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Acknowledgement
"After the cheers have died down and the stadium is empty, after the headlines have been written and after you are back in the quiet of your room and the championship ring has been placed on the dresser and all the pomp and fanfare has faded, the enduring things that are left are: the dedication to excellence, the dedication to victory, and the dedication to doing with our lives the very best we can to make the world a better place in which to live." There are so many names to thank to begin with the acknowledgement but first of all thank to The Almighty Allah, who grants us the ability & opportunity to do this project. Than to our parents, who taught us that the best kind of knowledge to have is that which is learned for its own sake and the largest task can be accomplished if it is done one step at a time .To our teachers, for being such good guider for us throughout academic carrier. To the librarian and our partners who helped a lot in gathering different information, collecting data and guiding us from time to time in making this project. This project would have never been accomplished without the reference to the work of others. We are thankful to our project supervisor Muhammad Kamran Khalid for his support and guidance.
Abstract
Production planning and control system plays a vital role in business excellence of the manufacturing firm by planning, scheduling, routing and controlling the production methods and procedures. It is equally important like other system of production operation management. This study is an effort to build a model which analyzes and compares the PPC system of manufacturing industries and Textile industries. The data collected by the previous studies and visiting analyzing and collecting the data from Shahkam Textile Pvt Limited PPC department. A comprehensive analysis of other model is done for effectiveness of developed model. The other models are complex and expensive. In Pakistan where literacy rate is low and SMEs can not use and install highly complex models. During this research and data collection through Textile sector of Pakistan it is inferred most of them are not working on standard and required level of production planning and control system. On deeply analyzing data collected during project we evidently came to following conclusions that the simple model of production planning and control system helps a lot to increase productivity, quality and efficiency etc.
List of Table
Table 1 A Brief History of Operation Management18 Table 2 Textile Sector Process and Outputs28 Table 3 Material Requirement Matrix.40
List of Figure
Figure 1 Relationship of PPC with Different Activities Figure 2 Activities in Production Planning and Control System Figure 3 Activities in Capacity Requirement Planning.. Figure 4 Modules of the YAFADI Decision Support System. Figure 5 Master Production Schedule Figure 6 Bill of Material.... Figure 7 Product Structure File 11 12 14 29 37 38 39
Table of Contents
Acknowledgement Abstract List of Figures List of Table
Chapter 1 Introduction.......................................................................................9
1.1.1 Defining Planning ....................................................................................................................... 9 1.1.2 Defining production Planning ..................................................................................................... 9 1.1.3 Defining Control ......................................................................................................................... 9 1.1.4 Production Control .................................................................................................................... 9
1.2 Production planning and control .................................................................................................. 9 1.3 Relation to Other Functions ........................................................................................................ 10 1.4 Measurement of Effectiveness.................................................................................................... 10 1.5 Activities in Production Planning and Control System ............................................................ 13
1.5.1 Aggregate Planning .................................................................................................................. 13 1.5.2 Master Production Schedule .................................................................................................... 13 1.5.3 Customers Order...................................................................................................................... 13 1.5.4 Forecasting Demands ............................................................................................................... 13 1.5.5 Spares Parts ............................................................................................................................ 13 1.5.6 Item Master File ...................................................................................................................... 13 1.5.7 Capacity Requirement Planning................................................................................................ 13
1.6 Production Planning and Control Benefits .............................................................................. 16 1.7 The Structure of the Thesis ......................................................................................................... 17 1.8 Research Question ...................................................................................................................... 17 1.9 Scope of Research ...................................................................................................................... 17
1.9.1 Purpose of Research ................................................................................................................ 17
2.2.1 Aggregate Planning .................................................................................................................. 19 2.2.2 Master Production Schedule (MPS) .......................................................................................... 20 2.2.3 MPS Working .......................................................................................................................... 20 2.2.4 Material Requirements Planning (MRP)................................................................................... 21 2.2.5 Scope of MRP........................................................................................................................... 21 2.2.6 Outputs.................................................................................................................................... 22
2.3 Objectives of Production Planning Control ............................................................................... 22 2.4 Production Planning and Control Functions .............................................................................. 22 2.5 Phaes of Production Planning and Control.24 2.6 Types of Production Planning and Control.25 2.7 Factors Affecting Production Planning and Control ................................................................ 24 2.8 Production Planning and Control Procedures ............................................................................ 25 2.9 Production Planning and Control Organization......................................................................... 26
