Matthias Mekschrat h_DA WS 2012/13Logistical applications and optimizationsSlide 1 Logistical...

Matthias Mekschrat

h_DA WS 2012/13 Logistical applications and optimizations Slide 1

Logistical applications and optimizationsLogistical applications and optimizations

Matthias Mekschrat

h_DA WS 2012/13 Logistical applications and optimizations slide 2

overview

Introduction

November 02 - definition of business processes

November 16 - overview of logistical business processes

December 07 - functionality of production processes

January 18 - special problems within the supply chain handling

December 21 - functionality of sales and distribution processes

November 23 - functionality of purchase and supply processes

Matthias Mekschrat


Review on the last session

You have learned about vendor managed inventory as an example of purchase optimization

You have learned about the main functionality of purchase support processes 1. Marketplaces and e-procurement2. Vendor evaluation3. Supplier relationship management

You have developed a supply plan

You have learned about the main functionality of purchase execution processes 1. Purchase requirements2. Bidding3. Purchase order4. Delivery and payment

You have learned about the main parts of a material requirement planning1. Stock minus by forecast, sales orders or reservations2. Stock plus by production orders and purchase orders

You have developed an actual disposition list

Matthias Mekschrat


About this lecture

All sessions are split into 2 blocks: from 08:30 to 10:00 and from 10:15 to 11:45Each session starts with a short review of the last lectures subjects

Next I will give you a short theoretical overview of the days subject

Each group will then present the results of their discussions

I will present theoretical explanations for the discussed subjects

Then I will show a example solution for a potential written test question

Finally I will give a summary of the key messages for this session

Next you probably will develop 3 different subjects in a brainstorming session in 3 groups

Matthias Mekschrat


About the written test

The written test will NOT be on Friday, February 8th 2013 from 8:30 to 10:00

but on Friday, February 15th 2013 from 8:30 to 10:00

On Friday, March 1st 2013 from 12:00 to 13:30

we will invite the best participants of the test to a Business Lunch with Dr. Straub

(Head of EVONIK Applications Services)

Matthias Mekschrat


overview

Introduction

November 02 - definition of business processes

November 16 - overview of logistical business processes

December 07 - functionality of production processes

January 18 - special problems within the supply chain handling

December 21 - functionality of sales and distribution processes

November 23 - functionality of purchase and supply processes

Matthias Mekschrat


Functionality of production processes

Production planning

Production optimization

Short break

Part 1

Manufactoring execution

Part 2

Matthias Mekschrat


Production planning


Short break

Part 1


Part 2


Matthias Mekschrat


Functionality of production processes, Part 1

Production is the core process of any manufactoring company. Therefore a well design production IT process is a very high potential.

Problems and potentials

The coordination of production processes with other core logistical processes such as purchase, disposition, distribution and sales is essential for a lean supply chain organisation.

The „vertical integration“ provides the interaction of both production planning and production execution processes. The challenge and the aim is the fully IT covered „paperless production“

Matthias Mekschrat



Understand the important inputs and outputs of each component

Understand the main functionality of production planning system

Learning targets

Understand the involved acting logical business units

Understand the interaction with other processes

Understand the main functionality of production optimization system

Matthias Mekschrat


Plant CustomerStore TransportSupplier

Supply chain processes

Supply chain processes represent all main logistical activities for creation of value according to the business definition

Matthias Mekschrat


SalesProduction

planning andscheduling

Shipment and distribution

Purchasing

Logistical crossover processesLogistical crossover processes

Business support processesBusiness support processes

Supply chain processes

Matthias Mekschrat


Production planning


Short break

Part 1


Part 2


Matthias Mekschrat


Materials requirements planning (MRP)

Materials requirements planning (MRP)

Planned production orderPlanned production order

Production order Production order

Actual productionActual production

QM on produced materialQM on produced material

MRP lists

Goods Used

Material &

Quantity

Production

schedule

Release Certificate

Production planning

Delivered to stockDelivered to stock Goods Receipt

Matthias Mekschrat


Purchase

Requir. Materials Requirements Planning

(MRP)

Materials Requirements Planning (MRP)

Sales and Operations Planning(SOP)

Sales and Operations Planning(SOP)

Conversion of Planned OrdersConversion of Planned Orders

Release of Productionand Process Orders

Release of Productionand Process Orders

Actual ProductionActual Production

ConfirmationConfirmation

Production ControllingProduction Controlling

MRP lists

Goods

Receipt

Production Papers

Planned Order

Goods

Issue

Sales

OrderForecast

Time and Material

MESMES

Material Mangmt

Purchase

MM

CO

QM

Contr.

