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Production Planning and Control Recapitulation

2012-07-09

Production Planning and Control Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Agenda of PPC
Day Date L/E Monday 02.04.2012 No Lecture 1 Thursday 05.04.2012 Lecture Monday 09.04.2012 No Lecture 2 Thursday 12.04.2012 Lecture 3 Monday 16.04.2012 Lecture Thursday 19.04.2012 Excercise Monday 23.04.2012 Excercise 4 Thursday 26.04.2012 Lecture 5 Monday 30.04.2012 Lecture 6 Thursday 03.05.2012 Lecture Monday 07.05.2012 Excercise 7 Thursday 10.05.2012 Lecture 8 Monday 14.05.2012 Lecture Thursday 17.05.2012 No Lecture Monday 21.05.2012 Excercise Thursday 24.05.2012 Excercise Monday 28.05.2012 No Lecture Thursday 31.05.2012 No Lecture 9 Monday 04.06.2012 Lecture Thursday 07.06.2012 No Lecture 10 Monday 11.06.2012 Lecture 11 Thursday 14.06.2012 Lecture Monday 18.06.2012 Excercise Thursday 21.06.2012 Excercise Monday 25.06.2012 No Lecture Thursday 28.06.2012 No Lecture 12 Monday 02.07.2012 Lecture 13 Thursday 05.07.2012 Guest Lecture 14 Monday 09.07.2012 Lecture Thursday and Control 12.07.2012 Excercise Production Planning
1

Content Master Orientation Day Introduction to PPC Easter Monday Demand Management / Forecasting Materials Management Excercise in Leo 18 Excercise in Leo 18 IT Systems in PPC Data Models in PPC Introduction to PPC through ERP 6.0 Excercise on SAP ERP 6.0 (1/3) Inventory Control, Scheduling, Capacity Mgmt. Production Control Ascension Day Excercise on SAP ERP 6.0 (2/3) Excercise on SAP ERP 6.0 (3/3) Whit Monday Early Written Examinations Introduction to Cost Engineering Feast of Corpus Christi Cost Engineering methods Research in Cost Engineering Excercise in Leo 18 Excercise in Leo 18 Retail Conference (HIS-Tagung) Public Administration Conference (MeMo-Tagung) Supply Chain Management Edeka - Supply Chain Management Recapitulation Exam Preparation

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Production Planning and Control


Coordination of materials with suppliers Efficient utilization of people and machines Efficient flow of materials Communication with customers

Production Planning and Control


2

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Y-CIM Model (1)


Bills of material Work schedules Equipment

Organisational planning functions


Order control (Sales) Cost estimating (Pricing) Master production planning

Technical functions
r ke nin g Ma

Product requirements

Product outline

Capacity planning

Process planning
CA P

Capacity adjustment NC programming Order release Production control Control of NC, CNC, DNC maschines and robots

Pla n

Materials management

Design

CA D

CA E

ting

Control (quantities, times, costs) and data analysis (dispatch control) Dispatch control

Inventory control Assembly control Maintenance Quality assurance

Implementation

Operational data collection

Conveyance control

CAM in the narrower sense

Production Planning and Control


3

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

CAQ

d Pro ion u ct pla

Computer Integrated Manufacturing


What functionality is needed within an industrial company from a managerial and from a technical point of view? What data should be provided within a CIM approach?

nni ng
Production control

Y-CIM Model (2)


Bills of material Work schedules Equipment

Order control (Sales) Cost estimating (Pricing) Master production planning Product requirements

Accept customer orders Arrange delivery dates Make reservations Ascertain necessary input data

Product outline

CA E CA D Pla n nin g

Materials management

Design

Capacity planning

Process planning
CA P

Capacity adjustment NC programming Order release Production control Control of NC, CNC, DNC maschines and robots

Control (quantities, times, costs) and data analysis (dispatch control) Dispatch control

Inventory control Assembly control Maintenance Quality assurance

Production Planning and Control


4

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

CAQ

Implementation

Operational data collection

Conveyance control

CAM in the narrower sense

Ma

r ke

ting

Order Handling

Organisational planning functions

Technical functions

d Pro ion u ct pla

nni ng
Production control

Lecture on

FORECASTING
Production Planning and Control
5

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Agenda
Forecasting 1. Introduction 2. Qualitative Forecasts 3. Quantitative Forecasts - Causal 4. Quantitative Forecasts Time Series 5. Quantitative Forecasts Smoothing Methods

6. Forecast Errors

Production Planning and Control


6

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Y-CIM Model (3)


Bills of material Work schedules Equipment

Master production planning


Establish the requirements for the output levels to be produced in the next period
End products End Product groups Independent marketed replacement parts

Organisational planning functions


Order control (Sales) Cost estimating (Pricing) Master production planning

Technical functions
r ke Pla n nin g Ma

Product requirements

Product outline

Materials management

Design

Capacity planning

Process planning
CA P

Capacity adjustment NC programming Order release Production control Control of NC, CNC, DNC maschines and robots

Control (quantities, times, costs) and data analysis (dispatch control) Dispatch control