2.9.1 Overview of the Textile Sectors in Pakistan .............................................................................. 27 2.9.2 Overview of Production Planning And Control In Textile Sector ................................................ 27 2.9.3 The YFADI DSS.......................................................................................................................... 28 2.9.4 Division of textile sector in Pakistan ......................................................................................... 31 2.9.5 PPC in textile sector of Pakistan............................................................................................... 31 2.9.6 Textile Production Process ....................................................................................................... 31
4.3 Master Production Schedule ....................................................................................................... 37 4.4 Material Requirement Planning .................................................................................................. 38 4.5 Product Structure File................................................................................................................... 39 4.6 Material Requirement Matrix ..................................................................................................... 40
Chapter 1
Introduction 1 Introduction of Production Planning and Control:
1.1 Defining Production: Production function is that part of an organization, which is concerned with the transformation of a range of inputs into the required outputs (products) having the requisite quality level. Production is defined as the step-by-step conversion of one form of material into another form through chemical or mechanical process to create or enhance the utility of the product to the user. Thus production is a value addition process. At each stage of processing, there will be value addition. Edwood Buffa defines production as a process by which goods and services are created.Some examples of production are: manufacturing custom-made products like, boilers with a specific capacity, constructing flats, some structural fabrication works for selected customers, etc., and manufacturing standardized products like, car, bus, motor cycle, radio, television, etc.[3] 1.1.1 Defining Planning: Defining is a management activity in which specific objectives are developed for achieving the strategic goals and missions. 1.1.2 Defining production Planning: Production planning may be defined as the technique of foreseeing every step in a long series of separate operations, each step to be taken at the right time and in the right place and each operation to be performed in maximum efficiency. It helps entrepreneur to work out the quantity of material manpower, machine and money requires for producing predetermined level of output in given period of time.[5] Production planning is concerned with the planning what products are to be produced in what quantity and when .it also considers the resource required accomplishing the plan. 1.1.3 Defining Control: Control is a management activity in which the plan is under observation for maintaining the righ path to strategy. 1.1.4 Production Control: Production Control determines whether the resources to execute the plan have been provided and if not take the corrective action to control the deficiency.
production to control the standardize product. But in textile sector both production planning and control emphasizes. Production planning are divided into three categories according to time: 1. Short term planning 2. Long term planning 3. Medium term planning Production planning and control system is one of the most important system in any kind of industries. Production planning and control system is useful when other systems of operation management in an industry are working well. It is an interdependent system which is base on other system .[7]
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PRODUCT DESIGN
MASTYER PRODUCTION
SCHDUALE
DETAILED PLANING
INVENTORY RECORDS
PURCHASING DEPARTMENT
SUPPLIER BASE
FACTORY
MANUFACTURING
RAW MATERIAL
DEPARTMENTS
ASSEMBLY DEPARTMENTS
FINISHED PRODUCT
PART PRODUCT
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Routing file: 1. Which machines or workers are required 2. Order of operations to be conducted 3. Length of time each operation should take Open orders file: Status of job that have already been released but it has not yet been completed.
Fig: 3 Activities in Capacity Requirement Planning Load profile compares released orders and planned orders with work center capacity Capacity can be seen as the capability to produce . Capacity = (no. of machines or workers) (no. shifts) x (utilization) (efficiency) Utilization: the percentage of available working time that a worker actually works or a machine actually runs. Efficiency: how well a machine or worker performs compared to a standard output level Load: standard hours of work assigned to a facility [6] Load percent
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Shop Floor Control: A typical SFC system consists of three phases: 1. Order release Consists of a. The route sheet, which documents the process plan for the item to be produced, b. Material requisitions to draw the necessary raw materials from inventory, c. Job cards to report direct labor time devoted to the order and to indicate progress of the order through the factory, d. To authorize the material handling personnel to transport parts between work centers e. The parts list for assembly jobs These paper documents move with production order in the operation of a conventional factory AIDC in modern factor 2. Order scheduling Assigns the production orders to the various work centers in the plant It is intended to solve two problems in production control: Machine loading Job sequencing Allocating orders to work centers is referred to as machine loading. Job sequencing involves determining the sequence in which the jobs will be processed. Priorities are established among the jobs in the queue. Dispatching rules to establish priorities: First come first served Earliest due date Shortest processing time Least slack time Critical ratio
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3. Order progress These phases are executed by a combination of computer and human resources The term manufacturing execution system (MES) is used to denote the computer software that supports SFC Other functions included in an MES are Generation of process instructions Real-time inventory control Machine and tool status monitoring Labor tracking Work order status reports: Current work center where each job is located Processing hours remaining Job is on time or behind schedule Progress reports: Used to report the performance of the shop during a certain time period Exception reports: Provides exception information such as deviations from the production schedule
Ensure Quality: A good PPC will provide for adherence to the quality standards so that quality of output is ensured. PPC is of immense value to the entrepreneur in capacity utilization and inventory control. More importantly it improves his response time and quality. As such effective PPC contributes to time, quality and cost parameters of entrepreneurial success.