InspectionLot

InspectionLot

InspectionResults

InspectionResults

Sales

Production planning

Matthias Mekschrat


Sales orders and forecasts are the two entries into the MRP process

Sales and operations planning (Demand planning)

Sales orders are automatically delivered by the sales processes

Productions directly to stock without sales orders are usually on the basis of experience leading to a forecast

Forcast and sales orders are compensated

Production planning

Forcasts are usually done by sales departments in cooperation with at least the main customers

Forcasts might as well be based on mathematical models interpreting the sales historie and extrapolating the privious data

Matthias Mekschrat


Sales orders and forecasts are the two entries into the MRP process

Material requirement planning (MRP)

According to the BOM the MRP produces reservations on the next level of dispoosition

The MRP produces planned production orders or purchase requirements

Rules for lot sizes and production times are described in the master data

Usually the MRP is done by a disposition department

Production planning

Planned production orders and purchase requirements are the systems suggestions according to the existing master data

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With the conversion the status of the production operation is changed from suggestion to actual plan

Conversion of planned production orders

Usually the conversion of planned orders into production orders is done by a production department

Production planning

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With the release of a production order production papers are printed to be passed to the working floor for execution

Release of production orders

Usually the release of production orders is done by a production department

Production planning

With the release of a production order the preparation of the quality management is triggered too

With the release of a production order allocation of input material is triggered too

The release of production orders changes the status from „actual planned“ to „start working“

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With the confirmation of a production order the used time and material is booked and the stock is reduced

Conformation of production orders

Usually the conformation of production orders is done by a production department

Production planning

With the confirmation of a production order quality management is started

With the confirmation of a production order the produced amount of material is booked to the stock

The conformation of production orders changes the status from „start working“ to „working (partly) terminated“

While the quality management is in process, the produced material is kept pending in the quality check inventory

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With the controlling of a production order the moving internal average price of the material is adjusted

Production controlling

Production controlling usually is done by the controlling department

Production planning

Production controlling is based on the figures delivered to the system in the confirmation process

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Production planning


Short break

Part 1


Part 2


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SalesProduction

planning andscheduling

Shipment and distribution

Purchasing

Logistical crossover processes => advanced planning systems (APS)Logistical crossover processes => advanced planning systems (APS)

Business support processesBusiness support processes


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Production Production DistributionDistribution Sale Sale Purchase Purchase

Network Design (ND)Network Design (ND)

Supply Network Planning (SNP)Supply Network Planning (SNP)

ProcurementPlanning

ProcurementPlanning

Demand Planning (DP)

Demand Planning (DP)

Global ATP Global ATP

Transport. Planning

&Vehicle

Scheduling (TP/VS)

Transport. Planning

&Vehicle

Scheduling (TP/VS)

ProductionPlanning

&Detailed

Scheduling (PP/DS)

ProductionPlanning

&Detailed

Scheduling (PP/DS)

Lo

ng

Ter

m

Lo

ng

Ter

m

Mid

Ter

mM

id T

erm

Sh

ort

Te

rm

Sh

ort

Te

rm

DistributionPlanning

& Deployment

DistributionPlanning

& Deployment


Matthias Mekschrat


Demand Planning (DP)Demand Planning (DP)

Supply Network Planning (SNP)Supply Network Planning (SNP)

Transport Planning (TP/ VS)Transport Planning (TP/ VS)

Detailed Scheduling (DS)Detailed Scheduling (DS)

Production Planning (PP)Production Planning (PP)

