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1、Production Planning Improvement,CONTENT Whats the Goal-2 Supply chain flow-3-6 Process flow-7 WIP Inventory-8-10 Station Lead time-1115 Summarize-16,AIM=Key Performance Index out-of-planning changeover times weeklyDefinition:changeover which incur suddenly Capacity Loading RateDefinition:capacity lo
2、ading rate=weekly output/Maximum Equ.capacity WIP/Inventory LevelDefinition:WIP/Inventory level=Inventory of work-in-process semi-FG/FG Production Cycle TimeDefinition:cycle time=the time from the first station input time to the last station output time,Production Planning Improvement,Information fl
3、ow,Supply Chain Optimization,Money flow,FGs Transfer,Consumer,Supplier,Manufacturing,Distribution,FGs Transfer,RM Transfer,Production Planning Improvement,Figure 1:supply chain flow,Materials Supply:Possibly design the product with common parts or materials to lower total-supply-chain cost;Build up
4、and maintain the partnership with the suppliers,and share the supply-chain information;Suppliers performance audit and hortation policy;Manufacture Process:Design routing：the process of the product can meet the demand for master production;Possibly design and manufacture common parts to simply the m
5、anufacture process；Make full use of equipment capacity,and shorten manufacture cycle time;Lower WIP inventory level to reduce inventory costCustomer Demand:Common design：the less difference and less customized spec;the best business model is to build-to-order;Build up the global logistics informatio
6、n system and share the supply-chain information with our customers;Enhance the forecast accuracy and stabilization by the improvement of forecast calculation method,Production Planning Improvement,Forecast,Sales,PC,PC,Sales,MC,MC,MPS,MRP,ATP,Allocation,MO,DPS,S/O,Production Planning Improvement,Figu
7、re 2:Production and Sale Process,Production Planning Improvement,Figure 3:Production and Sale Flow,Alumina,Limestone,RAW Mix Grinding,Firing,Cement Grinding,Pack,+,S1,S2,S3,S4,S5,UPH1,UPH2,UPH3,UPH4,Daily Capacity=Bottleneck station UPH*Work Hrs WIP=WIP1+WIP2+WIP3+WIP4 Bottleneck station=Minimum(UPH
8、1,UPH2,UPH3,UPH4)Line balance Rate=Sum(1/UPH1,1/UPH2,1/UPH3,1/UPH4)/Max(1/UPH)*4,Figure 4:process flow,Production Planning Improvement,WIP2,WIP1,WIP3,WIP4,Production Planning Improvement,WIP2,Station2,Station3,UPH1,UPH2,output,input,WIP2=output-input,Figure 5:WIP inventory between station2 and stati
9、on3,WIP Inventory is the inventory from the last station,which is the input of the next station.The ideal WIP inventory level shall meet two conditions:ensure the continuous production at the next station but WIP inventory level is the lowest.How many WIP inventory is reasonable?How to set up the in
10、ventory level?OK,WIP inventory level is the relationship closely with UPH at the last and next station.The ideal status is that those 2 UPH is equal.At this status the manufacture process is easily managed and the WIP inventory level is the lowest.,Production Planning Improvement,QTY,WIP,Q1,Q2,Q=,Fi
11、gure 6:WIP and UPH(based on continuous production),UPH1-UPH2,UPH1*UPH2,Slope=,UPH1*UPH2,UPH1-UPH2,WIP1,WIP2,WIP,Production Planning Improvement,We can make the conclusions from Figure 6 WIP and UPH and Figure 7 the bigger the slope is,the lower the required WIP inventory level is the smaller the slo
12、pe is,the higher the required WIP inventory level is the slope relates UPHs at the last and next stations,so the closer to each other UPHs is,the bigger the slope is.So we must take the solutions to reduce the capacity gap at the continuous stations and enhance the line balance rate,which will help
13、to reduce the WIP inventory level and enhance the flexibility ability.,Y=Slope,X=UPH1-UPH2,Figure 7:Slope and UPH(based on continuous production),Slope=,UPH1*UPH2,UPH1-UPH2,Production Planning Improvement,In actual manufacturing process,output pace in every station is different.in order to keep the
14、continuous flow production the lower inventory is necessary,and also when output pace at the next station is more than the one at the last station,the last station must start one period of time before the next station start.We define this period of time is“Station lead time”.Since process steps is l
15、inked to one another in continuous flow,we will get all stations“station lead time”throughout the processes.Those stations lead time will help to make the production plan,control inventory level between processes,shorten changeover time,enhance capacity loading rate,reduce the cost at manufacturing
16、processes,shorten the cycle time,and eliminate the waste.The shorter total-stations-lead-time is,the lower WIP inventory level is throughout the processes.So we get the better efficiency and productivity.Accompanying pages will lead us how to calculate the station lead time and how to find the bottl
17、e-neck station,which will help to get a good production plan and a good idea to improve the manufacturing processes.,Production Planning Improvement,S2,S3,S4,S5,UPH,=,=,=,Ideal model,S2,S3,S4,S5,UPH,push model,S2,S3,S4,S5,UPH,pull model,1,2,3,S,In those 3 models the choice order is from 1 to 3.but i
18、n the actual processes it is hard to ensure all processes have the equal output pace.So the pull model will be our better choice.The pull system can help to reduce the cost,shorter cycle time,and stabilize the processes.,Qty,Time,Q1,Q2,Q3,T1,T3,T2,UPH3,UPH2,UPH1,UPH1=Q3/T1UPH2=Q3/T2UPH3=Q3/T3UPH4=Q3
19、/T4,UPH4,T4,Figure 8:Output and Time(pull system),Production Planning Improvement,T0,Production Planning Improvement,From Figure 8 we can get all stations lead time throughout the processes.,The period of time output formula as Output=UPH*Production Time,S2,S3,S4,S5,T1,T2,T3,T4,0,0,T4,T3,T2,S2,S3,S4
20、,S5,Figure 9:Continuous Production Model,Production Planning Improvement,T1,Production Planning Improvement,COST DOWN-Inventory interest expense eliminate 10-50%-Reduce discount sales and scrap 40-50%-Enhance resource utility rate 30-40%Improve customer service level-Enhance delivery achieving rate 95-99.9%-Shorter delivery time 10-20%-Expedite the turnover of Money 40-60%Increase marketing coverage rate-Become successful partnership,The benefit of Production Planning Improvement,
