17.11.

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LECTURE #11
Computer Aided Process Planning
& Control

Computer-aided process planning &

control
l Process planning & control
l MRP and MRP II
l (Virtual) Enterprises & ERP Systems
l Just in time principles
l The Kanban system

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Computer-aided process planning &

control
The scope of process planning and control within
a company is to plan manufacturing process for
control
the flow of materials
tools
work in production (WIP)

Computer-aided process planning &

control
Computer-aided process planning & control
(CAPP&C) systems rely on the data generated
by all other areas of CAE.

CAPP&C can be seen as being dominant in the

structure of a CIM environment.

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Process Planning
It involves a number of activities related to

the preperation of the manufacturing

the modification of the manufacturing
the master production schedule

Process Planning
Initial planning

Weekly planning
Productivity
Productiviy Work
measurement
Improvement orders
Team Information
retrieval
PW,CW,NCW
Optimum crews Daily planning
Optimum procedure
Productivity
Velocity Field engineer Foreman

Production report
Feedback Summary reports

Information analysis Management

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Computer Aided Process Planning

Computer-aided process planning tools fully

utilize the computer’s data storage and retrieval
capabilities to manage a database of this
information.

More complex CAPP packages are known as

generative type systems.

Computer Aided Process Planning

Process planning is concerned with selecting methods of
production, tooling, fixtures, and machinery, sequence of
operations and assembly.
> Variant (derivative) System:
The computer file contains a standard process plan for the part to be
manufactured.
The standard process plan includes tools and M/T’s to be used, sequence
of manufacturing operations, operation data (speeds, feeds, time etc.)
An old plan for a similar part may easily be retrieved and modified, and the
routing sheet can be generated.
> Generative System:
The process plan is automatically generated based on the same logical
procedures followed by a traditional process planner (Expert System).

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Computerized Manufacturing
Planning and Control Systems
¨  The primary goal of MPCS (Manufacturing Planning and
Control Systems) in any organization is to ensure that
the desired products are manufactured:
•  at the right time,
•  in the right quantities,
•  meeting the quality specifications and
•  at minimum cost.
¨  The integrated activities of MPCS are:
Determining the end-item demand, translating demand
into production plans, establishing detailed plans of
material flows and tha capacity to support the overall
manufacturing plans, helping execute the plans etc...

Master Production Schedule

This production plan:
•  operates at an aggregate level (that is it does not usually
go into great detail about parts to be used, etc - hence the
name aggregate planning); and
•  is cost driven, that is it attempts to meet the specified
requirements at minimum cost.

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Master Production Schedule

The diagram below illustrates the situation and the types of
factor.

Hire
Manhours
(regular/overtime
People
Shifts

Cost
Fine Revenue
Production
Subconstractors

Inventory Demand

Master Production Schedule

This is the most general of the options allowed by
the package. LP stands for Linear Programming
and is a generalised way of modelling decision
problems.

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Linear Programming
Linear programming – LP is a method to achieve the best
outcome (such as maximum profit or lowest cost) in a
mathematical model.
It is a special case of mathematical programming.
The problem of solving a system of linear
equalities dates back at least as far as Fourier,
after whom the method of Fourier-Motzkin
elimination is named. The linear programming
method was first developed by Leonid Kantorovich
in 1937.
A larger theoretical and practical breakthrough in
the field came in 1984 when Narendra Karmarkar
introduced a new interior-point method for solving
LP problems. Leonid Kantorovich

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Linear Programming

■  Linear programming has nothing to do with

computer programming.
■  The use of the word “programming” here
means “choosing a course of action.”
■  Linear programming involves choosing a
course of action when the mathematical model
of the problem contains only linear functions.

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Scheduling
An important aspect of planning the effecient
manufacture of components and products within
the factory is that they are scheduled.

¥ Shortest processing time (SPT)

¥ Earliest due data (EDD)
¥ Moore’s algorithm
¥ Johnson’s algorithm

MATERIALS
REQUIREMENTS
PLANNING

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Material Requirements Planning

(MRP)is a methodology and system used to plan and manage
manufacturing operations. The BOM for products released to
manufacturing is a key part of the MRP system's database.

