Planning Production Activity PDF

Planning Production Activity The aim is to review the factors that are involved in a typical production activity and the types of decisions an engineer would be expected to make. Engineering Positions in Production: In the plant there are numerous engineering positions. Among these positions are:...

Planning Production Activity The aim is to review the factors that are involved in a typical production activity and the types of decisions an engineer would be expected to make. Engineering Positions in Production: In the plant there are numerous engineering positions. Among these positions are:  Plant Manager: The overall manager of the plant and all its activities.  Plant Engineer: Responsible for running the support services of the plant. Essentially he is responsible for all activities related to the plant and not the product. Under the Plant engineer you might find: o Design Engineer: Responsible for designing and implementing small changes to the plant and support equipment. Also makes specification requirements for larger changes. o Maintenance Engineer: Designs and specifies maintenance criteria. The Plant Production Manger or his staff conducts actual maintenance. o Utilities: All utilities needs of the plant. o Housekeeping: General housekeeping and support activities. o Security.  Plant Production Manager: In charge of all activities related to the product including the production equipment.  Industrial Engineer: In charge of plant layout, time-motion analysis, and standards settings.  Quality Manager: In charge of quality related issues. o Quality Control: Responsible for analysis of quality problems and their prevention. o Inspection: Responsible for inspecting products to determine if they meet specifications. Planning Manufacturing Facilities: What is the objective of Facility Planning?  To determine how the manufacturing facility best supports production. What does it involve?  Determine the location.  Determine the components of the facility. o Structure: The building and all support services for the building o Layout: Production areas, production related or support services, and personnel areas. o Handling system: Materials, personnel, information, and equipment handling systems required by the layout.  Determine the required facility layout. Facility Location: Facility location is the process of choosing the most appropriate location for the facility. The process is: 1. Establish the need for a new facility or plant. 2. Determine the best geographical location based on business needs. a. Transportation costs b. Manpower availability c. Manpower costs d. Utility costs e. Taxes/Tariffs f. Supplier location g. Amenities 3. Establish the requirements: a. Product to be made b. Equipment and building needs c. Utilities and transportation necessary 4. Screen various locations/communities with the chosen region 5. Highlight a few possible communities 6. Select the best location 7. Build the plant Plant Design: What type of plant to build? Should it be a single-story or multi-story building? Should we use concrete or steel construction? These decisions are made based on the product to be made, its components, and its production methods. Plant Layout: There are essentially four possible plant layouts: 1. Product Layout: Machines and personnel are arranged in the sequence of the product’s manufacturing so the product can be moved along the production line with a minimum of travel between steps. 2. Process Layout: All machines or activities of a particular type are located together. Products are transported from department to department in the sequence needed for their production. Useful for the job-shop environment in which a large number of different products are to be produced using the same equipment 3. Group Technology: When a set of products requiring similar processing equipment is identified and a small group of the machines needed to make this set of similar products is placed together. 4. Fixed Product Layout: When the product remains in place and the processes are brought to it. Which should be chosen? The answer depends on:  Type of product to be made  Quantity to be made  What will be built and what will be outsourced?  Available resources. Types of Inventory:  Raw Materials: That which needs processing  Purchased Parts: Materials which will be included in product as it is. They do not require processing. Similar to OEM (Original Equipment Manufacturer).  Supplies: Consumables  Work in Process: Unfinished product which is still being manufactured.  Finished Goods: Finished product ready for shipping and sale. Economic Order Quantity: The optimum reorder amount to minimize inventory costs. This is the theoretical amount to order whenever inventory levels reach zero point. Given: R = Annual inventory need I = Annual storage cost per unit of inventory S = Setup cost for ordering inventory Average Inventory = Q/2 Number batches to order = R/Q Total Annual Cost of Inventory: Q R CT  I ( )  S ( ) 2 Q Thus, EOQ is: 2 RS EOQ  I Break Even Charts: The point at which total costs is equal to total revenues.  Fixed Costs: Costs that are independent of the actual production level. o Lease, Insurance, management costs, etc…  Variable Costs: Costs that vary directly with the actual production levels. o Direct labor costs, materials costs, power costs, etc… Total Cost is: TC  F UV Revenue is: R  US Where: F = Fixed Costs U = Number units sold S = Selling Price V = Variable Cost Break Even Point is where: TC  R  F BE  S V If we want to reduce variable costs, when should we do this? We should do it when expected sales result in Total costs that are less than existing total costs. BEC Production Planning and Control: The purpose of PPC is to strike a balance between idle resources and idle inventory. The key is to keep enough inventory to keep workers busy even if there is disruption, but not too much inventory that could result in idle WIP (Work in Progress) Steps in Planning Production:  Process Planning: Sequence of operations needed to create finished product.  Loading: Time needed on each machine or station to process the desired number of parts.  Scheduling: When each step will be performed and on which machine, and by whom.  Dispatching: Authorizing the work to begin.  Production Control: Monitoring the implementation of the Production plan and reacting to any disruptions or changes. PPC Systems: Materials Requirements Planning (MRP): Schedule for ordering raw materials and parts, and performing production operations to provide products on time and in the desired quantity. It involves development of:  Master Production Schedule (MPS): This is the first step and it defines what exactly needs to be done.  Bill of Materials: the materials needed for production.  Order Schedule: When materials need to be ordered to ensure their availability as per the MPS Manufacturing Resource Planning (MRP II): Similar to MRP, but add to it scheduling o machinery and personnel.