Business Process Workshop - apps.qmuzik.comapps.qmuzik.com/Training/qm8pdf/IPPD.pdf · Training will take place in the form of a workshop exercise. The workshop

Business Process Workshop Course Assignment

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COPYRIGHT © 1997 BY PQ MUZIK AFRICA

All rights reserved. The contents, nor any part thereof, nor the format, the configuration or

any other aspect thereof may be copied, transformed, reworked, reverse engineered,

stored or transmitted, irrespective of the mode or method thereof, or in any other way be

dealt with other than only with the express prior written permission of PQ Muzik Africa.

BUSINESS PROCESS WORKSHOP Detail Course

Document Number: 850/00043/0200/v/09

Author: CJ Prinsloo Revision: 09 Date: November 1997

GENERAL OBJECTIVES OF THE COURSE

Rev 09: November 1997 Page 4

Business Process Workshop – Detail Course

On completion of the course, the student will be able to: 1. Understand the contents of Business Process Workshop database. 2. Understand the various hardware breakdown structures (HBS’s). 3. Apply knowledge gained in his/her job situation.



TABLE OF CONTENTS 1. INTRODUCTION

1.1 Scope 1.1.1 Purpose of the manual 1.1.2 Target group 1.1.3 Modus Operandi 1.1.4 Overview of the Workshop and MRP

2. CREATING AN BUSINESS PROCESS WORKSHOP DATABASE

2.1 Definition and description: Business Process Workshop

2.2 Definition and description: Product Breakdown Structure (PBS)

2.3 Definition and description: Bill of Material (BOM)

2.4 A common accurate Integrated Product and Process Definition

2.5 Creating the Business Process Workshop Definition database 2.5.1 Design definition 2.5.2 Production definition 2.5.3 Assembly definition 2.5.4 Procurement definition 2.5.5 Product support definition

APPENDICES

1. APPENDIX 1

- BUSINESS PROCESS WORKSHOP COURSE ASSIGNMENT

2. APPENDIX 2

- WORKSHOP PROCESS FLOW CHART

REFERENCES

1. APICS DICTIONARY: 7TH EDITION

2. MRP II COURSE 1: CONCEPTS AND POLICIES



1. INTRODUCTION

1.1 Scope

1.1.1 Purpose of the Course The purpose of the course is to teach students how to define an Business

Process Workshop within an Enterprise Resource Planning (ERP) system, that can be used for the purpose of Material Requirement Planning (MRP), Capacity Planning, Configuration and Quality Management, Maintenance Planning, Manufacturing, Procurement and Costing.

1.1.2 Target group The target group includes line- and project management as well as personnel

involved in the following functional areas in a manufacturing company: - DESIGN ENGINEERING - PRODUCTION - PROCUREMENT - FINAL ASSEMBLY - PRODUCT SUPPORT (LOGISTICS) - MARKETING AND PROGRAM MANAGEMENT - FINANCE - QUALITY Due to the nature and vast scope of the subject, people in certain functional

areas will have a greater interest in specific sections of the manual. Please study those sections directly applicable to your work situation thoroughly, and read through the remaining sections in order to relate to and gain a better understanding of those functions.

1.1.3 Modus Operandi Training will take place in the form of a workshop exercise. The workshop

process flow chart gives a schematic overview of the steps to be followed. Most ERP systems have an extensive HELP for on-line functions and data

fields. Use the help and the flow chart (Appendix 2) in conjunction when doing exercises.

1.1.4 Overview of the Workshop and MRP We start the course with a schematic overview of the Business Process

Workshop (so that the students know what they are in for) and also of Material Requirements Planning (MRP), to give those students who do not have any knowledge of MRP some background.



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MRP LOGIC

WHAT ARE WE GOING TO MAKE?

WHAT DO WE NEED?

DO WE HAVE ENOUGH STOCK?

NEXT ITEM

TOO MUCH ON ORDER

SUGGEST EXCESS

ON ORDER

NEXT ITEM

SUFFICIENT ON ORDER?

PLAN AN ORDER

DUE DATE CORRECT?

SUGGEST

RESCHEDULE

YESNO

NOYES

YES

NO

NOYES



THE MRP PROCESS

1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3

25 30 15 40 15 30 15 15Periods

Demand from X Demand from YIndependent

Demand for A

X

A B(1) (2)

Y

A C(1) (3)

PART A

On hand - 95Allocated - 20Lead Time - 3 PeriodsLot Size - 100

Gross requirements

Scheduled receipts

Projected on hand *

Net Requirements

Planned order receipts

Planned order releases

MRP worksheet for Item A

15

6075

40

20

40

100

80

30

50

100

15

35 35

45

10

100

90(-10)

90

1 2 3 4 5 6 7 8

* On hand - allocated

(95 - 20) = on hand balance

# Net Req = “negative”

projected on hand



2. CREATING A BUSINESS PROCESS WORKSHOP DATABASE

2.1 Definition and Description: Integrated Product and Process Definition

(IPPD)

A Business Process Workshop can be defined as a comprehensive database

for a product family that includes all important data required by the following functions in a manufacturing company:

- DESIGN ENGINEERING - PRODUCTION - PROCUREMENT - FINAL ASSEMBLY - PRODUCT SUPPORT (LOGISTICS) - MARKETING AND PROGRAM MANAGEMENT - FINANCE - QUALITY The Business Process Workshop is defined in the following database files

within the MRP system. Part Master: Holds all data inherent to a part, regardless of where they are used.

Product Structure: Holds all data sensitive to the application of a part. The different structures are

also defined in this database. Routing Master: Holds all data regarding the assembling/manufacturing of a product, including

the assembly logic and sequence.



BUSINESS PROCESS

WORKSHOP

DEFINITION

A comprehensive database for a product

family including all important data required

by:

* Design Engineering

* Production

* Procurement

* Final Assembly

* Product Support

* Marketing & Program Management

* Finance

* Quality

DATABASE FILES:

* Part Master

* Product Structure

* Routing Master

FIGURE 2.1A

2.2 Definition and Description: Product Breakdown Structure (PBS)

2.2.1 The Product Breakdown Structure (PBS) can be defined as a hierarchical

structure, which defines all configurations for a product family (including options) by means of parent-component links.

2.2.2 The PBS is one of the data elements in the Integrated Product and Process

Definition and different types of Product Breakdown Structures (PBS's) may exist for one product family, within the Integrated Product and Process Definition (IPPD). They are:

- Phantom PBS's - Modular PBS's - Pseudo PBS's - Functional Modular PBS's - Repaired PBS's These PBS’s are discussed in more detail in paragraph 4 of this chapter.



PRODUCT BREAKDOWN

STRUCTURE

DEFINITION

A hierarchical structure which defines all

configurations for a product family (including

options) by means of parent-component links

DATA

Within IPD

DIFFERENT TYPES

* Phantom PBS’s

* Modular PBS’s

* Pseudo PBS’s

* Functional Modular PBS’s

FIGURE 2.2

2.3 Definition and Description: Bill of Material (BOM) A bill of material can be defined as a listing (or report) of subassemblies,

components, semi-finished parts, raw materials with the quantity required to build a subassembly, assembly or finished product, stipulated for each.

Depending on the type of manufacturing process or product, bills of material

can alternatively be known as formulas or recipes. A bill of material is derived from the Integrated Product and Process Definition

of a product family.



BUSINESS PROCESS WORKSHOP

CREATEIntegratedProduct

Definition

HOW?

IntegratedDevelopment

(Team of 6Concept)

USEIntegratedProduct

Definition

FOR:• Manufacturing (MRP)• Support• Configuration Control• Procurement (MRP)• Costing• Configure to Order

SUPPORTDEFINITION• Failure Data• Resources• Change Control• Repair and Maintenance Procedures

PRODUCTSTRUCTURE• Configuration• Cost• Change Control

MANUFACTURING DEFINITION• Manufacturing Process• Resources• Change Control

FIGURE 2.1B

2.4 A common accurate Integrated Product and Process Definition

An Integrated Product and Process Definition (IPPD) includes data which affect

many functions because it basically defines how the product is designed, manufactured and supported, what the costs are involved and what quality is required.

BILL OF MATERIAL

DEFINITION

A structured list of drawings, specifications,

components, semi-finished parts, raw materials,

with the quantity required to build a sub-

assembly, assembly or finished product

stipulated for each.

FIGURE 2.3 The problems with multiple product definitions are obvious. They seldom

correspond, yet they are used for design engineering, planning, production, procurement, finance, and product support and configuration control. In



essence configuration management means knowing exactly what you are supposed to build, what you are building and what you will be building. Consider the task of a producer of weapon systems, where the product is in a constant state of change. How do service people know which components are contained in which products? Configuration control is essential in these industries, but configuration control in a company with many different bills of material is certainly a challenge!

