Hamidreza REZAEI

1
2
Context and ProblemStatement

PRODUCTION MANAGEMENT
Strategical

Tactical
3 Decision levels

Operationnal
Giard, V. (2003). Gestion de la production et des
flux, Economica, Coll.Gestion, 3eme édition.

3
Context and ProblemStatement

Strategical Strategical
Horizon:
• Long Term (+ 18 month)

Type of decision:
• Opening or closing site Tactical
• Localization of plants or warehouses
• Hiring / Dismissal
• Purchase machine…

Provide a framewok to the tactical level Operationnal

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Context and ProblemStatement

Tactical
Strategical
Horizon:

• Midterm(from 1 to 18 month)

Type of decision: Tactical

• Production plan
• Maintenance plan
• Staff training etc..

Operationnal
Provide a framewok to the
operationnal level.

5
Context and ProblemStatement

Operationnal Strategical
Horizon:
• Short term (daily)

Type of decision:
Tactical
• Scheduling
• Inventory management…

Operationnal

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Context and ProblemStatement

Strategical

Strategical
Planification

Tactical
Tactical

Operationnal Operationnal

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Context and ProblemStatement

Strategical

Horizon:
• Long Term (+ 18 month)
Strategical
Objective:
• Validates the strategy that will deploy
the company in terms of growth and
investment.
Tactical
Methods used :
• Balance between workload / capacity on
a long-term in order to validate the
Operationnal
methods used (open / closed sites etc..)

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Context and ProblemStatement
Tactical

Horizon:
• MidTerm (From 1 to 18 month)

Goal:
Strategical
• Determines the quantities to be
produced on a medium term horizon in
order to find a balance between the rate
of customer satisfaction and the various
Tactical
logistics costs:
• Production costs
• Holding costs Operationnal
• Setup costs
• Shortage costs …

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Context and ProblemStatement
Opérationnelle

Horizon:
• Short term (Daily, Weekly…) Strategical
Goal:
• Schedule the production over a
short term horizon: Tactical
• determines the starting times
of tasks on different resources
to ensure the production of Operationnal
quantities of items defined the
tactical plans.

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Context and ProblemStatement

Strategical
planification
Tactical
planification
Operationnal
planification RISKS

- Need to link: Problems of consistency and feasibility.

- How to take into account uncertainty (risks): Problem synchronization.

- Replanning problem: should we respond to all risks and what is the cost of such
replanning?

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 Context and ProblemStatement

MRP2
Approach
Vollmann, T., Berry, D. et Whybark (1997).
Manufacturing planning and control systems,
4th ed., New York et al.

12
Context and ProblemStatement
The MRP2 Approach
(Manufacturing resources Planning)

Kind of approach
Plan level n
• Hierarchical
• Structure in several plans.

For each plan:

• A goal,
• An horizon,
• A level of detail,

How it works :
Plan level n-1
• Each plan gives a framework to the next one (which is
immediately below it in the hierarchy)

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Context and ProblemStatement

The tactical planning in MRP2 Sales and Operation

Planning (S&OP)
3 plans
• Sales and Operation Planning
• Compromise between production
and sale. Master Production
• Master Production Schedule Schedule (MPS)
• Plan the manufacturing of all the
end-items
• Material Requierement Planning
• Plan the manufacturing of all the
components. Material Requierement
Planning (MRP)

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Context and ProblemStatement
S&OP Sales and Operation
• Tries to find a compromise Planning (S&OP)
between the objectives of sales
and production capacity thanks
to an analysis of the adequacy
load / capacity
Master Production
Horizon Schedule (MPS)
• From 12 to 18 month

Elaboration
Material Requierement
• Can be elaborated thanks
graphic tools or MILP Planning (MRP)

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Context and ProblemStatement

MPS Sales and Operation

• Try to find the right quantities Planning (S&OP)
of product to be manufactured
in order to meet the customer
requests.
Master Production
Horizon Schedule (MPS)
• From 1 to 6 month

Elaboration
• With a MILP Material Requierement
• With Algorithmes Planning (MRP)

