Dr Ron TibbenLembke pp 222234 2367 240 How do we account for LT System for organizing WIP releases Consider LT for each item Look at BOM to see what parts needed Release so they will arrive just as needed ID: 601233
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Slide1
7 - Manufacturing Resource Planning
Dr. Ron Tibben-Lembke
pp. 222-234, 236-7, 240Slide2
How do we account for LT?
System for organizing WIP releases
Consider LT for each item
Look at BOM to see what parts needed
Release so they will arrive just as needed
Example Figure 7.2
Order quantity is 50 units
LT is one week
I’ve added “Net requirements” and “scheduled releases” rows to Figure for claritySlide3
Fig 7.2
6 units shortSlide4
Fig 7.2
Order 50 units week earlierSlide5
Fig 7.2
Ending inventorySlide6
Terminology
Projected Available balance
Not on-hand (that may be greater)
Tells how many will be available (in ATP sense)
Planned order releases
≠ scheduled receipts
Only when material has been committed to their productionMove to scheduled receipts as late as possiblePreserves flexibilitySlide7
Figure 7.3 1605 Snow Shovel
1605
Snow Shovel
048
Scoop-shaft
connector
13122
Top Handle
Assy
314 scoop assembly
118 Shaft (wood)
062 Nail (4)
14127
Rivet (4)Slide8
314 scoop assembly
314 scoop assembly
14127 Rivet (6)
019 Blade (steel)
2142 Scoop (aluminum) Slide9
13122 Top Handle Assembly
1118
Top handle
Coupling (steel)
11495 Welded
Top handle bracket
Assembly
13122 Top Handle Assembly
457 Top handle
(wood)
129 Top Handle
Bracket (steel)
082 Nail (2)Slide10
BOM Explosion
Process of translating net requirements into components part requirements
Take into account existing inventories
Consider also scheduled receiptsSlide11
BOM Explosion Example
Need to make 100 shovels
We are responsible for handle assemblies.Slide12
13122 Top Handle Assembly
1118
Top handle
Coupling (steel)
11495 Welded
Top handle bracket
Assembly
13122 Top Handle Assembly
457 Top handle
(wood)
129 Top Handle
Bracket (steel)
082 Nail (2)Slide13
Net Requirements
Sch Gross Net
Part Description Inv Rec Req Req
Top handle assy 25 -- 100 75
Top handle 22 25
Nail (2 required) 4 50
Bracket Assy 27 --
Top bracket 15 --
Top coupling 39 15Slide14
Figure 7.5
Sch Gross Net
Part Description Inv Rec Req Req
Top handle assy 25 -- 100 75
Top handle 22 25 75 28
Nail (2 required) 4 50 150 96
Bracket Assy 27 -- 75 48
Top bracket 15 --
Top coupling 39 15Slide15
13122 Top Handle Assembly
1118
Top handle
Coupling (steel)
11495 Welded
Top handle bracket
Assembly
13122 Top Handle Assembly
457 Top handle
(wood)
129 Top Handle
Bracket (steel)
082 Nail (2)Slide16
Figure 7.5
Sch Gross Net
Part Description Inv Rec Req Req
Top handle assy 25 -- 100 75
Top handle 22 25 75 28
Nail (2 required) 4 50 150 96
Bracket Assy 27 -- 75 48
Top bracket 15 -- 48 33
Top coupling 39 15 48 --Slide17
Timing of Production
This tells us how many of each we need
Doesn’t tell when to start
Start as soon as possible?
Dependent events (oh no, not that
!)
(We ignore statistical fluctuations)Front schedule Cutting approach (Fig. 7.6) p. 231Back schedule Fig.
7.7 p.232Slide18
Fig 7.8 – 13122 Top Handle Assy
p. 233Slide19
Fig 7.8 – 13122 Top Handle
Assy
-2Slide20
13122 Top Handle Assembly
1118
Top handle
Coupling (steel)
11495 Welded
Top handle bracket
Assembly
13122 Top Handle Assembly
457 Top handle
(wood)
129 Top Handle
Bracket (steel)
082 Nail (2)
XSlide21
457 Top Handle
One handle for
Each assemblySlide22
457 Top HandleSlide23
457 Top HandleSlide24
13122 Top Handle Assembly
1118
Top handle
Coupling (steel)
11495 Welded
Top handle bracket
Assembly
13122 Top Handle Assembly
457 Top handle
(wood)
129 Top Handle
Bracket (steel)
082 Nail (2)
XSlide25
13122 Top Handle Assembly
1118
Top handle
Coupling (steel)
11495 Welded
Top handle bracket
Assembly
13122 Top Handle Assembly
457 Top handle
(wood)
129 Top Handle
Bracket (steel)
082 Nail (2)
X
XSlide26
082 Nail (2 required)
Two
nails for
Each assemblySlide27
082 Nail (2 required)Slide28
082 Nail (2 required)Slide29
082 Nail (2 required)Slide30
13122 Top Handle Assembly
1118
Top handle
Coupling (steel)
11495 Welded
Top handle bracket
Assembly
13122 Top Handle Assembly
457 Top handle
(wood)
129 Top Handle
Bracket (steel)
082 Nail (2)
X
X
XSlide31
11495 Bracket Assembly
One
bracket for
Each assemblySlide32
11495 Bracket Assembly
One
bracket for
Each assemblySlide33
11495 Bracket Assembly
One
bracket for
Each assemblySlide34
11495 Bracket AssemblySlide35
13122 Top Handle Assembly
1118
Top handle
Coupling (steel)
11495 Welded
Top handle bracket
Assembly
13122 Top Handle Assembly
457 Top handle
(wood)
129 Top Handle
Bracket (steel)
082 Nail (2)
X
X
X
XSlide36
129 Top BracketSlide37
129 Top handle bracketSlide38
13122 Top Handle Assembly
1118
Top handle
Coupling (steel)
11495 Welded
Top handle bracket
Assembly
13122 Top Handle Assembly
457 Top handle
(wood)
129 Top Handle
Bracket (steel)
082 Nail (2)
X
X
X
X
XSlide39
1118 Top handle couplingSlide40
1118 Top handle couplingSlide41
1118 Top handle couplingSlide42
Other considerations
Safety stock if uncertainty in demand or supply quantity
Don’t let available go down to 0
Safety LT if uncertainty in arrival time of supply
Place order earlier than necessary
Order quantities
EOQ, Lot-For-Lot, Periodic Order quantity, more to come in ch. 14Slide43
Homework
DQ: 3, 7
Problems: 3,5,6,7