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Managing Production and Supply Chains

Managing Production and Supply Chains. An introduction to the ProSim production management simulation. ProSim. A virtual company which manufactures & markets three products (X, Y, Z)

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Managing Production and Supply Chains

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  1. Managing Production and Supply Chains An introduction to the ProSim production management simulation

  2. ProSim A virtual company which manufactures & markets three products (X, Y, Z) Existing supply chain processes in place for key Marketing & Sales, Production Planning & Control, Purchasing & Payment You will manage the PP&C process Process redesign or supply chain restructuring are out of scope for now

  3. Products Bills of Materials Toy house w/car & doll Toy doll Toy car w/doll

  4. Process Layout

  5. Take a thinking break Throughput Inventory Operating Cost What is the goal … or The Goal? How is this measured? What do we need information-wise to make Goal oriented decisions? What analysis or information systems based tools might help with the details and mechanics?

  6. Structural Issue: Rough Cut Capacity Limit Visit ProSimPlanner Worksheet Where is the bottleneck? Maximum throughput? Assumptions regarding labor productivity, efficiency, and rejects

  7. Structural Issue: Make vs. Buy for Parts • Purchase cost? • Make cost: • Labor (labor productivity?) • Machine time (machine efficiency?) • Materials (reject rate?)

  8. Sales: Estimating Customer Demand Products are produced based on weekly schedules Products are shipped at the end of each ‘month’ (i.e., every 4th week at the end of weeks 4, 8, 12, …) Last year’s monthly demand data are available Current month sales order base forecasts are adjusted weekly

  9. Production Planning: What to produce week by week Master Production Scheduling (MPS) Materials Requirements Planning (MRP)

  10. Human Resources: Operator Hiring & Training For ‘simplicity’ we will only use workers 1 thru 9 this term; you can fire if you want but cannot hire (or re-hire).

  11. Purchasing: Order size for parts? Parts demand? Ordering & setup costs? Holding & carrying costs? Classic EOQ conclusion?

  12. Purchasing: Ordering materials • Materials demand? • Ordering & setup costs? • Holding & carrying costs? • Classic EOQ conclusion? (watch time units – week, month, year?) • Volume discounts? • Adjusted EOQ conclusion?

  13. Plant Management: Plant level decisions Quality control plan Facility maintenance plan

  14. Production Scheduling: Assigning operators, hours, machines, products & parts • True execution point – creating the weekly schedule • Communicate plant managers and purchasing decisions • Implement human resources recommendations • Convert production planners estimates to actions

  15. Where we go from here • It’s a deep looking pool but time to jump in and get started • Complete the reading and assessment • Look for in class lecture help

  16. Managing Production and Supply Chains End of presentation

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