Laboratory for Machine Tools and Production Engineering · demand, globalization of procurement, sales markets, substitution of goods and the increasing process of globalization,

Production Management A – Winter Semester 2009/10

Operations Control P. 0

Lecture 08

Production Management A

Lecture 08Operations Control

Organisation:Dipl.-Wirt.-Ing. Niklas HeringPontdriesch 14/16Room 211Tel.: [email protected]

Laboratory for Machine Tools and Production Engineering

Chair of Production EngineeringProf. Dr.-Ing. Dipl.-Wirt. Ing. G. Schuh

Chair of Production ManagementProf. Dr.-Ing. A. Kampker



Lecture 08

Index:

Index Page 1

Schedule Page 2

Glossary Page 3

Target of this lecture Page 4

LectureBasics and challenges of operations control Page 5

Tasks of operation control following the Aachen PPC-Model Page 15

Questions Page 36

Bibliography Page 37



Lecture 08

Schedule:

No. Date Responsible

V1 19./20.10.2009 Mr. Haag 0241 89 04275

V2 26./27.10.2009 Mr. Nollau 0241 89 04271

V3 02./03.11.2009 Ms. Maletz 0241 80 28019

V4 09./10.11.2009 Mr. Jung 0241 80 27392

V5 16./17.11.2009 Mr. Bartoscheck 0241 80 28203

V6 23./24.11.2009 Mr. Pulz 0241 80 27388

V7 30.11/01.12.2009 Mr. Ivanescu 0241 80 20394

V8 07./08.12.2009 Mr. Hering (fir) 0241 47705-428

V9 14./15.12.2009 Mr. Kompa (fir) 0241 47705-426

V10 11./12.01.2010 Mr. Deutskens 0241 80 27380

V11 18./19.01.2010 Mr. Kuhlmann 0241 80 28197

V12 25./26.01.2010 Mr. Ziskoven 0241 80 27378

V13 01./02.02.2010 Ms. Völker 0241 80 28477

Materials Management

Lean Production - Production Systems

Production Strategies

Frontloading in Innovation Processes

Variant Management

Process Planning

Planning for Manufacture & Assembly

Operations Management

Technology Management II

Topic

Technology Management I

Product Planning & Engineering

Business and Process Modelling

The Industrial History: From Taylorism To Virtual Factory



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Lecture landscape

Facility planning

• Tooling planning• Storage- & Transport planning• Employee planning

Production-oriented- andAssembly-oriented Construction

• Construction tasks in small groups• Construction examples• Constructions guidelines

Production management II

• IT in Production management + Dig. Fab.• Customer Relations Management• Enterprise Resource Planning• Supply Chain Management• Product Lifecycle Management

V1 Technology Management IV2 Technology management IIV3 Frontloading in Innovation ProcessesV4 Product planning / ConstructionV5 Variant ManagementV6 Work planningV7 Planning of Manufacturing & AssemblyV8 Operations controlV9 Material ManagementV10 Lean Production - Production SystemsV11 Production strategies V12 Business and Process modellingV13 Industrial history

Capital budgetingBusiness Engineering

Production management I

• Integrated management tasks• Product- and product program planning• Organization and behavior of employees

• Strategies & Management• Business & production processes• Financial statements & capital budgeting

• Tooling planning• Technology planning• Cost calculation

Innovation Management



Lecture 08

Glossary:

Kanban Kanban is a production control methodusing the pull control principle thatmakes permanent intrusions of a centralcontrol unit unnecessary. It is solelyoriented at the customer demand.

Lead time scheduling Lead time scheduling establishes thechronological coherence betweenproduction orders. By stringing togetherall production orders that correlate due totheir bill of materials, a time schedule isdrawn to express these correlations.

Load-dependent order release Load-dependent order release (BoA) isbased on a rough-cut scheduling andavailability check. A separation of urgentand not urgent production orders resultsfrom rough-cut scheduling. It is further-more checked for every urgent order iftheir dispatching would lead to anoverload of necessary resources.

Operations control Operations control includes thearrangement monitoring and guaranteeingof quantity, deadline, quality and costs.

Production Planning & Control Production Planning & Control (PPC)comprises the whole technical orderprocessing going from quotation toconsignment. Its planning and controlfunctions thereby touch the departmentssales, engineering, purchasing,production, assembly and consignment.

Throughput time The throughput time of an order is definedas the sum of machining-, transport-,control-, and queuing times.



