Evolution of Manufacturing Environment The field of production planning and control has undergone tremendous change in the last 50 years. Prior to the 1960s, inventory was controlled by a manual system, utilizing various techniques: stock replenishment, reorder points, EOQ (economic order quantity), and ABC classifications, to name a few. By the mid-1970s, enough experience of material requirements planning (MRP) had been gained and the importance of the master production schedule (MPS) was realized. In the 1950s, MRP was the first off-the-shelf business application to support the creation and maintenance of material master data and bill-of-materials across all products and parts in one or more plants. These early packages were able to process mass data but only with limited processing depth. From the 1940s to the early 1960s, material control consisted of basic ‘order point’ formulae used to maintain a level average inventory balance. In 1965, Joseph Orlicky of the J.Continue reading
Production Management
Safety Stock Analysis in Inventory Management
In real life situations one rarely comes across inventory lead times and usage rates that are known with certainty. When usage rate and/or lead time vary, then the reorder level should naturally be at a level high enough to cater to the production needs during the procurement period and also to provide some measures of safety for at least partially neutralizing the degree of uncertainty. The question will naturally arise as to the magnitude of safety stock. There is no specific answer to this question. However, it depends, inter alia, upon the degree of uncertainty surrounding the usage rate and lead time. It is possible to a certain extent to quantify the values that usage rate and lead time can take along with the corresponding chances of occurrence, known as probabilities. These probabilities can be ascertained based on previous experiences and/or the judgemental ability of astute executives. Based on theContinue reading
Quality Circles – Definition, Structure and Implimentation
It is now an accepted fact that in today’s fiercely competitive world, individual efforts, however brilliant, cannot be a substitute for teamwork. Modern organizations have to heavily depend on various types of teams to be effective and efficient. Japan is a pioneer in this team concept and has shown the world how an innovative concept like “Quality Circles” draws involvement of employees at all levels in solving work related problems and achieve continuous improvement in every area of work. Japanese organizations give a very large credit to this concept for their undisputed world leadership in quality and productivity. What is “Quality Circle”? Quality Circle is a voluntary association of a group of persons working in same or similar type of job at the same work area who meet regularly one hour a week during their normal working time to discuss about their work related problems and arrive at aContinue reading
Characteristics of a Good Plant Layout
The layout of a plant or facility is concerned with the physical placement of resources such as equipment and storage facilities, which should be designed to facilitate the efficient flow of customers or materials through the manufacturing or service system. The layout design is very important and should be taken very seriously as it can have a significant impact on the cost and efficiency of an operation and can involve substantial investment in time and money. The decisions taken with regards to the facility layout will have a direct influence on how efficiently workers will be able to carry out their jobs, how much and how fast goods can be produced, how difficult it is to automate a system, and how the system in place would be able to respond to any changes with regards to product or service design, product mix, or demand volume. In many operations the installationContinue reading
Dispatch Function in Production Management
Meaning of Dispatch Function Dispatch function in production management executes planning function. It is concerned with getting the work started. Dispatching ensures that the plans are properly implemented. Dispatching is the physical handing over of a manufacturing order to the operating facility (a worker) through the release of orders and instructions in accordance with a previously developed plan of activity (time and sequence) established by the scheduling section of the production planning and control department. Dispatcher transmits orders to the various shops. Dispatch function determines, by whom the job shall be done and it co-ordinates production. It is the key point of a production communications system. It creates a direct link between production and sales. A dispatcher is familiar with the productive capacity of each equipment. He always keeps an eye over the progress of orders which move at different speeds on different routes. Dispatch Procedure The product isContinue reading
Tool Control in Production Management
Meaning of Tool Control Tool control in production management implies (1) determining tool requirements (2) procuring necessary tools and (3) controlling/maintaining tools once they have been procured. A tool or process planner must calculate tool requirements prior to the time of production to ensure that proper tools will be available when needed. Lost time resulting from incomplete tools planning can be expensive as well as causing work to delay. In order to facilitate tool control and to limit the investment in tool inventory, it is important to standardize wherever possible all the tools within an organisation. Need for Tool Control It is very important to ensure: Against loss through theft or negligence and production delays through misplacement or non-availability of tools. That the investment in tool inventories is minimized consistent with proper tool availability. Tool Control Procedure Two methods are commonly used to control the issue and receipt of toolsContinue reading