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Mr.

Anupam Thakur Computer Integrated Manufacturing


ETME 403
AGGREGATE PRODUCTION PLANNING AND THE MASTER PRODUCTION
SCHEDULE
Aggregate planning is a high-level corporate planning activity. The aggregate production plan
indicates production output levels for the major product lines of the company.

Fig. Activities in a PPC system

The aggregate plan must be coordinated with the plans of the sales and marketing departments.
Because the aggregate production plan includes products that are currently in production, it must
also consider the present and future inventory levels of those products and their component parts.
Because new products currently being developed will also be included in the aggregate plan. the
marketing plans and promotions for current products and new products must be reconciled
against the total capacity resources available to the company.

MASTER PRODUCTION SCHEDULE (MPS)

The production quantities of the major product lines listed in the aggregate plan must he
converted into a very specific schedule of individual products, known as the master production
schedule (MPS). It is a list or the products to be manufactured, when they should be completed
and delivered, and in what quantities. The master schedule must be based on an accurate estimate
of demand and a realistic assessment of the company's production capacity. The MPS planning

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Mr. Anupam Thakur Computer Integrated Manufacturing
ETME 403
period, or horizon, can be of any length, but should be at least as long as a company‟s longest
cumulative lead time (the time it takes to complete a product from raw material to finished
goods.). Many systems include a rough cut capacity planning (RCCP) capability, which
compares certain MPS items of the master schedule to specified key resources of the plant (or
multiple plants) to determine if the master schedule is workable, given current the plant capacity.
If the master schedule is not achievable, the system modifies the MPS or the production plan
(For example, reduce the amount of products to be produced or commit to increasing the
capacity of the plant) until the master schedule is achievable.

Fig. Modules of Master Scheduling

Master production schedule provides great flexibility in reflecting the overall production plans of
management, allowing planned production to be based on predicted demand.
The master production schedule software is useful in many ways.
• Enables the user to scan through the file starting at any point to easily locate data.
• Accesses items by number or partial description.
• Eases forecasting.
• Allows interactive entry of requirement and replenishment orders on the master schedule
including creation of firm planned orders.
• Merges existing shop orders, purchase orders, and MRP planned orders into the master
schedule for easy comparison with customer orders and sales forecast orders.
• Maintains orders by exact date, allowing reports to be detailed or summarizes into a
variety of user-defined periods.
• Supports “what if” analysis by projecting into the future with adjustments to quantities.
• Displays or prints how much of each inventory item is available to promise for delivery
in current and future periods.
• Identifies under or over-scheduled key work centres though rough cut capacity planning.
• Pinpoints desired information responding to user-specified parameters.

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Mr. Anupam Thakur Computer Integrated Manufacturing
ETME 403
Material Requirements Planning (MRP)
Material Requirements Planning (MRP) is a computer-based production planning and inventory
control system. MRP is concerned with both production scheduling and inventory control. It is a
material control system that attempts to keep adequate inventory levels to assure that required
materials are available when needed. MRP is applicable in situations of multiple items with
complex bills of materials. MRP is not useful for job shops or for continuous processes that are
tightly linked.

The major objectives of an MRP system are to simultaneously:


1. Ensure the availability of materials, components, and products for planned production and for
customer delivery,
2. Maintain the lowest possible level of inventory,
3. Plan manufacturing activities, delivery schedules, and purchasing activities.

MRP is especially suited to manufacturing settings where the demand of many of the
components and subassemblies depend on the demands of items that face external demands.
Demand for end items is independent. In contrast, demand for components used to manufacture
end items depend on the demands for the end items. The distinctions between independent and
dependent demands are important in classifying inventory items and in developing systems to
manage items within each demand classification. MRP systems were developed to cope better
with dependent demand items.
The three major inputs of an MRP system are the master production schedule, the product
structure records, and the inventory status records. Without these basic inputs the MRP system
cannot function. The demand for end items is scheduled over a number of time periods and
recorded on a
Master production schedule (MPS). The master production schedule expresses how much of
each item is wanted and when it is wanted. The MPS is developed from forecasts and firm
customer orders for end items, safety stock requirements, and internal orders. MRP takes the
master schedule for end items and translates it into individual time-phased component
requirements. The product structure records, also known as bill of material records (BOM),
contain information on every item or assembly required to produce end items. Information on
each item, such as part number, description, quantity per assembly, next higher assembly, lead
times, and quantity per end item, must be available. The inventory status records contain the
status of all items in inventory, including on hand inventory and scheduled receipts. These
records must be kept up to date, with each receipt, disbursement, or withdrawal documented to
maintain record integrity.
MRP will determine from the master production schedule and the product structure records the
gross component requirements; the gross component requirements will be reduced by the
available inventory as indicated in the inventory status records.

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Mr. Anupam Thakur Computer Integrated Manufacturing
ETME 403
MRP Computations

We will illustrate MRP computations through examples.

Example
Suppose you need to produce 100 units of product A eight week from now, where product A
requires one unit of product B and two units of product C, while product C requires one unit of
product D and two units of product E. How many units of each type do you need? In this
example it is easy to compute the requirements of each item to produce 100 units of product A:

Req (B) = 100,


Req (C) = 200,
Req (D) = 200,
Req (E) = 400.

Suppose further that the lead-times for the products are as follows:
 Product A, four weeks, product B three weeks, product C two weeks, products D and E
one week each. Since the production lead-time for product A is four weeks, we must have
products B and C available at the end of week four. Since product B has a lead time of
three weeks, we need to release the production of product B by the end of the first week.
Similarly, product C need to be released for production at the end of week two, while
products D and E must be released for production at the end of week one A material
requirements plan has been developed for product A based on the product structure of A
and the lead-time needed to obtain each component. Planned order releases of a parent
item are used to determine gross requirements for its component items. Planned order
release dates are simply obtained by offsetting the lead times.

 The computations and steps required in the MRP process are not complicated. They
involve only simple arithmetic. However, the bill-of-materials explosion must be done
with care. What may get complicated is the product structure, particularly when a given
component is used in different stages of the production of a finished item.

The Level of an Item

To form a useful bill of material matrix it is convenient to order the items by levels. The level of
an item is the maximum number of stages of assembly required to get the item into an end
product.

Example

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Mr. Anupam Thakur Computer Integrated Manufacturing
ETME 403
Consider a system with two end items, item 1 and item 2.

