ISE 542 Production Planning

1
ISE 542Production Planning ControlClass
Notes-Chapter 3B

• Dr. Gürsel A. Süer
• IMSE Dept
• Ohio University
• Winter 2003

2
PULL SYSTEM

• PRODUCTION KANBAN
• authorization to produce
• CONVEYANCE KANBAN
• Authorization to move material
• EXPRESS KANBAN
• to deal with emergencies
• SUPPLIER KANBAN
• To synchronize material flow between
  manufacturing plant and its suppliers
• SIGNAL KANBAN (Triangular, Rectangular)
• Reorder Point, Order Quantity

3
NUMBER OF KANBANS

• NUMBER OF PRODUCTION AND CONVEYANCE KANBANS ARE
  CALCULATED USING DIFFERENT VARIATION OF THE SAME
  FORMULA
• NPK D PLT (1SS) / CS
• DD DAILY DEMAND
• PLT PRODUCTION LEADTIME
• SS SAFETY STOCK PERCENTAGE
• CS CONTAINER SIZE

4
NUMBER OF KANBANS

• NPK D PLT (1SS) / CS
• DD 300 units/day
• PLT 0.5 day
• SS 10
• CS 25 units
• NPK 300.51.1 / 25 165/25 7

5
NUMBER OF KANBANS

• NUMBER OF PRODUCTION AND CONVEYANCE KANBANS ARE
  CALCULATED USING DIFFERENT VARIATION OF THE SAME
  FORMULA
• NCK D TLT (1SS) / CS
• DD DAILY DEMAND
• TLT TRANSFER LEADTIME
• SS SAFETY STOCK FACTOR
• CS CONTAINER SIZE

6
CONTAINER SIZE CONSIDERATIONS

• MATERIAL HANDLING LIMITATIONS
• BINS, CONTAINERS, RACKS, ETC.
• 2. ECONOMIC CONSIDERATIONS
• MINIMUM COST (SETUP COST, CARRYING COST, ETC.)

7
DUAL KANBAN CARD

• PK is received in the rightmost box
• It is transferred from the rightmost box to K123
  box and is placed at the end of Kanban Cards Deck
• When the PK is picked up from the K123 box, it
  authorizes W/C K123 to produce the quantities per
  Kanban
• W/C K123 operator removes a container from stock
  location A-12.
• He removes CK from the container and places PK on
  it
• The removed CK is placed in A-12 box

8
DUAL KANBAN CARD

• Operator of W/C K123 and/or a material handler
  goes to stock location A-07 with the CK in A-12
  box
• He gets a replacement container
• PK on the container is removed and CK is placed
  on it
• PK is placed in A-07
• PK is transferred to W/C Y321 box
• Replacement container is returned to stock
  location A-12.

9
DUAL KANBAN FLOW
PRECEDING W/C
FOLLOWING W/C
SL A-07 SL A-12
BOX-PK
BOX-CK
W/C Y321
W/C K123
BOX-PK
BOX-PK
BOX-CK
BOX-PK
BOX-PK
BOX-CK
BOX-PK
BOX-PK
BOX-PK
PK
CK
PK
Y321 BOX A-07 BOX A-12 BOX K123 BOX

10
DUAL KANBAN FLOW
PRECEDING W/C
FOLLOWING W/C
SL A-07 SL A-12
BOX-PK
BOX-CK
W/C Y321
W/C K123
BOX-PK
BOX-PK
BOX-CK
BOX-PK
CK
BOX-PK
BOX-CK
BOX-PK
BOX-PK
BOX-PK
PK
CK
PK
Y321 BOX A-07 BOX A-12 BOX K123 BOX

11
DUAL KANBAN FLOW
PRECEDING W/C
FOLLOWING W/C
SL A-07 SL A-12
BOX-PK
BOX-CK
W/C Y321
W/C K123
BOX-PK
BOX-CK
BOX-PK
BOX-CK
BOX-PK
BOX-PK
BOX-CK
BOX-PK
PK
BOX-PK
PK
PK
CK
PK
Y321 BOX A-07 BOX A-12 BOX K123 BOX

