I hope you can understand what is ppc and its fundamentals form this slides.

This is collections of web based ppts and book. Refer our college study material also.

The need for Production Planning Demand Forecasting Aggregate Production Planning Strategies of Aggregate Planning Scheduling Workforce Planning Materials Requirement Planning Capacity Planning Production Control Shop-Floor Control
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Addresses decisions on

Acquisition Utilization Allocation

of limited production resources Resources include the production facilities, labor and materials. Constraints include the availability of resources, delivery times for the products and management policies.

Main objective is to take appropriate decisions. Typical decisions

Work force level Production lot sizes Assignment of overtime Sequencing of production runs
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Process Planning

Re-planning

Scheduling

Corrective Action

Functions of PPC

Loading

Follow up Dispatching

Combining Functions
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Objective

To predict demand for planning purposes

Laws of Forecasting

Forecasts are always wrong Forecasts always change The further into the future, the less reliable the
Forecast will be
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Qualitative Demand Forecasting

Prediction Market Delphi Technique Game Theory Intentions and Expectations Surveys Conjoint Analysis

Quantitative Demand Forecasting

Discrete Event Simulation Quantitative Analogies Neural Networks Data Mining Causal Models Segmentation
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Objective

To generate a medium-term production plan To establish rough product mix To anticipates bottlenecks To align capacity and workforce plans.
It is usually done for next 2 to12 months. Demand changes over a period of time at a faster rate than the resources. Aggregate planning offers10 strategies to absorb these fluctuations.

Guidelines for Aggregate Planning

Determine demand for each period Consider company policies that may have impact Determine capacities for each period Regular time, overtime, subcontracting, etc. Identify backorder or inventory amount Determine costs of operation Continue through time horizon to calculate total
cost 11 Develop alternate plans and compute cost for each Select the plan that meets objectives

Assumptions in Aggregate Planning

The regular output capacity is the same in all periods. Cost is a linear function composed of unit cost and number of units. Plans are feasible : sufficient inventory capacity exists to accommodate a plan, subcontractors
with appropriate quality and capacity are standing by, 12 and changes in output can be made as needed. Contd

Assumptions in Aggregate Planning

All costs associated with a decision option can be represented by a lump sum or by unit cost that are independent of the quantity involved Cost figures can be reasonably estimated and are constant for the planning horizon Inventories are built up and drawn down at a uniform rate and output occurs at a uniform rate throughout each period
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Output of Aggregate Planning

Production quantity from regular time, overtime and subcontracted time Inventory held for determination of how much warehouse space and working capital is
needed Backlog or stock-out quantity for determining the customer service levels
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Level plans

Use a constant workforce & produce similar

quantities each time period Use inventories and backorders to absorb demand peaks & valleys Chase plans Minimize finished good inventories by trying to keep 15 pace with demand fluctuations

Level plans Productio n Demand

Units

Time
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Chase plans Productio n Demand

Series1 Series1

Units

Time
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Hybrid or Mixed Strategies

Build-up inventory ahead of rising demand and

use backorders to level extreme peaks Layoff or furlough workers during lulls Subcontract production or hire temporary workers to cover short-term peaks Reassign workers to preventive maintenance during lulls Influencing Demand
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Concerned with timetable of production

Scheduling arranges the different manufacturing operations in order of priority, fixing the time & date for the commencement & completion of each operation. Types of scheduling

Forward scheduling Backward scheduling

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The pattern of scheduling differs from one job to another which is explained as below.

Master Schedule Production Schedule Manufacturing Schedule Scheduling of Job Order Manufacturing

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To find out and direct

Right people Right place Right time Right price

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Issues

Basic Staffing Calculations and labor hours Working Environment Flexibility/Agility Quality

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MRP is a production planning and inventory control system used to manage manufacturing processes. An MRP system has 3 major objectives

Ensure materials are available for production and

products are available for delivery to customers Maintain the lowest possible level of inventory Plan manufacturing activities, delivery schedules and purchasing activities
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MRP steps

Takes output from the planning phase (master plan) Combines that with the information from the
inventory record and product structure records Determines a schedule of timing and quantities for each item

The basic idea is to get the right materials to the right place at the right time.
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The process of determining the production

capacity needed to meet changing demands

Maximum amount of work that an organization is

capable of completing in a given period of time

Wrong Capacity

Classes of capacity planning

Lead strategy Lag strategy Match strategy

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Issues

Stand-alone capacities and congestion effects Capacity Strategy Make-or-Buy Flexibility Scalability and learning curves

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JIT is the technique for reducing inventories and elimination of waste in the production system. Objectives

To eliminate waste To improve quality To minimize lead time To reduce costs To improve productivity
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Pull production and kanban JIT is associated with pull systems. Toyota was the first developer of kanban system. Examples

McDonalds' Office Xerox Paper

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Issues

JIT Interdependencies Implementing Issues JIT purchasing Expected Outcomes

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Objective To control flow of work through plant and coordinate with other activities (e.g., quality control, preventive maintenance, etc.)