Item 1 requires two units of item A and one unit of item C.


Item 2 requires one unit of item B, one unit of item D and three units of item E.
Item A requires one unit of item B and two units of item F.
Item B requires two units of item C and one unit of item E.
Item C requires one unit of item F and three units of item G.
Item D requires two units of item B and one unit of item C.

The levels of the items are:

Level 0: Items 1 and 2.


Level 1: Items A and D.
Level 2: Item B.
Level 3: Items C and E.
Level 4: Items F and G.

An Outline of the MRP Process

Starting with end items the MRP process goes through the following steps
1. Establish gross requirements.
2. Determine net requirements by subtracting scheduled receipts and on hand inventory
from the gross requirements
3. Time phase the net requirements.
4. Determined the planned order releases

MRP Table

The planned order releases aggregated over all the end items will result in the gross requirements
for level one item, the gross requirements for this items are then netted and time phased to

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Mr. Anupam Thakur Computer Integrated Manufacturing
ETME 403
determined their own order releases. The process is continued until all the items have been
exploded. Table shows a typical MRP table.

Example 3

MRP computations are shown in Table where the lead-time is two weeks. Here the planned
releases were obtained by solving a Wagner-Whitin problem with time-varying demand. More
often, however, MRP will plan releases in a lot-by-lot fashion.

Standard MRP Table

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Mr. Anupam Thakur Computer Integrated Manufacturing
ETME 403
Shortcomings of MRP

Capacity

MRP expects the lead time to be constant regardless of how much work has been released into
the production system, so it is implicitly assuming infinite capacity. This can create problems
when production levels are at or near capacity. One way to address this problem is to make sure
that the MPS is capacity feasible. Rough-cut capacity planning (RCCP) attempts to do this by
checking the capacity of a few critical resources. RCCP makes use of the bill of resources (BOR)
for each item on the MPS. The BOR specifies the number of hours required at each critical
resource to build a particular end item and its components, and then aggregates the number of
hours required at each critical resource over the end items in the MPS. RCCP then checks
whether the available resources are enough to cover the MPS on each time bucket. Notice that
RCCP does not perform time offsets, so the calculation of the number of hours required has to be
done with time buckets that are large enough so that parts and their components can all be
completed within a single time bucket. This usually makes RCCP an optimistic estimation of
what can be done. Advanced MRP systems provide more detailed capacity analysis proposing
alternative production schedules when the current plan is not feasible.

Long Lead Times

There are many pressures to increase planned lead times in an MRP system. MRP uses constant
lead times when, in fact, actual lead times vary considerably. To compensate, planners typically
choose pessimistic estimates. Long lead times lead to large work-in-process (WIP) inventories.

Nervousness

MRP is typically applied in a rolling horizon basis. As customer orders firm up, and forecasts
become better, a new MPS is fed to MRP which produces updated planned order releases that
may be very different from the original. Even small changes in the MPS can result in large
changes in planned order releases.

CAPACITY REQUIREMENTS PLANNING (CRP)

MRP does not consider available capacity and often formulates production plans not possible
within a given specified plant capacity. Capacity Requirements Planning (CRP) takes planned
orders from MRP and open (release) shop orders, and translates work orders into hours of work
(pre-set standards) on a work centre basis. CRP then, using the cumulative lead times, allocates
the work required for each order to the appropriate work centres for the time period that the order
will be in that work centre. CRP considers many factors in allocating the load-queue time, move

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Mr. Anupam Thakur Computer Integrated Manufacturing
ETME 403
time, machine and many others. In scheduling, CRP can start from current date and schedule the
job to completion (forward scheduling) or using the due date for the order, schedule backward to
determine the start date of the job (backward scheduling).

There are two types of loading in CRP: finite and infinite. With finite loading, CRP considers the
total capacity of a work centre and does not load beyond that point. Infinite loading loads all
work for the period into the appropriate work centres then produces over and under load reports
showing where more or less capacity are needed to efficiently handle the load. Although they
may generate suggestions, most MRP systems require human intervention to help balance the
capacity and load. A planner can decide whether delaying the order release, subcontracting the
job, splitting the job into several smaller jobs, routing through an alternative work centre, or
authorizing overtime will best eliminate the over-under load on the work centre and still get the
job done on time. Another aspect of CRP is Input/Output control (I/O). I/O control monitors the
amount of work going into and coming out of a work centre and compares it to a standard or
expected amount. A back log will develop behind any work centre that continually puts out less
work than it takes in. CRP and I/O control are good tools for monitoring the shop floor for
bottlenecks and unused capacity.

Fig. Modules of Capacity Requirement Plan

The CRP software

• Allows an unlimited planning horizon with user-defined reporting period lengths


• Represents the load profile for each work centre.
• Provides an effective analysis tool to help maximize facility utilization and minimize
delays.
• Gives advance knowledge of potential production bottlenecks so that the user can
increase capacity, decrease the load or change the schedule to create a realistic production
plan.
• Monitors both current wok-in-process and planned production concurrently.

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Mr. Anupam Thakur Computer Integrated Manufacturing
ETME 403
• Displays the schedule load for any work centre.
• Allows the user to test various “what-if” changes without affecting the “live” date.
• Uses both forward and backward scheduling techniques around a “bottleneck” operation.
• Reschedules any number of dependent shop orders when desired.
• Prints the “work centre load report” with planned load subtotals for each reporting period.
• Uses work centre efficiency factors in calculating capacity to match runtimes to reality.
• Pinpoints desired information by accepting user-specified parameters on most reports.
• Allows reports to be displayed on the screen for immediate inquiry.

MRP II

Manufacturing Resource Planning (MRP II) embeds additional procedures to address the
shortcomings of MRP. In addition, MRP II attempts to be an integrated manufacturing
system by bringing together other functional areas such as marketing and finance. The
additional functions of MRP II include forecasting, demand management, rough-cut capacity
planning (RCCP), and capacity requirement planning (CRP), scheduling dispatching rules,
and input/output control. MRP II works within a hierarchy that divides planning into long-
range planning, medium range planning, and short-term control.

