The ERP-System generates the basic component all further systems rely on. Basic data which other IT-systems make use of are deposited in ERP-systems.

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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) The ERP-System generates the basic component all further systems rely on. Basic data which other IT-systems make use of are deposited in ERP-systems. ERP only deals with company-interior material flows (0,5 Points). SCM expands the viewpoint on supplying industries and it also assimilates the flow of material with supplying industries to ensure a frictionless logistic-chain. In addition to ERP, CRM integrates the customers processes (0,5 Points). CRM tries to integrate the customer knowledge into the in-house knowledge management and it also tries to increase the customer satisfaction (0,5 Points). PM B Task 5 Page 1

2 PM B Task 5 Name : Page 2 Matr.-Nr. : PLM focusses on the main processes from a cross section point of view and it includes all other processes. It enables all users from the entire life cycle of a product to recall the data (0,5 Points). Source: PM B L1, P. 11 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 a specific example for IT-System functions for each of the three planning levels. (4,5 Points) 0,5 Points each for the right function/ level, 0,5 Points for the right description and 0,5 points for the right IT-System function Source: PM B L6, P. 14 PM B Task 5 Page 2

3 PM B Task 5 Name : Page 3 Matr.-Nr. : 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) 1.) The OEM dominates delivery quantities and dates on the basis of framework contracts (0,5 Points) 2.) Only the OEM has the complete overview over the final demand and delivery situation of all partners of the supply chain (0,5 Points) also: The OEM dominates the complete supply chain (0,5 Points) Source: PM B L6, P. 20 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) Unilateral/ buy side market place (0,5 Points) Unilateral relations of transaction always occur when a single costumer purchases goods and services by his own interactive platform (n:1-relations). Those supplier platforms are also called procurement platforms and are common in the automotive industry (1 Point). PM B Task 5 Page 3

4 PM B Task 5 Name : Page 4 Matr.-Nr. : Source: PM B L6, P. 30 Disadvantages: 1.) Dependency on the market power of the market operator (0,5 Points). 2.) Strong competition between the suppliers in the market place (0,5 Points) Source: Comprehension 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) This question is based on comprehension. Right answers are for example (1 Point): 1.) Reduction of the dependence from a single customer by supplying further OEMs 2.) Strengthening of the market position through the (vertical) integration of additional value-added processes 3.) Strengthening of the market position through the development of new business areas or customers (e.g. interior trims for busses, trains etc.) Source: Comprehension PM B Task 5 Page 4

5 PM B Task 5 Name : Page 5 Matr.-Nr. : 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. 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) Advantages of PLM: 1.) PLM reduces data redundancies in the product life cycle (0,5 Points). 2.) By realising the simultaneous data access of all persons involved in the product and the process, PLM supports the idea of Simultaneous (Concurrent) Engineering (0,5 Points). PM B Task 5 Page 5

6 PM B Task 5 Name : Page 6 Matr.-Nr. : also: The functionality of PLM exceeds the sole IT-systems / management concept for data management and information availability (0,5 Points) Source: PM B L8, P. 7 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) possible answers are (0,5 Points per correct answer): Source: PM B Solution to Exercise 8, P. 10 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) PM B Task 5 Page 6

7 PM B Task 5 Name : Page 7 Matr.-Nr. : possible answers are (0,5 Points each) 1.) Departments and business partners in networks do not work with the same integrable CAD/CAM systems 2.) system providers do not open their systems interface and standards implementation is difficult 3.) same provider of CAD- and PDM-Systems shifting the problem to PDM/ERP-integration 4.) quality of the interface depends on transfer and administration of nongeometric data 5.) PDM/PPS connection problem of software und organisation (e.g. which BOM will be maintained with which system, etc.) 6.) different CAD systems depend on different structure information 7.) process flows are difficult to map implementation is very difficult Source: PM B L9, P. 18 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 PM B Task 5 Page 7

8 PM B Task 5 Name : Page 8 Matr.-Nr. : 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) Direct-Linking between CAD- und PDM-Systems (1 Point) 1.) With 90 users no performance problems are expected (0,5 Points) 2.) Simpler system architecture / less hardware requirements (0,5 Points) 3.) Lower investment volume compared to a linking using local PDMs (0,5 Points) Source: PM B Solution to Exercise 8, P. 13 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) For two of the four following correct functions 2 x 0,5 Points 1 Point 1.) Document Management (product orientated) 2.) File- and Storage management (product orientated) 3.) Access management (process orientated) PM B Task 5 Page 8