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Chapter 2
Literature Review 2.1 Background:
The traditional view of manufacturing management began in eighteenth century when Adam Smith (2003) recognized the economic benefits of specialization of labor. He recommended breaking of jobs down into subtasks and recognises workers to specialized tasks in which they would become highly skilled and efficient. In the early twentieth century, F.W. Taylor implemented Smiths theories and developed scientific management. From then till 1930, many techniques were developed prevailing the traditional view. Table 1: A Brief History of Operation Management [3]
Production management becomes the acceptable term from 1930s to 1950s. As F.W. Taylors works become more widely known, managers developed techniques that focused on economic efficiency in manufacturing. Workers were studied in great detail to eliminate wasteful efforts
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and achieve greater efficiency. At the same time, psychologists, socialists and other social scientists began to study people and human behavior in the working environment. In addition, economists, mathematicians, and computer socialists contributed newer, more sophisticated analytical approaches. With the 1970s emerge two distinct changes in our views. The most obvious of these, reflected in the new name operations management was a shift in the service and manufacturing sectors of the economy. As service sector became more prominent, the change from production to operations emphasized the broadening of our field to service organizations. The second, more suitable change was the beginning of an emphasis on synthesis, rather than just analysis, in management practices. 2.1.1 Theoretical Frame of Reference: Any planning problem starts with a specification of customer demand that is to be met by the production plan. In most contexts, future demand is at best only partially known, and often is not known at all. Consequently, one relies on a forecast for the future demand. To the extent that any forecast is inevitably inaccurate, one must decide how to account for or react to this demand uncertainty. The optimization models described in this article treat demand as being known; as such they must be periodically revised and rerun to account for forecast updates. A key choice is what planning decisions to include in the model. By definition, production planning models include decisions on production and inventory quantities. But in addition, ther e might be resource acquisition and allocation decision, such as adding to the work force and upgrading the training of the current work force. In many planning contexts, an important construct is to set a planning hierarchy. Namely, one structures the planning process in a hierarchical way by ordering the decisions according to their relative importance. Hax and Meal (1975) introduced the notion of hierarchical production planning and provide a specific framework for this, whereby there is an optimization model with each level of the hierarchy. Each optimization model imposes a constraint on the model at the next level of the hierarchy. Bitran and Tirupati (1993) provide a comprehensive survey of hierarchical planning methods and models. [5]
Demand forecast for the period for which the planning has to be done. Cost of various alternatives and resources. This includes cost of holding inventory, ordering cost. Cost of production through various production alternatives like subcontracting, backordering and overtime. Organizational policies regarding the usage of above alternatives. "Aggregate Planning is concerned with matching supply and demand of output over the medium time range, up to approximately 12 months into the future. Term aggregate implies that the planning is done for a single overall measure of output or, at the most, a few aggregated product categories. The aim of aggregate planning is to set overall output levels in the near to medium future in the face of fluctuating or uncertain demands. Aggregate planning might seek to influence demand as well as supply." [7] 2.2.2 Master Production Schedule (MPS): A master production schedule (MPS) is a plan for production, staffing, inventory, etc. It is usually linked to manufacturing where the plan indicates when and how much of each product will be demanded. This plan quantifies significant processes, parts, and other resources in order to optimize production, to identify bottlenecks, and to anticipate needs and completed goods. Since an MPS drives much factory activity, its accuracy and viability dramatically affect profitability. Typical MPS's are created by software with user tweaking. Due to software limitations, but especially the intense work required by the "master production schedulers", schedules do not include every aspect of production, but only key elements that have proven their control effectively, such as forecast demand, production costs, inventory costs, lead time, working hours, capacity, inventory levels, available storage, and parts supply. The choice of what to model varies among companies and factories. The MPS is a statement of what the company expects to produce and purchase (i.e. quantity to be produced, staffing levels, dates, available to promise, and projected balance). The MPS translates the business plan, including