To assist planners in tracking some of the problems associated with inventory control, some kind
of „feedback loop‟ is needed in the M.R.P. process, not only to automatically re-schedule certain
items (when possible), and avoid excessive manual effort in controlling the process, but to detect
and report performance that is „out of spec‟ (such as a vendor performance report to track on-
time delivery performance). This „feedback loop‟ is the defining factor for an „M.R.P. II‟ system.
Though many systems CLAIM to be an „M.R.P. II‟ system, few actually fit the mould exactly.
Still, with automatic rescheduling capabilities for work orders and/or repetitive build schedules,
and „reschedule action‟ reports for purchase orders and outside contracting, the amount of actual
analysis is reduced significantly. Other information, such as vender performance reports and
process utilization reports, also help to measure the „performance to plan‟ capability of the
manufacturing plant.
Even when the production plan is running at optimum performance, companies still often have
serious problems with the manufacturing process. „Hidden Cost‟ issues associated with
manufacturing increase the total cost of manufacturing, but are extremely hard to track. Some of
these „Hidden Costs‟ can be caused by excessive P.O. rescheduling or excessive „crash buy‟
programs, excess and/or obsolete inventory, or planning problems that cause incorrectly stocked
finished goods (too much of one, not enough of the other) that result in shortages. Another
„hidden cost‟ issue might be frequent line stops related to a „limiting process‟ (such as a wave
solder machine or component inserter), as well as material shortages and excessive „kitting‟ of
common components. In addition, potential revenue losses from excessively long customer order
lead times, or poor on-time customer delivery performance, are real problems, but very difficult
to track and measure. As such, none of these problems are tracked nor reported by any „standard

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Mr. Anupam Thakur Computer Integrated Manufacturing
ETME 403
M.R.P.‟ or „M.R.P. II‟ system. To help solve these problems, and improve the company‟s
competitiveness and profitability, beyond existing capabilities, the M.R.P. system must go
beyond the standard definition of „M.R.P. II‟.
Manufacturing Resource Planning (MRP II) is defined by APICS (American Production and
Inventory Control Society, Estd. 1957) as a method for the effective planning of all resources of a
manufacturing company. Ideally, it addresses operational planning in units, financial planning in
dollars, and has a simulation capability to answer "what-if" questions and extension of closed-
loop MRP.
This is not exclusively a software function, but a marriage of people skills, dedication to data
base accuracy, and computer resources. It is a total company management concept for using
human resources more productively.

MRP II is not
Many items on this list can be part of an MRP II, but are not solely what it is.
 a computer system
 manufacturing control system
 inventory reduction plan Sales & Purchase System
 Material Management
Purpose
MRP II integrates many areas of the manufacturing enterprise into a single entity for planning
and control purposes, from board level to operative and from five-year plan to individual shop-
floor operation. It builds on closed-loop Material Requirements Planning (MRP) by adopting the
feedback principle but extending it to additional areas of the enterprise, primarily manufacturing-
related.

Key functions and Features


MRP II is not a proprietary software system and can thus take many forms. It is almost
impossible to visualize an MRP II system that does not use a computer, but an MRP II system
can be based on either purchased / licensed or in-house software.
Almost every MRP II system is modular in construction. Characteristic basic modules in an MRP
II system are:
• Master Production Scheduling (MPS)
• Item Master Data (Technical Data)
• Bill of Materials (BOM) (Technical Data)
• Production Resources Data (Manufacturing Technical Data)
• Inventories & Orders (Inventory Control)
• Purchasing Management
• Material Requirements Planning (MRP)
• Shop Floor Control (SFC)

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Mr. Anupam Thakur Computer Integrated Manufacturing
ETME 403
• Capacity planning or Capacity Requirements Planning (CRP)
• Standard Costing (Cost Control)
• Cost Reporting / Management (Cost Control)
• Distribution Resource Planning (DRP)

Together with ancillary systems such as:


 Business Planning
 Lot Traceability
 Contract Management
 Tool Management
 Engineering Change Control
 Configuration Management
 Shop Floor Data Collection
 Sales Analysis and Forecasting
 Finite Capacity Scheduling (FCS)
 and related systems such as:
 General Ledger
 Accounts Payable (Purchase Ledger)
 Accounts Receivable (Sales Ledger)
 Sales Order Management
 Distribution Requirements Planning (DRP)
 [Automated] Warehouse Management
 Project Management
 Technical Records
 Estimating
 Computer-aided design/Computer-aided manufacturing (CAD/CAM)
 CAPP

The MRP II system integrates these modules together so that they use common data and freely
exchange information, in a model of how a manufacturing enterprise should and can operate. The
MRP II approach is therefore very different from the “point solution” approach, where individual
systems are deployed to help a company plan, control or manage a specific activity. MRP II is by
definition fully integrated or at least fully interfaced.
MRP II systems can provide:
 Better control of inventories
 Improved scheduling
 Productive relationships with suppliers

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Mr. Anupam Thakur Computer Integrated Manufacturing
ETME 403
For Design / Engineering:
 Improved design control
 Better quality and quality control

For Financial and Costing:


 Reduced working capital for inventory
 Improved cash flow through quicker deliveries
 Accurate inventory records
 Timely and valid cost and profitability information

Industry Specifics
MRP II systems have been implemented in most manufacturing industries. Some industries need
specialized functions e.g. lot traceability in regulated manufacturing such as pharmaceuticals or
food. Other industries can afford to disregard facilities required by others e.g. the tableware
industry has few starting materials – mainly clay – and does not need complex materials
planning. Capacity planning is the key to success in this as in many industries, and it is in those
that MRP II is less appropriate.
This is not exclusively a software function, but a marriage of people skills, dedication to data
base accuracy, and computer resources. It is a total company management concept for using
human resources more productively.

MRP and MRPII: History and Evolution


Material Requirements Planning (MRP) and Manufacturing Resource Planning (MRPII) are
predecessors of Enterprise Resource Planning (ERP), a business information integration system.
The development of these manufacturing coordination and integration methods and tools made
today‟s ERP systems possible. Both MRP and MRPII are still widely used, independently and as
modules of more comprehensive ERP systems, but the original vision of integrated information
systems as we know then today began with the development of MRP and MRPII in
manufacturing.
The vision for MRP and MRPII was to centralize and integrate business information in a way
that would facilitate decision making for production line managers and increase the efficiency of
the production line overall. In the 1980s, manufacturers developed systems for calculating the
resource requirements of a production run based on sales forecasts. In order to calculate the raw
materials needed to produce products and to schedule the purchase of those materials along with
the machine and labor time needed, production managers recognized that they would need to use
computer and software technology to manage the information. Originally, manufacturing
operations built custom software programs that ran on mainframes.

