Production System Design and Control
Production System Design and Control MFE 654
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This 8 page Class Notes was uploaded by Maximilian Stehr on Tuesday October 20, 2015. The Class Notes belongs to MFE 654 at Syracuse University taught by Young Moon in Fall. Since its upload, it has received 66 views. For similar materials see /class/225555/mfe-654-syracuse-university in Production at Syracuse University.
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Date Created: 10/20/15
MaketoStock Contents o Maketostock production 0 Master production scheduling 0 Additional MRP topics 0 Additional production order topics Scheduling Material availability Capacity planning MaketoStock business scenario Precision pump supplies the consumer market a They ish to maintain high service levels and short customer lead times Actual sales demand can be irregular Production should be smooth Some capacity constraints exist Production reporting and inventory movements should be simple because ofvolume Maketostock 0 Based on a forecast 0 Then fills customer orders from existing stock 0 Sales orders will not consume the planned independent requirements 0 Used often where demand is seasonal andor where production needs to be smooth Maketostock production 0 Strategy 10 Net requirement Takes Warehouse stock ll ltO account 0 Strategy 1 1 Gross requirements Does not take Warehouse stock into account Maketostock production 0 Demand program is created 0 Material planning is carried out to determine what must be produced Individual sales orders are not taken into account 0 The finished product is put into stock lfthe gross requirements the demand program is reduced 0 The finished product is shipped to customers lfthe net requirements the demand program is ced Maketostock production summary 0 Sales order are filled from warehouse stock 0 Either net or gross requirements planning is possible 0 Sales orders are not taken into account in the planning run 0 The demand program is reduced at production order goods receipt gross requirements or at shipment net requirements Functional Classification of Inventories 0 Cycle inventories o Congestion stocks 0 Safety stock 0 Anticipation inventory 0 Pipeline workin process inventories o Decoupling stock Ouantitv Discount Models All units discount model Incremental discount model Carload discount model Example of All Units Discount Model Example of Incremental Discount 0 el All Units Discount Model v A solution technique D rrhihe the largest realizable EOO value Curhpute th E ororthe luvvestpricefirst and continue vvith the hexthigherprice Step When the first EDD value is realizable i e WIIHIH the currectihterval ompare the vaiue orthe average annuai cost at the iargest realizable E00 and at all ofthe price breakpoints that are greater than the largest realizable EOO The optimai o is the point atWhich the average annuai cost is a minimum Incremental Discount Model v A solution technique Determine an algebraic expression forCOcorrespohdihg to each price intervai Use that to determine an algebraic gtlt 13 3 a 2 Substitute the expressions derived forCO yo into the derining equation rorco Compute the minimum vaiue or 0 corresponding to each price intervai separater Determine Which minima computed in 2 are realizable I e fall into the correct intervai Compare the vaiues ofthe average annuai costs at the realizable EOO vaiues and pick the lowest Carload Discount Model A carload consists ofM units The supplier charges a constant c per unit up until you have paid for the cost the remaining units in that carload Once the rst carload is full you again pay c per unit until the second carload is full and so forth Gentle Electric Company GEO Situation i purchase at 500 per unit ii guantity discount iii transportation cost Introduction to ERP Historical perspective of information system in Enterprise Levels of Information Technology in organization Examine ERP and SAP R3 in particular Overview current trends and issues Historical perspective 1950 s early 1960 s Special purpose computers Most advances in scienti c computing In 1955 a few dozen computers installed in the US About 4000 computers bythe end of the decade 1954 Univacl First electronic computer used for business data processing Predictions of future computing Leavitt and Whisler 1958 e visionary view of business computing s impact on management and organizational structure 7 Maiorcnanges predicted for middle management layerofthe organization One larger portion wno perrorm programmed tasks One specialized layerdealing vyitn lrlfurrnatlurl processing creative activities 7 Technologyto allow managers a greater ability to process data and improve decision maklrl 7 Technology Will drastically alter organization form and function Initial definition of information technology First defined by Leavitt and Whisler in 1958 Several related parts High sped computer for processing large amounts of information Application of statistical and mathematical