Inventory control Assembly control Maintenance Quality assurance

Production Planning and Control


7

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

CAQ

Implementation

Operational data collection

Conveyance control

CAM in the narrower sense

CA D

CA E

ting

d Pro ion u ct pla

nni ng
Production control

Flow of Production Planning


Master Production Planning

Primary demand

Materials Management

Quantitative Structure: dependent demand, net demand


Scheduling and Capacity Planning

Temporal Structure: scheduled production orders

Production Planning and Control


8

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Qualitative Forecasts
Qualitative Forecasts
Forecasts from information that does not have a well-defined analytic structure Useful when no past data is available, e.g. new product or no sales history Forecast is usually based on
Personal judgment or some external qualitative data Tends to be subjective, developed from the people involved

Usually used for individual products or product families, seldom for markets

Production Planning and Control


9

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Quantitative Forecasts: Causal Methods


Idea
There is a causal relationship between two or more variables One (accurately) measureable variable causes the change of other variables
Causing variable called leading indicator

Characteristics
Excellent forecasting results if there is a good leading indicator developed Often side benefits due to the development of the model
E.g. development of a causal model which explains vacation travel based on the gasoline prices as leading indicator might gain additional knowledge about the mechanism that control gasoline prices and the patterns of typical vacation travel.

Production Planning and Control


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Often used for commonly for entire markets, seldom for products Often time-consuming and (very) expensive to develop Sometimes called extrinsic forecasts when based on external data

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Quantitative Forecasts: Time Series


Idea
Central assumption
The past demand follows some pattern The pattern can be used to develop projections for future demand
Assuming the pattern is analyzable and continuous in roughly the same manner

Therefore the only real independent variable is time

Characteristics
Most commonly used for packages linked to product demand forecasts No knowledge of the external marked and / or environment required

Production Planning and Control


11

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Quantitative Forecasts: Smoothing Methods


Demand can be forecasted with simple time series methods, knowing that a pattern exists

Smoothing methods
Idea: Smooth the random demand patterns assuming no trend or seasonal patterns exist Trade-off between smoothing and stability

Production Planning and Control


12

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Quantitative Forecasts: Simple moving averages


35
30 25

Three-period simple moving average

Demand

20 15 10 5 0 1 2 26 4 5 6 7 8 9 10 11 12 13 24,0 24,3 22,0 25,0 25,3 25,0 24,3 23,7 27,7 25,7 22 25 19 31 26 18 29 24 30 23 3

Forecast Demand 24

Production Planning and Control


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Period

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Lecture on

MATERIALS MANAGEMENT
Production Planning and Control
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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Materials Management - Agenda


Materials Management 1. Introduction 2. Assembly of X

Production Planning and Control


15

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Y-CIM Model (4)


Bills of material Work schedules Equipment

Material management
Breaking down the Master production schedule data into
Assembly groups Individual parts Individual materials

Organisational planning functions


Order control (Sales) Cost estimating (Pricing) Master production planning

Technical functions
r ke Pla n nin g Ma

Product requirements

Product outline

Materials management

Design

Capacity planning

Process planning
CA P

Capacity adjustment NC programming Order release Production control Control of NC, CNC, DNC maschines and robots

Control (quantities, times, costs) and data analysis (dispatch control) Dispatch control

Inventory control Assembly control Maintenance Quality assurance

Production Planning and Control


16

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

CAQ

Implementation

Operational data collection

Conveyance control

CAM in the narrower sense

CA D

CA E

ting

d Pro ion u ct pla

nni ng
Production control

Flow of Production Planning


Master Production Planning

Primary demand

Materials Management

Quantitative Structure: dependent demand, net demand


Scheduling and Capacity Planning

Temporal Structure: scheduled production orders

Production Planning and Control


17

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

MRP Solution: Keeping Drawer Inventory Low until Needed


Inventory Level
Reorder Point

Filing Cabinets

Time Inventory Level


Reorder Point Approach

Lead Time

Time
E
MRP Approach

Production Planning and Control


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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

BOM and Lot Sizes


X

A (2)

B (1)

C (3)

C (2)

D (5)

Components
A B C D

Lot Size
100 50 300 300

Scheduled Receipts
None None 300, week 1 None

Production Planning and Control


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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

A
Week
Gross requirement Scheduled receipts Projected available 75 Net requirements Planned order release

Generation of Reorder for Part C 2/2


1 2 3 4 5 6 7 8 9 10 Week
Gross requirement Scheduled receipts Projected available 35 Net requirements Planned order release 1 10 2 10 3 10 4 20 5 6 40 7 8 40 9 10 20 20 20 40 80 80

55

35

15

75

75

95

95

15

15

15

25

15

35

35

45

45

25

15

100

100

50

50

Week Gross requirement Scheduled receipts Projected 100 available Net requirements
20

1 300 300 100 0

3 400

5 100

10

100 0

0 300

0 0

200 100

200 0

200 0

200 0

200 0

200 0

Production Planning and Control

Planned order 300 300 Dr Dr Victor release Taratukhin, Kevin Ortbach, Sebastian Bruer

Lecture on

IT SYSTEMS
Production Planning and Control
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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

1. Product Design through CAD

1. 2. 3. 4.
Production Planning and Control
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Product Design through CAD Flexible Automation CAD-CAM Integration CAD-PPC Integration

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Classification of CAD systems

Production Planning and Control


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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

2. Flexible Automation

1. 2. 3. 4.
Production Planning and Control
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Product Design through CAD Flexible Automation CAD-CAM Integration CAD-PPC Integration

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Stages of the flexible automation