COMPANY USERS OF IPPD’S

PROGRAM MANAGEMENT

FINANCE

PRODUCTION MARKETING

PROCUREMENT PRODUCT SUPPORT

ENGINEERING FINAL ASSEMBLY CUSTOMER

QUALITY

FIGURE 2.4

2.5 Creating the Integrated Product and Process Definition database

Basically the IPPD contains five definitions, namely the design, assembly,

production, procurement and product support definitions. In the following paragraphs how to create and integrate these definitions is discussed.

2.5.1 Design Definition The following process has to be followed to create the "Design Definition":



DESIGN DEFINITION

1. PRODUCT BREAKDOWN STRUCTURE (PBS)

* Parent/Component relationship

* Level

* Quantity per

* Modular, repair, planning (PBS)

2. IDENTIFY CONFIGURATION ITEMS

* Make / buy decision

* MRP planned

3. MASTER RECORD INDEX (MRI)

* Configuration item (CI) data pack

* Drawings, specifications, technical

instructions, documentation, etc.

4. OPTIONS

* Modular

5. QUALITY DATA

* Classification of characteristics

6. DESIGN STANDARDISATION DATA

* Commodity code

7. DESIGN RESPONSIBILITY

* Designer code

8. DESIGN HISTORY

* ECP number, implementation date

* Modification and revision status

9. PRODUCT SERIES AND BUSINESS UNIT

* Product definition and business unit code

10. NATIONAL STOCK CODIFICATION DATA (SIN SYSTEM)

* Standard number

* Approved item name

FIGURE 2.5

a. Define the Product Breakdown Structure (PBS) by means of parent-

component relationship levels and quantity required.



PRODUCT BREAKDOWN STRUCTURE

LEVEL 1

LEVEL 2

LEVEL 3

PLUG

PLG00001

CCI

EARTH PIN ASSY

PLG00010

MCI

LINE PIN

PLG00009

MCI

EARTH PIN

PLG00005

PCI

PIN SCREW

PLG00006

PCI

LINE PIN

PLG00007

PCI

PIN SCREW

PLG00006

MCI

QTP = 1 QTP = 2

QTP = 1 QTP = 1 QTP = 1 QTP = 1

PBS defined by means of parent / component relationship and quantity required

FIGURE 2.6 b. Identify configuration items by means of the Source Code (Make/buy

decision) and MRP planned indicator.

HARDWARE BREAKDOWN STRUCTURE

SC = SOURCE CODE

MRP = MRP PLANNED

QTP = QUANTITY PER

PRODUCT Z

600/09000

SC = M MRP = Y

C

C

I

QTP = 1

QTP = 2 QTP = 1 QTP = 3 QTP = 4

SPECIFY THE MANUFACTURING AND PURCHASING LEVELS

SUB-ASSY A

600/00010

SC = M MRP = Y

M

C

I

SUB-ASSY B

600/00020

SC = M MRP = Y

M

C

I

QTP = 2

COMPONENT 1

600/00035

SC = P MRP = Y

P

C

I

COMPONENT 2

600/00036

SC = P MRP = Y

P

C

I

COMPONENT 3

600/00053

SC = P MRP = Y

P

C

I

COMPONENT 4

600/00054

SC = M MRP = Y

M

C

I

FIGURE 2.7



Configuration Items (Cl’s) are those parts in a product which are either procured (purchase order), manufactured (production order) or supplied to the customer. The following types of Configuration Items (Cl’s) are usually included in a product definition:

- PCl’s (Procured Configuration Items) - MCl’s (Manufactured Configuration Items) - CCl's (Customer Configuration Items) NOTE: Configuration Items are all the "MRP Planned" “Procured” and

“Manufactured” parts in the product definition. They can also be defined as the stocked parts or the parts for which the MRP function will generate works or purchase orders. A printout of the product definition (BOM Print), showing only the Configuration items represents what is called a hardware breakdown of the product.

E.g. the make/buy decision for COMPONENT 4 in Figure 2.7 is specified

as manufactured by means of the SOURCE CODE = M and MRP PLANNED = Y.

Fig 2.8 c. Define the Master Record Index (MRI) for every CONFIGURATION ITEM

(Cl) data pack, by linking the drawings, specifications, interface drawings, technical instructions and documentation to the Cl. E.g. the drawings of COMPONENT 5 and COMPONENT 6 in Figure 2.8 are linked to COMPONENT 3, whereas a C-SPECIFICATION and TEST REPORT are linked to SUBASSEMBLY B.

NOTE: A MRI is an index of all drawings, specifications and other documents

required to manufacture or procure a configuration item.



MASTER RECORD INDEX (MRI)

BY CONFIGURATION ITEM (CI)

COMPONENT 3

600/00053

SC = P MRP = Y

P

C

I

DRAWINGS OF COMPONENTS 5 AND 6 ADDED

(INCLUDED WITH DATAPACK FOR COMPONENT 3)

COMPONENT 4

600/00054

SC = M MRP = Y

C

C

I

COMPONENT 5

600/00055

SC = P MRP = N

D

R

G

COMPONENT 6

600/00056

SC = P MRP = N

D

R

G

C-SPEC

600/0086

SC = P MRP = N

SPEC

TEST REPORT

600/0126

SC = P MRP = N

D

O

C

SUB-ASSY B

600/00020

SC = M MRP = Y

M

C

I

QTP = 3

QTP = 2

QTP = 4 QTP = 1 QTP = 1

QTP = 1 QTP = 1

Specifications and documentation added

FIGURE 2.8 Fig 2.9 d. Define all the options/different configurations of a product family by means

of a "modular" Product Breakdown Structure (PBS). The modules act as generic baselines for the design, procurement, and assembly and product support definitions. It can also be used to quickly structure a specific end item configuration of the product for a client, by means of a "customer special order".



OPTIONS FOR SAME PRODUCT

PRODUCT

A

POWER

SUPPLY

GROUP

POWER

UNIT

PETROL

COMMON

PARTS

PU PETROL

CYLINDER

HEAD

OPTIONS

TURBO

CHARGER

OPTION

POWER

UNIT

DIESEL

LUBRI-

CATION

SYSTEM

CYLINDER

HEAD

A

ENGINE

MOUNT-

INGS

CYLINDER

HEAD

B

CRANK

CASE

CRANK

SHAFT

FUEL

SYSTEM

SUSPEN-

SION

SYSTEM

TRANS-

MISSION

SYSTEM

ELEC-

TRICAL

SYSTEM

CARB

PETROL

COMMON

PARTS

SUSP.

COMMON

PARTS

TRANSM.

INSTRU-

MENTS

F / I

PETROL

SUSPEN-

SION

OPTION A

TRANSM.

FULLY

AUTOM.

STARTING

SYSTEM

DIESEL

SUSPEN-

SION

OPTION B

TRANSM.

SEMI

AUTOM.

ELECTRIC

CABLE

SYSTEM

FIGURE 2.9

e. Define quality control data by indicating the highest CLASSIFICATION OF CHARACTERISTICS for a configuration item (Cl).

f. Define design standardisation data by specifying the COMMODITY CODE

to which a configuration item (Cl) belongs. g. Identify the design responsibility by means of the DESIGNER CODE. h. Determine the design history by means of the ENGINEERING CHANGE

PROPOSAL (ECP) NUMBER, IMPLEMENTATION DATE, MODIFICA-TION STATUS and REVISION NUMBER.

i. Identify the product series and business unit responsible for the

manufacturing, by means of the PRODUCT DEFINITION, BUSINESS UNIT AND CONTROLLING DIVISION.

j. Establish a link to the Standard Item Numbering (SIN) system by means

of the STANDARD ITEM NUMBER (SIN). 2.5.2 The production definition The following process is required to create a "Production Definition":



PRODUCT ION DEFINITION

1. MATERIAL

* Parent/component relationship

* Quantity per

2. SEMI-FINISHED PARTS

* Semi-finished in stock

3. SUB-CONTRACTED PARTS

* Sub-contracting (external) of operations

* Supply material

4. CONSUMABLES AND PROCESS SPECIFICATIONS

* Parent/component relationship

* Quantity per

5. MANUFACTURING LEAD TIME

* Lead time

6. PLANNING RESPONSIBILITY

* Planner code

7. MANUFACTURING LOT SIZE

* Order policy

8. SCRAP FACTOR

* Scrap percentage

9. FLOOR STOCK

* Floor stock indicator

FIGURE 2.10 a. Define the material and quantity required manufacturing a manufactured

component, by linking the material specification to the manufactured part. Fig 2.11 E.g. MATERIAL SPEC 4 (600/40054) is attached to COMPONENT 4

(600/00054) with a “quantity per” of 0.5.



