Mission College Success of the New System Implementation at McDonalds Questions

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CTA 4: JIT McDonald’s Style.

A link to two short videos (a bit dated) about JIT McDonald’s Style are included herewith. McDonald’s has a brand recognition that is the envy of other companies. Food preparation speed has always been fast, but as market needs changed, McDonald’s recognized a need to provide customers with greater variety and customized meals. The new kitchen system, named “made for you,” enables McDonald’s to customize and maintain quick response.

Play media comment.Video 1: JIT McDonald’s Style

Video2: Behind the scenes of a brand new McDonald's. (Links to an external site.)

Write well-thought out answers to the questions below:

  1. What were the goals of the “made for you” kitchen system.
  2. What are the criteria for success of the new system.
  3. Describe the forecasting system used in new system. Why is forecasting needed?

Please follow the rubric below and write about 650-700 words.

Please provide plagiarism check and grammar check.

NO too much outside resources, please relate to lecture notes below.

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CHAPTER 15 Resource Planning Lecture Outline • Material Requirements Planning (MRP) • Capacity Requirements Planning (CRP) • Enterprise Resource Planning (ERP) • Customer Relationship Management (CRM) • Supply Chain Management (SCM) • Product Lifecycle Management (PLM) Dr. Loomba Class Notes Chapter 15 15-1 Resource Planning for Manufacturing Material Requirements Planning (MRP) • Computerized inventory control and production planning system • When to use MRP? • Dependent demand items • Discrete demand items • Complex products • Job shop production • Assemble-to-order environments Dr. Loomba Class Notes Chapter 15 15-2 Demand Characteristics Independent demand Dependent demand 100 x 1 = 100 tabletops 100 x 4 = 400 table legs 100 tables Continuous demand Discrete demand 400 – 300 – No. of tables No. of tabless 400 – 200 – 100 – 1 2 3 Week 4 300 – 200 – 100 – 5 M T W Th F M T W Th F Dependent vs. Independent Demand Item Demand Source Material Type Method of E ti ti Estimating Demand Planning Method Dr. Loomba Materials With Materials With Independent Demand Dependent Demand Company Customers Parent Items Finished Goods WIP & Raw Materials Forecast & Booked Customer Orders Calculated EOQ & ROP MRP Class Notes Chapter 15 15-3 MRP Overview Authorized A th i d master production schedule Inventory transactions Inventory records Other sources of demand MRP explosion Engineering and process designs Bills of materials Material requirements plan Material Requirements Planning Product structure file Master production schedule Material requirements planning Item master file Planned order releases Work orders Dr. Loomba Class Notes Purchase orders Rescheduling notices Chapter 15 15-4 MRP Inputs and Outputs • Inputs • Master production schedule • Product structure file • Item master file • Outputs • Planned order releases • Work W k orders d • Purchase orders • Rescheduling notices Master Production Schedule (MPS) It is an extension of aggregate plan. It specifies productions d ti exactly tl iin ffollowing ll i tterms: • i. ii. iii. what (stated in terms of individual end-items) when (stated in weeks, days, or even hours) and how much (quantity) Aggregate Plan (Product Groups) MPS (Specific End Items) Dr. Loomba Class Notes Chapter 15 15-5 Master Production Schedule • Drives MRP process with a schedule of finished products p • Quantities represent production not demand • Quantities may consist of a combination of customer orders and demand forecasts • Quantities represent what needs to be produced, not what can be produced • Quantities represent end items that may or may not be finished products Product Structure File Dr. Loomba Class Notes Chapter 15 15-6 Typical Focus of the Master Production Schedule Make to Order (Process Focus) Number of end items Assemble to Order or Forecast Stock to Forecast (Repetitive) (Product Focus) Schedule finished product Typical focus of the master production schedule Schedule modules Schedule orders Number of inputs Examples: Print shop Machine shop Fine dining restaurant Motorcycles Autos, TVs Fast-food restaurant Steel, Beer, Bread Light bulbs, Paper Types of Time Fences • Demand Time Fence • No schedule changes allowed within this time fence fence. This fence is also referred to as frozen. • Planning Time Fence • This fences allows for changes. Typically can be divided into two parts: Specific changes allowed within product groups as long as parts are available. Flexible: Significant variation allowed as long as overall capacity requirements remain at the same levels. • Moderately Firm: • Dr. Loomba Class Notes Chapter 15 15-7 Master Production Schedule MPS ITEM Pencil Case Clipboard Lapboard Lapdesk 1 2 125 85 75 0 125 95 120 50 PERIOD 3 4 125 120 47 0 5 125 100 20 50 125 100 17 0 Product Structure Clipboard Top clip (1) Bottom clip (1) Pivot (1) Finished clipboard Pressboard (1) Copyright 2011 John Wiley & Sons, Inc. Dr. Loomba Class Notes Spring (1) Rivets ((2)) 15-16 Chapter 15 15-8 Product Structure Tree Level 0 Clipboard Pressboard (1) Top Clip (1) Clip Ass’y (1) Bottom Clip (1) Rivets (2) Pivot (1) Level 1 Spring (1) Level 2 Multilevel Indented BOM LEVEL 0----1----2---2---2---2--1---1--- Dr. Loomba ITEM Clipboard Clip Assembly Top Clip Bottom Clip Pivot Spring Rivet Press Board Class Notes UNIT OF MEASURE QUANTITY ea ea ea ea ea ea ea ea 1 1 1 1 1 1 2 1 Chapter 15 15-9 Bill-of-Material • List of components & quantities needed to make product • Provides product structure tree • Parents: Items above g given level;; Children: Items below given g level • Shows low-level coding • Lowest level in structure item occurs; Top level is 0; next level is 1 etc. Product structure for “Awesome” (A) A Level 0 BOM Example B(2) Std. 12” Speaker kit 1 E(2) 2 E(2) F(2) Packing box and installation kit of wire, bolts, and screws D(2) 3 Std. 12” Speaker kit w/ ampampbooster C(3) G(1) Std. 12” Speaker booster assembly D(2) Amp--booster Amp 12” Speaker 12” Speaker BOM Example Product structure for “Awesome” (A) A Level 0 E(2) 2 3 C(3) Std. 12” Speaker kit w/ B(2) Std. 12” Speaker kit 1 F(2) Std. 12” Speaker E(2) Packing box and installation kit of wire, bolts, and screws D(2) amp a ampp-booste booster booster assembly G(1) D(2) Amp--booster Amp 12” Speaker Part B: Part C: Part E: Part F: Part D: Part G: Dr. Loomba 12” Speaker 2 x number of As = 3 x number of As = 2 x number of Bs + 2 x number of Cs = 2 x number of Cs = 2 x number of Bs + 2 x number of Fs = 1 x number of Fs = Class Notes (2)(50) = (3)(50) = 100 150 (2)(100) + (2)(150) = (2)(150) = 500 300 (2)(100) + (2)(300) = (1)(300) = 800 300 Chapter 15 15-10 Time-Phased Product Structure Must have D and E completed here so production can begin on B Start production of D 1 week D 2 weeks to produce B 2 weeks E A 2 weeks 1 week E 1 week 2 weeks G C 3 weeks F 1 week D | | | | | | | | 1 2 3 4 5 6 7 8 Time in weeks Specialized BOMs • Phantom bills • Transient subassemblies • Never stocked • Immediately consumed in next stage • K-bills • Group small, loose parts under pseudo-item number • Reduces paperwork, processing time, and file space Dr. Loomba Class Notes