SLOVAK UNIVERSITY OF TECHNOLOGY
Faculty of Material Science and Technology in Trnava
PLANNING IN PRODUCTION SYSTEMS
Prof. Dr. Ing. Oliver Moravčík
TRNAVA 2007
1
Introduction
Planning in production systems
One of the fundamental functions of plant – control function – plan, organize, control and coordinate
all next functions.
Market requirements: broad product diversification,
short delivery dates,
low prices,
innovations at high quality

rising requirements on the field of planning and control, associated with growing amount of data and
information



the necessity of suitable system planning and production control and its computer aid
Production and control planning – tasks oriented on customer order map out production control and
for process production coordination of its flow to fulfil its realization in optimal relations.
There is important check in time of planning (feedback), which is important element for control
according to the plan.
1.1.
Operational management basis
Organisation has justification only when it is satisfying the customer needs. Result of the
organisation activity is so-called “serduct” (what is satisfying the customer), which may be:
- material (product)
- non-material (service, information etc.).
Customer:
- may be situated outside but also inside the organization too
- may want the product or to be user of „the system“
- has necessity  role of the company is to identify the necessity of customer and prognosticate, i.e.
estimate the amount and type of necessity, and then try to satisfy it (Picture 1); this Picture can be
transformed to loop (Picture 2)
Each organization can be then represented as the hierarchy of input/output diagrams (Picture 3 and
Picture 4).
Mentioned activities can be merged into two big groups:
- marketing part
- operational (production) part
(see Picture 5 and Picture 6).
Production part includes own transformation process - i.e. process which transforms inputs to
outputs.
Input – all what enter the process (e.g. material, energy, work etc. - Pictures 7, 8, 9, 10).
2
needs
Customer
Organization
serduct
Customer
Picture 1 Prognosis process of customer needs and its satisfaction
Organization
needs
serduct
Custome
r
Picture 2 Transformation of the Picture 1 into the loop
needs
Customer
prognosis
Identification
and
prognostication
Analysis and
integration
prognosis
The plan of source
necessity
Suply
The plan of source
necessity
production inputs
Transformation
production
outputs
production inputs
production
outputs
Distribution
serduct
Picture. 3 Input/output diagram
3
Customer
Prognosis
The plan of
source
necessity
Analysis and
integration
Identification
and
prognostication
Suply
Production
inputs
Needs
Customer
Serduct
Transformatio
n
Distribution
Outputs
Picture 4 Input/output diagram
Analysis and
integration
Prognosis
The plan of
source
necessity
Production
Identification
and
prognostication
Suply
Production
inputs
Needs
Customer
Marketing
Transformatio
n
Outputs
Serduct
Distribution
Picture 5 Marketing and production part of the organization
4
Marketing
increasing
fruitfulness
Production
decreasing
feasibility
Marketing
Production
Marketing
Production
Picture 6 Marketing and production part of the organization
5
Control levels (hierarchy)
1. Strategical control level - top management – strategical decision-making to the future  plans for
5 to 20 years – long time targets and ways how to achieve them.
2. Executive control level - executive management  plans for 1 to 2 years.
3. Operational management  1 to 3 months – job control
4. Production units
5. Workplaces
6. Activator
Character of the plans and its determination is different for each level – top down – shortening time of
realization and request instantiation.
To control as a activity is needed:
- planning (plan creation, target definition)
- regulation
- feedback (evidence of trajectory and regulation intervention).
There can occur following events by control:
 required state does not correspond with real the control does not change - ideal state
 required state does not correspond with real  we try to mineralise the aberrance by regulation to
approximate to required state, eventually it is necessary to change the plan.
By company controlling change of the target means other – additional costs.
Groups of factors affecting Production and Operations Management
Definition
Production and Operations Management ("POM") is about the transformation of production and
operational inputs into "outputs" that, when distributed, meet the needs of customers.
The process in the above diagram is often referred to as the "Conversion Process". There are several
different methods of handling the conversion or production process - Job, Batch, Flow and Group
POM incorporates many tasks that are interdependent, but which can be grouped under five main
headings:
PRODUCT
Marketers in a business must ensure that a business sells products that meet customer needs and wants.
The role of Production and Operations is to ensure that the business actually makes the required
products in accordance with the plan. The role of PRODUCT in POM therefore concerns areas such
as:
-
Performance
-
Aesthetics
-
Quality
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-
Reliability
-
Quantity
-
Production costs
-
Delivery dates
PLANT
To make PRODUCT, PLANT of some kind is needed. This will comprise the bulk of the fixed assets
of the business. In determining which PLANT to use, management must consider areas such as:
- Future demand (volume, timing)
- Design and layout of factory, equipment, offices
- Productivity and reliability of equipment
- Need for (and costs of) maintenance
- Heath and safety (particularly the operation of equipment)
- Environmental issues (e.g. creation of waste products)
PROCESSES
There are many different ways of producing a product. Management must choose the best process, or
series of processes. They will consider:
- Available capacity
- Available skills
- Type of production
- Layout of plant and equipment
- Safety
- Production costs
- Maintenance requirements
PROGRAMMES
The production PROGRAMME concerns the dates and times of the products that are to be produced
and supplied to customers. The decisions made about programme will be influenced by factors such
as:
- Purchasing patterns (e.g. lead time)
- Cash flow
- Need for / availability of storage
- Transportation
PEOPLE
Production depends on PEOPLE, whose skills, experience and motivation vary. Key people-related
decisions will consider the following areas:
- Wages and salaries
- Safety and training
- Work conditions
- Leadership and motivation
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- Unionization
- Communication
Picture 7 Production and Operations Management
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Strategic management of the manufacturing
Level of strategic management = the biggest aggregation of input and output information
Business strategy
- Resource of creation objective, strategic measure planning and basic assumption creation
for business operation
- Must be flexibly and momently updated
Elements of Strategy:
- Conception of performance (products, services)  it depends on financial management
strategy area and strategy in area of business property
- Conception of development and structural change labour power and firm organization
Aspect of strategic management of the manufacturing:
- Conception of product / market – area performance definition and basic market
determination
- Conception of resources – resources and definition of their goals
- Conception of competitive position formation – strategic intention definition from
views competitive advantage
Strategic management  system ties with tactical operative management
Basic operational parameters of strategic management:
- strategy of new products
- strategy of new market
- strategy of market channel
- strategy of new technologies
- construction of competitive priority
It is needed - to know development factors in surroundings and their effect on own creation
performance,
- create assumption for realization of working competition ability
Base conception of product / market – determination of business branch
Conception of business is on base of three dimension:
- consumer group  what requisites to request
- filling of functions  product purpose
- technology  description how to reach it
Order dimension alternate:
Functions - technology - consumer
Tactical management of the manufacturing
- continuation of the strategic management
- decision about
- products
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- equipment of production system
- organization of production system
Tactical targets
1. - minimize of variable unit production cost
The factors enabling this retrenchment:
- new technology implementation
- modification of business size
- general improvement of product