Materials Requirements Planning

a technique which assists a company in the
detailed planning of its production.

was developed in the 1960s in the US to

provide a computerized means of controlling
the availability of materials for production.

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Materials Requirements Planning

Conceptually therefore two related decisions about
ordering are :
•  timing - when to order
•  quantity - how much to order
With respect to the timing decision as late as
possible, but never planned a stockout. This is a
driving principle in MRP,

Never order before you need to,

never plan to stockout.

Materials Requirements Planning

Production
Products
planning Suppliers

Bill of Material
materials explosion
Order Purchase
Recommendations Ordering
Allocations

Management Purchase
Raw Materials
Reports Receipts orders
Control

Stock Take Issues & Returns

Routines GRNs
Production
control

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Materials Requirements Planning

It is a more a statement of how the company
wishes or even needs to affect the market rather
than how the market is actually performed.

The master production schedule is set up by the

materials requirements planning (MRP) system.

Materials Requirements Planning

Purchase
Customer order
Customer Order Supplier

Received
Received Order Purchase Order
MRP
PROCESS
Result MRP-
process

Inventory Purchase order Check-status Management

Inventory

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Materials Requirements Planning

This quantity decision rule can be varied in MRP
and some other rules are:
•  Fixed order quantity rule (sometimes called FOQ
or FO) - the quantity ordered is an integer multiple
of the same fixed amount each time an order is
made
•  Fixed period requirements rule (sometimes called
FPR) - the quantity ordered should be enough for
a fixed number of periods

MRP Operation
The operation of a materials requirements
planning system is key to that of a CIM
system as it utilitize data from a wide range
of the CAE facilities within a company.

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MRP Operation
Multi-layer hierarchical description of MRP activity.

Plan and forecast

Customer orders Long-term production
requirements

Medium-term: plan
production for
infinite capacity

Short-term: plan and

Real-time
investigare individual
system control
batch

MRP System Structure

MRP software is essentially a database
management system. The database at the heart
of an MRP system is held in text form.
The database management system for MRP
presents the user with a series of functions for
accessing, distributing and manipulating that
data.

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MRP System Structure

A database can be defined as a collection of one or
more data files relating to a particular application
and the database management system is the
software used to access and manipulate that
data.

File

Record 1 Record 2 Record 3

Fields 1 2 3 4 5 6 7

MRP System Structure

The database controlled and managed by an MRP
system consists of many files including part
master file, the bill-of-materials and other data
files such as the vendor file.

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MRP overview
In MRP two types of information are required:

•  Structural information
The structural information required in MRP relates to:
item information; and
bill of materials.

•  Tactical information

Bill of materials
In order to show the make-up (in terms of the parts
needed for production) we have a Bill of Materials
(BOM) for the end-product (namely the chair).

Chair

Seat (1) Back (1) Legs (4)

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Bill of materials
The BOM is best
thought of as being
divided into levels, with
the final item (the
chair) being at the top
level and the items
needed to make up a
chair being at the
second level.

MANUFACTURING
RESOURCES PLANNING

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Manufacturing Resources Planning

By the 1970s, the system had developed into
manufacturing resource planning (MRP II).

It is a method for the effective planning of all

resources of a manufacturing company. Ideally, it
addresses operational planning in units, financial
planning, and has a simulation capability to answer
"what-if" questions and extension of closed-loop
MRP.

Manufacturing Resources Planning

MRP II is (essentially) MRP but with more added. It
may also include capacity requirements planning
(essentially try and automatically include capacity
restrictions in the planning process).

