PRODUCTION OPTIMIZATION STRATEGY.pdf
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惠惠悋 悋惓悸 悋愕惠惘悋惠悴悋惠 惠忰愕 悋悒惠悋悴 惠忰惠 悒愆惘悋 悋惆惠惘 愕惘 愀 惺 惺 悋惠惘慍 惺 惓悋惓悸 悖悋惺 惘悧愕悸: 悋愕惠惘悋惠悴悸 悋 (悋惘悸) 悋愕惠惘悋惠悴悸 惠 悋惠愕 (悋愕惘惺悸) 悋愕惠惘悋惠悴悸 悋惠悽愀愀 悋愆悋. 惠惆 悵 悋悋愕惠惘悋惠悴悋惠 悒 惠忰 悋悖惓悸 悋惺悋惠 悋悒惠悋悴悸 悋惘惆 悋惠惶惺 惡悋 惠悋愆 惺 悋悋忰惠悋悴悋惠 悋愕悸. 惠惷 悋惶 惠忰悋 愆悋悋 惡惆悋悧 悋悽悋惘悋惠 悋惘惠惡愀悸 惡 悋愕惠惘悋惠悴悸 惠悖惓惘悋惠悋 惺 悋悖惆悋悄 悋惺悋.
PRODUCTION OPTIMIZATION STRATEGY.pdf
- 1. Management&DevelopmentCenter 1 Production Optimization Strategies 悋愕惠惘悋惠悴悋惠 惠惺惴 悋悒惠悋悴 Dr. Eng. Samir Lotfi ALI Management Consultant Mobile : (+2) 01001790797 Email : s.ali@mdcegypt.com LinkedIn : linkedin.com/in/dr-eng-samir-lotfi-ali-89072721 Web site: www.mdcegypt.com YouTube : youtube.com/channel/UCT1zIJRUHcuiIsjaI6AinWw Twitter: https://twitter.com/Mdcegypt Contents PURPOSE悋惆................................................................................................. 2 TYPES OF PRODUCTION OPTIMIZATION STRATEGIES................................................... 2 1. POSITIONING STRATEGY (FLEXIBILITY) )(悋惘悸 悋悒惠悋悴 悋 悋愕惠惘悋惠悴悋惠................ 3 POSITIONING STRATEGY ALTERNATIVES 惡惆悋悧 悋愕惠惘悋惠悴悋惠 悋 悋悒惠悋悴 .......................4 HMLV HIGH MIX LOW VOLUME MANUFACTURING - PRODUCT FOCUSED .................................4 HVLM HIGH VOLUME LOW MIX MANUFACTURING - PROCESS FOCUSED...................................4 2. LEAD TIME STRATEGY (SPEED) 悋惠悴 惠惘 愕惘惺悸 悋愕惠惘悋惠悴悋惠................................... 6 PULL STRATEGY ..................................................................................................6 PUSH STRATEGY..................................................................................................6 PULL/PUSH STRATEGY .........................................................................................6 FACTORS AFFECTING THE CHOICES BETWEEN LEAD TIME STRATEGIES: ....................9 1. PRODUCT STRUCTURE.................................................................................................9 2. PRODUCT LIFE CYCLE................................................................................................11 3. AGGREGATE PLANNING STRATEGY 惠悴悋惠 悋悴惺 悋惠悽愀愀 悋愕惠惘悋惠悴悸.................. 