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Material Flow Control

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Functions

Gross Capacity Control

Match line to demand by staffing (workers/shifts) Varying length of work week (or work day) Using outside vendors to augment capacity

Contd

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Functions

Bottleneck Planning
Handling of bottlenecks Cost of capacity is the key Stable bottlenecks are easier to manage

Span of Control
Physically or logically decompose system Span of labor and process management
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Issues

Customization
SFC is often the most highly customized activity in a plant.

Information Collection
SFC represents the interface with the actual production processes and is therefore a good 38 place to collect data. Contd

Issues

Simplicity
Departures from simple mechanisms must be carefully justified.

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Queuing theory is the mathematics of waiting lines. It is extremely useful in predicting and evaluating system performance. Queuing theory has been used for operations research, manufacturing and systems analysis. Traditional queuing theory problems refer to customers visiting a store, analogous to requests arriving at a device.

Telecommunications Traffic control Determining the sequence of computer operations Predicting computer performance Health services (e.g.. control of hospital bed assignments) Airport traffic, airline ticket sales Layout of manufacturing systems.

Model processes in which customers arrive. Wait their turn for service. Are serviced and then leave.
input
output Server

Queue

Key

elements of queuing systems

Customer:-- refers to anything that arrives at

a facility and requires service, e.g., people, machines, trucks, emails. Server:-- refers to any resource that provides the requested service, eg. repairpersons, retrieval machines, runways at airport.

System
Reception desk Hospital Airport Road network Grocery Computer

Customers
People Patients Airplanes Cars Shoppers Jobs

Server
Receptionist Nurses Runway Traffic light Checkout station CPU, disk, CD

Service Process
Queue or Waiting Line Servers

Arrival Process

Exit

Population of dirty cars

Arrivals from the general population

Queue (waiting line)

Service facility
Daves Car Wash

Exit the system

enter

exit

Arrivals to the system

In the system

Exit the system

Arrival Characteristics Size of the population Behavior of arrivals Statistical distribution of arrivals

Waiting Line Characteristics Limited vs. unlimited Queue discipline

Service Characteristics Service design Statistical distribution of service

1. A single service system.

Queue Arrivals
Service facility

Departures after service

e.g- Your family dentists office, Library counter

Service facility Channel 1

Queue Arrivals
Service facility Channel 2 Service facility Channel 3

Departures after service

e.g-

Booking at a service station

Queues
Arrivals

Service station

Customers leave

e.g.- Different cash counters in electricity office

Service station 1 Arrivals Phase 1 Queues Queues

Service station 2

Phase 2

Customers leave

e.g.- Cutting, turning, knurling, drilling, grinding, packaging operation of steel

1.

2.

Deterministic queuing model Probabilistic queuing model

= =

Mean number of arrivals per time period Mean number of units served per time period

1.

If > , then waiting line shall be formed and increased indefinitely and service system would fail ultimately

2. If , there shall be no waiting line

PROBABILITY THAT N CUSTOMERS WILL ARRIVE IN THE SYSTEM IN TIME INTERVAL T IS

 = Mean number of arrivals per time period = Mean number of units served per time period Ls = Average number of units (customers) in the system (waiting and being served) = Ws = Average time a unit spends in the system (waiting time plus service time) =
1

Lq = Average number of units waiting in the queue 2 = ( ) Wq = Average time a unit spends waiting in the queue = ( ) p = Utilization factor for the system =

P0 = Probability of 0 units in the system (that is, the service unit is idle) = 1 Pn > k = Probability of more than k units in the system, where n is the number of units in the system =
k+1

 = 2 cars arriving/hour = 3 cars serviced/hour 2 Ls = = = 2 cars in the system on average 3-2

1 1 Ws = = = 1 hour average waiting time in 3-2 the system

22 2 Lq = = = 1.33 cars waiting in line 3(3 - 2) ( )

2 cars arriving/hour,

= 3 cars serviced/hour

Wq

2 = = = 40 minute average waiting 3(3 - 2) ( ) time

p = / = 2/3 = 66.6% of time mechanic is busy P0 = 1 = .33 probability there are 0 cars in the system

Determine an acceptable waiting time for your customers Try to divert your customers attention when waiting Inform your customers of what to expect Keep employees not serving the customers out of sight Segment customers Train your servers to be friendly Encourage customers to come during the slack periods

Take a long-term perspective toward getting rid of the queues

In a life time, the average person will spend :

SIX MONTHS EIGHT MONTHS ONE YEAR TWO YEARS FOUR YEARS FIVE YEARS SIX YEARS Waiting at stoplights Opening junk mail Looking for misplaced 0bjects Reading E-mail Doing housework Waiting in line Eating

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1.

