CPIM-BSCM-CRP

1、Basics of Supply Chain ManagementCPIM Test Review Course10-14 Jul 2003VisualSession 1: Introduction to Supply Chain ManagementSession 2: ForecastingSession 3: Master PlanningSession 4: Material Requirements PlanningSession 5: Capacity Management and Production Activity ControlSession 6: Inventory Fu

2、ndamentalsSession 7: Inventory Management Session 8: Physical DistributionSession 9: Quality Management and PurchasingSession 10:Just-in-Time ManufacturingCourse Outline4-1aBasics of Supply Chain Management, Version 2.1 August 2001VisualSession 5 ObjectiveslCapacity management and its relation to pr

3、iority planninglRated or calculated capacitylCapacity required for a shop orderlPurpose and activities of production activity control (PAC)5-1bBasics of Supply Chain Management, Version 2.1 August 2001VisualSession 5 Objectives (cont.)lProcess of order preparation and data requirements for a PAC sys

4、temlTechniques of schedulinglPurpose of a shop order and necessary informationlImplementation and control of work orderslInput/output reports5-2Basics of Supply Chain Management, Version 2.1 August 2001VisualVisual 5-3Capacity ManagementMPS, MRP are Priority Planning system: lwhat to do and when to

5、do itThese plans must be matched with the ability to produce a workable planCapacity Management is concerned with the ability to workla planning phase and a control phaseBasics of Supply Chain Management, Version 2.1 August 2001VisualCapacity ManagementPlanning and controlling resources needed to me

6、et production objectivesPlanning:Determining resources needed to meet the priority planSelecting methods to make that capacity availableControlling:Monitoring output, comparing with the plan, and taking corrective actionCapacity management occurs at each planning level5-3Basics of Supply Chain Manag

7、ement, Version 2.1 August 2001VisualCapacity Management TechniquesCapacityRequirements Planning (CRP)Priority Management TechniquesResource RequirementsPlanning(RRP)ProductionPlanRough-CutCapacity Planning (RCCP)MasterProductionScheduleMaterial Requirements Planning (MRP)Production Activity Control

8、(PAC)Operation SequencingInput/Output ControlPlanning Levels5-4Figure adapted from the CPIM Exam Content Manual, APICS, 1997Increase in level of details and decrease in planning horizonsBasics of Supply Chain Management, Version 2.1 August 2001VisualDefining CapacityWhat is the definition of capacit

9、y?lCapacity is the amount of work that can be done in a period of timeIt is usually stated in standard hours of work,why?lNon-homogenous in product structureIt must be determined at plant, department, and work center levelsVisual 5-5Basics of Supply Chain Management, Version 2.1 August 2001VisualDef

10、ining CapacitylThe capability of a system to perform its expected functionlThe capability of a worker, machine, work center, plant, or organization to produce output per time period5-5Basics of Supply Chain Management, Version 2.1 August 2001VisualCapacity Planning ProcesslDetermine the capacity ava

11、ilablelTranslate the released and planned orders into capacity required lSum up capacities required for each work centerlResolve differences between available capacity and required capacity5-6Basics of Supply Chain Management, Version 2.1 August 2001VisualDetermining Capacity AvailableCapacity avail

12、able is“The capability of a system or resource to produce a quantity of output in a particular time period”APICS DictionaryAvailable capacity can be calculated or measuredTo calculate available capacity, identifyl Available timel Utilizationl Efficiency5-7Basics of Supply Chain Management, Version 2

13、.1 August 2001VisualDemonstrated and Rated CapacityDemonstrated capacityldetermined from historical datalIt is an average outputRated capacitylcalculated by taking into account work center utilization and efficiencylRated capacity=available time x utilization x efficiencyBasics of Supply Chain Manag

14、ement, Version 2.1 August 2001VisualAvailable TimeAvailable time: depends on the number of machines, number of workers, and hours of operationNumber of machines (or number of workers) hours of operationWhat is the weekly available time for a work center that has four machines and works eight hours a

15、 day for five days a week?5-8Basics of Supply Chain Management, Version 2.1 August 2001VisualUtilizationUtilization:Percentage of the time that the work center is active Example: Work center is available 120 hours a week, but actually produces goods for 90 hours100% hours Availableorkedactually w Ho

16、urs nUtilizatioutilization 75% 100% 12090=5-9Basics of Supply Chain Management, Version 2.1 August 2001VisualEfficiencyEfficiency:Actual output rated againststandard outputExample: A work center is utilized 100 hours per week and produces 110 standard hours of work 5-10%100workedactually Hours worko