13 PROACTIVE STRATEGY: (DEMAND MANAGEMENT).................................................13 REACTIVE STRATEGY: CAPACITY OPTIONS: CHASE/ LEVEL ALTERNATIVES ..............13 1. CHASING DEMAND (DEMAND MATCHING)....................................................................13 2. LEVEL PRODUCTION .................................................................................................14 3. MIXED STRATEGY....................................................................................................14
- 2. Management&DevelopmentCenter Purpose 悋惆 To define an optimal Operation Strategy that drives production efforts and all resources to achieve the corporate Strategy Manufacturing strategy refers to exploiting certain properties of the manufacturing function as a competitive weapon (Skinner) 悋愕惠惘悋惠悴悸 悖惓 惠忰惆惆 惺悋惠 悋悋惠悋悴悸 悋惠 惠惆惺 悴惆 悋惺悋惠 悋悸 悋 悋惘惆 惠忰 悋悋 愕惠惘悋惠悴悸 悋惺悋悸 愆惘悸 愕悋忰 悋惠惶惺 悽悋惶 惡惺惷 悋愕惠愃悋 惠惺 悋惠惶惺 悋愕惠惘悋惠悴悸 惠悋愕悸 (Skinner) Types of Production Optimization Strategies 悋愕惠惘悋惠悴悋惠 悖悋惺 悋悒惠悋悴 惠惺惴 Production Optimization Strategies are based on the Corporate strategy, its resources and its products characteristics The following are three main Types: 惠惡惓 悋愕惠惘悋惠悴悋惠 惠惺惴 悋悒惠悋悴 悋悋愕惠惘悋惠悴悸 悋惺悋悸 愆惘悸 愀惡惺悸 悋惘惆悋 惠悴悋惠悋 悋 悖 惓悋惓悸 悋悋愕惠惘悋惠悴悋惠 悵 1. Positioning strategy (flexibility) 悋愕惠惘悋惠悴悸 悋 悋悋惠悋悴 悖 悋惘悸 2. Lead time strategy (speed) 悋愕惘惺悸 悋愕惠惘悋惠悴悸 3. Aggregate planning strategy (work force & capacity options)
- 3. Management&DevelopmentCenter 3 1. Positioning Strategy (Flexibility) 悋愕惠惘悋惠悴悋惠 悋 悋悒惠悋悴 ( 悋惘悸 ) Production operations types and resources define its possible dimensions of Flexibility. 惠忰惆惆 悋惺悋惠 悋悋惠悋悴悸 悋愆惘悸 悋惘惆悋 悋悋惡惺悋惆 悋悽惠悸 惆惘悸 悋愆惘悸 惺 悋惠 惺 悋忰惠悋悴悋惠 悋愕 惓 惠忰惆惆 悋悋愕惠惘悋惠悴悋惠 悋悋愕惡悸 Table 1 Flexibility Dimensions 悴惆 惘 1 悖惡惺悋惆 悋惘悸 悋惠 惠悴悋惠 悋愆惘悸 Flexibility Dimensions 悋悋惡惺悋惆 悋悽惠悸 惘悸 Level Remarks 悋忰惴悋惠 High Medium Low 1. Product Mix Flexibility 悋惆惘悸 惺 惠惺 悋惠悴悋惠 2. Changeover Flexibility 愕惘惺悸 惠愃惘 悋惠悴悋惠 惺 悽愀 悋悋惠悋悴 3. Modification Flexibility (Customization) 悋惠悴 悋惶悋惠 惠愃惘 4. Volume Flexibility (Coping with Changes in Demand) 惘悸 惠愃惘 忰悴 悋悋惠悋悴 惡悋 惠愆 惺 悋慍悋惆悸 悋愀惡 5. Rerouting/Program Flexibility 惠愃惘 惠惠悋惡惺 悋惺悋惠 悋悋惠悋悴悸 6. Resource Flexibility 惘悸 悋愀悋悸 悋悋惠悋悴悸 惡悋 惠愆 惺 悋惠愃惘 悋愀惡 7. Flexibility Responsiveness 愕惘惺悸 悋悋愕惠悴悋惡悸 惠愃惘悋惠 悋愕 8. Delivery Flexibility 悋惘悸 悋惺惆 悋惠惘惆 The above table helps in defining in defining the optimum positioning strategy: 悽悋 悋悴惆 悋愕悋惡 悋 惠忰惆惆 悋悋愕惠惘悋惠悴悸 悋惓 悒惠悋悴 惷悄 悋惡惆悋悧 悋悋愕惠惘悋惠悴悸 悋惠悋悸 :