Principle of production economy
a) principle of minimum - safety of output with the smallest possible input
b) principle of maximum - safety of the biggest output at existent input
Indicators of the personal and social implications:
- relative number of employee
- scope of execution work and necessary qualification
- load and demand on work
- hierarchy of work
- remuneration
- influence of environment
- effect on environment
2. – winning qualitative competition
Objective of tactical management of manufacturing:
A) new project of product system – system of products
B) new project of production system - system of production
New project of product system
The strategy of product policy:
- diversification - a risk management technique, related to hedging, that mixes a wide
variety of investments within a portfolio. Because the fluctuations of a
single security have less impact on a diverse portfolio, diversification
minimizes the risk from any one investment
- innovation
- refer to both radical and incremental changes in thinking, in things, in
processes or in services
- differentiation - the process of distinguishing the differences of a product or offering from
others, to make it more attractive to a particular target market
- variation
- change of some partial functions
- elimination - product liquidation (faulty piece, there is not wantable consumption, small
competitive capacity and market attractiveness)
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Support of analysis of production schedule:
- analysis of product life cycle
- analysis of product portfolio
Conflict of interests between marketing and production:
PRODUCTION
MARKETING
minimalizácia
nákladov
cost minimization
TARGET
maximization of selling
zjednodušenie
simplificationvýrobkovej
of product
rady
advice
PLAN
maximum of variety
products
New project of the production system
Resolution of conception of production system elements:
- operation process
- productive units (machines and people)
- assignment of operation processes to productive units
helpful matrix by the proposed of control system:
strength
foible
ways
threats
product
company
process
people
production
programme
from analyse  what is needed to improve
substance of behaviour this control system - decision
analyse of future scenarios (what - if) – one of the tool for support decision, it is needed the
pattern of behaviour of system - simulation
basic objective of prognostication of demand – determination of the right amounts of products
in right time and to de right destination place
Technology Forecasting
Techniques that reduce over-optimism and provide more rigor:
• Extrapolative planning… but only (a) if there are trends to extrapolate and (b) you
believe that trends grow up and have baby trends that look like their parents.
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• Projective forecasting: use expert opinion to forecast technological futures (e.g.,
Delphi Method, prediction market).
The BCG matrix product portfolio method
Picture 8 BCG matrix
The BCG matrix method is based on the product life cycle theory that can be used to
determine what priorities should be given in the product portfolio of a business unit. To
ensure long-term value creation, a company should have a portfolio of products that contains
both high-growth products in need of cash inputs and low-growth products that generate a lot
of cash. It has 2 dimensions: market share and market growth. The basic idea behind it is that
the bigger the market share a product has or the faster the product's market grows the better it
is for the company.
Placing products in the BCG matrix results in 4 categories in a portfolio of a company:
1. Stars (=high growth, high market share)
- use large amounts of cash and are leaders in the business so they should also
generate large amounts of cash.
- frequently roughly in balance on net cash flow. However if needed any attempt
should be made to hold share, because the rewards will be a cash cow if market share
is kept.
2. Cash Cows (=low growth, high market share)
- profits and cash generation should be high , and because of the low growth,
investments needed should be low. Keep profits high
- Foundation of a company
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3. Dogs (=low growth, low market share)
- avoid and minimize the number of dogs in a company.
- beware of expensive ‘turn around plans’.
- deliver cash, otherwise liquidate
4. Question Marks (= high growth, low market share)
- have the worst cash characteristics of all, because high demands and low returns due
to low market share
- if nothing is done to change the market share, question marks will simply absorb
great amounts of cash and later, as the growth stops, a dog.
- either invest heavily or sell off or invest nothing and generate whatever cash it can.
Increase market share or deliver cash
The BCG Matrix method can help understand a frequently made strategy mistake: having a
one-size-fits-all-approach to strategy, such as a generic growth target (9 percent per year) or a
generic return on capital of say 9,5% for an entire corporation.
In such a scenario:
A. Cash Cows Business Units will beat their profit target easily; their management have an
easy job and are often praised anyhow. Even worse, they are often allowed to reinvest
substantial cash amounts in their businesses which are mature and not growing anymore.
B. Dogs Business Units fight an impossible battle and, even worse, investments are made now
and then in hopeless attempts to 'turn the business around'.
C. As a result (all) Question Marks and Stars Business Units get mediocre size investment
funds. In this way they are unable to ever become cash cows. These inadequate invested
sums of money are a waste of money. Either these SBUs should receive enough investment
funds to enable them to achieve a real market dominance and become a cash cow (or star), or
otherwise companies are advised to disinvest and try to get whatever possible cash out of the
question marks that were not selected.For each product or service, the 'area' of the circle
represents the value of its sales.
Only a diversified company with a balanced portfolio can use its strengths to truly capitalize
on its growth opportunities. The balanced portfolio has:

stars whose high share and high growth assure the future

cash cows that supply funds for that future growth

question marks to be converted into stars with the added funds
Prognostication, estimate of necessity, application of prognosis
prognostication
- forecasting the future by science
- modification of uncertainties measure of future development
- its result is prognosis – setting of qualitative and quantitative parameters of future events
and the term of their creation
basic methodological process of prognosis creation:
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- definition of prognosticate event and selection of temporal horizon
- structuring of examined system
- data analysis
- creation-of possible future of existent system by the models and scenarios
- selection of strategy on reaching of desired future
The Delphi method
The Delphi method is a systematic, interactive forecasting method which relies on a panel of
independent experts. The carefully selected experts answer questionnaires in two or more
rounds. After each round, a facilitator provides an anonymous summary of the experts’
forecasts from the previous round as well as the reasons they provided for their judgments.
Thus, participants are encouraged to revise their earlier answers in light of the replies of other
members of the group. It is believed that during this process the range of the answers will
decrease and the group will converge towards the "correct" answer. Finally, the process is
stopped after a pre-defined stop criterion (e.g. number of rounds, achievement of consensus,
stability of results) and the mean or median scores of the final rounds determine the results.
Delphi seems to have these advantages over prediction markets:
1. Built-in resistance to manipulation with no incentive structure.
2. Potentially quicker forecasts if experts are readily available.
3. Forecasts may be kept private.
Brief History of Delphi Method

Developed by Rand Corporation to assess impact of technology on warfare.

Used for a variety of forecasting studies, including technological predictions.

Increasingly being used for consensus building in policy development, strategy
planning, etc.
The Delphi method requires:
• Panel isolation and anonymous feedback to insure independent judgment.
• Multiple rounds with feedback to clarify views and move the panel toward consensus.
• Structured information flow, including careful analysis of results of each round.
• Quantitative analysis of subjective opinions.
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3. PRODUCTION Processes
Types of productions
Production processes
 are processes which transform inputs to outputs
 individual production processes are different from dependency on different characteristic
 are organized by different approach
Differences between processes are in:
 their physical entity
 character of produced goods
 area and details of TPB (technical production background) //
- TPB has 3 components - designing PB
- technological PB
- organizational PB
- character of machine control
- worker´s qualification (skills)
- form of control organization and assembling
- economic prediction
Production in aspect of amount of produced goods:
- piece production - individual piece production - so-called capital entity
- TPB isn´t elaborated in details, uses universal machine
- hight qualification of workers (because documentation isn´t detailed)
- difficult control
- serial production
- short-run production
- medium-run production
- long-run production
- mass production - character of produced goods is same (very similar)
- TPB is deep-dyed, documentation detailed, uses single-purpose machine, special appliance
and gears
- not to much qualified workers
- current organization form, planing is simple, hight claims on crew, production is hight
effective
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Types of production
Goods type
TPB
Qualification
Device
Machines
Complete
industrial plan,
machinery
Not so detailed
but large
Hight
difficult
universal
From simple to
Serial
complex
production:
short-,
medium-, long-
By higher level
of production
type, TPB is
detailed
By higher level
of production
type,
qualification is
lower
By higher
level of
production
type, device
is simpler
Detailed and
arduous,
prototype,
confirmation
series
Low
Simple
Piece
production
mass (current)
production
Ware of
individual
necessary,
normalized
components
Definitepurpose
Organization of production process and current of production
Organization of production process
 production process /PP/ is working on parallel places and in parallel time  have to coordinate (organize) it.
Organization part (PP):
1. Area part:
- co-ordination individual factors in area – area structure (organization of workplaces and material
current)
- area structure basic element - workplace
- co-ordination and workplaces grouping is influenced by specialization of production array
2. Time part:

