KARPENKO HELENAPROFESSOR
INTERNATIONAL MANAGEMENT DEPARTMENT
BELARUSIAN STATE UNIVERSITY
COURSE: PRODUCTION AND LOGISTIC MANAGEMENT
tel.: +375 29 679-16-18 e-mail: [email protected] 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
Batch
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
specialization of workers
parallelcombinationof operations
annual range for the whole year and for a month are the
same
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
specialization of workers
parallelcombination of
operations
annual range for the whole year and for a month are the
same
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
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
THE OVERALL STRUCTURE OF THE PRODUCTION CYCLE
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
etc.
THE OVERALL STRUCTURE OF THE PRODUCTION CYCLE
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)
1 4
2 2
3 3
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
SERIAL TYPE
1
2
3
THE DURATION OF THE TECHNOLOGICAL CYCLE
𝑇𝑐 = 6 ∙ 4 + 2 + 3 = 6 ∙ 9 = 54
𝑇𝑐 = 𝑛 ∙
𝑖=1
𝑚
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
p = 1
1
2
3
THE DURATION OF THE TECHNOLOGICAL CYCLE
where 𝑝- sizeofthetransportparty, pcs.
𝑇𝑐 = 𝑛 − 𝑝 ∙ 𝑡𝑚𝑎𝑥 + 𝑝 ∙
𝑖=1
𝑚
𝑡𝑖
PARALLEL TYPE
THE DURATION OF THE TECHNOLOGICAL CYCLE
𝑇𝑐 = 𝑛 − 𝑝 ∙ 𝑡𝑚𝑎𝑥 + 𝑝 ∙
𝑖=1
𝑚
𝑡𝑖
PARALLEL TYPE
𝑇𝑐 = 6 − 1 ∙ 4 + 1 ∙ 4 + 2 + 3 = 29
PARALLEL TYPE
p = 2
1
2
3
THE DURATION OF THE TECHNOLOGICAL CYCLE
𝑇𝑐 = 𝑛 − 𝑝 ∙ 𝑡𝑚𝑎𝑥 + 𝑝 ∙
𝑖=1
𝑚
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
p = 1
1
2
3
THE DURATION OF THE TECHNOLOGICAL CYCLE
where 𝑡min(𝑖,𝑖+1)- thedurationoftheleastlabor-
intensiveoperationsfrom pair: i-thoperationandthe (i+1)-
thoperation, min.
𝑇𝑐 = 𝑛 ∙
𝑖=1
𝑚
𝑡𝑖 − 𝑛 − 𝑝 ∙
𝑖=1
𝑚−1
𝑡min(𝑖,𝑖+1)
SERIAL-PARALLEL TYPE
THE DURATION OF THE TECHNOLOGICAL CYCLE
𝑇𝑐 = 𝑛 ∙
𝑖=1
𝑚
𝑡𝑖 − 𝑛 − 𝑝 ∙
𝑖=1
𝑚−1
𝑡min(𝑖,𝑖+1)
SERIAL-PARALLEL TYPE
𝑇𝑐 = 6 ∙ 4 + 2 + 3 − 6 − 1 ∙ 2 + 2 = 34
SERIAL-PARALLELTYPE
p = 21
2
3
THE DURATION OF THE TECHNOLOGICAL CYCLE
𝑇𝑐 = 𝑛 ∙
𝑖=1
𝑚
𝑡𝑖 − 𝑛 − 𝑝 ∙
𝑖=1
𝑚−1
𝑡min(𝑖,𝑖+1)
SERIAL-PARALLEL TYPE
𝑇𝑐 = 6 ∙ 4 + 2 + 3 − 6 − 2 ∙ 2 + 2 = 38
CONDITION
Number of operation (No) Piece-time,min (t)
1 4 2
2 2 1
3 3 1
n = 6
How much time have
workers
to make 6 details?
