Planning Hierarchy PRODUCTION PLANNING Forecasting

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PRODUCTION PLANNINGANDSCHEDULINGPart 1MPSBalancingTel: 319 - 335 5934Fax: 319 - 335 edu/ ankusiakSchedulingIntelligent Systems LaboratoryForecastingMPSForecastingMRPAndrew KusiakIntelligent Systems Laboratory2139 Seamans CenterThe University of IowaIowa City, Iowa 52242 - 1527The University of IowaPlanning HierarchyMRP II (ManufacturingResource Planning II) Forecasting Master Production Planning(Scheduling) Material RequirementsPlanning (MRP) Capacity Balancing Production SchedulingThe University of IowaIntelligent Systems Laboratory 1970’s MRP Material Requirements Planning 1980’s MRPII Manufacturing Resource Planning 1990’s ERP Enterprise Resource Planning (e.g., SAP system)ForecastingMRPMPSBalancingMRPMRP IIBalancingSchedulingSchedulingThe University of IowaIntelligent Systems LaboratoryMaster Production ScheduleMPSspecifiesSequence and Quantity of Products (C)MRPBalancingEXAMPLEIntelligent Systems LaboratoryERP systems are used from Automotive industrySchedulingJan200 C1150 C7180 C14The University of IowaFebMarch195 C4150 C7180 C12128 C17385 C1160 C6670 C7230 C9The University of IowaMonthIntelligent Systems Laboratoryto Pharmaceutical industryThe University of IowaIntelligent Systems Laboratory

MRP and ERP SystemsMPSPlanning horizon:Backward (top down) generationMRP1 month to3 day periodProduct Cof a production planBalancingForward (push) implementationof the production planSchedulingS1P1S2P2The BOM of Product CThe University of IowaIntelligent Systems LaboratoryEXAMPLE: Material Requirements Records forthe Spider ClimberNote: Kanban systems are pull systemsThe University of IowaIntelligent Systems LaboratoryMerged Material Requirements for Aluminum PipeMPSMRP RecordMRPRecordMRP RecordMRPRecordThe University of IowaIntelligent Systems Laboratory21Gross requirementsOn handPlanned order releases44051045444444-6501250- Gross requirementsOn hand310 4 5444454010- - 444-6Planned order releasesNote: On hand shouldbe Safety stockLeadtimePeriodScheduled receipts50Lead time 1 periodLot size 50Safety stock 4The University of Iowa310Scheduled receiptsIntelligent Systems LaboratoryThe Basic MRP (ERP) Record“Arithmetic”From the previous production stage or storagePeriodThe University of IowaIntelligent Systems LaboratoryLead time 1 periodLot size 50Safety stock 4The University of IowaIntelligent Systems Laboratory

Question?PeriodThe Answer21Gross requirements310Scheduled receipts On hand450 54454010444Planned order releasesWhat 50?What will a 50 do tothe MRP record?The University of IowaIntelligent Systems Laboratory310Scheduled receipts-650?Lead time 1 periodLot size 50Safety stock 421Gross requirements- - 44Period On hand (safety stock)4Planned order releases50Lead time 1 periodLot size 50Safety stock 450 54- 44454010- - 50444-64450Previously omittedNew order releaseThe University of IowaIntelligent Systems LaboratoryExplosion of Requirements for Subassembly S1 and Part P2PeriodS11Gross requirements2310Scheduled receipts454010On hand454CAPACITY BALANCING50504444Planned order releases4-644MPS50Lead time 1 periodLot size 50MRPGross requirementsP250Scheduled receiptsOn hand8Planned order releases888Balancing100-42 58Scheduling100Lead time 1 periodLot size 100The University of IowaIntelligent Systems Laboratory8 hour period3Part 21 operation45The result of capacity balancing5Part 32 operationsNOTE: Operation is a set of tasks (e.g., removal ofmachining features) of a part is performed on one machineThe University of Iowa3242Part 12 operationsIntelligent Systems Laboratory15 operations to be assigned to 2 machines1The University of IowaIntelligent Systems LaboratoryMachine 11Machine 2245Capacity420 [minutes]3480The University of IowaIntelligent Systems Laboratory

Why Not?Question:Is this Gantt chart a feasible schedule?Capacity41Machine 12Machine 2Conflict 1420 [minutes]NO!34803142425The University of Iowa35An assignment only due to two conflicts4801420 [minutes]Time35Conflict 22Machine 2Capacity41Machine 1Intelligent Systems Laboratory5The University of IowaIntelligent Systems LaboratoryCAPACITY BALANCING MODELSM1M2Capacity420 [minutes]14Conflict 1Conflict 223135MODEL 1: No splitting of IJTijCijbjset of batches of operations to be processedset of machinestime of processing batch i on machine jcost of processing batch i on machine jprocessing time available on machine j(capacity of machine j)Decision variableM2670Feasible ScheduleThe University of IowaTime352Intelligent Systems Laboratory 1 if batch i of operations is processed on machine j, j Jx ij 0 otherwiseThe University of IowaIntelligent Systems LaboratoryModel 1: No splitting of batchesProcessing costmin C ijx ijMin total processing costi I j Jmachinebatch x ij 1j Ji IOne batch per machine T ijx ij b jj JCapacity constraintxij 0, 1i I, j JIntegrality constrainti IProcessing timeIntelligent Systems LaboratoryThe University of Iowa4 71.5 1.23 64 52 3765421232318176[Τij ] 344556435121Machining capacityThe University of Iowa[Cij ] 12345Batch x Machine3T[b j ] [21, 20, 42]Intelligent Systems Laboratory

