PM B Task 5 Name : Page 1 Matr.-Nr. : PM II Task 1, 20 Points

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1 PM B Task 5 Name : Page 1 Matr.-Nr. : PM II Task 1, 20 Points After finishing your studies you start as an assistant to the management board of a medium-sized company that produces interior trims for the automotive industry. For the past years, the company has not invested in new IT-Systems. Therefore, there have been more and more cases of interface problems between several departments of the company and also in regard to customers and suppliers. a) Please explain to your new boss the interaction between Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), Product Lifecycle Management (PLM) und Supply Chain Management (SCM). (2 points) PM B Task 5 Page 1

2 PM B Task 5 Name : Page 2 Matr.-Nr. : b) Due to increased problems with suppliers you suggest the implementation of a modern SCM-system. Name and describe the three planning levels, which have to be complied and give two specific examples for IT-System functions for each of the three planning levels. (4,5 Points) c) Recently, your company has focussed on supplying parts to only a single automotive company (OEM). Particularly with regard to the possible domination of the supply chain by the OEM your boss asks you for your opinion. Please name two possible effects for your SCM. (1 Point) PM B Task 5 Page 2

3 PM B Task 5 Name : Page 3 Matr.-Nr. : d) The already mentioned OEM requires of your company to take part in a new market place which is run by the OEM. Please name and describe this type of market place. Additionally, please name 2 disadvantages for your company, which could result from a participation in this market place. (2,5 Points) PM B Task 5 Page 3

4 PM B Task 5 Name : Page 4 Matr.-Nr. : e) With regard to the above described situation, which strategy do you recommend to your board of directors in order to strengthen the long-term competitive position and independence of your company. (1 Point) After solving the supply chain problems so quickly, your boss wants you to focus on the Product-Lifecycle-Management of your company. Until now, the company s Research & Development (R&D) department was concentrated on developing the high sophisticated products and did not take target dates or costs of new developments very serious, as long as the quality was good. In consequence, there has been a substantial increase in quality caused production and consequential costs in the last years. Furthermore, a Japanese supplier, which formerly only delivered its parts to Toyota, has entered the global market. First benchmarking tests delivered dramatic results. The new products of this company are fast on the market, robust, reasonably priced and exactly matching the customer needs (quality!). Alarmed by these results, your company s management has started an internal project to increase the efficiency of the R&D department, by applying organizational measures as well as using information technology. You have been chosen to be the project manager. PM B Task 5 Page 4

5 PM B Task 5 Name : Page 5 Matr.-Nr. : f) In your first meeting with the R&D manager you notice that he does not know the advantages of Product-Lifecycle-Managements. Please name two advantages of PLM. (1 Point) g) While doing an inventory of the IT-systems in your R&D department, you notice that only 2D-CAD-systems are being used. Due to the fact that more and more customers require 3D-CAD from your company, you are preparing a decision memo for your boss. Please name 2 advantages and 2 disadvantages for 3D- CAD-systems. (2 Points) PM B Task 5 Page 5

6 PM B Task 5 Name : Page 6 Matr.-Nr. : h) The R&D manager acknowledges the need to implement a 3D-CAD-System and asks you which general problems might occur with respect to the integration/ matching of the systems (e.g. with your PDM-System or with the CAD-System of your customer). Please answer his question by naming 4 technological risks that can be relevant for the integration of IT-Systems. (2 Points) i) The R&D manager agrees that an accurate linking between your new CAD- System and your new PDM-System is necessary. Because of the very limited budget for new IT-Systems, it is not expected that more than 90 users will have access to the PDM-System. Your boss wants you to make a reasonable decision regarding the linking of your CAD-System to the PDM-System. Which type of linking do you choose? Please support your decision with 2 arguments. (2 Points) PM B Task 5 Page 6

7 PM B Task 5 Name : Page 7 Matr.-Nr. : j) After convincing the R&D manager of the advantages of a PDM-System, your next task is winning the management board for investing in a PDM-System. The main criteria for a prioritisation are the already mentioned quality caused production and follow-up costs. Name 2 functions which can lead to a reduction of the quality caused production and consequential costs and give 2 goals respectively outcomes of these functions. (2 Points) PM B Task 5 Page 7

