Basic production algorithms and its main concepts Ing.J.Skorkovský,CSc. and various listed sources Department of Corporate Economy Slides 2-18 –basic production theory and 29-48 practical NAV example Comment : without basic production theory it is useless to model production in ERP Main concepts •MRP=Material Requirements Planning (push) •MRP_II=Manufacturing Resource Planning (push) •APS = Advanced Planning and Scheduling •JIT = Just In Time (pull) •TOC (Drum-Buffer-Rope) (push-pull->combined) – was presented in another session of this course • Work Order=Production order in MS Dynamics NAV BOM=Bill Of Material (structure of the product) A 100 300 400 200 B 500 300 600 100 300 400 Component Product|Semiproduct •Independent demand for products and semi-products and dependent for components •Planning backward from production schedule (independent) to dependent- demand components -without statistically calculated Reorder Point (ROP)– see next lesson and next slide as well •IF ROP is not taken into consideration – MRP is PUSH system -> it computes the schedule of what should be started (pushed) into a system, that authorizes production as inventory is consumed (ROP will be explained later in this session- only Czech course BPH-PIS2) 0,1,2,,..Low Level Codes HOME STUDY Push system Supplier1 Supplier 2 MRP|ERP Operation 1 Operation 2 Operation 3 Operation 4 Customer 1 Customer 2 FG warehouse Component warehouse Forecast Purchase orders ROUTING (how to do it) Take it ! Determination of the Reorder Point (ROP) •ROP=expected demand during lead time + safety stock 20 50=ROP 50-20=30 LT =Lead time Expected demand=30 Determination of the Reorder Point (ROP) (home study - AOPR-only for avid readers- will be not discussed during exams) •ROP = expected demand during lead time + z* σdLT • where z = number of standard deviations and • σdLT = the standard deviation of lead time demand and z* σdLT =Safety Stock • aan Example ( Pareto analysis and ABC model simplified - PWP will be shown later) (home study - AOPR-only for avid readers- will be not discussed during exams) •The manager of a construction supply house determined knows that demand for sand during lead time averages is 50 tons. •The manager knows, that demand during lead time could be described by a normal distribution that has a mean of 50 tons and a Standard Deviation of 5 tons (σdLT ) •The manager is willing to accept a stock out the risk of no more than 3 percent Example-data (home study - AOPR-only for avid readers- will be not discussed during exams) •Expected lead time averages = 50 tons. •σdLT = 5 tons •Risk = 3 % max •Questions : • –What value of z (number of standard deviations) is appropriate? –How much safety stock should be held? –What reorder point should be used? – Example-solution (home study - AOPR-only for avid readers- will be not discussed during exams) •Service level =1,00-0,03 (risk) =0,97 and from probability tables you will get z= +1,88 – – See next slide with probability table Probability table home study - AOPR-only for avid readers- will be not discussed during exams Example-solution (home study - AOPR-only for avid readers- will be not discussed during exams) •Service level =1,00-0,03 =0,97 and from probability tables we have got : z= +1,88 •Safety stock = z * σdLT = 1,88 * 5 =9,40 tons •ROP = expected lead time demand + safety stock = 50 + 9.40 = 59.40 tons •For z=1 service level =84,13 % •For z=2 service level= 97,72 % •For z=3 service level = 99,87% (see six sigma) – MRP_II =MRP + resource capacity planning MPS Demand management Rough-cut capacity planning BOM MRP Scheduled receipts Job Pool (planned) Capacity requirement planning Job Release Routings (operations) Job Dispatch MRP addresses the supply chain while MRPII includes manufacturing. BOM in MS Dynamics NAV B OM = Bill of Material 7 6 5 4 3 2 1 Routings in MS Dynamics NAV Capacity of resources in MS Dynamics NAV •Toyota Motors and Taiichi Ohno •Production based only on demand •Lower inventory costs •The concept behind it is that a company can save money on parts and components---by not have having to store them--- if they are delivered to the assembly line just in time to be installed on the car as it is being built. Kanban principle Resource : (home study not fro AOPR-AOMA) Orders Tracking Sales Order Customer Purchase Order Sales Order Line Planning production (MRP-II ) Tracking Production Order Bill of Material Routing (OP1-OP4) Tracking Requisition Worksheet (MRP) Tracking Tracking Stock Vendor Tracking Product and two components 1150 1151 1155 Product Components Requirement=Demand •Request=Demand (Sales Order) will be for Front Hub 1150 (200), whose BOM consists of two 1151 components (200 in stock) and 1155 (200 in stock). •Preparing data for example: Change both components (1151 and 1155) the following parameters : • Reordering policy: Lot-for-Lot. Furthermore, with the help of an Item Journal, sell 200 pieces of 1150 and its components 1151 and 1155. • •Attention: components and product are not stored at any location. Next, change on the Replenishment tab