bilateral co-ordination individual operation PP – time structure of PP (time knot, advance
accounting )
Basic workplaces class :
by the degree of specialization – workplaces in:
 piece production
 serial production
 mass production
by the degree of work technical evaluation
 hand
 machine - hand
 machine
 automated
 robotic
by the number of workers on workplace
 individual
 group
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
more machinery
Basic factors which influence area production organization:
- general factory
- communication network
- buildings character
- engineering networks
- type of production
- in-plant specialization
- operating equipment
- technological method of making goods
Area structure PP is definite by type of workplaces co-ordination:
- technological co-ordination
- workplaces for doing technological collateral operations
- especially in piece and short-run production (in beam house only lathes, in other only grinder, and so
on)
- large claim to area
- production current are crossing
 very flexible co-ordination, adaptive and little sensitive to production program changes
- objective co-ordination
- in one array are grouped workplaces which are needed to producing any type (beam house for
producing arbor or cog-wheel and so on)
- we know two forms of objective co-ordination
grouped - machines are not co-ordinated by the technological method (serial production)
current - workplaces are co-ordinated by the technological method (long-run production, mass
production)
- little transportation time, short distances
- hight effective
- little flexibility
- composite co-ordination
- in one technological co-ordination are groups, which are objective co-ordinated - star, box, cell
- uses for increasing effectiveness
- short-run production
- stationary co-ordination
- producing object is stationary, workplaces comes to it
- example – boat building
- individual co-ordination
- no rule exist
- example – beam house of service
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co-ordination
workplaces
Production
type
Material
current
Producing
field
Flexibility
Technological:
technological
smooth or
collateral
workplaces
piece,
short-run
Long and
complicated
transporting
times
Large claim to Hight
field, little
flexibility, low
limpidity
sensitivity to
mistakes of PP
Objective:
workplaces
grouped for
producing
individual
goods
P- group
are not coordination by
technological
method
serial
P - current
are coordinated be
technological
method
long-run,
mass
Short
transporting
ways and
times
Composite
Little
producing and flexibility,
storing fields hight
sensitivity to
mistakes
composite
in
technological
co-ordination
have groups
objective coordination
(cell, star)
short-run
constructing
mobile
workplaces,
producing
object is
stationary
complete
industrial
plant, large
and heavy
goods
individual
without rules
co-ordinated producing current - production line (flow-shop), current production
semico-ordinated producing current - grouped organization, composite production
nonco-ordinated producing current - technological workplaces co-ordination , i.e. beam house - (job
shop)
construction co-ordination - project organization
Basic factors which influence time structure of production process:
 length of technological operations
 charges amount
 approach delivery of charges pieces
 approach accession of producing device
 technological factors
 workers qualification
 length of transporting ways
 speed of operating equipment
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


time of control operations
time of breaks
level of production management
continuous producing time - time interval, which elapsed from first operation goods setting to ending
last operation and delivery it to store
production charge - number of pieces, which are non-stop dressed on one workplace with one-shot
time uses for constructing this workplace
transporting length - number of pieces, which are transporting together from one workplace to other
executing charge - number of pieces, which are use for doing i-operation in one step
Production organization increases changes:
- transporting center of production organization from production process to organization background
area and production operating
- mathematics models application and models for resolution placement problems
- change to higher production types
- uses organization flexibility of production process
Organization production process form
- concrete production process co-ordination in area and time
Factors, which influence organization production forms:
- production type
- goods character
- technology and technique level
Forms:
Phase
- for short-run production, is here technological workplace co-ordination
- large goods selection
- from the aspect of time structure – unrepeated importing goods in small producing charge
- continually passing
- non lap accession
- universal machines, universal appliances
- qualified workers
- advantage- hight flexibility, relatively little sensitive to machines mistakes, able to achieve hight
utilization of capacities.
- disadvantage – long and complicated transporting times, long continuous production time, hight
claim to production fields
- the oldest organization form
- usually uses
Current
- for long-run and mass production
- workplace co-ordination type is objective
- close production selection
- unending importing hight production charges
- little transporting charges
- overlapped accession
- special defined-purpose machines
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- advantages – very short transporting distances, little inner operating resource (only what lay on
desk), little costs on manipulation, hight work productivity, little continuous times
- disadvantage – hight sensitivity to mistakes
by the higher production type, adaptation to any mistakes is difficult!
allied by FORD
Group
- try to uses current principles, but not in so hight degree
- arrays are objective specialized
- group workplace accommodation , defined main material flow - but can exist abnormality
- transporting length can be dynamic changed
- periodically or aperiodically repeating importing
- little production charges
- passing production charges by composite or continuous approach
- usually overlapped accession
- serial, short-run production
- flexible production charges
Cell (nest)
- rise by combination phase and group characteristic
- create cells, which are objective co-ordinated
- rise from the reason to do production more effective (phase is flexible but not so effective)
- lower manipulation and transporting costs
- reduction continuous times
Constructing
 goods is stationary, workers and material have to transporting
Group organization form – uses principles group technology
Employment NC - 3forms:
1. individual
2. group – in real closed group 3-5 machines, in which accomplish close working circle – cells
(nest); if cell organization dominated, the special production equipment and background is
adjust
3. production system - integrated production parts from NC machines , production
groups designed and technological similar parts, integration technological methods
with manipulation, control and administration.
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Resource and capacity planning
Resource planning is a set of forward planning tools to help people balance future demand
and supply, to predict capacity problems with enough time to do something about them, to
create a load leveled master schedule, and to project supplier requirements well in advance.
Manufacturing planning and control entails the acquisition and allocation of limited resources
to production activities so as to satisfy customer demand over a specified time horizon. As
such, planning and control problems are inherently optimization problems, where the
objective is to develop a plan that meets demand at minimum cost or that fills the demand that
maximizes profit. The underlying optimization problem will vary due to differences in the
manufacturing and market context.
Production planning, at its core, production planning represents the beating heart of any
manufacturing process. Its purpose is to minimize production time and costs, efficiently
organize the use of resources and maximize efficiency in the workplace.
The identification of the relevant costs is also an important issue. For production planning,
one typically needs to determine the variable production costs, including setup related costs,
inventory holding costs, and any relevant resource acquisition costs. There might also be costs
associated with imperfect customer service, such as when demand is back ordered. A planning
problem exists because there are limited production resources that cannot be stored from
period to period. Choices must be made as to which resources to include and how to model
their capacity and behavior, and their costs. Also, there may be uncertainty associated with the
production function, such as uncertain yields or lead times. One might only include the most
critical or limiting resource in the planning problem, e. g., a bottleneck. Alternatively, when
there is not a dominant resource, then one must model the resources that could limit
production.
Capacity planning
Capacity planning is the process of determining the production capacity needed by an
organization to meet changing demands for its products. In the context of capacity planning,
"capacity" is the maximum amount of work that an organization is capable of completing in a
given period of time.
A discrepancy between the capacity of an organization and the demands of its customers
results in inefficiency, either in under-utilized resources or unfulfilled customers. The goal of
capacity planning is to minimize this discrepancy. Demand for an organization's capacity
varies based on changes in production output, such as increasing or decreasing the production
quantity of an existing product, or producing new products. Better utilization of existing
capacity can be accomplished through improvements in Overall Equipment Effectiveness.
Capacity can be increased through introducing new techniques, equipment and materials,
increasing the number of workers or machines, increasing the number of shifts, or acquiring
additional production facilities.
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Capacity is calculated: (number of machines or workers) x (number of shifts) x (utilization) x
(efficiency).
Utilization of the production facilities  70-80%
1. Desirable increase of capacity utilization
2. The less utilization – the more expensive production
3. The better capacity utilization – the better productivity
Disadvantageous capacity utilization projection = production time extension (in order to
prevent idle time, it is needed to move the operation elsewhere)
Production lines
4. First is known the product, time structure and after that are the machines obtained.
- It is not allowed to occur the idle capacity  the are used single-purpose machines
Minor types of manufacturing
- there are machines, and after that is recognized, which products is the company able to
produce
Methods of planning the utilization capacity
Forward planning:
Forward plan is a document that results from the process of forward planning. In broad terms
it sets out the aims and objectives of your organization over a defined period, matched against
resources and staff responsibilities. A forward plan can be as long or as short as necessary,
depending on the scale of your organization and what is appropriate to you, but it should
always include an associated action plan. The important thing is that it is clear, achievable and
realistic, and that the process of creating it helps you take steps towards achieving your
overall mission.
Backward assembly planning
An assembly planning system that operates based on a recursive decomposition of assembly
into sub assemblies, and analyzes assembly cost in terms of stability, directionality, and
manipulability to guide the generation of preferred assembly plans. The planning in this
system incorporates the special processes, such as cleaning, testing, labeling, etc. that must
occur during the assembly, and handles non reversible as well as reversible assembly tasks
through backward assembly planning. In order to increase the planning efficiency, the system
avoids the analysis of decompositions that do not correspond to feasible assembly tasks. This
is achieved by grouping and merging those parts that can not be decomposable at the current
stage of backward assembly planning due to the requirement of special processes and the
constraint of interconnection feasibility. The invention includes methods of evaluating
assembly cost in terms of the number of fixtures (or holding devices) and reorientations
required for assembly, through the analysis of stability, directionality, and manipulability.
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Capacity and time restrictions
Causes conflicts, which have to be solved  there exists 2 possibilities:
1. it is necessary to take into deliberate the real capacities (capacity restrictions) and
then is build the schedule – it is used by forward planning
2. Capacities are quasi infinite and there are used terms required by the user. In case
of the conflict possibility, i tis necessary to solve this problem (supplementary
capacities or modification of the Schedule) - it is used by backward planning
Higher control (planning) levels - backward; rough calculations
Lower control (planning) levels – more accurately plans - forward; calculated with limited
capacities
Operative plan capacity balancing
Aim of the capacity balancing
- Possibilities verification of planned production tasts by hardware device and by workers
- Measure adoption for production tasks harmonization with possibilities of production
capacity balancing steps
 setting the production capacity
 setting the capacity for planned production tasks realization
 comparison of disposable and necessary production capacity and receiving arrangement
for disproportion removing.
a) Setting the production capacity
Capacity
 Capacity planning is the process of determining the production capacity needed by an
organization to meet changing demands for its products.
 Capacity of the production unit may be determined by many ways and express in natural,
time and value units of measure
The most objective and most exact expression of the production capacity is in natural units

