2 part Production Management Roberto Cigolini 2017

INIZIO SECONDA PARTE

PERFORMANCE MEASUREMENTS

1. WHY PERFORMANCE MEASUREMENT ARE IMPORTANT
   • TO TAKE THE RIGHT DECISIONS. COULD BE CONSIDERED AS A PART OF WARNING SYSTEM.
     • PERCEIVE SIGNALS TO IMPROVE THE QUALITY OF DECISION & TIMELINESS.
   • TO LEARN. MEASURE PERFORMANCE HELP TO TRACK THE SYSTEM.
   • TO MOTIVATE. LINK PERFORMANCE TO MOTIVATION.
     • PERFORMANCE MEASUREMENT SYSTEM.

REMEMBER: WE CANNOT IMPROVE WHAT WE CANNOT MEASURE

1. SOME DEFINITIONS
   • PERFORMANCE ARE THE RESULT, MEASURED AGAINST A MULTI-DIMENSION SCALE, OF THE LENGTH AND PRODUCTIVE PROCESS.
   • OPERATIVE CONDITIONS ARE THE EXTERNAL AND INTERNAL CONTEXT IN WHICH THE RESULT IS OBTAINED.

TO LINK QUALITY WITH PERFORMANCE USEFUL TO VALUE OPERATIVE CONDITIONS.

3. INTERNAL AND EXTERNAL PERFORMANCE

EXTERNAL PERFORMANCES: DIRECTLY PERCEIVED BY CUSTOMERS (Client could measure it).

INTERNAL PERFORMANCES: PERFORMANCE WHOSE MEASUREMENT OF SPECIFIC INTEREST OF THE COMPANY, BUT NOT OF THE CLIENT.

PERFORMANCE MEASUREMENT: if the need (need) to measure a certain performance must be specified keeping in mind the level you need to measure.

PERFORMANCE could have different dimensions:

• COST
• PRODUCTIVITY
• QUALITY (rate of defective product)
• SERVICE (to specific quality and/or productivity)

PERFORMANCE MEASUREMENT SYSTEM DESIGN:

• UNCERTAINTY PRINCIPLE

PERFORMANCE MEASUREMENT OBJECTIVE: EVALUATE AT THE SAME TIME EFFECTIVENESS AND EFFICIENCY

PERFORMANCE FRAMEWORK

TRADE OFF BETWEEN FLEXIBILITY

PERFORMANCES ARE MEASURED THROUGH THE COMPONENTS OR THE DETERMINANTS (rate of defective product)

AVAILABILITY [OEE] OPERATING TIME

PLANNED PRODUCTION TIME

PERFORMANCE [OEE]

NET OPERATING TIME

OPERATION TIME

QUALITY [OEE]

FULLY PRODUCTIVE TIME

NET OPERATING TIME

OEE: A.P.Q.

OPERATING TIME

PLANNED PRODUCTION TIME

NET OPERATING TIME

OPERATING TIME

FULLY PRODUCTIVE TIME

NET OPERATION TIME

FULLY PRODUCTIVE TIME

PLANNED PRODUCTION TIME

WAREHOUSE PERFORMANCE MEASUREMENT

• In order, to measure productivity there are two main indicators: 1 STORE TURNOVER INDEX
• The tool adopted to assess warehouse productivity is the ABC-ABC ANALYSIS.

STOCK TURNOVER INDEX

AVERAGE STOCK

STOCKTURNOVER INDEX =

1. How many should I check fulfillment per invoice
2. WHRPRODUCTSININVOICENOTEVERYDAY How many products do you from every warehouse in a given period of time

DAY OF INVENTORY

• Measures for how many days In inventory will cover my consumption

DAYSOFINVENTORY DAYSin thePERIOD

flowraterequered INDAYs

ABC-ABC ANALYSIS

Criteria to be adopted to assess warehouse productivity:

THE MATRIX

AFTER HAVING COMPUTED FOR EACH PARAMETER THE VALUE OF EACH MONTH WE DRAW THE GRAPH

3 4 f

JAN FEB MAR

WORKFORCE PRODUCTIVITY

p = mI: 7

• + VARIABLE ACTUAL WORKED HOURS

  PAID HOURS

• + EFFICIENCY ( VOLUME IN STD HOURS )

  ACTUAL WORKED HOURS

For each machine we have to compute the index to be added to production

2. ALUMINIUM DEPARTMENT

3. NUMERICAL CONTROL PANTOGRA PA

p = 1: 7

• + VARIABLE: ANNUAL PRODUCTION TIME

  OPENMA IN TIME

• + EFFICIENCY : VOLUME IN STD HOURS

  ANNUAL PRODUCTION TIME

1. 22
2. 7.85

OPENING TIME

DRIVEN DATA: 0 047

4. ASSEMBLY LINE

CYCLE TIME L. 88 4

WORKFORCE PRODUCTIVITY

p = d: 7

• + VARIABLE: ANNUAL PRODUCTION TIME

  OPENMA IN TIME

• + EFFICIENCY: VOLUME IN STD HOURS

  ACTUAL PRODUCTION TIME

Remark: Requirement of components directly depend on a plan and the future production schedule.

• Requirement of component are therefore anticipated and not estimated.
• The objective is:

Coordination the production dates of components to manufacture finished products.

Which approach we need?

We need an approach able to calculate (and forecast or anticipate) which component, with which raw material, are requested to cover a plan in order?

MRP

Material Requirement Planning

• HPS (Master Production Schedule) POV that controls finished product.
• Bill of Material → expresses the sequence of the supply chain.

Outcome: Plan of Requirement

Bill of Material

Group requirements and net orders!

Gross Requirements:

These are generated both order part and forecast.

• Parts are /0 a next consumer, parts are components of a more sophisticated sum.

It depends on net link between the independent demand (moderate demand) -

The Echi.»Not under reorder

MRP Procedures:

Reverse: According to the 3S approach top down over the different level of raw material from the finishing product be it can be materials and men.

3S Approach:

• Sum: The requirement for the same component comes from different orders and refreshed to the same period, different order of the same outlet.
• Split: The overall requirement per period of each component according to the lot sizing policy. Divide requirement according to lot sizing.
• Shift: Time to better determine the anticipated requirement according to the lead time recorded in the Bill of Material. (Provide into original MBA Production solving.)

Then lead to a plan of managing and manipulation order and proposal.

Exploding the Bill of Materials:

This plan generates new requirements of lower-level components ‹ of the Bill of Material ›;

The “requirement” procedure is finished when the raw materials are refined.

Split Plan of Order and Net Assessments

- Fail in the output of the period [6]

Outcome:

MRP → BA