NC machine CNC machine DNC system Processing center Flexible production cell (FPC) Flexible production system (FPS) Flexible transfer line (FTL)

Production Planning and Control


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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

3. CAD-CAM Integration

1. 2. 3. 4.
Production Planning and Control
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Product Design through CAD Flexible Automation CAD-CAM Integration CAD-PPC Integration

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

CAD-NC
Linking of CAD/NC systems with transfer of the geometry data via a standard interface
CAD system takes the complete definition of all workpiece data concerning geometry and attributes for the entire processing technology e. g. IGES or VDA-FS interface Formatting of data, so it can be integrated into the NC programming system (postprocessor)

Linking by specially available NC preparation programs within the CAD system


Instead of IGES/VGA-FS CLDATA formatting (machine-neutral format: already contains a formatting routine, corresponding to the NC functions, for the selection of the according dimensions and technology description of the finished products contour)

Or directly in NC control information


Production Planning and Control
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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

4. CAD-PPC Integration

1. 2. 3. 4.
Production Planning and Control
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Product Design through CAD Flexible Automation CAD-CAM Integration CAD-PPC Integration

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

CAD-PPC integration
CAD to PPC:
Drawing info for single-level BOM (formal deduction from the technical drawing) Maybe conversion of production BOM into a manufacturing-oriented BOM (production flow) Extension of the BOM information with lead times, delivery times, costs, supplier, ... Technical drawing (order-specific) as early as possible to the customer for requirement control Cost information (BOM, manufacturing process, purchased parts) to distribution

Production Planning and Control


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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Design of Todays ERP Systems


User Interface Layer Adaptation Layer
User Interface Web-Client Integration Elements (Workflow)

Customizing/Parameter-Functions

Application Layer
Programming Environment Core Application Database Independent Part Database Dependent Part Execution of other Programs User Exits

Data Management Layer

DBMS

Interfaces to other Databases

Based on: Gronau 2004, p. 8

Production Planning and Control


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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Lecture on

DATA MODELS
Production Planning and Control
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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

ARIS Model

Organization

Data

Control

Function

Production Planning and Control


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Scheer 1995

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Primary Requirement Planning ERM

OUNO

ORGANIZATIONAL UNIT

FOUNO, TOUNO, DATE

PRIMARY REQUIREMENTS PLAN

n ARTRICLE (SALES PART) n PRIM. REQUIREMENT ITEM n

TIME

PNO

FOUNO, TOUNO, (SCHEDULING) DATE, PNO, (REQ.) DATE

DATE

Production Planning and Control


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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Requirements Explosion - ERM


STANO STORAGE AREA

STOCK ASMT

1 SNO STOCK LOCATION (FOUNO, TOUNO DATE), OPNO, ODATE, SPNR, SNO (FOUNO, TOUNO, DATE), PNO, ODATE FOUNO, TOUNO, DATE

n PNO, SNO INVENTORY LEVEL n RESERVATION n ORDER ITEM n ORDER HEADER

n n STRUCTURE n n 1 PNO HPNO, LPNO PLANNING LEVEL ASMT PART n

n DATE TIME

REQUIREMENT ITEM n

REQUIREMENTS PLAN

n PLANLNO PLANNING LEVEL (FOUNO, TOUNO, DATE), PNO, RDATE FOUNO, TOUNO, DATE

Production Planning and Control


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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Lecture on

INVENTORY AND CAPACITY MANAGEMENT

Production Planning and Control


35

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Inventory and Capacity Management Agenda


Inventory and Capacity Management 1. Methods of Inventory Control 2. Scheduling and Capacity Planning

Production Planning and Control


36

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Y-CIM Model Inventory and Capacity Management (1/2)


Bills of material Work schedules Equipment

Capacity planning

Organisational planning functions


Order control (Sales) Cost estimating (Pricing) Master production planning

Technical functions
r ke Pla n nin g Ma

Product requirements

Product outline

Combine production orders and work schedules into a capacity schedule Assignment of individual products to specific equipment groups Leads to capacity-loadoverview-diagram
Production Planning and Control
37

Materials management

Design

Capacity planning

Process planning
CA P

Capacity adjustment NC programming Order release Production control Control of NC, CNC, DNC maschines and robots

Control (quantities, times, costs) and data analysis (dispatch control) Dispatch control

Inventory control Assembly control Maintenance Quality assurance

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

CAQ

Implementation

Operational data collection

Conveyance control

CAM in the narrower sense

CA D

CA E

ting

d Pro ion u ct pla

nni ng
Production control

Y-CIM Model Inventory and Capacity Management (2/2)


Bills of material Work schedules Equipment

Capacity adjustment

Organisational planning functions


Order control (Sales) Cost estimating (Pricing) Master production planning

Technical functions
r ke Pla n nin g Ma

Product requirements

Product outline

Capacity adjustment

Control (quantities, times, costs) and data analysis (dispatch control) Dispatch control

Inventory control Assembly control Maintenance Quality assurance

Production Planning and Control


38

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

CAQ

Implementation

Operational data collection

Conveyance control

CAM in the narrower sense

Overtime, extra shifts Increasing of production intensity Temporary relocation of operations

NC programming Order release Production control Control of NC, CNC, DNC maschines and robots

CA P

Undertake adjustment procedures, if capacity bottlenecks occur e.g.:

