Introduction to the Module Production Management 314 Introduction to Module & Production Management • Lecturers Term 1: Prof. Louis Louw: Department of Industrial Engineering Industrial Engineering Building, Room 2011 Term 2: Dr Mia Mangaroo-Pillay: Department of Industrial Engineering Industrial Engineering Building, Room 2010 Department of Industrial Engineering, Stellenbosch University 1. Introduction to Module 1 1. Introduction to Module 2 1 Example Production System The Value Creation System Plan: Strategic Requirements/ Needs Plan: Tactical Monitor Performance and Improve Return, Recycle, Re-use, etc Input Resources: •Materials •Components •Information •People •Product/ Service Primary Value Adding Processes Design Source Make Make Deliver Return, Recycle, Re-use, etc Support Products/ Services Market & Sell Support/ Enabling Resources and their processes: People, Facilities, Equipment/Tools, Inventory, Money, IT Hardware & Software Revenues Organisational Structure Finances See video on SunLearn: Video - Tesla Factory.mp4 Cost 3 Clients/ Customers Suppliers Plan: Operational Summary of Comments on PowerPoint Presentation Page: 4 Number: 1 Author: Presenter Notes Subject: Presentation Notes Date: 13/02/2024 17:30:00 Focus of production management is on the “Make component of the value chain, with its corresponding Planning and Monitoring processes, as well as the corresponding input and enabling resources. This diagram depicts the overall enterprise architecture and value chain view for delivering value (products and/or services) to customers. The centre process are the primary value processes directly involved in creating and delivering value to customers. These primary value processes take input resources (such as materials, information, or even people and products) and covert them through a series or system of processes in different outputs (products and services), which represents the value delivered to customers or clients. In order to execute these primary value processes, supporting or enabling resources and their processes are required. These include (1) people (workers, managers, etc and the human resource processes involved in managing these resources; (2) facilities – the physical space required to produce, store, deliver, support, etc., and their corresponding processes; (3) equipment and tools– the physical assets such as machines, tools, jigs, etc; (4) Inventory – inventory is a current asset which is used strategically to deliver value – can be inventory of material, components, sub-assemblies, work-inprocess, finished products; (5) information technologies (hardware and software); (6) money – the cash and credit/ debit required to enable buying material, selling products/ services and acquiring assets/ resources. These money flows also require processes that need to be managed and improved. Revenues are generated form the products and services created and delivered, whereas the different process and resources (input and enabling) contribute to the cost. Profit is generated from the difference between the revenues and the cost. The operating system consist of the primary value adding processes, as well as the different input and enabling resources and their processes. In order to execute and manage this operating system, planning as well as monitoring & controlling is essential/ Planning is done on various levels: strategic (longer term), tactic (medium term), operational (short term). Performance of this operating system should be monitored through measures and standards/ goals/ targets/ objectives. Deviation of measures against such standards/ objectives/ targets will indicate areas for improvement. 1 The Value Creation System Plan: Strategic Requirements/ Needs Plan: Tactical Monitor Performance and Improve Return, Recycle, Re-use, etc Primary Value Adding Processes Input Resources: •Materials •Components •Information •People •Product/ Service Return, Recycle, Re-use, etc How should thisMake operating Design Support Source Deliver Make system be designed, planned, Support/ Enabling Resources and their processes: managed, and improved? Products/ Services Market & Sell Clients/ Customers Suppliers Plan: Operational Revenues People, Facilities, Equipment/Tools, Inventory, Money, IT Hardware & Software Organisational Structure Finances Cost Page: 5 Number: 1 Author: Presenter Notes Subject: Presentation Notes Date: 13/02/2024 17:30:00 A key question for production management is” How should this production operating system be designed, planned, managed and improved?” What is Production Management? • Production Management is the design, planning, organizing, directing, controlling and improving of transformation processes (converting input materials into product outputs) and their enabling resources resources (people, equipment, consumables, energy) to meet the goals of an organization. • Goals of Production Management? • Maximize the overall value generated in the Make component of the value chain: • Generate cost savings and better customer service over the entire supply chain • Ideal: • Have the right product Throughput/ Output • In the right amount • At the right place Lead times • At the right time Quality • At the right quality • At the least cost (best use of resources) 1. Introduction to Module Cost/ Efficiency 6 Typical operations in a production facility Information Flow Production as part of a Supply chain • Focus for this module: the production operating system and its internal logistics “Upstream” “Downstream” First tier suppliers Order Information Production System Distributors Retailers Internal Logistics Services Purchasing & delivery of materials, parts, components, etc Services Inbound Supply 1. Introduction to Module Delivery of products & services Customers Supply 7 Typical decisions in a production facility Planning, management and control function (Production planning & control or PPC) People/ Workers Suppliers Outbound Supply Also “Outbound Logistics” Also “Inbound Logistics” Purchase How much capacity (facilities, Information machines, equipment, people, etc) do I need to fulfil current and future demand? Planning, management