Scm Iqra Farhan

Supply Chain Management Production Planning Presented By :

Farhan Ahmed

Today discussions      

Supply Chain Strategy Master Scheduling Capacity Planning Shop Floor Control Key Success Factors Questions

SUPPLY CHAIN STRATEGY

Supply Chain Strategy

Maximize customer service

Minimize Inventory

Minimize Operating Costs

Supply Chain strategy PRODUCTION PLAN

FINISHED GOODS INVENTORY

SALES PLAN

Production Planning • What product does the market want ? • How much of which products should be produced • and by when ?

• This activity includes the creation of Master production schedules that take into account plant Capacities , workload balancing, Quality control and Equipment maintenance.

MASTER SCHEDULING

The Master of all Schedules

What is the Master schedule ? The anticipated build schedule of those items (products) assigned to the Master scheduler.

The Master scheduler maintains this schedule and in turn, it becomes a set of planning numbers that drive material requirements planning.

What is the Master schedule ?  Its represents what the company plans to produce expressed in specific configurations, quantities and dates.  It is not a sale forecast , the master production schedules must take into account the forecast, the production plan, and other important consideration such as backlog, availability of capacity , management policy and goals, etc.

Master Schedule Sale & Operation  Planning Master Scheduling Bills Of Material

Material Req. Planning Material Scheduling

Inventory Records

Order Types Planned Orders: • System suggested replenishment orders and not yet accepted by the planner. As requirements change, planned order dates and quantities are automatically adjusted in the system.

Firm Planned Orders: • No longer controlled by the system because they have been accepted, changed or created by the master scheduler planner. Quantities and dates are frozen. Cannot be changed by the system and require manual intervention to make changes.

Released Orders: • Open orders or Shop orders issued to production floor.

Planning Horizon (MPS Time Fences) MPS Horizon is the user defined period of time that is considered firm or frozen and has following attributes: – Allow Planner to stabilize production plan in MPS FIXED

TRADING

OPEN

Next 4 weeks

Weeks 5 - 12

Months 4 - 24

Shop Orders

Firm Planned Orders

Planned Orders

Firm Planned Orders

Planning time fence

Increasing Stability

Scheduling Establishing the timing of the use of equipment, facilities and human activities in an organization Effective scheduling can yield • Cost savings • Increases in productivity

Managing Change - Supply Time Fences EMERGENC Y CHANGES

TRADING AREA

STABILISE Today

CAPACITY FIRM FUTURE MATERIAL PLANNING Planning Release ORDERED 24 months Time Fence Time Fence COST

TODAY

ADDING & CHANGIN G

TIME

Impacts on Master Schedule Product Oversell

Inventory adjustments

Product Withdrawal

Changes to planning parameters

Product Launch Abnormal Demand Reduced / Cancelled Orders Changes in supply

Changes in business policy Seasonality Execution issues S & OP decisions

ALL changes to the Master Schedule will be managed

Master Schedule Conformance Measures the effective completion of Master Schedule Conformance

Total scheduled orders delivered on time Total orders due in the period measured

Tolerance : NLT 95%

CAPACITY PLANNING

CAPACITY “A MEASURED ABILITY TO ACCOMPLISH WORK”.

CAPACITY CONTROL : “The process of measuring production Output and comparing it with the capacity requirement plan, determining if the variance exceeds pre-established limits, and taking corrective action to get back on plan if the limits are exceeded”.

LOAD This is the amount of scheduled work ahead of a manufacturing facility, usually expressed in terms of hours of work of production, or a measured volume of work to be done. It must be stated in same units of measure.

WORK CENTER: A work center is a place where manual or machine work is performed. If the work center contains more than one work station, then any one of the work stations must be capable of performing the assigned work or task.

Input

Work Center

Output

STANDARD/ VALIDATED HOURS The time in hours required to complete a task. It is the most common unit of measurement for capacity.

MOVE TIME: The time required to move processed material to the next work center.

QUEUE TIME: The time an arriving shop order or production order must normally wait at the work center before being processing through the operation.

Work Center # 1

Work Center # 2

Output

The Lead Time Syndrome ORDERS IN

Q LT CAPACITY

WORK OUT

Capacity Planning in MPS Systems Long Range Resource Planning Rough Cut Capacity Planning

Production Planning Demand Management Master Production Scheduling

Medium Range Capacity Req’ts Planning

Short Range

Detailed Material Planning

Finite Loading Input / Output Analysis

Shop Floor Systems

Vendor Systems

Rough cut capacity Planning : Addresses the questions : ” Do we or will have enough equipment, enough people , enough materials, and enough time to meet the sales and operational plans as currently written?”

ROUGH CUT CAPACITY PLANNING

MPS

REVIEW WORK LOAD ON CRITICAL WORK CENTERS

YES PROBLEM

NO

RESOURCE REQUIREMENTS REPORT

PROBLEM

YES

Bottleneck A bottleneck is a task or machine speed that limits and therefore determines the capacity of an entire process – such

slowest machine on the line.

as the

Where is the bottleneck? Mach 1

Mach 2

Mach 3

Mach 4

160 Units/Min

100 Units/Min

220 Units/Min

600 Units/Min

Have less capacity than prior or following work centers

INITIAL LOAD PROFILE

Normal capacity

Hours of capacity

1

 2

  3

  4

   5

    6

Time (weeks)

ADJUSTED LOAD PROFILE

Hours of capacity

Work an  extra shift

Overtime

Push back

Pull ahead

1

Push back

 2

  3

  4

   5

    6 Time (weeks)

Shop Floor Control

FLOW DIAGRAM SFC Production Scheduling (Weekly) Shop Packet Printing on Daily Basis •Data collection (Operation input ) • Monitoring of dispatch list on daily basis •Create ADR (if required) Control / Feed back Past due

Order Completed YES Order Review/ Disposition

YES

Problem Correctable NO

SHOP FLOOR CONTROL STEP BY STEP Shop floor Planner review the back log with Master Scheduler & adjust in next week plan. Master scheduler converts the firm order into the shop order. Shop floor planner Release shop order as per plan. Section Managers review the dispatch list on daily basis. If any change (ADR) recommended by Sectional Manager changes incorporated in the Dispatch list  ADR raise by RMS manager in case of non-availability or delay in issuance of the material.

Key Success Factors Supply Plan Achievement

RCCP is a key to Supply plan achievement.

Plan execution

Master scheduler and Capacity planner are key player for MPS execution.

Balance plan

Detail capacity planning against individual work centers is essential to balance the Input and Output of work centers.

Cost Impact

Cost impact of different products mix in view of different work centers.

Shop Floor control

Use of dispatch list of individuals work centers.

Preventive maintenance

Use of preventive maintenance schedule in conjunction with capacity planning.

Q.A. integration Integrate QA with Supply Chain e.g. Dispatch list. Plan Accuracy

Accurate capacity planning as a result of work center wise calendar maintenance.

KEY FACTORS Lead time is sum of all move, process,queue and Q.A. testing times at all work centers listed on the routing. 



Standard hours based on demonstrated Out put.

Engineering schedule maintenance is a part of Master scheduling, capacity planning and shop floor control. 