Managing Production and Supply Chains
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Transcript Managing Production and Supply Chains
An introduction to the ProSim
production management
simulation
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
Inventory
Throughput
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?
Operating Cost
What
Visit
ProSimPlanner Worksheet
Where is the bottleneck?
Maximum throughput?
Assumptions regarding labor
productivity, efficiency, and rejects
Purchase
cost?
Make cost:
• Labor (labor productivity?)
• Machine time (machine efficiency?)
• Materials (reject rate?)
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
Master
Production Scheduling (MPS)
Materials Requirements Planning (MRP)
For ‘simplicity’ we
will only use workers 1
thru 9 this term; you can fire if you want
but cannot hire (or re-hire).
Parts
demand?
Ordering & setup costs?
Holding & carrying costs?
Classic EOQ conclusion?
Materials
demand?
Ordering & setup costs?
Holding & carrying costs?
Classic EOQ conclusion? (watch time
units – week, month, year?)
Volume discounts?
Adjusted EOQ conclusion?
Quality
control plan
Facility maintenance plan
True
execution point – creating the
weekly schedule
Communicate plant managers and
purchasing decisions
Implement human resources
recommendations
Convert production planners estimates to
actions
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
End of presentation