 Production capacity in this case:
Amount of definite products, which certain production facility or a group of production
facilities is able to produce in certain period
 use – for capacity balancing only in conditions of higher types manufacturing (production
in large series, mass production with small range of goods
production capacity expression in time units

 maximum possible time usage of the machinery, workers or production plane in some
period
 expression by the time fund – calendar, nominal and effective time fund časový fond
23
calendar time fund - conjunction of calendar days in a year (365
days) and hours in a day (24h)
- is the base of capacity production of continual production
Nominal time fund - conjunction of workdays and hours in
working shift (in machine industry usually 2 shifts = 16 hours)
Effective time fund - determined on the base of nominal time
fund, by substraction of the time needed for repairs and
machinery adjusting
- time expression of the production
capacity (effective technical capacity)


usage - unit production and serial production
more universal than expression in natural units
b) setting the capacity necessity for operative plan tasks assurance

the second step the operative plans of the capacity balancing is the calculation of the capacitive
load with plan tasks.
c) self capacity balancing

Disposable capacity comparison to capacity consumption  usually is determined the existence of
capacitive disproportion
Capacity and resources planning
After setting the time of production preparation, times needed for individual operation, date of
start and production finish capacity plan verification – if there are available capacities the goal is to assure observance of terms and cut-down the idle time

 completion and modification of the schedule  definitive loading plan of the machinery
for the closest days, weeks, months
Costs planning target – total costs definition for job realization and its minimalization;
After capacities plan and costs design – project realization, i.e. self production- customer
acquaintance with the manufacturing process, manufacturing operation.
Production capacity of the machines and production facilities calculation
- usage of the 3 basic formulas
production capacity - Qp
Q p = Tp * V p
24
Qp
Tp
Vp
- production capacity couched in natural units
- usable time fund in hours
- power in natural units per 1 hour
The production capacity calculation through the capacity of work difficulty – used in
machine manufacturing by mechanical working

Capacity of work difficulty in hours - tk
t
tk = k1 * k2
t - standard of work difficulty in nh (normohours)
k1 - standard fulfilling index
k2 - progression index
Calculation of the production capacity :
Tp
Qp = tk
production capacity utilization - kc
Qs
k c = Qp
kc - total production capacity utilization coefficient
Qs - real production volume
Qp - production capacity
factors that affect the level of production capacity utilization
- production plan
- real working time
 machinery performance utilization
capacitive reserve – production volume, which can be able to be produced by full production
capacity utilization
- divergence Qp - Qs
total production capacity utilization coefficient
 synthetic indicator
 = real reached volume of production Qs
Q s = Ts * V s
Ts - real machine uptime
25
Vs
-
real machine performance
total utilization of the production capacity coefficient utilization
 we get:
time utilization of the production capacity coefficient
performance utilization of the production capacity coefficient
if is the production capacity calculated by formula
Tp
Qp = tk
i.e. through the usage of capacitive standard of work expenditure, it is possible to measure it
as follows:
Qs
´=
Qp
Ts
Tp
where ts - real work expenditure of the product
26
tk
ts
Organization production process forms
phase
Production
type
Workplace co-ordination
selection
importing
delivery
accession
Machine type
workers
piece,
technological
large
unrepeated
continuous
no lap
universal
qualified
Low
qualification
short-run
current
long-run, mass objective - current, stable
transporting relations
Normalized
accessories
unending,
large VD
parallel
overlapped
Definedpurpose,
specialized, gear
and equipment
group
serial,
objective - group by the
production flow, unstable
transporting relations, close
production circle, all equipment
which are needed for production
are nonco-ordinated by the
technological methods
Constructing
and
technological
similar part –
group
technology
periodically or
aperiodically
repeating in
little VD
composite or
continuous
usually
overlapped
one-shot NC,
cultivation
centers can have
form PVS
combination
phase and
group
characteristic
composite – in technological coordination is created objective
specialize group - cells
On base of
group
technology
mechanized b. universal
piece
constructing
One-shot
projects boats,
furnaces
Cultivation
centers
short-run
cells
constructing
automatized b. group NC
machines with
service roboto
- 27 -
Operation scheduling
- the lowest level of planning
- detailed description of that, what would be produced, when and on which machines
The most often are used heuristic methods:
- they are not optimizing methods
- these methods in majority of cases find suitable solution, which suits to limiting
conditions
- it is not obvious, to what extent the solution is good, because optimal solution is not
known
- they are based on experiences, using knowledge from some previous action
Scheduling of production in the system of planning and production managing
Main aims of scheduling
- maximum utilization of machines
- maximum degree of completion and minimal continuous time
- minimize of inaccuracy function
Scheduling principle
Input data into scheduling – operational production plan for certain planning period
Scheduling objectives
1. assign operations to production facilities – entering into production with aim to design
a removal profile of capacity units
with this realization we should achieve to work out individual sources, workplaces
average wait times and transports are used
Two basic approaches:
 forward loading
 backward loading
2. to define processing order of individual products in process of production –
sequencing
effort for minimize continuous time and maximize of machines using
Forward loading



