INTEGRATED PRODUCT AND PROCESS DEFINITION (IPPD) - THE KEY TO EFFECTIVE

MATERIAL RESOURCE PLANNING

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

Revision: 10 Date: January 2005 Author: C J Prinsloo

TABLE OF CONTENTS

1. INTRODUCTION

1.1 Course Objectives

1.2 Target group

1.3 Workshop

1.4 Material Requirements Planning (MRP) 1.4.1 MRP, Closed Loop MRP and MRPII

1.4.2 Prerequisites for Successful MRP II

1.4.3 MRP Outputs

1.4.4 Planning Hierarchy

2. COURSE CONTENT

2.1 Elements of an Integrated Product and Process Definition (IPPD)

2.2 Product Breakdown Structure (PBS)

2.3 Bill of Material (BOM)

2.4 A Single Accurate IPPD

2.5 Creation of an IPPD 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

APPENDIX 1: COURSE ASSIGNMENT

APPENDIX 2: WORKSHOP PROCESS FLOW CHART

REFERENCES

1. APICS DICTIONARY: 7TH EDITION

2. MRP II COURSE 1: CONCEPTS AND POLICIES

1 INTRODUCTION

1.1 Course Objectives

Understand the elements of “Integrated Product and Process Definition (IPPD)”

Must be able to create an “Integrated Product and Process Definition (IPPD)” for a product family

Understand that the creation and maintenance of an IPPD for a product family requires a team effort between the Engineering, Product Support, Production, Procurement, Quality and Configuration Management departments

Understand the relationship of the “Integrated Product and Process Definition (IPPD)” with processes such as Material Requirements Planning (MRP), Procurement, Manufacturing and Product costing

1.2 Target group The target group includes line- and project management personnel involved

with the following business areas in a manufacturing company: - 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.

1.3 Workshop Training will take place in the form of a workshop. The flow chart on the next

page gives an overview of the steps to be followed. Most ERP systems have an extensive ONLINE HELP facility. Please use the

“Online Help” of your application and in conjunction with the process flow chart (Appendix 2) in conjunction when doing the workshop exercises.

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1.4 The Basics of Material Requirements Planning

1.4.1 MRP, Closed Loop MRP and MRPII

MRP – Material Requirements Planning is a set of priority planning techniques to plan the requirements of component items belonging to the finished product or end item. MRP therefore answers the following questions: What to order, How much to order, When to order and When to schedule the receipt. To answer these question correctly, MRP is dependant on an accurate IPPD.

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

Closed Loop MRP – When MRP is expanded to include capacity planning, shop floor control and purchasing it is called “closed loop MRP”. Therefore a closed loop MRP system is an inventory control technique with the ability to plan and replan priorities and thereby maintain valid schedules for purchasing, manufacturing and product maintenance.

MRPII – If the financial functions are included and it is used as company financial palns and budgets, it is called “Material Resource Planning” (MRPII).

1.4.2 Prerequisites for Successful MRP II

MRP is basically just a calculating tool. It requires capable, trained people who understand MRP to review the systems recommendations and turn it into action. MRP need the following as pre-requisites to function properly:

a) A formal planning process, including sales forecasts and production capacity planning

b) Accurate data such for the Bill of Material (IPPD), inventory status, on order status and planning data such as lead times, order policy, safety stock, etc.

1.4.3 MRP Outputs

The MRP process results in outputs that are recommendations regarding the placement and management of replenishment orders:

a) MRP plans new orders to cover needs b) Replan orders c) Recommends changes to firm and released orders

1.4.4 Planning Hierarchy

MRP is only a step in the total planning and control process and is the result of a hierarchical planning process.

Strategic Business Plan

The start of the planning process is the company’s Business Plan. The executive management defines the long-range objectives (usually covering several years) so that the necessary people, facilities, and other resources can be planned to achieve the objectives. It states the product groups to be sold, the revenue expected, costs for people and resources, and the resulting levels of profit.

Operational Plan (also known as the Production or Manufacturing Plan)

The Operation plan follows the Business Plan. This plan is more detailed and incorporates

planning for Own Development projects, Production for existing/ future contracts and

Product Support.

Master Production Schedule (MPS)

The next level in the hierarchy of planning is the MPS. This detailed schedule is stated in

terms of end items (or high-level assemblies from which end items are built using a final

assembly schedule [FAS]). It uses engineering part numbers to identify the specific bills of

materials that will be exploded and planned by MRP. There are various methods of

calculating the MPS depending on the manufacturing environment, such as make-to-

stock, make-to-order, assemble-to-order, etc.

