Industrial and logistics management. - Industrial Management · THE MAIN PRODUCTION PROCESS ISthe...

KARPENKO HELENAPROFESSOR

INTERNATIONAL MANAGEMENT DEPARTMENT

BELARUSIAN STATE UNIVERSITY

COURSE: PRODUCTION AND LOGISTIC MANAGEMENT

tel.: +375 29 679-16-18 e-mail: emkarpenko@mail.ru skype: emkarpenko

LITERATURE

Hill, T. Manufacturing Strategy: Text and Cases (Boston: IrwinMcGraw-Hill, 2000)

Deming, W. Quality, Productivity, and Competitive Position (Boston: MIT Center for engineering

study, 1982)

Monczka, R.,Trent, R., and Handfield, R., Purchasing and Supply Chain Management, 5thed

(Cincinnati,OH: South-western College Publishing, 2011)

Haksever, C., Render, B. Service Management: An Integrated Approach to Supply Chain

Management and Operations, 1/E (FT Press, 2013)

Wilson, R. Operations Manager's Toolbox, The: Using the Best Project Management Techniques to

Improve Processes and Maximize Efficiency, 1/E (FT Press 2013)

Chapman, S. Fundamentals of Production Planning and Control, 1/E (Prentice Hall , 2006)

Amrine, H., Ritchey, J. Manufacturing Organization And Management, 6/E Prentice Hall , 1993)

Сачко, H.С. Организация и оперативное управление машиностроительным производством (Минск: Новое знание , 2005)

Новицкий, H.И., Пашуто, В.П. Организация, планирование и управление производством (М.: Финансы и статистика, 2007)

CONTENTS

1. Concept and structure of the production process

2. Production cycle

3. Inventory management systems

4. Production backlogs

5. Logistics concepts

CONCEPT AND STRUCTURE OF THE PRODUCTION PROCESS

Chapter 1

THE PRODUCTION PROCESS

IS a summation of logically related activities and operations, as a

result of which there is a conversion of the original production resources into finished products

The living labor is the basic element of production process, so every production process is labor process

production resources finished products

STRUCTURE OF THE PRODUCTION PROCESS

Workers movement

Technological methods

Technological transitions

Manufacturing operations

Manufacturing steps

Private production processes

Total production process

Total production process consists of a summation of private manufacturing processes

TYPES OF PRIVATE PRODUCTION PROCESSES:

the main production process;

the accessory production process;

the service production process

THE MAIN PRODUCTION PROCESS

IS the part of the production process, as a result of which there is a

change in the shape, size, internal structure and properties of the starting raw materials and their transformation into finished products

FOR EXAMPLE

Process of manufacturing parts and assembly of subunits, units and finished products on the machine-building enterprises called the main production process

THE ACCESSORY PRODUCTION PROCESS

IS the manufacturing processes of such products which are not the

main products of the company and are used in the realization of the main production products

FOR EXAMPLE

Manufacture of tools and tooling, spare parts for the repair of equipment, means of mechanization and production of various types of energy

THE SERVICE PRODUCTION PROCESS

IS the processes to ensure the provision of production services,

which are necessary for the main and accessory processes

FOR EXAMPLE

In-plant transportation, warehouse operations, operations on repair and

maintenance of equipment, etc.

TRENDS IN THE DEVELOPMENT OR PRIVATE PRODUCTION PROCESSES

Tighter integration accessory and service processes with the main, especially in computer-aided manufacturing

The extensive use of outsourcing arrangements

MANUFACTURING STEP

IS relatively isolated part of it, as a result of which the objects of

labor go into a qualitatively new state

raw materials

billet detailsfinal

product

Harvesting stage is the first step of the production process: raw materials are converted into billets for future details

Manufacturing stage is connected with the transformation of billets into details

At the assembly stage details arranged in separate units and finished products

Finished product receives final characteristics on the adjustment and tuning stage

TYPES OF MANUFACTURING STEPS

MANUFACTURING OPERATIONS

IS the separate part of the production process which is performed

at one workplace without readjustment

TYPES OF MANUFACTURING OPERATIONS,

the role: basic and accessory

the degree of influence on the object of labor: technological and non-technological

the degree of technical equipment: manual, partly and fully mechanized, partly and fully automatic

according to:

THE BASIC METHODS OF THE ORGANIZATION OF PRODUCTION PROCESSES

Process control methods should ensure minimization of the production costof production. These methods could be different. It depends on:

the industry affiliation of the enterprise, the scope of its activity, used forms of specialized departments, other factors

