODUCTION /operational issues
and results.
*Participates in group corporate planning and budgeting workshops.
*Responsible for the implementation of Demand Flow
Technology and Six Sigma systems.
*Responsible for establishing PRODUCTION / operation Organization
Structure / Management Process.
*Responsible for the Implementation of Policies / Procedures
throughout the PRODUCTION / Operation Department.
*Responsible for recruitment /selection/orientation/training of senior
personnel of the PRODUCTION / operation department.
*Responsible for purchase of Capital goods/ PRODUCTION Operation equipments.
*Responsible for maintenance of equipments.
*Responsible for PRODUCTION /Operation Department Planning/ Budgeting.
*Responsible for Cost Control Programs.
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*Responsible for O H & S Implementation.
*Responsible for Industrial Relations/ Union Negotiation.
*Responsible for Security management.
*Responsible for Building Maintenance.
*Responsible for People Management.
Ensure that personnel under his control have been
inducted into COMPANY 's OHS induction program.
*Take reasonable care for the health, safety and welfare of
themselves and others whilst at work.
How to conduct a time studyFive steps for analyzing outpatient flow in your practice.
Jan 1, 2010
VETERINARY ECONOMICS
Consultant Pamela Stevenson, CVPM, says a time study is a great tool for analyzingoutpatient flow in your practice. "It's one of the quickest and easiest ways to get a grip onan undefined problem," she says. Here's how to do it:
1. Inform the team. Employees need to know that this isn't a pointless exercise; it's a wayto identify problems that keep your practice from offering the best service. What's more,team members' role in recording the data is crucialwithout accurate information, you can't
pinpoint the best solutions.
2. Create time sheets. Set up a system for recording each client's reason for visiting thepractice, the veterinarian he or she saw, and the time at different stages of the visit.
3. Conduct the study. During a two-week period, record the following for all clients whovisit for practice services: the time of arrival, the time they enter an exam room, the time adoctor enters that exam room, the time the doctor leaves, and the time the client checksout. Create a sheet that travels with the client for team members to record these times.
4. Analyze the results. Once the study is complete, enter the data in an Excel
spreadsheet, noting any problematic client wait times.
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5. Develop a plan. Once you see what (and who) the problems are, gather the teamtogether to brainstorm solutions. Develop target goals for your next time study in sixmonths' time.
FIXED ORDER INTERVAL SYSTEM OR P-SYSTEM
Inventory position is monitored at discrete point in time Once an order is placed at time t, another order can not be placed until (t + T), andthesecond order will not be filled until the lead time period has elapsed, at (t + T + L) Thus safety stock protection is needed for the lead-time L plus the order interval T In the fixed order size system, safety stock is needed only for the lead-time period,because the inventory position is monitored with each transaction In the fixed order size system, a higher than normal demand causes a shorter timebetween orders whereas in the fixed order interval system, the result would be alargerorder size
Predetermined inventory level (E)E = S + RT + LRWhere S is the safety stock considering demand variation during (T + L)period and (RT + LR) is the average demand during (T + L) period The orderinterval (T) 20 = =HR
FIXED ORDER QUANTITY SYSTEM OR Q-SYSTEMSafety stock is needed to protect against a stockout after the reorder point isreachedand prior to receipt of an order This period is usually called lead-timeThe reorder point B is composed of the mean lead-time demand plus safety stock Average inventory level on hand just before the receipt of a replenishment order isthesafety stock.Over many cycles, the inventory level will sometimes be more than the safetystock and sometimes less, but it should average to the safety stock Larger the order quantity, fewer the annual orders, which means the feweropportunities for stockout to occur
Safety stocks are dependent on stockout cost or service level, holding cost,demandvariation and lead-time variation Working stock quantity is determined before considering safety stock In the order quantity formulations, it is assumed that the order quantity can bedetermined by an economic balance of the relevant cost, and that it is independentofthe reorder point
EOI in years
Source(s):http://nitc.ac.in/nitc/bulletin/files/opt_25611_1877152227.pdf
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