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Conceptual System Designs—Integrating Just-in-Time with Enterprise Resources Planning

Figure 2 shows a conceptual design of an integrated ERP/JIT system for a hybrid manufacturing environment. The conceptual design for a repetitive environment is similar to that of the hybrid environment ex­cept that there is no shop floor control and capacity planning modules. The figure shows an outline of the various subsystems and their inter­faces in the total system. The conceptual system design consists of the long-term and intermediate-term planning systems, and intermediate and short-term execution and control systems. The more hybrid a manu­facturing environment is, the more it uses of the system functionalities described in this paper and vice versa.

Three Tools for Synchronous Planning/Scheduling

1.  Rate-Based Mixed Model Production
Planning/Demand Management

Rate-based mixed-model production planning is a prerequisite to pro­viding shorter delivery and uniform load across the entire production and the supply chain. The rate plan must include capacity flexibility with limits and hence allowable demand fluctuation by time period and over time. The flexible limits are calculated using the line balance model. These limits must be agreed upon by marketing, manufactur­ing, and materials. Rate-based demand or order management usually functions within the flexible demand limits unless it is an exception. This process requires working very closely with the customers in un­derstanding their expectations, future demand, and demand variations. Using a what-if simulation model the mixed-model production plans are developed with data from the customer demand forecasts, and pro­duction and supply capacities. The master production schedule in con­junction with the line balance model translates the production plan into a rate-based, end-item build schedule to satisfy the customer require­ments and forecasts within a given product mix.

2.  Rate-Based Material Management/Supplier Kanbans

The MRP-driven rate-based material planning system is used for establishing the long-term supplier requirements and blanket or­ders. In the short term it is used for follow up or as a checklist for the kanban pull process. It also provides release rates for purchase parts that are used primarily in the hybrid environment. Coupled with the supplier partnership for responsive supply channels, infor­mation sharing, and quality at the source, the rate-based material planning system and the kanban pull system facilitate the delivery of the right mix of materials to flow lines at the required time based on the demand pull.

3.  Rate-based Production Management/
Production Kanbans

The MRP-driven scheduling system provides daily net rate production schedules for each work cell, feeder line, and flow line. It establishes the schedule priorities between the kanban items and unique items to be manufactured. It also provides mixed-model release rates for the manufactured items in a hybrid environment. Producing to a mixed model sequence provides for balancing of the flow process and level demand pull across the flow line, supplying feeder lines as well as through the supply channels.


To Be Continued

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