MATERIAL FOR MCI’S

SUB-ASSY B

600/00020

SC = M MRP = Y

M

C

I

QTP = 2

COMPONENT 3

600/00053

SC = P MRP = Y

P

C

I

QTP = 3

COMPONENT 4

600/00054

SC = M MRP = Y

M

C

I

QTP = 4

MATERIAL 4

600/40054

SC = p MRP = Y

P

C

I

QTP = 0.5

Material for 4 added

FIGURE 2.11 b. Identify and define parts that are manufactured up to a semi-finished

stage, and finalised later with a second works order. Fig 2.12 E.g. in its semi-finished stage the number for COMPONENT 4 is

600/00754/. When it is completed the number becomes 600/00054.



SEMI-FINISHED ITEM

SUB-ASSY B

600/00020

SC = M MRP = Y

M

C

I

QTP = 2

COMPONENT 3

600/00053

SC = P MRP = Y

P

C

I

QTP = 3

COMPONENT 4

600/00054

SC = M MRP = Y

M

C

I

QTP = 4

COMP 4 - SEMI

600/00754

SC = M MRP = Y

M

C

I

QTP = 1

Semi-finished item

600/00754 being defined

MATERIAL 4

600/00554

SC = P MRP = Y

P

C

I

QTP = 0.5

M = MANUFACTURED

P = PROCURED

S = SUBCONTRACTED

FIGURE 2.12

c. Define subcontracted operations by means of a SUBCONTRACT part. Fig 2.13 E.g. suppose the manufacturing process for COMPONENT 4 (600/00754)

Figure 2.13, requires four machining operations namely 10, 20, 30 and 40. Operations 10, 20 and 40 can be done by your own company, but operation 30 has to be contracted out to an external supplier, since your company does not have the technology to do it. The definition for COMPONENT 4, before being contracted out to the supplier, is represented by COMPONENT 4 - SEMI-FINISHED (400/00754), for which operations 10 and 20 have been completed. The supplier does operation 30 and returns COMPONENT 4, SUBCONTRACT (600/07154), which is also in a half-completed stage, since operation 40 still has to be done by your company.



d. Identify consumable material and process specifications that are required during the manufacturing process of manufactured parts.

SUB-CONTRACTED ITEMSUB-ASSY B

600/00020

SC = M MRP = Y

M

C

I

QTP = 2

COMPONENT 3

600/00053

SC = P MRP = Y

P

C

I

QTP = 3

COMPONENT 4

600/00054

SC = M MRP = Y

M

C

I

QTP = 4

COMP 4 - SEMI

600/00754

SC = M MRP = Y

M

C

I

QTP = 1

Sub-contracted item

(600/00054/7100) being defined

MATERIAL 4

600/00454

SC = P MRP = Y

P

C

I

QTP = 0.5

COMPONENT 4SUBCONTRACT

600/07154

SC = S MRP = Y

P

C

I

QTP = 1 OP 40

OP 30

OP 20

OP 10M = MANUFACTURED

P = PROCURED

S = SUBCONTRACTED

FIGURE 2.13 Fig 2.14 E.g. CONSUMABLE 1 in Figure 2.14 is a preservation lubricant, which is

required when COMPONENT 4 - SEMI-FINISHED (600/00754) is manufactured. Therefore CONSUMABLE 1 (061/00081) is linked to COMPONENT 4 - SEMI-FINISHED.



CONSUMABLES

COMP 4 - SEMI

600/00754

SC = M MRP = Y

M

C

I

MATERIAL 4

600/00454

SC = P MRP = Y

P

C

I

QTP = 0.5

CONSUMABLE 1

061/00081

SC = P MRP = Y

P

C

I

QTP = 0.001

PROCESS SPEC 1

600/08754

SC = P MRP = N

SPEC

QTP = 1

QTP = 2

CONSUMABLE 1 (061/00081) AND

PROCESS SPECIFICATION 1 (600/08754) ARE LINKED

FIGURE 2.14

2.5.3 The assembly definition The following process is required to add the "Assembly Definition":



ASSEMBLY DEFINITION

1. IDENTIFY SCHEDULED ASSEMBLIES

* Phantoms

* Number of works order

2. SEMI-FINISHED ASSEMBLIES

* Semi-finished in stock

3. SUB-CONTRACTED ASSEMBLIES

* Sub-contracting (external) (operations)

* Supply parts

4. ASSEMBLY LOGIC

* Deliver to operation

* Routing

* Stock pull list by operation/work station

5. CONSUMABLES

* Production

* Testing and qualification

6. ASSEMBLY LEAD TIME

* Lead time


* Planner code

8. ASSEMBLY LOT SIZE

* Order Policy

9. SCRAP FACTOR

* Scrap percentage

10. FLOOR STOCK


FIGURE 2.15

a. Identify scheduled assemblies by means of the SOURCE and MRP PLANNED codes. Scheduled assemblies are those assemblies for which work orders have to be generated. These assemblies must also be received to store, once completed. All assemblies are not necessarily scheduled assemblies, and therefore some are identified as "phantoms" (SOURCE CODE = N). No work orders will be generated for these "phantom" assemblies.

Fig 2.16 E.g. supposes the assembly department decides that they will be

decreasing the amount of assembly work orders for PRODUCT Z in Figure 2.16. To change SUBASSEMBLY A (600/00010) from a scheduled assembly (source code = M and MRP planned = Y) to an unscheduled assembly, they have to change the SOURCE CODE from M (manufactured) to "N " (phantom) and the MRP PLANNED CODE from "Y" to "N".



SCHEDULED AND UNSCHEDULED ASSEMBLIES

SC = SOURCE CODE

MRP = MRP PLANNED

QTP = QUANTITY PER

M = MANUFACTURED

N = PHANTOM

P = PLANNED

PRODUCT Z

600/09000

SC = M MRP = Y

C

C

I

QTP = 1

QTP = 2 QTP = 1 QTP = 3 QTP = 4

SUB-ASSEMBLY A (600/00010), THE SC CHANGES FROM “M” TO “N”

SUB-ASSY A

600/00010

SC = N MRP = N

P

H

A

SUB-ASSY B

600/00020

SC = M MRP = Y

M

C

I

QTP = 2

COMPONENT 1

600/00035

SC = P MRP = Y

P

C

I

COMPONENT 2

600/00036

SC = P MRP = Y

P

C

I

COMPONENT 3

600/00053

SC = P MRP = Y

P

C

I

COMPONENT 4

600/00054

SC = M MRP = Y

M

C

I

FIGURE 2.16 Changing assemblies’ SOURCE CODES to PHANTOMS (SC = N) can

reduce the number of work orders on stock pull lists required to build the product.

Fig 2.17 E.g. while SUBASSEMBLY A was still a scheduled assembly, it would

have required three different assembly work orders to assemble one of PRODUCT Z. Each of these work orders would have had a stock pull list (see Figure 2.17).



WORK ORDERS AND STOCK PULL LIST

FOR PRODUCT Z BEFORE MODIFICATION

STOCK PULL LIST

WO-01

SUB-ASSEMBLY A

600/00010

STOCK PULL LIST

WO-02

SUB-ASSEMBLY B

600/00020

STOCK PULL LIST

WO-03

PRODUCT Z

FINAL ASSEMBLY

600/00010

1. 600/00035

COMPONENT 1 (2 EA)

2. 600/00036

COMPONENT 2 (1 EA)

1. 600/00053

COMPONENT 3 (6 EA)

2. 600/00054

COMPONENT 4 (8 EA)

1. 600/00010

SUB-ASSY A (1 EA)

2. 600/00020

SUB-ASSY B (2 EA)

SUB-ASSEMBLY A, B AND PRODUCT Z ARE SCHEDULED ASSEMBLIES

FIGURE 2.17

Once SUBASSEMBLY A (600/00010) has been changed from a scheduled assembly to an unscheduled assembly, the number of assembly work orders will decrease from three to two, to assemble one of PRODUCT Z. (See Figure 2.18).