forecast demand, into a production plan using planned orders in a true multi-level optional component scheduling environment. Using MPS helps avoid shortages, costly expediting, last minute scheduling, and inefficient allocation of resources. Working with MPS allows businesses to consolidate planned parts, produce master schedules and forecasts for any level of the Bill of Material (BOM) for any type of part. 2.2.3 MPS Working: By using several variables as inputs the MPS will generate a set of outputs used for decision making. Inputs may include forecast demand, production costs, inventory costs, customer orders, inventory levels, supply, lot size, production lead time, and capacity. Inputs may be automatically generated by an ERP system that links a sales department with a production department. For instance, when the sales department records a sale, the forecast demand may be automatically shifted to meet the new demand. Inputs may also be inputted manually from forecasts that have also been calculated manually. Outputs may include amounts to be produced, staffing levels, quantity available to promise, and projected available balance. Outputs may be used to create a Material Requirements Planning (MRP) schedule. A master production schedule may be necessary for organizations to synchronize their operations and become more efficient. An effective MPS ultimately will:
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Give production, planning, purchasing, and management the information to plan and control manufacturing The overall business planning and forecasting to detail operations Enable marketing to make legitimate delivery commitments to warehouses and customers Increase the efficiency and accuracy of a company's manufacturing
2.2.4 Material Requirements Planning (MRP): Material requirements planning (MRP) is a production planning and inventory control system used to manage manufacturing processes. Most MRP systems are software-based, while it is possible to conduct MRP by hand as well. An MRP system is intended to simultaneously meet three objectives:
Ensure materials are available for production and products are available for delivery to customers. Maintain the lowest possible level of inventory. Plan manufacturing activities, delivery schedules and purchasing activities.
2.2.5 Scope of MRP: The basic function of MRP system includes inventory control, bill of material processing and elementary scheduling. MRP helps organizations to maintain low inventory levels. It is used to plan manufacturing, purchasing and delivering activities. "Manufacturing organizations, whatever their products, face the same daily practical problem that customers want products to be available in a shorter time than it takes to make them. This means that some level of planning is required."[9] Companies need to control the types and quantities of materials they purchase, plan which products are to be produced and in what quantities and ensure that they are able to meet current and future customer demand, all at the lowest possible cost. Making a bad decision in any of these areas will make the company lose money. A few examples are given below:
If company purchases insufficient quantities of an item used in manufacturing (or the wrong item) it may be unable to meet contract obligations to supply products on time. If a company purchases excessive quantities of an item, money is wasted - the excess quantity ties up cash while it remains as stock and may never even be used at all. Beginning production of an order at the wrong time can cause customer deadlines to be missed.
MRP is a tool to deal with these problems. It provides answers for several questions:
What items are required? How many are required? When are they required?
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MRP can be applied both to items that are purchased from outside suppliers and to subassemblies, produced internally, that are components of more complex items. The data that must be considered include:
The end item (or items) being created. This is sometimes called Independent Demand or Level 0 on BOM (Bill of materials). How much is required at a time. When the quantities are required to meet demand. Shelf life of stored materials. Inventory status records. Records of net materials available for use already in stock (on hand) and materials on order from suppliers. Bills of materials. Details of the materials, components and sub-assemblies required to make each product. Planning Data. This includes all the restraints and directions to produce the end items. This includes such items as: Routings, Labor and Machine Standards, Quality and Testing Standards, Pull/Work Cell and Push commands, Lot sizing techniques (i.e. Fixed Lot Size, Lot-For-Lot, and Economic Order Quantity, Scrap Percentages, and other inputs.
Output 1 is the "Recommended Production Schedule" which lays out a detailed schedule of the required minimum start and completion dates, with quantities, for each step of the Routing and Bill of Material required to satisfy the demand from the Master Production Schedule (MPS). Output 2 is the "Recommended Purchasing Schedule". This lays out both the dates that the purchased items should be received into the facility AND the dates that the Purchase orders, or Blanket Order Release should occur to match the production schedules.