- 4. Management&DevelopmentCenter Positioning Strategy Alternatives 惡惆悋悧 悋愕惠惘悋惠悴悋惠 悋 悋悒惠悋悴 HMLV High Mix Low Volume Manufacturing - Product Focused (Organizing the Productive resources around the Product) 惶愃惘悸 惡悋惠 惺惆惆悸 悖惶悋 悋惠悋悴 HMLV ( 悋惠悽愀愀 惷悄 悋惠悴悋惠 悋愀惡悸 悋愕 ) Table 2 Characteristics of HMLV (High Mix Low Volume Manufacturing) 悴惆 惘 2 悋惶悋惠 悋惠悋悴 悖惶悋 惺惆惆悸 惡悋惠 惶愃惘悸 HMLV Low Volume 悋忰悴 惶愃惘悸 惆惺悋惠 悋惠悋悴 Wide Variety /High Customization 惠惺惆惆悸 惠悴悋惠 悋悋惺 悋惠悋悴 Highly Flexible 惺悋悸 悋悋惠悋悴 惘悸 General Purpose Equipment 悋悋悋惠 悋 悖 惠惠悴 悖 惺 悋惠悴悋惠 High Skilled and Highly Trained Workforce 惺悋悸 悋惘悸 惆惘惡悸 惠惆惘惡悋 惠愀惘悋 Varying Work Flow 惠惆悋悽 惠愃惘 悋惺 惠愕愕 HVLM High Volume Low Mix Manufacturing - Process Focused (Organizing the Productive Resources According to Capability) 悋惡惘 悋悋惠悋悴 忰惆惆悸 悖惶悋 HVLM 悋惠悽愀愀 愀惡悋 悋惘惆 悋悋悋悋惠 悋悋惠悋悴悸 Table 3 Characteristics of HVLM High Volume Low Mix Manufacturing 悴惆 惘 3 悋惶悋惠 悋悋惠悋悴 悖惶悋 悋惡惘 忰惆惆悸 HVLM High Volume 惡惘 悋惠悋悴 忰悴 Limited variety Products/Services 悋惠悋悴 悋悋惺 忰惆惆 悋惠悴悋惠 Line Flows 忰惆惆悸 悋惠悋悴 悽愀愀 Special Purpose Equipment 惠悽惶惶悸 悋悋惠 Low Labor Skills 惺悋悸 惠愕愀悸 惡惆 悋惘悸 惺悋悸 Capital intensive/ High Automation 惠惠愀惡 悋愕惠惓悋惘悋惠 惡惘悸 惺惆悋惠 悖惠悋惠悸 Efficient 悋悄惠悋 惺悋悸 悋悋惠悋悴悸
- 6. Management&DevelopmentCenter 2. Lead Time Strategy (Speed) 悋愕惠惘悋惠悴悋惠 愕惘惺悸 惠惘 悋惠悴 There are four lead-time strategies: TABLE 4 LEAD TIME STRATEGIES 悴惆 惘 4 悋愕惠惘悋惠悴悋惠 悋惠 悋 惠惡悸 悋忰惠悋悴悋惠 悋愕 ( 悋愕惘惺悸 ) Pull Strategy (The Customer Pulls his needs) 1 . 悋惺 愕忰惡 悋忰惠悋悴悋惠 惠惠忰惆惆 悋惠悴悋惠 ( 悸 - 惺 悋惶悋惠 ) 惷悄 悋悋忰惠悋悴悋惠 悋愀惡悋惠 悋惺悸 惺 惠愕 悋 惺 Engineer to Order ETO: Products are designed to customer specification 悋惠惶 悋惺 愀惡 愀惡悋 o 悋惺 悋惶悋惠 愀惡悋 悋惠悴悋惠 惠惶 o 惠愕惠愃惘 悖愀 惠 惠惡悸 悋忰惠悋悴悋惠 悋惺 Lead Time o 悖 悸 悽慍 o 惠愀悋惡 惠悋 惡 愀惡悋惠 悋惺悋悄 惡 悋悋惠悋悴 Make to Order MTO: Standard design, produced only upon order 悋惺 愀惡 愀惡悋 悋惠惶惺 o 惠惶悋惠 愀 惡悋愀惡 惠惠悴 愀悸 o 惓悋 悖愀 惠 惠惡悸 悋忰惠悋悴悋惠 悋惺 Lead Time o 悽慍 悋悽悋悋惠 悋愕惠慍悋惠 o 愆惡 惠愀悋惡 惠悋 惡 愀惡悋惠 惺悋悄 悋悋惠悋悴 Push Strategy (the Company pushes its products to the markets) 2 . 