12
DUAL KANBAN FLOW
PRECEDING W/C
FOLLOWING W/C
SL A-07 SL A-12
BOX-PK
BOX-CK
W/C Y321
W/C K123
BOX-PK
BOX-PK
BOX-CK
BOX-PK
BOX-PK
BOX-CK
BOX-PK
BOX-PK
PK
CK
PK
Y321 BOX A-07 BOX A-12 BOX K123 BOX

13
DUAL KANBAN FLOW
PRECEDING W/C
FOLLOWING W/C
SL A-07 SL A-12
BOX-PK
BOX-CK
W/C Y321
W/C K123
BOX-PK
BOX-PK
BOX-CK
BOX-PK
BOX-PK
BOX-CK
BOX-PK
PK
BOX-PK
PK
CK
PK
Y321 BOX A-07 BOX A-12 BOX K123 BOX

14
DUAL KANBAN FLOW
PRECEDING W/C
FOLLOWING W/C
SL A-07 SL A-12
BOX-PK
BOX-CK
W/C Y321
W/C K123
BOX-PK
BOX-PK
BOX-CK
BOX-PK
BOX-PK
BOX-CK
BOX-PK
BOX-PK
PK
CK
PK
Y321 BOX A-07 BOX A-12 BOX K123 BOX

15
DUAL KANBAN FLOW
PRECEDING W/C
FOLLOWING W/C
SL A-07 SL A-12
BOX-PK
BOX-CK
W/C Y321
W/C K123
BOX-PK
BOX-PK
BOX-CK
BOX-PK
BOX-PK
BOX-PK
BOX-PK
BOX-PK
CK
PK
CK
PK
Y321 BOX A-07 BOX A-12 BOX K123 BOX

16
DUAL KANBAN FLOW
PRECEDING W/C
FOLLOWING W/C
SL A-07 SL A-12
BOX-PK
BOX-CK
W/C Y321
W/C K123
BOX-PK
BOX-PK
BOX-CK
BOX-PK
BOX-PK
BOX-PK
BOX-PK
BOX-PK
CK
PK
CK
PK
Y321 BOX A-07 BOX A-12 BOX K123 BOX

17
DUAL KANBAN FLOW
PRECEDING W/C
FOLLOWING W/C
SL A-07 SL A-12
BOX-PK
BOX-CK
W/C Y321
W/C K123
BOX-PK
BOX-PK
BOX-CK
BOX-PK
BOX-PK
BOX-PK
BOX-PK
BOX-CK
PK
PK
CK
PK
Y321 BOX A-07 BOX A-12 BOX K123 BOX

18
DUAL KANBAN FLOW
PRECEDING W/C
FOLLOWING W/C
SL A-07 SL A-12
BOX-PK
BOX-CK
W/C Y321
W/C K123
BOX-PK
BOX-PK
BOX-CK
BOX-PK
BOX-PK
BOX-CK
BOX-PK
BOX-PK
PK
CK
PK
PK
Y321 BOX A-07 BOX A-12 BOX K123 BOX

19
DUAL KANBAN FLOW
PRECEDING W/C
FOLLOWING W/C
SL A-07 SL A-12
BOX-PK
BOX-CK
W/C Y321
W/C K123
BOX-PK
BOX-PK
BOX-CK
BOX-PK
BOX-PK
BOX-CK
BOX-PK
BOX-PK
PK
CK
PK
PK
Y321 BOX A-07 BOX A-12 BOX K123 BOX

20
DUAL KANBAN FLOW
PRECEDING W/C
FOLLOWING W/C
SL A-07 SL A-12
BOX-PK
BOX-CK
W/C Y321
W/C K123
BOX-PK
BOX-PK
BOX-CK
BOX-PK
BOX-PK
BOX-CK
BOX-PK
BOX-PK
PK
CK
PK
Y321 BOX A-07 BOX A-12 BOX K123 BOX

