Manufacturing Execution Optimization
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1 Manufacturing Execution Optimization DR. LEYUAN SHI INDUSTRIAL ENGINEERING AND MANAGEMENT PEKING UNIVERSITY DEPARTMENT OF INDUSTRIAL & SYSTEMS ENGINEERING UNIVERSITY OF WISCONSIN-MADISON AUGUST 24, 2017
2 Outline Introduction Manufacturing Execution Optimization A Case Study Research Issues Road map to digital supply chain management
3 Background Harvard U. Wisconsin -Madison MEO V1.0 NOV-WLY NOV-ORG Phase I NSF-SBIR Tech. Transfer MRO-2 V1.0 NOV-WLY Phase II
4 Case 1 Fortune manufacturing facilities and service centers Mass customization
5 WLY Plant Sales Purchase Release Stack BOP Riser Control Ram Door MS Paint Weld Quality
6 RAM Cell 6
7 A Real Example Transition from knee-jerk manual spreadsheet scheduling No validation to schedule changes 15 mins spent per operation to change formatting and calculations
8 Case 2
9 Case 3: Kimberly-Clark: Real-time Optimization Lost of capacity by 10-15%
10 ERP MES Shop-floor Manual or Excel Quality PDM Gap Execution is not optimized
11 Background Harvard U. Wisconsin -Madison MEO V1.0 NOV-WLY NOV-ORG Phase I NSF-SBIR Tech. Transfer MRO-2 V1.0 NOV-WLY Phase II
12 Outline Introduction Manufacturing Execution Optimization A Case Study Research Issues Road map to digital supply chain management
13 Manufacturing Execution Optimization (MEO) 13 A set of digital tools for enterprise system analysis, design, planning, scheduling, optimization, and improvement (based on Nested Partitions optimization framework) Highly configurable & scalable Full visibility to production outcomes Provide a common platform within Factory for information sharing and exchange Supports data-driven decision making in real time
14 MEO Architecture Supply Chain Optimizer SC portal Outscoring Management Control & Monitoring E-E Optimization Planning Optimizer Sales Order Management Purchasing Management Work Order Management Data Analytics Scheduling Optimizer SO-A SO-J SO-H SO-F SO-P SO-C Feedback & Coordination Feedback Coordination Reports Visualization MES
15 Scheduling Modules Job Shop Assembly Specialized little Item repetition, no BOM Focus on machine scheduling Labor-dependent Operation Duration Simultaneous Operations Various precedence constraints Heat treatment Fabrication Paint Service
16 Planning Coordination Released Schedule used as starting point (link with scheduling ) Plans remaining Released Work Orders Plans Unreleased Work Orders Determines release and completion date Balances utilizations and due date performance by simulating releases, available hours, or earliest start dates
17 Production Control Uses information from ERP FG inventory, WIP inventory w/ released schedule raw inventory w/ released plan Assigns supply to demand Determines if Sales Order Due Dates can be met Minimizes MCT Total time required to deliver final products Identifying critical Work Orders (shifting)
18 Scheduling-Planning-Control Start from shop-floor: the source of variability Link local areas together to create coordination Bottom-Up visibility to the impact on top-level demand Top-down prediction to results and control over top-level demand Response to changes and disturbances in realtime
19 Outline Introduction Manufacturing Execution Optimization A Case Study Research Issues Road map to digital supply chain management
20 Case 1: Houston WLY Plant Sales Purchase Release Stack BOP Riser Control Ram Door MS Paint Weld Quality
21 Plant Manager Program Manager Project Manager Master Schedule r Manufacturing Support Manager Production Manager Product Line Manager Materials Manager Quality Manager Scheduler ME Programming Supervisor Planner Warehouse Buyer Doc. Specialist M/S Manager Weld Supervisor Paint Supervisor Quality Supervisor M/S Supervisor Weld Lead man Quality Team Lead
22 Sales Order Status -Due date -Cost -Manufacturing Critical-Path Time Plant Manager
23 系统 Production VP Capacity Planning WO release
24 实施结果 Main Business Income per Capita Performance Before After Change 40M 60M 65% Order delay rate 78% 45% 42% Capacity Utilization 36% 48% 33% Machine shop Utilization 46% 80% 74% Inventory turnover 25% 53% 112% Number of Schedulers %
25 Comment from WLY The utilization of the MEO is driving us to improve our discipline and causing a culture change
26 Outline Introduction Manufacturing Execution Optimization A Case Study Research Issues Road map to digital supply chain management
27 Case 3: Kimberly-Clark: Real-time Optimization
28 Solving the simulation optimization problem in real-time! 28
29 A New Budget Allocation Framework for the Expected Opportunity Cost Accepted by Operations Research 29 Feasibility Determination In real-time!
30 30
31 31
32 32
33 33
34 Result: 34
35 Outline Introduction Manufacturing Execution Optimization A Case Study Research Issues Road map to digital supply chain management
36 36 China Aerospace Science and technology Digital Supply Chain
37 Thank You!
38 ERP Summary Cash flow material flow information flow ERP got the numbers right Timing related decisions are almost useless Why? Time
39 MES: Manufacturing Execution Systems Planning Planning and scheduling is based on MRP Or APS technologies Keep tracking time related activities Execution Control
40 SCM Use Inventory to deal with uncertainty Inventory Sales Production Purchasing
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