悋愕惠惘悋惠悴悸 惆惺 悋惠悴悋惠 悋 悋愕 惠惠惺 悋愆惘悸 悋忰惠悋悴悋惠 悋愕 惠惷惺 惷悄 悵悋 悋惠惺 悽愀悸 悋惠悋悴悸 惠惠悴 惡悴惡悋 惠悴悋惠 愀悸 惓 惠忰悋 悖 惠愕 悋 惺悋悄 Make to Stock MTS: Finished product made prior to order 惠悽慍 悋悋惠悋悴 o 惠惶惺 悋惠悴悋惠 愆悋 悋悋悧 惡 惶 愀惡悋惠 悋惺 o 悖 惠 惠惡悸 悋忰惠悋悴悋惠 悋惺 Lead Time 忰悋悸 悋惠愀悋惡 惺 悋忰惠悋悴悋惠 悋惺悋悄 o 悽慍 惡惘 悋惠悴悋惠 悋悋悧悸 惡悖惶悋 悋悽惠悸 o 悋忰惠悋 惡惘 惺惆 悋惠愀悋惡 惡 悋惠悴悋惠 愀惡悋惠 悋惺悋悄 Pull/Push Strategy 3 . 悋悋愕惠惘悋惠悴悸 悋慍惆悴悸 惠惠惺 悋愆惘悸 悋忰惠悋悴悋惠 悋愕 惠惷惺 惷悄 悵悋 悋惠惺 悽愀悸 悋惠悋悴悸 惠惠悴 惡悴惡悋 悋惠 惠悴悋惠 悗悴 Postponement Strategy 悋惠悴惺 悋悋悧 惠悴 悋 悖 惶 悋惠悴 Assemble to Order ATO: Subassemblies produced, assembled upon order 悋惺 愀惡 愀惡悋 悋惠悴惺 o 惠惶惺 悋惠 悋惠悴 惠悴惺 惡悴惘惆 惶 愀惡悋惠 悋惺 o 惠 惶惘 惠惡悸 悋忰惠悋悴悋惠 悋惺 Lead Time o 悽慍 惡惘 悋惠悴悋惠 悋悋悧悸 惡悖惶悋 悋悽惠悸 o 悋忰惠悋 惡惘 惠愀悋惡 惡 悋惠悴悋惠 愀惡悋惠 悋惺悋悄
- 7. Management&DevelopmentCenter 7 MPC-strategies in depending on lead-time variability Source: K. Karlsson1, D.Tesfamariam, Manufacturing strategy and Manufacturing system flow principle: A decision model approach,
- 8. Management&DevelopmentCenter Row Material Delivery Manufacturing Sub-assembly Final Assembly Delivery to Customer Order Cycle Time Customer MRP Maintain Desired Stock Level Customer Order Raw Material Row Material Delivery Manufacturing Sub-assembly Final Assembly Delivery to Customer Order Cycle Time Customer KANBAN Maintain Desired Stock Level KANBAN Two Bins Customer Order Finished Goods KANBAN Row Material Delivery Manufacturing Sub-assembly Postponed Final Assembly Delivery to Customer Order Cycle Time Customer Assemble To Order ATO (Leagile) Sub Assemblies Maintain Desired Stock Level KANBAN Two Bins Customer Order Row Material Delivery Covert Desire into Design Manufacturing Sub-assembly Final Assembly Delivery to Customer Customer Desire Customer Order Product Development & Order Cycle Time Customer Design To Order
- 9. Management&DevelopmentCenter 9 Factors affecting the choices between Lead Time Strategies: 悋惺悋惶惘 悋惘悴忰悸 悋悽惠悋惘 惡 悋悋愕惠惘悋惠悴悋惠 悋悽惠悸 1. Product Structure 悖悋 : 悋惠悴 A Structure 悋惠悴 惺 愆 忰惘 A We have many components that are assembled into just a few end items. 惺惆惆 悋悽悋悋惠 悋愕惠慍悋惠 悋惠 惠惠悴 惺惆惆 忰惆惆 悋悖惶悋 慍 惠惘 惴悋 惠愀惘 惠惺 Dynamic Forecasting 惠惺惆 悖悋 惡悖 惷悄 惠愃惘 惴惘 悋愕 Strategy : MTS (Make To Stock) 悋悋愕惠惘悋惠悴悸 : 悋悋惠悋悴 惠悽慍 "V Structure 悋惠悴 惺 愆 忰惘 V We have limited items that produce large numbers of end items. 惺惆惆 忰惆惆 悋悽悋悋惠 悋惠 惠惠悴 悋惺惆惆 悋惠悴悋惠 Strategy : ETO (Engineer To Order) MTO (Make To Order) 悋悋愕惠惘悋惠悴悸 : 悋惠惶 愀惡悋 愀惡 悋惺 悋惠惶惺 愀惡悋 愀惡 悋惺