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PRODUCTION KANBAN

Work Center No W/C 100
Part Number to be Produced tsp343 Container
Capacity 50 units Stock Location to Store
SL25 Materials Required material no
tsp215 stock location SL26 part no
tsp110 stock location SL27
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CONVEYANCE KANBAN
Following work center w/c 200 stock location
no A-12
Part Number tsp777 Container capacity
50 Number of Kanban Released 7 of 12
Stock location A-07 Preceding work center W/C
100
23
EXPRESS KANBAN
COLOR, SHAPE-CODED TO DISTINGUISH FROM
OTHERS HIGHER PRIOIRITY IS GIVEN TO EXPRESS KANBAN
24
SIGNAL KANBANS
ORDER QUANTITY
500 UNITS
RE-ORDER POINT
200 UNITS
25
SUPPLIER KANBAN
CARDS
EMPTY BOXES
SUPPLIER
PLANT
DAY 1- 800 AM
Leave the Plant
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SUPPLIER KANBAN
CARDS
EMPTY BOXES
SUPPLIER
PLANT
DAY 1- 1000 AM
Arrive at Supplier
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SUPPLIER KANBAN
CARDS
EMPTY BOXES
SUPPLIER
PLANT
DAY 1- 1100 AM
Unload empty boxes and deliver cards
28
SUPPLIER KANBAN
SUPPLIER
PLANT
f
DAY 1- 1200 AM
f
Load full boxes and pickup cards
f
(Previous days materials)
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SUPPLIER KANBAN
produce
SUPPLIER
PLANT
DAY 1- 1200 AM
Leave the Suppliers Plant
30
SUPPLIER KANBAN
SUPPLIER
PLANT
DAY 1- 200 pm
Arrive at plant
31
SUPPLIER KANBAN
SUPPLIER
PLANT
f
f
f
DAY 1- 300 pm
Unload full boxes and deliver kanbans
32
UNIFORM SCHEDULING

• A PLANNING METHOD FOR RESOURCE ALLOCATION BASED
  ON SMOOTH AND HOMOGENIZED PRODUCTION FLOW
• BASIC STRATEGY IS TO PRODUCE TO EXACT DEMAND
• UNIFORM SCHEDULING IS A PLANNING TOOL THAT AIMS
  TO DETERMINE NECESSARY RESOURCES TO MEET PLANNED
  PRODUCTION. MOREOVER, IT DOES NOT SERVE AS AN
  EXECUTION TOOL. EXECUTION OF THE PLANS ARE
  REALIZED BY USING FINAL ASSEMBLY SCHEDULES AND
  PULL SYSTEM (KANBAN)

33
UNIFORM SCHEDULING

• UNIFORM SCHEDULING HAS TWO MAJOR COMPONENTS
• LOAD LEVELING
• PLANNING TO BUILD THE SAME PRODUCT MIX EVERY
  SINGLE DAY DURING A GIVEN MONTH. LEVELS MIGHT
  CHANGE FROM MONTH TO MONTH, BUT EACH DAY WITHIN
  THAT MONTH WILL BE EXACTLY THE SAME.
• 2. CYCLE TIME
• TIME BETWEEN SUCCESSIVE UNITS

34
UNIFORM SCHEDULING
35
LOAD LEVELING
36
LOAD LEVELING
37
PP vs. U/S
38
MIXED MODEL SEQUENCING

• Product A B C D
• 16000 10000 4000 2000
• 8 5 2 1
• Sequence ABACABADABACABAB

39
SETUP REDUCTION

• External setup elements
• setup elements that can be performed while
  machine is still running (prepare tools,
  materials, etc.)
• 2. Internal setup elements
• (setup elements that require machine stoppage)

40
SETUP REDUCTION

• Eliminate external setup elements
• Improve methods to reduce internal setup elements