Direct Clustering

Analysis & PPC

Departmental Planning

1. Planning departments can involve production, support,

administrative, and service areas.
2. Production planning departments are collections of
workstations to be grouped togather during the facilities
layout process.
3. Depending on the product volume variety, production
planning departments can be classified as product, fixed
materials location, product family (or group technology) , or
process planning departments
 Procedural guide for combining workstations in in planning Department
If the product is The type of planning the The method of combining
department should be workstations into planning
departments should be
Standardized and has a large Production line, product department Combine all workstations required to
stable demand produce the product
Physically large awkward to move, Fixed materials location, product Combine all workstations required to
and has a low sporadic demand department produce the product and the area
required to staging the product
Capable of being grouped into Product family, product department Combine all workstations required to
families of similar parts that may produce the family of products.
be produced by a group of
workstations
None of the above Process department Combine identical workstations into
initial planning departments and
attempt to combine similar initial
planning departments without obscuring
important interrelationships within the
department
Product Family Department (PFD)

1. PFD aggregate medium volume varietyparts into families

based on similar manufacturing operations or design features
2. Machines required to manufacture part family are grouped
togather to form cells, thus the label cellular manufacturing.
3. The direct clustering algorithm (DCA) methodology is a
simple procedure that clearly illustrates the important
features of the cell clustering problem.
4. DCA is based on a machine-part matrix in which 1 indicates
the machines used for processing and 0 denotes the unused
ones.
Step 1

1. Order the rows and columns.

2. Sum the 1s in each column and row of the machine part
matrix.
3. Order the rows(top to bottom) in descending order of the
numbers of 1s in the rows,
4. Order the columns (left to right) in ascending order of 1s in
each.
5. Where tie exists, break the ties in descending numerical
sequence.
Step 2

6. Sort the columns, begin with the first row of the matrix, shift
to the left all the columns having 1 in the first row.

7. Continue this process row by row until no further opportunity

exists for shifting columns.
Step 3

8. Sort the rows. Column by column beginning with the left

most column.

9. Shift rows upwards when opportunity exists to form block of

1s.
Step 4

10. Form cells. Look for opportunities to form cells such that all
processing for each part occurs in a single cell.
 MACHINES
1 2 3 4 5
1 1 0 1 0 0
2 1 0 0 0 0
PARTS

3 0 1 0 1 1
4 1 0 1 0 0
5 0 1 0 0 0
6 0 0 0 1 1
 Sum the 1s in each column and row of the machine part matrix.
MACHINES
1 2 3 4 5

1 1 0 1 0 0 2
2 1 0 0 0 0 1
PARTS

3 0 1 0 1 1 3
4 1 0 1 0 0 2
5 0 1 0 0 0 1
6 0 0 0 1 1 2
3 2 2 2 2
Break the tie of rows of equal value 2 by maintaining descending order
of the numbers
MACHINES
1 2 3 4 5
3 0 1 0 1 1 3
1 1 0 1 0 0 2
4 2
PARTS

1 0 1 0 0
6 0 0 0 1 1 2
2 1 0 0 0 0 1
5 0 1 0 0 0 1
3 2 2 2 2
Break the tie of rows of equal value 1 by maintaining descending order
of the numbers
MACHINES
2 3 4 5 1
3 1 0 1 1 0 3
6 0 0 1 1 0 2
PARTS

4 0 1 0 0 1 2
1 0 1 0 0 1 2
5 1 0 0 0 0 1
2 0 0 0 0 1 1
2 2 2 2 3
Order the columns (left to right) in ascending order of 1s in each.
MACHINES
2 3 4 5 1
3 1 0 1 1 0 3
6 0 0 1 1 0 2
4 0 1 0 0 1 2
PARTS

1 0 1 0 0 1 2
5 1 0 0 0 0 1
2 0 0 0 0 1 1
2 2 2 2 3
Break the tie of equal cols in decreasing order as 5,4,3,2
MACHINES
5 4 3 2 1
3 1 1 0 1 0 3
6 1 1 0 0 0 2
4 0 0 1 0 1 2
PARTS