Purchase orders. An order to a supplier to provide materials. Reschedule notices. These recommend cancelling, increasing, delaying or speeding up existing orders.[11]
functions of process planning, loading, and scheduling. The function of dispatching puts the plan into effect; that is, operations are started in accordance with the plant. Actual performance is then compared to the planned performance, and, when required, corrective action is taken. In some instances re-planning is necessary to ensure the effective utilization of the manufacturing facilities and personnel. Let us examine more closely each of these functions. Process Planning (Routing) The determination of where each operation on a component part, subassembly, or assembly is to be performed results in a route for the movement of a manufacturing lot through the factory. Prior determination of these routes is the job of the manufacturing engineering function.
Loading
Once the route has been established, the work required can be loaded against the selected machine or workstation. The total time required to perform the operation is computed by multiplying the unit operation times given on the standard process sheet by the number of parts to be processed. This total time is then added to the work already planned for the workstation. This is the function of loading, and it results in a tabulated list or chart showing the planned utilization of the machines or workstations in the plant. Scheduling Scheduling is the last of the planning functions. It determines when an operation is to be performed, or when work is to be completed; the difference lies in the detail of the scheduling procedure. In a centralized control situation - where all process planning, loading, and scheduling for the plant are done in a central office- the details of the schedule may specify the starting and finishing time for an operation. On the other hand, the central schedule may simply give a completion time for the work in a given department. Combining Functions While it is easy to define where as process planning, how much work as loading, and when as scheduling, in actual operations these three functions are often combined and performed concurrently. How far in advance routes, loads, and schedules should be established always presents an interesting problem. Obviously, it is desirable that a minimum of changes be made after schedules are established. This objective can be approached if the amount of work scheduled for the factory or department is equal to or slightly greater than the manufacturing cycle. For optimum control, it should never be less than the manufacturing cycle. Dispatching Authorizing the start of an operation on the shop floor is the function of dispatching. This function may be centralized or decentralized. Again using our machine-shop example, the departmental dispatcher would authorize the start of each of the three machine operations three dispatch actions based on the foremans routing and scheduling of the work through his department. This is decentralized dispatching. Reporting or Follow up The manufacturing activity of a plant is said to be in control when the actual performance is within the objectives of the planned performance. When jobs are started and
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completed on schedule, there should be very little, if any, concern about the meeting of commitments. Optimum operation of the plant, however, is attained only if the original plan has been carefully prepared to utilize the manufacturing facilities fully and effectively. Corrective Action This is the keystone of any production planning and control activity. A plant in which all manufacturing activity runs on schedule in all probability is not being scheduled to its optimum productive capacity. With an optimum schedule, manufacturing delays are the rule, not the exception. Re-planning Re-planning is not corrective action. Re-planning revise routes, loads, and schedules; a new plan is developed. In manufacturing this is often required. Changes in market conditions, manufacturing methods, or many other factors affecting the plant will often indicate that a new manufacturing plan is needed.[3]
Type of Manufacturing
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This is probably the most influential factor in the control situation. For a large continuous manufacturing plant producing a standard product, we have already indicated that the routing was included in the planning of the plant layout.[3]
single package the standard process sheet, the blueprint, the bill of material (if an assembly operation is involved), the route sheet, and possibly the schedule for the production of the order. Route Sheet This is the form on which the route of a shop order is indicated. In practice, this form is generally combined with one of the other forms in the system. For example, the shop order, the standard process sheet, and the route sheet are often one piece of paper- usually called the shop order or the manufacturing order. Load Charts These charts are prepared to show the productive capacity that has been sold and at the same time the available productive capacity. These charts may be prepared for each workstation or machine in the plant, or they may be for groups of machines or departments. Job Tickets This is the fifth and last type of order in a manufacturing situation. Job tickets authorize the performance of individual operations in the manufacturing process. Systems Analysis As with other manufacturing control systems and procedures, production planning, and control lends itself to modern mechanization techniques such as machine accounting and use of computers. Careful study of the control system through procedure analysis will indicate the savings that may be effected by the utilization of modern equipment. These savings may be in the clerical help required in the administration of the system or in the advantages of quick compilation of data, which in turn results in up-to-date control data. [2]
