matthias mekschrat h_da ws 2012/13logistical applications and optimizationsslide 1 logistical...
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Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 1
Logistical applications and optimizationsLogistical applications and optimizations
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations slide 2
overview
Introduction
November 02 - definition of business processes
November 16 - overview of logistical business processes
December 07 - functionality of production processes
January 18 - special problems within the supply chain handling
December 21 - functionality of sales and distribution processes
November 23 - functionality of purchase and supply processes
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 3
Review on the last session
You have learned about vendor managed inventory as an example of purchase optimization
You have learned about the main functionality of purchase support processes 1. Marketplaces and e-procurement2. Vendor evaluation3. Supplier relationship management
You have developed a supply plan
You have learned about the main functionality of purchase execution processes 1. Purchase requirements2. Bidding3. Purchase order4. Delivery and payment
You have learned about the main parts of a material requirement planning1. Stock minus by forecast, sales orders or reservations2. Stock plus by production orders and purchase orders
You have developed an actual disposition list
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 4
About this lecture
All sessions are split into 2 blocks: from 08:30 to 10:00 and from 10:15 to 11:45Each session starts with a short review of the last lectures subjects
Next I will give you a short theoretical overview of the days subject
Each group will then present the results of their discussions
I will present theoretical explanations for the discussed subjects
Then I will show a example solution for a potential written test question
Finally I will give a summary of the key messages for this session
Next you probably will develop 3 different subjects in a brainstorming session in 3 groups
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations slide 5
About the written test
The written test will NOT be on Friday, February 8th 2013 from 8:30 to 10:00
but on Friday, February 15th 2013 from 8:30 to 10:00
On Friday, March 1st 2013 from 12:00 to 13:30
we will invite the best participants of the test to a Business Lunch with Dr. Straub
(Head of EVONIK Applications Services)
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations slide 6
overview
Introduction
November 02 - definition of business processes
November 16 - overview of logistical business processes
December 07 - functionality of production processes
January 18 - special problems within the supply chain handling
December 21 - functionality of sales and distribution processes
November 23 - functionality of purchase and supply processes
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 7
Functionality of production processes
Production planning
Production optimization
Short break
Part 1
Manufactoring execution
Part 2
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 8
Production planning
Production optimization
Short break
Part 1
Manufactoring execution
Part 2
Functionality of production processes
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 9
Functionality of production processes, Part 1
Production is the core process of any manufactoring company. Therefore a well design production IT process is a very high potential.
Problems and potentials
The coordination of production processes with other core logistical processes such as purchase, disposition, distribution and sales is essential for a lean supply chain organisation.
The „vertical integration“ provides the interaction of both production planning and production execution processes. The challenge and the aim is the fully IT covered „paperless production“
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 10
Functionality of production processes, Part 1
Understand the important inputs and outputs of each component
Understand the main functionality of production planning system
Learning targets
Understand the involved acting logical business units
Understand the interaction with other processes
Understand the main functionality of production optimization system
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 11
Plant CustomerStore TransportSupplier
Supply chain processes
Supply chain processes represent all main logistical activities for creation of value according to the business definition
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 12
SalesProduction
planning andscheduling
Shipment and distribution
Purchasing
Logistical crossover processesLogistical crossover processes
Business support processesBusiness support processes
Supply chain processes
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 13
Production planning
Production optimization
Short break
Part 1
Manufactoring execution
Part 2
Functionality of production processes
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 14
Materials requirements planning (MRP)
Materials requirements planning (MRP)
Planned production orderPlanned production order
Production order Production order
Actual productionActual production
QM on produced materialQM on produced material
MRP lists
Goods Used
Material &
Quantity
Production
schedule
Release Certificate
Production planning
Delivered to stockDelivered to stock Goods Receipt
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 15
Purchase
Requir. Materials Requirements Planning
(MRP)
Materials Requirements Planning (MRP)
Sales and Operations Planning(SOP)
Sales and Operations Planning(SOP)
Conversion of Planned OrdersConversion of Planned Orders
Release of Productionand Process Orders
Release of Productionand Process Orders
Actual ProductionActual Production
ConfirmationConfirmation
Production ControllingProduction Controlling
MRP lists
Goods
Receipt
Production Papers
Planned Order
Goods
Issue
Sales
OrderForecast
Time and Material
MESMES
Material Mangmt
Purchase
MM
CO
QM
Contr.