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Mr. Anupam Thakur Computer Integrated Manufacturing
ETME 403
Material Requirements Planning (MRP) was an early iteration of the integrated information
systems vision. MRP information systems helped managers determine the quantity and timing of
raw materials purchases. Information systems that would assist managers with other parts of the
manufacturing process, MRPII, followed. While MRP was primarily concerned with materials,
MRPII was concerned with the integration of all aspects of the manufacturing process, including
materials, finance and human relations.
Like today‟s ERP systems, MRPII was designed to integrate a lot of information by way of a
centralized database. However, the hardware, software, and relational database technology of the
1980s was not advanced enough to provide the speed and capacity to run these systems in real-
time, and the cost of these systems was prohibitive for most businesses. Nonetheless, the vision
had been established, and shifts in the underlying business processes along with rapid advances
in technology led to the more affordable enterprise and application integration systems that big
businesses and many medium and smaller businesses use today (Monk and Wagner).

MRP-I and MRPII: General Concepts


Material Requirements Planning (MRP) and Manufacturing Resource Planning (MRPII) are both
incremental information integration business process strategies that are implemented using
hardware and modular software applications linked to a central database that stores and delivers
business data and information.
MRP is concerned primarily with manufacturing materials while MRPII is concerned with the
coordination of the entire manufacturing production, including materials, finance, and human
relations. The goal of MRPII is to provide consistent data to all players in the manufacturing
process as the product moves through the production line.
Paper-based information systems and non-integrated computer systems that provide paper or disk
outputs result in many information errors, including missing data, redundant data, numerical
errors that result from being incorrectly keyed into the system, incorrect calculations based on
numerical errors, and bad decisions based on incorrect or old data. In addition, some data is
unreliable in non-integrated systems because the same data is categorized differently in the
individual databases used by different functional areas.
MRPII systems begin with MRP, Material Requirements Planning. MRP allows for the input of
sales forecasts from sales and marketing. These forecasts determine the raw materials demand.
MRP and MRPII systems draw on a Master Production Schedule, the breakdown of specific
plans for each product on a line. While MRP allows for the coordination of raw materials
purchasing, MRPII facilitates the development of a detailed production schedule that accounts for
machine and labor capacity, scheduling the production runs according to the arrival of materials.
An MRPII output is a final labor and machine schedule. Data about the cost of production,
including machine time, labor time and materials used, as well as final production numbers, is
provided from the MRPII system to accounting and finance.

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Mr. Anupam Thakur Computer Integrated Manufacturing
ETME 403
Just In Time (JIT)

Just-in-time manufacturing was a concept introduced to the United States by the Ford motor
company. It works on a demand-pull basis, contrary to hitherto used techniques, which worked
on a production-push basis. To elaborate further, under just-in-time manufacturing (colloquially
referred to as JIT production systems), actual orders dictate what should be manufactured, so that
the exact quantity is produced at the exact time that is required. Just-in-time manufacturing goes
hand in hand with concepts such as Kanban, continuous improvement and total quality
management (TQM). Just-in-time production requires intricate planning in terms of procurement
policies and the manufacturing process if its implementation is to be a success.
Highly advanced technological support systems provide the necessary back-up that Just-in-time
manufacturing demands with production scheduling software and electronic data interchange
being the most sought after.

Advantages

Following are the advantages of Adopting Just-In-Time Manufacturing Systems

 Just-in-time manufacturing keeps stock holding costs to a bare minimum. The release of
storage space results in better utilization of space and thereby bears a favorable impact on
the rent paid and on any insurance premiums that would otherwise need to be made.
 Just-in-time manufacturing eliminates waste, as out-of-date or expired products; do not
enter into this equation at all.
 As under this technique, only essential stocks are obtained, less working capital is
required to finance procurement. Here, a minimum re-order level is set, and only once
that mark is reached, fresh stocks are ordered making this a boon to inventory
management too.
 Due to the aforementioned low level of stocks held, the organizations return on
investment (referred to as ROI, in management parlance) would generally be high.
 As just-in-time production works on a demand-pull basis, all goods made would be sold,
and thus it incorporates changes in demand with surprising ease. This makes it especially
appealing today, where the market demand is volatile and somewhat unpredictable.
 Just-in-time manufacturing encourages the 'right first time' concept, so that inspection
costs and cost of rework is minimized.
 High quality products and greater efficiency can be derived from following a just-in-time
production system.
 Close relationships are fostered along the production chain under a just-in-time
manufacturing system.
 Constant communication with the customer results in high customer satisfaction.
 Overproduction is eliminated when just-in-time manufacturing is adopted.

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Mr. Anupam Thakur Computer Integrated Manufacturing
ETME 403
Disadvantages
Following are the disadvantages of Adopting Just-In-Time Manufacturing Systems

 Just-in-time manufacturing provides zero tolerance for mistakes, as it makes re-working


very difficult in practice, as inventory is kept to a bare minimum.
 There is a high reliance on suppliers, whose performance is generally outside the purview
of the manufacturer.
 Due to there being no buffers for delays, production downtime and line idling can occur
which would bear a detrimental effect on finances and on the equilibrium of the
production process.
 The organization would not be able to meet an unexpected increase in orders due to the
fact that there are no excess finish goods.
 Transaction costs would be relatively high as frequent transactions would be made.
 Just-in-time manufacturing may have certain detrimental effects on the environment due
to the frequent deliveries that would result in increased use of transportation, which in
turn would consume more fossil fuels.

Precautions
Following are the things to remember When Implementing a Just-In-Time Manufacturing
System

 Management buy-in and support at all levels of the organization are required; if a just-in-
time manufacturing system is to be successfully adopted.
 Adequate resources should be allocated, so as to obtain technologically advanced
software that is generally required if a just-in-time system is to be a success.
 Building a close, trusting relationship with reputed and time-tested suppliers will
minimize unexpected delays in the receipt of inventory.
 Just-in-time manufacturing cannot be adopted overnight. It requires commitment in terms
of time and adjustments to corporate culture would be required, as it is starkly different to
traditional production processes.
 The design flow process needs to be redesigned and layouts need to be re-formatted, so as
to incorporate just-in-time manufacturing.
 Lot sizes need to be minimized.
 Workstation capacity should be balanced whenever possible.
 Preventive maintenance should be carried out, so as to minimize machine breakdowns.
 Set-up times should be reduced wherever possible.
 Quality enhancement programs should be adopted, so that total quality control practices
can be adopted.
 Reduction in lead times and frequent deliveries should be incorporated.
 Motion waste should be minimized, so the incorporation of conveyor belts might prove to
be a good idea when implementing a just-in-time manufacturing system.