Planning Phase We have already indicated in some details the duties involved in the production planning phase. Working from the basic data mentioned earlier, the personnel in this part of the activity routes and load and schedule charts. Control Phase The completed job ticket, or its equivalent, is the key to this phase of the production planning and control system. It is the means of reporting back from the shop floor that indicates that a job is completed; or if daily job tickets are turned in, the daily progress of a job can be determined.[8] 2.9.1 Overview of the Textile Sectors in Pakistan: Over the last few decades there has been a tremendous decline in textile sectors of Pakistan. More and more of organizations of this sector are now struggling to survive due to immense pressure created by globalization, world trade organizations, energy crisis, terrorism and policies of China . As textile sectors contribute significantly to a nations gross domestic product (GDP) and provide employment to a large number of people, therefore it is in the interest of governments to encourage their survival and growth. Their failure could lead to a situation of unemployment and consequent social tensions. To ensure viability of help to the textile sector, the Indian, Bangladashian and Srilankan government has been analyzing the need for a shift in its approach towards their textile sector growth. At present firms are acknowledging the efficient management of human resources as a critical factor in their success or failure (e.g., Huselid, Jackson, & Schuler, 1997; Paauwe, 2004; Schuler & Jackson, 1999). Does this equally apply to Production Planning and Control? The existing literature shows a strong deficiency of systematic Production Planning and cotrol research in textile sectors. . A distinct feature of Pak manufacturing sector is its product diversification: textile (24.02), Chemicals (15.17%), food (13.77%), followed by others. It needs to be mentioned here that all these sectors comprise of large, medium and small firms, except in cases where economies of scale do not permit small-scale production e.g. automobiles, steel, fertilizer, heavy engineering, etc. Manufacturing firms data show that, of the total 5,83,329 units in the census, 117176 were Households units (20.0%) and 466153 (80.0%) in the category of Establishments. The majority of the total manufacturing establishments (43.2%) were in Textile Wearing, Apparel and Leather industries, followed by Food, Beverages and Tobacco (20.9%), Wood and Wood Products (10.8%), Fabricated Metal Products, Machinery and Equipment (10.0%), Other Manufacturing Industries and Handicrafts (8.9%) and the remaining sectors had 11.1 % share. It is also interesting to note that in the largest industrial group of Textile Wearing, Apparel and leather, 31.5% were Households and 68.5% Establishments.
Production planning and control system and production planning and control activities describe in figure (2) are not emphasizes in textile sectors as simple as in production of other products like automobiles home appliances etc. The reason of behind is that a lot of organization are producing the textile finished goods from the raw materials to the finished garments so their production planning and control system is integrated system which plans and control the multi types of production. E.g. Textile production systems form an interesting area for the study of scheduling problems. The industry has been developed following both vertical integration, particularly among spinning and weaving firms, and horizontal integration, promoted by the idea that a full line of textile products is necessary for effective marketing [1]. Such production systems comprise various production phases which are illustrated in Tables together with the type of their output. Table 2: Textile Sector Process and Outputs Process Gunning Spinning Yarn dyeing Knitting/weaving Dyeing Cutting Stitching Finishing Packing Products Fibers Yarn Dyed yarn Knitting fabric Dyed fabric Fabric pieces garments Finishing garments Packed garments
A lot of production planning and control system are developed for planning and scheduling of textile production. One of them is described below 2.9.3 The YFADI DSS: YFADI, meaning weft in the Greek language, is a decision support system that has been developed for the production planning and scheduling of a Greek textile industrial plant. In its first release it covers the operations of warp making, starching and weaving but a future release will cover all the production phases of the industry, that is, from yarn spinning to the final sewing of clothes. Its main objective is to provide the manager with efficient production management tools, applicable to the multi-phase production of a variety of products. The alternative production plans, provided by the system, help the user to make decisions about the production rates
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YFADI is characterized by: Openness Rapid and efficient data interchange in order to cope with frequent changes in production User-friendliness: The software of the system consists of three parts: the Database Management System (DBMS), the Model Based Management System (MBMS) and the User Interface.