Lecture 08

Target of this lecture:

The main objectives of the lecture „Operations Control“ are:

• Getting an overview of tasks and goals of operations control

• Understanding problems and challenges regarding operations control

• Becoming acquainted with methods and strategies of operations control

• Push- and pull control

• Production requirement planning

• Lead time order- and capacity-based scheduling

• Capacity management

• Release strategies

• Kanban-method as an example of pull control

• Throughput time reduction



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Structure

Basics and challenges of operations control1

Tasks of operations control following the Aachen PPC-Model2



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Definition of Operations Control

Costs Minimization by Optimization of Production-Economical Objectives

- High Due-Date Reliability- Short Lead Times- High Capacity Utilization- Low Shelf Inventories and Float

Floor Stocks

- High Service Level- High Flexibility- Constant Capacity Load- High Level of Information- ...

Operations control:Operations control includes the arrangement for, the monitoring and

guaranteeing of quantity, deadline, quality, and cost

- Creation of programme and order- Determination of demand- Determination of deadline- Staging and task distribution

- Quantity and deadline- Quality- Budget accounting- Working conditions

- Intervention and modification to planning

- Quality management

Targe

t statusActual

status

Arrangement

Monitoring

Guaranteeing

ObjectivesTasks



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Multi-dilemma of Operations Control

Equal & high workload:

- High inventories

- Low capital

- High order capacity

Low capital commitment:

- Low stock of material

- short lead time

High delivery date reliability:

- High inventories

- High stock of material

- Low workload

Short lead time:

- Low stock of material

- High capacity

- Low workload

Lead time On-time delivery

Workload

Transfer tocapital lockup

Notes: Two challenges must be taken into account within the multi-dilemma of operations control:

• Conformity between workload in production (by customer orders respectively market specific orders) and own capital commitment.

• Adjustment of lead time of production orders with the scheduled delivery date. At this point the waiting within the lead time and the delivery date should be considered.



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Tasks of Production Planning & Control (PPC): The Aachen PPC-Model

In-plant production planning and

control

Procurement planning and

control

Data management

Production program planning

Production requirements planning

Network configuration

Network marketing

Network requirement planning

Network Tasks Cross-sectional tasksCore tasks

Ord

er c

oord

inat

ion

Inve

ntor

y M

anag

emen

t

PPC

-Con

trol

ling

(Source: Schuh 2006)

Notes:The function of the Production Planning and Control (PPC) is the time, capacity and quantitative planning and scheduling of the production and assembly (Eversheim 1989). Whereas the production planning has to organize the content and the single processes of the production and assembly, production control has to organize the operations in the production within the scope of order processing. The production control takes input from the production planning regarding the process sequence and associated logistics objectives.

The focus is on the company internal planning and control processes. Due to diverse customer demand, globalization of procurement, sales markets, substitution of goods and the increasing process of globalization, companies are under immense pressure to strengthen and focus on value adding processes in the whole supply chain. To cater this growing integration in the supply chain, the Aachen PPC Model has introduced in the network to manage the dependence.

The tasks of production planning and control can be divided into core tasks and cross-sectional tasks. While core tasks advance the order processing, cross-sectional tasks aid to integrate and optimize the production planning and control.

Core tasks are long term production program planning, medium term production requirement planning, short term in-plant production planning and control and short term procurementplanning and control. Cross-sectional tasks are order coordination, storage and the controlling of the ERP system itself.



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ERP Workflow (“Aachen PPC-Model”)

Proc

urem

ent

mar

ket

Customer order entry

Sale

s m

arke

t

Forecasting


Production requirements planning

In-plant production planning and control

Procurement planning and control

Procurement program

In-plant production

program

Production program

Requirements program

Dispatch handling Storage

Costing Pay calculation

Quality inspection

Construction/ Work scheduling

Ord

er c

oord

inat

ion

Notes:During the planning process, resources are planned with increasing level of detail and de-creasing planning horizon. The results of a planning step are input for the next step. Planning information is fed forward to the next planning step with the aid of a control loop. The core tasks of PPC can be shown in a flowchart.



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Subdivision of functions of the PPC/ERP

(Source : Luczak, Eversheim, 1997)

Primary requirement planningSales planning

Resource planning

Net secondary requirement determination

Production requirement planningGross secondary requirement determination

Allocation of kind of procurement

Capacity requirement calculationLead time scheduling

Capacity adjustment

Fine scheduling

Self-manufacturing planning and controlLot sizing

Detailed resource planning

Disposability planning Sequence planning

Order enabling

Offer evaluationOrder invoice

Vendor selectionSubscription enabling

Operations planning

Materials management


Procurement planning and control

Notes: Operations Control includes methods which are necessary for the processing of orders accor-ding to the results of work scheduling. One factor that influences operations control is the kind of dissolution of orders. In addition, the tasks of operations control are influenced by products, procurement, workflows in manufacturing and assembly and by customer changing priorities during manufacturing.