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Man Finances ERP

Operator A hours
Operators
Operator B Human Resources

Material A
Manufacturing
Material B Materials process Finished goods

Material C
MRP I

Equipment A
Equipments Infractructure Customer
Equipment B Machine Relations
hours Management
MRP II ERP

Characteristic basic modules

Ø  Master production schedule (MPS)

Ø  Item master data (technical data)
Ø  Bill of materials (BOM) (technical data)
Ø  Production resources data (manufacturing technical data)
Ø  Inventories and orders (inventory control)
Ø  Purchasing management
Ø  Material requirements planning (MRP)
Ø  Shop floor control (SFC)
Ø  Capacity planning or capacity requirements planning (CRP)
Ø  Standard costing (cost control)
Ø  Cost reporting / management (cost control)

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Manufacturing Resources Planning

concentrating upon the planning of the
manufacturing resources (e.g. people, machines,
storage), rather than limiting ourselves to the
planning of the materials requirements.

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ERP
Enterprise Resource Planning

Introduction to ERP concept

•  ERP is short of Enterprise Resource Planning.
•  It is business management system that integrates
all facets of the business such as
•  Manufacturing operations
•  Supply chain
•  Customers
•  Human resource
•  finance

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Introduction to ERP Concept

ERP is manufacturing sector was primarily to address to
know :

①  Stock of finished goods

②  Understand material movement

In 1970 the focus of manufacturing systems shifted to MRP.

MRP software applications have emerged to translate Master Schedule
built for the end products into time phased net requirement.

Introduction to ERP Concept

In 1980 the concept of MRPII was evolved. All the

resources such as People, Infrastructure, Process

To various user group necessitate planning and

utilization of such resources.

MRP was further extended to cover areas like

Engineering Projects, Management etc & led to
what is known as ERP.

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What is ERP ?
•  Facilitates company-wide integrated information
system covering all functional areas.
•  Performs core corporate activities and increases
customer service augmenting corporate image.
•  Organizes & optimizes the data input
methodologies systematically.

Evolution of ERP Systems

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Evolution of Planning Systems

•  Materials Requirement Planning (MRP)
•  Manufacturing Resource Planning (MRP II)
•  Enterprise Resource Planning (ERP)

Other terminologies are

•  Money Resource Planning (MRP III)
•  Supply Chain Management
•  Value Chain Management

Subsystems of ERP
•  Logistics
•  Bill of materials
•  Sales & marketing
•  Master scheduling
•  Materials requirement planning
•  Capacity requirement planning
•  Purchasing
•  Shop floor control
•  Accounts payable/receivable
•  HR

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Integration of Information Systems

Enterprise Resource Planning

ERP is basically huge databases of information
coupled with business rules, logic and constraints
that allow users to interact.
The scope of these systems encompass the entire
company. Example functionality includes
accounting, production, inventory, and customer
management.

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Enterprise Resource Planning

•  ERP systems are the highest level systems in a
company that allow a customer to enter an order,
track that order, build the order, ship the order to
the customer, and then receive payment for the
order.
•  Typical ERP data would include product lists,
inventory, customer lists, customer orders,
invoices, purchase orders, etc. Typical ERP rules
would be "check customer credit before sending
order to MRP".

Enterprise Resource Planning

integrate internal and external management information
across an entire organization, embracing

¤ finance/accounting,
¤ manufacturing,
¤ sales and service,
¤ customer relationship
management,
¤ etc.

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Enterprise Resource Planning

Enterprise Resource Planning

Their purpose is to facilitate the flow of information
between all business functions inside the
boundaries of the organization and manage the
connections to outside stakeholders

ERP systems automate this

activity with an integrated
software application.

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Advantages

Ø Sales forecasting, which allows inventory

optimization
Ø Order tracking, from acceptance through
fulfillment
Ø Revenue tracking, from invoice through cash
receipt
Ø Matching purchase orders (what was ordered),
inventory receipts (what arrived), and costing
(what the vendor invoiced)

Disadvantages
Ø  Customization is problematic.
Ø  Re–engineering business processes to fit the ERP system
may damage competitiveness and/or divert focus from
other critical activities
Ø  ERP can cost more than less integrated and/or less
comprehensive solutions.
Ø  High switching costs increase vendor negotiating power
vis a vis support, maintenance and upgrade expenses.
Ø  Overcoming resistance to sharing sensitive information
between departments can divert management attention.
Ø  Integration of truly independent businesses can create
unnecessary dependencies.
Ø  Extensive training requirements take resources from daily
operations.