Fig: 4 Forecasting module makes the short, medium and long term forecasts and measures their accuracy. Historical sales data, branch sales, bids results, the time horizon of the forecasts and some experts' forecasts compose the inputs to the module. Multiple regression analysis extrapolative forecasting and an adaptive Holt Winters forecasting are the methods employed. The module produces reports containing forecasts, comparative results and
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graphics for the short medium and long term forecasts. The module can be used as a standalone decision support system The Orders Processing (OP) module integrates the customers' orders in a well-structured form in order to facilitate the follow-up by the manager. Retrieval of orders of a certain customer or a certain kind of product during a certain period and presentation of the related reports are easily obtained, due to the design of the database. The Aggregate Production Planning (APP) module deals with the middle-range production planning problem of the enterprise, with the objective of meeting a varying pattern of demand over a horizon of 3 to 15 months. More specifically, the managerial decisions involved in the problem concern the specification of aggregate production rates, and work force and inventory levels for each period within the above planning horizon. The Material Requirement Planning (MRP) module is aimed at the efficient scheduling of the requirements of raw materials and intermediate products, in order for the necessary quantities to be available in the right time. Operation Sheets and Bills of Materials are employed. The module is closely collaborating with the MPS module as it is made clear in the next section. Using a backward procedure, the MRP module defines the requirements in intermediate products and, finally, in raw materials in order to fulfill the production schedules. By aggregating the material requirements for each production order, MRP derives analytical schedules of what is needed (both quantities and due dates). The main inputs of the module are: the Production Schedules produced by MPS; the Bills of Materials, that are available in the Database and, the available stocks that are provided by the Inventory Control module. The MRP module also collaborates with the Inventory Control and Purchasing modules providing information concerning quantities of materials already available and ordered, respectively. The Inventory Control (IC) module deals with the management of the inventory of each product. Attention is given both to MTS and MTO products. Safety stocks, re-order points and economic order quantities (EOQ) are determined and the size of lots for batch production is evaluated. The Purchasing module deals with the evaluation of alternative schedules for the supply of the necessary materials, considering various cost elements and quality requirements. The module is fed with data from the MRP, concerning the scheduled materials requirements; the IC module, concerning the available stocks and the Database, concerning costs and lead times for alternative suppliers. The module specifies the best placement of orders. The Work in Progress module, based on data on the current production situation concerning each work centre, reports on the progress regarding the implementation of schedules. The module receives information about the production status of each work center and the progress of each order, and compares them with the scheduled ones (usually on a daily basis). As a next step, the IC and the MPS modules are informed about the actual production situation and any eventual deviations. [8] YFADI has been developed aiming at inventory reduction, increased productivity, improved customer service and control of the business in a textile industrial unit. The phases covered (weaving, starching and warp making) are the most difficult ones in terms of scheduling. The
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system has been integrated in a structured form, oriented by the textile manufacturing process phases. Two particular features of YFADI are that: A production order can be spitted up into a set of jobs which are then assigned to multiple parallel machines; All customer orders are accepted and the available capacity is adapted accordingly, basically due to the ease of subcontracting. 2.9.4 Division of Textile Sector in Pakistan: 1. Weaving units House hold SMEs Large textile Organizations 2. Knitting Units House hold SMEs Large textile Organizations 2.9.5 PPC in textile sector of Pakistan: The efficient use of PPC in textile sectors specially in household and SMEs is not emphasizes due to lack of knowledge, resources and unit cost. Textile organization are using PPC but their method of PPC is Traditional not Modern e.g. using computer aided process planning. Some few of highly established textile organization are using modern ways or adopting the modern ways of production planning. But a large number of textile sector consist household and SMEs so many of them are unaware of its usage and benefits.[15] The above details highlight the numbers of textile units and their part in GDP and Exports. Textile sectors in terms of size, product lines, resource base, management structure, and growth requirements are different. The medium-sized units have their distinct characteristics. They are more resourceful, with better access to market and the supply side inputs, including technology. Accordingly, the groups of textile sectors, household, SMEs and Establishments are different in terms of their product quality and growth potential. Some of the large and established textile organization is using some highly automated and integrated software system of production planning and control in Pakistan but in SMEs and Household textile firms are not capable of using them because of Lack of knowledge Lack of Resources High ruining cost Instability of the business But PPC is equally important for all of them. 2.9.6 Textile Production Process:
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Ginning Spinning Yarn Yarn dyeing Knitting Dyeing/bleaching Cutting Stitching Wet processing Washing Steam Pressing Finishing Packing
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Chapter 3
Methodology & Data Collecting 3.1 Research Methodology:
After having a view on the research topic and literature review, the research objectives that are finally decided are as under: To check general similarities and dissimilarities about production planning and control emphasizes in Manufacturing Industries and textile industries. Finally developed a very simple PPC system consist of the master production schedule, material requirement planning matrix for different textile products and product structure file or bill of material. For SMEs and households industries in Pakistan. Primavera Project Planner P3 and Microsoft Excel is Used to Develop the PPC component based Model.
