Dr. Ron . Lembke. pp. . 182-208. 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: 529113
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6 - Manufacturing Resource Planning
Dr. Ron
Lembke
pp.
182-208
Slide2How 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
6.2
Order quantity is 50 units
LT is one week
I’ve added “Net requirements” and “scheduled releases” rows to Figure for clarity
Slide3Fig 6.2
6 units short
Slide4Fig 6.2
Order 50 units week earlier
Slide5Fig 6.2
Ending inventory
Slide6Terminology
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 production
Move to scheduled receipts as late as possible
Preserves flexibility
Slide7Figure 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)
Slide8314 scoop assembly
314 scoop assembly
14127 Rivet (6)
019 Blade (steel)
2142 Scoop (aluminum)
Slide913122 Top Handle Assembly
1118Top handleCoupling (steel)
11495 Welded
Top handle bracket
Assembly
13122 Top Handle Assembly
457 Top handle
(wood)
129 Top Handle
Bracket (steel)
082 Nail (2)
Slide10BOM Explosion
Process of translating net requirements into components part requirements
Take into account existing inventories
Consider also scheduled receipts
Slide11BOM Explosion Example
Need to make 100 shovels
We are responsible for handle assemblies.
Slide1213122 Top Handle Assembly
1118Top handleCoupling (steel)
11495 Welded
Top handle bracket
Assembly
13122 Top Handle Assembly
457 Top handle
(wood)
129 Top Handle
Bracket (steel)
082 Nail (2)
Slide13Net Requirements
Sch Gross NetPart Description Inv Rec Req ReqTop handle assy 25 -- 100 75 Top handle 22 25 Nail (2 required) 4 50 Bracket Assy 27 -- Top bracket 15 -- Top coupling 39 15
Slide14Figure 6.5
Sch Gross NetPart Description Inv Rec Req ReqTop 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 15
Slide1513122 Top Handle Assembly
1118Top handleCoupling (steel)
11495 Welded
Top handle bracket
Assembly
13122 Top Handle Assembly
457 Top handle
(wood)
129 Top Handle
Bracket (steel)
082 Nail (2)
Slide16Figure 6.5
Sch Gross NetPart Description Inv Rec Req ReqTop 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 --
Slide17Timing 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. 231
Back schedule Fig.
7.7 p.232
Slide18Fig 6.8 – 13122 Top Handle Assy
p. 233
Slide19Fig 6.8 – 13122 Top Handle Assy -2
Slide2013122 Top Handle Assembly
1118Top handleCoupling (steel)
11495 Welded
Top handle bracket
Assembly
13122 Top Handle Assembly
457 Top handle
(wood)
129 Top Handle
Bracket (steel)
082 Nail (2)
X
Slide21457 Top Handle
One handle for
Each assembly
Slide22457 Top Handle
Slide23457 Top Handle
Slide2413122 Top Handle Assembly
1118Top handleCoupling (steel)
11495 Welded
Top handle bracket
Assembly
13122 Top Handle Assembly
457 Top handle
(wood)
129 Top Handle
Bracket (steel)
082 Nail (2)
X
Slide2513122 Top Handle Assembly
1118Top handleCoupling (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
Slide26082 Nail (2 required)
Two
nails for
Each assembly
Slide27082 Nail (2 required)
Slide28082 Nail (2 required)
Slide29082 Nail (2 required)
Slide3013122 Top Handle Assembly
1118Top handleCoupling (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
Slide3111495 Bracket Assembly
One
bracket for
Each assembly
Slide3211495 Bracket Assembly
One
bracket for
Each assembly
Slide3311495 Bracket Assembly
One
bracket for
Each assembly
Slide3411495 Bracket Assembly
Slide3513122 Top Handle Assembly
1118Top handleCoupling (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
Slide36129 Top Bracket
Slide37129 Top handle bracket
Slide3813122 Top Handle Assembly
1118Top handleCoupling (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
X
Slide391118 Top handle coupling
Slide401118 Top handle coupling
Slide411118 Top handle coupling
Slide42Other 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. 14
Slide43Homework
DQ: 3, 7
Problems: 3,5,6,7
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