SERIAL TYPE
1a
2
3
1b
THE DURATION OF THE TECHNOLOGICAL CYCLE
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
𝑚𝑡𝑖𝐶𝑝𝑖
𝑇𝑐 = 6 ∙4
2+2
1+3
1= 42
THE DURATION OF THE TECHNOLOGICAL CYCLE
𝑇𝑐 = 𝑛 − 𝑝 ∙𝑡
𝐶𝑝 𝑚𝑎𝑥
+ 𝑝 ∙
𝑖=1
𝑚𝑡𝑖𝐶𝑝𝑖
PARALLEL TYPE
THE DURATION OF THE TECHNOLOGICAL CYCLE
𝑇𝑐 = 𝑛 ∙
𝑖=1
𝑚𝑡𝑖𝐶𝑝𝑖− 𝑛 − 𝑝 ∙
𝑖=1
𝑚−1𝑡
𝐶𝑝 𝑚𝑖𝑛 𝑖,𝑖+1
SERIAL-PARALLEL TYPE
CONDITION
Number of
operation (No)
Piece-time, min
(t)
1 2
2 3
3 1
4 2
n = 4
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
(p=2)
3 Serial-parallel type
(p=1)
the duration
of the technological
cycle
the time required for control and transport
operations
different breaks
THE PRODUCTION
CYCLE
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
THE DURATION OF THE PRODUCTION CYCLE
𝑇𝑐𝑝𝑟= 𝑛 − 𝑝 ∙
𝑡
𝐶𝑝 𝑚𝑎𝑥+ 𝑝 ∙
𝑖=1
𝑚𝑡𝑖𝐶𝑝𝑖+𝑚 ∙ 𝑡𝑏 + 𝑇
PARALLEL TYPE
THE DURATION OF THE PRODUCTION CYCLE
𝑇𝑐𝑝𝑟= 𝑛 ∙
𝑖=1
𝑚𝑡𝑖𝐶𝑝𝑖− 𝑛 − 𝑝 ∙
𝑖=1
𝑚−1𝑡
𝐶𝑝𝑚𝑖𝑛 𝑖,𝑖+1
+𝑚 ∙ 𝑡𝑏 + 𝑇
SERIAL-PARALLEL TYPE
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
Work
shifts
Number of
workplaces
The total
number of
jobs
GA 2 6
6
N-1 1 6
N-2 1 2
SN-1.1 1 2
SN-1.2 2 4
D-1 1 2
8
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
D-2
D-3
D-4
D-5
D-6
6 66
2
2
44
6
22
22
22
22
2
Limit of
6 jobs666
4
8
THE ORIGINAL CHART OF JOBS IN THE ASSEMBLY SHOP
Limit of
8 jobs
4
6
4
10
THE ORIGINAL CHART OF JOBS IN THE MECHANICAL SHOP
THE CYCLIC GRAPH AFTER THE FIRST OPTIMIZATION
GAN-1SN-1.1
SN-1.2
D-3
D-4
D-5
D-6
6 662
44
6
22
22
22
N-2D-1
D-2
2
22
2
N-2D-1
D-2
2
22
2
Limit of
6 jobs666 66
THE ORIGINAL CHART OF JOBS IN THE ASSEMBLY SHOP
AFTER THE FIRST OPTIMIZATION
Limit of
8 jobs
6
10
THE ORIGINAL CHART OF JOBS IN THE MECHANICAL SHOP
AFTER THE FIRST OPTIMIZATION
8
THE CYCLIC GRAPH AFTER THE SECOND OPTIMIZATION
GAN-1SN-1.1
SN-1.2
D-3
D-4
D-5
D-6
6 662
44
6
22
22
22
N-2D-1
D-2
2
22
2
D-1
2
Limit of
8 jobs
8
THE ORIGINAL CHART OF JOBS IN THE MECHANICAL SHOP
AFTER THE SECOND OPTIMIZATION
88
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
Work
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
ets.