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History of ERP
•  The concept of ERP has been around since the
1960’s.
•  1972 five managers of IBM left, to start what is
SAP (System, Applications, and Products)
•  SAP was the first company to invent ERP
software.

Anatomy of ERP

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Anatomy of ERP

ERP Software Benefits

Ø Reduced IT software support requirement
Ø Reduced hardware and servers
Ø Intuitive, configurable system interfaces
Ø Reduction in software training
Ø Customizable open source code
Ø Cost of future innovation is dramatically
decreased
Ø Ability to respond to new opportunities increases

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Vendors of ERP

ERP Software

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ERP Product Selection Creteria

Beyond ERP

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JUST IN TIME

Just-in-Time History

JIT originated in Japan. Its introduction as a

recognised technique/philosophy/way of
working is generally associated with the Toyota
motor company, JIT being initially known as the
"Toyota Production System".
Note the emphasis here - JIT is very much a
mindset/way of looking at a production system that
is distinctly different from what (traditionally) had
been done previous to its conception.

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Just-in-Time
JIT system was developed at the Toyota Motor
company in Japan in mid 1970s by Taiichi Ohno and
his several associates.

Just-in-Time
The roots of JIT system can probably be traced to the
Japanese environment wherein lack of space, lack of
natural resource were considered as waste of
resources.
Japanese have developed an aversion to waste of
any type, whatsoever it may be. Scrap and rework
were also taken as waste and thus Japanese strive
for perfect quality.

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Just-in-Time
So too in a manufacturing operation component
parts could conceptually arrive just-in-time to be
picked up by a worker and used.
So we would at a stroke eliminate any inventory of
parts, they would simply arrive just-in-time!
Similarly we could produce finished goods just-in-
time to be handed to a customer who wants them.
So, at a conceptual extreme, JIT has no need for
inventory or stock, either of raw materials or work
in progress or finished goods.

Just-in-Time
Just-in-time and MRP are two different
systems for controlling production. It is often
said that:
•  MRP = a 'Push' system
•  JIT = a 'Pull' system

Really this is an incorrect analysis - MRP is a

system based on fulfilling predicted usage in
a set time period.

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J-I-T Objectives
•  Reduce cost by eliminating waste
•  Make it easier to achieve & assure
quality
•  Attempt to create work sites that
respond quickly to change
•  Organize work sites to emphasize
human resource

Japanese View of Productivity

Reduce cost by eliminating waste —any
element of production that does not add value
to the final product
Waste is found in:
v  Overproduction
v  Inventory
v  Conveyance
v  Defects & correction
v  Waiting
v  Processing

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Japanese terms
There are a number of Japanese terms associated with JIT
that you may encounter. I have listed some below for you:
•  Andon - trouble lights which immediately signal to the
production line that there is a problem to be resolved
•  Jikoda - autonomation - enabling machines to be
autonomous and able to automatically detect defects
•  Muda - waste
•  Mura - unevenness
•  Muri - excess
•  Poka-yoke - "foolproof" machines and methods so as to
prevent production mistakes
•  Shojinka - a workforce flexible enough to cope with
changes in production and using different machines
•  Soikufu - thinking creatively, having inventive ideas

JIT Approach
•  Integrated (systems) approach to
production
•  Efficiently use resources
(facilities; materials; labor)
•  Eliminate waste (muda),
uneveness (mura), and
overburden (muri) —3 m’s
•  Inventory

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JIT Approach

The Aims of Just-in-time

The principles is envisaged in Waldner refer to as

the five zeros attitude namely,
•  Zero stock
•  Zero lead time
•  Zero defects
•  Zero breakdowns
•  Zero paperwork