1 0 0 1 0 1 2
5 0 0 0 1 0 1
2 0 0 0 0 1 1
2 2 2 2 3
Break the tie of equal cols in decreasing order as 5,4,3,2
MACHINES
5 4 2 3 1
3 1 1 1 0 0 3
6 1 1 0 0 0 2
4 0 0 0 1 1 2
PARTS

1 0 0 0 1 1 2
5 0 0 1 0 0 1
2 0 0 0 0 1 1
2 2 2 2 3
Break the tie of equal cols in decreasing order as 5,4,3,2
MACHINES
5 4 2 3 1
3 1 1 1 0 0 3
6 1 1 0 0 0 2
5 0 0 1 0 0 1
PARTS

4 0 0 0 1 1 2
1 0 0 0 1 1 2
2 0 0 0 0 1 1
2 2 2 2 3
Break the tie of equal cols in decreasing order as 5,4,3,2
MACHINES
5 4 2 3 1
3 1 1 1 0 0 3
6 1 1 0 0 0 2
5 0 0 1 0 0 1
PARTS

4 0 0 0 1 1 2
1 0 0 0 1 1 2
2 0 0 0 0 1 1
2 2 2 2 3
PRODUCTION PLANNING AND CONTROL

CAD/CAM
 PRODUCTION PLANNING AND CONTROL

In order to come up with an appropriate aggregate

production plan for the company based on the
business plan, a number of inputs need to be
considered.

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PRODUCTION PLANNING AND CONTROL

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 PRODUCTION PLANNING AND CONTROL
Based on the demand forecast it is necessary to
identify the resources required to achieve this
production.

Some of the inputs required to establish this are

• regular time costs,

• overtime costs,
• hiring and layoff costs,
• inventory holding cost and
• backorder and stock-out costs.

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 PRODUCTION PLANNING AND CONTROL
➢ Start with a tentative plan, and evaluate it against
the available resources.
➢ If not acceptable, make changes and then repeat the
evaluation.
➢ Use of electronic spreadsheet in the planning
process.

CAD/CAM
 PRODUCTION PLANNING AND CONTROL

CAPACITY PLANNING

The goal of capacity planning is to transform the

manufacturing requirements, as set forth in the
MRP stage, into a detailed machine loading plan for
each machine or group of machines in the plant

CAD/CAM
 PRODUCTION PLANNING AND CONTROL

MASTER PRODUCTION SCHEDULE

A master production schedule (MPS) is the

anticipated build schedule for those items assigned
to the master schedule. It represents what the
company plans to produce expressed in specific
configurations, quantities and dates.

CAD/CAM
 PRODUCTION PLANNING AND CONTROL

The MPS relies on the following information:

➢ The production plan conveyed by the top

management
➢ Long-term forecasts of the individual items
➢ Actual orders received from the customers for the
plan period
➢ Present inventory levels of the individual items
➢ Resource constraints

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 PRODUCTION PLANNING AND CONTROL

The objectives of the master production schedule

are the following:
➢ Make the best use of the resources available in
terms of equipment, material and labour.
➢ Maintain the inventory as low as possible to
commensurate with the objectives of the
company.
➢ Maintain the finished goods delivery as per the
expectations of the customers.

CAD/CAM
 PRODUCTION PLANNING AND CONTROL

In order to achieve these objectives, the framework

to be followed is as follows:

➢ Use qualitative data for strategic levels, e.g., full

customer order completeness.
➢ Direct linkage with customer order entry.
➢ Take over all product structure to evaluate the
resource requirements.

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 PRODUCTION PLANNING AND CONTROL
MATERIAL REQUIREMENT PLANNING (MRP)

The objective of the MRP is to get the right materials to the right
place at the right time minimising the inventory cost. In order to do
this, MRP utilises the master production schedule for the purpose
of material explosion.

