Lecture Outline 5

Manufacturing Systems(Production and Operations

Management) p. 304+

Production of Tangible Goods

• such a business has three types of inventory: raw materials, work-in-process, and finished goods

• Use of computers in manufacturing is widespread

Computers in Manufacturing

• Computer-aided design (CAD)

• Computer-aided engineering (CAE)– 3-D representation of car engine on screen– Simulation of engine’s performance– Performance data gathered

• Automated control of production machines– Computer control of sawing patterns– Computer control of industrial robots

In More Detail *MC

• Master Production Schedule– Based on

- accepted sales orders• Sales forecast• Current finished goods inventory

• Lists #units to be produced each week

Bill of Materials *L

• A list of raw materials needed to produce one unit of finished product and the quantity of each material

• Material Requirements Planning (MRP)– With the MPS and BOM, a system can

produce time-phased purchase orders for raw materials (main output of MRP)

Capacity Requirements Planning *L

• What MRP is to materials required• CRP is to machines time and worker

time required• What the bill of materials is to MRP, the Route Sheet is to CRP

- shows sequence of required operations and the standard time allowed for each operation (usually person + machine)

Capacity *L

• How much machine time and worker time do we have?– May need to rent more floor space and / or

machines– May need to hire temp workers

• CRP generates a detailed production schedule

• It releases manufacturing orders to the production floor

Manufacturing Resource Planning (MRPII) *L

• Composed of:– Master Production Schedule (tactical)– MRP (tactical / operational)– CRP (tactical / operational)– Shop floor control (operational / tactical)– Quality control (operational / tactical)– Cost allocation (material, labour,overhead) to finished

goods – a comprehensive, integrated way of managing

manufacturing

Inventory Control *MC

• In manufacturing, we have:– Raw materials inventory– Work-in-process inventory– Finished goods inventory

• Systems keep track of quantities and costs of each

Just-In-Time (JIT) Manufacturing *MC

Raw materials arrive just when they are needed on the production floor

• Minimizes inventory

• Requires complex information systems (operational)

• May have vendor managed inventory

(supplier’s computers tap into our inv. systems)

Computers in Manufacturing

SUMMARY:

- computer support in manufacturing extensive

- we’re concerned with supporting information systems (not drafting or machine control)

- Many operational / tactical systems

Operational & Tactical Systems

• Master Production Scheduling system• Material requirements planning system• Capacity requirements planning system• Detailed Production Schedule• Shop floor control (comp. to schedule)• Quality control (comp. to quality standards)• Cost accounting; inventory control• Put together in MRP II (Mfg Resource Planning)

IT Considerations in Mfg. *L

• Large databases designed for varied and quick retrieval

• Data capture in variety of ways (incl. sensors, measurement devices, scanning)

• Connectivity throughout production facilities• Both operational and tactical (eg. Shop floor

control)• Integration with system outside mfg.

Strategic Manufacturing Systems *X

• Assist top management with– Selecting a plant site– Building a new plant– Designing and laying out a production facility– Assessing technologies to be used in

production processes

• May use both internal and external data

Supply Chain Management Software (SCM) *MC p. 270

• Supply chain: flow of materials, services and information from suppliers of merchandise and raw materials through to the organization’s customers– Now: supply network

• Supply chain management: processes and procedures used to ensure the delivery of goods and services to customers at the lowest cost while providing highest value to the customers

SCM (cont’d)

• suppliers are gaining access to an organization’s production planning schedules to assure an ability to fulfill orders

• producing organization is opening its systems to the customer to allow the customer to view inventory and production levels before placing orders