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Lecture Production operations management: Lecture 32 - Osman Bin Saif

In this chapter, the following content will be discussed: Material requirement planning, nature of demand, inputs to MRP, bill of material, planned orders, net requirement plan, MRP and JIT, lot sizing techniques, maintenance and reliability, reliability, product failure rate, providing redundancy, maintenance cost, total productive maintenance. | LSM733-PRODUCTION OPERATIONS MANAGEMENT By: OSMAN BIN SAIF LECTURE 32 1 CHAPTER : MATERIAL REQUIREMENT PLANNING (Contd.) 2 Lot-Sizing Techniques Lot-for-lot techniques order just what is required for production based on net requirements May not always be feasible If setup costs are high, lot-for-lot can be expensive Economic order quantity (EOQ) EOQ expects a known constant demand and MRP systems often deal with unknown and variable demand 3 3 Lot-Sizing Techniques Part Period Balancing (PPB) looks at future orders to determine most economic lot size The Wagner-Whitin algorithm is a complex dynamic programming technique Assumes a finite time horizon Effective, but computationally burdensome 4 4 Lot-Sizing Summary For these three examples Lot-for-lot $700 EOQ $730 PPB $490 Wagner-Whitin would have yielded a plan with a total cost of $455 5 5 ERP and MRP Figure 14.11 6 6 CHAPTER : JIT, Lean Operations Just-In-Time, TPS, and Lean Operations JIT is a philosophy of continuous and forced . | LSM733-PRODUCTION OPERATIONS MANAGEMENT By: OSMAN BIN SAIF LECTURE 32 1 CHAPTER : MATERIAL REQUIREMENT PLANNING (Contd.) 2 Lot-Sizing Techniques Lot-for-lot techniques order just what is required for production based on net requirements May not always be feasible If setup costs are high, lot-for-lot can be expensive Economic order quantity (EOQ) EOQ expects a known constant demand and MRP systems often deal with unknown and variable demand 3 3 Lot-Sizing Techniques Part Period Balancing (PPB) looks at future orders to determine most economic lot size The Wagner-Whitin algorithm is a complex dynamic programming technique Assumes a finite time horizon Effective, but computationally burdensome 4 4 Lot-Sizing Summary For these three examples Lot-for-lot $700 EOQ $730 PPB $490 Wagner-Whitin would have yielded a plan with a total cost of $455 5 5 ERP and MRP Figure 14.11 6 6 CHAPTER : JIT, Lean Operations Just-In-Time, TPS, and Lean Operations JIT is a philosophy of continuous and forced problem solving via a focus on throughput and reduced inventory TPS emphasizes continuous improvement, respect for people, and standard work practices Lean production supplies the customer with their exact wants when the customer wants it without waste 8 Eliminate Waste Waste is anything that does not add value from the customer point of view Storage, inspection, delay, waiting in queues, and defective products do not add value and are 100% waste 9 Ohno’s Seven Wastes Overproduction Queues Transportation Inventory Motion Overprocessing Defective products 10 The 5 Ss Sort/segregate – when in doubt, throw it out Simplify/straighten – methods analysis tools Shine/sweep – clean daily Standardize – remove variations from processes Sustain/self-discipline – review work and recognize progress The 5 Ss Sort/segregate – when in doubt, throw it out Simplify/straighten – methods analysis tools Shine/sweep – clean daily Standardize – remove variations from processes Sustain/self-discipline – review