methods to decisionm aking rocess A situation of higherorder thinking through computer program Early prediction orArtiricial lntelligence 1958 computing environment Special purpose computers Majority of computer expenditure for scientific computers Very few business data processing computers Hardwired plugboard programs Punch cards for input Printed output Magnetic tape for secondary storage General purpose computing 1963 IBM 8360 First general purpose scienti c and business computer Between 1963 and 1973 worldwide computer installations increased from 15000 to 85000 virtually no corporate computer use in 1955 Growing out fragmented use by 1965 Home computers Wdespread use by 1970 1965 1968 concept of MIS began 1965 limitations Hardware could not handle the volume Networks were limited or nonexistent Operating systems were primitive Database technology was hierarchical Reliability of systems was limited Processing was done in batch mode Interactive programming did not exist Islands of information 1982 Felt need that different areas of information processing needed to communicate The islands Of ce automation Telecommunications Data processing Should be managed and coordinated in an integrated manner Evolution of Information Technology Overall goal enter data one time one place at the source use many tim es many places e implies an integrated DBMS or abili yt ne tim t o replicate needed dat seamlesslyfrom one application r to anothe One Elace implies network or access to the integrated DBMS place changed from Batch to On line At the source greatest potential to change 7 Batcn rgt ol39lrlll39le data entry rgt electronic data interchange EDI7gt er ommerce rgt ektended supply cnain er Commerce What is ERP The integration of all computing within an organization such that 7 All maior business processes are encompassed and standardize an 7 All data are usable by all functlol lal areas ofthe business Enterprise Resource Planning lntegrate many business furlctlol39ls into one seamless application 7 Usually applications systems tnat run on top ofa RDBMS 7 Replace l00s of legacy systems in organizations who use an ERP Characteristics of ERPs Llrlllt all business processes automaticall Reduce ll39lterrprocessll39lg time transactions occur one time at tne source Maintain complete audit trail of all transactions utilize one common database Perform automatic internal conversions e g roreign currency takes legal rules for payroll improve customerservice by putting data at tne ringertips ofarly employee involve users in tne entire functlorlal cycle Urllfy backup recovery procedures and otnersystem administration tasks Secure tne system from disaster and unautnonzed use What is SAP R3 SAP is an ERP system Baan PeopleSo JD Edwards Oracle SAP R3 SAP s client server version distributes process and presentation Based on R2 mainframe version centralized of data and process R13 46d latest version R3 integrated products Summary Highly integrated application software Clientservertechnology Based on best business practices Based on open standards Various RDBMS Oracle Informix SQL etc TCPIP standard communication protocol UNIX V ndows NT 08400 etc Open interfaces Main features of R3 All business processes draw on same database Rules are con gurable and drive data integrity Operates in many languages Translates currency automatically Documents work ow business processes and the data in one set ofmodels that are highly integrated Integrates several views of data transactions managerial decision support or executive Fully customizable A K E s L0 X 3 m Y My P M M J 6 2 MM 7 G 7 55 quot39kv 2177 E r A 5 an vii34 n s 43 Q 9 93 yr35 D g wooM 54 r 7 31 s u s arM a 7 335 1443 34311 441 a 1 kaa W9 z k 61 7M Lot Sizing For individual items with timevarying demand Reasons Multiechelon assembly operations Production to contract Items with a seasonal demand pattern Items with known trends in demand that are expected to continue Parts for preventive maintenance The choice of approaches EOQ The exact best solution WagnerWhitin algorithm An approximate or heuristic method Example assumptions The demand rate is given in each period The entire requirements ofeach period must be available at the beginning ofthatperlo The ul39lltvarlable oost does not depend on the replenishment quantlty The cost factors do not change appreciablyvvlth time The item is treated entirely independently of otheritems The replenishment lead time is known With oertainty The entire orderodantity is delivered at the same ti e The oarrying cost is only applicable to inventory that is earned over rom one period to the next Potential drawbacks of WW algorithm Dif cult for the practitioner to understand than other a roaches There is a possible need for a wellde ned ending point for the demand pa ern Because MRP typically operates on a rolling schedule the replenishment quantities chosen should not change when new information about future demands becomes available Replenishments can be made only at discrete intervals