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 PRODUCTION PLANNING AND CONTROL
MATERIAL REQUIREMENT PLANNING (MRP)

The major objectives of MRP in an organisation are the

following:

➢ Reduction in inventory, by specifying exactly when

material is to be ordered to meet the master production
schedule.
➢ Coordinate production and purchase and thereby
reduce the manufacturing lead time.
➢ Realistic commitment for the delivery of the finished
products.
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 PRODUCTION PLANNING AND CONTROL
In order to apply MRP, it is necessary to have the full
inputs from the following:
• Master production schedule
• Bill Of Materials (BOM)
• Present inventory status

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 PRODUCTION PLANNING AND CONTROL
Allocated Quantity The actual amount of items in the
inventory, which are committed for a particular use and
hence are not available for allocation.
Gross Requirements In order to meet the planned output
levels, the actual quantity required at the end of the
planned period.
Scheduled Receipts The amount of items to be received
from the suppliers at the beginning of the planned orders
as a result of the orders placed earlier.
Available Quantity The amount of items that is available
at the end of the planned period to be allocated in the
succeeding periods.
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 PRODUCTION PLANNING AND CONTROL
Net Requirements The additional quantity to be obtained
to meet the planned production for the period—
calculated by subtracting the scheduled receipts and the
available quantity from the gross requirements.
Planned Order Receipt The amount of items that are
planned to be ordered such that they are received at
the beginning of a period to meet its net requirements;
the order has not been placed yet.
Planned Order Release The amount of items that is
planned to be released such that they are received when
needed; the order precedes the receipt in time by an
amount equal to the lead time.
CAD/CAM
 PRODUCTION PLANNING AND CONTROL

Bill of Materials (BOM) Bill of materials is the list of

materials that is used in the final assembly of the
product. The structure of the BOM is such that it is
possible to know how the part is made, starting from the
component level to the sub-assemblies to the final
assembly. The bill of materials is generally shown in
multiple levels to indicate the type of product
structure involved.

CAD/CAM
 PRODUCTION PLANNING AND CONTROL
The reasons for adopting MRP in general are the
following:

➢ Demand for component items is dependent on the

demand for assemblies of which they are a part.
➢ Lot-sizing, component commonality, etc., give rise to
lumpy demand at the component level.
➢ A computer makes extensive application of the MRP
technique feasible since a large amount of
calculations are needed.

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 PRODUCTION PLANNING AND CONTROL

MANUFACTURING RESOURCE PLANNING (MRP II)

MRP II is an integrated production information system

that synchronizes all aspects of the business.

MRP II while planning for production, the total

manufacturing resources are taken into account,
including interconnected activities.

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 PRODUCTION PLANNING AND CONTROL
This means that it involves the interconnected activities
of all the following:

• Business planning
• Production planning
• Capacity planning
• Master production scheduling
• Resource requirement planning
• Material requirement planning
• Capacity requirement planning
• Production activity control

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PRODUCTION PLANNING AND CONTROL

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 PRODUCTION PLANNING AND CONTROL
Problems in MRP II

➢ MRP ignored the question of redesign of the

manufacturing process.
➢ The BOM driven mentality tended to encourage the
development of many separated process stages.
➢ MRP II sought sophistication but has instead
achieved complexity in many areas.
➢ The notion of leaving capacity management to the
user never worked very well.
➢ MRP II has grown too large. Significant
modularization is required.

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 PRODUCTION PLANNING AND CONTROL
JUST IN TIME (JIT)

The Just In Time, or JIT, is one such methodology that

has revolutionized the manufacturing scene the world
over.

JIT is a philosophy of manufacturing based on planned

elimination of all wastes and continuous improvement
of productivity.

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 PRODUCTION PLANNING AND CONTROL
The seven wastes that have been identified by the
Japanese manufacturers, notably Toyota, that lead to
the continuous improvement in production processes
are the following:

➢ Waste of Overproduction Make only what is needed

now.
➢ Waste of Waiting Eliminate waiting by flexible
workers and equipment.
➢ Waste of Transportation Establish layouts and
locations to minimize transport and handling

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 PRODUCTION PLANNING AND CONTROL

➢ Waste of Processing why this part or product should

be made at all, then why each process is necessary.
➢ Waste of Stocks Reduce by shortening set-up times
and reducing lead times,
➢ Waste of Motion Study motion for economy and
consistency. First improve the motions, then
mechanize or automate.
➢ Waste of Making Defective Products Develop the
production process to prevent defects from being
made so as to eliminate inspection.

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 PRODUCTION PLANNING AND CONTROL

The goals for achieving the Just-In-Time manufacturing

are:

➢ Zero defects
➢ Zero set-up time
➢ Zero inventories
➢ Zero handling
➢ Zero breakdowns
➢ Zero lead time
➢ Lot size of one

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