and control function (Production planning & control or PPC) End-Users Sub-tier suppliers Physical Flow Purchase Information Demand 1. Introduction to Module 8 Typical decisions in a production facility lity Information Flow Physical Flow Order Information How should my facilities be designed and configured (layout, positioning? How should my processes be designed and configured? How should my product be designed and produced? Delivery of What manufacturing strategies materials, should I use, and how? parts, components, What technologies do I etc need, People/ Workers When can I deliver orders, and how? Delivery of products & services When should I release orders, and in what sequence? and how should they be applied? Customers Suppliers How do I manage my inventory? Supply Demand Hopp & Spearman, FACTORY PHYSICS: FOUNDATIONS OF MANUFACTURING MANAGEMENT, 2nd edition 1. Introduction to Module 9 1. Introduction to Module 10 Typical decisions in a production facility Structural strategic decisions Typical decisions in a production facility Infrastructural strategic Typical questions which the strategy should help to answer decisions Typical questions which the strategy should help to answer Job design and organization New product/service design How should the operation decide which products or services to develop and how to manage the development process? Supply network design What role should the people who staff the operation play in its management? How should responsibility for the activities of the operations function be allocated between different groups in the operation? Should the operation expand by acquiring its suppliers or its customers? If so, what customers and suppliers should it acquire? What skills should be developed in the staff of the operation? How should it develop the capabilities of its customers and suppliers What capacity should each operation in the network have? Planning and control What number of geographically separate sites should the operation have and where should they be located? How should the operation forecast and monitor the demand for its products and services? How should the operation adjust its activity levels in response to demand fluctuations? What activities and capacity should be allocated to each plant What systems should the operation use to plan and control its activities? Process technology What types of process technology should the operation be using? How should the operation decide the resources to be allocated to its various activities? Should it be at the leading edge of technology or wait until the technology is established? 1. Introduction to Module 11 Typical decisions in a production facility Infrastructural strategic decisions Inventory Supplier development 1. Introduction to Module 12 Typical decisions in a production facility Infrastructural strategic decisions Improvement Typical questions which the strategy should help to answer Typical questions which the strategy should help to answer How should the operation’s performance be measured? How should the operation decide how much inventory to have and where it is to be located? How should the operation decide whether its performance is satisfactory? How should the operation control the size and composition of its inventories? How should the operation choose its suppliers? How should the operation ensure that its performance is reflected in its improvement priorities? How should it develop its relationship with its suppliers? Who should be involved in the improvement process? How should it monitor its suppliers’ performance? How fast should the operation expect improvement in performance to be? How should the improvement process be managed? Failure prevention risk and recovery How should the operation maintain its resources so as to prevent failure? How should the operation plan to cope with a failure if one occurs? 1. Introduction to Module 13 1. Introduction to Module 14 Typical decisions in a production facility Production Management Planning Approaches • Trade-off: how to best match supply pp y with demand? LEAN Pull-based: Kanban, standard items, Capacity/ Resources Levelled production Priority The Demand For Products The Ability to Produce & Deliver Products Planning Theory of Constraints Constraint Mitigation Cost of Providing the Service 1. 2. 3. 4. 5. Customer Service Trade-offs Between A Balancing Act 1. Introduction to Module 15 Production Improvement Approaches LEAN Identify the Constraint Exploit the Constraint Subordinate to the Constraint Elevate the System’s Constraint Repeat Step 1, the Constraint has probably moved 1. Introduction to Module 1. Introduction to Module 16 16 To teach the basic concepts, issues, and methods/techniques for designing, planning, managing and improving production operations (make it efficient and effective ) Although the course is mainly focused on production operations, many of the concepts can also be applied in a service environment Six Sigma Reducing Process Variation Constraint Mitigation 1. 2. 3. 4. 5. Push-based Hierarchical planning from aggregate level to materials • Aim of this module Identify the Value Stream Eliminate Over-Production Eliminate Over-Processing Create Process Flow Create Pull System Improvement Theory of Constraints (TOC) Material Requirements Planning (MRP) Introduction to the Module This module we focus on Lean and TOC) Eliminating Non-Value Added Activities Identify the Constraint Exploit the Constraint Subordinate to the Constraint Elevate the System’s Constraint Repeat Step 1, the Constraint has probably moved Consistent Repeatable Processes Process Design / Redesign Defect Prevention Statistical Analysis Voice of the Customer 17 17 1. Introduction to Module 18 Introduction to the Module Introduction to the Module • What you will learn in this module • What you will learn in this module (cont) what is a production system, and how does it fit into the supply chain system how to plan a production system: demand forecasting how to analyse a process and measure process performance an integrated planning framework for production how to design a production system: approaches to manufacturing