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
DETERMINED INVENTORY MANAGEMENT SYSTEMSWITH THE FIXED ORDER VOLUME
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
DETERMINED INVENTORY MANAGEMENT SYSTEMSWITH THE FIXED ORDER VOLUME
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
2
IIТ
2
IIТIТIТQQ minmax
ofminmax
ofmaxofavofopres
DETERMINED INVENTORY MANAGEMENT SYSTEMSWITH THE FIXED ORDER VOLUME
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
DETERMINED INVENTORY MANAGEMENT SYSTEMSWITH 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
Z0
Зr
Costs
Stock
Zgen
Zstr
DETERMINED INVENTORY MANAGEMENT SYSTEMSWITH THE FIXED 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
DETERMINED INVENTORY MANAGEMENT SYSTEMSWITH THE FIXED FREQUENCY OF ORDERS
The size of the maximum resource warehouse stock:
when Тdp – the accepted period between deliveries of resource parties
maxdpmax IТQ
DETERMINED INVENTORY MANAGEMENT SYSTEMSWITH THE FIXED FREQUENCY OF ORDERS
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
av
del IТQQZ
DETERMINED INVENTORY MANAGEMENT SYSTEMSWITH THE FIXED FREQUENCY OF ORDERS
The size of reserve resource:
avmaxdpavdpmaxdpavdpmaxres IIТIТIТIТQQ
THE SCHEDULE OF INVENTORY A RESOURCE MANAGEMENT IN SYSTEM WITH THE FIXED FREQUENCY OF ORDERS
DETERMINED INVENTORY MANAGEMENT SYSTEMSWITH 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
DETERMINED INVENTORY MANAGEMENT SYSTEMSWITH THE FIXED FREQUENCY OF ORDERS
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
DETERMINED INVENTORY MANAGEMENT SYSTEMSWITHOUT FIXING THE VOLUME AND FREQUENCY OF ORDERS
The size of an order point:
maxIТQ ofop
The reserve stock :
2
IIТIТQQ minmax
ofavofopres
DETERMINED INVENTORY MANAGEMENT SYSTEMSWITHOUT FIXING THE VOLUME AND FREQUENCY OF ORDERS
The size of the next batch:
avofтзop
av
del IТQQZ
THE SCHEDULE OF INVENTORY A RESOURCE MANAGEMENT IN THE COMBINED SYSTEM
DETERMINED INVENTORY MANAGEMENT SYSTEMSWITHOUT FIXING THE VOLUME AND FREQUENCY OF ORDERS
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