InspectionLot
InspectionLot
InspectionResults
InspectionResults
Sales
Production planning
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 16
Sales orders and forecasts are the two entries into the MRP process
Sales and operations planning (Demand planning)
Sales orders are automatically delivered by the sales processes
Productions directly to stock without sales orders are usually on the basis of experience leading to a forecast
Forcast and sales orders are compensated
Production planning
Forcasts are usually done by sales departments in cooperation with at least the main customers
Forcasts might as well be based on mathematical models interpreting the sales historie and extrapolating the privious data
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 17
Sales orders and forecasts are the two entries into the MRP process
Material requirement planning (MRP)
According to the BOM the MRP produces reservations on the next level of dispoosition
The MRP produces planned production orders or purchase requirements
Rules for lot sizes and production times are described in the master data
Usually the MRP is done by a disposition department
Production planning
Planned production orders and purchase requirements are the systems suggestions according to the existing master data
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 18
With the conversion the status of the production operation is changed from suggestion to actual plan
Conversion of planned production orders
Usually the conversion of planned orders into production orders is done by a production department
Production planning
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 19
With the release of a production order production papers are printed to be passed to the working floor for execution
Release of production orders
Usually the release of production orders is done by a production department
Production planning
With the release of a production order the preparation of the quality management is triggered too
With the release of a production order allocation of input material is triggered too
The release of production orders changes the status from „actual planned“ to „start working“
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 20
With the confirmation of a production order the used time and material is booked and the stock is reduced
Conformation of production orders
Usually the conformation of production orders is done by a production department
Production planning
With the confirmation of a production order quality management is started
With the confirmation of a production order the produced amount of material is booked to the stock
The conformation of production orders changes the status from „start working“ to „working (partly) terminated“
While the quality management is in process, the produced material is kept pending in the quality check inventory
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 21
With the controlling of a production order the moving internal average price of the material is adjusted
Production controlling
Production controlling usually is done by the controlling department
Production planning
Production controlling is based on the figures delivered to the system in the confirmation process
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 22
Production planning
Production optimization
Short break
Part 1
Manufactoring execution
Part 2
Functionality of production processes
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 23
SalesProduction
planning andscheduling
Shipment and distribution
Purchasing
Logistical crossover processes => advanced planning systems (APS)Logistical crossover processes => advanced planning systems (APS)
Business support processesBusiness support processes
Production optimization
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 24
Production Production DistributionDistribution Sale Sale Purchase Purchase
Network Design (ND)Network Design (ND)
Supply Network Planning (SNP)Supply Network Planning (SNP)
ProcurementPlanning
ProcurementPlanning
Demand Planning (DP)
Demand Planning (DP)
Global ATP Global ATP
Transport. Planning
&Vehicle
Scheduling (TP/VS)
Transport. Planning
&Vehicle
Scheduling (TP/VS)
ProductionPlanning
&Detailed
Scheduling (PP/DS)
ProductionPlanning
&Detailed
Scheduling (PP/DS)
Lo
ng
Ter
m
Lo
ng
Ter
m
Mid
Ter
mM
id T
erm
Sh
ort
Te
rm
Sh
ort
Te
rm
DistributionPlanning
& Deployment
DistributionPlanning
& Deployment
Production optimization
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 25
Demand Planning (DP)Demand Planning (DP)
Supply Network Planning (SNP)Supply Network Planning (SNP)
Transport Planning (TP/ VS)Transport Planning (TP/ VS)
Detailed Scheduling (DS)Detailed Scheduling (DS)
Production Planning (PP)Production Planning (PP)
DeploymentDeployment
Planning Horizon
Planning the supply chain with APS
Production optimization
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 26
• Generation of detailled production plans
– Machine scheduling
• Methods
– Genetic Algorithm
– Constraint Programming
• Time horizon
– One week or one month, split into days or hours
– Rolling updates in hours
– Continous Scheduling
• Determination of valid working plans for workshops
Production Planning & Detailed Scheduling
Production optimization
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 27
Process Orders R/3 Process Orders R/3
Manual Planning w/Excel
Release / Print
Process Orders APO
PP/DS Planning Table APO
Optimization APO
Alert Monitor APOManual Data Changes in R/3
Process Orders R/3
Release / Print
Comparison of manual planning and planning with APS
Production optimization
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 28
Supply silos
Extruders
Personal
Transporttanks
Cattle
Warehouse
Filling at extrusion
in bags, small bundles or feed silos
Bagracking
Typical planning scenario with APS
Production optimization
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 29
• „Bottom-Up“ APS implementation is a success factor
• Optimization automatically 1x daily or on demand is best practice
• Reduction of the „manual planning times„ around 80%
• Reduction of the buffer times at the demand point in time around 50%
• Comment of a planner on the planning quality: „We did not become worse!!„.
