ACS 2916 Business Application Systems

LECTURE OUTLINE 7a

prepared by E. Kaluzniacky

INTEGRATED PRODUCTION PROCESSES

Chapter 15 p 581, then skip to. 586; major DFD is on p. 587

we now look at an overview based presentation on main stages in production and then realize how various integrated systems can be useful in this context

we start with the design of the product

1.0Design Product and Production Processes

-IPP begins with design, consistent with the value chain concept

-Activity-based costing can be used to estimate future production costs

-CAD / CAE systems automate design process

- application of computer technology that automates the product design process, including geometric modeling, materials stress analysis, drafting, storing product specifications, mechanical simulation of a product’s performance

-the designs that are produced influence detailed production schedules as well as electronic control of production machines later on

-several key data stores p. 587 - 89

-Bill of materials:

  • listing of all subassemblies, parts and raw materials that go into one unit of product
  • basis for ordering raw materials later

-Parts Master

  • This has the detailed specifications for all raw materials that will be in raw materials inventory

-Routing Master

  • shows the operations necessary to complete a subassembly or finished good and the sequenceof these operations
  • includes machining tolerances, tools required
  • time allowance for each operation
  • CAPP (computer-aided process planning) is often used in developing the routing master for new products; it uses machining requirements and machine capabilities information

-Work Centre Master

  • Describes each work centre: machines available, capacity of a machine, maintenance needs, labour needs to operate machine, etc.
  • Work centre is a group of similar workstations (where a worker performs the job)

2.0Generate Master Production Schedule

-we know what products we need to produce and what resources each product needs

-however, we must know how many of each products to produce and when to produce them

-MPS is a statement of specific production goals developed from

i) forecasts of demand, ii)actual sales orders and / or iii) inventory information

-MPS describes specific items to be manufactured, quantities to be produced and the production timetable [no of items to be produced in a week]

-in what ways is this specific?; in what ways is it general?

-Based on MPS, more detailed schedules for ordering raw materials and scheduling work center operations are developed later on.

-**MPS is based on:

  • 1. actual orders from customers
  • 2. estimated future orders (based on demand forecasting models applied to data from enterprise and CRM systems)
  • 3. data from inventory system for finished goods
  • Global inventory management – inventory needs and production capabilities are matched across the entire global enterprise

3.0Determine Needs for Materials

-mrp: material requirements planning

  • produce time-phased order requirements schedule for raw materials and subassemblies p. 592
  • when should purchase orders and manufacturing orders be released
  • work backward from date production is to begin
  • use data from enterprise system database
  • Bill of materials: parts and quantities required for a product
  • Parts master data: part no. , order policy, safety stock
  • Raw materials and WIP inventories
  • Open (existing) purchase orders for materials

-see example on [p. 592-93] re: exploding bill of materials

-in B2B: actual orders for raw materials may be triggered by vendor systems that monitor MPS information and ship orders at the appropriate time (vendor managed inventory)

4.0Develop Detailed Production Instructions

-apart from materials, we need machinery and labour and a schedule for these as applied to the raw materials

-need detailed instructions for when goods will be processed through each work center

-capacity requirements planning (crp) :

  • mrp is for materials and crp for labour and machinery
  • crp: uses
  • information from MPS
  • time-phased order requirements schedule

to develop detailed machine and labour utilization schedules

based on available capacity of persons and machines

crp then may adjust the MPS or time phased order req’s if capacity

is lacking

then, crp assigns targeted start / completion dates to workstation operations and releases manufacturing orders and move tickets to the factory

-manufacturing orders give authority to manufacture a specific product and describe the

  • material
  • labour
  • and machine requirements for the job

-manufacturing orders are usually accompanied by move tickets that record movement of a job from one work center to another; such a ticket would contain department, machine, operator and time of completion and check boxes for inspection; they may contain bar code id’s

-also, raw materials requisitions are sent to the inventory system (so this is not a purchase requisition); such a requisition identifies the type and quantity of materials to be withdrawn from the storeroom

-crp uses the following from the ERP system:

  • routing master: just as BOM shows what materials are necessary for a unit of product, the routing master shows labour and machine requirements
  • rm shows the sequence of operations needed to manufacture an item and the standard time allowance (labour and machine) for each operation
  • hours available each day / week by work centre
  • what is now going on at each work centre (MOs now at wc, anticipated MOs, backlogs, actual hours ahead of or behind schedule)

Summarizing this:

Manufacturing Resource Planning(MRP) [MRPII]: mrp, crp, and the process of planning cash flows to accommodate needs generated by the production schedule; it is involved in planning all manufacturing resources, including material, machines, labour and financial capital

MRP [MRPII] is an integrated decision support system for planning, executing and controlling manufacturing operations.p. 596

5.0Record manufacturing events

To appreciate this process, we first get insight on manufacturing automation

CAM – computer-aided manufacturing: the application of computer and communications technology to improve productivity by linking Computer Numerical Control machines, monitoring production and providing automatic feedback to control operations

CAM systems can integrate with ERP systems to incorporate changes made by design engineers into the production processes.

Collecting manufacturing information is highly automated; shop floor control systems monitor and record status of manufacturing orders and workstations

Information is also collected for quality control and cost accounting purposes

Information is also collected about the time worked by labourers on each production task.

When the final operation in the routing sequence is finished, the Manufacturing Order is removed from the open MO data and the inventory system is told to add quantities and costs to its finished goods records.

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