Min4x11 7x12 7x13 1.5x21 . 2x53For batch(row)i 1i 2i 3i 4i 5For machine j 1(column)j 2j 3 T ijx ij b jx11 x12 x13 1x21 x22 x23 1x31 x32 x33 1x41 x42 x43 1x51 x52 x53 1Solutionx11 1, x22 1, x31 1, x43 1, x53 1 x ij 1j JMachine 1: batches 1, 3Machine 2: batch 2Machine 3: batches 4, 53x11 1x21 4x31 5x41 1x51 218x12 1x22 5x32 6x42 2x52 207x13 6x23 4x33 3x43 3x53 42i Ixij 0, 1 for i 1 to 5, j 1 to 4The University of IowaIntelligent Systems LaboratoryModel 2: Limited Tool Magazine CapacityNo batch splittingkijspace occupied in a tool magazine by tools required for operation i at machine ji I, j Jcapacity of the tool magazine on machine j, j Jpenalty for using the tool magazine on machine j, j Jupper limit on the number of tool magazines to be used on machine j, j Jnumber of tool magazines required on machine j, j JfjqjZjzjThe University of IowaIntelligent Systems LaboratoryModel 2min Cijxij qj z j x ij 1i IMin total processing tool magazinepenalty costOne batch per machine Tijx ij bjj JMachine capacity constrainti I j Jj Ji I k ijx ij f jz jfor each j Jxij 0, 1for each i I, j Jzj Zjinteger for each j J Integrality boundingi ITool magazine capacity constraintIntegrality constraintconstraintThe University of IowaIntelligent Systems LaboratoryThe University of Iowa(1) number of operation types I 10(2) number of machine types J 3(3) matrix of machining timesModel 3: Batch Splitting is Allowedtijcijaiyijprocessing time of each operation from batch i on machine jprocessing cost of an operation from batch i on machine jrequired number of operations in batch i (the size of batch i)number of operations of batch i to be processed on machine jmin c ijy ijMin total processing costi I j J y ij a ii IRequired number of operationsj JMachine capacity constraintj J t ijy ij b j[t ij] i Iy ij 0 integer i I, j JThe University of IowaIntegrality constraintIntelligent Systems LaboratoryIntelligent Systems LaboratoryThe University of Iowa12345678910129.118.431.2 24.516.58.535.419.424.1224.5 14.522.014.56.4 18.126.83 20.028.016.5 17.4Batch - machinematrix 39.1 Intelligent Systems Laboratory

(4) vector of batch sizes[ai ] [18, 17, 15, 14, 15, 20, 12, 18, 12, 16](5) vector of machine capacity[bj ] [1800, 1000, 1500]Line BalancingSolutionAssignment of tasks to stationsy12 18, y21 17, y33 15, y42 4, y43 10,y51 9, y52 6, y62 20, y72 12, y81 18,y91 12, y10,1 16Task x station matrixMachine 1: 17 operations (of type 2), 9(5), 18(8), 12(9), 16(10)Machine 2: 18(1), 4(4), 6(5), 20(6), 12(7)Machine 3: 15(3), 10(4)NOTE: Operations 5 are processed on machines 1 and 2The University of IowaIntelligent Systems LaboratoryThe University of Iowa?Intelligent Systems Laboratory?What leads to more uniform utilization ofmachine capacity:When the capacity loading Gantt chartwould be equivalent to the schedule Gantt chart? Capacity balancing with batch splitting, or Capacity balancing without batch splitting?The University of IowaM1M2Capacity420 [minutes]14Conflict 1Conflict 22Intelligent Systems LaboratoryIf there were NOprecedence [minutes]M225ScheduleThe University of IowaIntelligent Systems LaboratoryManufacturing Scheduling42480The University of IowaScheduling3670Intelligent Systems LaboratoryThe University of IowaIntelligent Systems Laboratory

Manufacturing SchedulingExample: Two machine scheduleOperation 18 hour periodM1DefinitionScheduling is the assignment of operations,jobs, tasks, etc. to resources in time.1M2730463526Time88910 12Makespan 12The University of IowaIntelligent Systems LaboratoryManufacturing SchedulingBasic ModelsFlow ShopMachine 3Π1Π2Μ1Μ2Μ3Μ4Π3PartsJob Shop (More general than the flow shop)Π1Π2Μ1Μ2Μ3Μ4The University of IowaIntelligent Systems LaboratoryParameters Used in Scheduling Modelstij processing time of operation oi on machine Mjri readiness of operation oi for processing, i.e., the time operation oi’savailable for schedulingdi due date, i.e., the promised delivery time of operation oiwi weight (priority), which expresses the relative urgency of operation oiCi completion time of operations oiFi flow time (the difference between completion time and readiness),Fi Ci - riLi lateness (the difference between completion time and due date),Li Ci - diTi tardiness, Ti max {Ci - di , 0}Π3PartsThe University of IowaIntelligent Systems LaboratoryThe University of IowaIntelligent Systems Laboratory

MRP Balancing Scheduling Forecasting MRP II (Manufacturing Resource Planning II) The University of Iowa Intelligent Systems Laboratory 1970’s MRP Material Requirements Planning 1980’s MRPII Manufacturing Resource Planning 1990’s ERP Enterprise Resource Planning (e.g., SAP system) MPS MRP

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