Systems for Planning and Control in Manufacturing

311 Pages·2002·3.73 MB·English

by  D. K. Harrison, D. J. Petty

Systems for Planning and
Control in Manufacturing

Systems for
Planning and Control
in Manufacturing
Systems and management for
competitive manufacture
David K. Harrison
and
David J. Petty
OXFORD AMSTERDAM BOSTON LONDON NEW YORK PARIS
SAN DIEGO SAN FRANCISCO SINGAPORE SYDNEY TOKYO
Newnes
An imprint of Elsevier Science
Linacre House, Jordan Hill, Oxford OX2 8DP
225 Wildwood Avenue, Woburn MA 01801-2041
First published 2002
Copyright © 2002, D. K. Harrison and D. J. Petty. All right reserved
The right of D. K. Harrison and D. J. Petty to be identified as the
authors of this work has been asserted in accordance with the
Copyright, Designs and Patents Act 1988
No part of this publication may be reproduced in any material form (including
photocopying or storing in any medium by electronic means and whether
or not transiently or incidentally to some other use of this publication) without
the written permission of the copyright holder except in accordance with the
provisions of the Copyright, Designs and Patents Act 1988 or under the terms of
a licence issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road,
London, England W1T 4LP. Applications for the copyright holder’s written
permission to reproduce any part of this publication should be addressed
to the publisher
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
ISBN 0 7506 49771
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visit our website at www.newnespress.com
Composition by Genesis Typesetting, Laser Quay, Rochester, Kent
Printed and bound in Malta
Contents
Series Preface xi
Foreword xiii
Introduction xv
Part 1: The Manufacturing Enterprise 1
Case study – Automation means efficiency? 1
Summary 4
1 Manufacturing systems 5
1.1 Overview 5
1.2 Hierarchy of management control 7
1.3 Classification of manufacturing organizations 8
1.4 Strategy 9
1.5 Developing a strategy 10
1.6 Manufacturing strategy 11
1.7 Process choice 11
1.8 Facilities organization 12
1.9 Determining optimal layouts 14
1.10 New facilities 17
1.11 Group technology (GT) 18
1.12 Flow manufacturing 23
2 Financial accounting 29
2.1 Overview 29
2.2 General accounting principles 29
2.3 Single and double entry accounting 30
2.4 The main financial statements 32
3 Management accounting 37
3.1 Overview 37
3.2 Costing 37
3.3 Setting prices 40
3.4 Budgeting 41
3.5 Capital investment justification 42
3.6 Summary 46
3.7 Case study 46
vi Contents
4 Management of design 48
4.1 Overview 48
4.2 Sequential engineering 49
4.3 Concurrent engineering 50
4.4 Quality function deployment 51
4.5 QFD structure 51
4.6 Failure mode effect analysis (FMEA) 55
4.7 Summary 56
Exercises – The manufacturing enterprise 57
Exercises – Manufacturing systems 57
Exercises – Financial accounting 59
Exercises – Management accounting 60
Exercises – Management of design 62
Part 2: Information Systems in Manufacturing 63
Case study – The system made of matchsticks 63
Summary 66
5 Introduction to systems analysis 67
5.1 Overview 67
5.2 Evolution of IT/IS systems in business 68
5.3 The commercial environment 69
5.4 Mechanisms of meeting requirements 70
5.5 Re-evaluate requirements 74
5.6 Justification for IT/IS systems 76
5.7 System development methodologies 77
5.8 Importance of a structured approach 79
5.9 Personnel 79
5.10 SSADM overview 80
5.11 Systems and analysis 81
5.12 Summary 82
6 System design 83
6.1 Overview 83
6.2 Terms of reference 83
6.3 Obtaining information and interview techniques 83
6.4 Summary of initial stages 86
6.5 System design (analysis) 86
6.6 Flowcharts 86
6.7 Data flow diagrams 87
6.8 Resource flow diagrams 91
6.9 IDEF 91
0
6.10 Limitations of the classical approach 94
6.11 Soft systems methodology 95
7 Data analysis 98
7.1 Overview 98
7.2 Approaches to data storage 98
7.3 Entity-relationship modelling 100
7.4 Types of E-R structure 101
Contents vii
7.5 Complex models 103