Nevertheless, all master production schedules share the following attributes:

a) States which items, in what quantities, and for what dates of need (date of

completion) for these items of independent demand, the entire manufacturing

organization works to the same plan, the master production schedule.

b) Must plan for all demands on manufacturing: sales forecast or customer orders,

service parts, and interplant orders. Must consider plant capacity and vendor

capacity, materials availability, lead times, and desired production lot sizes.

c) Must be consistent with the Operational Plan and the Business plan above it,

d) Rough Cut Capacity Planning (RCCP), using bills of labour or load profiles, is used to

verify that capacities are equal to the more detailed picture of load the MPS provides.

e) The master scheduler, interfacing with marketing and manufacturing management, is

responsible for seeing that the MPS is current and realistic (attainable), and that

changes in the schedule in the immediate near term are minimized (using time

fences) to prevent too many schedule changes.

f) The time span covered by the MPS must be at least as long as the total stacked lead

time for procurement, manufacture and assembly of the end items (called cumulative

lead time). Its horizon must also be long enough to allow necessary adjustments in

capacity to be made.

Material Requirements Planning (MRP)

MRP follows the MPS. Using the schedule defined by the MPS, it calculates the

dependent demand for all components required, recommending planner action to correct

existing schedules or to release new replenishment orders.

The result of MRP is a complete, detailed schedule of component requirements.

As in the case of the higher level plans, capacity is verified again, in detail, by schedule

date and work center, using Capicity Requirements Planning (CRP) which follows the

MRP process, If the higher level capacity planning has not provided sufficient overall

capacity, CRP will be unable to do its job.

One of the major reason for the failure of MRP to produce significant benefits is the lack of

adequate or realistic higher level plans. MRP is an excellent tool for planning the

execution of detailed schedules. It should not be used (it is too cumbersome) as the

primary planning tool for business decisions.

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. COURSE CONTENT

2.1 Components of the “Integrated Product and Process Definition (IPPD)”

An “Integrated Product and Process Definition” can be defined as a

comprehensive database for a product family which includes all important data required by the following business areas in a manufacturing company:

- DESIGN ENGINEERING - PRODUCTION - PROCUREMENT - FINAL ASSEMBLY - PRODUCT SUPPORT (LOGISTICS) - MARKETING AND PROGRAM MANAGEMENT - FINANCE - QUALITY The “Integrated Product and Process Definition” is contained in the following

database tables within the Enterprise Resource Planning (ERP) application. Part Master:

Contains data inherent to a part, regardless of where the part/component

is used.

Product Structure: Contains data related to the application of a part. The different structures

are also defined in this table.

Part Operations: Contains manufacturing and support data for a product

IPPD DATABASE

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 2.1

2.2 Product Breakdown Structure (PBS)

2.1 The Product Breakdown Structure (PBS) which part and partial of the IPPD,

can be defined as a hierarchical structure that defines all configurations for a product family (including options) by means of parent-component links.

2.2 The PBS is one of the components of the “Integrated Product and Process

Definition”. Different types of Product Breakdown Structures (PBS's) may exist at any time for one product family, within the IPPD database. They are:

- Phantom PBS's - Modular PBS's - Planning PBS's - Functional Modular PBS's - Repair 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 Bill of Material (BOM) A Bill of Material (BOM) 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 created from the “Integrated Product and Process Definition”

database of a product family.

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

2.4 A Single Accurate IPPD

An “Integrated Product and Process Definition (IPPD)” defines how a product is designed, manufactured and supported.

An accurate IPPD is therefore critical for processes such as Procurement, Manufacturing, Support and Product Costing.

IPPD WORKSHOP

CREATE

Integrated

Product Definition

HOW?