In spite of the different characteristics of the specific factors in different companies, core tasks and cross-sectional tasks of operations management can be identified in a universal concept. Core tasks are production program planning, production requirements planning, in-plant production planning and control and procurement planning and control.



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Co-Ordination Materials Management / Assembly Control

100 %

(Example company)(Source: Stolz)

70 %

17 %27 %

56 %

17 %13 %≤ 2

months

> 5months

2 - 5months

Quantity of object numbers

Inventoryvalue

100 %

91 %

Troubles in total

Missing parts58 %

Production faults19 %

Engineering faults14 %

Wrong parts4.5 %

Pre-assembly faults3 %

Other faults1.5 %

material

Total number: 13,944

Breakdowns in assembly Structure of inventory

Inventoryrange

Other troubles: 9 %

Notes: Operations Control and Materials Management can not be separated in the handling process of production assignments. The coordination of the non-physical information flow with the associa-ted physical flow of material is the core challenge of an effective production planning and scheduling.

A lack of coordination between materials management and production & assembly scheduling will result in a disturbance of the assembly even though high stock levels are available. These disturbances increase with an increase of variety and complexity of the products in combination with variation of demand.

In the graph is shown that 91% of production disturbances are caused by material problems, despite of the high inventory level (the stock suffices for 70% of the code numbers for more than 5 month). It is significant that 53% of the material conditional disturbances are due to missing parts. A better coordination between inventory management and assembly control can therefore reduce both the disturbance quota and inventory.



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Rough planning

shor

t

med

ium

lon

g

low

m

ediu

m

h

igh

Creation of production

order

BOM explosion and

material planning

Detailed capacity planning

Work distribution

Throughput and capacity scheduling

Creation of shop-floor

order

Program planning

Order planning

Production order

Shop-floor order

Planning horizon

Planning intensity

Customer order

Detailed planningMedium-term planning

„Information Gap“

„EffectivityGap“

t

Planning Tasks and Levels of Operations Control

(Source: Brankamp)

Operations Control

Notes: Production control is taking charge of the results of the production program plan as well as pro-duction requirement planning. Manufacturing orders as well as primary and secondary needs are available and contributed during the first step of job processing control, lead time and capa-city scheduling.

The planning process is carried out on several levels in order to keep the large volume of data under control. For planning on higher levels, aggregated data is used; planning on higher levels has a longer planning horizon. In contrast, planning on lower levels is short-term planning, but uses detailed data.

Two basic planning problems arise. The "information gap" exists in early planning phases since enough information for a more intensive and therefore more detailed planning is not available yet. The "effectivity gap" during the later fine planning expresses that detailed data for the planning is existing but the intervention possibilities are restricted due to the temporal closeness to the start of production.



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Characteristics of order types for Operations Control

Order types

Customer-anonymous

• Delivery ex stock

• Customer-anonymous production and assembly of lots for stock

• No customer demands

Customer-specific

• Delivery after running through engineering, operations planning, production, and assembly

• Nearly no stock or lot production

• All customer demands

Mixed

• Delivery determined by assembly time

• Production of basic components for stock, customer-specific production and assembly of variants

• Customer demands within the framework of combination

(Source: Wiendahl) see also PMA L8 „Material Management“

Notes: Based on the product and the present market situation, there are different types of solutions for an order. A producing company that needs to provide its goods on a continuous basis, will standardize its products and keep a high stock level. This results in a high level of capital costs. With an increasing customer orientation, the demand of time and capacity planning rises. The companies focus is to meet the delivery date on time.