THE BASIC PRINCIPLES OF THE ORGANIZATION OF PRODUCTION PROCESSES

The basic principles are the same for all kinds of production processes,regardless of their individual specificity:

the principle of differentiation and specialization, the principle of concentration and integration, the principle of proportionality, the principle of the continuous-flow, the principle of continuity, the principle of parallelism, the principle of rhythm, the principle of automaticity, standardization principle, flexibility principle

TYPE OF PRODUCTION PROCESSES

is the organizational and technical characteristics of the production system,which expresses its individual features:

the breadth of the product range, the volumes of identical products, the frequency of changes in product mix, the nature of the specialization of jobs and production units, the predominant type of process equipment, the predominant method of construction of the production process in time

THE MAIN TYPES OF PRODUCTION PROCESSES

small-scale medium-scale large-scale

Mass/FlowOne off

TYPES OF PRODUCTION. COEFFICIENTS

coefficient of specialization of jobs , factor seriality, mass factor

COEFFICIENT OF SPECIALIZATION OF JOBS

where𝑚𝑑𝑜 - the number of operations of technological process carried out in this division;

𝐶𝑗 - the number of jobs ( pieces of equipment ) in this division

𝐶𝑠𝑗 =𝑚𝑑𝑜𝐶𝑗

FACTOR SERIALITY

where 𝑟 - exhaust stroke products, min/pcs;

𝑡𝑎𝑣 - average part time operations process, min

𝐶𝑠𝑒𝑟 =𝑟

𝑡𝑎𝑣

𝑟 =𝑟

𝑁where 𝐹𝑒𝑓 - an effective fund-time work for a

period, min;

𝑁 - the volume of production for theperiod, pcs

𝑡𝑎𝑣 = 𝑖=1𝑚 𝑡𝑝𝑖

𝑚where 𝑚 - the number of process operations;

𝑡𝑝𝑖 - piece execution time of i-th

operation, min

MASS FACTOR

where𝑚 - the number of process operations;

𝑟 - exhaust stroke products, min/pcs;

𝑡𝑝𝑖 - piece execution time of i-th operation, min

𝐶𝑚 = 𝑖=1𝑚 𝑡𝑝𝑖

𝑚 ∙ 𝑟

ONE OFF PRODUCTION

is a release of small amounts of a

wide range of products thatdoesn’t provide the repetition ofthe annual production program

universaltechnological

equipment

wide skillworkers

sequentialcombinationof operations

small scaleand

maximumflexibility

Coefficient of specialization of jobs >40

BATCH PRODUCTION

is production limited range of

products in small volumes andrepeated over time in batches BATCH

PRODUCTION

small-scale medium-scale large-scale

SMALL-SCALE PRODUCTION

is repetition of the release partyof similar products at specificintervals

universaltechnological

equipment

wide skillworkers

sequentialcombinationof operations

small scaleand

maximumflexibility

Coefficient of specialization of jobs = 40–20Factor seriality >10Mass factor <0,05

MEDIUM-SCALE PRODUCTION

is rhythmic release of fairly largebatches of similar products

specialized procurement departments

specialization of workers

series-parallelcombinationof operations

annual range for the whole year is bigger

than for a month

Coefficient of specialization of jobs = 20–10Factor seriality = 20–10Mass factor = 0,05–0,1

LARGE-SCALE PRODUCTION

a small range of products release large volumes of identical products steady rhythm of alternation of parties

special technological

equipment

parallelcombinationof operations

annual range for the whole year and for a month are the

Coefficient of specialization of jobs = 10–1Factor seriality = 10–2Mass factor = 0,1–0,05

MASS PRODUCTION

is stable, continuous release of

large amounts of a narrow rangeof products of the same type

Coefficient of specialization of jobs =<1Factor seriality =1Mass factor =1

comprehensive automation

parallelcombination of

operations

annual range for the whole year and for a month are the

THE RATE OF RETURN OF BASIC PRODUCTIVE RESOURCES

It’s getting bigger from a single production to mass, because of:

the use of high-performance specialized equipment and tooling the increase in special qualification skills of workers to perform certain

operations the use of more intensive production technologies; better implementation of design and technological preparation of

production the increased use of automation equipment

PRODUCTION CYCLE Chapter 2

PRODUCTION CYCLE

is the construction of the production process in

time (the specific ordering of its individual

elements)

THE MAIN CHARACTERISTICS OF THE PRODUCTION CYCLE

The duration of the production cycle is calendar time

interval during which all steps of the production process are

performed.