Integrated

Development (Team of 6

Concept)

USE

Integrated

Product Definition

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

SUPPORT DEFINITION • Failure Data • Resources • Change Control • Repair and Maintenance Procedures

PRODUCT STRUCTURE • Configuration • Cost • Change Control

MANUFACTURING DEFINITION • Manufacturing Process • Resources • Change Control

FIGURE 2.4 A

In the past, before well designed integrated MRPII applications were available, the practice of having a Bill of Material for each business area was quite common. Examples would be:

Engineering Bill of Material (exclusively for the Engineering Department’s use. Passed on to the Manufacturing Department)

Manufacturing Bill of Material (exclusively for the Manufacturing Department’s use. Created from the Engineering BOM)

Costing Bill of Material (exclusively for the Financial Department’s use. Created from the Manufacturing BOM)

The major problem with a Bill of Material for each business area was that these

separate Bill of Material seldom was in line with each other because they were created by different departments within the company. Due to failure and timing of communication it became a real challenge to keep these Bills of Material in line.

The approach or goal should rather be to create a single integrated product database from which the different users in a manufacturing company can extract the data required for their specific purpose of use. Most modern ERP systems allow you to achieve this through relational database design which requires data to be defined only once regardless of which purpose it is used for.

COMPANY USERS OF IPPD’S

PROGRAM MANAGEMENT

FINANCE

PRODUCTION MARKETING

PROCUREMENT PRODUCT SUPPORT

ENGINEERING FINAL ASSEMBLY CUSTOMER

QUALITY

FIGURE 2.4 B

2.5 Creating the IPPD database

Basically the IPPD contains five sets of data, namely the design, assembly,

production, procurement and product support definitions. To create the IPPD database requires a team effort from the Engineering, Production, Product Support, Procurement, Quality and Configuration Management departments.

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) Figure 2.6: 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) Figure 2.7: Identify configuration items by means of the Source Code (Make/buy decision) and MRP planned indicator.

Configuration Items (Cl’s) are those parts in a product which are either procured (purchase order), manufactured (production order) or supplied to the customer (customer order). 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) - LCI’s (Logistic Support Configuration Items)

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

NOTE:

Configuration Items are all the MRP planned “Procured” and “Manufactured” parts. They can also be defined as the stocked parts or the parts for which MRP will generate works or purchase orders. A report of the product definition (BOM report), showing only the Configuration items, represents what is called a hardware breakdown of the product.

For example 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.

c) Fig 2.8: 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 report 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

d) Fig 2.9: 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) Fig 2.10: Define the material and quantity required manufacturing a manufactured component, by linking the material specification to the manufactured part.

b) Fig 2.11: for example 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

c) Fig 2.12: Identify and define parts that are manufactured up to a semi-finished stage, and finalised later with a second works order.

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

d) Fig 2.13: Define subcontracted operations by means of a SUBCONTRACT part.

For example suppose the manufacturing process for COMPONENT 4 (600/00754) 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.

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

e) Fig 2.14: Identify consumable material and process specifications that are required during the manufacturing process of manufactured parts.

For example CONSUMABLE 1 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

7. PLANNING RESPONSIBILITY

* Planner code

8. ASSEMBLY LOT SIZE

* Order Policy

9. SCRAP FACTOR

* Scrap percentage

10. FLOOR STOCK

* Floor stock indicator

FIGURE 2.15

a) Fig 2.16: 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.

For example suppose the assembly department decides that they will be decreasing the amount of assembly work orders for PRODUCT Z. 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".

FIGURE 2.16

b) Fig 2.17 Changing assemblies’ SOURCE CODES to PHANTOMS (SC = N)

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

For example while SUBASSEMBLY A was still a Manufactured Configuration Item (MCI) assembly, it would have required three different work orders to assemble one of PRODUCT Z. Each of these work orders would have had a stock pull list (see Figure 2.17). When a works order gets released, a material requirements list is created for it. This requirements list is derived from the “active” Bill of Material at that point in time. In a situation where an Engineering Change is implemented while the released works orders is still in progress, the requirements lists for al related works orders have to be manually updated. This can be a cumbersome and time consuming process. Also when schedules should change (and they normally do) all released orders have to be manually rescheduled. It therefore makes sense to minimize the number of works orders required to build a product without losing control.

MCI AND PHANTOM 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

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 MCI assembly to a phantom 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

c) Figure 2.19: Identify semi-finished assemblies. These semi-finished assemblies are those assemblies that have been manufactured up to a certain stage, and are completed later with a second work order.

For example 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).

Define subcontracted operations as subcontracted assemblies. For example 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) Fig 2.20: Incorporate the assembly logic by specifying the assembly operation and workstation for the various components.

For example PRODUCT Z requires three operations before it is complete, 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.

