1Session Five Using Outputs and Managing ProjectsMRP software generates exception reports that suggest actions planner need to take to maintain valid priorities. Such actions include the following: Release planned orders Expedite order Delay an order or scheduled receipt Cancel a planned order or scheduled receiptPegging Single-Level pegging allows the MRP user to trace the gross requirement for a component to its parent on level up.* If there is an imbalance between supply and demand, it is best to go up only one level using single-level pegging to resolve the issue. Full pegging allows the planners traces demand for a component to the level 0 or end-item sources.Where-used List Pegging reports identify parent items that currently have gross requirements for a given components. In contrast, where-used lists provide information on every parent item that calls for a given component. * Design engineers use the where-used lists to determine which and how parent items will be affected by a component change.Firmed Planned Orders FPO is needed to prevent MRP logic from changing quantities and/or times. MRP software cannot alter the due date, release date, or quantity of an order that has a firm designation.Advantages of the What-if Analysis and Simulation Once a desired result is achieved, it can be copied over to the live system and become the actual material schedule. Planners can evaluate various alternatives. Planners can test process improvements and manage risks.Revision of Planning Parameters Lead time Reduction Reasons: - reduce WIP and on-hand inventories- shorten planning horizons and lessen dependence on forecasts2 Key components: - Queue * The longest lead time component, the time spent waiting for an item or batch to be processed- Set up* Set up is the time between the production of the last good piece in one run and of the first good piece in the next run.- Run- Wait- Move Lot size* Lot sizing is a trade-off between the cost of ordering and the cost of carrying inventory. Safety stock and Safety lead time* Safety lead time, another inventory buffer in MRP, involves establishing a planned order receipt date that is earlier then when an item is really needed and planned order releases date that is offset by the normal lead time. Scrap factor * Planned order release = factorspeidPln1 Kanban quantity and Cycle time* Kanban quantity and Cycle time are parameters related to material planning in a lean/JIT environment. (takt time is significant) Kanban quantity refers to the lot size specified on the Kanban card. Cycle time is the time between the completions of two discrete units of production. Integration of Lean/JIT and ERP/MRP Pull vs. Push systemsIn a lean/JIT system, production is triggered by a pull created by customer demand and demand for materials from downstream workstations on the shop floor. In contrast, in an MRP system environment, materials are pushed to and through work centers on the shop floor as a result of demand from forecasts, actual orders for end items, and derived demand for components. Advantages and disadvantages of lean/JIT- Lean/JITs great contribution is its ability to reduce lead time, improve quality, and minimize inventory. Materials flow quickly and smoothly through the production process.- Lean/JITs weakness is that kanban pull systems work best when products are not complex and demand is stable and continuous. The general rule is that kanban-based replenishment works best if the coefficient of demand variation (standard deviation divided by average usage) does not exceed 30 percent.3 Project managementThe use of skills and knowledge in coordinating the organizing, planning, scheduling, directing, controlling, monitoring, and evaluation of prescribed activities to ensure that the stated objectives of a project, manufactured good, or service are achieved. Project Planning Key elements- Statement of work- Work breakdown structure- Project schedule* The most common project scheduling methods are: Critical path method (CPM)- A network planning technique for the analysis of a projects completion time used for planning and controlling the activities in a project. By showing each of these activities and their associated times, the critical path, which identifies those elements that actually constrain the total time for the project, can be determined.* CPM is most appropriate for activities that are well defined and /or are similar to activities that have been performed before.Program evaluation and review technique (PERT)- PERT is based on probabilistic time estimates, which derive from statistical methods that determine the duration of an activity.Three time estimates are made: O = Optimistic ML = Most LikelyP = PessimisticExpected time = (O+4ML+P)/6* When activities ar