Materials management

Design

Capacity planning

Process planning

CA D

CA E

ting

d Pro ion u ct pla

nni ng
Production control

Y-CIM Model Order release


Bills of material Work schedules Equipment

Order control (Sales) Cost estimating (Pricing) Master production planning Product requirements

Transfer orders from the planning to the implementation phase Before release: Availability check to the necessary
Components Machines Tools Labor

Product outline

CA E CA D Pla n nin g

Materials management

Design

Capacity planning

Process planning
CA P

Capacity adjustment NC programming Order release Production control Control of NC, CNC, DNC maschines and robots

Control (quantities, times, costs) and data analysis (dispatch control) Dispatch control

Inventory control Assembly control Maintenance Quality assurance

Production Planning and Control


39

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

CAQ

Implementation

Operational data collection

Conveyance control

CAM in the narrower sense

Ma

r ke

ting

Order release

Organisational planning functions

Technical functions

d Pro ion u ct pla

nni ng
Production control

Flow of Production Planning


Master Production Planning

Primary demand

Materials Management

Quantitative Structure: dependent demand, net demand

Scheduling and Capacity Planning

Temporal Structure: scheduled production orders

Production Planning and Control


40

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Inventory Categories, position in the process and use


Independent vs. Dependent demand inventory Raw materials, work in process materials (WIP), finished goods, material for maintenance, repair, and operations (MRO)

Transit inventory, cycle inventory, safety stock, anticipation inventory and decoupling inventory
Cost perspective: Costs of having and not having inventory

Production Planning and Control


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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Methods of inventory control

Program-driven
(deterministic)

Consumptiondriven
(stochastic)

bill explosion: definite

forecasting: expected

Which method should be applied?


Production Planning and Control
42

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

ABC-Analysis
cumulative period consumption value

% 100
90
80 70 60 50 40 30

ABC-parts

20
10

%
10 20 30 40 50 60 70 80 90 100

cumulative number of parts

Production Planning and Control


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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Methods of inventory control

Program-driven
(deterministic)

Consumptiondriven
(stochastic)

bill explosion: definite

forecasting: expected

Production Planning and Control


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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Bills of Material (BOM)


Also called Product Structure (equivalent to our ingredients list for lasagna) Shows the hierarchy and product coefficients of the required material Product or subassembly that uses a given component is often called a parent
Bicycle 1 Bicycle 2 2 2 1 Frame 2

Gozintograph

Product Coefficient

1 Frame 1

Wheel

Component 1

Component 2

Component 3

Component 4

Production Planning and Control


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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Gross-Net-Calculation

Methods of inventory control

Program-driven
(deterministic)

Consumptiondriven
(stochastic)

bill explosion: definite

forecasting: expected

Production Planning and Control


46

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Order strategies in consumption-driven material planning Example (t, q politics)


quantity
2 3/4q upper occurrence limit

2q Increase of output q lower occurrence limit 1 2 3 4 5 6 7

1/4q

Production Planning and Control


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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Specification of size of order planning


cost-minimal size of order

order politics

batch size politics

minimise sum of storage costs and fixed order costs!

minimise sum of storage costs and changeover costs

notice: effective machine loading plan?

Production Planning and Control


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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Batch sizing

The aim of batch sizing is it to define that batch size for which the given required quantity of the planning period is produced for minimal total costs.

changeover costs

storage costs

Production Planning and Control


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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Calculation of optimal batch sizes (BP=BS case)

Production Planning and Control


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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Run of the cost curve


k(y) Storage costs

changeover costs

Yopt
Production Planning and Control
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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Inventory and Capacity Management Agenda


Inventory and Capacity Management 1. Methods of Inventory Control 2. Scheduling and Capacity Planning

Production Planning and Control


52

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Flow of Production Planning


Master Production Planning

Primary demand

Materials Management

Quantitative Structure: dependent demand, net demand

Scheduling and Capacity Planning

Temporal Structure: scheduled production orders

Production Planning and Control


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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Lead Time reduction Splitting orders


Before Splitting Vor Splitten
(1)

Lead Time Durchlaufzeit After Splitting Nach Splitten


(1)

Setting-up Rstzeit time

(2)

Bearbeitungszeit Process time

(3)

Durchlaufzeit Lead Time

Reduktion Reduction
Kurbel (1999), S. 151.

Production Planning and Control


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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Capacity Planning Routing


A routing sheet subsumes a sequence of technical procedural steps that are required for producing a specific part. There exists at least one routing sheet for each selfproduced part.

OP no 6200 6300 6400 6500 6700 6800 6900

Operation - description Setup lathe Clamp bearing cover Turning of bearing cover Remove bearing cover Clamp bearing cover Drill mounting holes ...