DeploymentDeployment

Planning Horizon

Planning the supply chain with APS


Matthias Mekschrat


• Generation of detailled production plans

– Machine scheduling

• Methods

– Genetic Algorithm

– Constraint Programming

• Time horizon

– One week or one month, split into days or hours

– Rolling updates in hours

– Continous Scheduling

• Determination of valid working plans for workshops

Production Planning & Detailed Scheduling


Matthias Mekschrat


Process Orders R/3 Process Orders R/3

Manual Planning w/Excel

Release / Print

Process Orders APO

PP/DS Planning Table APO

Optimization APO

Alert Monitor APOManual Data Changes in R/3

Process Orders R/3

Release / Print

Comparison of manual planning and planning with APS


Matthias Mekschrat


Supply silos

Extruders

Personal

Transporttanks

Cattle

Warehouse

Filling at extrusion

in bags, small bundles or feed silos

Bagracking

Typical planning scenario with APS


Matthias Mekschrat


• „Bottom-Up“ APS implementation is a success factor

• Optimization automatically 1x daily or on demand is best practice

• Reduction of the „manual planning times„ around 80%

• Reduction of the buffer times at the demand point in time around 50%

• Comment of a planner on the planning quality: „We did not become worse!!„.

• High acceptance of advanced planning systems in the companies due to “low hanging fruits” as a quick business benefit

Typical experiences with APS


Matthias Mekschrat


Practical part: developing the subjectsGroup A: You produce 3 materials: B (Black) Y (Yellow) W (White) on only

one machineMaterial B is needed: 100 pc on 1.7. , 50 pc on 1.8. Lotsize is 50 in 10 daysMaterial Y is needed: 50 pc on 1.8. , 100 pc on 1.9. Lotsize is 100 in 10 daysMaterial W is needed: 50 pc on 1.7., 50 pc on 1.9. Lotsize is 50 in 10 daysCleaning time W after B is 10 days, W after Y is 10 days, Y after B is 10 daysCleaning time B after W or Y is 0 daysWhat is your production plan ?

1. you have 20 minutes for group discussion and writing down your ideas2. afterwards each group has 5 minutes for the presentation of your ideas3. your are free to use any presentation medium

Group B: You produce 3 materials: G (Grey) P (Pink) C (Clear) on only one machine

Material G is needed: 100 pc on 1.7. , 50 pc on 1.8. Lotsize is 50 in 10 daysMaterial P is needed: 50 pc on 1.8. , 100 pc on 1.9. Lotsize is 100 in 10 daysMaterial C is needed: 50 pc on 1.7., 50 pc on 1.9. Lotsize is 50 in 10 daysCleaning time C after P is 10 days, C after G is 10 days, P after G is 10 daysCleaning time G after C or P is 0 daysWhat is your production plan ?

Matthias Mekschrat


Example solution for a potential test task, Part 1

You produce 3 materials: B (Black) Y (Yellow) W (White) on only one machineMaterial B is needed: 200 pc on 1.7. , 100 pc on 1.8. Lotsize is 100 in 10 daysMaterial Y is needed: 100 pc on 1.8. , 200 pc on 1.9. Lotsize is 200 in 10 daysMaterial W is needed: 100 pc on 1.7., 100 pc on 1.9. Lotsize is 100 in 10 daysCleaning time W after B is 10 days, W after Y is 10 days, Y after B is 10 daysCleaning time B after W or Y is 0 daysWhat is your production plan ?

Start Type End Amount

1.6. Product W 10.6. 100

10.6. Product B 20.6. 100

20.6. Product B 1.7. 100

1.7. Cleaning 10.7.

10.7. Product Y 20.7. 200

20.7. Product B 1.8. 100

1.8. Cleaning 10.8.

10.8. Product W 20.8. 100

20.8. Product Y 1.9. 200

Matthias Mekschrat


Summary and key messages, Part 1

Production optimization very high and quick benefits

Literature1. Stadtler, Kilger – Supply chain management and advanced planning,

Springer Verlag, Berlin Heidelberg, 20002. Dangelmaier, Busch (Hrsg.) – (in german) Integriertes Supply Chain

Management, Gabler Verlag, Wiesbaden, 5/2004

The main challenge within production optimization is the modelling of the system

Reliable master and transaction data are indespensable

Production planning is mandatory for any Production optimization

Matthias Mekschrat


Production planning


Short break

Part 1


Part 2


Matthias Mekschrat



The link between production planning at the ERP level and production execution at the shop floor level is seldom realised

