3. Execution of Plans Hierarchical Planning Contd

PPC Class Notes-Chapter13. Execution of PlansHierarchical Planning ContdShop Floor ControlConventional Approach, Process LayoutSimilar machines are grouped into workcenters Use workorders to schedule the jobs through workcenters / departmentsSchedule machine and other workcentersDetermine start and completion times of ordersUpdate the schedulePPC Class Notes-Chapter13. Execution of PlansHierarchical Planning ContdShop Floor Control (Contd)Recent Trend, Manufacturing CellsSimilar parts are grouped into familiesCorresponding machine cells are formedUse production ratesUse schedules to control production (Family Sequencing, Product Sequencing, Cell Loading, Cell Scheduling, etc.)Use Kanban System (Pull, Just-in-Time) to control production

PPC Class Notes-Chapter13. Execution of PlansHierarchical Planning ContdPurchasingPurchasing PlanVendor SearchQuotationOrder ReleaseOrder Follow-upVendor Capacity

PPC Class Notes-Chapter1Planning vs. ControlPlans are madeResults are compared with plans (control)Results are OK Wait until next control periodResults are not OK Go to Step 1 (Revise plans) 4PPC Class Notes-Chapter1An ExampleResource Planning:Assume that a jewelry manufacturing company decided to open three manufacturing sites (US, Ireland and Singapore). Each plant is going to run one shift except plating area which will be run 2 shifts due to high investment requirement.

PPC Class Notes-Chapter1Example Contd

PPC Class Notes-Chapter1Example Contd

PPC Class Notes-Chapter1Example Contd

PPC Class Notes-Chapter1Example Contd

PPC Class Notes-Chapter1Example Contd

Demand Management:

Demand is forecasted for different product families and different plants as follows:

US plantIreland plantSingapore

plant

Earrings300000units/yr200000units/yr150000units/yr

Pendants350000225000200000

Rings15000010000075000

Production Plans:

US Plant

Months

123456789101112

Earring20K20K20K20K20K20K30K30K30K30K30K30K

Pendant20K20K20K20K20K20K30K40K40K40K40K40K

Ring10K10K10K10K10K10K15K15K15K15K15K15K

PRODUCTION PLAN IS PREPARED FOR IRELAND AND SINGAPORE PLANTS AS WELL.

Demand Management:

Following manpower and resources requirements are estimated for each plant:

US plantIreland plantSingapore

plant

Manpower300200150

Machine Type X504030

Machine Type Y10012050

Machine

Type Z1504070

Master Production Schedule:

US Plant Earring Family 1ST Month

Weeks

1234

Gold Earring 1K1K1K2K

Gold Earring with red stone1K1K2K1K

Silver Earring1K2K1K1K

Silver Earring with red stone2K1K1K1K

TOTAL5K5K5K5K

MASTER SCHEDULE IS PREPARED FOR EACH MONTH (POSSIBLY FOR THE 1ST COUPLE OF MONTHS, NOT FOR THE ENTIRE YEAR) AND PRODUCT FAMILY.

Rough-cut Capacity Planning:

Manpower and machine requirements are revised.

US plant

Manpower330

Machine Type X55

Machine Type Y95

Machine

Type Z190