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POM

Course case studies

Case study 2.1: Development of MPS for an assembled product


A manufacturing company decides to plan the assembly of an end product over a 12-month
long planning horizon, so that inventory levels of the product over time to be kept as low as possible.
Gross requirements for this product are shown in MPS forms from below. Maximum production capacity
of assembly department of the company amounts to 400 product units/month. Two alternative MPS have
to be prepared, considering product assembly at constant capacity or at variable capacity, respectively.
Si
Period (month)
NB
S
NN
L

TOTAL
2400

MPS 2 - Assembly at a variable capacity of maximum 400 product units/month


1
2
3
4
5
6
7
8
9
10
11
12
600
200
300
200
400
100
100
300
200

TOTAL
2400

Si
Period (month)
NB
S
NN
L

MPS 1 - Assembly at a constant capacity of maximum 400 product units/month


1
2
3
4
5
6
7
8
9
10
11
12
600
200
300
200
400
100
100
300
200

0
0

-1-

POM

Course case studies

Case study 2.2: Development of cumulated MRP for two assembled products
A company wishes to plan material requirements for the production of two assembled products
with PST diagrams shown below, over a common 12-month long planning horizon. MPS planned
receipts to be met are given at the top of MRP form from beneath. Each lot assembly stage for each
product takes one-month. Inventory levels of products components over time must be kept as low as
possible, given that maximum production capacity of the department producing the components is 1000
cumulated units/month. MRP must be devised for a production of components at variable capacity.
Level 0

A
(1)

(1)

(1)

2'

Si
Period (month)
Product A
L
Product B
L
Component 1
NB
S
NN
L
Component 2
NB
S
NN
L
Component 3
NB
S
NN
L

(2)

Level 1

Level 2

1'

(1)

(1)

(1)

1'

Level 0

Level 1

(1)

3'

Level 2

MPS & MRP - Production of components at a variable capacity of maximum 1000 cumulated units/month
2
3
4
5
6
7
8
9
10
11
300
100

100

400
300

300

100

100

-2-

200
100

300
300

12

200

TOTAL
1500

200

1000

POM

Course case studies

Case study 3.1: Evaluation of type of production for a manufacturing process


A company wishes to estimate the type of production that suits manufacturing process of an
item. Process contains four operations, with following run times: Tu1 = 4 min/unit; Tu2 = 1 min/unit;
Tu3 = 2 min/unit; Tu4 = 1 min/unit. The two MRP variants taken into account give different values for
average cycle time required for production of item: Rg1 = 1 min/unit; Rg2 = 2 min/unit.
Initial data
Operation

Operation
Operation
Operation
Operation

1
2
3
4

Evaluation of type of production (V1)

Tuk
[min/unit]

Rg
[min/unit]

4
1
2
1

Initial data
Operation

Operation
Operation
Operation
Operation

1
2
3
4

TPkg

TP per
op.

A [%] B [%] C [%] D [%]

TP per
process

Evaluation of type of production (V2)

Tuk
[min/unit]

Rg
[min/unit]

4
1
2
1

TPkg

TP per

-3-

op.

A [%] B [%] C [%] D [%]

TP per
process

POM

Course case studies

Case study 3.2: Comparison of manufacturing flow strategies for a production process
A company wants to compare the use of BPF, BTF, and SPF strategies for a batch production
process, which has four operations with following run times per unit: Tu1 = 3 min/unit; Tu2 = 4 min/unit;
Tu3 = 2 min/unit; Tu4 = 1 min/unit. Each operation needs only one machine and zero setup time for
batch processing. Production batch contains 4 parts and transfer batch for BTF strategy is made of 2 parts.
Gantt charts for batch manufacturing process under the three strategies have to be compared in terms
of density and cycle time ensured for batch production.
No. Tuk Tk
op. [min/unit] [min]

No. Tuk Tk Dk-1,k Production time in the case of BTF strategy [minutes]
op. [min/unit] [min] [min]
10
20
30
40

Production time in the case of BPF strategy [minutes]


10

20

30

40

1
Production
density U

Production
density U
No. Tuk Tk
op. [min/unit] [min]

Production time in the case of SPF strategy [minutes]


10

20

Production
density U

-4-

30

40

POM

Course case studies

Case study 3.3: Operations management for a mass production process run in flow-shop
A company wants to plan the execution of a mass production process on a manufacturing line.
There are 60000 units of item to be produced along 150 working days, by using machines in the line for
8 hours daily. Manufacturing process has five operations with following run times: Tu1 = 1.2 min/unit;
Tu2 = 1.8 min/unit; Tu3 = 0.9 min/unit; Tu4 = 1.5 min/unit; Tu5 = 2.4 min/unit. Daily production schedule
for manufacturing line has to be devised, according to calculated parameters for operations management
of mass production of item.
No.
op.

Tuk mk
[min/unit]

1.2

1.8

0.9

1.5

2.4

Tk

[hours]

DAILY PRODUCTION TIME [hours]


1
2
3
4
5
6
7

-5-

WIP inventory

[units]

max.

med.