So,
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
W1
W2
W2
W3
480 min = 100%
I II
PRODUCTION BACKLOGS. PARALLEL TYPE
𝑍1−2𝐼 = +
0,2 ∙ 480
1,2∙ 2 −0,2 ∙ 480
1,8∙ 1 = +160 − 53 = +107
𝑍1−2𝐼 = +
𝑇𝐼𝑆𝑊1∙ 𝐿𝐼 −
𝑇𝐼𝑆𝑊2∙ 𝐿𝐼𝐼
PRODUCTION BACKLOGS. PARALLEL TYPE
OPERATION 1
OPERATION 2
W1
W2
W2
W3
480 min = 100%
I II
BACKLOG_1+107
PRODUCTION BACKLOGS. PARALLEL TYPE
𝑍1−2𝐼𝐼 = +
0,8 ∙ 480
1,2∙ 1 −0,8 ∙ 480
1,8∙ 2 = +320 − 427 = −107
𝑍1−2𝐼𝐼 = +
𝑇𝐼𝐼𝑆𝑊1∙ 𝐿𝐼 −
𝑇𝐼𝐼𝑆𝑊2∙ 𝐿𝐼𝐼
PRODUCTION BACKLOGS. PARALLEL TYPE
OPERATION 1
OPERATION 2
W1
W2
W2
W3
480 min = 100%
I II
BACKLOG_1+107 -107
00
PRODUCTION BACKLOGS. PARALLEL TYPE
OPERATION 2
OPERATION 3
W2
W3
W4
W5
480 min = 100%
I II III
PRODUCTION BACKLOGS. PARALLEL TYPE
𝑍2−3𝐼 = +
0,2 ∙ 480
1,8∙ 1 −0,2 ∙ 480
1,8∙ 2 = +53 − 106 = −53
𝑍2−3𝐼 = +
𝑇𝐼𝑆𝑊1∙ 𝐿𝐼 −
𝑇𝐼𝑆𝑊2∙ 𝐿𝐼𝐼
PRODUCTION BACKLOGS. PARALLEL TYPE
OPERATION 2
OPERATION 3
W2
W3
W4
W5
480 min = 100%
I II III
BACKLOG_2 -53
PRODUCTION BACKLOGS. PARALLEL TYPE
𝑍2−3𝐼𝐼 = +
0,6 ∙ 480
1,8∙ 2 −0,6 ∙ 480
1,8∙ 2 = +320 − 320 = 0
𝑍2−3𝐼𝐼 = +
𝑇𝐼𝐼𝑆𝑊1∙ 𝐿𝐼 −
𝑇𝐼𝐼𝑆𝑊2∙ 𝐿𝐼𝐼
PRODUCTION BACKLOGS. PARALLEL TYPE
OPERATION 2
OPERATION 3
W2
W3
W4
W5
480 min = 100%
I II III
BACKLOG_2 -53
PRODUCTION BACKLOGS. PARALLEL TYPE
𝑍2−3𝐼𝐼𝐼 = +
0,2 ∙ 480
1,8∙ 2 −0,2 ∙ 480
1,8∙ 1 = +106 − 53 = +53
𝑍2−3𝐼𝐼𝐼 = +
𝑇𝐼𝐼𝐼𝑆𝑊1∙ 𝐿𝐼 −
𝑇𝐼𝐼𝐼𝑆𝑊2∙ 𝐿𝐼𝐼
PRODUCTION BACKLOGS. PARALLEL TYPE
OPERATION 2
OPERATION 3
W2
W3
W4
W5
480 min = 100%
I II III
BACKLOG_2 -53 +53
00
PRODUCTION BACKLOGS. PARALLEL TYPE
OPERATION 3
OPERATION 4
W4
W5
W5
W6
480 min = 100%
I II
PRODUCTION BACKLOGS. PARALLEL TYPE
𝑍3−4𝐼 = +
0,8 ∙ 480
1,8∙ 2 −0,8 ∙ 480
1,2∙ 1 = +427 − 320 = +107
𝑍3−4𝐼 = +
𝑇𝐼𝑆𝑊1∙ 𝐿𝐼 −
𝑇𝐼𝑆𝑊2∙ 𝐿𝐼𝐼
PRODUCTION BACKLOGS. PARALLEL TYPE
OPERATION 3
OPERATION 4
W4
W5
W5
W6
480 min = 100%
I II
BACKLOG_3+107
PRODUCTION BACKLOGS. PARALLEL TYPE
𝑍3−4𝐼𝐼 = +
0,2 ∙ 480
1,8∙ 1 −0,2 ∙ 480
1,2∙ 2 = +53 − 160 = −107
𝑍3−4𝐼𝐼 = +
𝑇𝐼𝐼𝑆𝑊1∙ 𝐿𝐼 −
𝑇𝐼𝐼𝑆𝑊2∙ 𝐿𝐼𝐼
PRODUCTION BACKLOGS. PARALLEL TYPE
OPERATION 3
OPERATION 4
W4
W5
W5
W6
480 min = 100%
I II
BACKLOG_3-107+107
00