Chapter 15 15-11 Specialized BOMs • Modular bills • Product assembled from major subassemblies and customer options • Modular bill kept for each major subassembly • Simplifies forecasting and planning • X10 automobile example • 3 x 8 x 3 x 8 x 4 = 2,304 configurations • 3 + 8 + 3 + 8 + 4 = 26 modular bills Modular BOMs X10 Automobile Engines (1 of 3) Exterior color (1 of 8) Interior (1 of 3) Body (1 of 4) 4-Cylinder (.40) Bright red (.10) Leather (.20) Grey (.10) Sports coupe (.20) 6-Cylinder (.50) White linen (.10) Tweed (.40) Light blue (.10) Two-door (.20) 8-Cylinder (.10) Sulphur yellow (.10) Plush (.40) Neon orange (.10) Dr. Loomba Interior color (1 of 8) Rose (.10) Four-door (.30) Off-white (.20) Station wagon (.30) Metallic blue (.10) Cool green (.10) Emerald green (.10) Black (.20) Jet black (.20) Brown (.10) Champagne (.20) B/W checked (.10) Class Notes Chapter 15 15-12 Time-phased Bills • An assembly chart shown against a time scale Time-phased Bills • Forward scheduling • start at today‘s today s date and schedule forward to determine the earliest date the job can be finished. If each item takes one period to complete, the clipboards can be finished in three periods • Backward scheduling • Dr. Loomba start at the due date and schedule backwards to determine when to begin work. If an order for clipboards is due by period three, we should start production now Class Notes Chapter 15 15-13 Item Master File DESCRIPTION Item Pressboard Item no. It 7341 Item type Purch Product/sales class Comp Value class B Buyer/planner RSR Vendor/drawing 07142 Phantom code N Unit price/cost 1.25 Pegging Y LLC 1 INVENTORY POLICY Lead time A Annual l demand d d Holding cost Ordering/setup cost Safety stock Reorder point EOQ Minimum order qty Maximum order qty Multiple order qty Policy code 1 5000 1 50 0 39 316 100 500 1 3 Item Master File PHYSICAL INVENTORY On hand 150 Location W142 On order 100 Allocated 75 Cycle 3 Last count 9/5 Difference -2 USAGE/SALES YTD usage/sales 1100 MTD usage/sales 75 YTD receipts 1200 MTD receipts 0 Last receipt 8/25 Last issue 10/5 CODES Cost acct. Routing Engr Dr. Loomba Class Notes Chapter 15 00754 00326 07142 15-14 MRP Processes • Exploding the bill of material • Netting out the inventory • Netting • the process of subtracting on-hand quantities and scheduled receipts from gross requirements to produce net requirements • Lot sizing • determining the quantities in which items are usually made or purchased • Time-phasing requirements MRP Matrix Dr. Loomba Class Notes Chapter 15 15-15 MRP Master Production Schedule Clipboard Lapdesk 1 2 3 85 0 95 60 120 0 4 100 60 5 100 0 Item Master File On hand On order (sch receipt) LLC Lot size Lead time CLIPBOARD 25 175 (Period 1) LAPDESK 20 0 PRESSBOARD 150 0 0 L4L 1 0 Mult 50 1 1 Min 100 1 MRP Product Structure Record Clipboard Pressboard (1) Level 0 Clip Ass’y (1) Rivets (2) Level 1 Lapdesk p Pressboard (2) Dr. Loomba Trim (3’) Class Notes Level 0 Beanbag (1) Glue (4 oz) Chapter 15 Level 1 15-16 MRP - 1 ITEM: CLIPBOARD LOT SIZE: L4L LLC: 0 LT: 1 Gross Requirements Scheduled Receipts Projected on Hand PERIOD 1 2 85 95 3 4 5 120 100 100 3 4 5 120 100 100 175 25 Net Requirements Planned Order Receipts Planned Order Releases MRP - 2 ITEM: CLIPBOARD LOT SIZE: L4L LLC: 0 LT: 1 Gross Requirements Scheduled Receipts Projected on Hand PERIOD 1 2 85 95 175 25 Net Requirements 115 0 Planned Order Receipts Planned Order Releases (25 + 175) = 200 units available (200 - 85) = 115 on hand at the end of Period 1 Dr. Loomba Class Notes Chapter 15 15-17 MRP - 3 ITEM: CLIPBOARD LOT SIZE: L4L LLC: 0 LT: 1 Gross Requirements Scheduled Receipts Projected on Hand PERIOD 1 2 85 95 3 4 5 120 100 100 3 4 5 120 100 100 175 25 115 20 0 0 Net Requirements Planned Order Receipts Planned Order Releases 115 units available (115 - 85) = 20 on hand at the end of Period 2 MRP - 4 ITEM: CLIPBOARD LOT SIZE: L4L LLC: 0 1 2 Gross Requirements 85 95 Scheduled Receipts 175 Projected on Hand LT: 1 PERIOD 25 Net Requirements 115 20 0 0 0 100 Planned Order Receipts Planned Order Releases 100 100 20 units available (20 - 120) = -100 — 100 additional Clipboards are required Order must be placed in Period 2 to be received in Period 3 Dr. Loomba Class Notes Chapter 15 15-18 MRP - 5 ITEM: CLIPBOARD LOT SIZE: L4L LLC: 0 LT: 1 Gross Requirements Scheduled Receipts Projected on Hand PERIOD 1 2 3 4 5 85 95 120 100 100 115 20 0 0 0 0 0 175 25 Net Requirements Planned Order Receipts Planned Order Releases 100 100 100 100 100 100 100 100 100 Following the same logic Gross Requirements in Periods 4 and 5 develop Net Requirements, Planned Order Receipts, and Planned Order Releases MRP - 6 ITEM: LAPDESK LOT SIZE: MULT 50 LLC: 0 LT: 1 Gross Requirements PERIOD 1 2 0 60 3 4 0 60 5 0 Scheduled Receipts Projected on Hand 20 Net Requirements Planned Order Receipts Planned Order Releases Dr. Loomba Class Notes Chapter 15 15-19 MRP - 7 ITEM: LAPDESK LOT SIZE: MULT 50 LLC: 0 LT: 1 PERIOD 1 Gross Requirements 2 3 4 5 0 60 0 60 0 20 10 10 0 0 Scheduled Receipts Projected on Hand 20 Net Requirements 0 Planned Order Receipts Planned Order Releases 40 50 50 50 50 50 Following the same logic, the Lapdesk MRP matrix is completed as shown MRP - 8 ITEM: CLIPBOARD LLC: 0 LOT SIZE: L4L LT: 1 Planned Order Releases ITEM: LAPDESK LOT SIZE: MULT 50 LLC: 0 LT: 1 Planned Order Releases ITEM: PRESSBOARD LOT SIZE: MIN 100 Gross Requirements Scheduled Receipts Projected on Hand Net Requirements Planned Order Receipts Planned Order Releases Dr. Loomba 1 PERIOD 2 3 4 100 100 100 1 2 50 LLC: 0 LT: 1 1 PERIOD 3 5 4 5 4 5 50 2 PERIOD 3 150 Class Notes Chapter 15 15-20 MRP – 9 ITEM: CLIPBOARD LLC: 0 LOT SIZE: L4L LT: 1 Planned Order Releases ITEM: LAPDESK LOT SIZE: MULT 50 1 PERIOD 3 4 100 100 2 PERIOD 3 x1 LLC: 0 LT: 1 1 Planned Order Releases ITEM: PRESSBOARD LOT SIZE: MIN 100 2 100 50 LLC: 0 LT: 1 Gross Requirements Scheduled Receipts Projected on Hand Net Requirements Planned Order Receipts Planned Order Releases x1 x1 4 5 5 50 x2 x2 5 1 2 PERIOD 3 4 100 100 200 100 1 PERIOD 2 3 4 100 100 100 0 150 MRP – 10 ITEM: CLIPBOARD LLC: 0 LOT SIZE: L4L LT: 1 Planned Order Releases ITEM: LAPDESK LOT SIZE: MULT 50 x1 LLC: 0 LT: 1 1 Planned Order Releases ITEM: PRESSBOARD LOT SIZE: MIN 100 Gross Requirements Scheduled Receipts Projected on Hand Net Requirements Planned Order Receipts Planned Order Releases Dr. Loomba 2 50 LLC: 0 LT: 1 150 Class Notes x1 x1 4 5 4 5 50 x2 x2 PERIOD 3 1 2 PERIOD 3 100 100 200 100 50 50 50 100 150 0 150 150 100 0 100 100 100 5 Chapter 15 0 15-21 MRP - 11 Planned Order Report ITEM PERIOD 1 Clipboard Lapdesk Pressboard 50 100 2 3 4 100 100 50 100 100 150 5 Lot Sizing in MRP Systems • Lot-for-lot ordering policy • Fixed-size lot ordering policy • Minimum order quantities • Maximum order quantities • Multiple order quantities • Economic order quantity • Periodic order quantity Dr. Loomba Class Notes Chapter 15 15-22 Advanced Lot Sizing Rules: L4L Total cost of L4L = (4 X $60) + (0 X $1) = $240 Advanced Lot Sizing Rules: EOQ EO Q  2(30)(60  60 1 minimum order quantity Total cost of EOQ = (2 X $60) + [(10 + 50 + 40) X $1)] = $220 Dr. Loomba Class Notes Chapter 15 15-23 Advanced Lot Sizing Rules: POQ POQ  Q / d  60 / 30  2 periods worth of requirements Total cost of POQ = (2 X $60) + [(20 + 40) X $1] = $180 Planned Order Report Item On hand On order