Structure of the production cycle depends on

the industry characteristics of production,

the production structure of the enterprise,

the degree of complexity of manufactured products,

operations management, other factors

THE OVERALL STRUCTURE OF THE PRODUCTION CYCLE

Time for technological operations: the time during which the

structure and properties of the objects of labor are changed

Time for non-technological operations: the duration of

auxiliary process

Piece-time: the work of equipment and production staff

on the product manufacturing

Set-up time: the work on readjustment and change of

tooling

Natural processes characterize those manufacturing

operations that do not require the participation of

industrial workers:

cooling parts after heat treatment

drying products after the different types of coverage

natural aging of materials

Breaks between batches: the time during which

batch of details is waiting for its processing queue

Expectation-breaks may be caused by natural

processes

Gathering-breaks: the time during which details are

waiting for end processing of other details for transport

to another operation

THE MAIN WAYS TO REDUCE THE DURATION OF THEPRODUCTION CYCLE

The purpose is to enhance production flexibility and to

minimize the amount of current assets of the enterprise

In mass production the ways are:

reducing time of work processes

reducing the time of natural processes

removing various breaks

REDUCING THE DURATION OF TECHNOLOGICAL OPERATIONS

intensification of technological operations through the

introduction of high-speed methods of processing and the

concentration of certain operations

replacement of technological operations (use more productive

operations)

complex mechanization and automation of production

improving manufacturability of products on the basis of

standards of their separate parts and assemblies

REDUCING THE DURATION OF SET-UP OPERATIONS

application of advanced methods of tooling change

increasing the use universal technological devices

perform activities on changeover of equipment

outside of working shifts and breaks between shifts

REDUCING THE DURATION OF TRANSPORT OPERATIONS

redevelopment of departments and sections to

increase the continuous-flow production process

mechanization and automation of loading and

transport operations

increasing the use objective form of specialization of

production units

REDUCING THE DURATION OF CONTROL OPERATIONS

optimization the use of control plans

optimization of controlled samples of objects of labor sizes

increasing use of self-control of production workers

combination of technological and control operations

automation of control operations

REDUCING THE BREAKS BETWEEN OPERATIONS

resizing transfer batches of labor objects

increasing the use of parallel and series-parallel

ways of combining operations

synchronization of the duration of the individual

operations performed at the same workplace

REDUCING THE BREAKS BETWEEN DEPARTMENTS

development objective form of specialization

production departments

transition to more advanced systems of operations

management

REDUCING THE BREAKS BETWEEN SHIFTS

changing of the enterprise working mode

PRODUCTION PROCESS

simple

production process that do not

involve performing any

assembly operations

production process that

contain assembly operations

complex

SIMPLE PRODUCTION PROCESS

PRODUCTION CYCLE

serial/ consecutive

parallelserial-

parallel

CONDITION

Number of operation (No) Piece-time, min (t)

n = 6 pieces

How many time have workers

to make 6 details?

1 worker for 1 operation

The objects of labor are transferred between operations the

whole party at once. Processing on each subsequent operation

starts only after the end of treatment to the last detail in theprevious operation

ADVANTAGE: continuous load jobs on each operation

DISADVANTAGE: the maximum duration of the

production cycle

SERIAL TYPE

THE DURATION OF THE TECHNOLOGICAL CYCLE

𝑇𝑐 = 6 ∙ 4 + 2 + 3 = 6 ∙ 9 = 54

𝑇𝑐 = 𝑛 ∙

𝑖=1

𝑡𝑖

SERIAL TYPE

PARALLEL TYPE

Parts are moved from one operation to another immediately after

processing (regardless of the completion time of related

operations)

ADVANTAGE: the shortest duration of technological

cycle, balanced load of workers and equipment and the

high working efficiency

DISADVANTAGE: reduction of the return of basic

productive resources

PARALLEL TYPE

where 𝑝- sizeofthetransportparty, pcs.

𝑇𝑐 = 𝑛 − 𝑝 ∙ 𝑡𝑚𝑎𝑥 + 𝑝 ∙

𝑖=1

𝑡𝑖

PARALLEL TYPE

𝑇𝑐 = 𝑛 − 𝑝 ∙ 𝑡𝑚𝑎𝑥 + 𝑝 ∙

𝑖=1

𝑡𝑖

PARALLEL TYPE

𝑇𝑐 = 6 − 1 ∙ 4 + 1 ∙ 4 + 2 + 3 = 29

PARALLEL TYPE

𝑇𝑐 = 𝑛 − 𝑝 ∙ 𝑡𝑚𝑎𝑥 + 𝑝 ∙

𝑖=1

𝑡𝑖

PARALLEL TYPE

𝑇𝑐 = 6 − 2 ∙ 4 + 2 ∙ 4 + 2 + 3 = 34

SERIAL-PARALLEL TYPE

the objects of labor is transferred between operations in parties,

processing of such parties begin when the necessary supply of

work in progress will have accumulated in the workplace

ADVANTAGE: continuous manufacturing process and

relatively low production cycle

DISADVANTAGE: increasing the duration of the

production cycle as compared with a parallel

SERIAL-PARALLELTYPE

where 𝑡min(𝑖,𝑖+1)- thedurationoftheleastlabor-

intensiveoperationsfrom pair: i-thoperationandthe (i+1)-

thoperation, min.

