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Production & Manufacturing - Coggle Diagram
Production & Manufacturing
Types of Manufacturing
Repetitive Manufacturing
Schedule the same products to produce at the fixed period of times without reference to a particular order
Production volume is stable > Mass-Volume Production or Manufacturing
Involves machine automation
Discrete Manufacturing
produce goods when there is an order.
Production measured in term of lot size
Products have a product structure or Bill of Materials
Go through a few work centres, and order of the work centres depend on the Routing
Process Manufacturing
Relies on creating formulas or recipes.
Different elements once become the end product; it will be difficult to be separated
Follow a proper sequence of the processes
Similar to Discrete manufacturing
Manufacturing
Making use of labour and machines to put different raw materials, semi-finished goods, parts and components together into a Finished Goods.
Importance of production planning
Determine the priority of the production when production needs to run
Capacity planning of the machines and workforce
Reduce unnecessary storage space
Increase the productivity
Cut down production cost
Preparation of the movement of the material
Aggerate Planning
Sales and Operations Planning
A process that integrate customer-oriented marketing plans, both for new and existing products and supply chain management
Make sure the demand can meet the company revenue targets
Create a supply plan to meet demand profitably
Reconcile your operating procedures with the company’s financial goals
Master Production Schedule
Record the demand for the completed items that have been scheduled to run over several periods
Translate the Sales Forecast and actual Customer Orders, Safety Stock Requirements, and internal orders into their plan.
Objectives
Reduce storage costs and to increase planning stability
Make legitimate delivery commitments to the customers, this is known as Available to Promise.
To meet the demand, company may need to adjust the Production output, workforce and inventories and estimated cost
Planner look into:
Capacity of the facilities in the manufacturing process
Sales forecasting from past sales performance
Number of working personnel available
Goals and target set by "C" level management
Disaggregate Planning
Purchase Planning
Purchaser must ensure:
Warehouse and manufacturing site has sufficient stock,
forecasting based on usage,
Determines the needs and continuously looking for potential sources of supply
The goal of the purchasing plan:
To consider the quality and values of the supplies that may translate into a better product and profit for the company
Capacity Requirement Planning
A short-term capacity planning tool
Looks into the scheduled receipts and your on-hand inventory quantities to decide the capacity requirements
Ensures we meet the current and future level of the production requirement at minimal wastage
Factors that affect CRP
Production facility
Type of technology used in production
Human factors
MRP
Considers the following:
Bills of Materials
Scheduled Receipts
On-hand inventory balances
Lead times
Converts the Master Production Schedule into a detailed schedule
Integration with SCM
Benefits
Predictive maintenance of machinery
Better control of spare parts and raw materials
Decrease the production downtime
Improve the delivery schedules
Increased levels of automation to support customer service
Supply Chain Management
Connects stakeholders across organisation and combines S&OP, demand and supply planning, and inventory optimisation
An efficient ERP solution coordinates and integrates SCM with:
Materials flows
Information
Financial flows