Allocated #2740 100 200 50 Date Lead time Lot size Safety stock DATE ORDER NO. GROSS REQS. 9-26 9-30 10-01 10-08 10-10 10-15 10-23 10-27 AL 4416 AL 4174 GR 6470 SR 7542 CO 4471 GR 6471 GR 6471 GR 6473 25 25 50 Key: AL = allocated CO = customer order PO = purchase order Dr. Loomba SCHEDULED RECEIPTS 200 75 50 25 50 PROJECTED ON HAND 50 25 0 - 50 150 75 25 0 - 50 9 - 25 - 05 2 weeks 200 50 ACTION Expedite SR 10-01 Release PO 10-13 WO = work order SR = scheduled receipt GR = gross requirement Class Notes Chapter 15 15-24 MRP Action Report Current date 9-25-08 ITEM DATE #2740 #3616 #2412 #3427 #2516 #2740 #3666 10 08 10-08 10-09 10-10 10-15 10-20 10-27 10-31 ORDER NO. QTY. 7542 200 7648 100 200 50 ACTION Expedite Move forward Move forward Move backward De-expedite Release Release SR PO PO PO SR PO WO 10 01 10-01 10-07 10-05 10-25 10-30 10-13 10-24 Capacity Requirements Planning (CRP) • Creates a load profile • Identifies under under-loads loads and over over-loads loads • Inputs • Planned order releases • Routing file • Open orders file Dr. Loomba Class Notes Chapter 15 15-25 CRP MRP planned order releases Routing file Capacity requirements planning Open orders file Load profile for each process Calculating Capacity • Maximum capability to produce • Rated Capacity • Theoretical output that could be attained if a process were operating at full speed without interruption, exceptions, or downtime • Effective Capacity • Takes into account the efficiency with which a particular product or customer can be processed and the utilization of the scheduled hours or work Effective Daily Capacity = (no. of machines or workers) x (hours per shift) x (no. of shifts) x (utilization) x ( efficiency) Dr. Loomba Class Notes Chapter 15 15-26 Calculating Capacity • Utilization • Percent of available time spent working • Efficiency • How well a machine or worker performs compared to a standard output level • Load • Standard hours of work assigned to a facility • Load Percent • Ratio of load to capacity load Load Percent = x 100% capacity Load Profiles • Graphical comparison of load versus capacity • Leveling underloaded conditions: • Acquire more work • Pull work ahead that is scheduled for later time periods • Reduce normal capacity • Load leveling • Process of balancing underloads and overloads Dr. Loomba Class Notes Chapter 15 15-27 Reducing Over-load Conditions • • • • • • • • Eliminate unnecessary requirements Reroute jobs to alternative machines, workers, or work centers Split lots between two or more machines Increase normal capacity Subcontract Increase efficiency of the operation Push work back to later time periods Revise master schedule Copy Courier • Two high-speed copiers that can be operated by one • • • • • • • operator. 2 shifts p per day y 8 hours/shift , 5 days/week. No breaks during the day 30 minutes for lunch or dinner Machine service time = 30 minutes at the beginning of each shift Machine efficiency = 90%. Capacity • 2 copiers * 2 shifts * 8 hrs/day * 7/8 utilization * .90 efficiency = 1512 minutes/day Dr. Loomba Class Notes Chapter 15 15-28 Copy Courier Job 10 20 30 40 50 No. of Copies 500 1000 5000 4500 2000 000 Setup Time (min) 5.2 10.6 3.4 11.2 15.3 53 Run Time (min/unit) 0.08 0.10 0.12 0.14 0.10 0 0 Load Calculations Job 10 20 30 40 50 Dr. Loomba Setup + Run x No. Copies 5 2 + (500 X 0 5.2 0.08) 08) 10.6 + (1000 X 0.10) 3.4 + (5000 X 0.12) 11.2 + (4500 X 0.14) 15.3 + (2000 X 0.10) Class Notes Job Time = 45 45.20 20 = 110.60 = 603.40 = 641.20 = 215.30 1,615.70 , min Chapter 15 15-29 Loading Capacity 2 copiers * 2 shifts * 8 hrs/day * 7/8 utilization * .90 efficiency = 1512 minutes/day Load percent = 1615.70/1512 = 1.068 X 100% = 106.8% Overloaded by 6.8%. Extends working day by approximately 36 minutes Load percent = 99%. Increase efficiency to 97%. Hours of capacity y Initial Load Profile 120 – 110 – 100 – 90 – 80 – 70 – 60 – 50 – 40 – 30 – 20 – 10 – 0– Normal capacity 1 2 3 4 5 6 Time (weeks) Dr. Loomba Class Notes Chapter 15 15-30 Hours of capacity y Adjusted Load Profile 120 – 110 – 100 – 90 – 80 – 70 – 60 – 50 – 40 – 30 – 20 – 10 – 0– Pull ahead Overtime 1 Work an extra shift Push back 3 4 2 Push back Normal capacity 5 6 Time (weeks) Relaxing MRP Assumptions • Material is not always the most constraining resource • Lead times can vary • Not every transaction needs to be recorded • Shop floor may require a more sophisticated scheduling system • Scheduling g in advance may y not be appropriate pp p for on-demand production. Dr. Loomba Class Notes Chapter 15 15-31 Enterprise Resource Planning (ERP) • Software that organizes and manages a company’s business processes by • sharing h i iinformation f ti across ffunctional ti l areas • integrating business processes • facilitating customer interaction • providing benefit to global companies Organizational Data Flows Dr. Loomba Class Notes Chapter 15 15-32 ERP’s Central Database Selected Enterprise Software Vendors Dr. Loomba Class Notes Chapter 15 15-33 ERP Implementation • Analyze business processes • Choose modules to implement • Which processes have the biggest impact on customer relations? • Which process would benefit the most from integration? • Which processes should be standardized? • Align level of sophistication • Finalize delivery and access • Link with external partners Customer Relationship Management (CRM) • Software that • Plans and executes business processes • Involves customer interaction • Changes focus from managing products to managing customers • Analyzes point-of-sale data for patterns used to predict future behavior Dr. Loomba Class Notes Chapter 15 15-34 Supply Chain Management • Software that plans and executes business processes related to supply chains • Includes • Supply chain planning • Supply chain execution • Supplier relationship management • Distinctions between ERP and SCM are becoming i increasingly i l bl blurred d Product Lifecycle Management (PLM) • Software that • Incorporates new product design and development and product life cycle y management g • Integrates customers and suppliers in the design process though the entire product life cycle Dr. Loomba Class Notes Chapter 15 15-35 ERP and Software Systems Connectivity • Application programming interfaces (APIs) • give other programs well-defined ways of speaking to them • Enterprise Application Integration (EAI) solutions • EDI is being replaced by XML, business language of Internet • Service-oriented S i i t d architecture hit t (SOA) • collection of “services” that communicate with each other within software or between software Dr. Loomba Class Notes Chapter 15 15-36 CHAPTER 16 Lean Systems Lecture Outline • Basic Elements of Lean Production • Benefits of Lean Production • Implementing Lean Production • Lean Services • Leaning the Supply Chain • Lean Six Sigma • Lean and the Environment • Value Stream Mapping Dr. Loomba Class Notes Chapter 16 16-1 Lean Production • Lean system implemented through just-in-time (JIT) philosophy • JIT is characteristic of lean prod production ction systems s stems • “JIT” and “Lean Production” are used interchangeably • Just-in-time (JIT) • Repetitive production system in which processing and movement of materials and goods occur just as they are needed, usually in small batches • Doing more with less inventory, fewer workers, less space • Smoothing the