WORK ORDERS AND STOCK PULL LIST

FOR PRODUCT Z AFTER MODIFICATION

STOCK PULL LIST

WO-02

SUB-ASSEMBLY B

600/00020

STOCK PULL LIST

WO-03

PRODUCT Z

FINAL ASSEMBLY

600/09000

1. 600/00053

COMPONENT 3 (6 EA)

2. 600/00054

COMPONENT 4 (8 EA)

1. 600/00020

SUB-ASSY B (2 EA)

2. 600/00035

COMPONENT 1 (2 EA)

3. 600/00036

COMPONENT 2 (1 EA)

ONLY SUB-ASSEMBLY B AND PRODUCT Z ARE SCHEDULED ASSEMBLIES

FIGURE 2.18 b. Identify semi-finished assemblies. These semi-finished assemblies are

those assemblies that have been manufactured up to a certain stage, and is completed later with a second work order.

E.g. suppose that SUBASSEMBLY B (600/00020) in Figure 2.19 requires

two identification plates, after painting has been completed. UNPAINTED SUBASSEMBLY B, without the identification plates, is a semi-finished assembly with a different number (600/00720) than the COMPLETED SUBASSEMBLY B (painted, with the identification plates attached).

Fig 2.19 c. Define subcontracted operations as subcontracted assemblies. E.g.

suppose SEMI-FINISHED SUBASSEMBLY B (600/00720) in Figure 2.19 cannot be assembled at your company, since you do not have the required technology or capacity. The assembly must then change from a MCI (manufactured configuration item) to a PCI (procured configuration item). This is achieved by changing the SOURCE CODE from "M" to "S". COMPONENT 3 and COMPONENT 4 now have to be pulled from the store and sent to the supplier, who will execute the assembly operations and return the assembly to your company as SEMI-FINISHED SUBASSEMBLY B (600/00720).



SEMI-FINISHED ASSEMBLY

ID PLATE 1

600/00060

SC = P MRP = Y

P

C

I

SEMI SUB-ASSY B

600/00720

SC = S MRP = Y

M

C

I

ID PLATE 2

600/00061

SC = P MRP = Y

P

C

I

SUB-ASSY B

600/00020

SC = M MRP = Y

M

C

I

COMPONENT 3

600/00053

SC = P MRP = Y

P

C

I

COMPONENT 4

600/00054

SC = M MRP = Y

M

C

I

QTP = 2

QTP = 1 QTP = 1 QTP = 1

QTP = 4QTP = 3

SEMI-FINISHED SUB-ASSY B

(600/00020/7000) BEING IDENTIFIED ID PLATES ADDED

FIGURE 2.19

d. Incorporate the assembly logic by specifying the assembly operation and workstation for the various components.

Fig 2.20 E.g. PRODUCT Z requires three operations before it is completed, namely

operations 10, 20 and 30. A specific work centre station is linked to each operation in the database. Various components are required at each of these workstations, for example:

COMPONENT 1, COMPONENT 2 and ATTACHING ELEMENT 1 are

required at Workstation 1 for Operation 10. SUBASSEMBLY B and ATTACHING ELEMENT 2 are required at Workstation 2 for Operation 20. For the final operation, Operation 30, paint and thinners are required at Workstation 3.

By specifying the operation number for which a component is required, in

the DELIVER-TO-OPERATION field, the assembly logic gets defined in the Product Definition Database. It is now possible to divide the stock pull list for the final assembly of PRODUCT Z, in terms of operation and workstation.



ASSEMBLY LOGIC

COMPONENT 1

061/00035

SC = P MRP = Y

P

C

I

COMPONENT 2

061/00036

SC = P MRP = Y

P

C

I

SUB-ASSY 1

600/00010

SC = N MRP = N

P

H

T

ATTACH ELEM 1

600/00070

SC = P MRP = Y

P

C

I

ATTACH ELEM 2

600/00071

SC = P MRP = Y

P

C

I

SUB-ASSY B

600/00020

SC = M MRP = Y

M

C

I

PRODUCT Z

600/09000

SC = M MRP = Y

CCI

THINNERS

061/00011

SC = P MRP = Y

P

C

I

PAINT

061/00019

SC = P MRP = Y

P

C

I

SC = SOURCE CODE

MRP = MRP PLANNED

QTP = QUANTITY PER

MDTO = MANUFACTURING DELIVER TO OPERATION

WS = WORK STATION

WC = WORK CENTRE

QTP = 1MDTO = 10

QTP = 5MDTO = 20

QTP = 10MDTO = 20

QTP = 2MDTO = 20

QTP = 2 QTP = 1.5MDTO = 30

QTP = 5.8MDTO = 30

QTP = 1

CONSUMABLES AND ATTACHING ELEMENTS BEING ADDED

OP NO

10

20

30

DESCRIPTION

ASSEMBLY SUB-ASSY A

INTEGRATE SUB-ASSY A

AND SUB ASSY BE

PAINT PRODUCT Z

STD HRS

15,0

20,0

5,0

WC

1

2

3ROUTING

FIGURE 2.20

E.g. instead of having a single stock pull list for PRODUCT Z, which will result in all components being issued to Work Station 1, and being moved from one station to the next, the stock pull list can be divided by operation and the components may be issued by operation.



STOCK PULL LIST

FOR PRODUCT Z

STOCK PULL LIST

WO-03

PRODUCT Z

600/09000

1. 600/00020

SUB-ASSY B (2EA)

2. 600/00035

COMPONENT 1 (2EA)

3. 600/00036

COMPONENT 2 (1EA)

4. 600/00070

ATT ELEMENT 1 (5EA)

5. 600/00071

ATT ELEMENT 2 (10EA)

6. 061/00019

PAINT (6 L)

7. 061/00011

THINNERS (2 L)

STOCK PULL LIST

WO-03

PRODUCT Z

600/09000

1. 600/00035

COMPONENT 1 (2EA)

2. 600/00036

COMPONENT 2 (1EA)

3. 600/00070

ATT ELEMENT 1 (5EA)

OP : 10

WS : 1

STOCK PULL LIST

WO-03

PRODUCT Z

600/09000

1. 600/00020

SUB-ASSY B (2EA)

2. 600/00071

ATT ELEMENT 2 (10EA)

OP : 20

WS : 2

STOCK PULL LIST

WO-03

PRODUCT Z

600/09000

1. 061/00019

PAINT (6 L)

2. 061/00011

THINNERS (2 L)

OP : 30

WS : 3

WITHOUT DELIVER

TO OPERATION WITH DELIVER TO OPERATION

FIGURE 2.21 Fig 2.20 e. Identify consumable materials such as paint, thinners, welding rods,

cutting equipment and also materials used for testing and qualification, by linking each to the assembly where it is required.

f. Determine assembly lead times for MRP planned assemblies. g. Identify the planning responsibility of scheduled assemblies by means of

the PLANNER CODE. h. Specify the assembly LOT SIZE and ORDER POLICY based on the ABC

classification. i. Determine and specify the scrap factor by means of the SCRAP

PERCENTAGE. j. Identify “floor stock” components such as fasteners and consumable

materials, by means of the FLOOR STOCK INDICATOR. E.g. suppose ATTACHING ELEMENT 2 (600/00071) in Figure 2.22 is codified as a “floor stock” item, then the stock pull list for PRODUCT Z will no longer show ATTACHING ELEMENT 2.



STOCK PULL LIST FOR PRODUCT Z

WITHOUT FLOOR STOCK ITEMS

STOCK PULL LIST

WO-03

PRODUCT Z

600/09000/5000

1. 600/00020/5000

SUB-ASSY B (2EA)

2. 600/00035/5000

COMPONENT 1 (2EA)

3. 600/00036/5000

COMPONENT 2 (1EA)

4. 061/00000/0010

PAINT (6 L)

5. 061/00000/0011

THINNERS (2 L)

STOCK PULL LIST

WO-03

PRODUCT Z

600/09000/5000

1. 600/00035/5000

COMPONENT 1 (2EA)

2. 600/00036/5000

COMPONENT 2 (1EA)

OP : 10

WS : 1

STOCK PULL LIST

WO-03

PRODUCT Z

600/09000/5000

1. 600/00020/5000

SUB-ASSY B (2EA)

OP : 20

WS : 2

STOCK PULL LIST

WO-03

PRODUCT Z

600/09000/5000

1. 061/00000/0010

PAINT (6 L)

2. 061/00000/0011

THINNERS (2 L)

OP : 30

WS : 3

WITHOUT DELIVER

TO OPERATION WITH DELIVER TO OPERATION

FLOOR STOCK ITEMS:

ATTACHING ELEMENT 1

600/00070/5000

AND

ATTACHING ELEMENT 2

600/00071/5000

NO LONGER APPEARS ON

THE STOCK PULL LIST

FIGURE 2.22 2.5.4 The procurement definition The following process is required to create the “Procurement Definition”. a. Identify the MRP planned procured items (PCI’s) by means of the

SOURCE and MRP PLANNED codes.