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Types & framework of orders for a mechanical engineering company

(Source: Traub, 1991)

~~~

Customer order

120,000 / year100Assembly processes:

18,000 / year15Assembly orders:

1.2 mio. / year1,000In-house production parts:

3 mio. / year2,500Outsourced parts:

Yearly requirements:Framework of orders for one machine:

Production order

Shop-floor orderParts production

Shop-floor orderAssembly

1,200 Customer orders / yr.350 Machine types / yr.

Purchase order

Notes: The difficulties of operations control are caused by a high number of different parts to be pro-duced and obtained. A high number of orders which must be coordinated with regard to her completion appointments and capacity requirements results from it.

This problem is found particularly with complex products and customer-specific production. Normally there are so many operations necessary that even a mid-sized company needs the support of a PPC-system for its operations control.



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Basics and challenges of operations control

Tasks of operations control following the Aachen PPC-Model

Structure

1

2



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Principles and characteristics of Push-Pull-Control

Storing of components

Job progress

Push

Push

Storing of customer-independent products,

sale ex stock

Sale of customer-specific products

Sale of customer-specific products

Material procurement according to production

program

Customer-specific material procurement

Material procurement according to production

program

Legend:

Direction of flow transferred by operations management

Push

Pull

Pull

Delivery time Capital tie-up

Notes: The application of various methods depends on the product and/or order structure. The different types of the order triggering require different mechanisms of operations control. One distinguishes basically in Pull and Push control (Wiendahl):

1. Pull control (Pull)

Objective: Guarantee the availability of a certain quantity within one time period

Characteristics: Order release triggered by a customer demand towards the material flow; orders without closing date and job number; synchronization of input and output

2. Push control (Push)

Objective: Focus on completion on schedule

Characteristics: Order release triggered by a superior planning level; orders with closing date as well as job number; no synchronization of input and output

The limits of Pull and Push control circles have to be established specifically for every enterprise in dependence of capital relationship and desired delivery time. The structuring of products into assemblies and components without variant influence (neutral assemblies) supports the specification of these limits. Superordinated planning functions for long and short term planning are frequently affected by the push-principle and with approaching the start of production they are supplemented with control systems based on the pull principle.



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Effects of Push Control

(Example company)

Control flow (push control)

Control flow (pull control)

Market

Forecast

Order management

Purchasing

Supplier

Production

High inventories in case of bad availability of material

Inventory

Assembly

Order

PUSH

CONTROL

Notes: The application of the Push control principle means that a high inventory is necessary to make a custom-designed final assembly possible. This inventory grows with the increase of the diver-sity of variants since all variants must be on stock to meet the customer requirements.

Since the planned inventory depends strongly on the quality of the forecast of the customer demand, an overestimation of the demand causes a very high inventory level. If the forecast values are below the actual demand, a low inventory leads to low material availability. Therefore the choice of the right forecasting method for the respective products is of great importance (compare PMA L8 “Material management").



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Expansion of Pull-controlled production volume (example)

JIT = Just in time

Control flow (pull control)

Assembly

Pre-assembly

Final assembly

Order

Market

Forecast

Purchasing

JIT

Reduction of inventory of up to 30% with

simultaneous increase of availability of material

PUSH

CONTROL

PULL

CONTROL

Control flow (push control)

DEMAND-ACTUATED

CONSUMPTION-DRIVEN

Supplier / Cost centre Pre-assembly

Synchronized inventory

Notes:A synchronized assembly increases the planning flexibility in production and results in lower stock levels in the assembly area. It is useful to implement this measure if the assembly requires time and if high part value and/or part volume is involved.For example: air plane production: Supply of jet engines as late as possible

The assemblies and components which are necessary for the assembly are divided up into stock classes. They are manufactured (push controlled) without any direct relation to a customer order but according to there different use frequency. The corresponding variants are produced custom-designed (pull controlled) in the assembly from the stored assemblies and parts. The pull controlled assembly makes a lower inventory possible since only assemblies and parts must be stored.

The interface between pull and push control is called order penetration point.



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Tasks of the Production Requirement Planning

Production Program

Secondary demand planning

Gross secondary demand

