OM0017 –Advanced Production Planning and Control - summer/spring 2012

Summer 2011- May drive

Master of Business Administration - MBA Semester IV

OM0017 –Advanced Production Planning and Control - 4 Credits

(Book ID: B1342)

Assignment - Set- 1 (60 Marks)

Note: Each Question carries 10 marks. Answer all the questions.

Q1. Explain briefly the main tasks of dispatching, inspecting, expediting, evaluating and

controlling inventory and so on by production controls department.

Tasks and control activities of production control

The Control stage functions/tasks are:

· Dispatching.

· Expediting.

· Inspecting.

· Evaluating.

· Controlling inventories, controlling scrap and analysis of work progress and controlling

transportation used for production activities.

Dispatching: Dispatching involves setting production activities in motion by releasing

work orders. These work orders are invariably accompanied by process/instruction sheets.

In other words, the process of dispatching authorises the start of the production operations.

Dispatching also involves collecting and moving the materials from stores, collecting and

issuing tools, fixtures, drawings and specification sheets. It also includes route cards,

inspection schedules, and internal material handling to machines. In addition, it includes

the returning jigs, fixtures, moving special tools back to stores, and then moving the

accepted materials to the next stage of operation or to stores.

It is found that in large production units, centralised dispatching has more advantages as

compared to decentralised dispatching.

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Expediting or Progressing: Expediting is a tool, which works as an executive arm that

checks the progress of the work. Expediting is also a logical step after the dispatching

function. Expediting maintains and ensures the successful completion of the job. This

function has to keep a close liaison with scheduling, in order to provide efficient feedback

and prompt review of targets and schedules.

The Need for expediting arises because of the following reasons:

· Delay in supply of raw materials.

· Higher absenteeism of labour.

· Frequent changes in specifications and route cards.

· Changes required in delivery schedule.

· Breakdown of machines.

· Improper coordination and communications between the departments and so on.

Inspecting: Inspection is a major control function. Its findings and criticisms are of great

significance in the execution of current plans and in the future planning stages especially

when the limitation of processes, methods, and manpower is known. This is also essential

to improve production methods and cost implications of quality at the design stage. The

need for inspection arises due to the following reasons:

· Delay in supply of materials.

· Excessive absenteeism in any section.

· Changes in design specifications.

· Changes in delivery schedules.

· Machines under breakdown/periodical maintenance.

· Errors in design drawings and hence rejections/reworks.

Evaluating: Evaluating is the assessment of the performance effectiveness with the help of

a link between control and future planning process. A feedback mechanism here will help

in the long run, as the evaluated past experience will help to improve methods and

utilisation of facilities.

Controlling Inventories and Scrap, Analysing Work Progress: Other additional responsibilities for

the dependent functions like control of inventories, control of scrap, control of transportation and

so on are integrated with the Control section of the PPC. This is because many organisations feel

that this type of integrated control department is an essential link and will help achieve maximum

results.

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Q2. Explain briefly the functions of planning in “Facility Planning” for production

activities?

Q3. What are the merits and demerits of batch production? Briefly explain the salient

features of PPC for Job production.

Q4. How do you classify forecasts? Explain Time Series Methods.

Classification of Forecasting Methods

Q5. Explain inventory Management and Control. List the benefits of inventory control.

Inventory Management and Control

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Q6. Define deterministic model of inventory control. Explain how economic order quantity can be calculated by model 1.

Summer 2011- May drive

Master of Business Administration - MBA Semester IV

OM0017 –Advanced Production Planning and Control - 4 Credits

(Book ID: B1342)

Assignment - Set- 2 (60 Marks)

Note: Each Question carries 10 marks. Answer all the questions.

Q1. Write a note on: a) Lean Manufacturing,b) Agile Manufacturing, c) CIM

Lean Manufacturing

Lean manufacturing is an organised approach in identifying and eliminating waste through

continuous development of manufacturing the product at the demand of the customer. In

other words, lean manufacturing is a scheme that looks to produce a high level of output

with a minimum of inventory.

From the time when Henry Ford invented the assembly line, industrial trendsetters have

continuously focused on enhancement through a variety of different manufacturing

techniques and this is where the lean manufacturing was successful.

In the earlier days, lean manufacturing centres focused on placing small stocks of

inventory in planned locations around the assembly line, instead of a centralised

warehouse. These small stocks are known as kanban[2]. The usage of the kanban

considerably minimises waste and improves productivity on the factory floor.