• High acceptance of advanced planning systems in the companies due to “low hanging fruits” as a quick business benefit
Typical experiences with APS
Production optimization
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 30
Practical part: developing the subjectsGroup A: You produce 3 materials: B (Black) Y (Yellow) W (White) on only
one machineMaterial B is needed: 100 pc on 1.7. , 50 pc on 1.8. Lotsize is 50 in 10 daysMaterial Y is needed: 50 pc on 1.8. , 100 pc on 1.9. Lotsize is 100 in 10 daysMaterial W is needed: 50 pc on 1.7., 50 pc on 1.9. Lotsize is 50 in 10 daysCleaning time W after B is 10 days, W after Y is 10 days, Y after B is 10 daysCleaning time B after W or Y is 0 daysWhat is your production plan ?
1. you have 20 minutes for group discussion and writing down your ideas2. afterwards each group has 5 minutes for the presentation of your ideas3. your are free to use any presentation medium
Group B: You produce 3 materials: G (Grey) P (Pink) C (Clear) on only one machine
Material G is needed: 100 pc on 1.7. , 50 pc on 1.8. Lotsize is 50 in 10 daysMaterial P is needed: 50 pc on 1.8. , 100 pc on 1.9. Lotsize is 100 in 10 daysMaterial C is needed: 50 pc on 1.7., 50 pc on 1.9. Lotsize is 50 in 10 daysCleaning time C after P is 10 days, C after G is 10 days, P after G is 10 daysCleaning time G after C or P is 0 daysWhat is your production plan ?
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 31
Example solution for a potential test task, Part 1
You produce 3 materials: B (Black) Y (Yellow) W (White) on only one machineMaterial B is needed: 200 pc on 1.7. , 100 pc on 1.8. Lotsize is 100 in 10 daysMaterial Y is needed: 100 pc on 1.8. , 200 pc on 1.9. Lotsize is 200 in 10 daysMaterial W is needed: 100 pc on 1.7., 100 pc on 1.9. Lotsize is 100 in 10 daysCleaning time W after B is 10 days, W after Y is 10 days, Y after B is 10 daysCleaning time B after W or Y is 0 daysWhat is your production plan ?