flow of material to arrive just as it is needed • JIT operates with very little “fat” • Muda • waste, anything other than that which adds value to product or service Waste in Operations Dr. Loomba Class Notes Chapter 16 16-2 Waste in Operations The Pillars of JIT Zero non-value added activities (muda) Zero defects, zero breakdowns, zero inventory, zero set-up Production flow synchronized with demand (JIT) One-unit-at-a-time flow Mixed model production (heijunka or 平準化 ) Piece-by-piece transfer (ikko-nagashi or 一箇流し) Match production demand based on Takt time Pull instead of push Supermarket / Kanban Make-to-order Quality methods to reduce defects Fool-proofing (poka-yoke) and visual feed-back Go and see (Genchi Genbutsu or 現地現物) Detect-stop-alert (Jidoka or 自働化) Defects at machines (original Jidoka) Defects in assembly (Andon or 行灯 cord) Build-in-quality (tsukurikomi or 作りこみ) Reduce inventory to expose defects Flexibility Standardization of work Worker involvement Dr. Loomba Class Notes Adjustment of capacity to meet takt-time Multi-task assignment (takotei-mochi or 多工程持ち) Reduction of Variability Quartile Analysis Standard operating procedures Quality circles (Kaizen or 改善) Fishbone diagrams (Ishikawa) Skill development / X-training Chapter 16 16-3 Lean Production • Goals: • Make system flexible • Reserve capacity for important customers • Eliminate disruptions • Minimize inventory • Eliminate waste (all but value-added activities) • Reduce space requirements i t • Reduce the number of job classes • Make jobs more challenging • Develop close supplier ties and educate them • Characteristics • Pull method of materials flow • Consistently high quality • Small lot sizes • Uniform workstation loads • Flexible work force and processes to help clear bottlenecks • Stable demand schedule • Line flow strategy • Automated production via Autonomation • Preventive maintenance • Kanban production control system JIT and Quality Principles Dr. Loomba Class Notes Chapter 16 16-4 Basic Elements Flexible resources Cellular layouts Pull system y Kanbans Small lots Quick setups Uniform production levels Quality at the source Total productive maintenance Supplier networks 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Flexible Resources (Takotei-mochi or 多工程持ち) • Cross-train workers to help clear bottlenecks • Multifunctional workers perform more than one job • General-purpose General purpose machines perform several basic functions • Use preventive maintenance to reduce breakdowns • Reserve capacity for important customers • Reduce downtime by reducing changeover time • Cycle time • time required for the worker to complete one pass through the operations assigned • Takt time • paces production to customer demand • producing faster than takt time results in a buildup of inventory • Cycle time is adjusted to match takt time by changing worker paths Dr. Loomba Class Notes Chapter 16 16-5 Standard Operating Routine for a Worker Cellular Layouts • Manufacturing cells comprised of dissimilar machines brought together to manufacture a family of parts • Cells With Worker Routes: Dr. Loomba Class Notes Chapter 16 16-6 Worker Routes Lengthen as Volume Decreases Pull System • System for moving work where a workstation pulls output from the preceding station as eeded needed. • Reversal of traditional push system where material is pushed according to a schedule • Forces cooperation • Prevent over and underproduction • While push systems rely on a predetermined schedule pull systems rely on customer schedule, requests Dr. Loomba Class Notes Chapter 16 16-7 Kanbans • Kanban is the Japanese word for card • Card which indicates standard quantity of production • Paperless production control system • Derived from two two-bin bin inventory system • Maintain discipline of pull production • Authorize production and movement of goods • Authority to pull, or produce comes from a downstream process. • Types of kanbans: • Production kanban • authorizes production of goods • Withdrawal kanban • authorizes movement of goods • Kanban square • a marked area designated to hold items • Signal g kanban • a triangular kanban used to signal production at the previous workstation • Material kanban • used to order material in advance of a process • Supplier kanban • rotates between factory and suppliers Sample Kanban Dr. Loomba Class Notes Chapter 16 16-8 Origin of Kanban a) Two-bin inventory system b) Kanban inventory system Bin 1 Kanban Bin 2 Reorder card Q-R R R Q = order quantity R = reorder point - demand during lead time Kanban Signals Finished goods Kanban Customer order Work cell Ship Raw Material Supplier Kanban Kanban Purchased Parts Supplier Dr. Loomba Final assembly Kanban Kanban Class Notes Kanban Sub-Sub assembly Chapter 16 16-9 Kanban Production Control Systems Once the Production kanban is received, the machine Center produces a unit to replace the one taken by the Assembly Line people in the first place Machine Center This puts the system back were it was before the item was pulled Withdrawal kanban Storage Part A Storage Part A Assembly Line Production kanban Material Flow The process begins by the Assembly Line people pulling Part A from Storage Card (signal) Flow Single-Card Kanban System • • • • • • Dr. Loomba Each container must have a kanban card Assembly always withdraws from fabrication (pull system) Containers cannot be moved without a kanban Containers should contain the same number of parts Only good parts are passed along Production should not exceed authorization Class Notes KANBAN Part Number: 1234567Z Location: Aisle 5 Bin 47 Lot Quantity: 6 S Supplier: li WS 83 Customer: WS 116 Chapter 16 16-10 Dual Kanban System Other Kanbans Dr. Loomba Class Notes Chapter 16 16-11 More Kanban • When the producer and user are not in visual contact, a card can be used • When the producer and user are in visual contact contact, a light or flag or empty spot on the floor may be adequate • Since several components may be required, several different kanban techniques may be employed • Usually each card controls a specific quantity or parts • Multiple card systems may be used if there are several components or different lot sizes • Kanban cards provide a direct control and limit on the amount of work-in-process work in process between cells • In an MRP system, the schedule can be thought of as a build authorization and the kanban a type of pull system that initiates actual production • If there is an immediate storage area, a two-card system can be used with one card circulating between the user and storage area and the other between the storage area and the producer Determining Number of Kanbans • Setting up a kanban system requires determining the number of kanbans cards (or containers) needed • Each container represents the minimum production lot size • An accurate estimate of the lead time required to produce a container is key to determining how many kanbans are required average demand during lead time + safety stock container size No. of Kanbans = N = where N d L S C Dr. Loomba dL + S C = number of kanbans or containers = average demand over some time period = lead time to replenish an order = safety stock = container size Class Notes Chapter 16 16-12 Determining Number of Kanbans d L S C = 150 bottles per hour = 30 minutes = 0.5 hours = 0.10(150 0 10(150 x 0.5) 