PROCUREMENT DEFINITION

1. ID OF SCHEDULED PROCURED ITEMS

* Source code

* Schedule code (MRP planned = “Y”)

2. PROCUREMENT LOGIC

* MRP function

3. SUB-CONTRACTED PROCURED ITEMS

* Parts

* Assemblies

4. PROCUREMENT LEAD TIME

* Lead time


* Planner code

6. PROCUREMENT LOT SIZE

* Order policy

7. FLOOR STOCK


FIGURE 2.23

b. Incorporate the procurement logic into the Product Definition Database. This means that all Procured Configuration Items (PCI’s) must be at the correct level in the PBS, so that the MRP function can “see” it when the PBS is processed to create the plans.

Fig 2.24 E.g. suppose COMPONENT 6 (600/00056) in Figure 2.24, which is not

currently regarded as MRP PLANNED, is identified as a PCI, then it will have to move to the next level in the PBS because the MRP function does not explode below Procured Configuration Items (PCI’s). If this is not done, MRP will only process up to COMPONENT 3, because MRP logic accepts that everything connected to a PCI is part and parcel of that PCI, and has to be purchased as a unit.

c. Identify subcontracted parts and assemblies by means of the SOURCE

and MRP PLANNED CODES.



DEFINE PROCUREMENT LOGIC

COMPONENT 3

600/00053

SC = P MRP = Y

P

C

I

COMPONENT 6

600/00056

SC = P MRP = Y

P

C

I

COMPONENT 4

600/00054

SC = M MRP = Y

M

C

I

COMPONENT 5

600/00055

SC = P MRP = N

D

R

G

QTP = 1 QTP = 4QTP = 3

QTP = 1

COMPONENT 6

600/00056

SC = P MRP = N

D

R

G

QTP = 1

COMPONENT 6 BEING IDENTIFIED AS A PCI AND MOVES TO THE NEXT HIGHER LEVEL

SO THAT IT CAN BE PLANNED BY MRP

FIGURE 2.24 Fig 2.25 E.g. SEMI-FINISHED SUBASSEMBLY B (600/00720) in Figure 2.25 is a

subcontracted assembly and COMPONENT 4; SUBCONTRACTED (600/07154) is a subcontracted part.



DEFINE SUB-CONTRACTED PROCURED ITEMS

ID PLATE 1

600/00060

SC = P MRP = Y

P

C

I

SEMI SUB-ASSY B

600/00720

SC = S MRP = Y

P

C

I

ID PLATE 2

600/00061

SC = P MRP = Y

P

C

I

C-SPEC

600/00880

SC = P MRP = N

SPEC

SUB-ASSY B

600/00020

SC = M MRP = Y

M

C

I

TEST REPORT

600/00020

SC = P MRP = N

D

O

C

COMPONENT 3

600/00053

SC = P MRP = Y

P

C

I

COMPONENT 6

600/00056

SC = P MRP = Y

P

C

I

COMPONENT 4

600/00054

SC = M MRP = Y

M

C

I

COMPONENT 5

600/00055/5000

SC = P MRP = N

D

R

G

COMP 4 SUB-CON

600/07154

SC = S MRP = Y

P

C

I

QTP = 2

QTP = 1 QTP = 1 QTP = 1 QTP = 1 QTP = 1

QTP = 1 QTP = 4QTP = 3

QTP = 1

FIGURE 2.25 d. Determine and specify the procurement lead-time for each Procured

Configuration Item (PCI). e. Identify the planning responsibility for each Procured Configuration Item

(PCI) by means of the PLANNER CODE. f. Specify the size of the procurement LOT SIZE based on the ABC

classification by means of the ORDER POLICY. g. Define ORDER POLICY of the floor stock item and safety stock quantity

(re-order point).



INT

EG

RA

TE

D P

RO

DU

CT

DE

FIN

ITIO

N D

AT

AB

AS

E

FO

R P

RO

DU

CT

Z

CO

MP

ON

EN

T 1

06

1/0

00

35

SC

= P

M

RP

= Y

P C I

CO

MP

ON

EN

T 2

06

1/0

00

36

SC

= P

M

RP

= Y

P C I

ID P

LA

TE

1

60

0/0

00

60

SC

= P

M

RP

= Y

P C I

SE

MI

SU

B-A

SS

Y B

60

0/0

07

20

SC

= S

M

RP

= Y

P C I

ID P

LA

TE

2

60

0/0

00

61

SC

= P

M

RP

= Y

P C I

C-S

PE

C

60

0/0

08

82

0

SC

= P

M

RP

= N

S P E C

SU

B-A

SS

Y 1

60

0/0

00

10

SC

= N

MR

P =

N

P H T

AT

TA

CH

EL

EM

1

60

0/0

00

70

SC

= P

M

RP

= Y

P C I

AT

TA

CH

EL

EM

2

60

0/0

00

71

SC

= P

M

RP

= Y

P C I

SU

B-A

SS

Y B

60

0/0

00

20

SC

= M

M

RP

= Y

M C I

PR

OD

UC

T Z

60

0/0

90

00

SC

= M

M

RP

= Y

C C I

TH

INN

ER

S

06

1/0

00

11

SC

= P

M

RP

= Y

P C I

PA

INT

06

1/0

00

10

SC

= P

M

RP

= Y

P C I

TE

ST

RE

PO

RT

60

0/2

01

26

SC

= P

M

RP

= N

D O C

CO

MP

ON

EN

T 3

60

0/0

00

53

SC

= P

M

RP

= Y

P C I

CO

MP

ON

EN

T 6

60

0/0

00

56

SC

= P

M

RP

= Y

P C I

CO

MP

ON

EN

T 4

60

0/0

00

54

SC

= M

M

RP

= Y

M C I

CO

MP

ON

EN

T 5

60

0/0

00

55

SC

= P

M

RP

= Y

P C I

CO

MP

4 S

UB

-CO

N

60

0/0

71

54

SC

= S

M

RP

= Y

P C I

CO

MP

4 S

EM

I

60

0/0

07

54

SC

= M

M

RP

= Y

M C I

PR

OC

ES

S S

PE

C

60

0/0

87

54

SC

= P

M

RP

= N

S P E C

MA

TE

RIA

L 4

60

0/0

04

54

SC

= P

M

RP

= Y

P C I

CO

NS

UM

AB

LE

S

06

1/0

00

81

SC

= P

M

RP

= Y

P C I

SC

=S

OU

RC

E C

OD

E

MR

P=

MR

P P

LA

NN

ED

QT

P=

QU

AN

TIT

Y P

ER

MD

TO

=M

AN

UF

AC

TU

RIN

G D

EL

IVE

R T

O O

PE

RA

TIO

N

LO

R=

LIN

E O

F R

EP

LA

CE

ME

NT

RD

TO

=R

EP

AIR

DE

LIV

ER

TO

OP

ER

AT

ION

CC

I=

CU

ST

OM

ER

CO

NF

IGU

RA

TIO

N IT

EM

PC

I=

PR

OC

UR

ED

CO

NF

IGU

RA

TIO

N I

TE

M

MC

I=

MA

NU

FA

CT

UR

ED

CO

NF

IGU

RA

TIO

N IT

EM

PH

T=

PH

AN

TO

M

IDE

NT

IFY

TH

E S

PA

RE

PA

RT

S B

Y R

EF

ER

RIN

G

TO

TH

E R

EP

AIR

TA

SK

SP

AR

E P

AR

TS

BE

ING

IDE

NT

IFIE

D B

Y

RE

FE

RR

ING

TO

TH

E R

EP

AIR

TA

SK

MR

P =

Y

BE

CA

US

E C

OM

PO

NE

NT

5

IS B

EIN

G I

DE

NT

IFIE

D

AS

A L

CI

ITE

M

DE

SIG

N D

EF

INIT

ION

+ P

RO

DU

CT

ION

DE

FIN

ITIO

N

+ A

SS

EM

BL

Y D

EF

INIT

ION

+ P

RO

DU

CT

SU

PP

OR

T D

EF

INIT

ION

+ P

RO

CU

RE

ME

NT

DE

FIN

ITIO

N

QT

P =

1M

DT

O =

10

QT

P =

5M

DT

O =

10

QT

P =

10

MD

TO

= 2

0Q

TP

= 2

MD

TO

= 2

0

QT

P =

2R

DT

O =

10

QT

P =

1.5

MD

TO

= 3

0Q

TP

= 5

.8M

DT

O =

30

QT

P =

1R

DT

O =

10

QT

P =

1Q

TP

= 1

QT

P =

1Q

TP

= 1

QT

P =

1

QT

P =

1R

DT

O =

20

QT

P =

4R

DT

O =

20

QT

P =

3

QT

P =

1R

DT

O =

20

QT

P =

1

QT

P =

1

QT

P =

0.5

QT

P =

0.0

01

QT

P =

1

FIGURE 2.26



2.5.5 The product support definition The following process is required to create the “Product Support Definition”.

PRODUCT SUPPORT DEFINITION

1. IDENTIFY THE SPARE PARTS

* Per Maintenance Task

* Repairable / Discardable Items

2. PLANNING DATA FOR SPARE PARTS

* Manufacturing / purchasing decision (source code)