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Context and ProblemStatement
MRP Sales and Operation
• Determines the amounts, dates Planning (S&OP)
of manufacture or purchase of
components necessary to
produce in time the quantities
provided in the MPS.
Master Production
Horizon Schedule (MPS)
• From 1 to 6 month

Elaboration
• With a MILP Material Requierement
• With Algorithmes Planning (MRP)

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Context and ProblemStatement

Sales and Operation

Planning (S&OP)
Planning with infinite capacity

• Find the amounts to manufacture for

each product, level by level (from end
items to components)
Master Production
Taking into account capacities Schedule (MPS)
• Smoothing of the production
(precedence constraints between
products are ignored)

production sequencing Material Requierement

• Precedence constraints are taken into
Planning (MRP)
account.

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Context and ProblemStatement

Planification with infinite capacity

Taking into account capacities

Production sequencing
20
MRP Grouping Rules
•Lot for lot : batches match the manufacturing orders
• Lot for lot, with minimum size.
• EOQ : batch size is the economic order quantity
• Fixed lot, or multiple of fixed lots.
• Part period cover : the batch size covers the demand for a given number of periods

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 Example of MRP A B C

Product A Assembly/production delay 2 weeks 2 weeks 1 week

Lot sizes Lot for lot 30 40
Component B Component C
2 1 Initial inventory 10 10 5

Periods 0 1 2 3 4 5
Lot for lot Gross requirements 30
Delay: 2 weeks Expected delivery
Product A

Inventory 10
Net requirements
Manufacturing order (end)
Manufacturing order (begin)
Lot size: 30 Gross requirements
Delay: 2 weeks Expected delivery 15
Product B

Link: 2 Inventory 10
Net requirements
Manufacturing order (end)
Manufacturing order (begin)
Lot size: 40 Gross requirements
Delay 1 week Expected delivery
Product C

Link: 1 Inventory 5
Net requirements
Manufacturing order (end)
Manufacturing order (begin) 22
 Example of MRP A B C

Product A Assembly/production delay 2 weeks 2 weeks 1 week

Lot sizes Lot for lot 30 40
Component B Component C
2 1 Initial inventory 10 10 5

Periods 0 1 2 3 4 5
Lot for lot Gross requirements 30
Delay: 2 weeks Expected delivery
Product A

Inventory 10 10 10 10
Net requirements
Manufacturing order (end)
Manufacturing order (begin)
Lot size: 30 Gross requirements
Delay: 2 weeks Expected delivery 15
Product B

Link: 2 Inventory 10
Net requirements
Manufacturing order (end)
Manufacturing order (begin)
Lot size: 40 Gross requirements
Delay 1 week Expected delivery
Product C

Link: 1 Inventory 5
Net requirements
Manufacturing order (end)
Manufacturing order (begin) 23
 Example of MRP A B C

Product A Assembly/production delay 2 weeks 2 weeks 1 week

Lot sizes Lot for lot 30 40
Component B Component C
2 1 Initial inventory 10 10 5

Periods 0 1 2 3 4 5
Lot for lot Gross requirements 30
Delay: 2 weeks Expected delivery
Product A

Inventory 10 10 10 10
Net requirements 20
30-0-10
Manufacturing order (end)
Manufacturing order (begin)
Lot size: 30 Gross requirements
Delay: 2 weeks Expected delivery 15
Product B

Link: 2 Inventory 10
Net requirements
Manufacturing order (end)
Manufacturing order (begin)
Lot size: 40 Gross requirements
Delay 1 week Expected delivery
Product C

Link: 1 Inventory 5
Net requirements
Manufacturing order (end)
Manufacturing order (begin) 24
 Example of MRP A B C

Product A Assembly/production delay 2 weeks 2 weeks 1 week

Lot sizes Lot for lot 30 40
Component B Component C
2 1 Initial inventory 10 10 5

Periods 0 1 2 3 4 5
Lot for lot Gross requirements 30
Delay: 2 weeks Expected delivery
Product A

Inventory 10 10 10 10
Net requirements 20
Manufacturing order (end)
Manufacturing order (begin)
Lot size: 30 Gross requirements
Delay: 2 weeks Expected delivery 15
Product B

Link: 2 Inventory 10
Net requirements
Manufacturing order (end)
Manufacturing order (begin)
Lot size: 40 Gross requirements
Delay 1 week Expected delivery
Product C

