1. Copyright © Texas Education Agency, 2012. All rights reserved. 1 Production Processes Statistics & Risk Management

2. Copyright © Texas Education Agency, 2012. All rights reserved. 2 “Copyright and Terms of Service Copyright © Texas Education Agency. The materials found on this website are copyrighted © and trademarked ™ as the property of the Texas Education Agency and may not be reproduced without the express written permission of the Texas Education Agency, except under the following conditions: 1)Texas public school districts, charter schools, and Education Service Centers may reproduce and use copies of the Materials and Related Materials for the districts’ and schools’ educational use without obtaining permission from the Texas Education Agency; 2) Residents of the state of Texas may reproduce and use copies of the Materials and Related Materials for individual personal use only without obtaining written permission of the Texas Education Agency; 3) Any portion reproduced must be reproduced in its entirety and remain unedited, unaltered and unchanged in any way; 4) No monetary charge can be made for the reproduced materials or any document containing them; however, a reasonable charge to cover only the cost of reproduction and distribution may be charged. Private entities or persons located in Texas that are not Texas public school districts or Texas charter schools or any entity, whether public or private, educational or non-educational, located outside the state of Texas MUST obtain written approval from the Texas Education Agency and will be required to enter into a license agreement that may involve the payment of a licensing fee or a royalty fee. Call TEA Copyrights with any questions you have.

3. Copyright © Texas Education Agency, 2012. All rights reserved. Ideas Concepts Concepts – Original Ideas – Copies of Products – New and Improved Design Design – Drawings – Models – Prototypes 3

4. Copyright © Texas Education Agency, 2012. All rights reserved. Planning Product Engineering Product Engineering – What to produce Process Engineering Process Engineering – How to produce it – Manage bottlenecks 4

5. Copyright © Texas Education Agency, 2012. All rights reserved. Planning Inputs Inputs Outputs Outputs Within Factory Within Factory Next Factory Next Factory End Buyer End Buyer 5

6. Copyright © Texas Education Agency, 2012. All rights reserved. Scheduling Forward Scheduling is planning the tasks from the date resources become available to determine the shipping date or the due date Forward Scheduling is planning the tasks from the date resources become available to determine the shipping date or the due date Backward Scheduling is planning the tasks from the due date or required-by date to determine the start date and/or any changes in capacity required Backward Scheduling is planning the tasks from the due date or required-by date to determine the start date and/or any changes in capacity required 6

7. Copyright © Texas Education Agency, 2012. All rights reserved. Scheduling Companies use forward & backward scheduling to: Companies use forward & backward scheduling to: – allocate plant and machinery resources, – plan human resources, – plan production processes – purchase materials 7

8. Copyright © Texas Education Agency, 2012. All rights reserved. Benefits of Scheduling Process change-over reduction Process change-over reduction Inventory reduction, leveling Inventory reduction, leveling Reduced scheduling effort Reduced scheduling effort Increased production efficiency Increased production efficiency Labor load leveling Labor load leveling Accurate delivery date quotes Accurate delivery date quotes Real time information Real time information 8

9. Copyright © Texas Education Agency, 2012. All rights reserved.Implementation Set Up Set Up – Materials – Equipment – Routing Production Runs Production Runs – Monitoring – Adjustments 9