Problems and potentials

If the production planning and the production execution is connected mainly selfdeveloped interfaces are used

Matthias Mekschrat



Understand the important inputs and outputs of each component

Understand the needed components for a MES (Manufactoring Execution System)

Learning targets

Understand the involved acting logical business units

Understand the importance to customize the actual constellation

Understand the importance of standard interfaces to the ERP system

Matthias Mekschrat


Horizontal Integration

Materials Planning

Order Release

Confirmation Production Controlling

Production

Order Conversion

Enterprise Resource Planning

Production Control SystemsProduction Control Systems

Sales Order

Horizontal Integration

Electronic

Shiftbook

Electronic

Shiftbook

LIMSLIMS

Detailed

Production-

documents

Detailed

Production-

documents

Process Flow

Operations

Process Flow

Operations

Deployment

planning

Deployment

planning

Historical

Machine-data

and Control-data

Historical

Machine-data

and Control-data

Resource-

planning

Resource-

planning

Batch

Handling

Batch

Handling

Manual Inventory

Management

Manual Inventory

Management

Detailed

Scheduling

Detailed

Scheduling

Production execution

Matthias Mekschrat


QMControl

QMControl

History +Efficiency-analysis

History +Efficiency-analysis

Genealogy +Batch Tracing

Genealogy +Batch Tracing

PDCPDCDocumentsAdministration

DocumentsAdministration

LIMS

Available

Capacity

Personnelpower Flow-

control

Flow-control

Detailed

Production

Planning

Detailed

Production

Planning

APS

BW

ERP (R/3)

MES

Process

Management

Process

Management PCS

Plant MaintenanceManagement

Plant MaintenanceManagement

Resources


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Typical MES scenario

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Process messages as kernel of MES functionality

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Maintenance management

Maintenance of tools and machines periodical or preventive maintenance Spare part procurement

QM

Monitoring the production quality Integration in LIMS

Document administration

job instruction Drawings production papers


Typical MES fuctionality

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Available Capacity

employees (time- and attendance recording, also completion confirmation)

resources

Process management

Production monitoring in a pokier senseDescision support in case of errorMachine controlCan be adopted by MES, but also through FLS



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Sequential control

monitoring and control of the production flow

product tracking Batch tracing Tracing of components

Genealogy and batch tracing

conditioning and archiving of operating data Analysis of resource workload and –availability Key Performance Indicator (KPI)

History and Service analysis



Matthias Mekschrat


closing the gap between office- and machinery world increase of the efficiency, flexibility, competitive position, delivery reliability MES provides the vertical integration between business economics and production + logistics augments operational readiness of the manufacturing facilities by

abbreviated response times in exceptional cases online coupling of business economics and production enables completely continious business processes complete integration of IT by grouping of single solutions

and definined interfaces between ERP – MES – FLS simple integration of new functions resp. connection of new

production plans advanced & optimized process flows wider, transparent pools increase of the decision certainty


Benefits by using a MES system

Matthias Mekschrat


Flexible expansion Analysis-, planning- and simulation options Integration of existing application scenery well-engineered technical solutions Investment- and implementation effort running operation expenses acceptance of the users


Criteria on requirements for the asortment of MES

Matthias Mekschrat


Summary and key messages, Part 2

Literature1. Stadtler, Kilger – Supply chain management and advanced planning,

Springer Verlag, Berlin Heidelberg, 20002. Dangelmaier, Busch (Hrsg.) – (in german) Integriertes Supply Chain

Management, Gabler Verlag, Wiesbaden, 5/2004

MES is the mayor challenge to integrate the shop floor and the ERP systems

The interfaces are the most complicated structures and should be provided by the supplier of the MES systems

The functionality of MES systems may very according to the supplier

The functionality must be selectable according to the users demand

Matthias Mekschrat


Thank you very much for your participationThank you very much for your participation

…… and see you on Friday, 21st of December…… and see you on Friday, 21st of December

Matthias Mekschrat h_DA WS 2012/13Logistical applications and optimizationsSlide 1 Logistical...

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