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

C C I

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 = 1 MDTO = 10 QTP = 5 MDTO = 20 QTP = 10 MDTO = 20

QTP = 2 MDTO = 20

QTP = 2 QTP = 1.5 MDTO = 30 QTP = 5.8 MDTO = 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

3 ROUTING

FIGURE 2.20

e) Fig 2.20 and 2.21: 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. 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

f) Fig 2.20: 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.

g) Fig 2.20: Determine assembly lead times for MRP planned assemblies.

h) Identify the planning responsibility of scheduled assemblies by means of the

PLANNER CODE.

i) Specify the assembly LOT SIZE and ORDER POLICY based on the ABC classification.

j) Determine and specify the scrap factor by means of the SCRAP

PERCENTAGE.

k) Fig 2.22: 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”.

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

5. PLANNING RESPONSIBILITY

* Planner code

6. PROCUREMENT LOT SIZE

* Order policy

7. FLOOR STOCK

* Floor stock indicator

FIGURE 2.23

a) Fig 2.24: Identify the MRP planned procured items (PCI’s) by means of the

SOURCE and MRP PLANNED codes.

b) Fig 2.24: Incorporate the procurement logic into the Product Definition

Database. This step requires 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.

For example suppose COMPONENT 6 (600/00056) 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 linked below a PCI is part and parcel of that PCI, and has to be purchased as a unit.

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

c) Fig 2.25: Identify subcontracted parts and assemblies by means of the

SOURCE and MRP PLANNED CODES.

For example 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

061/0

0035

SC

= P

M

RP

= Y

P C I

CO

MP

ON

EN

T 2

061/0

0036

SC

= P

M

RP

= Y

P C I

ID P

LA

TE

1

600/0

0060

SC

= P

M

RP

= Y

P C I

SE

MI S

UB

-AS

SY

B

600/0

0720

SC

= S

M

RP

= Y

P C I

ID P

LA

TE

2

600/0

0061

SC

= P

M

RP

= Y

P C I

C-S

PE

C

600/0

08820

SC

= P

M

RP

= N

S P E C

SU

B-A

SS

Y 1

600/0

0010

SC

= N

M

RP

= N

P H T

AT

TA

CH

EL

EM

1

600/0

0070

SC

= P

M

RP

= Y

P C I

AT

TA

CH

EL

EM

2

600/0

0071

SC

= P

M

RP

= Y

P C I

SU

B-A

SS

Y B

600/0

0020

SC

= M

M

RP

= Y

M C I

PR

OD

UC

T Z

600/0

9000

SC

= M

M

RP

= Y

C C I

TH

INN

ER

S

061/0

0011

SC

= P

M

RP

= Y

P C I

PA

INT

061/0

0010

SC

= P

M

RP

= Y

P C I

TE

ST

RE

PO

RT

600/2

0126

SC

= P

M

RP

= N

D O C

CO

MP

ON

EN

T 3

600/0

0053

SC

= P

M

RP

= Y

P C I

CO

MP

ON

EN

T 6

600/0

0056

SC

= P

M

RP

= Y

P C I

CO

MP

ON

EN

T 4

600/0

0054

SC

= M

M

RP

= Y

M C I

CO

MP

ON

EN

T 5

600/0

0055

SC

= P

M

RP

= Y

P C I

CO

MP

4 S

UB

-CO

N

600/0

7154

SC

= S

M

RP

= Y

P C I

CO

MP

4 S

EM

I

600/0

0754

SC

= M

M

RP

= Y

M C I

PR

OC

ES

S S

PE

C

600/0

8754

SC

= P

M

RP

= N

S P E C

MA

TE

RIA

L 4

600/0

0454

SC

= P

M

RP

= Y

P C I

CO

NS

UM

AB

LE

S

061/0

0081

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 IT

EM

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 ID

EN

TIF

IED

AS

A L

CI IT

EM

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 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) Fig 2.26: 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.

For example 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) Fig 2.28: 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) Fig 2.28: Define the packaging process by means of a ROUTING and

specify the operation and workstation for the packed parts (which are usually phantoms).