𝑇𝑐 = 𝑛 ∙

𝑖=1

𝑡𝑖 − 𝑛 − 𝑝 ∙

𝑖=1

𝑚−1

𝑡min(𝑖,𝑖+1)

𝑇𝑐 = 𝑛 ∙

𝑖=1

𝑡𝑖 − 𝑛 − 𝑝 ∙

𝑖=1

𝑚−1

𝑇𝑐 = 6 ∙ 4 + 2 + 3 − 6 − 1 ∙ 2 + 2 = 34

SERIAL-PARALLELTYPE

p = 21

𝑇𝑐 = 𝑛 ∙

𝑖=1

𝑡𝑖 − 𝑛 − 𝑝 ∙

𝑖=1

𝑚−1

𝑇𝑐 = 6 ∙ 4 + 2 + 3 − 6 − 2 ∙ 2 + 2 = 38

CONDITION

Number of operation (No) Piece-time,min (t)

How much time have

workers

to make 6 details?

SERIAL TYPE

If parts processing is carried out at the same time at several

workplaces for one or more operations we should use this formula

for serial technological cycle:

where 𝐶𝑝𝑖 - the number of workers on the i-th operation

𝑇𝑐 = 𝑛 ∙

𝑖=1

𝑚𝑡𝑖𝐶𝑝𝑖

THE DURATION OF THE TECHNOLOGICAL CYCLESERIAL TYPE

𝑇𝑐 = 𝑛 ∙

𝑖=1

𝑇𝑐 = 6 ∙4

𝑇𝑐 = 𝑛 − 𝑝 ∙𝑡

𝐶𝑝 𝑚𝑎𝑥

+ 𝑝 ∙

𝑖=1

PARALLEL TYPE

𝑇𝑐 = 𝑛 ∙

𝑖=1

𝑚𝑡𝑖𝐶𝑝𝑖− 𝑛 − 𝑝 ∙

𝑖=1

𝑚−1𝑡

𝐶𝑝 𝑚𝑖𝑛 𝑖,𝑖+1

CONDITION

Number of

operation (No)

Piece-time, min

How much time

have workers

to make 4 details?1 2

1 Serial type 1 Serial type

2 Parallel type (p=1) 2 Parallel type (p=2)

3 Serial-parallel type

the duration

of the technological

the time required for control and transport

operations

different breaks

THE PRODUCTION

THE DURATION OF THE PRODUCTION CYCLE

where 𝑡𝑏 - theaveragedurationofbreak between operations, min.

𝑇- thedurationofnaturalprocesses, min.