Primary industries cultivate and exploit natural resources

Examples: agriculture, mining

2.

Secondary industries convert output of primary industries into products

Examples: manufacturing, power generation, construction

Examples: banking, education, government, legal services, retail trade, transportation

3.

Tertiary industries service sector

Transformation Operations

Machine Processing Assembly

Adding value* Other Operations

Material handling Inspection and testing Coordination and control

Raw Material

Transformation Process

Part or Product
Scrap or Waste

Power Tools Machin es Labour

Shaping operations

Solidification processes Particulate processing Deformation processes Material removal processes

Property-enhancing operations (heat treatments) Surface processing operations

Cleaning and surface treatments Coating and thin-film deposition

Joining processes
Welding Brazing and soldering Adhesive bonding

Mechanical assembly

Threaded fasteners (e.g., bolts and nuts, screws) Rivets Interference fits (e.g., press fitting, shrink fits) Other

Material transport

Vehicles, e.g., forklift trucks, AGVs, monorails Conveyors Hoists and cranes

Storage systems Unitizing equipment Automatic identification and data capture

Bar codes RFID Other AIDC

Inspection conformance to design specifications

Inspection for variables - measuring Inspection of attributes gauging

Testing observing the product (or part, material, subassembly) during operation

Regulation of the individual processing and assembly operations

Process control Quality control

Management of plant level activities

Production planning and control Quality control

Facilities organised in the most efficient way to serve the particular mission of the plant and depends on:
Types of products manufactured Production quantity Product variety

Number of units of a given part or product produced annually by the plant Three quantity ranges:
1. 2. 3.

Low production 1 to 100 units Medium production 100 to 10,000 units High production 10,000 to millions of units

Number of different product or part designs or types Hard product variety products differ greatly

Few common components in an assembly

Soft product variety small differences between products

Many common components in an assembly

Job shop makes low quantities of specialized and customized products Products are typically complex (e.g., specialized machinery, prototypes, space capsules) Equipment is general purpose Plant layouts:
Fixed position Process layout

PROCESS LAYOUT

1.

Batch production A batch of a given product is produced, and then the facility is changed over to produce another product

2.

Changeover takes time setup time Typical layout process layout Hard product variety

Cellular manufacturing A mixture of products is made without significant changeover time between products

Typical layout cellular layout Soft product variety

1.

Quantity production Equipment is dedicated to the manufacture of one product

Standard machines tooled for high production (e.g., stamping presses, molding machines) Typical layout process layout

2.

Flow line production Multiple workstations arranged in sequence

Product requires multiple processing or assembly steps Product layout is most common

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Complex projects require a series of activities, some of which must be performed sequentially and others that can be performed in parallel with other activities. This collection of series and parallel tasks can be modeled as a network. In 1957 the Critical Path Method (CPM) was developed as a network model for project management. CPM is a deterministic method that uses a fixed time estimate for each activity. While CPM is easy to understand and use, it does not consider the time variations that can have a great impact on the completion time of a complex project. The Program Evaluation and Review Technique (PERT) is a network model that allows for randomness in activity completion times. PERT was developed in the late 1950's for the U.S. Navy's Polaris project having thousands of contractors. It has the potential to reduce both the time and cost required to complete a project.

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In a project, an activity is a task that must be performed and an event is a milestone marking the completion of one or more activities. Before an activity can begin, all of its predecessor activities must be completed. Project network models represent activities and milestones by arcs and nodes. PERT originally was an activity on arc network, in which the activities are represented on the lines and milestones on the nodes. Over time, some people began to use PERT as an activity on node network. For this discussion, we will use the original form of activity on arc. The PERT chart may have multiple pages with many sub-tasks. The following is a very simple example of a PERT diagram ABOVE The milestones generally are numbered so that the ending node of an activity has a higher number than the beginning node. Incrementing the numbers by 10 allows for new ones to be inserted without modifying the numbering of the entire diagram. The activities in the above diagram are labeled with letters along with the expected time required to complete the activity.

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Steps in the PERT Planning Process PERT planning involves the following steps: 1. Identify the specific activities and milestones. 2. Determine the proper sequence of the activities. 3. Construct a network diagram. 4. Estimate the time required for each activity. 5. Determine the critical path. 6. Update the PERT chart as the project progresses.

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