- 10. Management&DevelopmentCenter X Structure (Modular) 悋惠悴 惺 愆 忰惘 A We have very small amount of modules enable a large amount of end products. 悽悋悋惠 愕惠慍悋惠 惺惆惆悸 惠惠悴 惠悴悋惠 惺惆惆悸 悽悋 惺惆惆 忰惆惆 悋悋惠 悋惘悧愕悸 Modules Strategy: ATO (Assemble To Order) 悋悋愕惠惘悋惠悴悸 : 悋惠悴惺 愀惡悋 愀惡 悋惺
- 11. Management&DevelopmentCenter 11 2. Product Life Cycle 惓悋悋 : 惆惘悸 忰悋悸 悋惠悴 悴惆 惘 6 悋悋愕惠惘悋惠悴悋惠 悋惠惘忰悸 愆惘悸 愕惘惺悸 惠惡悸 愀惡悋惠 悋惺悋悄 Product Life Stage Manufacturing Strategy (Lead Time Strategy) 悋愕惠惘悋惠悴悸 悋悋惠悋悴 ( 愕惘惺悸 惠惡悸 愀惡 悋惺悋悄 ) 悋惠悴 忰悋悸 惘悋忰 Introduction MTO Make To Order (Pull Strategy) 悋惺 愀惡 愀惡悋 悋惠惶惺 愕 悋惠悴 惠惆 惘忰悸 Growth MTS Make To Stock (Push Strategy) 悋惠惶惺 惠悽慍 悋 惘忰悸 Maturity MTS Make To Stock (Push Strategy) or MTO Make To Order (Pull Strategy) 悋惠惶惺 惠悽慍 悖 悋惠惶惺 愀惡悋 愀惡 悋惺 悋惷悴 惘忰悸 Decline MTO Make To Order (Pull Strategy 悋惺 愀惡 愀惡悋 悋惠惶惺 悋惠惘悋悴惺 惘忰悸
- 12. Management&DevelopmentCenter Quality Lead Time Service Level Cost Quality Lead Time Cost Order Winer Design Capability Service Level Cost Service Level MRP KANBAN Order Winer Quality Cost Design Lead Time Cost Quality Lead Time Quality Lead Time Service Level MTO MRP Satge of PLC Introduction Growth Maturity Saturain Decline Damand Chain Strategy DTO
- 13. Management&DevelopmentCenter 13 3. Aggregate Planning Strategy 悋愕惠惘悋惠悴悸 悋惠悽愀愀 悋悴惺 惠悴悋惠 Proactive Strategy: (Demand Management) 悋愕惠惘悋惠悴悸 :悖悋 悋惡悋惆惘悸 惠忰 悋愀惡 愕悸 Coordinate Marketing & Production plans to Level Demand using the following: Pricing differentiation to shift demand from Peak Periods to off- peak periods Promotion for shifting demand more closely to capacity level Allowing Back Orders or Advance Order in peak periods Creating New Demand at off-peak periods (counter-cyclical products) 惠 悋惠愕 惡 悽愀愀 悋惠愕 悋悋惠悋悴 悋慍悸 悋愀惡 悽悋 : 愕悋愕悸 悋惠愕惺惘 惠忰惘 悋愀惡 惠惘悋惠 悋悵惘悸 悋 悽悋惘悴悋 愕悋愕悸 悋惠惘悴 悋慍悸 悋愀惡 愕惠悋惠 悋悋惠悋悴 悋愕惠悽惆悋 惴悋 惠惘悋惠 悋悋惠惴悋惘 悋忰悴慍 悋惆 惠惘悋惠 悋悵惘悸 悽 愀惡 悴惆惆 悋惠惘悋惠 悽悋惘悴 悋悵惘悸 Reactive strategy: Capacity Options: Chase/ Level alternatives 悋悖惺悋 惘惆惆 悋愕惠惘悋惠悴悸 :悋惓悋 Allow volume forecasts based on Marketing plan to drive production planning using the following: 1. Chasing Demand (Demand Matching) 悋忰悸 悋愀惡 ( 悋惠愆 惺 悋愀惡 )
- 14. Management&DevelopmentCenter 2. Level Production 3. Mixed strategy 悋愕惠惘悋惠悴悸 悋慍悴 惡 悋忰悸 悋愀惡 惠惓惡惠 愕惠 悋愀悋悋惠 悋悋惠悋悴悸