𝑇𝑐𝑝𝑟= 𝑛 ∙

𝑖=1

𝑚𝑡𝑖𝐶𝑝𝑖+𝑚 ∙ 𝑡𝑏 + 𝑇

SERIAL TYPE

𝑇𝑐𝑝𝑟= 𝑛 − 𝑝 ∙

𝐶𝑝 𝑚𝑎𝑥+ 𝑝 ∙

𝑖=1

𝑚𝑡𝑖𝐶𝑝𝑖+𝑚 ∙ 𝑡𝑏 + 𝑇

PARALLEL TYPE

𝑇𝑐𝑝𝑟= 𝑛 ∙

𝑖=1

𝑚𝑡𝑖𝐶𝑝𝑖− 𝑛 − 𝑝 ∙

𝑖=1

𝑚−1𝑡

𝐶𝑝𝑚𝑖𝑛 𝑖,𝑖+1

+𝑚 ∙ 𝑡𝑏 + 𝑇

PRODUCTION PROCESS

production process that

contain assembly operationscomplex

Finished item

Node №1

Sub-Node №1.1

Detail №1.1.1

Detail №1.1.2

Detail №1.1.3

Sub-Node

№1.2

Node №2 Node №3

THE FAN CHART Finished item

Node №1

Sub-Node №1.1

Detail №1.1.1

Detail №1.1.2

Detail №1.1.3

Sub-Node

№1.2

Node №2 Node №3

THE FAN CHARTFinished item

Node 1

Sub-Node 1.1

Detail 3

Detail 4

Sub-Node 1.2

Detail 5

Detail 6

Node 2

Detail 1

Detail 2

Name of

operation

shifts

Number of

workplaces

The total

number of

GA 2 6

N-1 1 6

N-2 1 2

SN-1.1 1 2

SN-1.2 2 4

D-1 1 2

D-2 2 2

D-3 1 6

D-4 2 2

D-5 2 2

D-6 2 2

CONDITIONS

THE ORIGINAL VARIANT OF CYCLIC CHART

GAN-1SN-1.1

SN-1.2

N-2D-1

Limit of

6 jobs666

THE ORIGINAL CHART OF JOBS IN THE ASSEMBLY SHOP

Limit of

8 jobs

THE ORIGINAL CHART OF JOBS IN THE MECHANICAL SHOP

THE CYCLIC GRAPH AFTER THE FIRST OPTIMIZATION

GAN-1SN-1.1

SN-1.2

N-2D-1

Limit of

6 jobs666 66

THE ORIGINAL CHART OF JOBS IN THE ASSEMBLY SHOP

AFTER THE FIRST OPTIMIZATION

Limit of

8 jobs

AFTER THE FIRST OPTIMIZATION

THE CYCLIC GRAPH AFTER THE SECOND OPTIMIZATION

GAN-1SN-1.1

SN-1.2

N-2D-1

Limit of

8 jobs

AFTER THE SECOND OPTIMIZATION

THE FAN CHART. №2 Finished item

Node 1

Sub-Node 1.1

Detail 2

Detail 3

Detail 4

Sub-Node 1.2

Detail 5

Detail 6

Detail 7

Detail 1

Name of

operation

shifts

Number of

workplaces

GA 2 4

N-1 1 4

SN-1.1 1 2

SN-1.2 2 2

D-1 2 6

D-2 2 2

D-3 1 4

D-4 1 2

D-5 1 2

D-6 2 4

D-7 1 2

CONDITIONS. №2

INVENTORY MANAGEMENT SYSTEMS Chapter 3

INVENTORY

Raw Materials

Bought out components

Work in process- or

intermediate goods

Finished Goods

Maintenance, Repair and operating supplies

REASONS FOR KEEPING INVENTORIES:

to stabilize production

to take advantage of price discounts

to meet the demand during the replenishment period

to prevent loss of orders (sales)

to keep pace with changing market conditions

TYPES OF INVENTORY MANAGEMENT

SYSTEMS

Intensity of consumption of resources

determined systems

stochastic systems

Fixed subjects to control

with the fixed order volume

with the fixed frequency

(rhythm) of orders

without fixing the volume

and frequency of orders

1 The intensity of the consumption of material

resources takes on any value within a certain

specified time

1 DETERMINED INVENTORY

MANAGEMENT SYSTEM

2 STOCHASTIC INVENTORY

MANAGEMENT SYSTEM

2 The intensity of the consumption of material

resources is a random variable that can be

described by statistical law

DETERMINED INVENTORY MANAGEMENT SYSTEMSWITH THE FIXED ORDER VOLUME

intensity of resource consumption from a warehouse can change,

accepting any value in an interval (Imin; Imax),

time of order fulfillment by the supplier and delivery batch size

are the fixed parameters

The order point is the inventory level at which the supplier should

order the next batch of resources:

maxofop IТQ

where Qop – order point size;

Tof – duration of the order fulfillment by the supplier period;

Imax – the greatest possible intensity of resource consumption

The reserve stock characterizes such amount of a warehouse stock

which remains in stock by the time of receipt from the supplier of the

next batch:

where Qres – the size of a reserve resource stock in stock;

Imin – minimum possible intensity of resource consumption

IIТIТIТQQ minmax

ofminmax

ofmaxofavofopres

The maximum resource warehouse stock determines the required

storage capacity of the warehouse:

when Qmax – the size of maximum resource warehouse stock;

Zo – the accepted size of the ordered party of a resource

ominmaxofominofopmax ZIIТZIТQQ

THE SCHEDULE OF INVENTORY A RESOURCE MANAGEMENT IN SYSTEM WITH THE FIXED ORDER VOLUME

where Zstr – storage costs of materials;

Zr – the costs connected with purchases

min rstrgen ZZZ

The choice of the optimum size of the purchased batch:

DETERMINATION OF THE OPTIMUM ORDER VOLUME

ADVANTAGES:

it allows the entity to buy resources batches of such size

which to it is economically most profitable,

only the nature of the resource expenditure directly during

the execution of the order is important

DISADVANTAGE:

it is very important to set a date when you want to make

an order for the next batch of material resources

DETERMINED INVENTORY MANAGEMENT SYSTEMSWITH THE FIXED FREQUENCY OF ORDERS

parameters of resources use intensity (Imin; Imax) and time of

order fulfillment by the supplier are set,

frequency of supply is fixed

The size of the maximum resource warehouse stock:

when Тdp – the accepted period between deliveries of resource parties

maxdpmax IТQ

The size of the next batch:

where Zavdel – the average settlement size of the next delivery lot of

a resource;

Qcur – the current remaining balance of a resource in stock at the time of implementation of the order;

Iav – average intensity of resource consumption

avofcurmax

del IТQQZ

The size of reserve resource:

avmaxdpavdpmaxdpavdpmaxres IIТIТIТIТQQ

THE SCHEDULE OF INVENTORY A RESOURCE MANAGEMENT IN SYSTEM WITH THE FIXED FREQUENCY OF ORDERS

ADVANTAGES: an opportunity to group several various orders in standard

intervals of time for minimization of transportation costs,

the limited list of suppliers or close connection of the entity with

separate of them

DISADVANTAGES: this system doesn't give to the entity the chance to work with

batches of the optimum size

in case of this purchasing system can't be performed earlier

fixed term, the risk of premature exhaustion of inventories

increases

DETERMINED INVENTORY MANAGEMENT SYSTEMSWITHOUT FIXING THE VOLUME AND FREQUENCY OF ORDERS

parameters of resources use intensity (Imin; Imax) and stock

replenishment time are set,

the sizes of the ordered batches of resources and frequency of

their purchase aren't fixed

The size of an order point:

maxIТQ ofop

The reserve stock :

IIТIТQQ minmax

ofavofopres

The size of the next batch:

avofтзop

del IТQQZ

THE SCHEDULE OF INVENTORY A RESOURCE MANAGEMENT IN THE COMBINED SYSTEM

ADVANTAGES / DISADVANTAGES: combined inventory management systems are the most

flexible and in view of the simplicity, presentation and theminimum number of the parameters fixed in the agreement

PRODUCTION BACKLOGS Chapter 4

PRODUCTION BACKLOGS

ARE details and nodes of the work in progress. They might be

at various production process stages

• OPERATION 1

DETAIL 1

• OPERATION 2

SUBNODE 1

• OPERATION 3

NODE 1

1 INTERNAL BACKLOGS 2 PASSING

BACKLOGS

1. Internal backlogs pass a complete cycle of the forming and use for

one period of the line turnover. For the beginning and the end of

such period backlogs of this type are equal to zero.

2. The passing backlogs pass a complete cycle of the change for the

period, bigger one period of the line turnover. For the beginning and

the end of such period their absolute value is other than zero.

FROM PASSING BACKLOGS TO INTERNAL. TOOLS:

changing of terms of the beginning and completion of workplaces work on adjacent transactions of the line;

expansion of work scope on the most difficult and labor-consuming transactions

FORMS OF MOTION OF DETAILS

• Parallel form takes place in that case when details at once after the end of their handling on the previous transaction are by the piece transferred to the subsequent transaction

PARALLEL

• Serial form of motion is characterized by the fact that in case of its use transfer of details on the subsequent transaction happens a single batch of each working shift in the beginning.

SERIAL

• Serial-parallel form of motion in general is similar to serial and differs in the fact that transfer of details happens not one, and several times for change by batches of smaller amount.

SERIAL-PARALLEL

according to the taken form of the labor object motion, total calculation of an average turnover backlog size for all transactions of a flow line is carried out on the following algorithms…

CALCULATION OF PRODUCTION BACKLOGS

Time of

one shift

480 min.