Equipment Set-up time ProcessTime p. Unit D-40 D-40 D-40 D-40 B-52 B-52 2 12 5 3 16

Production Planning and Control


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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Lecture on

PRODUCTION CONTROL
Production Planning and Control
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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Production Control Agenda


Production Control

1. Tasks of PC & Electronic Control Centers


2. Indicators of Progress 3. Lean Management / Kanban 4. Organizational Forms of Production 5. Retrograde Scheduling

Production Planning and Control


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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Y-CIM Model (9)


Bills of material Work schedules Equipment

Order control (Sales) Cost estimating (Pricing) Master production planning Product requirements

Assign released orders to equipment groups in accordance with optimization criteria e.g.:
Avoidance of waste by optimize cutting Avoidance of refitting costs Production technology requirements (e.g. even load)
Production Planning and Control
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Product outline

CA E CA D Pla n nin g

Materials management

Design

Capacity planning

Process planning
CA P

Capacity adjustment NC programming Order release Production control Control of NC, CNC, DNC maschines and robots

Control (quantities, times, costs) and data analysis (dispatch control) Dispatch control

Inventory control Assembly control Maintenance Quality assurance

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

CAQ

Implementation

Operational data collection

Conveyance control

CAM in the narrower sense

Ma

r ke

ting

Production control

Organisational planning functions

Technical functions

d Pro ion u ct pla

nni ng
Production control

Production Control Agenda


Production Control

1. Tasks of PC & Electronic Control Centers


2. Indicators of Progress 3. Lean Management / Kanban 4. Organizational Forms of Production 5. Retrograde Scheduling

Production Planning and Control


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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Indicators of Progress Schematic cumulative flow chart


Planning method for retrograde lead time scheduling
Demands or quantities are displayed in total for a specific period Production is divided into running total units (control blocks) that are executed Parameter: to-be running totals Control: as-is-running totals

Production Planning and Control


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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Production Control Agenda


Production Control

1. Tasks of PC & Electronic Control Centers


2. Indicators of Progress 3. Lean Management / Kanban 4. Organizational Forms of Production 5. Retrograde Scheduling

Production Planning and Control


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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Centralized (MRP/Push) vs. Decentralized Management(Pull)


Push Management
Demand Forecast

Pull Management
Forecast

Material Requirement Planning (MRP)

Station 1

Station 2

Station 3

Station 1

Station 2

Station 3

Production Planning and Control


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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Perspectives on Lean Manufacturing


Western Perspective (Europe, USA) Japanese Perspective

High Stocks allow for


High Service Level Short Delivery Times Easy Handling of Disturbance Scale Effects Constantly high Degree of Capacity Utilization
Production Planning and Control
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High stocks cover


Instable Processes Inadequate Production Resources Lack of Flexibility Faulty Products Bad Delivery Service
Source: [Westkmper 1997]

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Production Control Agenda


Production Control

1. Tasks of PC & Electronic Control Centers


2. Indicators of Progress 3. Lean Management / Kanban 4. Organizational Forms of Production 5. Retrograde Scheduling

Production Planning and Control


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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Organizational Forms of Production


Classical (centralistic) vs. Autonomous work groups Workparts are stationary: work bench production (point principle) vs. fixed-site production (place principle)

Workparts are transferred from one station to another: object principle vs. job shop principle
Group principle

Production island
Continuous flow principle
Production Planning and Control
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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Production Control Agenda


Production Control

1. Tasks of PC & Electronic Control Centers


2. Indicators of Progress 3. Lean Management / Kanban 4. Organizational Forms of Production 5. Retrograde Scheduling

Production Planning and Control


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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Lecture on

SAP
Production Planning and Control
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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Introduction to SAP Agenda


Introduction SAP ERP 1. ERP Systems 2. SAP ERP 3. System-wide Concepts 4. IDES System 5. Modules of the SAP ERP System

Production Planning and Control


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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

SAP ERP and ERP systems


ERP systems (Enterprise Resource Planning) are integrated standard information systems supporting all business processes of a company in an integrated manner (e.g. sales, material management, production planning, finance, controlling). Subject of a PPC system is an integrated production planning and control and the management of related data objects.

Production Planning and Control


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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

SAP ERP Modules


SD MM PP
Production Planning Sales and Distribution Materials Management

FI

Financial Accounting

CO

Controlling

AM

Asset Management

QM

R/3 BASIS
PM WF IS
Industry Solutions

Quality Management Plant Maintenance

PS
Workflow

Project System

HR

Human Resources

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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Organizational Structure Logistics

Production Planning and Control


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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Integration Scenario (example)


CO
sales planning

PP
production planning

CO
cost centres + profit planing

PP
Material requirement planning

MM
ordering requisition

MM
Supplier selection + order

MM
goods receipt

QM
quality inspection

MM
accounting control

FI
payment run

PP
production

MM
goods receipt from production

SD
customer contract processing

MM
goods issue

SD
billing

FI
dunning run

FI
accounts receivable

Production Planning and Control


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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Lectures on

COST ENGINEERING
Production Planning and Control
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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Agenda

Importance of cost engineering

Cost estimation approaches


Information technology re-thinking Cost estimation methods

Hardware cost estimation


Software cost estimation Research in Cost Engineering Future of supply chain management
Production Planning and Control

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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Agenda

Importance of cost engineering

Cost estimation approaches


Information technology re-thinking Cost estimation methods

Hardware cost estimation


Software cost estimation Research in Cost Engineering Future of supply chain management
Production Planning and Control

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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Cost Engineering and Y-CIM Model


Bills of material Work schedules Equipment

Organisational planning functions


Order control (Sales) Cost estimating (Pricing) Master production planning

Technical functions
r ke Pla n nin g Ma

Product requirements

Product outline

Materials management

Design

Capacity planning

Process planning
CA P

Capacity adjustment NC programming Order release Production control Control of NC, CNC, DNC maschines and robots

Control (quantities, times, costs) and data analysis (dispatch control) Dispatch control

Inventory control Assembly control Maintenance Quality assurance

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CAQ

Implementation

Operational data collection

Conveyance control

CAM in the narrower sense

CA D

CA E

ting

d Pro ion u ct pla

nni ng
Production control

IT trends

Is cost - based competition is no longer important?