it starts with actual point in time, products are assigned to workplaces towards future
on the workplaces the capacity demands which are under consideration time periods
are cumulated; it is possible to consider of final or unlimited workplace capacity
time scheduling horizon could be overrun – no fulfillment of product delivery time
28
Backward loading



products are starting to assign into workstations from the term of their eduction
backwards, in actual term, assigning starts at latest possible term, minimalization of
working out, short continual periods
it is possible to over step capacity border of workplace
terms of overrun are not over stepped
Assignation order of processing production task
it is necessary to define superior selection rule – according it the products are chosen from
line and are assigned to working places
to assign rule for choice of machine, that performs right operation
Production
plan
Customers
Request
Verification of capacity
possibilities
t0
Term in unknown
Term is known
Forward planning
Backward planning
t1
t2
t installation
t0
t1
Result, term, capacity
Release of order
Picture 9 Forward and backward planning
29
t2
t installation
Formation of Gantt diagram –possibility of evaluation plan from the piont of view of
products and production source
Hand made Gantt diagram – demonstrative in simple tasks
More complex problems – computer programs are used
Forward
loading
Operatio
n
01
02
03
04
Backward
loading
Operatio
n
01
02
03
04
Picture 10 and 11 Gantt diagram, forward and backward loading
30
Techniques and methods of scheduling
Conventional methods
New methods

Techniques of artificial intelligence and
knowledge systems
Techniques with use of neuron nets
Techniques with use of modeling and
simulations

Mathematical programming
approaches – linear programming,
dynamic programming
Heuristically oriented approaches
Dynamic programming
It is the technique for solving problems, it is not summary prepared algorithms. It is necessary
to create algorithms to concrete tasks
Heuristically oriented approaches
The most used are those, which are progressively choosing one task along with creating
complete sequence, the easiest progress. Tasks are chosen in the way that if once comes to
solution, it is not allowed repeated consideration of alternative solutions
Techniques of artificial intelligence and knowledge systems
Artificial intelligence- suggestion of intelligent computer systems, which are showing features
typical for human being intelligence
Techniques with use of neuron nets
Nets are used for identification of rule candidates for simulation analysis, in every point of
neuron net the candidate is generating rules for every type of problem and this rule is
evaluated by simulation, simulation passes under different entrance conditions
Techniques with use of modeling and simulations
Discrete event simulation as a scheduling tool, simulation is designed as a tool for evaluation
of scheduling rules
Simulating model is initialized from actual state in production
Place of scheduling in systems of planning and production controlling
Module that deals with scheduling is using information from modules TPV, material
planning, capacity planning, supplies control and control of customer requests
31
Source requests of plan
Aggregate production
planning
Rough capacity planning
Operation planning
Capacity requests of plan
Material requests of plan
input/
output analysis
analýzy
Offer management
Workshop system
of scheduling
Dynamic management
Picture 12 Place of scheduling in PPS systems
Place of scheduling in PPS systems
Required input and output
information
Place
of scheduling in PPS systems
Place of scheduling in PPS systems
Input information
Output information
production plan
Input to production
Products structure, components
Production order
Production procedure, operations
Working sheets
Technologies used, production sources
production currency
Working sources
Calendar of changes
32
MRP systems
Planning and controlling production system - PPS systems  has base in material economy
planning systems, which are oriented to methods which define size of material charges,
considering to orders of customers.
First computers supported planning systems for planning materials needs  MRP systems
(“Material Requirements Planning”).
MRP systems - constant definition of primary requirements for production assurance
- predicted knowledge of production program by the sort, amount and terms
- from know primary requirements find out claims for subordinated subgroups, equipments,
material, sources and resume them to production charges - have to exist adequate database
with pieces arrests and items.
MRP systems account:
- accomplished with computer supporting brake-ups of any finally goods to primary
requirements.
- goods structure and its subgroups execute with uses information database system.
- necessary subordinated equipments for any time period was find out quantitative and with
time specification.
- all material economy can by planning with supporting software system and MRP.
Planning method with MRP:
1. comparing gross necessaries (necessaries to finally goods, main subgroups, alone
equipments) with usable (disposition) state in store
2. they transformation to clear necessaries
3. production orders generation with the accent to production time.
33
Time oriented planning diagram with MRP:
Thought day
MRP SYSTEM
0
goods
WELDER
Gross necessary
Store state
2
3
20
Planning enter to
store
Running production
time = 2 days
production charge = 20
pieces
1
6
40
20
10
30
Production
charge
10
10
20
gross necessary
Running production
time = 1 day
production charge= 15
pieces
5
10
20
20
0
10
10
20

subgroup
TRANSFORMER
4

20
20
Planning enter to
store
Store state
5
Production order
5
0
15
15
15
15
10
MRP system structure
If
we want to have 1, 2, 3, we need to do production background – circle plan.
Pieces define structure of produced goods (what and how many is need to goods produce).
smaller about it).
34
MRP:


not acceptable for all production control requirement
also, we know, what to do, we need to know, what we have in disposition
MRP II
New systems for production plants are based in MRP
- production program planning level increasing (including market prediction and customers orders
control)
- increasing of term and planning capacity level and production control
MRP II (“Manufacturing Resource Planning”)
- orientation to production sources planning.
MRP II characteristic:
- all information current, planning function and production control integrate to one logical chain cross
material current,
- using continuous planning principles  production process hierarchy support.
MRP - material requirement planning
MRP II - manufacturing resource planning
MRP II - production sources planning:
 it’s updated MRP system about capacity balance sheet work
 it’s in software image (part or full)
35
Production is automated – higher flexibility  by the higher flexibility, complication planning level
increasing.
Production flexibility increasing by creation more variants of technological methods.
for example.
Hole we can drill or swing; if the capacity for one variant is empty, we can use capacity for another
variant.
36
37
JIT
base idea – to optimized buffering stocks, which help us to control supplies level; high
supplies level = small effectiveness
 more then supplies control – philosophy based on continual deficit finding out and
elimination on all organizations levels.
JIT can see as:
- philosophy or full access to production
- technics which are used for production system design and operation
- beam house control system - kanban = dispatch note.
Decrease supplies level  way to higher production effectiveness (smaller requirements to
storing, to beginning production, lower biding capital).
By decreasing supplies level we can see hidden problems.