In addition to removal of waste, lean manufacturing looks to provide the finest and

optimum quality with the help of a method where every part is tested and examined soon

after its manufacturing is done. In the process of testing, if there is any defect, the

manufacturing line stops the production in order to detect the problem or defect at the

earliest stage. There are a lot of similarities between lean manufacturing and the Total

Quality Management techniques. Both of these techniques provide authorisation to the

workers at the assembly line with the confidence that those close to the manufacturing

have superior knowledge on how the manufacturing or the production system should work.

Under the lean manufacturing technique, suppliers deliver small amounts of materials on a daily

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basis. In addition, the machines may not respond to their full capacity. As you already know, the

main objective of lean manufacturing is to eliminate waste, which means anything which does not

add value to the end product is eliminated. With reference to this, large inventories are seen as a

type of waste, which carry a huge cost. Another major focus under lean manufacturing is the

process of allowing the workers to make the manufacturing decisions at the lowest level possible.

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One more aspect, which is important to know, is that the supply chain management’s

partnership with suppliers matters a lot in lean manufacturing. This facilitates a swift flow

of parts and products to the retail shop floor.

Let us discuss about the implementation of lean manufacturing technique. Well, in order to

implement the lean manufacturing process, it is important that each employee or worker is

provided with significant training or has a required competency. After this training, implementing

the following steps will help in implementation of successful lean manufacturing.

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· Deciding which characteristics of lean manufacturing apply to your organisation and

prioritising according to your requirements and capabilities.

· Classifying your workers into groups according to similar training requirements.

· Recognising your production programs and making a matrix, or a chart.

· Making a decision, whether you will hire an external consultant or take the suggestions of

internal employees.

· Planning a time frame or listing according to work area or personnel.

· Setting up an immediate schedule and beginning the task according to the schedule.

Thus, it ends the discussion on lean manufacturing techniques.

Agile Manufacturing

In the previous section, we explained about lean manufacturing. Now, you will be

introduced to the agile manufacturing techniques, but first let us understand the term

Agility. Agility is defined as the capacity of changing quickly or adapting to change

quickly. The production technology used by the manufacturing units decides the capability

of designers, marketers and production personnel to share the common database of parts

and products. This is a major and one of the vital contributing factors, which a

manufacturer must posses in order to be an agile manufacturer.

Therefore, the agile manufacturing technique can be explained as the ability of surviving

and flourishing in a competitive atmosphere of constant and unpredictable change by

reacting swiftly and effectively to changing markets, driven by customer-designed

products, demands, and services.

The organisations or the companies, which have implemented agile manufacturing

techniques, always have a very strong bonding or network with the vendors, suppliers, and

other related companies. In addition, the companies also have a strong network with many

other supportive teams that work together with the same organisation with reference to the

manufacturing of a quality product. The organisation can retool facilities swiftly, discuss

upon new agreements with suppliers and other partners with reference to the changing

market, and take other initiative steps to fulfil customer demands. This means that the

organisation can increase manufacturing of products with a high consumer demand as well

as redesign products to respond to issues that have emerged in the open market.

As you all know, markets can change very swiftly, especially in the global economy. An

organisation, which cannot adapt swiftly to change, will find itself left behind, and once an

organisation starts to lose its market share, it can succumb to a complete loss rapidly. The primary

goal of agile manufacturing is to keep the company always ahead of the competition, so that

consumers think of that company first, which continues innovating and introducing new products.

The main reason behind this is the strong financial stability and a strong customer support base.

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In the case, where an organisation or a company plans to shift to agile manufacturing

technique, the companies can always take advantage of specialists, who provide solutions

to companies and who help in improving or converting the existing manufacturing

techniques into agile manufacturing. These specialists can offer a tailored solution with

reference to the type of sector that a company is involved in. The specialists make a

company to be competitive as quickly as possible with their tested agile manufacturing

techniques.

It will also be useful for you to know that there are some key issues in agile manufacturing.

The key issues in agile manufacturing are:

· The "I am a Horse" Syndrome.

· The Existing Culture of Manufacturing.

The “I am a Horse” syndrome: You must be aware of an old saying where it states that hanging a

sign on a cow which states "I am a horse" does not really make a cow, a horse. Similarly, there is

an absolute danger that agile manufacturing can be a victim to the unlucky tendency in

manufacturing circles to follow the trend and to re-label everything with a new fashionable name.

The danger is divided into two fold. First, it will offer agile manufacturing a bad reputation and

second, the management will only get a superficial understanding, which leaves them helpless to

those competitors that take agile manufacturing seriously.

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The existing culture of manufacturing: The most vital thing which will hold an

organisation or a company back from making a quantum leap forward to explore agile

manufacturing, is the traditions and the accepted beliefs and values of the organisations.