8 Page 1 Matr.-No. : PM B Task 6, 30 Points Your boss would like to have an overview of the topic production planning and scheduling. He has already heard something about it during his studies, but it is difficult for him to tell the differences between PPS methods, tools and implemented systems. a) Some basic terms in field of PPS are often used synonymously, although they have quite different meanings. Your boss would like you to tell the main differences between Production Planning and Scheduling, MRP I and ERP (3 Points). b) The PPS model from Aachen describes core and cross sectional tasks in PPS. Three core tasks are Primary Requirement Planning, Gross Secondary Requirement Determination and Net Secondary Requirement Planning. Please bring these tasks into a logical order and describe shortly what happens in every step (which information is passed on the following step) (4 Points). PM B Task 6 Page 1

9 Page 2 Matr.-No. : c) The throughput time diagram supports production scheduling tasks. Please explain shortly which 2 variables of state (not figures) can be shown in a production system with this diagram. (1 Point). d) The following throughput time diagram shows 3 orders planned in a working system with a given performance. Please identify the order(s) which cannot be finished in the planned process time with the given performance and explain your choice (1.5 Points). Order time ZDF2 ZDF3 ZDF1 Process time PM B Task 6 Page 2

10 Page 3 Matr.-No. : e) Finally please name two figures which can be monitored by comparing the two curves (0.5 Points). f) Explain the differences in processing orders with regard to the different types of companies in your own words and in whole sentences! (2 Points) PM B Task 6 Page 3

11 Page 4 Matr.-No. : g) Explain motivation and objective of employing a product configuration system regarding the order processing in your own words and in whole sentences! (2 Points) PM B Task 6 Page 4

12 Page 5 Matr.-No. : h) You want to calculate an offer quotation for your standard machine simpelbaz with customized components. Therefore, you calculate the individual components separately. For the machine base, you want to employ either the Cost-perkg Method or the Material Cost Method. You gathered five representative orders for machine bases from the recent past and plotted both the weight and the material costs over the production costs. (see graphs below). Based on these charts, please decide whether you want to use the Cost-per-kg Method or the Material Cost Method. Give logical reasons for your answer! (1 Point) Variant A Variant B Productions costs [EUR] Productions costs [EUR] Weight [kg] Material costs [EUR] Please mark Statement Employ the Material Cost Method to calculate the offer price for the new machine base of machine tool B (depending on the method you use, not all data given below may be needed). PM B Task 6 Page 5

13 Page 6 Matr.-No. : Give all formulas that you use with variables. Then, calculate using real figures. Mark the final result of your calculation clearly! (1 Point) Product Data Product data Product A Product B production costs per piece EUR Indirect productions costs per piece EUR 850 Direct material costs EUR Indirect material costs EUR 350 Direct costs for vendor parts EUR Indirect costs for vendor parts EUR 150 Raw weight KG Formula Calculation of the production costs PM B Task 6 Page 6

14 Page 7 Matr.-No. : i) You realize that the Cost-per-kg Method and the Material Cost Method are no longer reliable since the real production costs increasingly differ from the costs calculated with these methods. Please give and explain a possible reason for why these methods may have calculated good and precise results in the past, but no longer do so in today s times. (1 Point) Reason Explanation For the same order, you have to develop customized machine features within your engineering department. You want to calculate the efforts for the customization of the machine base using the Activity-Based Costing Method. For this method, the resource consumption per process step is determined via the decisive cost drivers based on statistic formulas. First of all, you need to determine the relevant cost drivers. Please insert into the following table whether the given statements are true or false: Formatiert: Nummerierung und Aufzählungszeichen PM B Task 6 Page 7

15 Page 8 Matr.-No. : (1,0 Point: 0,5 Points per correct answer, deduction of 0,5 Points per false answer, but no negative score for subtask in total) Statement True or False? (Please insert) You calculate the total process costs. After that you divide the total costs through the number of single processes. The results are the direct costs per process. Process costs can associate one special process. PM B Task 6 Page 8