0 5) = 77.55 = 25 bottles (150 x 0.5) + 7.5 dL + S = 25 C 75 + 7.5 = = 3.3 kanbans or containers 25 N= Round up to 4 (to allow some slack) or down to 3 (to force improvement) Operational Benefits of Kanbans • Problems are immediately evident • Allow only y limited amount of faultyy or delayed y material • Puts downward pressure on bad aspects of inventory • Standardized containers reduce weight, disposal costs, wasted space, and labor • Reduced p paperwork p and simpler p p planning g systems Dr. Loomba Class Notes Chapter 16 16-13 Small Lots • Small-batch production is an important approach for matching production rate to demand rate. • Producing in more frequent, smaller batches drives the average inventory level down. • But it also increases the number of times equipment must be changed over, which can cut into available capacity. • Small-batch production becomes economical only when changeover times can be reduced sufficiently. • Require R i less l space and d capital it l iinvestment t t • Move processes closer together • Make quality problems easier to detect • Make processes more dependent on each other Inventory Hides Problems Dr. Loomba Class Notes Chapter 16 16-14 Less Inventory Exposes Problems Components of Lead Time • Processing time • Reduce number of items or improve efficiency • Move M ti time • Reduce distances, simplify movements, standardize routings • Waiting time • Better scheduling, sufficient capacity • Setup p time • Generally the biggest bottleneck Dr. Loomba Class Notes Chapter 16 16-15 Quick Setups • High setup costs encourage large lot sizes • Reducing setup costs reduces lot size and reduces average inventory • Setup time can be reduced through preparation prior to shutdown and changeover • Internal setup • SMED Principles • Separate internal setup p from external setup • Convert internal setup to external setup • Streamline all aspects of setup • Perform setup activities in parallel or eliminate them y entirely • Can be performed only when a process is stopped • External setup • Can be performed in advance Reduce Setup Times Initial Setup Time Step 1 Separate setup into preparation and actual setup setup, doing as much as possible while the machine/process is operating (save 30 minutes) Move material closer and improve material handling (save 20 minutes) Step 2 St 3 Step Step 5 Use oneone-touch system to eliminate adjustments (save 10 minutes) Training operators and standardizing work procedures (save 2 minutes) Repeat cycle until subminute setup is achieved Class Notes 60 min — 45 min — Standardize and improve tooling (save 15 minutes) Step 4 Dr. Loomba 90 min — Chapter 16 25 min — 15 min — 13 min — — 16-16 Techniques for Reducing Setup Time Uniform Production Levels • Result from smoothing production requirements on final assembly line • Kanban systems can handle +/- 10% demand changes • Reduce variability with more accurate forecasts • Smooth demand across planning horizon • Mixed-model assembly steadies component production Dr. Loomba Class Notes Chapter 16 16-17 Mixed-Model Sequencing Quality at the Source • Visual control • makes problems visible • Jidoka • authority to stop the production line • Poka-yokes • prevent defects from occurring • Andons • call lights that signal quality problems • Kaizen • a system of continuous improvement; “change for the good of all” all Dr. Loomba Class Notes • Under-capacity scheduling • leaves time for planning, problem solving, and maintenance Chapter 16 16-18 Examples of Visual Control 5 Whys • A key part in an effective Kaizen is finding the root cause of a problem and eliminating it • A practice of asking “why?” why? repeatedly until the underlying cause is identified (usually requiring five questions) • Simple, yet powerful technique for finding the root cause of a problem Dr. Loomba Class Notes Chapter 16 16-19 Total Productive Maintenance (TPM) • Breakdown maintenance • Repairs to make failed machine operational • Preventive maintenance • System of periodic inspection and maintenance to keep machines operating • TPM combines preventive maintenance and total quality concepts • TPM Requirements • Design products that can be easily produced on existing machines • Design machines for easier operation, changeover, maintenance • Train and retrain workers to operate machines • Purchase machines that maximize productive potential • Design preventive maintenance plan spanning life of machine 5S Workplace Scan 5S Scan Eliminate or Correct Unneeded equipment, tools, furniture; unneeded items on walls, bulletins; items blocking aisles or stacked in corners; unneeded inventory, supplies, parts; safety hazards Seiri (整理) (sort) Keep only what you need Seiton (整頓) (set in order) A place for everything and everything in its place Items not in their correct places; correct places not obvious; aisles, workstations, & equipment locations not indicated; items not put away immediately after use Seisou (清掃) (shine) Cleaning, and looking for ways to keep clean and organized Floors, walls, stairs, equipment, & surfaces not clean; cleaning materials not easily accessible; lines, labels, signs broken or unclean; other cleaning problems Maintaining and monitoring the first three categories Necessary information not visible; standards not known; checklists missing; quantities and limits not easily recognizable; items can’t be located within 30 seconds Sticking to the rules Number of workers without 5S training; number of daily 5S inspections not performed; number of personal items not stored; number of times job aids not available or up-todate Seiketsu (清潔) (standardize) Shisuke (躾) (sustain) Dr. Loomba Goal Class Notes Chapter 16 16-20 Employee Empowerment • Empowered employees bring their knowledge and involvement to daily operations • Some traditional staff tasks can move to empowered employees • Training, cross-training, and fewer job classifications can mean enriched jobs • Companies gain from increased commitment from employees Supplier Networks • Few suppliers • Suppliers located in close proximity to the customer • Repeat business with same suppliers • Mixed loads and frequent deliveries • Precise delivery schedules • Standardized, sequenced delivery • Long Long-term term supplier contracts • Synchronized production • Supplier certification Dr. Loomba Class Notes Chapter 16 16-21 JIT Partnerships • JIT partnerships exist when purchasers work with • • • • • suppliers (in a supplier network) to remove waste and drive down costs Support suppliers so they become or remain price competitive Competitive bidding mostly limited to new purchases Buyer resists vertical integration and subsequent wipeout of supplier business Suppliers encouraged to extend JIT buying to their suppliers Successful JIT partnerships require: • Elimination of unnecessary activities • Elimination of in-plant inventory • Elimination of in-transit inventory • Elimination of poor suppliers Benefits of Lean Production • • • • • • • • • • • • • • • Dr. Loomba Reduced inventory Improved quality Lower costs Reduced space requirements Increased equipment utilization Shorter lead time Increased productivity Greater flexibility Better relations with suppliers Simplified scheduling and control activities Valid priorities for production scheduling Increased capacity Better use of human resources Work force participation