PRODUCTION BACKLOGS: PARALLEL TYPE

PRODUCTION BACKLOGS. PARALLEL TYPE

OPERATION 1

OPERATION 2

480 min = 100%

𝑍1−2𝐼 = +

0,2 ∙ 480

1,2∙ 2 −0,2 ∙ 480

1,8∙ 1 = +160 − 53 = +107

𝑍1−2𝐼 = +

𝑇𝐼𝑆𝑊1∙ 𝐿𝐼 −

𝑇𝐼𝑆𝑊2∙ 𝐿𝐼𝐼

OPERATION 1

OPERATION 2

480 min = 100%

BACKLOG_1+107

𝑍1−2𝐼𝐼 = +

0,8 ∙ 480

1,2∙ 1 −0,8 ∙ 480

1,8∙ 2 = +320 − 427 = −107

𝑍1−2𝐼𝐼 = +

𝑇𝐼𝐼𝑆𝑊1∙ 𝐿𝐼 −

𝑇𝐼𝐼𝑆𝑊2∙ 𝐿𝐼𝐼

OPERATION 1

OPERATION 2

480 min = 100%

BACKLOG_1+107 -107

OPERATION 2

OPERATION 3

480 min = 100%

I II III

𝑍2−3𝐼 = +

0,2 ∙ 480

1,8∙ 1 −0,2 ∙ 480

1,8∙ 2 = +53 − 106 = −53

𝑍2−3𝐼 = +

OPERATION 2

OPERATION 3

480 min = 100%

I II III

BACKLOG_2 -53

𝑍2−3𝐼𝐼 = +

0,6 ∙ 480

1,8∙ 2 −0,6 ∙ 480

1,8∙ 2 = +320 − 320 = 0

𝑍2−3𝐼𝐼 = +

OPERATION 2

OPERATION 3

480 min = 100%

I II III

BACKLOG_2 -53

𝑍2−3𝐼𝐼𝐼 = +

0,2 ∙ 480

1,8∙ 2 −0,2 ∙ 480

1,8∙ 1 = +106 − 53 = +53

𝑍2−3𝐼𝐼𝐼 = +

𝑇𝐼𝐼𝐼𝑆𝑊1∙ 𝐿𝐼 −

𝑇𝐼𝐼𝐼𝑆𝑊2∙ 𝐿𝐼𝐼

OPERATION 2

OPERATION 3

480 min = 100%

I II III

BACKLOG_2 -53 +53

OPERATION 3

OPERATION 4

480 min = 100%

𝑍3−4𝐼 = +

0,8 ∙ 480

1,8∙ 2 −0,8 ∙ 480

1,2∙ 1 = +427 − 320 = +107

𝑍3−4𝐼 = +

OPERATION 3

OPERATION 4

480 min = 100%

BACKLOG_3+107

𝑍3−4𝐼𝐼 = +

0,2 ∙ 480

1,8∙ 1 −0,2 ∙ 480

1,2∙ 2 = +53 − 160 = −107

𝑍3−4𝐼𝐼 = +

OPERATION 3

OPERATION 4

480 min = 100%

BACKLOG_3-107+107

OPERATION 4

OPERATION 5

480 min = 100%

𝑍4−5𝐼 = +

0,8 ∙ 480

1,2∙ 1 −0,8 ∙ 480

0,8∙ 1 = +320 − 480 = −160

𝑍4−5𝐼 = +

OPERATION 4

OPERATION 5

480 min = 100%

BACKLOG_4 -160

𝑍4−5𝐼𝐼 = +

0,2 ∙ 480

1,2∙ 2 −0,2 ∙ 480

0,8∙ 0 = +160 − 0 = +160

𝑍4−5𝐼𝐼 = +

OPERATION 4

OPERATION 5

480 min = 100%

BACKLOG_4 -160 +160

PRODUCTION BACKLOGS. PARALLEL TYPE. V2

OPERATION 4’

OPERATION 5’

480 min = 100%

I II III

𝑍4′−5′𝐼 = +

0,2 ∙ 480

1,2∙ 1 −0,2 ∙ 480

0,8∙ 0 = +80

𝑍4′−5′𝐼𝐼 = +

0,6 ∙ 480

1,2∙ 1 −0,6 ∙ 480

0,8∙ 1 = −120

𝑍4′−5′𝐼𝐼𝐼 = +

0,2 ∙ 480

1,2∙ 2 −0,2 ∙ 480

0,8∙ 1 = +40

OPERATION 4’

OPERATION 5’

