Interpreting some basic principles of Manufacturing Informatization

Source: Internet
Author: User
Interpreting some basic principles of Manufacturing Informatization
From e-Works
Cai Ying 2003-10-13
It is an indisputable fact that the manufacturing industry should speed up the pace of Enterprise Informatization. informatization does not change the classic management principles, so how can we make better use of Informatization for enterprises, it is necessary to review the basic principles of manufacturing. This article elaborates in detail the 66 Basic Principles of manufacturing informatization in compliance with the manufacturing system.

"The beasts in the jungle carefully approaching their prey are always alert, and maybe other predators are approaching it. It must monitor the environment and respond at any time. It has a clear goal, and its strategy to achieve the goal changes anytime and anywhere. When necessary, it will act very quickly ." -This is a portrayal of the survival of the Information enterprise jungle.

Like biology, enterprises need a neural system. This means that the manufacturing industry should speed up enterprise informatization to achieve rapid response and effective control. This is an indisputable fact. However, informatization does not change the classic management principle. Therefore, it is necessary to review the basic principles of manufacturing in order to make better use of informatization.

Manufacturing managers have turned to recognize a basic truth in a competitive business world: in any company that wants to take advantage of marketing opportunities, control its financial investment and run its manufacturing facilities to make profits, its heart is an effective planning and control system, its muscles execute the plan. Manufacturing is controllable, and its return is huge. A successful company must balance the plan and execution.

Manufacturing Informatization is hierarchical in the manufacturing industry:

Manufacturing Informatization is aimed at the entire business process of the manufacturing industry. Manufacturing Informatization combines information technology, automation technology, modern management technology and manufacturing technology to drive innovation in product design methods and tools, innovation in enterprise management models, and innovation in collaboration between enterprises, it realizes the informatization of product design and manufacturing and enterprise management, the intelligence of production process control, the digitization of manufacturing equipment, and the network of services. ERP is an important part of manufacturing informatization.

In the entire manufacturing informatization framework, business management information system ERP plays a core or central role. It provides support for decision-making support systems for the manufacturing process control information system and Numerical Control Equipment Information System, connects research and development information systems horizontally, and also facilitates collaboration between enterprises (supply chain) build bridges. Today, the research, development, and application of manufacturing business management information systems have gone through more than 30 years. From the evolution of MRP/MRPII/ERP, we can analyze the evolution of manufacturing business informatization. The current business management information system ERP is evolving in three aspects: first, it is extended to the manufacturing process system to capture the changed data and processing quality information of the workshop in real time. The second is to extend to the product design system, and quickly convert the time from new products to production and sales markets. The third is to implement an advanced supply chain optimization plan. The plan system responds quickly to customer demand changes, optimizes, and implements production plans in real time. Make the manufacturing information system truly conform to the basic principles of management. Meet the basic requirements of the manufacturing industry: quality, time, and cost.

Manufacturing Informatization should consider the production type of manufacturing:

There are six types of production principles, which can be divided into two categories: discrete and process ).

From extreme Discrete Production to full continuous production, according to The Gartner Group's 1997 ERP software supplier guide, there are six production types in detail.

Below we will give a general introduction to these six production types.

1. Design by Order (engineer to order, Eto) or by project (engineer to project ).

In this production type, a product is designed to a large extent according to the requirements of a specific customer, therefore, supporting custom design is an important function and component of the production process. Because the vast majority of products are customized for specific customers, these products may be produced only once and will not be repeatedly produced in the future. In this production type, the product production batch is small, but the design work and the final product are often very complicated. In the production process, each task must be handled in a special way, because each task is different and may have different operations and expenses, which must be completed by different personnel. Of course, some frequently used and large batches, such as raw materials, can be excluded.

In order to make each sub-department of a large product or project exactly match in the final stage, different people will eventually use it, different sub-groups produced in different places are merged into a complex product or project. A very advanced configuration system is required to complete overall coordination and management control. In addition, accurate calculation of the cost of each sub-division is also a difficult requirement, because in the entire manufacturing process, different sub-divisions may be made by different types of subcontractors, including internal and external. Industries of this type include aircraft manufacturing, defense product manufacturing, publishing, mechanical equipment and power generation equipment manufacturing.

