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Operations Management, 7E: Chapter 14 en15
1
Lecture Planning and Control 14 Enterprise Resource Planning (ERP) 15 Lean synchronization 16 Project Management (zie andere sheets) 17 Quality Management (zie andere sheets)
Hessel Visser NCOI Les 6 A
P 373
Operations Management, 7E: Chapter 14 en15
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14 Enterprise Resource Planning (ERP)
Lecture 6 Planning and Control
P 435
Operations Management, 7E: Chapter 14 en15
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Web-integrated Enterprise Resource Planning (Collaborative Commerce,
c-commerce)
Enterprise Resource
Planning (ERP)
Manufacturing Resource
Planning (MRPII)
Increasing integration of information systems
Incre
asin
g im
pact on the w
hole
supply
ne
two
rk
The development of ERP
Material
Requirements
Planning (MRP)
P 441
Operations Management, 7E: Chapter 14 en15
4
Customer
orders Master
production
schedule
Forecast
demand
Bill of
materials
Inventory
records
Purchase
orders
Materials
plans
Works
orders
Material
requirements
planning
Material requirements planning (MRP-1)
P 446
Operations Management, 7E: Chapter 14 en15
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Forecast element
of demand
Known orders
Total
demand
Time in future
Dem
an
d
Total future demand is made up of
known and forecast demand
Operations Management, 7E: Chapter 14 en15
6 Master production schedule (MPS)
Forecast
demand
R & D
demand
Promotion
requirements
etc.
Known
orders
Master
production
schedule
Sister plant
demand
Key
capacity
constraints
Spares
demand
Safety stock
requirements
Inventory
levels
P 441
Operations Management, 7E: Chapter 14 en15
7
ERP structure for the sandwich company
Common
database Purchasing
system
Plant and
Facilities
Management
Distribution
planning
MRP II
system
Recipe
Management
System (RMS)
Accounts
and
invoicing
system
Sales and
Marketing
system
Order
validation
EDI orders
from
customers
To
Customers
To
Customers
From
Customers
To
Distribution
company
To
Suppliers
P 452
Operations Management, 7E: Chapter 14 en15
8 Product structure for a simple board game
Box lid 10077
Box base assembly
10089
‘Quest’ cards 10023
Character set
10045
Dice 10067
TV label 10062
Game board 10033
Rules 10056
Inner tray
23988
TV label 10062
Box base
20427
Board game
00289
Level 2
Level 1
Level 0
P 458
Why do we use a Level code?
Operations Management, 7E: Chapter 14 en15
10
‘The key principle of lean operations is relatively
straightforward to understand: it means moving
towards the elimination of all waste in order to
develop an operation that is faster and more
dependable, produces higher quality products
and services and, above all, operates at low cost.’
Operations Management, 7E: Chapter 14 en15
11 Synonyms
continuous flow manufacture
high value-added manufacture
stockless production
low-inventory production
fast-throughput manufacturing
lean manufacturing
Toyota production system
short cycle time manufacturing Source: Corbis/Denis Balihouse
Operations Management, 7E: Chapter 14 en15
12
Traditional approach
JIT approach
stage A
orders
deliveries
orders
deliveries
JIT material flow
buffer
inventory stage B
buffer
inventory stage
C
stage A stage C stage B
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Operations Management, 7E: Chapter 14 en15
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WIP
Defective
materials
Rework Scrap
Downtime
productivity
problems
WIP
Defective
materials
Rework Scrap
Downtime
productivity
problems
Reduce the level
of inventory (water)
to reveal the
operations’ problems
The problem with inventory
P 468 (zie film HP)
Operations Management, 7E: Chapter 14 en15
14
JIT
approach
focus on producing
only when needed
fewer stoppages
low inventory so
problems are
exposed and
solved
no surplus
production goes
into inventory
lower capacity
utilization, but
Traditional
approach focus on high
capacity utilization
more stoppages
because of
problems
high inventory
means less chance
of problems being
exposed and solved
extra production
goes into inventory
because of continuing
stoppages at stages
more production
at each stage
JIT and capacity
utilization
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Operations Management, 7E: Chapter 14 en15
15
operation
movement
inspection
storage
Activities:
Waste (muda) Which of these symbols signify non-value-
adding activities?
influencing the throughput efficiency
Types of waste:
delay
over-production
waiting time
transport
process
inventory
motion
defective goods
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Operations Management, 7E: Chapter 14 en15
16 ‘Value stream’ map for an industrial
air-conditioning installation service
T/T = Task time
TTT = Total throughput time
V-A T = Value-added time
C/T = Cycle time
Survey Order Assemble Frame
Wait in
branch Wait for
assembly
Ship to
branch and
wait
Wait for
installers
Install
T/T = 0.5
Avail = 100%
C/T = 30
T/T = 0.5
Avail = 100%
C/T = 10
T/T = 5.0
Avail = 100%
C/T = 12.5
T/T = 0.75
Avail = 100%
C/T = 17
T/T = 0.75
Avail = 100%
C/T = 35
Cash
management
Completion
confirmation
Operations
planning
Job tracking confirmations
Sales
office Forecasts Invoice
status
30 mins
58 hrs
30 mins
96 hrs
5 hrs
48 hrs
60 mins
48 hrs
60 mins
TTT = 258 hrs
V-A T = 8 hrs
P 474
Operations Management, 7E: Chapter 14 en15
17
Using several small machines rather than one large
one allows simultaneous processing, is more robust
and is more flexible
P 476
easy to move (layout)
quick set-up
flexible scheduling options
cheaper tooling
fewer set-ups needed
planned maintenance easier
Small machines
Operations Management, 7E: Chapter 14 en15
18
1. Sort (Seiri) Eliminate what is not needed and keep what is
needed. 2. Straighten (Seiton) Position things in such a way that they can
be easily reached whenever they are needed. 3. Shine (Seiso) Keep things clean and tidy; no refuse or dirt in the
work area. 4. Standardize (Seiketsu) Maintain cleanliness and order –
perpetual neatness. 5. Sustain (Shitsuke) Develop a commitment and pride in keeping
to standards.
P 484
The 5 S’s
test 5S
Operations Management, 7E: Chapter 14 en15
19
Inventory
level
Delivering smaller quantities more often can
reduce inventory levels
Inventory
level
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Operations Management, 7E: Chapter 14 en15
20 JIT and MRP - control
cell
1
cell
2
cell
3
master production
schedule
orders management
system
simplified bill of
materials materials requirement
planning factory assembly
schedule
purchasing
vendors goods in final assembly
Kanban control
MRP Control
Operations Management, 7E: Chapter 14 en15
21
complex
structures
simple
structures JIT
MRP
JIT and/or
MRP
PERT
simple routings complex
routings
JIT, MRP, or both?
P 484
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