Net secondary demand In stock components

Flow scheduling

Product structure Effective date for capacities

Technological requirements

Capacity demand Balancing/AdaptationCapacity

availability

Capacity planning

Requirement Program

70x

210x

50x

80x

20h Sawing

6h Drilling

10h Millcuttling

2h Sawing

6h Drilling

12h Millcutting

Materials management

Notes:The input information for the production requirement planning is the production plan. The production plan is the result of the production program planning. For a certain planning horizon for example a year the monthly lot size of the products or product parts are listed (planning pattern). The task of the production requirement planning is to secure the production program with adequate procurement programs. The considered resources (production factors) are production facilities, material (secondary demand), personal, transportation devices etc. that means everything that a production process incorporates.

Secondary demand planning calculates the actually needed amount of raw materials, parts and groups and matches them with the appropriate procurement type (in house production/outside supply). Finally the classical tasks of time management (lead time scheduling and medium range capacity planning) occur. These are the basic tasks of operations control and are the basis for the short term planning of in house production.



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Order- and Capacity-based Scheduling

A

B

C

Deadline overview Deadline overview

Phase 1(Focus: work-piece)

Phase 2(Focus: machine)

Order-based scheduling Capacity-based scheduling

Deadline plan

Order 1

1.1, 1.2, 1.3

Deadline plan

Order 1 1.1, 1.2, 1.3Order 2 2.2, 2.3Order 3 3.1, 3.2, 3.3

1.1 (e.g. sawing)

1.2 (e.g. drilling)

1.3 (e.g.milling)

Lead time for order 1

Wor

k sy

stem

s

Deadline

A

B

C

1.1

1.2

1.3

Lead time for order 1

Deadline

3.1

2.2 3.2

2.3 3.3

operation

Notes:When setting the dates for customer-oriented production, the start and completion dates for each step (operation) must be determined with the due date in mind. Various types and methods of date-setting are used.Within order-oriented scheduling, only the data relating to one order is taken into account. The basic scheduling methods (e.g. forward and back-ward scheduling )

Within capacity-oriented scheduling, the mutual dependency between orders and therefore between capacity limits is considered.

As a rule, at first order-oriented then capacity-oriented scheduling is conducted.

The results of lead time scheduling within production requirement planning are basic dates related to capacities respectively capacity groups. Later the actual state of charge can be taken into account (Wiendahl 1989).



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Lead Time Scheduling

Legend: Setup Time Operation Time Transitional Period

Combined SchedulingForward SchedulingBackward Scheduling

Distribution of Schedule Deviations

• Starting point is a fixed final date (e. g. desired delivery date of the customer)

• Calculation of the latest possible start date backwards from the final date

• If the calculated date is situated in the past, methods will be applied to reduce the lead time

• Starting point is a fixed start date• Calculation of the earliest possible final date

forward from the start date• Problem: material will be ordered too early⇒ Forward scheduling is only applied to

calculate the earliest possible delivery date, afterwards the latest start dates (and therefore order dates) are calculated with help of backward scheduling

• Starting point is a fixed centre date• Calculation of the latest possible start

date and the earliest possible final date• If the calculated date is situated in the

past, methods will be applied to reduce the lead time

• Application is useful, if the bottleneck capacities have to be taken into special account

Operations

Start Date (calculated)A100

A90A80

A70A60

A50A40 backwards

Final Date (fix)

Time

Operations

A100A90

A80

A60A50A50

A40

Start Date (fix)

Final Date (calculated)

A70

Timeforwards

Operations

forwardsbackwards

A100A90

A60A50

A40

Start Date (calculated)

Final Date (calculated)

A70A80

Time

Process Date for A90 (fix)

Notes:The (period based) supply orders and particularly the in-house production are planed in the lead time scheduling. Therefore each process step has a fixed date according to the production sequence. The lead time is comprised of the processing time (start up time and operation time) and the waiting time (standby time before and after the processing, control time and transport time). Depending on the planning method limited or unlimited capacities are taken into account for the scheduling. The latter one means that the constraints of available capacities are not yet considered. The planning basis for these tasks are work schedules and transfer matrices. In a transfer matrix planned values of the inter operation time for each transfer from one workstation to another workstation are listed. It can be differentiated between three different types of scheduling:

• Forward scheduling: The earliest due date is calculated based on a fixed start date

• Backward scheduling: The latest start date is calculated to fulfill the contract on time based on a fixed due date

• Combined scheduling: Based on a fixed starting point a forward scheduling into the future and a backward scheduling into the past is done. It is possible to start with any particular process when using the combined scheduling. For this process a fixed date can be planned. This method can be used if additional considerations such as bottleneck machine haves have to be taken into account.