Two problems source:
 extern – mistakes in delivery - customers relations
solution = build reliable stable delivers chain and reliable customers
experience: leading JIT without delivers and customers support is from long time point of
view untenable, because cost of storing is transporting from delivers or customers
(have to create save storage, that they have to be able do theirs contracts pledge in
relations to plant with using JIT principles) - have to supporting delivers and customers in
getting the JIT system – only in that way we can reach increasing effectiveness level in
full first chain from first production to finally customer

intern – mistakes which reach as consequence of quality deficient (material, production
engineering, production process organization, work power, goods and technical
documentation design)
solution = complex quality increasing and monitoring - TQM, active production process
quality assurance - SPC; it try to do ZD (zero defects).
Aim of JIT:
1. dodge to generality:

by the customers – fast change of claim and preferences – although we need to retain
adequate costs, offer palette of goods and short delivery dead-lines
to assurance, we need to think about it in phase of production design - modular principle in
goods design increase production effectiveness and increasing production palette
flexibility  higher production among in individuality conservation ( incorporated bogie
bench VW, integrated circumference – hardware development beginning 70´s years after
production integrated circumference )
production flexibility – achieve by organization shorting, using NC centers and versatile
qualified workers

by the delivers – first step in production
important in storage nonexistence to achieve quality and right supplies or blank in right
time
anyone deliver have to be informed forward about customers production plan and
qualitative claim to decreasing time which is needed for production control, do delivers
audit with claim to logic increasing.
38

by the workers
o
absence and another problems can be reduced with right workers motivation,
increasing the work claim (safety, ergonomics), work organization – delegation
responsibility to quality and organization they work, higher work motley(quality
circles) and easy identification their portion to making good
o
workers education - achieve decreasing level of goods mistakes
o
preference before making simply monotone operations continuously by many
workers (no production links, better production links cells) have to be making
complex operations by one workers 1 worker don’t doing only 1 operation, but
close technological entity  worker universality

by claim of trade – this is not anytime constant
JIT – successful only in where are sufficient flexible production means to absorb small
deviation in trade claim.
2. avoid the loss:
 overproduction – two events of losses from overproduction :
a) qualitative overproduction – production is higher then consumption – losses arise be
supplies using, energy, people and machines, storage space, transporting etc.
solution – better planning and prognoses and reliability of production means
b) almost production - goods (semi-product) are almost finished, as we need their to montage
– have too temporary storage
solution - implementation right planning production system

a)
b)
c)
d)
e)
f)

idle time and production storages – mistakes in continuous production current process can
by reduced primary production planning system
minimalization production storage (and production budged):
reduction of time line up
decreasing transporting charge – decreasing production making
rebalanced capacity
granting sufficient production flexibility and sufficient capacity for absorbing season
necessity fluctuation
modular goods structure
reliable production equipment, unending process increasing
transporting – using gravity power, U – production cell form, or links, time snap
 mistakes – cause production slowing
minimalization number of mistakes:
a) prevent upkeep
b) using effectiveness equipments to process control (higher degree of automation)
c) minimalization of people overburden and machinery
d) implementation of all safety rules
3. continuing improvement:

effective increasing, looses elimination, indemnity for reliability, making production
discipline etc. (unending process)
39

KAIZEN philosophy  sense to have trying achieve production without mistakes for
all goods, because mistakes destroying continuous production current (continuously
increasing process).
Advantages JIT:
- decreasing of waiting time - interoperable and other storage
- decreasing of operating time – workers training, whose are qualified and usable in many
ways
- reduction transporting times – production systems design with using cell structure in U form
- decreasing time line upping - group technology and SMED (Single Minute Exchange of
Dies)
boat  company
height of sea-level  height supplied; in decreasing sea-level (interoperable supplies) is
showing more problems, which was near high sea-level hidden – showing to light of sun

higher risk production obstacle – need advanced control
By the higher level interoperable supplies is better overcoming machine mistakes, but the
prices increasing.
When decreasing the sea-level, we need to destroying what it above than.  Low level of
supplies need high quality.
JIT - including TQM, which is concentrating to quality control and searching causes why
rising mistakes
- base on group technology
- can be used only when, if it have or have to respect by delivers; have to by good delivery
and customers relations
40
JIT limitations:
- JIT is successful, if audit only moderate fluctuate
- usually go about higher type of production (long-run serial production) – cell production,
production links, current production – anywhere, where is need to arrange the production
- shouldn’t anticipate to production innovations usually
- we don’t betoken requirements on production, we have to be able adjust their
- JIT failing when mistakes rise, which are not betoken
41
PPS systems – production planning and control systems
Production planning and control systems are in English and America literature presented
under the name:




Production Planning System (PPS)
Production Planning and Control (PPC)
Manufacturing Resource Planning (MRP II)
Production Management System (PMS)
In German literature are production planning and control systems presented as PPS systems ,
which is short form from German:
 Produktionsplanung und - steuerung (PPS)
In Czech literature abbreviation PPS is used for the area of production planning and
production controlling.

Production planning systems(PPS)

PPS – for all systems which contains and solves functions, that belong to area of planning and
production control.
PPS structure
PPS system activity - is conditioned by existence of suitable database
PPS system
PPS system demands

Production program
planning

material items planning - quantity

term and capacity planning

Production control

Fulfilled requests
Picture:13 PPS structure
42
Tasks of PPS systems
- to secure scheduling of customer’s order by production
- to coordinate ordering process by production, in a way to fulfil its realization in optimal
relations
PPS system is solving two main areas:
Production planning
- define assortment and quantity of production orders, that should be released – place an order
into production
- to secure their term layout for available production facilities
Production controlling
- connects on tasks of production planning
- coordinates reciprocal action for basic elements of production process
- coordinates reciprocal action of main and helping production processes
Tasks of PPS systems are possible to cumulate into six basic functions (picture below) - in
practice are differently modified – it is caused by:
- the character of production tasks ( difficulty and quantity of final products), their further
development ( reduction of production and change of continuous times)
- aspects that characterize production process- proportionality, parallelism of operations and
concentration of production, division of labour, automation degree
- organizing conditions
43
Picture 14 Basic structure of PPS system
Data administration
- common for both areas of PPS
- collection, processing, administration of all basic data needed for PPS system
- basic data:
 information about suppliers
 information about customers
 information about products and orders
 bills of materials
 information about production structure
 technological process
 information about production tools
Production program planning
- realization and creation of gross production program ( production quantity, amounts and
terms)
- activities:
 demand requests
 planning of customer orders
 gross terming of customer orders
44


informative calculation of capacities
gross calculation of material usage
Planning of quantity
- arrangements that are needed for security of material production, in regard of product type,
quantity and terms
- entrance bases – production documentation, size of reserves
- specific activities
 planning material requests
 calculation of reserves
 calculation amount ordered
 material ordering
Term and capacity planning
- designates capacity demands and time schedule of production, occupied capacities are
taking into consideration during calculation
- technological processes consist of :
 time schedule of production orders
 calculation of capacities
 harmonization of capacities
 planning continuity of production
Controlling of production orders
- characteristic activities:




releasing of orders into production
preparation of production documentation
control of the production safety
short term schedule of production
Monitoring of production orders
- control the making progress of production order
- activities
 control time keeping of schedule in short term production
 control of quantity
 control the fulfilment terms of production orders
 control of machine capacity usage
Requests on PPS
Users request from PPS systems:
 ability to respond quickly on customer’s demands from the view of size, terms and
properties of products
 ability to introduce new products into going production
 keeping beneficial production costs
45





accurate forecast of material demands
possibility of early recognition and mastering the capacity differences
unloading from routine activities
support the production control, which is oriented on material flow
stabilization of production program
LOGISTIC
SALE
short
time
deliverie
s
high
flexibility
low
supplie
s
short
continuous
times
PPS
optimal
amounts
high and
equalable
capacity
itilization
real
orders on
production
definite
orders on
productio
n
PRODUCTION
Picture 15 Concurrent demands on PPS systems
Choice and application of PPS system
-
application of PPS system into company – high costs
-
PPS system needs to be adapted on real company conditions, that are the most modified
by:
 company profile
-