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Mr. Anupam Thakur Computer Integrated Manufacturing
ETME 403
Conclusion
Just-in-time manufacturing is a philosophy that has been successfully implemented in many
manufacturing organizations.
It is an optimal system that reduces inventory whilst being increasingly responsive to customer
needs, this is not to say that it is not without its pitfalls.
However, these disadvantages can be overcome with a little forethought and a lot of commitment
at all levels of the organization.

ENTERPRISE RESOURCE PLANNING (ERP)

Enterprises to-day employ a mixture of several approaches to manufacturing. They include:


 Make to stock
 Design to order
 Make to order
 Assemble to order
It must be possible to operate the company in all these modes. The emerging trend of
amalgamations, acquisitions and strategic alliances among competing corporations required more
capable software to manage such multi-facility enterprises. Another challenging task is the co-
ordination of manufacturing in facilities which are geographically dispersed. For example, a
multinational company will have divisions and subsidiaries in U.S.A, Canada, UK, India,
Germany, Korea and Japan. An Indian multinational company may have plants in Poland,
Belgium and UK. Each country will have its own currency and tax laws. This requires multi
currency functionality for the planning software. The need for managing the entire enterprise
within a more global, tightly integrated closed-loop solution has led to the evolution of ERP
software.
The core activity in ERP is the creation of an integrated data model, covering employees,
customers, suppliers etc. A distinguishing feature of the ERP software is that it incorporates best
practices. This means that the manufacturing solution developed using ERP is an optimum one.
The implementation of an ERP system includes the following stages:
i. Definition of the scope of the project
ii. Identification of the objectives and deliverables
iii. Project organization
iv. Identifying an executive responsible for successful implementation of ERP
1. Establish a senior management steering committee
2. Establish a project team
3. Define the role of consultants
4. Work plan development
v. Assessment of the business of the company - where it is to day and where it
vi. should go
vii. Education of key managers

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Mr. Anupam Thakur Computer Integrated Manufacturing
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viii. Cost/benefit analysis

MODULES IN TYPICAL ERP SOFTWARE


The important modules in typical ERP software are:
i. Finance Module
The finance module extracts financial transactions from the sales and manufacturing areas and \
posts them to the general ledger. The main elements of finance module are:
 General ledger
 Accounts payable
 Accounts receivable
 Cash management
 Fixed Assets
 Financial statement
 Budget
 Cost allocation
ii. Distribution Module
This module manages finished goods, raw materials and services. Sales orders are managed by
this module. Inventory control, location control, Distribution Requirements planning and replenishment
control are part of distribution module. The business objects of this module are:
 Item control
 Cost accounting
 Purchase control
 Sales control
 Sales and marketing information
 Electronic data interchange
 Replenishment order control
 Inventory control
 Lot control
 Location control
 Distribution requirements planning
iii. Manufacturing Module
This module is designed to control all the operations related to manufacture. The business
objectives of this module are:
 Engineering Data Management
 Item control
 Bill of materials
 Routing
 Master production schedule
 Materials requirement planning
 Capacity requirement planning
 Repetitive manufacturing
 Shop floor control

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 Hours accounting
 Project budget
 Product configuration and classification
 Project control
 Quality management
iv. Service Module
 Service module deals with repair and warranty related activities. The functions
 of this module are:
 Installation control
 Contract control
 Service order control
 Service analysis control
v. Transportation module
The functions of this module are:
 Employee control
 Address control
 Fleet management
 Fuel control
 Hours and expense control
 Transport control
 Packing control
 Warehouse control
vi. Process Module
The process module helps companies to keep track of the manufacture of products.
vii. Project Module
The project module consists of
 Estimating
 Definition
 Budget
 Planning
 Requirement
 Progress
 Monitoring
 Invoicing
viii. Tools Module
Tools Module covers the following:
 Software installation
 Application configuration
 User management
 Device management
 Job management
 Database management

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 Audit management
 Text management
 Menu management
 SQL queries
 Application development and customization
 Documentation

Fig. Supply Chain


ix. Utilities Module
The utilities module is used to import and export data among different ERP systems. Other
Modules of ERP packages are:
 Materials management
 Supply chain management
 Quality management
 Human resource management
 Plant maintenance
 Treasury

CNC Controller
The CNC controller is the brain of a CNC system. A controller completes the all important link
between a computer system and the mechanical components of a CNC machine. The controller's
primary task is to receive conditioned signals from a computer or indexer and interpret those
signals into mechanical motion through motor output. There are several components that make
up a controller and each component works in unison to produce the desired motor movement.

The word “ controller” is a generic term that may refer to one of several devices, but usually
refers to the complete machine control system. This system may include the protection circuitry,
stepper or servo motor drivers, power source, limit switch interfaces, power controls, and other
peripherals. Owners, operators, designers, and builders of CNC devices should understand the
tasks performed by these components and how they affect machine performance.

The following sections will discuss the primary task of each component in the controller and
how they work together to create a complete CNC system.

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Recently a new generation of CNC controllers has been marketed by several manufacturers.
Some of their important features are:
I. Automatic determination of optimum tool path: By using data that is interactively input
to define the workpiece contours artificial intelligence is employed to determine the
optimum approach point and tool path to eliminate unnecessary tool movement. As a
result, the overall machining cycle is minimized.
II. Feed spindle orientation: By the use of a digitally controlled AC spindle motor, spindle
orientation is fast and precise.
III. Automatic feedrate override: Even though only one feedrate is programmed for a
machining cycle such as a pocket milling, the optimum feedrate for both the in-feed
direction and corner cutting is automatically determined. Also when milling pockets, the
feedrate is automatically changed when machining with full cutter width and when
machining with partial cutter width to maintain the optimum cutting conditions for the
minimum machining time.
IV. Simultaneous S, M and T functions: Simultaneous operation of different units, such as
the ATC and Machine table indexing, A T C and pallet changer can performed to greatly
reduce machine‟s non-cutting time.
V. High speed tapping: The digitally controlled spindle motor allows spindle rotation and Z
axis feed to be synchronized. This advanced design makes high speed, high precision
tapping possible without the use of the floating tap holder. This is also referred as rigid
tapping.
VI. High speed cutting of complex contours: For complex contours that require interpolation
by extremely small increments, the faster processing of speed of the 32 or 64 bit
processor results in a much higher vectorial feed rate than that of conventional CNC
systems.
VII. D N C interface: The 32 or 64 bit CNC mounted on a machine can be linked with a host
computer and transmit and receive data. By DNC interface, information can be shared.
VIII. MAP compatibility: The 32 bit CNC controller is designed for MAP (Manufacturing
Automation Protocol) compatibility - the international communication standards to be
used by equipment in an automated factory.
IX. Background communication: The high speed 32 bit microprocessors can handle
communications of variety of data - programs, parameters, tool data and programs with a
host computer simultaneously while in automatic operation.
X. Absolute position detection: If equipped with absolute position detection function, a
machine does not have to return to the home position prior to beginning operation. This is
especially advantageous for a machining center controlled by host computer.
XI. Tool life management, Tool breakage detection and recovery: These functions resident
in the individual machine‟s memory can be communicated with the host computer,
thereby facilitating centralized tool management.