More product variety Class Notes Chapter 16 16-22 Lean Production Aspects • Implementing Lean Production • Use lean production to finely tune an operating system • Somewhat different in USA than Japan • Lean production is still evolving • Lean production is not for everyone • Lean Production Problems • Highly variable demand • Large variety of low-volume products • Custom engineered products • Mass production parts • Unexpected changes in demand or supply Lean Services • Basic elements of lean production apply equally to services • Most prevalent applications • lean retailing • lean banking • lean health care Dr. Loomba Class Notes Chapter 16 16-23 Leaning the Supply Chain • Several approaches • “pulling” a smooth flow of material through a series of suppliers to • • • • • support frequent replenishment orders and changes in customer demand Firms need to share information and coordinate demand forecasts, production planning, and inventory replenishment with suppliers and supplier’s suppliers throughout supply chain Pull a smooth flow of material through the system Build a highly collaborative business environment Adopt the technology to support your system Consider “near shoring” Lean Six Sigma and VSM • Lean and Six Sigma are natural partners for process improvement • Lean • Eliminates waste and creates flow • More continuous improvement • Six Sigma • Reduces variability and enhances process capabilities • Requires breakthrough improvements • Value Stream Mapping (VSM) • A tool t l for f analyzing l i process fl flows and d eliminating li i ti waste t • Specialized icons related to • lean production • material and information flows • “aha” Kaizen bursts Dr. Loomba Class Notes Chapter 16 16-24 VSM Shapes VSM for Milling & Welding Dr. Loomba Class Notes Chapter 16 16-25 VSM for Emergency Room Dr. Loomba Class Notes Chapter 16 16-26 CHAPTER 17 Scheduling Lecture Outline • Objectives in Scheduling • Loading • Sequencing • Monitoring • Advanced Planning and Scheduling Systems • Theory of Constraints • Employee Scheduling Dr. Loomba Class Notes Chapter 17 17-1 Scheduling • What is Scheduling? • Last stage of planning before production occurs • Specifies when labor, equipment, and facilities are needed to produce a product or provide a service • Strategic Importance of Short-Term Scheduling • Effective and efficient scheduling can be a competitive g advantage • Faster movement of goods through a facility means better use of assets and lower costs • Additional capacity resulting from faster throughput improves customer service through faster delivery • Good schedules result in more reliable deliveries Scheduled Operations • Scheduling deals with the timing of operations • The task is the allocation and prioritization of demand • Significant issues are • The type of scheduling, forward or backward • The criteria for priorities • Examples: • Process Industry • Linear programming • EOQ with non-instantaneous replenishment • Mass Production • Assembly line balancing • Project • Project -scheduling techniques (PERT, CPM) Dr. Loomba Class Notes • Batch Production • Aggregate planning • Master scheduling • Material requirements planning (MRP) • Capacity requirements planning (CRP) Chapter 17 17-2 Objectives in Scheduling • Meet customer due dates • Minimize overtime • Minimize job lateness • Maximize machine or labor • Minimize Mi i i response ti time utilization • Minimize idle time • Minimize work-in-process inventory • Minimize completion time • Minimize time in the system Forward and Backward Scheduling • Forward scheduling starts as soon as • • • • • Dr. Loomba the requirements are known Produces a feasible schedule though it may not meet due dates Frequently results in excessive work-inprocess inventory Backward scheduling begins with the due date and schedules the final operation ti first fi t Schedule is produced by working backwards though the processes Resources may not be available to accomplish the schedule Class Notes Now Due Date Now Due Date Chapter 17 17-3 Scheduling Process-Focused Facilities 1. Schedule incoming orders without violating capacity constraints 2. Check availability of tools and materials before releasing an order 3. Establish due dates for each job and check progress 4. Check work in progress 5. Provide feedback 6. Provide work efficiency statistics and monitor times Planning Files 1. 1 2. 3. An item master file contains information about each component A routing file indicates each component’s flow through the shop A work-center master file contains information about the work center Control Files Track the actual progress made against the plan Shop Floor Control (SFC) • Schedule and monitor day-to-day job shop production • Also called production control and production activity control (PAC) • Performed by production control department • Loading - check availability of material, machines, and labor • Sequencing - release work orders to shop and issue dispatch lists for individual machines • Monitoring - maintain progress reports on each job until it is complete p Dr. Loomba Class Notes Chapter 17 17-4 Loading • Loading • Process of assigning g g work to limited resources • Perform work with most efficient resources • Use assignment method of linear programming to determine allocation • Loading Jobs • Assign jobs so that costs, idle time, or completion time are minimized • Two forms of loading • Capacity C it oriented i t d • Assigning specific jobs to work centers • Input-Output Control • Identifies overloading and underloading conditions • Prompts managerial action to resolve scheduling problems • Can be maintained using ConWIP cards that control the scheduling of batches Assignment Method 1. Perform row reductions • subtract minimum value in each row from all other row values 2. Perform column reductions • subtract minimum value in each column from all other column values 3. Cross out all zeros in matrix • use minimum number of horizontal and vertical lines 4. If number of lines equals number of rows in matrix, then optimum solution has been found. Make assignments where zeros appear ⎯ ⎯ ⎯ ⎯ Else modify matrix: subtract minimum uncrossed value from all uncrossed values add it to all cells where two lines intersect other values in matrix remain unchanged 5 Repeat steps 3 and 4 until 5. optimum solution is reached Dr. Loomba Class Notes Chapter 17 17-5 Assignment Method Initial Matrix Bryan Kari Noah Chris Row reduction 5 4 2 5 0 0 1 1 1 2 0 0 5 4 1 6 1 10 6 7 9 PROJECT 3 6 4 5 4 2 5 2 6 5 4 10 6 6 10 Column reduction Cover all zeros 3 2 0 3 3 2 0 3 0 0 1 1 1 2 0 0 4 3 0 5 0 0 1 1 1 2 0 0 4 3 0 5 Number lines  number of rows so modify matrix Assignment Method Modify matrix 1 0 1 0 0 2 0 3 2 1 1 0 2 1 0 3 Cover all zeros 1 0 1 2 0 0 2 1 0 3 2 0 1 1 0 3 Number of lines = number of rows so at optimal solution PROJECT PROJECT 1 2 3 4 1 2 3 4 Bryan y 10 5 6 10 Bryan y 1 0 1 2 Kari 6 2 4 6 Kari 0 0 2 1 Noah 7 6 5 6 Noah 0 3 2 0 Chris 9 5 4 10 Chris 1 1 0 3 Project Cost = (5 + 6 + 4 + 6) X $100 = $2,100 Dr. Loomba Class Notes Chapter 17 17-6 Sequencing • Sequencing: Determine the order in which jobs should be performed at work centers • Workstation: An area where one person works, usually with special equipment, on a specialized job. • Priority rules: Simple heuristics Everything is used to select the order in #1 