Link: 1 Inventory 5
Net requirements
Manufacturing order (end)
Manufacturing order (begin) 25
 Example of MRP A B C

Product A Assembly/production delay 2 weeks 2 weeks 1 week

Lot sizes Lot for lot 30 40
Component B Component C
2 1 Initial inventory 10 10 5

Periods 0 1 2 3 4 5
Lot for lot Gross requirements 30
Delay: 2 weeks Expected delivery
Product A

Inventory 10 10 10 10
Net requirements 20
Manufacturing order (end) 20
Manufacturing order (begin)
Lot size: 30 Gross requirements
Delay: 2 weeks Expected delivery 15
Product B

Link: 2 Inventory 10
Net requirements
Manufacturing order (end)
Manufacturing order (begin)
Lot size: 40 Gross requirements
Delay 1 week Expected delivery
Product C

Link: 1 Inventory 5
Net requirements
Manufacturing order (end)
Manufacturing order (begin) 26
 Example of MRP A B C

Product A Assembly/production delay 2 weeks 2 weeks 1 week

Lot sizes Lot for lot 30 40
Component B Component C
2 1 Initial inventory 10 10 5

Periods 0 1 2 3 4 5
Lot for lot Gross requirements 30
Delay: 2 weeks Expected delivery
Product A
Product A

Inventory 10 10 10 10 0
0+10+20-30 0
Net requirements 20
Manufacturing order (end) 20
Manufacturing order (begin) 20
Lot size: 30 Gross requirements 40
Delay: 2 weeks Expected delivery 15
Product B
Product B

Link: 2 Inventory 10
Net requirements
Manufacturing order (end)
Manufacturing order (begin) 30
Lot size: 40 Gross requirements 20
Delay 1 week Expected delivery
Product C
Product C

Link: 1 Inventory 5
Net requirements
Manufacturing order (end)
Manufacturing order (begin) 27
 Example of MRP A B C

Product A Assembly/production delay 2 weeks 2 weeks 1 week

Lot sizes Lot for lot 30 40
Component B Component C
2 1 Initial inventory 10 10 5

Periods 0 1 2 3 4 5
Lot for lot Gross requirements 30
Delay: 2 weeks Expected delivery
Product A
Product A

Inventory 10 10 10 10 0 0
Net requirements 20
Manufacturing order (end) 20
Manufacturing order (begin) 20
Lot size: 30 Gross requirements 40
Delay: 2 weeks Expected delivery 15
Product B
Product B

Link: 2 Inventory 10
Net requirements
Manufacturing order (end)
Manufacturing order (begin) 30
Lot size: 40 Gross requirements 20
Delay 1 week Expected delivery
Product C
Product C

Link: 1 Inventory 5
Net requirements
Manufacturing order (end)
Manufacturing order (begin) 28
 Example of MRP A B C

Product A Assembly/production delay 2 weeks 2 weeks 1 week

Lot sizes Lot for lot 30 40
Component B Component C
2 1 Initial inventory 10 10 5

Periods 0 1 2 3 4 5
Lot for lot Gross requirements 30
Delay: 2 weeks Expected delivery
Product A

Inventory 10 10 10 10 0 0
Net requirements 20
Manufacturing order (end) 20
Manufacturing order (begin) 20
Lot size: 30 Gross requirements 40
Delay: 2 weeks Expected delivery 15
Product B

Link: 2 Inventory 10 10 15
Net requirements 15
Manufacturing order (end) 30
Manufacturing order (begin) 30
Lot size: 40 Gross requirements 20
Delay 1 week Expected delivery
Product C

Link: 1 Inventory 5 5 25
Net requirements 15
Manufacturing order (end) 40
Manufacturing order (begin) 40 29
 Master Production Schedule

Item

20 20 20 50 20 50 20
Sécu : O
Lmul : 10 20 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
20 20 50 20 50 20
Lot : BQ LT 20 20 50 20 50 20
Cycle : 2j 20 20 50 20 50 20