planning and control production process design MRP capacity design and allocation Theory of Constraints facility layout design Lean/ JIT How to manage and control production on the shop floor supply network design: facility location design the production process performance management system release, prioritise and monitor work on the shop floor the inventory management system How to improve a production system The future of production under the 4th industrial revolution 1. Introduction to Module 19 1. Introduction to Module Introduction to the Module Introduction to the Module • Module is part of the Production Management module chain, which is part of the Operations Management specialist area within the Industrial Engineering curriculum • Prescribed text books: 20 Supplementary notes will be distributed as/ when required Production Management Module chain 2nd year 3rd year, 1st semester 3rd year, 2nd semester Production Management 212 Production Management 314 Industrial Management 354 Sunil Chopra, Supply Chain Management: Strategy, Planning and Operation, Global Edition, 6th or 7th Edition 1. Introduction to Module 21 Jacobs, J.F and Chase, R.B., Operations and Supply Chain Management, 15th Global Edition, 2018 1. Introduction to Module 22 Introduction to the Module Introduction to the Module • How the module will be presented. • How the module will be presented. Lectures (3 hrs per week) Tutorials (3 hrs per week) (cont) Used to introduce and explain the relevant theory Tutorial assignments will not be marked by the lecturers. Lectures will be made available online on SUnLearn in pdf format (on a Monday every week) Answers to tutorials will be made available after the assignment due date. Videos will be available online on SUNLearn to accompany the lecture slides It is up to the students to mark their own assignment using the answers provided. Tutorials (3 hrs per week) Case studies and more complex problems – used to learn how to apply the theory to problems based on realistic case studies Tutorial assignments will be made available at the start of the week. Students can start working on the tutorial assignment when available. A tutorial contact session is scheduled on a Wednesday afternoon every week (14:00-17:00). Students can use these contact sessions to work on the tutorial assignment and have face-to-face contact with the lecturer and demis for questions and answers. No new lecture content will be provided in these tutorial sessions. Finished tutorials will be submitted on SUNLearn. Due dates for assignments will be published on SUNLearn. 1. Introduction to Module 23 1. Introduction to Module Introduction to the Module Introduction to the Module • How the module will be presented (cont). • How the module will be presented (cont). Class tests 24 Self -study Regular class test covering work from previous week or 2 weeks (incl tutorial) Module will require a lot of self learning-study. Will be open book Tutorials designed to help with this. Used to evaluate your own understanding of the content- theory and application Approximately 6 hrs of self-study is required per week by students, in addition to the lecture materials and tutorials. It is up to the students to plan how they want to make use of the total 12 hours required per week for the module. Ensures that you don’t fall behind with the content Will be online on SUNLearn: Will be available for limited time during the lecture period Can complete the class test from home – do not have to come to lecture hall (if you are concerned about load shedding, make sure you use one of the SU lecture halls with plugs or one of the computer rooms). Must be completed individually – copying from other students or collaborating with students in order to complete tests are strictly forbidden. Students caught cheating will face a disciplinary process and it may have serious consequences/ Will count towards the semester mark The two lowest marks will be excluded from the final semester mark calculation 1. Introduction to Module 25 1. Introduction to Module 26 Introduction to the Module Introduction to the Module • Assessment details. • Schedule – refer to the module framework on SUNLearn Flexible assessment • How the module will be presented (cont). Semester mark: 15% A1, A2, A3 assessments Class tests: 15% Will be paper based and written in person (vigilated sitdown) – not online. Tutorials/ assignments do not count directly, but These assessments will be closed book. Each tutorial/assignment not handed: minus 1% Formula sheets will be provided for all assessments. Each tutorial assignment handed in but less than half completed: minus 0.5% Only prescribed pocket calculators may be used during A1, A2, and A3 assessments – no laptops, cell phones, tablets, etc You will have to complete the assignments/ tutorials if you want to do well in the tests/ exams Tutorials/ assignments to be handed in individually (unless otherwise stated) – you are however welcome to work in groups or assist each other Memos/ answers will be provided for tutorials – use these to mark and evaluate your own work in tutorials First Assessment A1: 35% Second Assessment A2: 50% 1. Introduction to Module 27 Introduction to the Module 1. Introduction to Module 28 Introduction to the Module • Assessment details (cont). • Afrikaans opsomming : Major assessment dates and venues are provided at firga.sun.ac.za and mymaties.com • Hierdie module het ten doel om die basiese konsepte, kwessies en tegnieke vir effektiewe en doeltreffende bedrywighede oor te dra. Dit dek verskeie metodes en tegnieke wat gebruik word vir die ontwerp, beplanning en bestuur van operasionele prosesse asook fasiliteite. Alhoewel die kursus hoofsaaklik gefokus is op produksie bedrywighede, kan baie van die konsepte ook toegepas word in 'n diensomgewing. Please consult the module framework on SunLearn • Kern fokus: • Verseker die doeltreffende en effektiewe vloei van goedere/ dienste, inligting, en geld • Sien kennis areas wat gedek word in module in Afrikaanse weergawe van module raamwerk 1. Introduction to Module 29 1. Introduction to Module 30 End of Lecture 1. Introduction to Module 31