2. Assemble to order (ATO) or make to order ).

In this production type, the customer requires certain configuration of parts or products, and the manufacturer provides customized products for the customer according to the customer's requirements. Therefore, the manufacturer must maintain the inventory of a certain number of parts so that when the customer orders arrive, the product can be quickly assembled according to the order and sent to the customer. Therefore, some types of configuration systems need to be used to quickly obtain and process order data information, and then organize product production and assembly according to customer requirements to meet customer needs. Production Enterprises must have different components and prepare Multiple Flexible assembly workshops to assemble a wide range of products in the shortest time. Products of this production type include: personal computers and workstations, telephones, engines, house doors and windows, office furniture, automobiles, some types of mechanical products, and more consumer goods.

3. Make to stock (MTS)

In the inventory-based production type, the customer basically has no suggestions or requirements for determining the final product specifications, and their investment is very small. The products produced by the producer are not customized for any specific customer. However, the batch production by inventory is not as large as the typical repeated production. Generally, there is only one layer of material list for such production systems, and the production batches are standardized. Therefore, a standardized cost can be calculated. The actual cost can be compared with the standard cost, and the comparison result can be used for production management. Typical products by inventory include furniture, file cabinets, small batches of consumer goods, and some industrial equipment.

4. Repetitive)

Repeated production, also known as mass production, is the production type that produces mass standardized products. The producer may be responsible for the raw materials of the entire product series and tracking and recording the raw material usage on the production line. In addition, the producer should pay attention to quality issues over a long period of time to avoid the gradual degradation of the quality of a certain type of product. In the continuous production process, various expenses, such as raw material costs and machine costs, may overlap and are difficult to clearly distinguish. However, for management purposes, clear division is still required.

Repeat production often uses backflush to calculate the use of raw materials. Based on the production capacity of the purchased accessories, the reverse charge method is used to remove the quantity of parts or raw materials used for this Assembly or sub-assembly from the stock by expanding the material list. It is based on the calculated average, not the actual value. Duplicate production types need to plan production batches and set appropriate intervals for repairs on certain devices. Products of the repetitive production type include: pens, devices used for fixed items (such as zippers), tires, paper products, and a large number of consumer goods.

5. Batch)

In the batch production type, products in the initial stage of the lifecycle may change significantly. In purely discrete production, products are assembled Based on the bill of materials, while in batch production, products are either based on a set of recipes (recipe of ingredients) or a list of resources (Bill of resources). Co-products and by-products may occur due to changes in the product formula, such as equipment, raw materials, and initial conditions ). In addition, the composition and chemical properties of raw materials may be very different, so there must be a set of different recipes for making a product. In addition, subsequent product manufacturing methods often depend on how previous products are made. After multiple batch production, it may be transferred to the repeated production type. Typical batch production products include medicine, food and beverage, and paint.

6. Continuous Production)

In the continuous production type, the production of a single product will never stop, and the machine and equipment will continue to run. Continuous Production products are generally raw materials from other factories within the company. The product is basically not customized. Such products mainly include: petrochemical products, steel and initial paper products.

Now, in order to survive in the brutal competition, manufacturing enterprises have developed lean and flexible production methods that reduce costs and quickly respond, such as pipeline pull manufacturing, unit manufacturing, and Synchronous Production, this is a cross-century productivity revolution.



Manufacturing Informatization complies with the basic principles of the manufacturing system:

The following is an analysis of the 66 Basic Principles.

Principle 1: For all manufacturing industries, the system framework required for effective planning and control is the same.

Management of any manufacturing industry is successful. The logic of the entire manufacturing organization architecture is the same. The manufacturing planning system needs to solve various problems that impede production, instead of making up for the problem with inventory or using buffer time to compensate the problem. To solve these problems, collective collaboration is required between all personnel involved in the entire manufacturing process.

Principle 2: a manufacturing plant is a separate entity and requires an integrated system and collective collaboration to manage it.

Enterprises are actually an organism. They need a media to enable traditional chimney-style enterprises to communicate and collaborate effectively. This enables the full integration of the company's personal and property information. Manufacturing Control is an integrated concept, rather than a loose collection of many techniques. It focuses on providing timely and objective decision-making options for all managers.

Principle 3: shorter lead time is the most important factor in making the plan more effective.

Reduce batch, shorten lead time, effectively avoid lead time syndrome, make the plan more flexible and effective.

Principle 4: manufacturing control requires effective management of all inventories.

It is not just finished products, products, raw materials, auxiliary materials, and maintenance materials. There are also tooling, suppliers Storing Materials and customer feed. All inventories that affect the capital turnover of manufacturing enterprises must be controlled.