Without any doubt, the key success factor is the skill to dominate both the hard and soft

issues in change management. Nevertheless, if an organisation wants to achieve agility in

the manufacturing enterprises, then it should first try to completely understand the nature

of its existing values, traditions, and cultures. An organisation needs to realise this

understanding as there is a need to come to terms with the fact that much of what everyone

in an organisation have taken for granted probably no longer applies in the world of agile

manufacturing. Accomplishing this understanding is the first step in facing the pain with

the existing culture to the historically redundant ideas.

Computer Integrated Manufacturing

In this section, we will discuss about Computer Integrated Manufacturing (CIM).

Computer Integrated Manufacturing can be defined as the utilisation of computers in

management and control of manufacturing processes, such as cutting and forming

machines, automatically coordinating the operations of conveyor systems and riveting and

welding machines. In other words, it can be defined as a manufacturing approach that uses

computers to control the entire manufacturing process.

The CIM was promoted in the 1980’s by the machine tool manufacturers and the Society

for Manufacturing Industries (SME). Some of the procedures involved in the CIM are:

· Computer Aided Design (CAD).

· Computer Aided Manufacturing (CAM).

· Computer Aided Process Planning (CAPP).

· Computer Numerical Control Machine Tools (CNC).

· Flexible Machining Systems (FMS).

It is very important to know that the heart of Computer Integrated Manufacturing is the

Computer Aided Design (CAD) and Computer Aided Manufacturing (CAM).

Computer Aided Manufacturing (CAM) and Computer Aided Design (CAD) systems are very

important to an organisation, as they reduce the production or the manufacturing durations.

Computer Aided Manufacturing and Computer Aided Design is a high end integrating technology

tool between manufacturing and design. Computer Aided Design techniques make use of group

expertise to produce similar techniques for swift recovery, where the drawing boards are

replaced by electronic files. Computer Aided Design and Computer Aided Manufacturing

incorporated systems offer design, drafting, scheduling, and production capabilities. Computer

Aided Manufacturing offers the provision for instrument path cutters to take on the raw material

and Computer Aided Design offers electronic part images.

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The images or the computer graphics offered by the Computer Aided Design permits the

designers to produce electronic images. These images can be depicted in two dimensions,

or as a three dimensional (3D) solid component or assembly, which can be rotated as it is

viewed. The superior software programs can test and analyse designs before the production

of a prototype. Finite element analysis programs permits engineers to forecast the effects

of loading and stress points on a part.

When the designing of a part is complete, the created graphics can be used to program the

instrument path with the machine part. When incorporated with an NC postprocessor [3], the

NC program that can be used in a Computer Numerical Control Machine Tools (CNC)

machine is created. The designed graphics can also be used to produce or design fixtures

and tools. In addition, it can also be used for inspection by coordinate measuring machines.

It is observed that the more downstream use is made of Computer Aided Design, the more

time is saved in the overall process.

Process planning translates design information into the process steps and instructions to

efficiently and effectively manufacture product. As the design process is supported by

many computer-aided tools, computer-aided process planning (CAPP) has evolved to

simplify and improve process planning and achieve more effective use of manufacturing

resources.

The other important system is the Flexible Machining Systems (FMS). It is the additional

concept of cellular manufacturing and group technology concepts. Using incorporated

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Computer Aided Design and Computer Aided Manufacturing many parts can be

programmed and designed in half the time it would normally take at the time of actual

engineering task. The elements of a program can be downloaded to a Computer Numerical

Control Machine centre under the control of a Flexible Machining System’s host

computer. The Flexible Machining Systems host can program the Computer Numerical

Control Machine Tools and the parts necessary to execute the task.

Therefore, it is understood that computer integrated manufacturing can include different

combinations of the tools listed above.

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Q2. Differentiate between forward and backward scheduling. Explain automation and the

drawbacks associated with automation

Q3. Explain in brief about Priority Rules for Scheduling?

Following four jobs are at a machine with its due dates of delivery mentioned. Today

being 20th determine the critical ratio for each job and assign the priority ranking.

Job Due date Remaining processing time

P 26 8

Q 24 2

R 22 2

S 29 13

a) No of working days left =

Q4. Bring out the differences between productivity and flexibility. And is productivity compromised by introducing flexibility in the manufacturing process? Comment

Q5. Explain in brief the Goldratt’s “Theory of constraint” and the five focussed steps of

TOC recommended for solving the constraints/ problems.

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OM0017 –Advanced Production Planning and Control - summer/spring 2012