UPES

Production Planning & Control

Assignment 1

Submitted to: - Submitted by:-

Mr. Ameesh Singla Vasu Bhardwaj
Mechanical Dept. Roll No: 36
CoES Sap Id- 500039951
 Material Requirement Planning (MRP I)
It is the most comprehensive approach to manufacturing
inventory.
It determines item by item, what is to be processed and
when, as well as what is to be manufactured when.
It is based on order priorities and available capacities.
When to use it
Job shop production
Complex products
Assemble to order environments
Discrete and dependent demand items
Advantages of using it
Reduces inventory levels
Reduce component shortage
Improve shipping performance
Improve customer service
Improve productivity
Reduce purchasing cost
Improve production schedules
Reduce lead time
Less scrap and rework
 Basic steps of MRP I
Identifying requirements
Running MRP- Creating the suggestions
Firming the suggestions

MRP I Inputs
Product structure file
Master production schedule
Inventory master file

Manufacturing Resource Planning (MRP II)

It is a system used for planning the future requirement of the
dependent demand items.
It basically determine when to order.
Inputs in MRP II
Bill of material
Master production schedule
Inventory status
Benefits
Better control of inventories
Improved scheduling
Productive relationships with
 Improved design control
Better quality and quality control
For financial and costing:
Reduced working capital for inventory
Improved cash flow through quicker deliveries
Accurate inventory records
Key Elements
Sales and Operations Planning (SO&P)
Sales Forecasting
Master Production Schedule (MPS)
Material Requirements Planning (MRP)
Capacity Requirements Planning (CRP)
Disadvantages
Error due to poor information
Use of averages

Just in time (JIT)

Definition
It is a highly coordinated processing system in which goods
move through the system and services are performed, just
as they need.
Meaning
Producing the quantity of units that is needed.
Producing them on the date required.
Supplier delivers the exact quantity demanded at the
scheduled time and date.

Objectives
Zero lead time
Zero failures
Zero inventory
Flexible manufacture
Eliminate waste
Flow process
Building Blocks
JIT is a combination of product design, manufacturing plan &
control, process design and human resource.

Aggregate Planning
Meaning
It is a process of developing, analysing and maintaining an
initial, approximate schedule of the overall operation of an
organization.
 This plan generally contains targeted sales forecasts,
production levels, inventory levels and customer backlogs.

Definition
This is an operational activity that does an aggregate plan for
the production process, in advance of 6 to 18 months, to give
an idea to management as to what quantity of materials
and other resources are to be procured.
Objectives
Minimize cost/ Maximize profits
Maximize customer service
Minimize inventory investment
Minimize changes in production rates
Minimize changes in workforce levels
Maximize utilization of plant and equipment

Process
1. Determine demand for each period
2. Determine capacities for each period
3. Identify policies that are pertinent
4. Determine units cost for units produced
5. Develop alternative plans and compute costs for each
6. Select the best plan that satisfies objective.
Strategies
1. Level strategy
2. Chase strategy
Techniques
1. Linear Programming Model
2. Linear Decision Rule
3. Simulation

Line Balancing
Definition
This is an analysis process which tries to equally divide work
to be carried out in a production process among
workstations.
Objective
Assigning task to each workstation on such a way that there
is only a little idle time.
Procedure
Determination of tasks that must be performed to complete
one unit of a product.
Determining the order of performing the whole set of tasks.
Drawing precedence diagram.
Estimation of task time.
 Calculation of cycle time.
Determination of minimum number of workstation required.

Computer Integrated manufacturing (CIM)

CIM is the integration of the total manufacturing enterprise
through the use of integrated system and data
communications coupled with new managerial philosophies
that improves organizational and personnel efficiency.
It is an approach to control the entire production process
using computer.
Benefits of CIM
Improved customer service
Improved quality
Shorter time to market with new products
Shorter flow time
Shorter vendor lead time
Reduced inventory levels
Improved schedule performance
Greater flexibility and responsiveness
Improved competitiveness
Lower total cost
Shorter customer lead time
Increase in manufacturing productivity
 Decrease in work-in process inventory

Key challenges
Integration of components from different suppliers
Data integrity
Process control
Devices and equipment used in CIM
CNC
PNC
DNC
Technologies in CIM
Flexible Manufacturing System (FMS)
Automated Storage and Retrieval System(ASRS)
Automated Guided Vehicle (AGV)
Automated conveyance systems & Robotics

World Class Manufacturing (WCM)

It refers to the practice followed in a manufacturing
organizations, in order to consistently deliver exceptional
performance, frequently in excess of expectations.
World Class Manufacturers are those that demonstrate
industry best practice.
How a WCM is achieved
Develop the awareness of the need to make the transition to
World Class Manufacturing.
Develop the ability to search for relevant tools and to apply
them effectively.
Monitor progress so that an improvement program can be
systematically utilized.
Characteristics
Customer service.
Quality control and assurance.
Research and development/ new product development
Acquiring new technologies
Innovation
Team-based approach (adopting and using effectively)
Best practices (study and use of)
Manpower planning
Environmentally sound practices
Business partnerships and alliances
Factors which can make a WCM
Flexibility
Discipline
Equality
Team autonomy
 De-layering management
Cell organisation
Leads to ownership