An introduction to the ProSim
production management
simulation
A
virtual company which manufactures &
markets three products (X, Y, Z)
 Existing supply chain processes in place
for key Marketing & Sales, Production
Planning & Control, Purchasing &
Payment
 You will manage the PP&C process
 Process redesign or supply chain
restructuring are out of scope for now
Inventory
Throughput
is the goal … or The Goal?
 How is this measured?
 What do we need information-wise to
make Goal oriented decisions?
 What analysis or information systems
based tools might help with the details
and mechanics?
Operating Cost
 What
 Visit
ProSimPlanner Worksheet
 Where is the bottleneck?
 Maximum throughput?
 Assumptions regarding labor
productivity, efficiency, and rejects
 Purchase
cost?
 Make cost:
• Labor (labor productivity?)
• Machine time (machine efficiency?)
• Materials (reject rate?)
 Products
are produced based on weekly
schedules
 Products are shipped at the end of each
‘month’ (i.e., every 4th week at the end of
weeks 4, 8, 12, …)
 Last year’s monthly demand data are
available
 Current month sales order base forecasts
are adjusted weekly
 Master
Production Scheduling (MPS)
 Materials Requirements Planning (MRP)
 For ‘simplicity’ we
will only use workers 1
thru 9 this term; you can fire if you want
but cannot hire (or re-hire).
 Parts
demand?
 Ordering & setup costs?
 Holding & carrying costs?
 Classic EOQ conclusion?
 Materials
demand?
 Ordering & setup costs?
 Holding & carrying costs?
 Classic EOQ conclusion? (watch time
units – week, month, year?)
 Volume discounts?
 Adjusted EOQ conclusion?
 Quality
control plan
 Facility maintenance plan
 True
execution point – creating the
weekly schedule
 Communicate plant managers and
purchasing decisions
 Implement human resources
recommendations
 Convert production planners estimates to
actions
 It’s
a deep looking pool but time to jump
in and get started
 Complete the reading
 Prepare a forecast for products X, Y, Z and
EOQ calculation for materials M
(ProSimPrep1)
 Prepare a master production schedule for
weeks 2 thru 9 (ProSimPrep2)
 Plan weeks 2 thru 4 (ProSimWk2 thru
ProSimWk4)
End of presentation