9 PM B Task 5 Name : Page 9 Matr.-Nr. : 4.) Lifecycle Management (process orientated) For two correct goals / outcomes 2 x 0,5 Points 1 Point 1.) Early identification of bugs 2.) Less manufacturing errors 3.) Less warranty and consequential costs 4.) Higher market share through increased quality Source: PM B L9, P. 21 PM B Task 5 Page 9

10 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). PPS describes the tasks a producing company has to fulfil and is defined through the core and cross sectional tasks of the PPS/ERP model from Aachen. MRP I describes the logic to run a PPS system which is then implemented in an ERP system. It mainly contains the sequence description to order materials and schedule capacities. ERP on the other side means an IT approach and can be seen as a supporting tool for operative actions. Often implemented is the MRP logic which is executed successively. 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; 1 Point for the correct order and 1 Point for every explanation). 1: Primary Requirement Planning; Determines the number of finished goods to be produced 2: Gross Secondary Requirement Planning; Dissolves the parts lists and determines to the number of finished goods the corresponding secondary requirements 3: Net Secondary Requirement Planning; Compares the gross secondary requirements with the storage content and determines the quantity which has actually be produced PM B Task 6 Page 1

11 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 Points). Order fulfilment and schedule variance 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; 0.5 Points for identifying the order and 1 Point for the explanation). Order time ZDF2 ZDF3 ZDF1 Process time Order 2 cannot be finished as the order time cannot be fulfilled within the planned process time with the given performance of the system. PM B Task 6 Page 2

12 Page 3 Matr.-No. : e) Finally please name two figures which can be monitored by comparing the two curves (0.5 Points). For example order range and inventories 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: 3 x 0,5 Points per correct and complete answer, 0,5 Points for completely sentences, not just key words or bullet points) The series manufacturer does not have an order or configuration process. Instead, the series manufacturer produces stock products. The products manufactured are listed in a product catalogue which contains specifications, times for delivery and prices. The variant manufacturer chooses from a range of standard components when preparing an offer. The variant manufacturer tries to produce as few components as possible ahead of an order and to prevent order-specific elements. He uses a modular/unit assembly system. The order-specific manufacturer integrates a large quantity of individual, orderspecific components into his offer. The order-specific manufacturer provides individual technical solutions, schedules, calculations and conditions. Combined with existing technical solutions, he runs danger of a configuration problem. Series Series manufacturer Variant manufacturer Order-specific manufacturer Product Product by by catalogue catalogue Product Product by by requirement requirement PM B, L4, slide 8 with: specification times of delivery terms of delivery prices Warehouse Warehouse Standard Standard components components New New compilation compilation of of standard standard components components Unit Unit Construction Construction System System Offer Offer Individual Individual Components Components Compilation Compilation of of technical technical solutions solutions Individual technical solutions schedules calculations conditions PM B Task 6 Page 3

13 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 for a complete and understandable answer) Over the order processing workflow an information deficit regarding the concretion of orders arises. Systematic order configurators help to reduce the information deficit during the order clarification. By employing products or system solutions on basis of standardized parts and By improving the configuration knowledge and reliability of data of an order, the order lead time in areas preliminary to manufacturing can be reduced. Concretion of orders 100% nominal curve predefined configuration rules, the degree of technical clarification can be increased % information deficit PM II, V4, Folie 18 assembly launch 60% actual curve 60-80% workflow Indirect areas of business direct Increase Increase in in degree degree of of technical technical clarification clarification Offer 100% Confirmation of Order Technical release Production Lead Lead time time reduction reduction 50% Nominal Status PM II, V4, Folie 20 Actual Status Customer inquiry Offer Confirmation of Order Technical release Production PM B Task 6 Page 4

14 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: 0,5 Points for the correct graphic, 0,5 Points for the statement) Variant A Variant B Productions costs [EUR] Productions costs [EUR] Weight [kg] Material costs [EUR] Please mark X Statement Cost-per-kg Method has to be chosen, since there is a linear correlation between weight and production costs. The Material Cost Method cannot be used, since no identifiable linear correlation between production costs and material costs exists. PM B, E4, slide 7-11 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

15 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: 0,5 Points for the formula with depiction of the variables, 0,5 Points for the correct calculation of the production costs) 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 DC A + IC A PC B = *( direct material cos ts B + direct material cos ts + direct cos ts for vendor parts A direct cos ts for vendor parts B ) A PC: Product costs IC: Indirect costs DC: Direct Costs Calculation of the production costs ( ) EUR + ( ) ( ) EUR EUR *( ) EUR EUR = *16.750EUR = EUR*2, EUR = 41983,06 EUR PM B, S4, slide 8 PM B Task 6 Page 6