available was collected by different private sources that were not reliable. Other sources that were used to collect the secondary data are as under: www.scribd.com www.wikipedia.com Internet E.papers and EBooks Libraries 3.5.2 Collection of The Primary Data: The observation and previous data analysis method is considered to be the common method of collecting common data. By studying the production plan of previous purchase orders and observing the current order that are in progress the required data for this project is calculated. for collection of data the detail study of production plan that are built on simple excel spread sheets and different software for production planning and control is study and built the material requirement plan matrixes and bill of materials or product structure file .[14]
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Chapter 4
Results and Finding 4.1 Data Analysis
After analyzing the data and spreadsheets we develop the simple Aggregate planning, master production schedule product structure file and material requirement planning model on excel The reason of the choosing excel is that many of employee know the how to use MS office and excel. This kind of planning can be used in small size textile sectors which cannot afford high integrated software for PPC Season in Garments Industry Spring January, February, March April Summer May, June Holiday July, August Fall September, October, November, December Summer and holiday is order receiving whereas spring and fall production and shipping seasons
Shahkam received order for fall season in 20 June and shipment date or order completion date is 15 October Order received 10000 plain polo shirts Order received date 20/06/08 Order shipment date 15/10/08
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Medium 2500
Large 500
XL 400
XXL 100
Small 2500
Medium 500
Large 500
XL 400
XXL 100
Green Small 2500 Medium 500 Large 500 XL 400 XXL 100
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Polo shirts
Top (1)
Back (2)
Sleeve (2)
Collar (1)
Placket (1)
Labels (2)
Cuff (2)
Button (3)
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12000 12000 40
Item: sleeves Gross Requirement Scheduled Receipts on hand 0 Net Requirement Planned Order Released Item: cuff Gross Requirement Scheduled Receipts on hand 0 Net Requirement Planned Order Released Item: cuff Tape Gross Requirement Scheduled Receipts on hand Net Requirement Planned Order Released Item: collar Gross Requirement Scheduled Receipts on hand 0 Net Requirement Planned Order Released Item: collar Tape Gross Requirement Scheduled Receipts on hand 0 Net Requirement Planned Order Released
12000
6000 6000
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Chapter 5
Conclusion and Recommendations 5.1 Conclusion:
While starting this project it was clear objective that this research project must be develop a production planning and control system of textile sector which is derived from production planning and control system of Typical Manufacturing organization During this research and data collection through Textile sector of Pakistan it is inferred most of them are not working on standard and required level of production planning and control system but good and reputable names are taking advantage and complying with production planning and control system at large. On deeply analyzing data collected during project we evidently came to following conclusions that the simple model of production planning and control system helps a lot to increase Profitability Productivity Quality Efficiency Business Excellence And also facilitate to reduce Cost Wastage Lead time Scrap and rework
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Suggestions here are given in project, hopefully will act as a gateway for further research to find out the techniques for developing a model which is easily avalible and understandable in our country where literacy rate is very low
5.2 RECOMMENDATIONS:
Textile sector of Pakistan should be more oriented towards production planning and control system It is needed to allocate sufficient budget for updated technology and concepts for the enhancement of production planning and control system production planning and control system and Productivity are directly related to each other and improvement of production planning and control system will result in Business Excellence and productivity Textile sector should take into account advanced concepts and technologies and various model of production planning and control system There is a lack of external support oriented to the specific needs of small and medium-sized enterprises. These needs centre on limited management capabilities and the financial restrictions facing small firms.
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References
[1] Groover, M. P. (2007) Automation, Production System, and Computer-Integrated
Manufacturing, 2nd Edition, Dorling Kindersley(India) Pvt. Limited New Delhi India
[2] Groover, M. P. (2007) Principle of Modern Manufacturing4 Edition, John Wiley &
th
Sons(Asia) PteLtd
[3] Taylor,B.W and Russell,R.S.(2007) Operation Management4 Edition, Dorling
th
Press, Poland
[7] Krajewski L.J. and Ritzman L.P. , Operations Management: Strategy and Analysis,
Proceedings of Workshop on Information Technology and Systems (WITS'96), December 1996, Cleveland, OH
Websites
[10] http://www.essays.se/about/production+management+textile+industry/ [11] http://www.essays.se/about/textile+production/ [12] http://bada.hb.se/handle/2320/7728?mode=full&submit_simple=Show+full+item+record [13] http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6TFT-43KS9MH-
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