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XII. Automatic centering: By the use of a touch sensor mounted in the spindle, measurement
of datum holes and surfaces is performed. Based on the measurement results, the work
co-ordinate system is automatically shifted and machining begins.
XIII. Adaptive feed rate control: By continually monitoring the load on the spindle motor and
Z- axis servo motor, optimum cutting conditions are maintained. When an overload
condition is detected, the programmed feedrate is automatically overridden. As the
cutting load becomes smaller, the feed rate will automatically return to the programmed
value.
XIV. Process management and program layout displays: The interconnections between
processes and subprograms and processes with commonly used tools are indicated on
these displays for convenient program restarts.
XV. Automatic tool length measurement: Tool length can be automatically measured and
registered in memory to greatly reduce tool setting time. One setting of the measurement
cycle allows up to 13 tools to automatically processed. (This process is semi-automatic
for face mills and boring bars in that the tool must first be manually positioned over the
measurement unit).
XVI. Workpiece co-ordinates: When using a tool (such as an edge finder) to establish a
workpiece datum point, all that is required is to enter the tool radius. The necessary
calculations are performed automatically to set the work piece zero position. When the
optional touch sensor is used the angular offset co-ordinates can also be set. This allows
high machining accuracy to be obtained even with simple fixtures.
XVII. Tool path storage: The tool path storage function can be used to store in memory the
point where a tool breaks during the cutting plus the path used to retract the cutter for
servicing. This allows fast and smooth program restarting.
XVIII. Automatic cutting conditions editing: Programmed spindle speeds and feed rate are
easily altered by override keys according to actual machining conditions. By pushing an
appropriate key, the programmed cutting conditions are automatically edited by the
override amount on an individual tool basis.
XIX. Modal information display: The modal information display indicates which G, M, S, f
codes are effective. This is extremely convenient for error-free restart of EIA / ISO
programs.
XX. Deflection compensation: Automatic compensation can be performed for the
displacement at one axis in relation to another axis used as the datum.
XXI. Large reduction of component parts: With a 32 or 64 bit microprocessor as the core,
large capacity memory chips, customs LSI‟s and other state of the art technology used to
the maximum, the number of parts is considerably smaller than that of conventional CNC
system resulting in a highly reliable and compact design.
XXII. Ladder circuit display: The open and close status of individual circuits is displayed on
the ladder chart on CRT display to help pinpoint the cause of problems.

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XXIII. Optimization of cutting conditions: Several CNC systems access cutting tool databases
as well as cutting parameter databases. The interactive programming facilities enable the
operator of the machine tool to input the features of the drawing in the CNC system. The
system responds with appropriate tool selection and cutting parameter selection.
Techniques are also incorporated to optimize the parameters.

Understanding Interpolation/Motion Control

Say for example, you wish to move only one linear axis in a command. You want to
move the axis to a position one inch to the right of program zero. In this case, the command X1
would be given (assuming the absolute mode is instated). The machine would move along a
perfectly straight line during this movement (since only one axis is moving).
Now let's say you wish to include a Y axis movement to a position one inch above program zero
in Y (with the X movement). We'll say you are trying to machine a tapered or chamfered surface
of your workpiece in this command. For the control to move along a perfectly straight line to get
to the programmed end point, it must perfectly synchronize the X and Y axis movements. Also,
if machining is to occur during the motion, a motion rate (feed rate) must also be specified. This
requires linear interpolation.
During linear interpolation commands, the control will precisely and automatically
calculate a series of very tiny single axis departures, keeping the tool as close to the programmed
linear path as possible. With today's CNC machine tools, it will appear that the machine is
forming a perfectly straight line motion. However, Figure 1 shows what the CNC control is
actually doing during linear interpolation.
In similar fashion, many applications for CNC machine tools require that the machine be
able to form circular motions. Applications for circular motions include forming radii on turned
workpieces between faces and turns, and milling radii on contours on machining centers. This
kind of motion requires circular interpolation. As with linear interpolation, the control will do its
best to generate as close to a circular path as possible.
Depending on the machine's application, you may find that you have other interpolation
types available. Again, CNC control manufacturers try to make it as easy as possible to program
their controls. For example, many machining center users perform thread milling operations on
their machines. During thread milling, the machine must move in a circular manner along two
axes (usually X and Y) at the same time a third axis (usually Z) moves in a linear manner. This
allows the helix of the thread to be properly machined. This motion resembles a spiraling motion
(though the radius of the spiral remains constant). Knowing that their customers need this type of
motion for thread milling, CNC machining center control manufacturers offer the feature called
helical interpolation.

Yet another type of interpolation may be required on turning centers that have live
tooling. For turning centers that can rotate tools (like end mills) in the turret and have a C axis to
rotate the workpiece held in the chuck, polar coordinate interpolation can be used to mill

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contours around the periphery of the workpiece. Polar coordinate interpolation allows the
programmer to "flatten out" the rotary axis, treating it as a linear axis for the purpose of making
motion commands.

The Three Most Basic Motion Types:

While your particular CNC machine may have more motion types (depending on your
application), let's concentrate on the three most common types available on almost all forms of
CNC equipment. After briefly introducing each type of motion, we'll show an example program
that stresses the use of all three.

