MANF9472 PRODUCTION PLANNING AND CONTROL
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MANF9472 PRODUCTION PLANNING AND CONTROL
ASSIGNMENT 3 – 2020
THE MANUFACTURING SITUATION
A company manufactures 4 products, Pilts, Relts, Stuns, and Super Stuns, which are assemblies of different
combinations of 5 basic components A, B, C, D, and E. The product structure (Bill of Materials) of each
product is as follows (Figure 1) with the number in brackets being the number of each component required per
product:
Figure 1: The Bill of Material for the products.
These products are manufactured by processes involving 6 machines (M1-6) and an assembly process as shown
in Figure 2.
Figure 2: Manufacturing processes for the products.
Components A and B are fabricated on Line 1, which involves three sequential processes on M1, M2 and M3,
with a maximum capacity of 25 / week. Components C and D are fabricated on Line 2, which involves process
on M4 and M5, with a maximum capacity of 15 / week. Component E is fabricated on line 3 involving a single
process M6 with a maximum capacity of 30 / week. The maximum capacity for the Assembly line is 10 / week.
Each machine has an average production rate of parts per day as indicated, although considerable process
variability exists. Changeover times are involved on individual machines when they change from one
component to another. However, the assembly line is flexible and can change between different products
without any loss of production time.
The weekly demand for the products over the past 6 weeks has been given in Table 1 (wk-1 represents last
week, wk-2 the week before last etc).
| Pilt | |
| A(1) | C(1) |
| Stun | |
| B(1) | C(1) |
| A(2) | D(1) | E(1) |
| Relt |
| S.Stun | ||
| B(1) | D(1) | E(2) |
| M1 3.5 / day |
M2
3.0 / day
M3
3.5 / day
| M6 2.5 / day |
|
| M5 2.0 / day |
M4 3.5 / day |
| Line 2 = 15 / w | |
| ne 3 = 30 / w |
Assembly
(10 / week)
C,D
A,B
E
Line 1
Line 2
Line 3
Line 1 = 25 / w
Assembly = 10 / w
| Wk -6 | Wk -5 | Wk -4 | Wk -3 | Wk -2 | Wk -1 | |
| Pilt | 4 | 3 | 4 | 5 | 2 | 3 |
| Relt | 2 | 4 | 4 | 3 | 3 | 4 |
| Stun | 2 | 2 | 3 | 4 | 3 | 3 |
| S.Stun | 1 | 0 | 2 | 1 | 2 | 0 |
A “Bill of Resources” for each product has been set up, of which a simplified form is given in Table 3 below:
| Line 1 | Line 2 | Line 3 | Assembly |
| Component A | 0.4 / hr | 0.25 / hr | |
| Component B | 0.4 / hr | 0.25 / hr | |
| Component C | 0.344 / hr | 0.25 / hr | |
| Component D | 0.344 / hr | 0.25 / hr | |
| Component E | 0.312 / hr | 0.25 /hr |
Item Master File for the
| Item | On Hand | LT | Lot Size (multiples) |
Scheduled Receipt Period Quantity |
Unit Value $ | |
| Component A | 0 | 1 | 1 | 1 | 2 | 10.00 |
| Component B | 0 | 1 | 1 | 1 | 2 | 10.00 |
| Component C | 0 | 1 | 1 | 1 | 2 | 10.00 |
| Component D | 0 | 1 | 1 | 1 | 2 | 10.00 |
| Component E | 0 | 1 | 1 | 1 | 2 | 15.00 |
| Pilt | 1 | 1 | 1 | 1 | 2 | 70.00 |
| Relt | 1 | 1 | 1 | 90.00 | ||
| Stun | 1 | 1 | 1 | 110.00 | ||
| Super Stun | 1 | 1 | 1 | 200.00 |
Company Scheduling Notes and Policies
1. Delay of a customer’s order costs 10% of the value of the order per week.
2. Customer order may be delayed a maximum of two weeks.
3. It is possible to halve lead time, but the cost of producing or ordering the item increases by 50% (e.g.
workers get paid time and a half for overtime.
QUESTIONS:
(Please make appropriate assumptions where it is necessary after clearly stating them. Please use the
information given above, if relevant, and the MRP records you have developed in your first assignment.)
1. Develop Capacity Requirement Planning (CRP) for the end items (Pilt, Relt, Stun and S. Stun) and their
associated components (A, B, C, D E) by using the MRP records you have generated in your assignment
2 and the above given “Bill of Resources” (10 points).
2. Develop a Finite Capacity Schedule for the manufacturing processes and identify capacity profile for
each machine (10 points).
3. Develop a finite capacity profile for each process (10 points).
4. Comment on the implications by using the above given company policies and schedules if the demand
identified in your MRP records can be met within plus or minus 10% (10 points).
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