Priority which jobs will be processed. processed • Job time: Time needed for setup and processing of a job. Sequencing Jobs Prioritize jobs assigned to a resource, to dispatch or sequence jobs • If no order specified use first-come first-served (FCFS) • Other Sequencing Rules • • FCFS - first-come, first-served • LCFS - last come, first served • DDATE - earliest due date • CUSTPR - highest customer priority • SETUP - similar required setups • SLACK - smallest slack • CR - smallest critical ratio • SPT - shortest processing time • LPT - longest processing time Dr. Loomba Class Notes Chapter 17 17-7 Critical Ratio (CR)  An index number found by dividing the time remaining until the due date by the work time remaining on the job  Jobs with low critical ratios are scheduled ahead of jobs with higher critical ratios  Performs well on average job lateness criteria CR = Time remaining Due date - Today’s date = Workdays remaining Work (lead) time remaining Minimum Slack & Smallest Critical Ratio SLACK considers both work and time remaining • SLACK = (due date – today’s date) – (processing time) CR is an index number found by dividing the time remaining until the due date by the work time remaining on the job • • CR recalculates sequence as processing continues and arranges information in ratio form • Jobs with low critical ratios are scheduled ahead of jobs with higher critical ratios • Performs well on average job lateness criteria CR = time remaining work remaining = due date - today’s date remaining processing time If CR > 1, job ahead of schedule If CR < 1, job behind schedule If CR = 1, job on schedule Dr. Loomba Class Notes Chapter 17 17-8 Sequencing Jobs Through One Process • Flow time (completion time) • Time for a job to flow through system • Makespan • Time for a group of jobs to be completed • Tardiness • Difference between a late job’s due date and its completion time JOB PROCESSING TIME A 10 B C D E DUE DATE 5 10 2 8 6 15 5 12 8 Simple Sequencing Rules: FCFS FCFS SEQUENCE Q START TIME A B C D E 0 5 15 17 25 Dr. Loomba PROCESSING COMPLETION DUE TIME TIME DATE 5 10 2 8 6 Total Average Class Notes 5 15 17 25 31 93 93/5 = 18.60 10 15 5 12 8 Chapter 17 TARDINESS 0 0 12 13 23 48 48/5 = 9.6 17-9 Simple Sequencing Rules: DDATE DDATE SEQUENCE Q START TIME C E A D B 0 2 8 13 21 PROCESSING COMPLETION DUE TIME TIME DATE TARDINESS 2 6 5 8 10 Total Average 0 0 3 9 16 28 28/5 = 5.6 2 8 13 21 31 75 75/5 = 15.00 Simple Sequencing Rules: SLACK SLACK SEQUENCE START TIME E C D A B 0 6 8 16 21 Dr. Loomba 5 8 10 12 15 A(10-0) – 5 = 5 B(15-0) – 10 = 5 C(5-0) – 2 = 3 D(12-0) – 8 = 4 E(8-0) E(8 0) – 6 = 2 PROCESSING COMPLETION DUE TIME TIME DATE TARDINESS 6 2 8 5 10 Total Average 0 3 4 11 16 34 34/5 = 6.8 Class Notes 6 8 16 21 31 82 82/5 = 16.40 8 5 12 10 15 Chapter 17 17-10 Simple Sequencing Rules: SPT SPT SEQUENCE START TIME C A E D B 0 2 7 13 21 PROCESSING COMPLETION DUE TIME TIME DATE TARDINESS 2 5 6 8 10 Total Average 0 0 5 9 16 30 30/5 = 6 2 7 13 21 31 74 74/5 = 14.80 5 10 8 12 15 Simple Sequencing Rules: Summary AVERAGE RULE COMPLETION TIME FCFS DDATE SLACK SPT AVERAGE TARDINESS 18.60 15.00 16.40 14.80 9.6 5.6 6.8 6.0 NO. OF JOBS TARDY 3 3 4 3 MAXIMUM TARDINESS 23 16 16 16 Best values Dr. Loomba Class Notes Chapter 17 17-11 Guidelines for Selecting a Sequencing Rule No one sequencing rule excels on all criteria Comparison of Sequencing Rules • • FCFS does not do especially well (or poorly) on any criteria but is perceived as fair by customers • • Use FCFS when operating at low-capacity levels SPT most useful when shop is highly congested • • • • SPT does well on minimizing flow time and number of jobs in the system But SPT moves long jobs to the end which may result in dissatisfied customers Do not use SPT to sequence jobs that have to be assembled with other jobs at a later date Use LPT if subcontracting is anticipated EDD minimizes lateness Use SLACK for periods of normal activity Use DDATE when only small tardiness values can be tolerated • • • • Sequencing N Jobs Through Two Serial Process: Johnson’s Rule • • Works with two or more jobs that pass through the same two machines or work centers Minimizes total production time and idle time Johnson’s Rule 1. List time required to process each job at each process. Set up a one-dimensional matrix to represent desired sequence with # of slots equal to # of jobs. 2. Select smallest processing time at either process. If that time is on process 1, put the job as near to beginning of sequence as possible. 3. If smallest time occurs on process 2, put the job as near to the end of the sequence as possible. 4. Remove job from list. 5. Repeat steps 2-4 until all slots in matrix are filled and all jobs are sequenced. Dr. Loomba Class Notes Chapter 17 17-12 Johnson’s Rule JOB PROCESS 1 PROCESS 2 A B C D E 6 11 7 9 5 8 6 3 7 10 A E B D C Johnson’s Rule E E A 5 A D D 11 B C B Process 1 (sanding) C 20 31 38 Idle time E 5 A 15 D 23 B 30 Process 2 (painting) C 37 41 Completion time = 41 Idle time = 5+1+1+3=10 Dr. Loomba Class Notes Chapter 17 17-13 Monitoring • Work package • Shop paperwork that travels with a job • Gantt G tt Chart Ch t • Shows both planned and completed activities against a time scale • Input/Output Control • Monitors the input and output from each work center Gantt Chart Job 32B Behind schedule Facility 3 Job 23C Ahead of schedule 2 Job 11C Job 12A On schedule 1 1 Key: 2 3 4 5 6 8 Today’s Date 9 10 11 12 Days Planned activity Completed activity Dr. Loomba Class Notes Chapter 17 17-14 Gantt Charts & Assignment Method • Gantt Chart • Load chart shows the loading and idle times of departments, machines, or facilities • Displays relative workloads over time • Schedule chart monitors jobs in process • All Gantt charts need to be updated frequently • Assignment Method • A special i l class l off lilinear programming i models d l th thatt assign tasks or jobs to resources • Objective is to minimize cost or time • Only one job (or worker) is assigned to one machine (or project) Input / Output Control PERIOD Planned input Actual input Deviation Planned output Actual output Deviation Backlog 30 Dr. Loomba 1 2 3 4 TOTAL 65 65 70 70 75 75 75 75 270 0 0 300 0 0 20 10 Class Notes 5 0 Chapter 17 17-15 Input / Output Control PERIOD Planned input Actual input Deviation Planned output Actual output Deviation Backlog 30 1 2 3 4 65 60 -5 75 75 -0 15 65 60 -5 75 75 -0 0 70 65 -5 75 65 -10 0 70 65 -5 75 65 -10 0 TOTAL 270 250 -20 300 280 -20 Advanced Planning and Scheduling Systems • Infinite scheduling - assumes infinite capacity • Loads without regard to capacity • Then levels the load and sequences jobs • Finite scheduling - assumes finite (limited) capacity • Sequences jobs as part of the loading decision • Resources are never loaded beyond capacity Dr. Loomba Class Notes Chapter 17 17-16 Advanced Planning and Scheduling Systems • Advanced planning and scheduling (APS) • Add Add-ins ins to ERP systems • Constraint-based programming (CBP) identifies a solution space and evaluates alternatives • Genetic algorithms based on natural selection properties of genetics • Manufacturing execution system (MES) monitors status usage status, usage, availability availability, quality Advanced Planning and Scheduling Dr. Loomba Class Notes Chapter 17 17-17 Theory of Constraints (TOC) • Throughput is the number of units processed through the facility and sold • TOC deals with the limits an organization faces in achieving its goals • Not all resources are used evenly • Finite scheduling approach • Concentrate on the” bottleneck” resource • Synchronize flow through the bottleneck • Use process and transfer batch sizes to move product through facility TOC Scheduling Procedure • Identify bottleneck • Schedule job first whose lead time to bottleneck is less than or equal to bottleneck processing time • Forward schedule bottleneck machine • Backward schedule other machines to sustain bottleneck schedule • Transfer in batch sizes smaller than process batch size • Specific Steps Identify the bottleneck constraints Develop pap plan for overcoming g the constraints Focus resources on accomplishing the plan Reduce the effects of constraints by off-loading work or increasing capacity 5. Once successful, return to step 1 and identify new constraints 1. 