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Load-dependent Order Release (BOA)

customer storage requirements

storage

knownbacklog

urgentbacklog

releasedbacklog

VH

regulative parameter “load limit"(Parameter reading in percentage EPS)

EPS

regulative parameter "deadline"(Parameter anticipation horizon

stock level

planned capacity

scheduling

Notes:Load-dependent order release (“Belastungsorientierte Auftragsfreigabe”, BOA) is a stochastic method. The controlling factor of this period-oriented method is the backlog in front of work stations, which is continuously calculated. Only those orders which have to be finished within a defined deadline are considered part of the urgent backlog. When an order is part of the urgent backlog, it will be checked if its load dues fit within a defined load limit.

Indirect load dues will be considered with a reduced load due according to their reduced arrival probability and their reduced load. If there is no capacity for any production step, the whole order will be retained.

The advantage of the BOA method is the high flexibility in case of varying order numbers.

However, there are problems in controlling orders that consist of many steps.



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Methods of reducing Production Throughput Time

Splitting of operations

Overlapping production

Combination of operations having the

same setting-up

Normal production cycle

t

Machining time

A 20 A 30A 10Order A

Setting-up time Transfer time

A 20/2 A 30A 10

A 20/1

t

t

A 20A 30

A 10

t

A 20A 10

tOrder B

A 30B50

t

t

avoid blocking of production resources

build part families / technology families

Notes:There are different possibilities of reducing the transmission delay of an order. When splitting operations e.g. a work step can be carried out at the same time on two machines instead of only one machine. Another method is overlapping the production, this means the next work step doesn't start after the completion of the whole lot but after the completion of just a part. Furthermore the setting-up of operations with the same set-up process can be added together for saving set-up times so that parts of order A are produced together with parts of order B.The allocation of orders to the individual workplaces results in queues. The sequence in which the orders are to be processed can be determined using priority rules in case the detailed shop-floor plans do not contain any exact specifications. Rules are selected depending on the objective.



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Alternativ

e-

machine optio

ns

Alternativ

e-

machine optio

ns

Load

Time

Technicalcapacity harmonization

Time

Time-based capacity harmonization

Time

Load

Alternativ

e

machine optio

ns

Machine AMachine B

Machine C

Machine AMachine B

Combination of technical and time-based capacity harmonization

Time- and machine-based harmonization of capacity

Notes:Within capacity planning, the distribution of activities among the individual units of capacity is optimized, under consideration of the load limitations. Capacity harmonization and capacity adjustment are possible measures.A further distinction is made between technical (e.g. parallel dispatching of an order on another machine) and time-based capacity harmonization (e.g. the same machine, but later dispatching).

In industrial practice, time-based and technical capacity harmonization operations are usually combined. Normally, the time-based harmonization is first, in order to retain optimum use of capacity in terms of both engineering and cost. Placing an order with an external company (extended work-bench principle) is a further option.



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occupied

free

Handling time

1. Cut within production


Transitional period Control periodStart-up of production A



Control period

Transitional period

Handling timeStart-up of production B

1. Day 2. Day 3. Day

1. Produktions-schnitt fürAuftrag B

2. Produktion-schnitt fürAuftrag B

Belegungdurch

Auftrag A

Belegungdurch

Auftrag C(Spittfaktor0)

FreiFrei1. Produktions-

schnitt fürAuftrag B

2. Produktion-schnitt fürAuftrag B

Belegungdurch

Auftrag A

Belegungdurch

Auftrag C(Spittfaktor0)

FreiFrei

1. cut within production for order B

2. cut within production for

order B

Occupied with order

A

Occupied with order C

(Split factor 0)

FreeFree

Cap

acity

of m

achi

ne 1

Capacity Management (PPC/ERP-system)

Notes: Handling time/ Transitional period/ Control periodHandling and control time mark constant values. Handling time is added before the start-up of a process operation, control time is added after the ending of an operation. Both factors do not occupy any capacity but they heighten the machining time.The transitional period indicates a time exposure that arises from product transport within manufacturing from one workplace to an other or from an effort conditional on production after a process operation (e.g. cooling, drying etc.).

Split factor (cut within production)If the temporal effort of production for one process operation cannot take place on a single work day because of lack of capacity or duration of the production, time has to be spread on one or several days. If such a splitting is not possible or only in parts because of production reasons, the splitting can be managed by depositing the split factor within the process operation.