50 50 50 50 50 10 10 10 10 10 10 10 10 10 10 30 30 30 30 30
Sécu : O 120
Lmul : 50 200 270 220 170 120 70 60 50 40 30 20 10 0 40 30 20 40 10 30 0 20
10 10 20 30
Lot : BQ 50 50 50 50
Cycle : 6j 50 50 50 50

FORECAST

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Cycle

Cycle 50
50

220 220 600 550 820 600 1150 220

Sécu : 250 200
Lmul :250 2500 2500 2700 2480 2480 2480 2260 1660 1110 1110 290 290 1440 1440 290 290 290 320 320 320 320
Lotis : 5j. 560 560 1710 1710 1710 180 180 180 180
1750 250
Cycle : 2 j 1750 250
200 200 400 500 600 400 900 200
Sécu : 250
Lmul :250 3500 3500 3500 3300 3300 3300 3100 2700 2200 2200 1600 1600 1200 1200 300 300 300 350 350 350 350
Lotis : 5j.
150 150 150 150
250
Cycle : 5 j 250
1750 250
Sécu : 500 500
Lmul :500 1500 1500 1500 2000 2000 2000 2000 2000 2000 2000 750 750 750 750 750 500 500 500 500 500 500
Lotis : B.Q. 250
500
Cycle :10 j 500
250
Sécu : 500 500
Lmul :500 1500 1500 1500 1500 1500 2000 2000 2000 2000 2000 2000 2000 1750 1750 1750 1750 1750 1750 1750 1750 1750
Lotis : B.Q.
Cycle :10 j
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 Tps Prep + (Qté x Tps U)
1,6 + (20 x 0,032)
6,4h/j

EML 100 20 2,24 2,24

EML 110 20 2,24 2,24
EML 120 50 3,2 2,4 0,8 Capa – Charge
EML 130 20 2,24 2,24 7,2 – 6,4 = 0,8
EML 140 50 3,2 2,4 0,8
EML 150 20 2,24 2,24
EMV 160 50 3,2 3,2
0 +(20 x 0,128)
EMV 170 50 3,2 3,2
EMV 180 50 3,2 3,2
EMV 190 50 3,2 3,2
7,2h/j 2,24 8,64 15,04 2,24
EML 100 20 2,56 2,56
EML 110 20 2,56 2,56
EML 120 50 6,4 6,4
EML 130 20 2,56 2,56
EML 140 50 6,4 6,4
EML 150 20 2,56 2,56
EMV 160 50 6,4 0 +(50 x 0,48) 1,6 4,8
EMV 170 50 6,4 1,6 4,8 Capa – Charge
EMV 180 50 6,4 1,6 4,8 7,2 – 2,4 = 4,8
EMV 190 50 6,4 1,6 4,8
7,2h/j 2,56 15,36 23,36 7,36
EMV 160 50 24 2,4 7,2 7,2 7,2
EMV 170 50 24 2,4 7,2 7,2 7,2
EMV 180 50 24 2,4 7,2 7,2 7,2
EMV 190 50 24 2,4 7,2 7,2 7,2
0 9,6 48 38,4
Total – déjà chargé
24 – 7,2 x 3 = 2,4 CAPACITE REELLE
FINI LE 24/03
DU=> EN STOCK LA
POSTE
VEILLE AU SOIR32
O.F. N° : ARTICLE QUANTITE DEBUT FIN STATUT
160 EMV 50 07/03 -> 29/02 15/03 -> 08/03 F
180 EMV 50 14/03 -> 06/03 22/03 -> 14/03 F

2,24
2,24
2,4 0,8
Décalage des besoins 2,24
dépendants !!! 2,4 0,8
2,24
3,2 3,2
3.2
3,2
3,2 3,2
3,2
2,24 8,64 15,04 2,24
2,56
2,56
6,4
2,56
6,4
2,56
1,6 4,8 1,6 4,8
1,6 4,8
1,6 4,8 1,6 4,8
1,6 4,8
2,56 15,36 23,36 7,36
2,4 7,2 7,2 7,2 2,4 7,2 7,2 7,2
2,4 7,2 7,2 7,2
2,4 7,2 7,2 7,2 2,4 7,2 7,2 7,2
2,4 7,2 7,2 7,2
0
9,6 9,6
31,2 48
31,2 2438,4

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