* MRP planned (Y / N)

3. PACKAGING DEFINITION FOR SPARE PARTS

* Packaging process

* Packaging material

* Packaging containers

4. PACKAGING DEFINITION FOR TOOLS AND EQUIPMENT

5. INTEGRATION WITH LOGISTIC SUPPORT ANALYSIS RECORD

* Maintenance Significant Items (MSI’s)

* MSI Funtions

* Failure Modes,Effects and Criticality Analysis Data

* Allocated Mean Time Between Failures (MTBF)

FIGURE 2.27 a. Identify spare parts. This is done by linking to the repair task for which the

component is required as a spare, and also by indicating whether the component is repairable or “discardable”.

b. Make sure that components, which have been identified as spare parts

are coded as MRP, planned by means of the SOURCE and MRP PLANNED codes.

Fig 2.26 E.g. COMPONENT 5 (600/00055) in Figure 2.26 is not MRP planned, but

because it has been identified as spare part, it must be codified as a PCI. The MRP PLANNED CODE therefore changes from “N” to “Y” and the SOURCE CODE TO “P”.

c. Define a PACKAGING DEFINITION for each spare part by building a

Product Breakdown Structure (PBS) for the packed parts. An interface to the PBS is achieved via the production part numbers, which are used in both Product Breakdown Structures (PBS’s).



PR

OD

UC

T S

UP

PO

RT

PA

CK

ED

HB

S

PA

CK

MA

T 1

06

0/0

00

10

SC

= P

M

RP

= Y

P C I

PA

CK

MA

T 2

06

0/0

00

11

SC

= P

M

RP

= Y

P C I

PA

CK

MA

T 2

06

0/0

00

11

SC

= P

M

RP

= Y

P C I

PA

CK

MA

T 1

06

0/0

00

10

SC

= P

M

RP

= Y

P C I

PA

CK

MA

T 1

06

0/0

00

10

SC

= P

M

RP

= Y

P C I

PA

CK

MA

T 2

06

0/0

00

11

SC

= P

M

RP

= Y

P C I

ST

EE

L C

AB

A

60

0/0

05

52

SC

= P

M

RP

= Y

P C I

CA

RD

B B

OX

2

06

1/0

00

50

SC

= P

M

RP

= Y

P C I

WO

OD

CR

AT

E 1

60

0/0

05

50

SC

= P

M

RP

= Y

P C I

CA

RD

B B

OX

1

06

1/0

00

51

SC

= P

M

RP

= Y

P C I

CA

RD

B B

OX

1

06

1/0

00

51

SC

= P

M

RP

= Y

P C I

WO

OD

CR

AT

E 1

60

0/0

05

50

SC

= P

M

RP

= Y

P C I

CO

MP

ON

EN

T 1

60

0/0

00

35

SC

= P

M

RP

= Y

P C I

CO

MP

ON

EN

T 4

60

0/0

00

54

SC

= M

M

RP

= Y

M C I

CO

MP

ON

EN

T 2

60

0/0

00

36

SC

= P

M

RP

= Y

P C I

CO

MP

ON

EN

T 6

60

0/0

00

56

SC

= P

M

RP

= Y

P C I

CO

MP

4 S

UB

-C

60

0/0

71

54

SC

= P

M

RP

= Y

P C I

CO

MP

ON

EN

T 5

60

0/0

00

55

SC

= P

M

RP

= Y

P C I

CO

MP

1 P

AC

KE

D

60

0/5

70

35

SC

= N

M

RP

= N

P H T

CO

MP

4 P

AC

KE

D

60

0/5

70

54

SC

= N

M

RP

= N

P H T

CO

MP

2 P

AC

KE

D

60

0/5

70

36

SC

= N

M

RP

= N

P H T

CO

MP

6 P

AC

KE

D

60

0/5

70

56

SC

= N

M

RP

= N

P H T

CO

MP

4 S

/C P

AC

K

60

0/5

71

54

SC

= N

M

RP

= N

P H T

CO

MP

5 P

AC

KE

D

60

0/0

57

55

SC

= N

M

RP

= N

P H T

SP

AR

ES

LIS

T

60

0/0

05

01

SC

= N

M

RP

= N

P H T

SP

AR

ES

LIS

T 2

60

0/0

05

02

SC

= N

M

RP

= N

P H T

SP

AR

ES

LIS

T 3

60

0/0

05

03

SC

= N

M

RP

= N

P H T

PP

PM

A

60

0/0

05

00

SC

= M

M

RP

= Y

C C I

QT

P =

10

QT

P =

1

QT

P =

1

QT

P =

0.0

01

QT

P =

20

QT

P =

1

QT

P =

1

QT

P =

0.5

QT

P =

5

QT

P =

1

QT

P =

1

QT

P =

4.5

QT

P =

15

QT

P =

1

QT

P =

1

QT

P =

0.2

QT

P =

50

QT

P =

1

QT

P =

1

QT

P =

1.5

QT

P =

2

QT

P =

1

QT

P =

1

QT

P =

0.2

2

MD

TO

= 1

0M

DT

O =

20

MD

TO

= 1

0M

DT

O =

20

MD

TO

= 2

0M

DT

O =

10

RO

UT

ING

: S

PA

RE

PA

CK

A

OP

NO

10

20

WC

088

099

ST

D T

IME

0,5

1,5

WS 1 2

DE

SC

RIP

TIO

N

Pa

ck

ed

an

d P

res

erv

ed

A

Pa

ck

ed

an

d P

res

erv

ed

B

Define p

ackin

g m

ate

rial and c

onta

iners

FIGURE 2.28



d. Define the packaging process by means of a ROUTING and specify the operation and workstation for the packed parts (which are usually phantoms).

E.g. PPPM A (600/00500) in Figure 2.28 requires 2 different packaging

processes (A and B) which are defined as operations 10 and 20 in the ROUTING for PPPM A. These operation numbers are entered into the “DELIVER TO OPERATION” data field, for the packed spares to which they apply. The stock pull list can now be divided by operation (packaging process).

STOCK PULL LIST FOR SPARE KIT A

STOCK PULL LIST OP 10

WO-03

SPARE KIT A

600/00500

1. 600/00035

COMPONENT 1

2. 600/00552

STEEL CABINET 1

3. 060/00010

PACKAGING MATERIAL 1

4. 600/00036

COMPONENT 2

5. 600/00550

WOODEN CRATE 1

6. 060/00011


7. 600/00055

COMPONENT 5

OP : 10

WS : 1

STOCK PULL LIST OP 20

WO-07

SPARE KIT A

600/00500

1. 600/00054

COMPONENT 4

2. 600/00056

COMPONENT 6

3. 600/07154

COMPONENT 4

SUB-CONTRACT

4. 061/00050

CARBOARD BOX 2

5. 060/00011


6. 061/00051

CARDBOARD BOX 1

7. 060/00010


OP : 20

WS : 2

10 EA

10 EA

1 L

5 EA

7 EA

24 ME

2 EA

20 EA

15 EA

50 EA

20 EA

10 ME

65 EA

78 L

FIGURE 2.29

e. Define spare part and special equipment packaging material such as

plastic bags, plastic rolls, preservatives, and cardboard boxes, etc. Creating part masters for them and linking them to the packed spares does this.

f. Define specially designed containers by creating part masters and linking

them to the packed spare number. g. Define a Product Breakdown Structure (PBS) for packed special tools and

equipment.



h. Create a direct link with the Logistic Support Analysis Record (LSAR) by means of the following:

- Identification of the Maintenance Significant Items (MSI’s) in the

product definition. MSI’s are systems, subsystems and functional groups in the product definition that require non-trivial product support in terms of preventative and corrective maintenance.

- Identify discardable spare parts. - Identify repairable spare parts. - Link spare parts to repair tasks by means of the REPAIR DELIVER

TO OPERATION, REPAIR OPERATION and OPERATION TYPE.



