ecently, Phil Harris, the production control manager at Brunswick, read an article on time-phased requirements planning. He was curious about how this technique might work in scheduling Brunswick's engine assembly operations and decided to prepare an example to illustrate the use of time-phased requirements planning. Phil's first step was to prepare a master schedule for one of the engine types produced by Brunswick: the Model 1000 engine. This schedule indicates the number of units of the Model 1000 engine to be assembled each week during the last 12 weeks and is shown on the next page. Next, Phil decided to simplify his requirements planning example by considering only two of the many components that are needed to complete the assembly of the Model 1000 engine. These two components, the gear box and the input shaft, are shown in the product structure diagram below. Phil noted that the gear box is assembled by the Subassembly Department and subsequently is sent to the main engine assembly line. The input shaft is one of several component parts manufactured by Brunswick that are needed to produce a gear box subassembly. Thus, levels 0, 1, and 2 are included in the product structure diagram to indicate the three manufacturing stages that are involved in producing an engine: the Engine Assembly Department, the Subassembly Department, and the Machine Shop. The manufacturing lead times required to produce the gear box and input shaft components are also indicated in the product structure diagram. Note that two weeks are required to produce a batch of gear boxes and that all the gear boxes must be delivered to the assembly line parts stockroom before Monday morning of the week in which they are to be used. Likewise, it takes three weeks to produce a lot of input shafts, and all the shafts that are needed for the production of gear boxes in a given week must be delivered to the Subassembly Department stockroom before Monday morning of that week. In preparing the MRP example Phil planned to use the worksheets shown and to make the following assumptions: 1. Twenty gear boxes are on hand at the beginning of Week 1, and six gear boxes are currently on order to be delivered at the start of Week 2. 2. Forty input shafts are on hand at the start of Week 1, and 24 are scheduled for delivery at the beginning of Week 2. a. Initially, assume that Phil wants to minimize his inventory requirements. Assume that each order will be only for what is required for a single period. Calculate the net requirements and planned order releases for the gear boxes and input shafts. Assume that lot sizing is done using lot-for-lot (L4L). (Leave no cells blank - be certain to enter "0" wherever required.) Gear Box Requirements Input Shaft Requirements Phil would like to consider the costs that his accountants are currently using for inventory carrying and setup for the gear boxes and input shafts. These costs are as follows: PART COST Gear Box Setup = $80/order Inventory carrying cost = $3/unit/week Input Shaft Setup = $50/order Inventory carrying cost = $2/unit/week Suppose least-total-cost lot sizing is to be used. Using the planned order receipts shown below, complete the remainder of the gear box and input shaft tables. (Leave no cells blank - be certain to enter "0" wherever required.) Gear Box Requirements Input Shaft Requirements c. What are the savings with the new schedule? Assume inventory is valued at the end of each week. Cost of the schedule from part (a) Cost of the schedule using least-total-cost lot sizing. Savings with the new schedule.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
ecently, Phil Harris, the
Phil's first step was to prepare a master schedule for one of the engine types produced by Brunswick: the Model 1000 engine. This schedule indicates the number of units of the Model 1000 engine to be assembled each week during the last 12 weeks and is shown on the next page. Next, Phil decided to simplify his requirements planning example by considering only two of the many components that are needed to complete the assembly of the Model 1000 engine. These two components, the gear box and the input shaft, are shown in the product structure diagram below. Phil noted that the gear box is assembled by the Subassembly Department and subsequently is sent to the main engine assembly line. The input shaft is one of several component parts manufactured by Brunswick that are needed to produce a gear box subassembly. Thus, levels 0, 1, and 2 are included in the product structure diagram to indicate the three manufacturing stages that are involved in producing an engine: the Engine Assembly Department, the Subassembly Department, and the Machine Shop.
The manufacturing lead times required to produce the gear box and input shaft components are also indicated in the product structure diagram. Note that two weeks are required to produce a batch of gear boxes and that all the gear boxes must be delivered to the assembly line parts stockroom before Monday morning of the week in which they are to be used. Likewise, it takes three weeks to produce a lot of input shafts, and all the shafts that are needed for the production of gear boxes in a given week must be delivered to the Subassembly Department stockroom before Monday morning of that week.
In preparing the MRP example Phil planned to use the worksheets shown and to make the following assumptions:
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1. Twenty gear boxes are on hand at the beginning of Week 1, and six gear boxes are currently on order to be delivered at the start of Week 2.
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2. Forty input shafts are on hand at the start of Week 1, and 24 are scheduled for delivery at the beginning of Week 2.
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a. Initially, assume that Phil wants to minimize his inventory requirements. Assume that each order will be only for what is required for a single period. Calculate the net requirements and planned order releases for the gear boxes and input shafts. Assume that lot sizing is done using lot-for-lot (L4L). (Leave no cells blank - be certain to enter "0" wherever required.)
Gear Box Requirements
Input Shaft Requirements
Phil would like to consider the costs that his accountants are currently using for inventory carrying and setup for the gear boxes and input shafts. These costs are as follows:
| PART | COST |
| Gear Box | Setup = $80/order Inventory carrying cost = $3/unit/week |
| Input Shaft | Setup = $50/order Inventory carrying cost = $2/unit/week |
Suppose least-total-cost lot sizing is to be used. Using the planned order receipts shown below, complete the remainder of the gear box and input shaft tables. (Leave no cells blank - be certain to enter "0" wherever required.)
Gear Box Requirements
Input Shaft Requirements
c. What are the savings with the new schedule? Assume inventory is valued at the end of each week.
Cost of the schedule from part (a)
Cost of the schedule using least-total-cost lot sizing.
Savings with the new schedule.
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