For example PPPM A (600/00500) in 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

PACKAGING MATERIAL 2

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

PACKAGING MATERIAL 2

6. 061/00051

CARDBOARD BOX 1

7. 060/00010

PACKAGING MATERIAL 1

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 relationship 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

LIST OF CONTENTS

BUSINESS SCENARIO

MODUS OPERANDI

EXERCISE 1: CREATE 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 BUSINESS AREAS must be represented in each team: - Production/Assembly - Engineering (Designer) - Procurement (Buyer) - Quality (Inspector) - Finances (BU Accountant) - Marketing (Program Manager) 3. The presenter and co-presenters will fulfill the roles of: - Suppliers - Clients - Store man 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: - Create a Hardware Breakdown Structure - Enter Part Masters, Product Structure and Client Orders - Execute Purchase and Work Orders - Implement new designs and options

BUSINESS SCENARIO

1. Company XYZ manufactures electrical power transfer devices. 2. The company is responsible for the design and development of the product. 3. All components are purchased from approved suppliers, and then assembled

internally. 4. Currently the company only manufactures one version of the electrical transfer

device, i.e. no options are currently available 5. The company is also responsible for product support (spares and repair) of the

product.

EXERCISE 1

CREATE A HARDWARE BREAKDOWN STRUCTURE (HBS) Use the information supplied to create a schematic of the hardware breakdown for the Electrical Power Transfer Device (EPTD)

INFORMATION The parts for the product are:

PART NUMBER DESCRIPTION COST 99900001 EPTD 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 unique product code will be assigned by the presenter to each team.

- The HBS must be prepared on a transparency and presented to rest of the class.

- Take note that no manufacturing/purchasing decisions have been made at this stage.

- Allocate your own numbers for assemblies and subassemblies as required.

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

- 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 EPTD. (See Exercise 1). Make the “Earth Pin Chrome” a sub-contracted

part. INFORMATION

a) List of suppliers are:

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 b) Manufacturing

Work Centre No Description OP No 01 “Assemble Line Pins” 01 “Assemble Earth Pin” 02

“Insert Pins into Base” 03 02 “Install Cord Grip” 04 “Install Cover” 05

External Operations “Chrome Earth Pin”

c) All items manufactured from brass must have a material specification.

Material specifications must be linked to the items manufactured from brass. Specification documents are purchased/not MRP and non-fixed account.

d) The Line Pins has a “Critical” and the Earth Pin a “Major A” characteristic.

e) There is also a final acceptance specification for the finished product.

f) All fasteners are “floor stock”.

g) The customers supply the Marking stickers. (Customer A = Blue and

Customer B = Red)

h) 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)).

i) Part numbers and drawing numbers are the same. A Revision Number is

used to indicate the version of drawings.

j) All Drawings and specifications must have a revision specified.

OUTPUTS REQUIRED FOR EXERCISE 2: ASSIGNMENT 1 - 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 EPTDs (2 per month, every 2

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

ordered 6 EPTDs (2 per month every 2nd

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

th EPTD

being delivered. OUTPUTS REQUIRED FOR EXERCISE 2: ASSIGNMENT 2 - 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 - Presenters will do receiving transactions. - Each “team of six” MUST have its own store. OUTPUTS REQUIRED FOR EXERCISE 3: ASSIGNMENT 1 - 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. OUTPUTS REQUIRED EXERCISE 3: ASSIGNMENT 2

- Stock Pull Instruction (Online) - Stock Pull List (Online) - Order to Store Instruction (Online) - Assembled EPTDs

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 REQUIRED FOR EXERCISE 3: ASSIGNMENT 3 - 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)

- 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 color 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 EPTDs 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 REQUIRED FOR EXERCISE 4: ASSIGNMENT 1 - Item List for a Drawing (IPPD16) - Modular BOM Report (IPPD17) - Stock Pull Instruction and Stock Pull List (Online) - Assembled EPTDs - Cost Roll-up for Client Order (Online)

IPPD WORKSHOP SCORE-CARD

COMPANY: ______________________________

EXER-

CISE

ASSIGNMENT OUTPUT POSSIBLE

SCORE

MINUS

ERROR

SCORE

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 EPTDs (Phase 1)

- Order to Store Instruction (Online)

- Assembled EPTDs (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 EPTDs (x4)

- Cost Roll-up for Customer Order (Online)

TOTAL

10

40

10

40

10

420

EPTD 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.

Access Reports: - Parts by Designer

PRINT INSPECTION REPORTS

- 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

EPTDS 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

SUBCONTRACT PURCHASE

ORDER

Stores to Order Requirements (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 EPTDS

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.

STRUCTURE MODULAR BOM

Part Master (Engineering) 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