Modern inventory management methods include: 1. The seller manages Inventory (VMI): suppliers can understand the customer's inventory data and maintain the customer's inventory quantity. VMI is implemented through process management, where replenishment is performed by the seller through regular on-site inventory check. 2. Inventory Management by Seller: The difference between inventory management and inventory management is that the seller retains ownership of the goods at the place where the goods are delivered, that is, the customer's warehouse. Payment for goods will be settled after the goods are actually used or sold. 3. Joint management of inventory (jmi): the management team of jmi is composed of the customer and the seller's staff. Usually, the team members are located in the adjacent geographical area to hold regular meetings. Jmi requires stronger joint planning and communication. 4. jitii: A seller's employee works in the customer's purchasing department instead of the customer's purchasing personnel. The customer allows the seller's employee to issue an order as the customer and allows him to keep abreast of the plant and project conditions at the customer's factory location.

Principle 5: control requires a number that truly counts, not just a number that is easy to count.

We often count the inventory of easy data, such as raw materials, semi-finished products, and finished products. What we really want is to control the number of inventories of managed data, such as class A, Class B, and class C.

Principle 6: allocate the number of production adjustments to high-value items to reduce their inventory, and easily compensate for the growth of low-value item inventory.

Key Management of class A or important materials. This item is monitored from planning/production/procurement/inventory/Cost/finance.

Principle 7: Correct EOQ is good, but shorter production adjustment is much better than it.

It is important to understand the basic concepts of EOQ, and be sure that the model used is most effective for the special circumstances under study. EOQ formulas contain many assumptions. To apply formulas appropriately, the actual workers must understand the meaning of these assumptions.

Principle 8: EOQ computing is only the starting point. modify them to obtain the actual results.

The computer system only calculates the recommended number based on your false design, analyzes it, and uses it properly.

Principle 9: prediction is a set of numbers that can be used as the starting point of work. It is not the end point of work.

There is no error in the prediction itself, but the people who manage the prediction are indeed at a high level. The smartest people in an enterprise should make predictions.

Principle 10: Give each user a prediction suitable for their needs.

The prediction should not be general. Different predictions should be made to different people. Such as fund prediction, sales prediction, device prediction, and production prediction.

Principle 11: The larger the predicted materials are, the more accurate they are.

Future prediction can only be a product type prediction.

Principle 12: The shorter the prediction period, the more accurate it is. The longer the term is, the less accurate it is.



Use the rolling prediction method to avoid the impact of forecast fluctuations.

Principle 13: prediction and actual difference analysis are the most important.

Evaluation and prediction, analysis and prediction, and adjustment and prediction are the responsibilities of the prediction manager.

Principle 14: do not place the inventory item Committee in any specific location at any time possible.

The basic method to control inventory is punctuality.

Principle 15: it is much more important to answer the question when an item is required than to determine how many items are required.

For inventory turnover, when to purchase and when to produce are the concept of punctuality.

Principle 16: As uncertainty cannot be eliminated, the order point method requires inventory reserves.

Zero Inventory is our goal. But the reality is not perfect.

Principle 17: only when the assumption of statistical techniques is effective and tested can the statistical techniques be used to set up the reserve inventory.

Many statisticsAlgorithmIt does not adapt to the dynamic fuzzy changes of manufacturing enterprises.

Principle 18: using empirical rules to set reserve inventories is not good, because these rules ignore the reasons for their need.

There is always a basis for reserve stock.

Principle 19: simple and practical techniques may provide more economical inventory control.

This is why simple algorithms MRP and opq are more popular in enterprises.

Principle 20: ordering point data in different time periods greatly enhances the power of this technique.

Due to the time segment, the original static order point is switched to dynamic order.

Principle 21: orlicky is independent. The relevant requirements and guidelines provide good guidance on the selection of ordering techniques.

The independent MPs requirement is manually controlled and handed over to the computer MRP.

Principle 22: MRP logic is applicable to all types of products and processes that contain multiple components.

The MRP logic is that the material is decomposed according to the product structure. It is mysterious by computer experts.

Principle 23: the ideal part number is short, digital, and unique.

The part number is only a tag. Note that the part numbers of the integrated system do not require too much meaning.

Principle 24: A bill of materials forms the framework of a modern system, which must be highly accurate and properly constructed.

Material List is the most important basic data in the manufacturing industry.