17、f hours Standardefficiency %110%100100110=Basics of Supply Chain Management, Version 2.1 August 2001VisualEfficiencyA = hours actually workedB = standard hours of work producedC = actual rate of productionD = standard rate of productionE = available timeF = actual quantityC = ( F / A ) x ED = ( F /

18、B ) x EEfficiency = ( C / D ) x 100% = ( B / A ) x 100%Efficiency = ( actual rate of production / standard rate of production ) x 100% = ( standard hours of work / hours actually worked ) x 100%Basics of Supply Chain Management, Version 2.1 August 2001VisualProblem 5.1A work center produces 90 stand

19、ard hours of work in one week. The hours scheduled are 80, and 70 are actually worked. Calculate the utilization and efficiency of the work center.Utilization =Efficiency =100%orkedactually w Hours workof hours Standard100%hours Availableorkedactually w Hours5-11Basics of Supply Chain Management, Ve

20、rsion 2.1 August 2001VisualSolution 5.1A work center produces 90 standard hours of work in one week. The hours scheduled are 80, and 70 are actually worked. Calculate the utilization and efficiency of the work center.Utilization =Efficiency =Visual 5-117080X 100% = 87.5%9070X 100% = 128.6%Basics of

21、Supply Chain Management, Version 2.1 August 2001VisualRated CapacityRated capacity = available time x utilization x efficiencyExample:A work center consists of three machines and is operated eight hours a day for five days a week. Past utilization has been 75%, and efficiency has been 110%.Available

22、 time =Rated capacity = 5-12Basics of Supply Chain Management, Version 2.1 August 2001VisualRated CapacityRated capacity = Available time x utilization x efficiencyExample:A work center consists of three machines and is operated eight hours a day for five days a week. Past utilization has been 75%,

23、and efficiency has been 110%.Available time =Rated capacity = Visual 5-123 x 8 x 5 = 120 hours per week120 x 0.75 x 1.10 = 99 standard hoursBasics of Supply Chain Management, Version 2.1 August 2001VisualRated CapacityWhat happen if available capacity is overstated?Overload the work centerDelivery i

24、s unlikely to meetBasics of Supply Chain Management, Version 2.1 August 2001VisualProblem 5.2A work center consists of six machines that are available 16 hours per day for five days a week. Utilization is 80%, and efficiency is 110%. What is the rated weekly capacity?Rated weekly capacity =5-13Basic

25、s of Supply Chain Management, Version 2.1 August 2001VisualSolution 5.2A work center consists of six machines that are available 16 hours per day for five days a week. Utilization is 80%, and efficiency is 110%. What is the rated weekly capacity?Available time = 6 x 16 x 5 = 480 hoursRated weekly ca

26、pacity = 480 x 0.8 x 1.10 = 422.4 std hoursVisual 5-13Basics of Supply Chain Management, Version 2.1 August 2001VisualDemonstrated CapacityProven capacity calculated from actual performance dataExample:Over the previous four weeks, a work center produced 110, 140, 120, and 130 standard hours of work

27、. What is the demonstrated capacity?Demonstrated weekly capacity = standard hours/week5-14Basics of Supply Chain Management, Version 2.1 August 2001VisualDemonstrated CapacityProven capacity calculated from actual performance dataExample: Over the previous four weeks, a work center produced 110, 140

28、, 120, and 130 standard hours of work. What is the demonstrated capacity? = 125 standard hours/weekDemonstrated weekly capacity = Visual 5-14110+140+120+130 4Basics of Supply Chain Management, Version 2.1 August 2001VisualLoadlAvailable capacity needed capacitylGenerated by the priority planning sys

29、tem (MRP)lTranslates the priorities, given in units, into time required at each work center in each time periodlTakes place at each planning levellOur discussion will focus on CRP5-15Basics of Supply Chain Management, Version 2.1 August 2001Basics of Supply Chain Management, Version 2.1 August 2001V

30、isualCapacity Requirements PlanningNeed to Know Take Information FromOpen shop ordersOpen order filePlanned order releasesMRPWhere work is doneRouting fileTime needed (standard hours)Routing fileLead timesRouting fileWork center fileWork center capacityWork center file5-16Basics of Supply Chain Mana

31、gement, Version 2.1 August 2001VisualSun.WeekMon.Tues.Wed.Thurs.Fri.Sat.MonthJuly1271281291301319101112131415281321331341351361617181920212229137138139140141232425262728293014214314414514630311234531123124125126234567827123July 22Work Day123Defines non-work daysReprinted with permission, J.R. Tony A