2. 3. 4. Dr. Loomba Class Notes Chapter 17 17-18 Bottleneck and Drum-Buffer-Rope • Bottleneck work centers are constraints that limit output • Common occurrence due to frequent changes • Management techniques include: • Increasing the capacity of the constraint • Cross-trained C t i d employees l and d maintenance i t • Alternative routings • Moving inspection and test • Scheduling throughput to match bottleneck capacity • Drum, Buffer, Rope • Drum • Bottleneck, beat of the system and provides the schedule or pace beating to set the pace of production for the rest of the system • Buffer • inventory necessary to keep constraints operating at capacity • placed in front of the bottleneck to ensure it is always kept busy • determines output or throughput of the system • Rope • Communication signal; tells processes upstream when they should begin production • provides the synchronization necessary to pull units through the system Synchronous Manufacturing A B C D B3 1 7 C3 2 15 D3 3 5 B2 2 3 C2 1 10 D2 2 8 B1 1 5 C1 3 2 D1 3 10 Key: Dr. Loomba Item i Operation j of item i performed Ij k l at machine center k takes l minutes to process i Class Notes Chapter 17 17-19 Synchronous Manufacturing Demand = 100 A’s Machine setup time = 60 minutes MACHINE 1 MACHINE 2 MACHINE 3 B1 B3 C2 Sum 5 7 10 22 B2 C3 D2 3 15 8 26* C1 D3 D1 2 5 10 17 * Bottleneck Synchronous Manufacturing Setup Machine 1 C2 Setup B1 2 B3 1002 1562 2322 Idle Setup Machine 2 C3 B2 12 1512 Machine 3 Setup C1 0 200 Dr. Loomba Setup D2 1872 2732 Setup D1 Idle 1260 Class Notes D3 1940 Completion time Chapter 17 2737 17-20 Employee Scheduling • Employee Scheduling • • • • • Labor is very flexible resource Scheduling workforce is complicated, repetitive task Assignment g method can be used Heuristics are commonly used Employee Scheduling Heuristic 1. 2. 3. 4. 5. Let N = no. of workers available Di = demand for workers on day i X = day working O = day off Assign the first N - D1 workers day 1 off. Assign the next N - D2 workers day 2 off. Continue in a similar manner until all days are have been scheduled If number of workdays for full time employee < 5, assign remaining workdays so consecutive days off are possible Assign any remaining work to part-time employees If consecutive days off are desired, consider switching schedules among days with the same demand requirements Employee Scheduling DAY OF WEEK MIN NO. OF WORKERS REQUIRED M T W TH F SA SU 3 3 4 3 4 5 3 Taylor Smith Simpson Allen Dickerson Dr. Loomba Class Notes Chapter 17 17-21 Employee Scheduling DAY OF WEEK MIN NO. OF WORKERS REQUIRED Taylor Smith Simpson Allen Dickerson M T W TH F SA SU 3 3 4 3 4 5 3 O O X X X X X O O X X X X X O O O X X X X X O X X X X X X X X X X O O Completed schedule satisfies requirements but has no consecutive days off Employee Scheduling DAY OF WEEK MIN NO. OF WORKERS REQUIRED Taylor Smith Simpson Allen Dickerson M T W TH F SA SU 3 3 4 3 4 5 3 O O X X X O O X X X X X O X X X X O O X X X X X O X X X X X X X X O O Revised schedule satisfies requirements with consecutive days off for most employees Dr. Loomba Class Notes Chapter 17 17-22 Automated Scheduling Systems • Staff Scheduling • Assign workers to standardize shift patterns • Schedule Bidding • Workers bid for certain shift positions or schedules • Schedule Optimization • Creates demand-driven forecast of labor needs • Assigns workers to variable schedules • Uses mathematical programming and artificial intelligence techniques Dr. Loomba Class Notes Chapter 17 17-23 Criteria Ratings Pts 5 pts 4 pts 2 pts Identifies and Summarizes issue at hand Identifies not only the basics of the issue, but recognizes nuances of the issue Identifies the main issue and subsidiary, embedded, or implicit aspects of the issue Does not identify and summarize the issue, is confused or identifies a different or inappropriate issue 5 pts Personal and other salient perspectives and positions 5 pts Addresses and analyzes salient perspectives from experience and information from outside sources. 4 pts Identifies, appropriately, one's own position and/or other salient perspectives on the issue 3 pts Address a single source or view of the argument and fails to clarify presented position relative to one's own and/or other salient perspective 2 pts Fails to address even a single source or view of the argument and fails to clarify presented position relative to one's own and/or other salient perspective 5 pts 5 pts Quality of evaluation and analysis Observes cause and effect and addresses existing or potential consequences. Clearly distinguishes between fact, opinion, and acknowledges value judgments 4 pts Examines the evidence and source of evidence, questions its accuracy, precision, relevance, and completeness 2 pts Merely repeats information provided, taking it as truth or denies evidence without adequate justification 5 pts 3 pts Conclusions, implications, and 5 pts Objectively reflects upon 4 pts Identifies and discusses conclusions, implications, and consequences Identifies and discusses conclusions, implications, and consequences but only superficially 2 pts Fails to identify conclusions, implications, and consequences of the issue 5 pts consequences own assertions
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JUST-IN-TIME MCDONALD’S STYLE

Just-in-time McDonalds Style
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JUST-IN-TIME MCDONALDS STYLE

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Question 1

The 'made for you' kitchen by McDonald's was designed to meet specific goals. The made
for you kitchen system utilizes the lean systems intended to improve food quality. The plan would
result in the processing and movement of materials required to make a customer order to take place
just as needed and in small batches. The made for you kitchen system employed by McDonald's
utilizes the Just- in time production. Its processing and movement of materials and orders occur
when needed, which is usually in small batches. The kitchen system possesses similar
characteristics with the lean system that was implemented through the Just-in-time philosophy.
Some of these characteristics include; they remove waste as well as consistently result in highquality production (FOX 13 Tampa Bay, 2014). Another goal of the made for you kitchen systems
is to permit menu objects to be quickly i...


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