Principle 25: Engineering Change Control in the bill of materials is as important to the success or failure of a company as a new design.

Using workflows to control engineering changes is a good method.

Principle 26: MRP is just a mechanization of the basic logic of manufacturing.

This shows that all manufacturing enterprises can use MRP, And the MRP algorithm conforms to the basic manufacturing rules. It recommends the appropriate time for issuing orders. Specify the appropriate dates for replenishment and keep these dates valid during order processing. Provide information to help with capacity requirement planning and loading of machines and processing centers.

Principle 27: The material plan only initiates the process of obtaining materials. The execution plan completes the process.

MRP only generates a suggestion plan in real time, which is often unfavorable for execution, leading to the blame for MRP.

Principle 28: the logic of MRP is universally applicable. Its application method depends on the specific environment.

There are many rules for using MRP. Different production types adopt different MRP policies.

Principle 29: data from a distance in the world can and should be rough during planning.

You can set a production plan in a short period of time. In a long time, the plan is rough and can be flexibly changed.

Principle 30: isolated, unrestricted, and multi-purpose plans are worse than useless; they are dangerous.

Without an integrated plan, separate political plans are harmful to enterprises.

Principle 31: MPS drives the planning process rather than the execution process.

The main production plan provides enterprises with a control switch to control the entire operation plan. Is the core of manufacturing enterprise operation.

Principle 32: The best MPs has a minimum number of items and meets the needs of adequate material and capability plans.

The main production plan should be specific, with available materials and executable ability.

Principle 33: properly forming a bill of materials is an indispensable part of MPs

The main production plan calculates the required materials according to the bill of materials. The establishment of a bill of materials must meet the production needs of the enterprise.

Principle 34: MPs must be properly managed and must be complete and executed.

The master production plan must have a high level of personnel focus management.

Principle 35: to control the inventory details, you must manage the total inventory.

Inventory management cannot be achieved blindly. There must be a management strategy for inventory as a whole based on the production type.

Principle 36: EOQ theory should be used to draw transaction curves for management and decision-making.

Transaction trend analysis can make management decisions more effective.

Principle 37: using a transaction curve to study alternative solutions produces much better decisions than using it to calculate reserve inventory for a given customer service level.

Because inventory changes need to consider multiple requirements. Considering the use of statistical methods to determine the reserve inventory, we can use quantitative methods to solve inventory turnover and customer service level, which is a measure of the effectiveness of inventory control. You can make reasonable decisions on inventory investment. It is often possible to make significant improvements in the relationship between inventory investment and customer services.

Principle 38: inventory is a kind of liability; the less the better.

From the management ideology, changing inventory is an asset concept. It is a liability and a heavy liability.

Principle 39: Management of The Work Center is the ability to manage the problem.



The main problems and difficulties in the management of the Work Center are the ability issues.

Principle 40: both priority and capability are managed while order preparation requirements are managed.

It is very complicated to know the factors that affect the early stage. It is simple to manage priority and its capabilities.

Principle 41: The capability plan should use as extensive a product group as possible after similar manufacturing operations.

Capacity plans for new products may be inaccurate. Because the standard working hours for old products are relatively accurate.

Principle 42: production plans, even rough, provide effective means for Capability Management.

A capacity plan is driven by a demand plan and serves only as a reference for the scheduler.

 Principle 43: The capacity requirement plan cannot be postponed; a rough method is very practical.

In fact, rough capability plans are often used. It is not easy to make the capability plan accurate.

Principle 44: the capability must be sufficient to support MPs and handle additional unplanned needs.

Experienced planners consider mobility to prevent changing needs when making capacity plans.

Principle 45: Detailed capability requirement plans may seem highly accurate but still inaccurate.

In reality, few companies have the ability and load to be accurate and timely. This is related to the field data collection technology.

Principle 46: When capabilities are used to create unwanted things, they are wasted.

Effective Utilization capability is always the bottleneck of manufacturing enterprises.

Principle 47: the ordering technique should be used to sort orders in a concise order prior to order selection.

Sort orders by priority and certain rules.

Principle 48: the backlog of production orders in the office is better than putting them under the control of the workshop.

Do not place production orders too early. Release after expiration.

Principle 49: the input should be less than or equal to but never greater than the output.

As needed. This is the method to reduce the number of reproducts.

Principle 50: The schedule rules must leave room for all elements in the early stage.

A buffer should be taken into account for the detailed plan.

Principle 51: Load addition is a priority control technique, which is useful only when the data meets the actual needs.

