PowerPoint Presentation by Charlie Cook Copyright © 2004 South-Western. All rights reserved. Chapter 13 IntegratedProductionProcesses(IPP)IntegratedProductionProcesses(IPP)

Copyright © 2004 South-Western. All rights reserved.13–2 Learning Objectives To analyze forces that exist in the contemporary production environment and trends To describe the role of enterprise resource planning (ERP) systems in integrating the total manufacturing environment To list principal components of a modern integrated production process (IPP) and describe how those components interact with one another

Copyright © 2004 South-Western. All rights reserved.13–3 Learning Objectives (cont’d) To analyze the impact of automation on the IPP To describe the key inputs, outputs, data, and processes included in production planning and control, including links to the cost accounting, human resource management, and inventory management processes To describe the fundamental characteristics and impact of supply chain management software

Copyright © 2004 South-Western. All rights reserved.13–4 ERPs - SAP Automotive Modules mySAP Business Intelligence mySAP Customer Relationship Management mySAP Product Lifecycle Management mySAP E-procurement

Copyright © 2004 South-Western. All rights reserved.13–5 Managing Throughput Times Push manufacturing  Sales forecast drives production plan  Goods produced in large batches  Jobs wait until machines ready Pull manufacturing  Idle machine pulls job from previous machine  Theoretically, job = “batch” of one unit

Copyright © 2004 South-Western. All rights reserved.13–6 Features of Pull Approach Short production runs Continuous flow operations Reduced work-in-process (WIP) and finished goods (FG) inventories Reduced floor space  Improved layout/less inventory

Copyright © 2004 South-Western. All rights reserved.13–7 The Integrated Production Process FIGURE 13.1

Copyright © 2004 South-Western. All rights reserved.13–8 Overview of IPP Architecture FIGURE 13.2

Copyright © 2004 South-Western. All rights reserved.13–9 Production Planning/Control Systems Manufacturing Resource Planning (MRPII)  Master production schedule  Materials requirements planning (MRPI)  Shop floor control Just-in-time concept and objectives  Zero defects  Zero setup times  Small lot sizes  Zero lead times  Zero inventories

Copyright © 2004 South-Western. All rights reserved.13–10 Flexible Manufacturing Systems (FMS) Components Group technology Computer-aided manufacturing Computer-aided process planning  Computer numerical control  Robotics  Automated guided vehicles  Automated storage/retrieval systems  Digital image processors Automated data collection devices

Copyright © 2004 South-Western. All rights reserved.13–11 Overview Flowchart— Production Planning, Control, and Cost Accounting FIGURE 13.3

Copyright © 2004 South-Western. All rights reserved.13–12 Bill of Materials (SAP) FIGURE 13.4 Reprinted with permission from SAP.

Copyright © 2004 South-Western. All rights reserved.13–13 Order Requirements Schedule (SAP) FIGURE 13.5 Reprinted with permission from SAP.

Copyright © 2004 South-Western. All rights reserved.13–14 Production Routing Schedule (SAP) FIGURE 13.6 Reprinted with permission from SAP.

Copyright © 2004 South-Western. All rights reserved.13–15 Dynamic Production Schedule (SAP) FIGURE 13.7 Reprinted with permission from SAP.

Copyright © 2004 South-Western. All rights reserved.13–16 Level 0 Data Flow Diagram—Cost Accounting FIGURE 13.8

Copyright © 2004 South-Western. All rights reserved.13–17 Materials Issue Notice (SAP) FIGURE 13.9 Reprinted with permission from SAP.

Copyright © 2004 South-Western. All rights reserved.13–18 Job Time Log (JD Edwards) FIGURE Reprinted by permission of JD Edwards World Source Company.

Copyright © 2004 South-Western. All rights reserved.13–19 Inventory System Controls Effectiveness of operations  Maintain sufficient inventory to prevent stockouts  Maintain sufficient inventory to maintain operational efficiency  Minimize cost of carrying inventory Efficiency of process operations  JIT materials acquisition  Warehouse bin locations Resource security  Periodic physical inventory counts  Locked storerooms