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Cost importance

Cost is still extremely important lessons learned from economic crisis

Production Planning and Control


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Cost is everybodys responsibility

Cost awareness is necessary

at all levels

Cost Engineering of Complex products

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Whole life cost

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Concurrent Engineering
Economic feasibility Acquisition Reliability Manufacturability Analist Manability Utilisation Maintability

Cost
Design functions Geometric features

Size, weight
Parts, connections Color, shape

Safety and aesthetics

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Cost engineering

Cost engineering cost estimating, cost control, management, product life-cycle development, design, design for cost

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Engineering Design: Multi Disciplinary Negotiation

Performance

Time

Regulation

Weight

Cost

Cost is now considered as part of the Design Negotiation


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Collaborative Negotiation: Challenges !

Maintaining the knowledge/DATA base!

Purpose of Estimating

a) b)

Establish the bid price of a product for a quotation or contract. Verify quotations submitted by suppliers. Ascertain whether a proposed product can be manufactured and marketed profitably. Provide data for make-versus-buy decisions. Help determine the most economical method, process, or material for manufacturing a product. Provide a temporary standard for production efficiency and guide operating costs at the beginning of a project. Help in evaluating design proposals. Critical for: Determining whether to make an investment to provide a product for the consumer market Deciding if a company should quote on a product for sale to another company

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Cost and product lifecycle

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Critical issues

Cost estimating is critical, especially on early stages of design GO or NO GO question

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Cost Estimation types

Hardware cost estimation


Software cost estimation

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Cost Estimation types

Preliminary cost estimation


Detailed cost estimation

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Preliminary Product Cost Estimates


Often used to compare different concepts of product designs or manufacturing processes Typically, this type of estimate is wanted almost immediately and there is no time for a detailed analysis

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Bottom-up approach

Materials Bough out parts Labour Machine & Processes Specification Overhead Cost Elements Standards & Legislations

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Final Product Cost Estimates


Include costing of every part and subassembly going into a product Include the results of detailed studies on the optimum manufacturing processes and makeversus-buy decisions When the product is released for production, information from the detailed product cost estimate is directly used in establishing standard costs and ordering necessary tools and equipment

Production Planning and Control


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Cost Expert role

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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Commercial Estimating Department, X company


STRUCTURE HEAD OF DEPARTMENT

Program Layer

Product 1

Product 2

Product 4

Product 5

Product 6

Product 7

Chief Estimator Assistant Estimator

Chief Estimator Assistant Estimator

Chief Estimator Assistant Estimator

Chief Estimator Assistant Estimator

Chief Estimator Assistant Estimator

Chief Estimator Assistant Estimator

Common Advisor For CE


Development Production/P.I Support Development Production/P.I Support Development Production/P.I Support Development Production/P.I Support Development Production/P.I Support Development Production/P.I Support

Cost data

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Cost data
Engineering Drawings Bills of Materials Process/Routing Sheets Master Production Schedules Accounting Records Supplier and Catalogue information Labour Rates and Standard time Data Repair and Maintenance Schedules ERP Systems

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Cost data collection

Interview Analytics Web analysis/Business intelligence

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Cost data

Quantitative (Mass, Length, Velocity, Weight)


Qualitative (Manufacturability, serviceability Complexity, Quality)

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Agenda

Importance of cost engineering

Cost estimation approaches


Information technology re-thinking Cost estimation methods

Hardware cost estimation


Software cost estimation Research in Cost Engineering Future of supply chain management
Production Planning and Control

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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Hardware cost estimation

Combination of parametric and detailed cost estimation Wide range of commercial software and companies (PRICE (H), SEER (GALORATH), in-house systems) Strong integration with CAD/CAM systems A lot of attention to aerospace, manufacturing, defense, space sectors

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Parametric hardware cost estimation

Introduced by Frank Freiman (founder of PRICE Systems. Programmed Review of Information for Costing and Evaluation (PRICE)) Used to predict the cost of mainframe computer systems Wide area of applications and software

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Detailed cost estimation

Labor cost Cost of the material, for example raw materials Machine cost Purchased parts Overhead cost

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Data Structure - example


Labour
Labour Categories General Manufacturing Forging & Foundry Chemical Electrical Rubber & Plastics Glass Textile General Labour & Wiring Aluminium Foundry Robots Elastomer Rubber Plastics Paper Materials Leathers Non-Metallic Textiles Applied Finishes Electrical Misc. Materials

Material
Ferrous Metals Non-Ferrous Metals Chemicals Petroleum Products Plastics

Machine
Assembly Welding Plastic Fabrication Boring Drilling & Reaming Soldering & Brazing Bolt

Bought Out
Adhesive Part

Overhead
Fringe Benefits Mark-ups Indirect Labour Cost Manufacturing Burden

Connector Electronic Component Washer

Tooling Materials

Exhaust Systems Fabrication


Rubber Fabrication Soft Trim Fabrication Wiring Fabrication Robots Inspection Equipment Test Equipment Abrasive Finishing Cleaning Equipment Heat Treating Painting

Hose Clamp
Nut Pin Retaining Ring Retainer & Clip Rivet Screw Shielding Component Spring Stud Terminal

Tool-room
Source Country

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Some Details on Ferrous Metals

Country of origin, currency Trade discount Reclaimed Scrap New alloy Melt temperature Thermal conductivity, etc.