Capacity factorUsually, the basic capacity of a workplace is deposited within the machine group with 100% of the available time. This available capacity can be reduced because of external factors such as machine's cooling times, breakdown time, frequency and maintenance. Therefore, additional capacity reserves for critical situations can be created.



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Measures for adapting the capacity

Selection and execution of measures geared to adapting to capacity

Internal influencing factors

External influencing factors

• effectiveness• duration• internal priority

• external priority• penalty • labour market• economic situation

Internal/ external alternative capacity

Overtime/ short-time working

K1

K2

K

Additional shift

2·K

K

InvestitionenInvestment

KK´

K ?

Notes:When the company-specific parameters change, e.g. expansion, acquisition of a new major customer etc., the capacity harmonization measures are generally not enough and it becomes necessary to adapt capacity to the changed parameters.



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Comparison of Order Release Strategies

Release strategy

Inventory

Date

Push control principlePull control principlePrinciple

Parameter

• Progress rate system (FZS)

• KANBAN

• Load-dependent order release (BOA)

• Material Requirement Planning (MRP I)

• Management Resource Planning (MRP II)

• Optimized Production Technology (OPT)

Notes:Different control strategies can be compared on the basis of control principle during the materials allocation on one hand and the control parameters on the other hand. Detailing of different release strategies will be discussed to a large extent in production management II.



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Use of the pull principle: Kanban method

KanbanCost center:Grindery

Part-Nr.

Partdescription

Container

Containercapacity

5135 - 371 Model-Typ

Appearance

Process(operation)

grindingbolt

Box

500 pieces

Storage depot-Nr. P371-3450

371

Kanban is a production control method using the pull control principle that makes permanent intrusions of a central control unit unnecessary. It is solely oriented at the customer demand.

Definition Kanban:

kan bannote, card

Notes: The Kanban method is based on decentralized, self-controlled loops. It is characterized by the following aspects:• Production starts as a reaction to a requirement notice from the next production level.• Flexible use of production facilities and personal balances fluctuation of requirement rate.• Buffer storage between production levels.• Kanban cards as information device between communicating sites.

Use:Introduced by Toyota the Kanban principle is used for the communication between different production levels in operations control. For example the supply of an assembly line with small parts or self produced components can be accomplished without the central PPC system.



Lecture 08

page 30© WZL/FIR

One card control circuit - sketch

Production kanban

5

1

2

34

6

7

Source Drain

Production kanban-collecting box

Buffer storage

Notes:To obtain the needed parts for the production, a worker from the drain moves with the empty containers to the buffer storage of the control circuit. He will place the empty containers in their intended places.

1. He takes the needed amount of full containers out of the buffer storage.

2. After the removal of the attached Kanban he places the Kanban Card in the Kanban collecting box.

3. Then he moves with the full containers to his work place and starts production.

4. A worker of the source takes a Kanban out of the Kanban collecting box. This Kanban is a production order for the source.

5. The worker of the source retrieves the container that is listed on the Kanban out of the buffer storage and moves to his workplace where he starts producing the needed parts.

6. The finished parts will be put in the empty container. Then he attaches a Kanban to the full container and delivers the container to the buffer storage where he places the container on the intended place that is mentioned on the Kanban.



Lecture 08

page 31© WZL/FIR

Advantages and disadvantages of Kanban

A small amount of buffer stock leads to a break in production of the following levels if a disruption occurs.

Highly fluctuating amounts are not controllable

Small multiplicity of variants/high amount of constant components

Disadvantages

Kanban

Advantages

Small amount of stocks

High service level and punctuality

Reduction of lead time

High transparency of flow of material

Low control costs

Low data management and production data collecting costs

Higher responsibility of the employees

Low stocks result in an accurateness of the employees



Lecture 08

page 32© WZL/FIR

Tasks of In-house Production Planning and Control

In-House Production Program

Lot Size Calculation

Shop Floor Program

Large Inventory,Non Flexibility

High Setup-Timesand Costs

Economical Manufacturing Lots for all Operations

Finite Operation Scheduling

OperationsOperation Timesand Transitional

Periods

Lead Time

Sequence PlanningQueue of Operations

Capacity or Capacity Group

Optimised Sequenceof Operations

130 13x10

th tnSawingDrillingMillcut.

15s 6s11s 8s14s 12s

SawingDrillingMillcutting

Operations planning