7.6 Application of E-R models 105
8 Databases 106
8.1 Overview 106
8.2 Database types and terminology 106
8.3 Indexes 106
8.4 Basic database development 107
8.5 Database management systems 108
8.6 Database tables 109
8.7 Normalization and determinants 110
8.8 E-R models and databases 111
8.9 Data table linking 112
8.10 Use of the database 112
8.11 Database summary 113
8.12 System changeover 113
8.13 Changeover tasks 113
8.14 Data entry 114
8.15 Post-implementation tasks 114
9 Business process re-engineering 115
9.1 Overview 115
9.2 Nature of change 115
9.3 BPR concepts 116
9.4 Organizational structures for BPR 118
9.5 BPR – summary 120
9.6 Case study 120
Exercises – Information systems in manufacturing 122
Exercises – Introduction to systems analysis 122
Exercises – Systems design 125
Exercises – Data analysis 126
Exercises – Databases 127
Exercises – Business process re-engineering 128
Part 3: Quantitative Methods 129
Case study – Decisions, decisions 129
Summary 130
10 Probability and statistics 131
10.1 Overview 131
10.2 Probability 133
10.3 Probability distributions 136
11 Forecasting 139
11.1 Overview 139
11.2 Intuitive forecasting 139
11.3 Extrapolation 140
11.4 Prediction 143
11.5 Forecast uncertainty 147
11.6 Improving forecast accuracy 147
11.7 Forecasting summary 149
viii Contents
12 Optimization 150
12.1 Overview 150
12.2 The objective function 150
12.3 Basic optimization concepts 151
12.4 Linear programming 153
12.5 Optimization summary 158
13 Evaluating alternatives 159
13.1 Overview 159
13.2 Decision theory 159
13.3 Decision-making example 163
14 Simulation 165
14.1 Overview 165
14.2 Terminology 166
14.3 Simulation methodology 166
14.4 Continuous simulation 167
14.5 Discrete event simulation (DES) 168
14.6 Limitations of simulation 172
15 Project management 173
15.1 Overview 173
15.2 Project networks 173
15.3 Activity scheduling 176
15.4 Project uncertainty 177
15.5 Use of packages 181
15.6 Project management practice 181
Exercises – Quantitative methods 183
Exercises – Probability and statistics 183
Exercises – Forecasting 184
Exercises – Optimization 186
Exercises – Evaluating alternatives 187
Exercises – Project management 189
Part 4: Planning, Scheduling and Logistics 191
Case study – The red sticker system 191
Summary 193
16 Open-loop control systems 195
16.1 Overview 195
16.2 Basic definitions – items and BOMs 195
16.3 Order models of control 197
16.4 Basic reorder point theory 198
16.5 ROP limitations 199
16.6 Use of safety stock 200
16.7 EOQ theory 203
16.8 Summary 204
16.9 Material requirements planning (MRP) 205
16.10 Summary 209
Contents ix
17 Closed-loop MRP 210
17.1 Overview 210
17.2 Closed-loop control 210
17.3 Mechanism for closed-loop control 212
17.4 Manufacturing resource planning 215
17.5 Development of ERP from MRPII 219
17.6 Summary 221
18 Master production scheduling 222
18.1 Overview 222
18.2 Reasons to master schedule 223
18.3 MPS stability 224
18.4 MPS mechanics 225
18.5 Two level MPS techniques 229
18.6 Management aspects of MPS 231
18.7 Summary 232
19 Finite and infinite capacity planning 233
19.1 Overview 233
19.2 Limitations of MRPII 233
19.3 Infinite vs finite capacity scheduling 234
19.4 Schedule optimization 239
19.5 Sequencing 241
19.6 Short interval scheduling 243
19.7 Problems of finite capacity scheduling 244
19.8 Feedback and work to lists 245
19.9 Rough-cut capacity planning 246
19.10 Optimized production technology 248
19.11 OPT principles 248
19.12 OPT scheduling logic 250
19.13 Summary 251
19.14 Case study 251
20 Just-in-time 257
20.1 Overview 257
20.2 Japanese manufacturing practice 257
20.3 Kanban 258
20.4 ERP extensions to support kanban 262
20.5 Pre-requisites for kanban 263
20.6 Influence of JIT 263
20.7 JIT and purchasing 266
20.8 Summary 267
21 Quality 269
21.1 Overview 269
21.2 Statistical process control 269
21.3 Quality costs 272
21.4 Total quality management (TQM) 274
21.5 Certification 274
21.6 Summary 275
21.7 Case study 276