APPENDIX 1

IPPD COURSE ASSIGNMENT

Detail Course



LIST OF CONTENTS

BUSINESS SCENARIO

MODUS OPERANDI

EXERCISE 1: COMPILE A HARDWARE BREAKDOWN STRUCTURE (HBS)

EXERCISE 2: ENTER PART MASTERS AND PRODUCT STRUCTURE Assignment 1: Perform the make/buy decision and add Part Masters and Product

Structure Assignment 2: Enter the Customer Orders, perform ABC Classification and rectify order

policies for MRP Planned Parts

EXERCISE 3: EXECUTE PURCHASE AND WORK ORDERS Assignment 1: Execute Purchase Orders Assignment 2: Execute Work Orders Assignment 3: Modify Earth Pin and Process Change Proposal

EXERCISE 4: IMPLEMENT NEW DESIGN AND OPTIONS



MODUS OPERANDI

1. Students are divided into teams of + six. 2. At least the following functions must be represented: - Production/Assembly - Engineering (Designer) - Procurement (Buyer) - Quality (Inspector) - Finances (BU Accountant) - Marketing (Program Manager) 3. The presenter will fulfill the roles of: - Suppliers - Clients - Storeman 4. Each team of six represents a company and they must decide on a name for

their company. 5. The workshop is divided into four exercises, namely: - Compiling a Hardware Breakdown Structure - Entering Part Masters, Product Structure and Client Orders - Executing Purchasing and Work Orders - Implementing a new Design and Options



BUSINESS SCENARIO

1. Company XYZ manufactures three-point electrical plugs. 2. The company is responsible for the design and development of the product. 3. All components are purchased from approved suppliers, and are then

assembled internally. 4. The model manufactured at present is a “base screw model” type plug with a

white cover and white base. 5. The company is also responsible for product support (spares and repair).



EXERCISE 1

COMPILE A HARDWARE BREAKDOWN STRUCTURE (HBS) Use the information supplied to specify a hardware breakdown for the plug.

INFORMATION The parts for the product are:

PART NUMBER DESCRIPTION COST 99900001 Plug Final Assy

99900002 Cover SM White 22c

99900003 Base SM White R1-00

99900004 Cord Grip 5c

99900005 Earth Pin Chromed 12c

99900006 Pin Screw 2c

99900007 Line Pin 10c

99900008 Base Screw 2c

99900009 Earth Pin Steel 10c

99900051 Bag Plastic 1c

NOTES - A product definition will be assigned to each team.

- The HBS must be prepared on a transparency.

- No manufacturing/purchasing decisions have been made at this stage.

- Allocate numbers for assemblies and subassemblies as required.

- Replace 999 with the first three characters of your name or surname.

- Ask the presenter for your own unique product code.

- Tools are issued to a cost centre as a non-fixed account part (i.e. screw driver R3-55).

OUTPUTS

- Hardware Breakdown Structure on transparency

EXERCISE 2



ENTER PART MASTERS AND PRODUCT STRUCTURE (BOM) ASSIGNMENT 1: Add Part Masters and create a Product Structure (Bill of Material) for

your plug. (See Exercise 1). Make Earth Pin Chrome a sub-contracted part.

INFORMATION List of suppliers is:

NAME TECHNOLOGY GROUP Screwman Fasteners Elbree Precision Engineering Precision Engineering Electrical Moulded Components Injection Moulding Tool Centre Tools and Hardware Pack & Spice Plastic Bags SA Hardcrome Chrome Plating

ROUTING

Sequence Work Centre 1 “Assemble Line Pins” 01 “Assemble Earth Pin” 02

“Insert Pins into Base” 03 Work Centre 2 “Install Cord Grip” 04 “Install Cover” 05 External Operation “Chrome Earth Pin” - All items manufactured from brass must have a material specification. Material

specifications must be linked to the items manufactured from brass. - The Line Pins has a “Critical” and the Earth Pin a “Major A” characteristic.

Documents are purchased/not MRP and non-fixed account. - There is also a final acceptance specification for the finished product. - All fasteners are “floor stock”. - The customers supply Marking stickers. (Customer A = Blue and Customer B =

Red) - The Cord Grip, Cover, Line Pin and Base Screw are sold as a Spare Part Kit. (Spare

parts have to be packed as a kit in one plastic bag and marked according to client requirements (Customer A - Blue and Customer B - Red)).

- Part numbers and drawing numbers are the same. - Drawings and specifications must have a revision specified.

OUTPUTS



- Cost Generation of Product (Online) - List of Parts by Designer (IPPD01) - List of Parts by Buyer (IPPD02) - List of Parts by Supplier (IPPD03) - List of Parts by Planner (IPPD04) - List of Items with Classification of Characteristics (IPPD05) - List of Specifications (IPPD06) - List of Customer Furnished Parts (CFI’s) (IPPD07) - List of Spare Parts (IPPD08) - BOM Report (IPPD09) - Routing Report (IPPD10) - List of Drawings (IPPD11)

EXERCISE 2

ENTER PART MASTERS AND PRODUCT STRUCTURE (BOM) ASSIGNMENT 2: Enter the Customer Orders, perform an ABC Classification and rectify

Order Policies for MRP Planned Parts (see flow chart for detail).

INFORMATION There are two customers - Customer A and Customer B. Customer A has ordered 8 plugs (2 per month, every 2

nd month from the end of this month). Customer B has ordered 6

plugs (2 per month every 2nd

month from the end of next month). The plugs are assembled in lot sizes of 2. One spares kit is to be delivered with every 4

th plug being

delivered.

OUTPUTS - ABC Classification (Online) - Order Policies (IPPD12) - MPS Orders Due (IPPD13)



EXERCISE 3

EXECUTE PURCHASE AND PRODUCTION ORDERS ASSIGNMENT 1: Execute Purchase Orders (see flow chart for detail).

INFORMATION - Stock for presenters will take Purchase Items on hand. - Each “team of six” will have its own store.

OUTPUTS - Purchasing Plan (IPPD14) - Available Stock (IPPD15) ASSIGNMENT 2: Execute Work Orders (see flow chart for detail).

INFORMATION A stock pull instruction and stock pull list must be printed for every works order. NOTE: Receiving and issuing transactions will take two minutes depending on the availability of the printer.

OUTPUTS

- Stock Pull Instruction (Online) - Stock Pull List (Online) - Order to Store Instruction (Online) - Assembled Plugs ASSIGNMENT 3 (OPTIONAL): Modify Earth Pin and process Change Proposal.

INFORMATION Modify Earth Pin from Chrome Plated to Brass. Change Part Number and update Product Structure (see flow chart for detail).

OUTPUTS - Outstanding ECP’s for a Part (ECP01) - Purchase ECP Warning Report (ECP02) - List of Approved ECP’s for a Product (ECP03) - Unregistered Drawings for a Product (ECP04) - Drawing Completion Schedule (ECP05) - Registered Drawings for a Part (ECP06)

EXERCISE 3



EXECUTE PURCHASE AND PRODUCTION ORDERS (Continued) - BOM Changes for a Product over a period (ECP07) - List of Completed ECP’s for a Product (ECP08) - Where used print (Online) - BOM Comparison (IPPD19) - Data Change History Inquiry (Online)

EXERCISE 4

IMPLEMENT NEW DESIGN AND OPTIONS ASSIGNMENT 1: A new design (snapper) is implemented, and additional colour options (ivory cover, transparent base) are added to the existing model. Build one modular BOM for the product range that will include all possible options and process customer order (see flow chart for detail).