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Elements of Just-In-Time
¤ regular meetings of the workforce (e.g. daily/weekly)
¤ discuss work practices, confront and solve problems
¤ an emphasis on consultation and cooperation (i.e.
involving the workforce) rather than confrontation
¤ modify machinery, e.g. to reduce setup time
¤ reduce buffer stock
¤ expose problems, rather than have them covered up
¤ reveal bad practices
¤ take away the "security blanket" of stock

Benefits of JIT
•  Increased productivity
•  Better quality
•  Reduced lead time
•  Less scrap & rework (less resources)
•  Less work in process (WIP)
•  Higher worker motivation & more teamwork
•  Saved space
•  Increased worker & equipment efficiency
•  Benefits across functional boundaries (e.g.,
manufacturing; manufacturing engineering; purchasing;
sales & marketing; accounting; quality control; assembly)

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Work in process
Work in process or in-process inventory includes the set at
large of unfinished items for products in a production
process.
These items are not yet completed but either just being
fabricated or waiting in a queue for further processing or
in a buffer storage.

Work in process
The whole stock or inventory for a JIT company is in the
work in process (WIP).
The amount of WIP can be reduced by the shortening of
inter-operational transportation times.

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Benefits of JIT
Finally ,
•  Easy to talk about, difficult to implement
•  Problems solved at root cause level
•  Doesn’t allow for labor or equipment
disruption
•  Doesn’t consider market forecasting
procedures
•  Benefits outweigh challenges

Just-in-Time
Value added, Kaizen, Six sigma, Quality at the
Source, Problem Solving Tools, Planning Tools

Kanban
Empowerment
Management TQM Poka Yoke
Pull
support Training
VHI
Quality circles
JIT TPM
Work teams PI Manufacturing SMED
Job rotation Techniques
5S
Job enlargement
Jidoka
Job enrichment
Group Technology
Profit sharing
manufacuting cell

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KANBAN

Kanban
The Japanese world kanban means card or sign
and it is by the use of cards or kanbans that
continuous flow of production within this type of JIT
system is regulated.

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Material flow & building of schedule in

a pull system

Kanban
In order to have a method of controlling production
(the flow of items) in this new environment Toyota
introduced the kanban.
The kanban is essentially information as to what has
to be done. Within Toyota the most common form
of kanban was a rectangular piece of paper within
a transparent vinyl envelope.

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Rules for Kanban

•  No withdrawal of parts without a kanban
•  Subsequent process comes to withdraw only what is
needed
•  Do not send defective parts to subsequent process
•  Preceding process should produce only exact quantity of
parts withdrawn by subsequent process
•  Smoothing (minimize fluctuations) of production
•  Fine tuning of production using kanban
•  Stop process if production requirements decrease
•  Use overtime & improvements in processes if production
requirements increase

Advanced Features

Ø  On-line usage data in monthly and quarterly

“buckets” with averages
Ø  Advanced Problem Detection reporting
Ø  Shortage Detection Reporting
Ø  Costing to Component Level
Ø  Shipped but not Received
Ø  Bar-coding including customized document
layouts
Ø  On-line item planning

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Kanban Point of Use Inventory System

Tooling to Kanban card
Machines to
Collction tray

Cards are
Replenishment collected &
product
scanned to
Receipt ticket re-order
New order card

Kanban
In Toyota two types of kanban are distinguished for
controlling the flow of items:

A withdrawal kanban - which details the items

which should be withdrawn from the
preceding step in the process

A production ordering kanban - which details

the items to be produced

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Kanban

Withdrawl Kanban
pass authorizes movement of parts from one work center to
another; stays with parts until parts consumed, then returns
for part replenishment.

Part Number Raw materials and other

part types used in
Container capacity manufacturing at the
(number of parts) work center

Preceding work center number

Stock location number

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Production Kanban
release order to preceding process to build specified
number of parts.

Subsequent work
Part number center number

Container capacity Stock location

(number of parts) number

Proceding work
Number of kanbans center number
released
Stock location number

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