16 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 Points: 0,5 Points for the reason, 0,5 Points for the explanation) Reason The increasing requirements to these products lead to an increasing product complexity. Explanation This complexity causes higher costs that cannot be captured in the Costper-kg Method or the Material Cost Method. Also true: mechatronization, increasing product variety, etc. 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. PM B Task 6 Page 7

17 Page 8 Matr.-No. : 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: (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. False Process costs can associate one special process. True PM B Task 6 Page 8

18 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! (2,0 Points: 1,5 Points for the Cost and Consumption Function, 0,5 Points for the correct cost value) Data from similar machine bases Complexity of Assembly Base area [m²] Time for Process Step Design [h] PM B Task 6 Page 9

19 Page 10 Matr.-No. : Graphic: Cost- and Consumption Function 0,5 Points Resource usage [h] 0,5 Points Cost Function Consumption Function Costs for Complexity of Assembly [ ] [EUR] 0,5 Points Cost driver: base area [m²] Calculate costs for the process step engineering (graphical construction) PM B, S4, slide PM B Task 6 Page 10

20 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 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. (Solution: Review of the lecture PM B L5) True or false? (please indicate) Right False Right Right Right False PM B Task 6 Page 11

21 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; 1 point for each right impact) Big batch sizes and high variation in batch sizes: 1: Big batch sizes lead to decreasing setup times at the bottleneck machine. That leads to high utilisation and increasing productivity of the production shop. 2: Big batch sizes in combination with a high variation in batch size lead to a deadlock in the downstream process after a distribution machine. That leads to increasing throughput times and increasing inventory levels. Small batch sizes and little variation in batch sizes: 1: Small batch sizes lead to decreasing utilization in bottleneck machines. 2: Small batch sizes in combination with little variation in batch size lead to a harmonization of the production processes. The results are decreasing inventory levels and decreasing throughput times. (Solution: PM B T5, slides 2-4) PM B Task 6 Page 12

22 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: 0.5 points for each right column) Solution Auftragsnummer Batch Size Lg Machine running time th Process time te Setup time tr Order time ZAUi [#] [min] [min] [min] [min] 1 (half) (half) (half) (half) (Lösung: PM II Ü5, Folie 15-16) PM B Task 6 Page 13

23 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: for the right calculations 0,5 points each time) Solution: Initial Situation Unit Sum of setup time 5,58 [h] after Harmonization Sum of setup time 6,83 [h] Percentage of change Percentage of change of setup time 22,39% [h] (Solution: PM B T5, slides 15-16) 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; 1 point for the right change of focus) Because of the harmonization of the batch sizes the focus in the Target System of the Production Planning and Controlling changes from high utilization to short throughput times, high adherence to delivery times and low stocks. high adherence to delivery dates short through put times high adherence to delivery dates short through put times profitability profitability high utilisation low stocks high utilisation low stocks (Solution:PM B L5, slide 5-6) PM B Task 6 Page 14

24 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) The cueing theory deals with the mathematical analysis of systems, where (manufacturing) orders are handled on service stations. Many of the characteristic numbers are probability numbers. In general parts of a waiting system are a service area with service stations and a waiting room. Finished orders are leaving this systems (1 Points) The cueing theory is part of the probability theory or Operations Research. (1 Point) (Excercise PM II V11, S. 6 and Lecture PM II V11, S.17) 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) A / S / s : c / D (Points for lines and colon) (0,5 Points) A: Arrival process, it describes the statistic dispersion of the arrivals. (0,5 Points) S: Service process, describe the statistic dispersion of the service time (0,5 Points) PM B Task 7 Page 1

25 PM B Task 7 Name : Page 2 Matr.-No. : s: Number of channels ( ) (0,5 Points) c: Size or capacity (places) of the waiting cue (waiting interval). Without any notations: (0,5 Points) D: Handling or dispatching discipline e.g.: FIFO, LIFO (0,5 Points) (Excercise PM II V11, S. 9) 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) No (1 Point) A Cueing Systems only exists if the arrival or/and the dispatch rate is stochastically (exponential, poisson or random) distributed. So a clocked production line is not a cueing system. (2 Points) d) For a description of a model you need different characteristica. Name and explain them. (2 points) Modularity: For reducing complexity. The connection between objects and sub-systems are understood under Modularization. Modules are independent. (0,5 points) Generizität: Generic building blocks are universally valid and independent of the specifications of an object to be modeled. Specific data is derived from general, generic data. (0,5 points) Transparency: The model makes the interesting correlations and aspects of the object to be modeled apparent. (0,5 points) PM B Task 7 Page 2

26 PM B Task 7 Name : Page 3 Matr.-No. : Integration: The individual building blocks are not isolated but are related to one another and build a whole. (Lecture PM II 11, S. 18) PM B Task 7 Page 3