Start Type End Amount
1.6. Product W 10.6. 100
10.6. Product B 20.6. 100
20.6. Product B 1.7. 100
1.7. Cleaning 10.7.
10.7. Product Y 20.7. 200
20.7. Product B 1.8. 100
1.8. Cleaning 10.8.
10.8. Product W 20.8. 100
20.8. Product Y 1.9. 200
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 32
Summary and key messages, Part 1
Production optimization very high and quick benefits
Literature1. Stadtler, Kilger – Supply chain management and advanced planning,
Springer Verlag, Berlin Heidelberg, 20002. Dangelmaier, Busch (Hrsg.) – (in german) Integriertes Supply Chain
Management, Gabler Verlag, Wiesbaden, 5/2004
The main challenge within production optimization is the modelling of the system
Reliable master and transaction data are indespensable
Production planning is mandatory for any Production optimization
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 33
Production planning
Production optimization
Short break
Part 1
Manufactoring execution
Part 2
Functionality of production processes
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 34
Production planning
Production optimization
Short break
Part 1
Manufactoring execution
Part 2
Functionality of production processes
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 35
Functionality of production processes, Part 2
The link between production planning at the ERP level and production execution at the shop floor level is seldom realised
Problems and potentials
If the production planning and the production execution is connected mainly selfdeveloped interfaces are used
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 36
Functionality of production processes, Part 2
Understand the important inputs and outputs of each component
Understand the needed components for a MES (Manufactoring Execution System)
Learning targets
Understand the involved acting logical business units
Understand the importance to customize the actual constellation
Understand the importance of standard interfaces to the ERP system
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 37
Horizontal Integration
Materials Planning
Order Release
Confirmation Production Controlling
Production
Order Conversion
Enterprise Resource Planning
Production Control SystemsProduction Control Systems
Sales Order
Horizontal Integration
Electronic
Shiftbook
Electronic
Shiftbook
LIMSLIMS
Detailed
Production-
documents
Detailed
Production-
documents
Process Flow
Operations
Process Flow
Operations
Deployment
planning
Deployment
planning
Historical
Machine-data
and Control-data
Historical
Machine-data
and Control-data
Resource-
planning
Resource-
planning
Batch
Handling
Batch
Handling
Manual Inventory
Management
Manual Inventory
Management
Detailed
Scheduling
Detailed
Scheduling
Production execution
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 38
QMControl
QMControl
History +Efficiency-analysis
History +Efficiency-analysis
Genealogy +Batch Tracing
Genealogy +Batch Tracing
PDCPDCDocumentsAdministration
DocumentsAdministration
LIMS
Available
Capacity
Personnelpower Flow-
control
Flow-control
Detailed
Production
Planning
Detailed
Production
Planning
APS
BW
ERP (R/3)
MES
Process
Management
Process
Management PCS
Plant MaintenanceManagement
Plant MaintenanceManagement
Resources
Production execution
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 39
Production execution
Typical MES scenario
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 40
Production execution
Process messages as kernel of MES functionality
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 41
Maintenance management
Maintenance of tools and machines periodical or preventive maintenance Spare part procurement
QM
Monitoring the production quality Integration in LIMS
Document administration
job instruction Drawings production papers
Production execution
Typical MES fuctionality
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 42
Available Capacity
employees (time- and attendance recording, also completion confirmation)
resources
Process management
Production monitoring in a pokier senseDescision support in case of errorMachine controlCan be adopted by MES, but also through FLS
Production execution
Typical MES fuctionality
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 43
Sequential control
monitoring and control of the production flow
product tracking Batch tracing Tracing of components
Genealogy and batch tracing
conditioning and archiving of operating data Analysis of resource workload and –availability Key Performance Indicator (KPI)
History and Service analysis
Production execution
Typical MES fuctionality
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 44
closing the gap between office- and machinery world increase of the efficiency, flexibility, competitive position, delivery reliability MES provides the vertical integration between business economics and production + logistics augments operational readiness of the manufacturing facilities by
abbreviated response times in exceptional cases online coupling of business economics and production enables completely continious business processes complete integration of IT by grouping of single solutions
and definined interfaces between ERP – MES – FLS simple integration of new functions resp. connection of new
production plans advanced & optimized process flows wider, transparent pools increase of the decision certainty
Production execution
Benefits by using a MES system
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 45
Flexible expansion Analysis-, planning- and simulation options Integration of existing application scenery well-engineered technical solutions Investment- and implementation effort running operation expenses acceptance of the users
Production execution
Criteria on requirements for the asortment of MES
Matthias Mekschrat
h_DA WS 2012/13 Logistical applications and optimizations Slide 46
Summary and key messages, Part 2
Literature1. Stadtler, Kilger – Supply chain management and advanced planning,
Springer Verlag, Berlin Heidelberg, 20002. Dangelmaier, Busch (Hrsg.) – (in german) Integriertes Supply Chain
Management, Gabler Verlag, Wiesbaden, 5/2004
MES is the mayor challenge to integrate the shop floor and the ERP systems
The interfaces are the most complicated structures and should be provided by the supplier of the MES systems
The functionality of MES systems may very according to the supplier
The functionality must be selectable according to the users demand