These motion types share two things in common. First, they are all modal. This means
they remain in effect until changed. If, for example, several motions of the same kind are to be
given consecutively, the corresponding G code need only be specified in the first command.

Second, the end point of the motion is specified in each motion command. The current
position of the machine will be taken as the starting point.

1. Rapid Motion (Also Called Positioning)

This motion type is used to command motion at the machine's fastest possible rate. It is
used to minimize non-productive time during the machining cycle. Common uses for rapid
motion include positioning the tool to and from cutting positions, moving to clear clamps and
other obstructions, and in general, any non-cutting motion during the program.
You must check in the machine tool builder's manual to determine a machine's rapid rate.
Usually this rate is extremely fast (some machines boast rapid rates of well over 1000 rpm),
meaning the operator must be cautious when verifying rapid motion commands. Fortunately,
there is a way for the operator to override the rapid rate during program verification.
The command almost all CNC machines use to initiate rapid motion is G00. Within the
G00 command, the end point for the motion is given.

Control manufacturers vary with regard to what actually happens if more than one axis is
included in the rapid motion command. With most controls, the machine will move as fast as
possible in all axes commanded. In this case, one axis will probably reach its destination point
before the others. With this kind of rapid command, straight line movement will not occur during
rapid and the programmer must be very careful if there are obstructions to avoid. With other
controls, straight line motion will occur, even during rapid motion commands.

2. Straight Line Motion


This motion type allows the programmer to command perfectly straight line movements as
discussed earlier during our discussion of linear interpolation. This motion type also allows the

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programmer to specify the motion rate (feed rate) to be used during the movement. Straight line
motion can be used any time a straight cutting movement is required, including when drilling,
turning a straight diameter, face or taper, and when milling straight surfaces.
The method by which feedrate is programmed varies from one machine type to the next.
Generally speaking, machining centers only allow the feed rate to be specific in per-minute
format (inches or millimeters per minute). Turning centers also allow feed rate to be specified in
per-revolution format (inches or millimeters per revolution).

A G01 word is commonly used to specify straight line motion. Within the G01, the
programmer will include the desired end point in each axis.

3. Circular Motion
This motion type causes the machine to make movements in the form of a circular path. As
discussed earlier during our presentation of circular interpolation, this motion type is used to
generate radii during machining. All feed rate related points made during our discussion of
straight line motion still apply.
Two G codes are used with circular motion. G02 is commonly used to specify clockwise
motion while G03 is used to specify counter clockwise motion. To evaluate which to use, you
simply view the movement from the same perspective the machine will view the motion. For
example, if making a circular motion in XY on a machining center, simply view the motion from
the spindle's vantage point. If making a circular motion in XZ on a turning center, simply view
the motion from above the spindle. In most cases, this is as simple as viewing the print from
above.

Additionally, circular motion requires that, by one means or another, the programmer
specify the radius of the arc to be generated. With newer CNC controls this is handled by an "R"
word that simply states the radius. With older controls, directional vectors (specified by I, J, and
K) tell the control the location of the arc's center point. Since controls vary with regard to how
directional vectors are programmed, and since the R word is becoming more and more popular
for radius designation, our examples will show the use of the R word. If you wish to learn more
about directional vectors, refer to your control manufacturer's manual.

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Example

Program Showing Three Types of Motion

In this particular example, we are milling around the outside of a workpiece contour. Notice that
we are using a one-inch diameter end mill for machining the contour and we are programming
the very center of the end mill. Later, during key concept number four, we will discuss a way to
actually program the workpiece contour (not the cutter centerline path).
O0002 (Program number)
N005 G54 G90 S350 M03 (Select coordinate system, absolute mode, and start spindle CW at
350 RPM)
N010 G00 X-.625 Y-.25 (Rapid to point 1)
N015 G43 H01 Z-.25 (Instate tool length compensation, rapid tool down to work surface)
N020 G01 X5.25 F3.5 (Machine in straight motion to point 2)
N025 G03 X6.25 Y.75 R1.0 (CCW circular motion to point 3)
N030 G01 Y3.25 (Machine in straight motion to point 4)
N035 G03 X5.25 Y4.25 R1.0 (CCW circular motion to point 5)
N040 G01 X.75 (Machine in straight motion to point 6)
N045 G03 X-.25 Y3.25 R1.0 (CCW circular motion to point 7)
N050 G01 Y.75 (Machine in straight motion to point 8)
N055 G03 X.75 Y-.25 R1.0 (CCW circular motion to point 9)
N060 G00 Z.1 (Rapid away from workpiece in Z)
N065 G91 G28 Z0 (Go to the machine's reference point in Z)
N070 M30 (End of program)

While you may not understand all commands given in this program, concentrate on
understanding what is happening in the motion commands (G00, G01, and G02/G03). With
study, you should be able to see what is happening. Messages in parentheses are provided to
document what is happening in each command.
Keep in mind that CNC controls do vary with regard to limitations with motion types. For
example, some controls have strict rules governing how much of a full circle you are allowed to
make within one circular command. Some require directional vectors for circular motion
commands instead of allowing the "R" word. Some even incorporate automatic corner rounding
and chamfering, minimizing the number of motion commands that must be given. Though you
must be prepared for variations, and you must reference your control manufacturer's
programming manual to find out more about your machine's motion commands, at least this
presentation has shown you the basics of motion commands. You should be able to adapt to your
particular machine and control with relative ease.

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SOME FEATURES OF MODERN CNC SYSTEMS
 Advanced hardware architecture: Custom built very large scale integrated circuits
(VLSI) which can handle several functions in a single chip are used in modern CNC
systems. This way, the benefits of reduced component count and improved reliability are
realized.
 Software modularity: Each function is written as a discrete module - (structured
programming). Additional software features can be added at any time to upgrade the
control without affecting the software.
 Adaptive control: Reduces the production time by maximizing the utilization of the
machine tool. It acts on measurement taken from external sensors (In-process
measurement) and modifies the cutting conditions suitably.
 Conversational programming: The system featuring conversational programming are
termed “user friendly” since they are designed with the operator in mind. One example of
such a friendly feature is graphic display. With this feature, the operator can create the
part drawing on screen and simulate the tool paths in the preparatory phase (Prior to
machining). The operator can program in complete safety and be sure that nothing is
omitted. The operator can also check the correctness of the part program on graphic
display.
 Programming flexibility: In addition to conversational part programming language, high
level language commands like IF-THEN ELSE, GO TO etc., can be used to extend the
program‟s power. Higher mathematical functions can be used to calculate square roots,
trigonometric functions etc.
 DNC link: This is discussed separately in detail later.