Only when the data is accurate is supported by the limited capacity plan of the FCS. This is the key and bottleneck for planning and scheduling in the manufacturing industry.

Principle 52: suppliers are treated exactly like factory work centers for timely delivery.

The general trend is to include suppliers in their own supply chains.

Principle 53: the better the input control, the less the output needs to be controlled.

Most factories tend to focus on output control while ignoring input control. If you want to control the output, the easy way is to carefully control your input.

Principle 54: Output Control must include both capabilities and priorities.

If the capacity should be reduced, the delay in the decision will increase the inventory. Consider priority to prevent loss of important orders.

 Principle 55: effective capability control is a prerequisite for priority control.

Ensure sufficient capacity to support the plan, balance the input rate and output rate, control the work queue and shorten the lead time, and provide early warning signals for corrective actions requiring changes, combining priority with capability planning and control activities, effective priority control is necessary in addition to capability control. Manufacturing plants must produce enough products and make work on the Right items; both are necessary.

Principle 56: The less acceleration, the more effective it is.

Acceleration is prone to a vicious circle. This often occurs when there is no priority shortage. Acceleration is effective only in exceptional circumstances. This approach is effective only when a few jobs are defined as priorities.

Principle 57: the best way to control work at the plant site is to prevent it from arriving at the site too early.

Improving the field environment of the factory is the basis for controlling logistics.

Principle 58: returning to the original plan is more difficult but better than the new plan.

The corrective action can be a combination of the original plan and the revised plan. The control means to measure the actual performance. Compared with the plan, it discovers deviations and takes corrective actions.

Principle 59: sound planning and effective control must include information, not data.

A plan control system must be able to process complete, integrated, and accurate information. The system uses and generates timely information from qualified planning and control personnel, which is managed effectively by competent factory management personnel.

Principle 60: for control, timeliness is more important than accuracy, although both are needed.

Control cannot be applied to what has happened. It can only be applied to what will happen. Out-of-date control information cannot be called control information. Real-time is especially important for the planning control system.

Principle 61: The Job control must select a solution that minimizes the loss from the alternative options available.

An effective plan control manager must be able to clearly explain to the management department the actual decision-making scheme, such as the order that will be affected when an expedited order is implemented. In fact, a good manager will be able to advise the management department to consider how a new order may compromise other orders.

Principle 62: suppliers rely on sufficient capacity and short lead time for on-time delivery, rather than relying on the power and close relationship of customers.

As with internal operations, the on-time delivery of purchased items is required to ensure that the supplier's capacity will be sufficient to supply orders in a smooth and smooth manner.

Principle 63: carefully selecting performance measurements; people are willing to take actions that look good with these measurements.

In any company, performance measurement is extremely important. Before starting any improvement plan, we should establish a performance measurement to show how the future performance will be compared with the current situation. Performance measurement itself is one of the best ways to improve performance. Therefore, it should be one of the basic elements of any production control system.

Principle 64: The difference between protection and control information lies only in timing. The control is defended before the problem occurs, and the explanation is that there is a problem.

The true function of planning and control is to generate the information required to manage the factory to prevent the factory from getting into trouble, rather than simply handling the daily activities to get out of trouble. Manufacturing Control System is a discipline for processing information.

Principle 65: interference with all problems of planned operations can and must be solved.

If inaccurate prediction and unreliable supply are involved, the finished product may exceed the expected demand. Unreliable suppliers and uncertain procurement time make excessive raw materials and purchased components necessary. Frequent adjustments, unstable flows, poor quality, decommission and rework, imperfect machine tool installation and equipment, and Mo Feifei's law, make high in-product products. Inventory that has been decommissioned due to various changes.

principle 66: inventory can be significantly reduced only by identifying and solving the causes of surplus.
in any manufacturing company, the "correct" inventory is much smaller than that of many companies, analyze the cause and the management layer keeps putting pressure on it to reduce inventory.
in short, the informatization of manufacturing enterprises does not change the basic principles of classic management. Enterprises need core competitiveness, strong corporate culture, and a development vision, in the spirit of innovation, manufacturing enterprises should pay attention to the implementation of industrial engineering (IE) and lean production, and continuously improve and focus on detailed production management. Informatization gives enterprises a new perspective, whether or not they are aware of this. An information-based enterprise should be an enterprise designed to adapt to rapid changes and be able to learn, evolve, and quickly change itself.

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