32、rnold, Introduction to Materials Management, Prentice-Hall. Shop Calendar5-17Basics of Supply Chain Management, Version 2.1 August 2001VisualShop CalendarIssues with our calendarlMonths do not have the same number of dayslHolidays are spread unevenly throughout the yearlThe calendar does not use a d

33、ecimal systemNeed to know the number of working daysA shop planning calendar will tell us!Basics of Supply Chain Management, Version 2.1 August 2001VisualLead-Time ElementsQueueSetupRunWaitMoveLead TimeQueueTime waiting before operation beginsSetupTime getting ready for operationRunTime performing o

34、perationWaitTime waiting after operation endsMoveTime physically moving between operationsAdapted from Material and Capacity Requirements Planning Certification Review Course, 1993, APICS5-18Basics of Supply Chain Management, Version 2.1 August 2001VisualManufacturing lead timeWhich component of lea

35、d time takes the most time?lQueuel85 - 95% of total lead timeProblem of coordinating, organizing material flowlparticularly in a job shop environmentBasics of Supply Chain Management, Version 2.1 August 2001VisualScheduling OrdersTo determine when orders should be started and completed on each work

36、centerlCalculate operation time required at each work centerlOperation time = setup time + run timelAllow for queue, wait, and move times5-19Basics of Supply Chain Management, Version 2.1 August 2001VisualWork CenterQueue (days)Wait (days)Move (days)82119411OperationWorkCenterArrivalDateQueue(days)O

37、peration(days)FinishDateWait andMove108103231082209110441182StoreStores120Order quantity = 100 unitsFrom route sheetFrom work center filesScheduleOperationWorkCenterSetup Time(std hrs)Run Time(std hrs)Total Time(std hrs)Days1081.50.221.532090.50.330.54Scheduling Example5-20Basics of Supply Chain Man

38、agement, Version 2.1 August 2001VisualProblem 5.3OperationWorkCenterQueueTimeStartDateOperationTimeFinishDate101113220130543015521StoreStores1505-21Basics of Supply Chain Management, Version 2.1 August 2001VisualSolution 5.3OperationWorkCenterStartDateQueueTimeOperationTimeFinishDate1011112732132201

39、30134541433015514521148StoreStores150Visual 5-21Move time between operations = 1 day, wait time = 1 dayBasics of Supply Chain Management, Version 2.1 August 2001VisualGraphical Display Load Profile00.20.40.60.811.2Wk 18Wk 19Wk 20Wk 21Basics of Supply Chain Management, Version 2.1 August 2001VisualTy

40、pical Load ProfileWeek18192021TotalReleased load105100 80 30315Planned load 60 80140Total load105100140110455Rated capacity110110110110440Over/under capacity 5 10 (30) 0(15)Shows the capacity required at a work center based on planned and released orders for each time periodExampleWork center: 10Rat

41、ed capacity: 110 standard hours/week5-22Basics of Supply Chain Management, Version 2.1 August 2001VisualResolving DifferencesChange the availableUse overtime orcapacity:under-timeHire or lay offShift work forceUse alternate routingsSubcontractAlter the load:Alter lot sizes(May complicate schedule Re

42、schedule for other work centers)5-23Basics of Supply Chain Management, Version 2.1 August 2001VisualProduction Activity Control5-24Production PlanPlanningImplementcontrolPurchasingProduction Activity ControlMasterProduction ScheduleMaterialsRequirements PlanningCapacity ControlInput/OutputBasics of

43、Supply Chain Management, Version 2.1 August 2001VisualObjectives of PAClExecute the MPS and MRPlOptimize use of resourceslMinimize work in processlMaintain customer service5-25Basics of Supply Chain Management, Version 2.1 August 2001VisualPAC FunctionsPlanlEnsure resources are availablelSchedule st

44、art and completion datesExecutelGather relevant shop order informationlRelease shop ordersControllEstablish and maintain order prioritylTrack actual performancelMonitor and control WIP, lead times, and queueslReport work center performance5-26Basics of Supply Chain Management, Version 2.1 August 200

45、1VisualReprinted with permission, J.R. Tony Arnold, Introduction to Materials Management, Prentice-Hall.Planning, Executing, and Controlling5-27Basics of Supply Chain Management, Version 2.1 August 2001VisualData RequirementsMust KnowObtained FromlWhat and how many to produceMRP, Open OrderslWhen pa