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Category of Ferrous Materials

Alloy steel bar Carbon steel bar High Temperature steel bar Stainless Steel Bar Cast Iron Cast Steel Powdered Metal Ferrous Sheet steel

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Machine Costs Data


Equipment Description Date of Purchase Installation Cost Restricted Width Insurance on Machine Uptime Indirect Material Litre Shot Size Lock pressure Manufacturer Current Date Residual Cost Floor space Area Electricity Usage Interest on Capital Source Country Tonnage Capacity Max. Diameter Supplier Capital Cost Restricted Length Lifetime Gas Usage Manning Level Special Handling Dry Cycle Max. Weight In Depreciation Interest Maintenance Floor Space Tool Cleaning Distance Between column x Distance Between column y Screw Speed

Shot Weight

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Categories of Overheads
Plant supervisor Plant administrator Plant engineer Quality control Production control Laboratory Health department Maintenance Work safety Plant security etc.

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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Software cost estimation

Software cost estimation is important part of software development model The Capability Maturity Model (CMM) CMM 4 -5 cost estimation is part of CMM certication

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CMM and software cost estimation

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CMM levels

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CMM in relation to Cost Estimation

CMM2 - combination of software cost models with other methods CMM3 - benefit of trainings of cost drivers as application, platform, language, tools CMM4 - develop of effective quantitative management software CMM5 - how to accommodate new practices such as product lines, rapid application development, commercial off-the-shelf (COTS) software integration
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Parametric software cost estimation

Putnams Software LIfecycle Management (SLIM). Establishing in 1978. Putnams analysis of the life-cycle in terms of a so-called Rayleigh distribution of project personnel level vesus time. More than 8000 projects database.

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Software Cost Estimation

Methods used: Parametric (algorithmic), Top-down, bottom-up, analogy


Examples of Automated Techniques Project-level estimates. (Macro-estimation) Phase-level estimates Activity-level, task-based estimates (Micro-estimation)

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Parametric software estimation

Parametric Model Use of mathematical equations to perform software estimation. Use input such as SLOC (Source Lines of Code ), number of functions to perform and other cost drivers Accuracy of model can be improved by calibration in the relation the model to the specific environment

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Parametric techniques

Constructive Cost Model (COCOMO) is an parametric/algorithmic software cost estimation model developed by Barry W. Boehm The model based on the data from 63 historical software project.

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COCOMO

Basic COCOMO computes software development effort (and cost) as a function of program size. Program size is expressed in estimated thousands of source lines of code (SLOC)

COCOMO applies to three classes of software projects: Organic projects - "small" teams with "good" experience working with "less than rigid" requirements Semi-detached projects - "medium" teams with mixed experience working with a mix of rigid and less than rigid requirements Embedded projects - developed within a set of "tight" constraints. It is also combination of organic and semi-detached projects.(hardware, software, operational, ...)
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COCOMO II

COCOMO II Published in 1995.


To address issue on non-sequential and rapid development process models, reengineering, reuse driven approaches, object oriented approach etc Has three submodels application composition, early design and post-architecture

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COCOMO II

COCOMO II includes: The Application Composition Model. Good for projects built using rapid application development tools (GUIbuilders etc) The Early Design Model. Rough estimates before the entire architecture has been decided The Post-Architecture Model. Most detailed model, used after overall architecture has been decided on

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Top Down cost estimation

Macro Model Derived from the global properties of the product and then partitioned into various low level components.

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Bottom-up Cost estimation


Bottom - Up Cost of each software components is estimated and combined the results to arrive the total cost for the project The goal is to define the estimate of the system from the knowledge accumulated about the small software components and their interactions.

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Agenda

Importance of cost engineering

Cost estimation approaches


Information technology re-thinking Cost estimation methods

Hardware cost estimation


Software cost estimation Research in Cost Engineering Future of supply chain management
Production Planning and Control

123

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Typical Enterprise Landscape & Challenges


?
How are we hitting our targets? Total Cost of Production and Variance Labor and Resource Productivity Order Fill Rates and Cycle Times Fixed and Variable Asset Utilization

ERP

DISCONNECT

MES

SFAC - Shop Floor Automation and Control Systems MES Manufacturing Execution Systems DCS Distributed Control Systems

Whats happening during every shift? Material availability and consumption Capacity availability and utilization Schedule changes Product Genealogy tracking and QM Whats happening at each line? Cycle Times / Operating Efficiencies Machine Breakdowns / Unplanned Downtime Quality Index Predictive Maintenance requirements

DISCONNECT SFAC*

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SAP AG

Manufacturing Intelligence - A real-world scenario.


VP of Supply Chain or Operations
Can I fulfill an order profitably against current inventory? Which assets are currently available for a rush order? Which is the most efficient plant to produce this product? Which underperforming assets can we rationalize?

Enterprise ERP, SCM, PLM, CRM


DISCONNECT

What is my actual cost of production versus budget? What are my best and worst performing assets? What is my Overall Equipment Effectiveness (OEE)? How can I analyze, isolate and improve on OEE variances?