16 Page 9 Matr.-No. : j) You have defined the two decisive cost drivers for your engineering process: these are the base area of the machine base [m²] and the complexity of the design [from 1=low complexity to 5=high complexity]. The machine base that you want to calculate now has a base area of 4x3 meters and the complexity of the design can be estimated as medium (=3). The hourly rate in the engineering department equals 120 Euro per hour Please create the Consumption Function and the Cost Function only graphically using the data from the table below. Then, determine the total cost for the process step engineering for the current case. Work only graphically in the chart below, you don t need to derive any mathematical formulas! (2 Points) Data from similar machine bases Complexity of Assembly Base area [m²] Time for Process Step Design [h] PM B Task 6 Page 9

17 Page 10 Matr.-No. : Graphic: Cost- and Consumption Function Resource usage [h] Cost Function Consumption Function Costs for Complexity of Assembly [ ] [EUR] Cost driver: base area [m²] Calculate costs for the process step engineering PM B Task 6 Page 10

18 Page 11 Matr.-No. : k) Your boss has fundamental questions about the relation of controlling strategies in production planning and control. Please judge the following statements (true or false). (3.0 Point: 0.5 Points per correct answer, deduction of 0.5 Points per false answer, but no negative score for subtask in total) Statement True or false? (please indicate) After the bottleneck machine a push-strategy is favourably. By increasing the planned cycle times the adherence to delivery dates increases too. The Conwip method is an appropriate controlling strategy in front of bottleneck machines. The Load oriented order release is an appropriate controlling strategy in front of bottleneck machines. Kanban is a consumption oriented controlling strategy. The method of cumulative quantity is especially in the single and small series production a favourable controlling strategy. PM B Task 6 Page 11

19 Page 12 Matr.-No. : l) Which impact does the batch size have on distribution machines and bottleneck machines according to the Target System of the Production Planning and Control (Throughput times, Inventory, High utilization). Please describe the impact in two short sentences each time. (2 points) Big batch sizes and high variation in batch sizes: Small batch sizes and little variation in batch sizes: PM B Task 6 Page 12

20 Page 13 Matr.-No. : Given is the table of manufacturing orders for one machine. Please decide with the given information how much the setup time will increase due to the harmonization of batch sizes of the two orders with the biggest batch sizes. (see table: Initial Situation). Initial Situation Order number Batch Size Lg Machine running time th Process time te Setup time tr Order time ZAUi [#] [min] [min] [min] [min] m) Please fill in the given table by cutting in half the batch sizes of the first two orders and complete the missing data in the table. (2.5 points) Harmonization of Batch sizes Order number Batch Size Lg Machine running time th Process time te Setup time tr Order time ZAUi [#] [min] [min] [min] [min] 1 (Halbe) 1 (Halbe) 2 (Halbe) 2 (Halbe) PM B Task 6 Page 13

21 Page 14 Matr.-No. : n) Please calculate the sum of setup times before and after the harmonization. Please calculate as well the percentage of change of the setup time. (1.5 points) o) Describe the change of the focus in the Target System of the Production Planning and Control caused by the harmonization of batch sizes! (1 point) PM B Task 6 Page 14

22 PM B Task 7 Name : Page 1 Matr.-No. : PM B Task 7, 10 Points As a young engineer you start your first job in a consultancy which is specialised on consultancy services in the field of Digital Factory. To offer external consultancy services a self-made simulation tool for analysis, evaluation and optimisation of production processes is implemented in your department. a) The simulation tool used in your department is based on the cueing theory. Please explain the principles of the cueing theory in complete sentences (not in headwords and/ or drawings) with your own words. Which part of applied mathematics is the cueing theory dedicated to? (2 Points) b) David George Kendall developed a unified notation to describe the cueing theory, the Kendall-Notation. This notation serves as a standard for cueing systems. Thus, the characteristic numbers of a cueing system are classified in a defined sequence. Please pinpoint this sequence in general and explain every number of the Kendall-Notation. (3 Points) PM B Task 7 Page 1

23 PM B Task 7 Name : Page 2 Matr.-No. : c) The chairman of your company asks for your decision if the balancing flow production is a cueing system as well. Please give your clear position (yes or no) and justify your decision. (3 Points) PM B Task 7 Page 2

24 PM B Task 7 Name : Page 3 Matr.-No. : d) For a description of a model you need different characteristica. Name and explain them. (2 points) PM B Task 7 Page 3

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