“Advance Concepts in OPC”

Presented By:-

SWAPNILKUMAR PAWAR(13253)

1

Contents

• OPC• Push –Pull Systems• KanBan • KanBan cards • Advantages• ConWIP model• TOC• Applications of TOC• IT in planning • Planning for services

2

What Is PPC?

•Production planning is the system for specifying the production procedure to obtain the desired output in a given time at optimum cost in conformance with specified standard of quality

•Control is essential to ensure that manufacturing takes place in the manner stated in the plan

3

Push And Pull Systems

Push Strategy Pull Strategy

Push-Pull

boundary

EndCustomer

RawMaterials

Supply chain time line

4

5

• Kanban is the Japanese word for card

• The card is an authorization for the next container of material to be produced

• A sequence of kanban pulls material through the process

• Many different sorts of signals are used, but the system is still called a kanban

6

ORIGIN• In late 1940’s Toyota was studying supermarkets• Customer can get what is needed, at the time

needed, in the amount needed• Supermarkets stock what it believes it will sell• Customers only take what they require • In 1953, Toyota applied this logic in their main

plant machine shop

7

1. User removes a standard sized container

2. Signal is seen by the producing department as authorization to replenish

Part Part numbers numbers mark mark locationlocation

Signal Signal marker on marker on boxesboxes

8

• When the producer and user are not in visual contact, a card can be used

• When the producer and user are in visual contact, a light or flag or empty spot on the floor may be adequate

• Since several components may be required, several different kanban techniques may be employed

9

• Usually each card controls a specific quantity or parts

• Multiple card systems may be used if there are several components or different lot sizes

• In an MRP system, the schedule can be thought of as a build authorization and the kanban a type of pull system that initiates actual production

10

• Need to know the lead time needed to produce a container of parts

• Need to know the amount of safety stock needed

Number of kanbansNumber of kanbans(containers)(containers)

Demand during Demand during SafetySafetylead timelead time ++ stockstockSize of containerSize of container==

11

Daily demand = 500 cakes

Production lead time = 2 days(Wait time + Material handling time + Processing time)

Safety stock = 1/2 day

Container size = 250 cakes

Demand during lead time = 2 days x 500 cakes = 1,000

Number of kanbans = = 51,000 + 2501,000 + 250

250250

12

• Reduce WIP

• Allow only limited amount of faulty or delayed material

• Problems are immediately evident

• Puts downward pressure on bad aspects of inventory

• Standardized containers reduce weight, disposal costs, wasted space, and labor

13

ADVANTAGES contd…• A simple and understandable process

• Provides quick and precise information

• Low costs associated with the transfer of information

• Avoids overproduction

• Is minimizing waste

14

Feature to develop Tasks in

queue

Tasks in progress

Tasks complete

Feature complete

KanBan Example

15

KanBan Boards

16

Constant Work In Process (CONWIP)

It is one of the variant of pull system.It is known for its ease of implementation.CONWIP systems are easier to implement and

adjust, since only one set of system cards is used to manage system WIP

For example, no part is allowed to enter the system without a card (authority). After a finished part is completed at the last workstation, a card is transferred to the first workstation and a new part is pushed into the sequential process route.

17

Assumptions for CONWIP

•The production line consist of single routine along which all parts flow.

•WIP can be measured in units, i.e. number of jobs or parts in the line.

18

A CONWIP Production Line.

19

COMPARISON

Sr. No Kanban CONWIP

1 Focuses on individual work station

Focuses on system as whole

2 Best in environment that is stable and predictable

Best in environment that has variability in production

3 Focuses on specific part no Does not focuses on specific part no

4 Comparatively difficult to implement

Easier to implement

5 Suitable for continuous or repetitive production

Suitable for job shop production

20

Theory Of Constraints(TOC)•Theory of Constraints (TOC) is an overall

management philosophy introduced by Dr. Eliyahu M. Goldratt in his 1984 book titled The Goal.

•A system's constraint "is that part of the system that constrains the objective of the system.“

•The TOC process of ongoing improvement seeks to identify the constraint and restructure the rest of the organization around it, through the use of the Five Focusing Steps

21

The Basic principles of TOC Convergence " that the more interconnected a system is the

fewer degrees of freedom it has, and consequently the fewer points must be touched (managed) to impact the whole system.

Consistency "If two interpretations of a natural

phenomenon are in conflict, one or possibly both must be wrong".

Respect this principle is states that people are not

inherently irrational.

22

BASIC PROCESSES1. Identify the constraint (the resource/policy that

prevents the organization from obtaining more of the goal)

2. Decide how to exploit the constraint (make sure the constraint's time is not wasted doing things that it should not do)

3. Subordinate all other processes to above decision (align the whole system/organization to support the decision made above)

4. Elevate the constraint (if required/possible, permanently increase capacity of the constraint; "buy more")

5. If, as a result of these steps, the constraint has moved, return to Step 1. Don't let inertia become the constraint.

23

Application of TOC

•Operations Drum-Buffer-Rope Simplified Drum-Buffer-Rope

•Supply chain / logistics TOC-Distribution TOC-VMI( Vendor Managed Inventory)

•Finance and accounting•Project management

A-Plants.•Marketing and sales

24

IT IN PLANNING Information technology is the term used to describe

technologies which enable users to record ,store ,process , retrieve ,transmit and receive information which helps the users for strategic planning and control of organization.

Information Technology Management is concerned with exploring and understanding Information Technology as a corporate resource that determines both the strategic and operational capabilities of the firm in designing and developing products and services for maximum customer satisfaction, corporate productivity, profitability and competitiveness.

25

IT IN PLANNING

•IT is playing a significant role in planning various activities in an organization ‘

•Due to IT we are able to store data in software and retrieve it at any time and anywhere through Internet.

•Organization is able to process data faster and more reliably.

26

IT IN PLANNING

Computer entry

Computer entry

Information system

Computer

Computer

Intranet

27

IT IN PLANNING

28

PLANNING FOR SERVICES

Service Management is integrated into Supply Chain Management as the joint between the actual sales and the customer

The aim of high performance Service Management is to optimize the service-intensive supply chains, which are usually more complex than the typical finished-goods supply chain.

Most service-intensive supply chains require larger inventories and tighter integration with field service and third parties.

29

BENEFITSHigh service costs can be reduced, i.e. by

integrating the service and products supply chain.

Inventory levels of service parts can be reduced and therefore reduce total inventory costs.

Customer service or parts/service quality can be optimized.

Increasing service revenue.Reduce obsolescence costs of service parts

through improved forecasting. Improve customer satisfaction levels.Reduce expediting costs - with optimized

service parts inventory, there is no need to rush orders to customers.

30

THANK YOU

31