Notes:The planning result of the manufacturing orders based on the production requirement planning assures that the resources are available. The planned orders contain operations that are executed in different manufacturing sectors. Trough a finite resource planning the availability of the needed capacities can be secured. Capacity planning relies heavily on material management to provide the raw materials as planned in production.The internal production planning and scheduling particularizes the guidelines of the available material planning tolerance and the conversion is controlled. Manufacturing orders can be split into different lots. The calculation of the optional lot size is another task of the operations control (see PMA L8). The material planning tolerance is the difference between earliest and latest start date of the production and the allocation of the quantities to the manufacturing orders.

At the end of this planning the key task is to assign manufacturing orders to machines. The final order release can occur in a variety of possible algorithms.



Lecture 08

page 33© WZL/FIR

Composition of Throughput Time

(Source: Stommel)

Throughput time

Machining time (including setting-up)

Transport time

Control time

Queuing time

100 %

10 %

2 %

3 %

85 %

Queuing time caused by work process

Storing time

Queuing time caused by interruptionsQueuing time caused by persons

75 %

5 %

3 %

2 %

oa

Notes:Analyzing preferably job shop production organized manufacturing sectors shows, that the main part of lead times is not participate in productive progress. A big rationalization potential is lying in control of procedures by reducing high queuing times.



Lecture 08

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Share in Throughput Time of lots and units

time

Quantity

Setting-up Machining x Queuing time

(after machining) TransportQueuing time

(before machining)

Machin-ing yS

Throughput time (order)

Part I

Part II

Assembly

Machining time (Order) Transfer time

Throughput time (work process, lot)

Part n

Part 2

Part 1

Lot size

Transfer time (unit)Average throughput time (unit)

Machining time (unit)

(Source: Heinemeyer)

Notes:In the case of lot manufacturing, the actual proportion of unproductive time within the throughput time rises with increasing lot-size. In addition to the transition times between two operations, lot-size related waiting times within an operation can also be reduced.On the one hand a large lot size causes a short changeover time, but on the other hand all work pieces have to wait on each other. The determination of optimal lot size is not trivial.

See also PMA L8: Determination of the optimal lot size



Lecture 08

page 35© WZL/FIR

Use of Priority Rules for Sequence Planning

FCFS First come, first served

SPT Shortest processing time

RAN Random number per operation

RAND Random number per order

SROT Shortest remaining operation time

TERM Finish date

SLACK Slack time

LPT Longest processing time

OP/RE Operation time / remaining machining time

STRUN Shortest processing time with limitation of waiting time

S-SL SPT if slack time sufficient, otherwise SLACK

Queue of shop-floor orders Priority rules

Shop-floor order in

machining

Notes:Queues arise from the allocation of orders to the individual jobs/machines. The order of the orders to be worked on can be defined with the help of priority rules if the fine planning of the workshop doesn't find any exact specifications. The priority rules should be selected according to the aim.



Lecture 08

Final statement:

The objective of this lecture was to provide an overview regarding the following topics:

• Tasks and goals of operations control

• Functions of production planning and control

• Problems and challenges of operations control

• Characteristics and differences between pull- and push-control

• Functions of capacity- and order-based lead time scheduling

• Capacity planning in the framework of operations control

• Types and functions of release strategies

• Application of Kanban



Lecture 08

Questions:

• What are the main differences between push- and pull-control?

• What are the main objectives of operations control? Why are these objectives in competition?

• What types of lead time scheduling methods do you know? What are the differences?

• How would you describe the load-dependent order release strategy?

• Which elements does an one-card Kanban control circuit consist of?



Lecture 08

Bibliography:

Dangelmaier, W.; Warnecke, H.-J.: Fertigungslenkung: Planung und Steuerung des Ablaufs der diskreten Fertigung; Springer-Verlag; Berlin, 1997.

Eversheim, W.: Organisation in der Produktionstechnik, Band 4: Fertigungund Montage; VDI-Verlag; Düsseldorf, 1989.

Eversheim, W.: Organisation in der Produktionstechnik, Band 3: Arbeits-vorbereitung; Springer-Verlag; Berlin, 2002.

Eversheim, W.; Schuh, G.: Betriebshütte – Produktion und Management; Berlin; Springer-Verlag, 1996.

Hackstein, R.: Produktionsplanung und -steuerung (PPS); VDI-Verlag; Düsseldorf, 1989.

Lödding, H.: Verfahren der Fertigungssteuerung; Springer-Verlag; Berlin, Heidelberg, 2008.

Luczak, H.: Rationalisierung und Reorganisation (Skript zur Vorlesung); Eigendruck; Aachen, 2004.

REFA: Methodenlehre der Planung und Steuerung, Teil 3; Hanser-Verlag; München, 1985.

Schuh, G.: Produktionsplanung und -steuerung – Grundlagen, Gestaltung, Konzepte; 3. Auflage; Springer-Verlag; Berlin, 2006.

Wiendahl, H.-P.: Betriebsorganisation für Ingenieure; Hanser-Verlag; München, Wien, 2008.

Wiendahl, H.-P.: Fertigungsregelung – logistische Beherrschung von Fertigungsabläufen auf Basis des Trichtermodells; Hanser-Verlag; München, 1997.

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Laboratory for Machine Tools and Production Engineering · demand, globalization of procurement, sales markets, substitution of goods and the increasing process of globalization,