480 min = 100%

I II III

BACKLOG_4 -120

PRODUCTION BACKLOGS: SERIAL TYPE

PRODUCTION BACKLOGS. SERIAL TYPE

OPERATION 1

OPERATION 2

BACKLOG_1.1+160

BACKLOG_1.2

𝑍1𝐼 = +0,2 ∙ 480

1,2∙ 2 = +160

𝑍1𝐼𝐼 = +

0,8 ∙ 480

1,2∙ 1 = +320

+320480

𝑍2𝐼 = −0,2 ∙ 480

1,8∙ 1 = −53

𝑍2𝐼𝐼 = −

0,8 ∙ 480

1,8∙ 2 = −427

PRODUCTION BACKLOGS. SERIAL TYPEI II

BACKLOG_1.1+160

BACKLOG_1.2

+320480

BACKLOG_1

PRODUCTION BACKLOGS: SERIAL-PARALLEL TYPE

PRODUCTION BACKLOGS. SERIAL-PARALLEL TYPE

OPERATION 1

OPERATION 2

BACKLOG_1.1+160

𝑍1𝐼 = +0,2 ∙ 480

1,2∙ 2 = +160

𝑍1𝐼𝐼 = +

0,8 ∙ 480

1,2∙ 1 = +320+320

𝑍2𝐼 = −0,2 ∙ 480

1,8∙ 1 = −53

𝑍2𝐼𝐼 = −

0,8 ∙ 480

1,8∙ 2 = −427

BACKLOG_1.2

-53 -427

320+160

PRODUCTION BACKLOGS. SERIAL-PARALLEL TYPE

BACKLOG_1

BACKLOG_1.1+160

BACKLOG_1.2

-53 -427

320+160

LOGISTICS CONCEPTS Chapter 5

LOGISTICS CONCEPTS:

Just-in-time manufacturing

Supply Chain Management

Lean Manufacturing

JUST-IN-TIME MANUFACTURING

The phase just in time is used to because this system operates with low WIP (Work-In-Process) inventory and often with very low finished goods inventory.

Products are assembled just before they are sold, subassemblies are made just before they are assembled and components are made and fabricated just before subassemblies are made.

This leads to lower WIP and reduced lead times. To achieve this organizations have to be excellent in other areas e.g. quality.

JUST-IN-TIMEMANUFACTURING

JUST-IN-TIME MANUFACTURING

IS production methodology which aims to improve overall productivity through elimination of waste and which leads to improved quality

Any process or a set of activities that do not add value as perceived by the customer is classified as waste.

JUST-IN-TIME MANUFACTURING. SEVEN WASTES

1. Waste of over production eliminate by reducing set-up times, synchronizing quantities and timing between processes, layout problems. Make only what is needed now.

2. Waste of waiting eliminate bottlenecks and balance uneven loads by flexible work force and equipment.

3. Waste of transportation establish layouts and locations to make handling and transport unnecessary if possible. Minimize transportation and handling if not possible to eliminate.

4. Waste of processing itself question regarding the reasons for existence of the product and then why each process is necessary.

JUST-IN-TIME MANUFACTURING. SEVEN WASTES

5. Waste of stocks reducing all other wastes reduces stocks.

6. Waste of motion study for economy and consistency. Economy improves productivity and consistency improves quality. First improve the motions, then mechanize or automate otherwise. There is danger of automating the waste.

7. Waste of making defective products develop the production process to prevent defects from being produced, so as to eliminate inspection. At each process, do not accept defects and makes no defects. Make the process fail-safe. A quantify process always yield quality product.

BENEFITS OF JUST-IN-TIME MANUFACTURING:

1. product cost — is greatly reduced due to reduction of manufacturing

cycle time, reduction of waste and inventories and elimination of non-

value added operation;

2. quality — is improved because of continuous quality improvement

programmes;

3. design — due to fast response to engineering change, alternative

designs can be quickly brought on the shop floor;

4. productivity improvement;

5. higher production system flexibility;

6. administrative and ease and simplicity

SUPPLY CHAIN MANAGEMENT

IS defined as the integration-oriented skills required for providing competitive advantage to the organization that are basis for successful supply chains.

DECISIONS IN A SUPPLY CHAIN

Supply chain management involves proactively managing the two-way movement and coordination (that is, the flows) of goods, services, information, and funds from raw material through end user.

A company with a "supply chain orientation" is one that recognizes the strategic value of managing operational activities and flows across a supply chain.

SUPPLY CHAIN DESIGN

If reflects the structure of the supply chain over the next several years. It decides what the chain's configuration will be, how resources will be allocated, and what processes each stage will perform.

SUPPLY CHAIN PLANNING

In the planning phase, companies define a set of operating policies that govern short-term operations and are normally determined on an annual basis. These decisions are made within the supply chain's configuration.

SUPPLY CHAIN OPERATION

At the operational level, within planning policies, the goal is to handle incoming customer orders in the best possible manner.

Firms allocate inventory or production to individual orders, set a date that an order is to be filled, generate pick lists at a warehouse, allocate an order to a particular shipping mode and shipment, set delivery schedules of trucks, and place replenishment orders

LEAN MANUFACTURING

This System integrates the ‘routine’ work of producing and delivering products, services and information with ‘problemidentification and process improvement’. It is an extension of supply chain concept based on a systematic elimination of unproductive activities identified as wastes.

TOOLS OF LEAN MANUFACTURING:

Pull System,

Kanban Cards,

Kaizen

comprehensive approach to managing collaborative work systems that allows frequent fine grained problem identification and improvement in overall organizational structure, coordinated mechanisms and task performance.

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