actual company’s organizational structure

actual structure of production

progress of material flows

existent structure of system collecting and data processing
PPS systems can perform functions only when they are using high- class database with
reliable system of changes actualization
Before implementation of PPS system we need to:
1. analysis of actual situation in company
2. setting the goals, that we want to achieve before implementation of PPS system
3. perhaps reorganization of company in area:
46

adaptation of organizational structure

improvement of organization in material and information flows

structuring the processes in production
1. suggestion of structure in computer assisted collection and treating data
2. implementation of PPS system:

establishment of strategy in system implementation

design the time plan in system implementation

control of implementation- continual controls
Picture 16 General funkcions of PPS
47
MES SYSTEMS IN HIERARCHY OF INFORMATION AND CONTROL
SYSTEMS IN PRODUCTION COMPANY
Effective control of production company is not thinkable without adequate use of information
technologies and information systems.
Information systems assigned to individual business areas:
- They are in different phase of their life-cycle,
- they are developed and operated on different technology and architectures,
- they are characterized by diverse level of openness,
- usually they are not interconnected.
Two fixed areas of information at production company:
- technological, control and information systems (control of production processes),
- information systems assigned to support of control of all company.
Striving of companies – integration of both levels to general information system, which can coordinate
all of production activities (receiving of customer order - production – expedite of final product)
It exist several various conceptions to integration.
Relatively new access = concept MES (Manufacturing Execution Systems).
MES renews an originally two-levels hierarchy (interlayer, which can integrate them).
General contributions of effective connection of both areas:
 the more effective production management and contiguous processes – by level
connection, the information, which are not available until now, or their acquirement was to
hard or long, are accessed to users on particular level of management.
(information acquired by non-automated way is characterized by significant measure of
inaccuracy, non-topicality and incompleteness),
 faster reaction to defects/anomalies – by observing of production process in the real time it
allows to respond to defects of required (drafted) status immediately – loss fluent from
delayed look to process in production are minimized,
 degrade of hand (off-line) inquiries and transmissions of data from production to IS at
superior level.
MES performs four primary functions:



Collects data (e.g. bar-code scanning) in real time.
Organizes and stores data in a centralized database.
Makes data accessible throughout the network, and integrates critical data from other
information systems such as planning and accounting.
 Delivers and manages orders from ERP to production, with detailed scheduling
reacting to real-time events, increasing productivity and quality
Benefits of using computerised MES



Reduces manufacturing cycle time
Reduces or eliminates data entry time
Reduces work-in-process
48







Reduces or eliminates paperwork between shifts
Reduces lead times
Improves product quality
Eliminates lost paperwork
Empowers plant operations people
Improves the planning process
Improves customer service
Full Functions of MES – by MESA












Resource Allocation and Status
Operation/Detail Scheduling
Dispatching production Unit
Document control
Data Collection
Labour Management
Quality Management
Process Management
Maintenance Management
Product Tracking and Genealogy
Performance Analysis
Core Functions of MES









Planning System Interface
Work Order Management
Workstation Management
Inventory Tracking and Management
Material Movement Management
Data Collection
Exception Management
Manufacturing Intelligence
Support Functions of MES








Maintenance Management
Time and Attendance
Statistical Process Control
Quality Assurance
Process Data / Performance Analysis
Document / Product Data Management
Genealogy / Product Traceability
Supplier Management
The position of MES systems in hierarchy of information system of company
MES systems
The software interlayer, which is set between the control systems at process level of production
control and the systems working on managerial level of company
Between levels overshoot two way simultaneous communication, at which MES realizes an important
function of integrator of both level.
49
ERP systems:
- they don’t work in real time, therefore time factor is 100x,
- they index orders of customers, demands at production resources (people, machines,
- they send the generated production demands to the MES layer.
MES systems:
- they account for pursuance of production tasks, i.e. for conducting of all operations
contiguous with product production,
- they send the specifically instructions how to make into level Control,
- they work with radix lesser time factor then ERP (10x), but there isn’t still the real time.
When are all instructions, production documentation, programs and other production demands
accepted by procedural layer, on this level can come to production operations flow. Working
mode is realized in the real time – time factor 1x.
The particular levels work with data, which are characterized by:
 various level of abstraction (operation process, documents, control signals),
 various period of processing (milliseconds – real time, minutes till tens of minute –
transoperational regime),
 various data structure (unstructured documents, structural drawing, records in databases),
 various level of precision (scanning parameters and control signal prognoses, planes,
estimates,
 various subject of processing (management staff, executive productive operatives,
machines and devices)
Possible solution of data flows between levels MES and ERP and between MES and
systems of procedural control are insinuated on the followings pictures
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Picture 17 Solution possibility of data flows between MES and procedural control.
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Picture 18 Solution Possibility of data flows between ERP systems and MES systems.
MES Context Model
SSM – Sales & Service Management
SCM – Supply Chain Management
ERP – Enterprise Resources Planning
P/PE – Product and Process Engineering
Controls – PLC, DCS, line and machine control
Picture 19 the relation between MES and other enterprise activities
MES provides an information hub that links to and sometimes between all of these systems.
MES overlaps with other manufacturing system types, which also overlap with each other.
For example, scheduling may appear in both MES and SCM; labor management in MES,
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SSM, and the HR function of ERP; document control in MES and P/PE; and process
management in both MES and Controls
MES Functional Model
Basic functions of MES systems are follows:
Picture 20 Basic functions of MES systems
1. Resource Allocation and Status
This function tracks resource status and maintains a detailed history. It ensures that equipment
is properly set-up and that resources and other entities such as documents are available for a
production activity to commence. The management of these resources includes reservation in
support of the Operations/Detail Scheduling function.
2. Operations/Detail Scheduling
Provides sequencing of independent activities based on priorities, attributes, characteristics, and/or
recipes associated with specific production units with the objective of meeting user defined
performance goals. It is finite and it recognizes alternative and overlapping/parallel production
activities in order to calculate, in detail, exact time or equipment loading and adjust to shift patterns.
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3. Dispatching Units
Directs workflow of production units in the form of jobs, orders, batches, lots, and work
orders according to production plans and detailed schedule. Dispatch information is presented
in the sequence in which the work needs to be done and changes in real time as events occur
on the factory floor. It has the ability to alter prescribed schedule and/or production plan on
the factory floor. Additions and alterations may include material preparation and handling,
and process operations such as rework, recovery, and salvage. Dispatch also has the ability to
control the amount of work in process at any point with buffer management.
4. Document Control
Controls, manages and delivers information packages associated with the production unit,
including work instructions, recipes, drawings, standard operation procedures, part programs,
batch records, engineering change notices, and shift-to-shift communications. For example, it
sends instructions to operators or recipes to device controls. It also supports editing "as
planned" information and maintains version histories of specifications. It would also include
the control and integrity of environmental, health and safety regulations, and information such
as Corrective Action procedures.
5. Data Collection / Acquisition
This function acquires and updates production information used for product tracking,
maintaining production histories, and other production management functions. It may use
some combination of scanners, entry terminals, and software interfaces to manufacturing
controllers and other software to perform this function. The data may be collected from the
factory floor either manually or automatically in an up-to-the-minute time frame.
6. Labor Management
Provides status of personnel in an up-to-the-minute time frame. Includes time and
attendance reporting, certification tracking, as well as the ability to track indirect activities
such as material preparation or tool room work as a basis for activity based costing. It may
interact with resource allocation to determine optimal assignments.
7. Quality Management
Provides real-time analysis of measurements collected from manufacturing to assure
proper product quality control and to identify problems requiring attention. It may
recommend action to correct the problem, including correlating the symptom, actions and
results to determine the cause. It May include SPC/SQC tracking and management of off-line
inspection operations, and analysis from a laboratory information management system
(LIMS) could also be included. (SPC- Statistical Process Control; SQC -Statistical Quality
Control).
8. Process Management
Monitors production and either automatically corrects or provides decision support to
operators for correcting and improving in-process activities. These activities may be interoperational and focus specifically on machines or equipment being monitored and controlled,
as well as intra-operational which is tracking the process from one operation to the next. It
may include Exception management to make sure factory personnel are aware of process
changes that are outside acceptable tolerances. It provides interfaces between intelligent
equipment and MES, possibly through Data Collection/Acquisition.
9. Maintenance Management
Tracks and directs the activities to maintain the equipment and tools to insure their
availability for manufacturing and insure scheduling for periodic or preventive maintenance
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as well as the response (alarms) to immediate problems. It maintains a history of past events
or problems to aid in diagnosing problems.
10. Product Tracking and Genealogy
Provides the visibility to where work is at all times and its disposition. Status information
may include who is working on it; component materials by supplier, lot, serial number;
current production conditions; and any alarms, rework, or other exceptions related to the
product. The on-line tracking function creates a historical record, as well. This record allows
traceability of components and usage of each end product.
11. Performance Analysis
Provides up-to-the-minute reporting of actual manufacturing operations results along
with the comparison to past history and expected business result. Performance results include
such measurements as resource utilization, resource availability, product unit cycle time,
conformance to schedule, and performance to standards. May include SPC/SQC. Draws on
information gathered from different functions that measure operating parameters. These
results may be prepared as a report, presented on-line as current evaluation of performance, or
used to trigger alarms when derived parameters deviate from acceptable ranges.
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Flow of information between MES and other software tools
Picture 21 Flow of information between MES and other software tools
Figure shows the flow of information from MES to the other major types of systems. It isn't
shown in the figure but the others systems also feed MES with information. ERP feeds MES
with plans that will be used by its work dispatch. The masters plans and schedules from
Supply Chain drive the timing of activities from MES. Product and Process Engineering give
work instructions and data from Controls is used to measure actual performance and operating
conditions.
It should be noted that there is an overlap of some functionalities between MES and the other
systems, but MES is always focused in operations management.
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Revolution in manufacturing control