PRODUCTION BACKLOGS. PARALLEL TYPE
OPERATION 4
OPERATION 5
W5
W6
W7
480 min = 100%
I II
PRODUCTION BACKLOGS. PARALLEL TYPE
𝑍4−5𝐼 = +
0,8 ∙ 480
1,2∙ 1 −0,8 ∙ 480
0,8∙ 1 = +320 − 480 = −160
𝑍4−5𝐼 = +
𝑇𝐼𝑆𝑊1∙ 𝐿𝐼 −
𝑇𝐼𝑆𝑊2∙ 𝐿𝐼𝐼
PRODUCTION BACKLOGS. PARALLEL TYPE
OPERATION 4
OPERATION 5
W5
W6
W7
480 min = 100%
I II
BACKLOG_4 -160
PRODUCTION BACKLOGS. PARALLEL TYPE
𝑍4−5𝐼𝐼 = +
0,2 ∙ 480
1,2∙ 2 −0,2 ∙ 480
0,8∙ 0 = +160 − 0 = +160
𝑍4−5𝐼𝐼 = +
𝑇𝐼𝐼𝑆𝑊1∙ 𝐿𝐼 −
𝑇𝐼𝐼𝑆𝑊2∙ 𝐿𝐼𝐼
PRODUCTION BACKLOGS. PARALLEL TYPE
OPERATION 4
OPERATION 5
W5
W6
W7
480 min = 100%
I II
BACKLOG_4 -160 +160
00
PRODUCTION BACKLOGS. PARALLEL TYPE. V2
OPERATION 4’
OPERATION 5’
W5
W6
W7
480 min = 100%
I II III
PRODUCTION BACKLOGS. PARALLEL TYPE. V2
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
PRODUCTION BACKLOGS. PARALLEL TYPE. V2
OPERATION 4’
OPERATION 5’
W5
W6
W7
480 min = 100%
I II III
BACKLOG_4 -120
00
+80
+40
PRODUCTION BACKLOGS: SERIAL TYPE
PRODUCTION BACKLOGS. SERIAL TYPE
OPERATION 1
OPERATION 2
W1
W2
W2
W3
I II
BACKLOG_1.1+160
BACKLOG_1.2
𝑍1𝐼 = +0,2 ∙ 480
1,2∙ 2 = +160
𝑍1𝐼𝐼 = +
0,8 ∙ 480
1,2∙ 1 = +320
+320480
480
160
-427
427
0
0
𝑍2𝐼 = −0,2 ∙ 480
1,8∙ 1 = −53
𝑍2𝐼𝐼 = −
0,8 ∙ 480
1,8∙ 2 = −427
-53
PRODUCTION BACKLOGS. SERIAL TYPEI II
BACKLOG_1.1+160
BACKLOG_1.2
+320480
-53
480
160
-427
427
0
0
BACKLOG_1
480
587
480
0 0
PRODUCTION BACKLOGS: SERIAL-PARALLEL TYPE
PRODUCTION BACKLOGS. SERIAL-PARALLEL TYPE
OPERATION 1
OPERATION 2
W1
W2
W2
W3
I II
BACKLOG_1.1+160
𝑍1𝐼 = +0,2 ∙ 480
1,2∙ 2 = +160
𝑍1𝐼𝐼 = +
0,8 ∙ 480
1,2∙ 1 = +320+320
0
0
𝑍2𝐼 = −0,2 ∙ 480
1,8∙ 1 = −53
𝑍2𝐼𝐼 = −
0,8 ∙ 480
1,8∙ 2 = −427
00
BACKLOG_1.2
-53 -427
0
320+160
PRODUCTION BACKLOGS. SERIAL-PARALLEL TYPE
BACKLOG_1
320
427
0
BACKLOG_1.1+160
+320
0 00
BACKLOG_1.2
-53 -427
0
320+160
320
320
LOGISTICS CONCEPTS Chapter 5
LOGISTICS CONCEPTS:
Just-in-time manufacturing
Supply Chain Management
Lean Manufacturing
etc.
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
So,
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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