Gms 805 Study Notes. Chapter 8

Topics: Project management, Lead time, Inventory Pages: 5 (995 words) Published: December 10, 2012
A framework for Production Activity Control
1)Production Activity Control (PAC) concerns the execution of material plans. [Back end] •Activities that fall partly or completely within the realm of Production Activity Control: Shop-floor Scheduling and Control (SFC)

Vendor scheduling and Follow-up
Order, Release and Purchasing ( procurement)
In purchasing, procurement is professional activity where info networks, relationships, terms and conditions are established with vendor companies outside of Pac.

2)MPC System Linkages:
If insufficient capacity is provided, no SFC will be able to decrease backlogs, improve delivery and improve output. But with over capacity, and SFC will work. Find the proper execution systems with vendors and suppliers. This can be difficult so just get results that properly hit MPS & customers •Formal systems for shop-floor control (SFC) are largely unnecessary under JIT

3)MRP & PAC functions
Revise due dates and quantities for schedules receipts so correct priorities are maintained. •Have control and follow up systems must keep each order lined up with its due date; despite moving dates overall MPC will be supported. •Helps with SFC and vendor follow systems to material and capacity planning. Feedback of:  Status info - where things are, notification of operational completions, count verifications, order close out and disposition and accounting data. Warning signals – flag inadequacies in materials and capacity plans

4)JIT effect on PAC:
Formal SFC is unnecessary under JIT; Shop order paperwork isn’t maintained. •Order release through kanbans or other pull system
Limited work-in-process inventories
Detailed scheduling is not needed – workers know the routine •No data collection or monitoring requirements–only raw material and finished goods inventories

5)The Company Environment
The primary PAC objective is managing material flows to meet MPC plans Firm objectives may pertain to efficient use of capacity, labor, tools, time, or materials •Under JIT the objective is material velocity

PAC objectives reflect the firm’s strategy and competitive position •PAC demonstrates firm’s goals and the constraints which it operates; a PAC system should be tailored to the particular firm’s needs.

Production Activity Control Techniques:
Concepts for PAC under batch manufacturing with an MRP system; deals with SF concepts, elements of lead time, set back charts and lead-time management. There are three approaches to SFC: •Gantt Charts: Provides graphic representation of the system; models for SFC systems •Priority Sequencing Rules: Selecting the order of job processing under MRP •Theory of Constraints Scheduling: Scheduling to minimize impact of bottleneck resources & sequence nonbottleneck work centers by a priority sequence rule. Basic Shop Floor Concepts

Routing and lead-time data are essential inputs
Routing specifies the operation, its duration, and the work center performing the work Lead times typically consist of four elements
•Run time
•Setup time
•Move time
•Queue time


Lead-Time Management
The four elements of lead time (run, setup, move, and queue) can be compressed with good PAC management •A basic principle of MPC systems is to substitute information for inventory •The knowledge of when an order will arrive at a work center replaces the need to WIP inventory feeding the work center

Gantt Charts
Gantt charts show a schedule
Each step listed separately
Relationship between steps portrayed visually


Priority Sequencing Rules
Determine which job to run next at a particular work center •When a job is near completion, the available jobs in the queue are evaluated •Common rules
Order slack–work on the job with the least total slack •Slack per operation–divide total slack by the number of remaining operations, then work on job...
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