APS system - marked as BaanSCS (Baan Supply Chain Solutions)

Software system designed to integrate with ERP and MRP systems to enhance the short
term production planning and scheduling.
What is planning and scheduling
The basic idea of scheduling is to determine the timing and location of activities that will be
conducted in a process to meet a set of orders or demands from customers. The rocess to be
scheduled consists of a set of equipment, people, materials, and other resources that must be
coordinated to meet the demands of the customers. An order or demand to be scheduled is
typically given as a due date and quantity of material or an end state to be achieved. A
schedule must take into account what is currently being executed in the process, satisfy all the
process requirements, and consider preferences of people who understand the business
implications of making tradeoffs. Planning refers to exploring the possible behavior of a
process over a long period of time or under different conditions than those that currently exist.
The planning process is used to answer what-if questions such as

How will capacity improve if additional equipment is purchased?

What are the implications of cross-training operators?

Which options will best reduce overtime?

What is the best due date to promise a potential customer?

Where should research & development dollars be spent to best improve a process?

Is there enough capacity to meet expected demand?
APS systems
- APS = Advanced Planning and Scheduling
Many definitions of an APS system are possible. Practically speaking an old-fashioned
planning and scheduling system involves using planning boards, whiteboards, or pencil &
paper. An “Advanced” Planning and Scheduling system is usually defined to be one that is
computer based. Using this definition there is a wide variation in sophistication and cost of
APS systems.
What is the Value of an APS System?
Hard data on the financial value of planning and scheduling is difficult to collect because
people rarely conduct a controlled before-and-after experiment for an APS system
installation. Also very few academic studies have been completed. As a result most success
stories and customer testimonials are anecdotal in nature. Considering these caveats, the
available data suggests that the estimated improvement attributable to effective planning and
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scheduling is 5% to 15% as measured by a decrease in process costs (e.g. waste, changeover,
inventory reduction) and/or increase in process throughput. In order to achieve this
performance an APS system must be used in an effective business process whereby the data
used is reasonably accurate and schedules and plans must be executed with reasonable
precision. To achieve consistent results the planning and scheduling process must be repeated
when business conditions change appreciably. Finally since the cost of an APS system is
usually small with respect to the capital and operating costs of a process, any improvement
usually accrues directly to profit. As such an APS system that works can be a good
investment.
Comparison of APS and ERP systems
Value addition
ERP Transaction support of
company process
APS
Optimal progress
searching
Number of final
customers
high (tens, hundreds of
customers)
low (exceptionally tens
of customers)
Time aspect
Typical implementation
12 – 36 months,
economic return 2 – 5 years
Typical implementation
6 – 9 months,
economic return 0,5 – 1 year
Comparison of APS and ERP systems (Enterprise Resources Planning)
Supply Chain Management
Typical Features
 Demand Planning
 Looks at past performance and historical trends to determine how much
product should be made.
 Supply Planning
 Covers replenishment requirements and makes sure safety stocks are at
appropriate levels
 Manufacturing Scheduling
 Looks at available resources and devises a production schedule based on
"constraints", or real-world restrictions. It can automatically adjust
manufacturing plans if certain supplies are unavailable or a key employee is
out sick.
 Transportation Planning
 Determines the best, most cost-effective method for warehousing and shipping.
In addition, some supply chain products can contain some of the following, less common
features:
- Graphical Supply Chain Modeler
-
Supply Chain Optimizer
- Performs linear program simulations for creating an optimized plan.
Forecasting
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Baan's supply-chain solution
This is a suite of integrated applications covering supply-chain network design, demand
management, supply-chain planning and order fulfillment, factory scheduling and execution,
and logistics planning. Each of these applications has further components.
BaanSCS designer
This graphical strategic decision tool lets you model your supply chain. For example, you can
define appropriate resources, such as transportation and inventory and also, look at the costs,
revenues, and constraints in your supply chain. Its key features include: Interactive map-based
graphics; drag-n-drop functionality; easy-to-use wizards; standard data templates for Excel
and Access; and Scenario manager for defining and analysing multiple scenarios.
BaanSCS planner
This helps in developing manufacturing plans and takes into account the cost, resources,
constraints, and the demand forecasts to meet the customer demand. Its features include:
Graphical analysis tools; multi-plant planning based on resource availability and logistics;
integrates planning data from BaanERP and other ERP systems.
BaanSCS scheduler
The Scheduler helps in creating manufacturing schedules by coordinating the plant activities
with the market demand orders and resources available. You can also change production
schedules in response to customer demand. It has a real-time graphical display of order status
and production data which helps eliminate bottlenecks. It also provides sales people accurate
order-delivery information and can be integrated with the BaanSCS planner.
APS systems usage
- For companies which skirmish with one of the following factors:
wide supplier base
logistical complex production processes
complex and complicated distribution
expressively fluctuating demand for products
- Good application in:
Grocer’s, drinks, consumer goods, traffic optimalization and industrial goods
Chemistry, machine industry, automotive industry
Shoemaking industry, clothing industry
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