46、rts are neededMRPlWhat operations are neededRoutingslHow much time operations will takeRoutingslHow much capacity is available at each Work Canterswork center5-28Basics of Supply Chain Management, Version 2.1 August 2001VisualSchedulingObjectiveslMeet delivery dateslEffectively use manufacturing res

47、ourcesInvolveslEstablishing start and finish dates for each operation needed to complete an order5-29Basics of Supply Chain Management, Version 2.1 August 2001VisualScheduling and Loading TechniquesForward scheduling:Activities are schedule from a start date with the completion date of an order comp

48、utedBackward scheduling: Activities are scheduled back from the due dateInfinite loading:Assumes capacity is infinite at any work centerFinite loading:Assumes there is a definite limit to capacity at any work center5-30Basics of Supply Chain Management, Version 2.1 August 2001VisualReprinted with pe

49、rmission, BMS Associates, Inc.Backward and Forward Scheduling5-31Basics of Supply Chain Management, Version 2.1 August 2001VisualBackward Vs forward schedulingBackward schedulinglmost operations are backward schedulingldo not commit resources until neededlAvoid building of inventory and costForward

50、schedulinglusing excess capacity and leveling the workloadlbetter utilization Basics of Supply Chain Management, Version 2.1 August 2001VisualInfinite versus Finite LoadingSource: Bihun and Musolf, Capacity Management Review Course, 19855-32Basics of Supply Chain Management, Version 2.1 August 2001V

51、isualPreferred: infinite scheduling Complexity of finite schedulingLack the ability to determine actual loadEasy to add resources, overtime (in PRC)Basics of Supply Chain Management, Version 2.1 August 2001VisualBottleneckslBottlenecks control the throughput of all products processed by themlWork ce

52、nters feeding bottlenecks should be scheduled at the rate the bottleneck can processlA time buffer inventory should be established before the bottlenecklWork centers fed by the bottleneck have their throughput controlled by the bottleneck5-33Basics of Supply Chain Management, Version 2.1 August 2001

53、VisualBottleneck in intermittent manufacturingIntermittent (Job shop) manufacturing layout by processMaterials flow is not regulatedBottleneck happens when several orders jam at the same work center.Basics of Supply Chain Management, Version 2.1 August 2001VisualExecuting the planWhat happen if orde

54、r is released when all resources are not available:lincreased work in processlworking on wrong ordersldelivery not metBasics of Supply Chain Management, Version 2.1 August 2001VisualExecute the PlanShop Order PacketlOrder number, part number, name and description, and quantitylEngineering drawingslB

55、ills of materiallRoute sheetslMaterial issue ticketslTool requisitionslJob tickets and move tickets5-34Basics of Supply Chain Management, Version 2.1 August 2001VisualBacklog & BackorderBacklogBackorderBasics of Supply Chain Management, Version 2.1 August 2001VisualPeriod12345TotalPlanned input3

56、832364044190Actual input3432324240180Cumulative variancePlanned output4040404040200Actual output3236444436192Cumulative variancePlanned backlog32Actual backlog32Work center:201Capacity per period:40 standard hoursInput/Output Control5-35Basics of Supply Chain Management, Version 2.1 August 2001Visua

57、lInput/Output ControlPeriod12345TotalPlanned input3832364044190Actual input3432324240180Cumulative variance-4-4-8-6-10-10Planned output4040404040200Actual output3236444436192Cumulative variance-8-12-8-4-8-8Planned backlog323022181822Actual backlog323430181620Work center:201Capacity per period:40 sta

58、ndard hoursVisual 5-35Basics of Supply Chain Management, Version 2.1 August 2001VisualPeriod123TotalPlanned input383642Actual input343640Cumulative variancePlanned output404040Actual output423642Cumulative variancePlanned backlog30Actual backlog30Work center:20Capacity per pay period:40 standard hou

59、rsProblem 5.45-36Basics of Supply Chain Management, Version 2.1 August 2001VisualSolution 5.4Period123TotalPlanned input383642116Actual input343640110Cumulative variance-4-4-6-6Planned output404040120Actual output423642120Cumulative variance2-200Planned backlog30282426Actual backlog30222220Work cent

60、er:20Capacity per pay period:40 standard hoursVisual 5-36Basics of Supply Chain Management, Version 2.1 August 2001VisualCorrective Action:Backlog is downbut input is 6 hrs less than plannedoutput is as plannedCheck:lIs a problem exist? lWhat type of action should be taken?How to use the input / output