INFORMATION - The snapper design is implemented. - Client an orders another 6 plugs at this point (2 per month starting from the end of

this month). The customer’s requirements are as follows: * 2 x Base Screw Model (Ivory Cover, White Base) * 2 x Base Screw Model (White Cover, Transparent Base) * 2 x Snapper Model (Ivory Cover, Transparent Base)

OUTPUTS - Item List for a Drawing (IPPD16) - Modular BOM Report (IPPD17) - Stock Pull Instruction and Stock Pull List (Online) - Assembled Plugs - Cost Roll-up for Client Order (Online)

IPPD WORKSHOP SCORE-CARD

COMPANY: ______________________________



EXER-

CISE

ASSIGNMENT OUTPUT POSSIBLE

MARK

MINUS

ERROR

MARK

2 Enter Part Masters and

Product Structure

- List of Parts by Designer (IPPD01)

- List of Parts by Buyer (IPPD02)

- List of Parts by Supplier (IPPD03)

- List of Parts by Planner (IPPD04)

- List of Items with Classification of (IPPD05)

Characteristics

- List of Specifications (IPPD06)

- List of Customer Furnished Parts (CFI’s)(IPPD07)

- List of Spare Parts (IPPD08)

- BOM Report (IPPD09)

- Routing Report (IPPD10)

- List of Drawings (IPPD11)

TOTAL

10

10

10

10

10

10

10

10

10

10

10

10

120

2 Enter Client Order, ABC

Classification and Order

Policies

- ABC-Classification (Online)

- Order Policies (IPPD12)

- MPS’s still due (IPPD13)

- Purchasing Plan (IPPD14)

- Available Stock (IPPD15)

TOTAL

10

10

20

10

10

60

3 Execute Works Orders - Stock Pull Instruction (Online)

- Stock Pull List (Online)

- Assembled Plugs (Phase 1)

- Order to Store Instruction (Online)

- Assembled Plugs (Phase II)

TOTAL

10

10

60

10

40

130

4 Build a Modular BOM

and meet Client Order

- Item List for a Drawing (IPPD16)

- Modular BOM Report (IPPD17)

- Stock Pull Instruction and

Stock Pull List (Online)

- Assembled Plugs (x4)

- Cost Roll-up for Customer Order (Online)

TOTAL

10

40

10

40

10

420



PLUG FINAL ASSEMBLY

PARTS LIST 1. Line Pin Assembly

2. Cover SM White or Ivory

3. Earth Pin Assembly

4. Cord Grip

5. Sticker (Red or Blue)

6. Base SM White



MODULAR

BOM PLUG

MODULAR

ROUTING

PLUG FINALASSY GROUP

(COMMON PARTS)

SC = N MRP = Y

EARTH PIN ASSY 20

EARTH PIN

PIN SCREW

LINE PIN ASSY

LINE PIN 10

PIN SCREW 10

CORD GRIP 32

COVER GROUP

SC = N MRP = Y

SNAPPER GROUP

SC = N MRP = Y

COVER SNAP IVORY 31

COVER SNAP YELLOW 31

COVER SNAP RED 31

SM COVER GROUP

SC = N MRP = Y

COVER SM WHITE 30

COVER SM IVORY 30

BASE SCREW 30

SC = N

MRP = Y



MARKING

SC = N MRP = Y

RED STICKER 40

BLUE STICKER 40SNAPPER BASE GROUP

SC = N MRP = Y

BASE SNAPPER

BASE GROUP

SC = N MRP = Y

SM BASE GROUP

SC = N MRP = Y

BASE SM WHITE 20

BASE SM TRANSPARENT 20

MODULAR ROUTING

10 Line Pin Assy

20 Base and Pin Assy

30 Cover Installation (Screw Model)

31 Cover Installation (Snapper)

32 Cord Grip Installation

40 Marking



APPENDIX 2

WORKSHOP

PROCESS FLOW CHART



IPD WORKSHOP

ADD PART

MASTERS

CREATE PRODUCT

BREAKDOWN

STRUCTURE

(PBS)

ADD

CUSTOMER

ORDERS

ADD COST

CENTRE

ADD WORK

CENTRE

ADD

PART

OPERATIONS

FIRM AND

RELEASE

PURCHASE

ORDERS

RUN MRP

AND DETERMINE

NETT REQUIRE-

MENTS

COST

PRODUCT

(COST GEN.)

RELEASE

PRODUCTION

ORDERS

RECEIVE

PURCHASED

PARTS TO

STORE

SHIP

PRODUCT

CRATE

PRODUCT

ISSUE

PARTS TO

CUSTOMER

ORDERS

ISSUE

PARTS TO

WORK

ORDERS

RECEIVE

COMPLETED

ASSEMBLIES /

PARTS TO STORE

Specify

end item CREATE

ORDER

REQUIRE-

MENTS

Suggest

Planned

Orders

Suggest

Planned

Orders

C

A

B

D

E G H

I

J

KF

L

M N O P Q

1.

ADD PART MASTERS

Part Master (Engineering) Part Master (Planning 1) Part Master (Planning 2) Part Master (Cost)

2. ADD ROUTING FOR

MANUFACTURED PARTS

Part operations

3. ADD PRODUCT STRUCTURE Product Structure

4. PERFORM A COST GENERATION Cost Generation

5. UPDATE COST FOR

MANUFACTURED PARTS

Cost Generation

6.

ID DRAWINGS IN BOM

Part Master (Revision) * Rev No = * For Non-drawings * Rev No = 00 for Drawings



7.

PRINT INSPECTION REPORTS

Access Reports: - Parts by Designer - Parts by Buyer - Parts by Supplier - Parts by Planner - Classification of Characteristics - List of Specifications - Customer Furnished Items - List of Spares - BOM Report - List of Drawings

8.

ADD CUSTOMER ORDERS

Customer Orders (Header) Customer Orders (Line Mandatory) Access Reports: - MPS Orders Due

9. RUN MRP MRP Selective Run

10. PERFORM A ABC-

CLASSIFICATION

ABC Analysis/Reclassification

11. FIX ORDER POLICIES ACCORDING

TO ABC CLASSIFICATION

Part Master (Planning)

12. RUN INSPECTION REPORT FOR

ORDER POLICIES

Access Report: - Order Policies

13. RUN MRP AGAIN MRP Selective Run

14.

PRINT INSPECTION REPORTS

Access Reports: - Works Orders - Purchase Orders

15. GENERATE PURCHASE ORDER

REQUISITIONS TO BUILD SIX

PLUGS ONLY (NB: DO NOT

GENERATE MORE REQUISITIONS)

Stock Purchase Order Requisitions

16. RELEASE PURCHASE AND

SUBCONTRACT ORDERS

Released Purchase Order Generation

17. PRINT ISSUE INSTRUCTION FOR Stores to Order Requirements



SUBCONTRACT PURCHASE

ORDER

(Send message to Storeman)

18. ISSUE PARTS TO SUBCONTRACT

PURCHASE ORDER

Stores to Order Requirements

19. PRINT PURCHASE ORDER FOR

SUBCONTRACT PART

20. RECEIVE ENOUGH PARTS FROM

SUPPLIER TO BUILD SIX PLUGS

Supplier to Store (Movements) Access Report: - Stock on Hand

21. RELEASE WORK ORDERS Order Master

22. PRINT ISSUE INSTRUCTION FOR

WORK ORDERS

Stores to Order Requirements (Movements) (Send message to Storeman)

23. ISSUE PARTS TO WORK ORDERS

BY “DELIVER TO OPERATION”

Stores to Order Requirements (Movements)

24. PRINT “RETURN TO STORE”

INSTRUCTION

Production to Store (Movements) (Send message to Storeman)

25. RECEIVE COMPLETED

ASSEMBLIES TO STORE

Production to Store (Movements)

26. ISSUE COMPONENTS AGAINST

CUSTOMER ORDERS

Stores to Order Requirements (Movements)

27. ADD A CRATE Crate (Movements)

28. CRATE PRODUCT Production to Crating (Movements)

29.

SHIP PRODUCT

Crating to Customer (Movements) Production to Customer (Movements) Access Report: - Outstanding Customer Order

(OPTIONAL)

PROCESS AN ECP FOR THE

EARTH PIN

See ECP Processing Flow Chart

30. Part Master (Engineering)



STRUCTURE MODULAR BOM

Part Master (Planning 1) Part Master (Planning 2) Part Master (Cost) Product Structure

31.

LINK COMPONENTS TO

ASSEMBLY DRAWING

Product Structure Enter manufacturing Del-to-Op (manufacturing data) and balloon number (engineering data) Access Report: - Drawing Item List

32. ADD “MODULAR” ROUTING FOR

MODULAR BOM AND LINK PARTS

TO OPERATIONS

Part Operations (Operation Maintenance) Part Operations (Copy Ops from another part) Product Structure

33. ADD CUSTOMER ORDERS FOR

MODULAR BOM AND PRINT

REPORTS

Customer Orders (Header) Customer Orders (Line Mandatory) Access Report: - Outstanding Customer Orders

34. ADD ROUTING FOR “MODULAR”

CUSTOMER ORDER

Customer Orders (Order Operations)

35. PERFORM COST ROLL-UP FOR

“MODULAR” CUSTOMER ORDER

Order Operations

36. PERFORM SHORTAGE CHECKING

FOR CUSTOMER ORDER AND

RUN MRP

* Shortage Checking * MRP Selective Run

37. DO PURCHASING Repeat steps 15 to 22

38. ASSEMBLE PRODUCTS AND SHIP

TO CUSTOMER

Repeat steps 28 to 31