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Session 2: Session 2: Basics of Production PlanningBasics of Production PlanningTypes of Production Planning Types of Production Planning ScenariosScenarios

Atanu GhoshAtanu Ghoshatanu.ghosh@nevaehtech.comatanu.ghosh@nevaehtech.com

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PPC: The Big Picture PPC: The Big Picture

Business planning• Budgeting

• Sales planning

• Profitability planning

• Product planning

Production planning• Planning strategy

• MPS/ MRP

• Rough-cut capacity planning

Shop floor planning• Scheduling

• Maintenance planning

• Detailed capacity planning

• Raw material purchase planning

• Spares planning

• Personnel planning

Production execution• BOM, Routing and Work Center Design

• Production recording

• Time recording

• Cost recording

• Quality inspection

MES• Interface with PLCs

• Interface with time recording system

Top floor

Shop floor

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Types of manufacturing Types of manufacturing

• Production of discrete components manufactured and assembled in a “piece by piece” fashion

• Mostly made to order or engineered to order

• Examples – automobiles, industrial machinery and components, white goods, etc

Discrete manufacturing

Process manufacturing

Repetitive manufacturing

Project manufacturing

• Continuous production but separable in “batches”

• Each batch is run for specified period

• Examples – pharmaceuticals, chemicals, oil, steel

• Same or similar products produced over a lengthy period of time

• Goods produced are not manufactured in individually differentiable lots

• Examples – cement, iron, electronic chips

• Production of large engineering products

• Usually engineered to order

• Examples – aircraft, ship building, turbine manufacturing

Complex

Simple

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Project manufacturing Project manufacturing

Data Management(ship system breakdown structure, parts, CAD drawings)

Business Management(Financial and Human Resources)

Business Management(Financial and Human Resources)

Conceptdesign

Functionaldesign

DetailDesign

ProcurementFabrication Assembly

Pre-order Order Execution

Project managementProject management

Globalization

CollaborationFabrication& AssemblyProcurement

Functional & DetailDesign

Concept Design

Globalization

CollaborationFabrication& AssemblyProcurement

Functional & DetailDesign

Concept Design

Conceptdesign

Functionaldesign

DetailDesign

Conceptdesign Conceptdesign

Functionaldesign

Functionaldesign

DetailDesignDetail

Design

ProcurementFabrication Assembly

ProcurementFabrication Assembly

Document ManagementClassificationProduct StructureChange ManagementWorkflowCollaborative EngineeringCAD/ERP integration

Document ManagementClassificationProduct StructureChange ManagementWorkflowCollaborative EngineeringCAD/ERP integration

Project Management ProcurementDemand AggregationChange ManagementProgress TrackingProduction managementActual labour costingQuality AssuranceCost & cash management

Project Management ProcurementDemand AggregationChange ManagementProgress TrackingProduction managementActual labour costingQuality AssuranceCost & cash management

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Project manufacturing Project manufacturing

Preliminary Design

Detail Design

Steel-Cutting

Painting & Erection

time

Procurement

Hull Assembly and pre-outfitting

Outfitting

Sea trials

Preliminarydesign phase

Detail design, Procurement, Production phase

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Project manufacturing Project manufacturing Project Specific Manufacturing

Interactive and concurrent process between design, procurement and production

Low level of detail information at the beginning of the project

Cost control against ship system breakdown structure

Deadlines for purchase and production controlled by a project plan

Procurement of complex components is a collaborative process between designers and suppliers

Early procurement of “key” components

Outfitting process managed by palletising of materials

Quality control of procured materials and production activities (welding , painting, outfitting etc.)

Sub-contractors management

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Discrete manufacturing Discrete manufacturing

Incoming payment

Profitability analysis

Product costing

Webshop

Sales and service

Quality/compliance

Purchasing

Finance/controlling

Supply chain planning/ warehouse/logistics

Manufacturing

Research and development

Sales and service

Quality/compliance

Purchasing

Finance/controlling

Supply chain planning/ warehouse/logistics

Manufacturing

Research and development

MRP and capacity planning

Demand planning

Sales orderprocessing Manufacturing Delivery Billing

Purchase order

processing

Order-to-cash

Corporate services/financials/controlling

Quality management/compliance

Delivery Invoice

Procurement

Outgoing payment

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Discrete manufacturing Discrete manufacturing

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Process manufacturing Process manufacturing

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Process manufacturing Process manufacturing

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Process manufacturing Process manufacturing

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Process manufacturing Process manufacturing

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Process manufacturing Process manufacturing

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Process manufacturing Process manufacturing

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Process manufacturing Process manufacturing

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Process manufacturing Process manufacturing

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Process manufacturing Process manufacturing

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Process manufacturing Process manufacturing

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Repetitive manufacturing Repetitive manufacturing

Cement Plant

Proportioning, blending, and grinding

Preheater tower

Kiln

Clinker cooler and finishing grindings

Ready-mix plant

CementQuarry

Direct sales

Wholesale

Construction site

Fuel Electricity

Aggregates Additives

Cement Plant

Proportioning, blending, and grinding

Preheater tower

Kiln

Clinker cooler and finishing grindings

Ready-mix plant

CementQuarry

Direct sales

Wholesale

Direct sales

Wholesale

Construction site

Fuel Electricity

Aggregates Additives

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Repetitive manufacturing Repetitive manufacturing

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Repetitive manufacturing Repetitive manufacturing

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Repetitive manufacturing Repetitive manufacturing

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Next Session: BOM, Routing Next Session: BOM, Routing and Work Centerand Work Center

Atanu GhoshAtanu Ghoshatanu.ghosh@nevaehtech.comatanu.ghosh@nevaehtech.com