Production Logistics Management
Course Code: PM30
Course Objective
- Improve and evaluate products and production processes in order to attain and maintain a competitive edge.
- Pursue and achieve a great delivery capability and reliability with the lowest possible logistic and production costs.
- Depict the extent to which the promised dates for the placed orders can be met.
- Explain why the marketable production costs, delivery capability and delivery reliability are critical to a company's long-term market success.
- Monitor the interactions between the performance and cost objectives constantly so as to ensure the production's economic efficiency.
- Clearly demonstrate the mutual dependencies between the often contradictory logistic objectives.
Target Audience
- Anyone involved in Supply, production, distribution, and efficiency improvement of the company's logistical flows of materials, resources, capital and information.
Course Outline
Day 1
Introduction
- Logistic Key Performance Indicators for Manufacturers
- Dilemma of Operations Planning
- Model Based Problem Solving Process
- Objectives of Production Logistics
- Logistic Operating Curves – an Explanatory Model for Production Logistics
- Basic Principles of Modeling Logistic Operating Curves
- Funnel Model as a Universal Model for Describing Production Processes
- Work Content and Operation Times
- Throughput Time
- Lateness
- Logistic Objectives in a Throughput Diagram
- Output Rate and Utilization
- Work in Process (WIP)
- Weighted Throughput Time and Range
- Little’s Law
- Logistic Operating Curves for Production Processes
Day 2
Traditional Models of Production Logistics
- Queuing Models
- M/G/1 Model
- Using Queuing Theory to Determine Logistic Operating Curves
- A Critical Review of the Queuing Theory Approach
- Simulation
- PROSIM III Simulation System
- Simulation as an Aid in Determining Logistic Operating Curves
- A Critical Review of Simulation
- Deriving the Logistic Operating Curves Theory
- Ideal Logistic Operating Curves
- Ideal Minimum WIP Level
- Maximum Possible Output Rate
- Constructing Ideal Logistic Operating Curves for the Output Rate and Time Parameters
- Deriving an Approximation Equation for Calculating an Output Rate Operating Curve
- Cnorm Function as the Basic Function for a Calculated Output Rate Operating Curve
- Transforming the Cnorm Function
- Parametrizing the Logistic Operating Curves Equation
- Calculating Output Rate Operating Curves
- Calculating Operating Curves for the Time Parameters
- Normalized Logistic Operating Curves
- Logistic Operating Curves Theory and Little’s Law – a Model Synthesis
- Verifying the Logistic Operating Curves Theory
- Simulation Based Model Validation
- Validating the Model Based on Field Analyses
- Under load Operating Zone
- Extending the Logistic Operating Curves Theory
- Hierarchically Aggregating Logistic Operating Curves
- Manufacturing System Operating Curves
- Workstations with Common WIP Buffers
- Considering Overlapping Production
- Prerequisites for Applying Calculated Logistic Operating Curves
- Schedule Reliability Operating Curves
- Mean Relative Lateness Operating Curve
- Deriving an Operating Curve for Describing the Schedule Reliability
- Summarizing the Derivation of the Logistic Operating Curves Theory
Day 3
Basic Laws of Production Logistics
- First Basic Law of Production Logistics
- Second Basic Law of Production Logistics
- Third Basic Law of Production Logistics
- Fourth Basic Law of Production Logistics
- Fifth Basic Law of Production Logistics
- Sixth Basic Law of Production Logistics
- Seventh Basic Law of Production Logistics
- Eighth Basic Law of Production Logistics
- Ninth Basic Law of Production Logistics
- Applications of the Logistic Operating Curves Theory
- Developing and Analyzing Calculated Logistic Operating Curves
- Calculating the Logistic Operating Curves
- Applying Logistic Operating Curves for Analyzing a Simulated Manufacturing Process
- Evaluating Alternative Methods for Developing Potential for Logistic Improvement
- Varying the Work Content Structure
- Varying the Capacity Structure
- Calculating Logistic Operating Curves with Missing or Incorrect Operating Data
- Incorrect Work Content and Transport Time Data
- Missing or Incorrect Data for the Maximal Possible Output Rate
- An Incorrect Stretch Factor α1
- Impact of an Unsteady Process State on Developing and Interpreting Logistic Operating Curves
- Time Related Changes to the Work Content Structure
- Time Related Changes in the WIP Level
- Possibilities for Employing Logistic Operating Curves in Designing and Controlling Production Processes
- Logistic Positioning
- Implementing Logistic Operating Curves in Production Control
- Logistic Oriented Design and Parameterization of Planning and Control Strategies
- Logistic Oriented Production Design
Day 4
Practical Applications of Bottleneck Oriented Logistic Analyses
- Conducting a Bottleneck Oriented Logistic Analysis
- Determining Key Figures
- Determining Logistically Relevant Workstations
- Determining Measures
- Bottleneck Oriented Logistic Analysis in a Circuit Board Manufacturer
- Analysis’ Objectives
- Data Compilation
- Order Throughput Analysis
- Workstation Analysis
- Quantifying the Potential for Logistic Improvement
- Experiences in Applying Bottleneck Oriented Logistic Analyses
- Applying the Bottleneck Oriented Logistic Analysis in a Circuit Board Insertion Department
- Determining Throughput Time Relevant Workstations
- Estimating Existing Potential for Logistic Improvement
- Deriving and Implementing Workstation Specific Measures
- Summary of Application Experiences
- Strategies for Implementing the Bottleneck Oriented Logistic Analysis
- Applying the Logistic Operating Curves Theory to Storage Processes
- Throughput Diagram as a Model for the Logistic Procurement Process Chain
- Storage Operating Curves
- Determining Storage Operating Curves Using Simulations
- Determining Storage Operating Curves Using an Approximation Equation
- Ideal Storage Operating Curve
- Integrating Plan Deviations
- Parametrizing the Approximation Equation
- Verifying Storage Operating Curves Using Simulations
- Possible Applications
- Fields and Limits of Application
- Examples of Applying Storage Operating Curves in order to Evaluate Suppliers
Day 5
Applying the Logistic Operating Curves Theory to Supply Chains
- Supply Chain Objectives
- Weighted Service Level
- An Approximation Equation for a Service Level Operating Curve
- Correlations between the Supply Chain’s Logistic Parameters
- Example of a Supply Chain Logistic Analysis
- Logistic Oriented Storage Analysis of the Manufacturer’s Finished Goods Store
- Conducting a Bottleneck Oriented Logistic Analysis of the Manufacturer’s Production
- Logistic Oriented Storage Analysis of the Manufacturer’s Input Stores
- Bottleneck Oriented Logistic Analysis of the Supplier’s Production
- Supply Chain’s Total Potential
- Summary of Applying Operating Curves to the Supply Chain
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