POM

Course case studies

Case study 4.1: Operations management for purchasing a raw material on AUD price schedule
A manufacturing company has to purchase a total quantity of 60000 units of raw material
item from a supplier who offers the following AUD discounted price schedule: p1 = 2 lei/unit, for
orders with size q (0, 10000] units; p2 = 1 lei/unit, for orders with size q (10000, 60000] units.
Ordering cost per order issued is 150 lei/order and rate of holding cost per unit of purchased item is
50%. Economic size of purchase order has to be determined by using the graph of function CTA (q),
and corresponding reorder period has to be set for the case that raw material item will be used in a
mass production process of 60000 units of part, during 150 working days. What if raw material item
should be consumed in a batch production process, with batches of 10000 units of part released to
production every 25 working days.
CTA
[lei]

10000

20000

30000

40000

-6-

50000

60000

q [units]

POM

Course case studies

Case study 4.2: Operations management for purchasing a raw material on MUD price schedule
A manufacturing company has to purchase a total quantity of 60000 units of raw material
item from a supplier who offers the following MUD discounted price schedule: p1 = 2 lei/unit, for
orders with size q (0, 10000] units; p2 = 1 lei/unit, for orders with size q (10000, 60000] units.
Ordering cost per order issued is 150 lei/order and rate of holding cost per unit of purchased item is
50%. Economic size of purchase order has to be set by using the graph of function CTA (q).
CTA
[lei]

10000

20000

30000

40000

-7-

50000

60000

q [units]

POM

Course case studies


Case study 5.1: Evaluation of earliest and latest start schedules for a batch production job

A company wants to verify that earliest and latest start schedules for a 3-item batch production job match
available production capacity of the 5 machines of the job-shop. Scheduling restrictions for production job are shown
with network diagram from below, in which time-windowed availability for production of machine M1 is indicated by
time lags of precedence relations existing between affected operations and start milestone. Item-based Gantt chart and
corresponding machine load chart have to be represented for each schedule.
-11d
T11,1d

T14,2d

M3,100%

P21,3d
M2,100%

-2d

P22,6d -4d

D23,12d
M5,100%

M2,100%

-1d

T32,4d -1d

I25,3d
B24,6d -2d

M3,100%

M4,100%

I33,2d
M3,100%

-1d

M1,100%

+1d

M3,100%

M5,100%

-4d

M2,100%

P31,2d

I17,1d
D16,2d

M4,100%

M1,100%

M2,100%

+1d
S

B15,2d

I13,1d
P12,2d

M1,100%

D35,6d

B34,4d -2d

-1d

I36,2d

M5,100%

M4,100%

M3,100%

EARLIEST POSSIBLE (EP)

EARLIEST POSSIBLE (EP)

-11d

days

tS = 0

10

11

12

13

14

15

16

17

18

19

M1
20 [days]

10

11

12

13

14

15

16

17

18

19

M2
20 [days]

10

11

12

13

14

15

16

17

18

19

M3
20 [days]

10

11

12

13

14

15

16

17

18

19

M4
20 [days]

10

11

12

13

14

15

16

17

18

19

M5
20 [days]

10

11

12

13

14

15

16

17

18

19

M1
20 [days]

10

11

12

13

14

15

16

17

18

19

M2
20 [days]

10

11

12

13

14

15

16

17

18

19

M3
20 [days]

10

11

12

13

14

15

16

17

18

19

M4
20 [days]

10

11

12

13

14

15

16

17

18

19

M5
20 [days]

9 10 11 12 13 14 15 16 17 18 19 20 = t F

LATEST POSSIBLE (LP)

LATEST POSSIBLE (LP)

days

-8-

POM

Course case studies


Case study 5.2: Comparison of production schedules given by forward PSS and SSS

A company wants to ensure a short flow time in job-shop for a 3-item batch production job with network diagram
shown below, in which time-windowed availability for production of machine M1 is indicated by finish-to-start time lags
between affected operations and start milestone. The two schedules under evaluation must be planned by applying forward
PSS and SSS respectively with SPT as main priority rule and LWKR as secondary rule. Machine load charts for alternative
schedules have to be represented and compared in terms of flow time ensured for batch production job.
-11d
T11,1d

T14,2d

M3,100%

P21,3d
M2,100%

-2d

P22,6d -4d

D23,12d
M5,100%

M2,100%

-1d

I25,3d
B24,6d -2d

M3,100%

M4,100%

I33,2d

T32,4d -1d

-1d

M3,100%

M1,100%

+1d

M3,100%

M5,100%

-4d

M2,100%

P31,2d

I17,1d
D16,2d

M4,100%

M1,100%

M2,100%

+1d
S

B15,2d

I13,1d
P12,2d

M1,100%

D35,6d

B34,4d -2d

-1d

M5,100%

M4,100%

I36,2d
M3,100%

-11d

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

M1
36 [days]

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

M2
36 [days]

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

M3
36 [days]

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

M4
36 [days]

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

M5
36 [days]

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

M1
36 [days]

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

M2
36 [days]

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

M3
36 [days]

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

M4
36 [days]

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

M5
36 [days]

-9-