for both components the Vendor number to 10000. The result of the demand (request) will be the production order planning and subsequent consumption registration of components and resources and put-away of the final product • •Set Scrap%=0 on all involved items !!!! Lot size parameter on all involved items=0! • Item (Final) 1150 Set Scrap%->0 !!! Partial setup of components (both) Safety stock value set to 0 Item (Final) 1150 Safety stock value set to 0 0 Items (components) 1151 ( 1155 has the same setup) Safety stock value set to 0 Use of Item Journal to „clean“ inventory How to go there ->Warehouse ->Inventory->Tasks->Item Journals Item ledger entries Use Ctrl-F7 and filters Working date setup Sales Order for 100 pcs Demand creation- reason for production planning •You might be notified that item 1150 is not in stock !! Our reaction to warning should be YES (if warning message generated) •Next, change the Scheduled Delivery Date in the sales line to 20.4. 2020, well away from the working date (1.4.2020) •Reason: that the scheduling algorithm does not schedule the start of production to date before the working date Part of the sales line Sales Order lines for 100 pcs Planning worksheets (MRP) MRP = Material Requirement Planning Planning worksheets Planning Batch job is running… Planning worksheets Planning worksheet Production order Purchase order 1151 1155 1150 Creation of Purchase order and Production order Diagram of the pocess Firm Planned Production Orders Firm Planned Production Order See next slide Bill of Material (BOM) & Routing To go to Routing and Components (BOM) use ikon Line ) see previous slide To go to Demand use Icon Function and Order Tracking Firm Planned Production (animated) To go to Routing and Components use ikon Line To go to Demand use Icon Function and Order tracking Created Purchase Order lines (Purchasing->Order PROcessing->Purchase Orders) Lines of the Purchase order See next slide Item ledger entries (only components) Used filter to see only entry type=Purchase Change the status of Production Order Before planning we have changed working day to 3.4.2020 Statistics from Relesed Production Order (F7) Click and edit->Released Production Order->F7 Production Journal (from icon Lines) Data such as Setup times and Run Times was entered manually. We have used exact data from original Routing Released Production Order We need to register time of manchines and consumption of components Item entries after registering (F9) End of the English section This is the end Beautiful friend This is the end My only friend, the end… So why worry now …… Czech version of the example Česká verze příkladu na výrobu Určeno pro kurzy BPH_PIS- BPH_PIS2 Požadavek Požadavek (Prodejní objednávka) bude na prodej Předního náboje 1150 (na skladě 200), jehož kusovník se skládá ze dvou komponent 1151 (200 na skladě) a 1155 (200 na skladě). Příprava dat pro příklad : Změňte u obou komponent (1151 a 1155) Způsob přiobjednání na Dávka-pro- dávku. Dále s pomocí deníku zboží prodejte 200 ks výrobku 1150 a jeho komponent 1151 a 1155. Pozor: komponenty i výrobek nejsou uloženy na žádné lokaci. Dále změňte na záložkách Doplnění u obou komponent dodavatel na 10000. Dále vynulujte pole zmetky a pole Bezpečnostní zásoba Výsledkem požadavku bude naplánování Výrobní zakázky a její následné odhlášení (komponenty do spotřeby a výrobek na sklad) Vynulování počtů 1150..1155 na skladě Deník zboží ->F9 Prodejní objednávka na 100 ks 1150 Dostaneme upozornění, že podsestava kola 1150 není na skladě !! Reakce->ANO Dále změňte Plánované datum dodávky na datum 20.4. , tedy dostatečně daleko od pracovního data – Důvod : aby plánovací algoritmus neplánoval počátek výroby na data před pracovním datem. Prodejní řádek Další krok procesu plánování Viz další snímek Plánovací sešit Plánované datum dodávky (viz prodejní řádek) je pro tuto databázi 4.5.2017. Do Čísla zboží zavedeme ručně Jak číslo výrobku tak i čísla komponent ->1150|1151|1155 Viz další snímek Sledování zakázky Seši plánování po naplánování Plánovací sešit Výrobní objednávka Nákupní objednávka 1151 1155 1150 Řádky nákupní objednávky Doplňte číslo faktury dodavatele a zaúčtuje F9->podívejte se na položky zboží Položky zboží po zaúčtování příjmu komponent Výrobní zakázka a změna jejího stavu (Pevně plánovaná VZ ->Vydaná VZ) VZ je v dílně Vydaná VZ a její komponenty Viz další snímek Kusovník a technologický postup Řádek VZ->Komponenty Řádek VZ->TNG postup Statistika VZ (s pomocí F7) Odhlášení spotřeby a zdrojů V řádku VZ vydané, kde je ikona Funkce najdete Deník výroby Zadejte ručně odhadnutou dobu seřízení a zpracování včetně spotřeby materiálu. Zadané hodnoty by se neměly lišit od TNG postupu uvedeného pře několika snímky. Na dalším obrázku to zobrazíme ještě jednou pro ulehčení zadávání hodnot do Výrobního deníku. Zde se často používají dotykové obrazovky a BAR čtečky Deník výroby po vyplnění Záměrně je množné některé časy změnit- reálné časy nemusí přesně odpovídat plánu. Statistika VZ po zaúčtování deníku Položky VZ po zaúčtování (VZ->Ctrl-F7) Dokončená VZ VZ- kalkulace