 Color graphics: This provides visual interface between the operator and CNC. Part cross
sections can be highlighted. Operating instructions and warning display can be colour
coded for more clarity.
 Machine interface: A high-level language like C is used for programming the machine
logic in PC (example: GE 2000 MC). In AB8600, high-level language SIPROM (System
Interface-Programming) is used.
 Automatic selection of cutting speeds: If we specify the tool material and work material,
C N C System selects cutting speed and feed from cutting condition technology database.
 Automatic selection of tools and sequencing of tools: If operation is specified, system
selects corresponding tools and sequence of tools. Systems like Mazak Fusion 640
provides this knowledge based approach.
 Optimization of machine program: This feature will be useful for components with large
number of drilling, tapping operations, or repetitive end milling tool paths as in the case
of machining of dies and molds etc.

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 Display of finished component: Today CNC systems offer a feature to display the
finished component together with dimensions. Sectioning and rotation of the model of the
finished part are also possible.
 Background programming: It is a common facility available in CNC systems. The user
can run, edit and simulate another program while a program is being executed on the
machine tool.
 Digital CNC: The new breed of CNC controls uses digital technology. The introduction
of digital CNC has brought increased speed and precision to machine tool builders. The
PC based open architecture controls incorporate such features like acceleration with jerk
limitation, direct NURBS interpolation, use of high level languages, execution of large
CNC programs from hard disc and increased number of zero offsets. In some of the
systems the CNC and drive amplifiers are on the some board at the digital level.
 Look ahead feature: The control system scans 150 or more blocks ahead of the block
that is being executed and carries out interpolation and calculates the acceleration and
deceleration requirements in the case of generation of complex tool paths. This helps to
produce accurate profiles in high speed machining.

DIRECT NUMERICAL CONTROL (DNC)

Early NC machines used a tape reader for storing and inputting the program into the memory of
the NC machine tool. Because of the unreliability of the tape reader as well as the low speed of
operation NC engineers were searching for a suitable alternative. The advent of CNC in mid-
sixtees opened up the possibility of improving the performance of NC machines by interfacing
them with minicomputers. Yet another significant technological development was the interfacing
of several NC machines with a computer, which can store the part programs and transfer them to
the NC machine concerned as and when needed. The computer is connected between the tape
reader and the NC machine thereby bypassing the tape reader. This system was therefore called
as behind the tape reader system (BTR). This development became very popular with NC
machine users because of a number of significant advantages.
(i) A number of NC machines can be connected to a single computer. In many cases a single
computer can manage all the machines on a shop floor.
(ii) Programs in full or in segments can be transferred to the NC machines in a multiplexing
mode.
(iii)The computer can be conveniently used for program editing.
(iv) Since the computer has large memories there is no limitation on the number or size of
programs stored.
(v) The computer can be used for other tasks like program creation using computer aided part
program generation software as well as for operation management tasks like production
planning, scheduling etc.

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With the development of CNC, DNC concept was extended to CNC machines also mainly for
part program management. The DNC computer (sometimes referred to as host computer) could
serve a number of CNC machines in shop floor. The DNC computer stores all the part programs
and transfers the part programs to the CNC machines in response to the requests of the operators.

A DNC System

DNC systems are generally designed for 4, 8, or 16 CNC machines. However, with the wide
spread acceptance of the local area network concept, the possibility of connecting more CNC
machine in a DNC network has become a reality. The concepts of Internet, Intranet and Extranet
have further enlarged the scope of distributed numerical control.

OBJECTIVES OF DNC

DNC serves many purposes and is now considered as essential for the efficient management of
CNC machine tools in the shop floor. The main objectives of implementing DNC are given
below:
1. Upload and download CNC programs to and from machine tools simultaneously and
directly from the CNC systems.
2. Easy editing of the existing programs.
3. Eliminating the use of manual switch boxes to multiplex CNC machines.
4. Organizing and cataloguing of all programs for instant access.
5. Eliminating the need for manually punching the program at the keyboard thereby
6. Saving considerable costly machine time.
7. Eliminating the need for paper tape in the old generation of NC machines.
8. Copy programs to and from the floppy discs and other media to the DNC computer.
9. Compare files edited at the CNC to the original program.

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10. Rename or delete or update programs or create new programs.
11. Show pictures of set ups for graphic catalogue of set up and machining operations.
12. Providing system transaction files of all activity on the DNC computer.
13. Pass word protection at different points of the CNC system wherever the operator could
cause damage to the NC code by overwriting.
14. Tool length offsets from tool pre-setters can be transferred directly to machine tool
controls. It is also possible to connect co-ordinate measuring machines to DNC networks.

DISTRIBUTED NUMERICAL CONTROL

Sometimes the abbreviation DNC is used to denote distributed numerical control. A computer
network for manufacturing may consist of a main frame computer, CAD/CAM work stations,
DNC host computer and the CNC systems connected to it. This configuration can be beneficially
used for NC data processing. Any complex calculations required for generating NC data can be
transferred to the more powerful mainframe computer. Thus the NC DATA processing is done at
different hierarchical levels. In a way many of the DNC systems today are in fact distributed
processing systems.

FUNCTIONS OF A DNC SYSTEM

The functions of a DNC system can be summarized as below:


i. Part Program management: Part program stored in the hard disc can be routed to
appropriate machines in the network depending upon the schedule.
ii. Shop floor editing: Program can be edited or modified to take into account design
changes, tool changes or machine changes.
iii. Shop floor graphics: The tool path simulation can be carried out on the shop floor.
iv. Data collection: The DNC computer can be used for shop floor data collection for
scheduling and monitoring.
v. Shop scheduling: Since NC program dispatch is interlinked with the schedule, the DNC
computer can be used for scheduling.
vi. Statistical Process Control (SPC): The SPC function can be integrated into the working
of the DNC computer as it can be interfaced with the shop floor data collection function.
vii. Tool offset management: Tool offset data is sent to appropriate machine by this function.

The DNC network systems are usually UNIX, Novell or Windows based. They have
multitasking capabilities and Ethernet, arcnet or token ring interfaces. They may also have
Limited CAD/CAM capabilities. Efficient built-in security systems will take care of
unauthorized access.

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