Plant Manager

Which orders have been impacted by the asset failure?

Production Supervisor

Which lines are currently available?


Which line is the most efficient for this order?

Factory/Plant Line or Machine Operator


How am I performing against my production targets? How am I performing against my peers? How can I make more given pay-for-performance model?

Production Planning and Control


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SAP AG

Key domain areas of IT based economy


In-memory Cloud services Business Intelligence, Data Warehousing Mobility Agent - based systems

Production Planning and Control


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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Design and manufacture of complex systems. Dealing with uncertainty

Soft computing Fuzzy logic Neural networks Expert systems Multi-agent systems

Production Planning and Control


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Engineering Design for Aerospace Industry. Introduction


Complexity of the engineering design process The design and manufacture of major European products has been distributed across the continent (Airbus, Aerospatiale) requires centralised planning teams and a great deal of travel on the part of the distributed designers

Computer Supported Collaborative Design

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Problems

Design Mismatches

Intelligent support

Restricted Taxonomy Centralisation of Knowledge-base

Restricted number and types of mismatches


Production Planning and Control
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CAD systems for design consistency checking process

Virtual View. An example of Virtual Mock-up and Collision checking


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Design consistency checking. Methods and techniques


Several ways in which conflict can be managed [Lander, 1997]: Avoidance - Avoid conflict by sharing information about local constraints and priorities Conflict classification - Build taxonomy of conflict types. Associated with each conflict type is a specific piece of conflict resolution advice. [Klein, 1996] and [Matta, 1996] Negotiation - Techniques in this area include bargaining, restructuring, constraint relaxation, mediation, and arbitration. [Easterbrook, 2000]
More attention to social and psychological aspects of communications between members of team, HCI, but not to problems of communications between artificial agents and development a general methodology of conflict management/intelligent control, based on Distributed AI.
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Intelligent Distributed Mismatch Control (IDMC)


Principles
Concurrent Engineering Support Agent Based Design

Agents as Virtual Designers


Web based design Results Raise Designer Level, Reduce Design Cost, Design Time
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Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

Research Overview
Adaptive Systems Theory Multi-agent Systems Computer Aided Design Solid Modelling

IDMC-approach

Conceptual Framework

PARASOLID

Intelligent Distributed Mismatch Control Systems (IDMCS)

ZEUS Toolkit

Mechanical Engineering
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Aerospace Design

Manufacturing Engineering

Dr Dr Victor Taratukhin, Kevin Ortbach, Sebastian Bruer

The general overview of taxonomy

Restrictions:
Integration phase of mechanical engineering design Design for Assembly (DFA)

Design for Manufacturability (DFM)


Design for Cost

Implementation:
Typological extrapolation Distributed knowledge-base organization
Classification of mismatches as agents internal ability
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The general overview of taxonomy

Mismatches

Types of Connections

Critical Parameters

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Taxonomy for Aerospace Design


Taxonomy of DFA/DFM

Sequence mismatches

Dissasembly mismatches

Assembly mismatches

Failed assembly/ dissasembly sequence plan

Non optimal assembly/ dissasembly sequence plan

Impossible dissasembly

Bad serviceability

Interaction mismatches

Other mismatches

Connection mismatches Forward search: impossible assembly Backward search: impossible dissasembly The time of assembly / dissasembly is too much Unwanted contacts No adequate dissasembly tools

Time of assembly is too much

No tools for automatic/manual assembly Difficulty for hand operations

Impossible tools changes operation

The number of parts

Symmetry

Interference mismatches Impossible connection

Mating direction

Assembly cost is high

Unwanted contacts Stability Directorability

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Dynamics of the framework


Virtual team of designers D

D
C-agents level

CA CA D-agents level CA

M1i

Design Project

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Distributed Knowledge Base

Structure of assembly elements Facts -base Set of parameters

Sequences Facts base Sub-assembly parameters

Rules of communications and conflicts detections (local knowledge)

Knowledge-base

Rules of communications and conflict resolutions (global knowledge)

Meta-knowledge-base

D-agent

C-agent

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Intelligent Distributed Mismatch Control System (IDMCS)

ZEUS Building Tool-kit agents definitions

Agent Based Environment

Knowledge Engineering Issues IDMCS

Java- external programs

Java based Integration.

PARASOLID-KID geometric modeller

Java PARASOLID Interface

Distributed Design Environment

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Intelligent Distributed Mismatch Control System (IDMCS)

Analysis of assembly parts - assembly checks of stringers, skins, spars etc., Evaluation of assembly possibility Collision and Tolerance Analysis, Manufacturability analysis, Choosing the alternatives for mismatch resolution, and Semiautomatic mismatch resolution and generation of results.
Production Planning and Control
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Research description

Research hypothesis:
An ERP system contains information which is valuable for PCE, so that an integration of ERP and PCE systems will increase PCE efficiency.

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Models and Principles of PCE and ERP systems integration


Product Structure as a basis for Cost Estimation Product Structure levels Product Structure levels dynamics during the product design Product Structure Elements parameters as data for Cost Estimation Parameters restrictions by requirements capturing Parameters dependencies on each other Product Structure Element cost Product Structure Information Similar Products Information Resource Costs Information
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Evaluation

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Evaluation

Weitere Details: http://www.wiwi.unimuenster.de/evaluation/download/faecherabschluesse.pdf

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