Production Analysis Project 06-91-413The Electromac Group

Table of Contents

Introduction )

Literature Review

Models / Methodologies

Results / Examples

Discussion / Conclusion

References

Appendix

List of Figures

Figure 1: Press 512 Output Orientation

Figure 2: Pallet Layout

Introduction

The idea of this project is to apply concepts taught in Production Analysis (91-413), into a real world industry situation. The class covers multiple aspects of analysis and control of production systems. The company's core values are Trust, Process Innovation, and Operational Excellence, these values directly relate to what Production Analysis teaches as a class. Our group needed to evaluate our Industrial partners problem and decide which course material could relate, or compare to their current procedures to help promote these values. Time horizons for strategic decisions can be broken down into three sub categories. The category in which we are focusing on is the third which is Short Term Decisions. The Short Term decisions we will be focusing on and testing our knowledge is shift optimization improvements, inventory control through EOQ production model and a priority shift schedule during interruptions.

The company we our doing our project for is an international hot stamp, cold stamp, laser CNC, die build, and welding company. A company of this size has multiple departments, and disciplines allowing our group to compare in class information to different industrial standards. With several facilities in the local area and the company constantly expanding their production array they often run into scheduling conflicts. The Electromac Group has just purchased a new Hot Stamp production facility in Lasalle, and would like us to generate a priority system for the off shifts. The company runs three shifts; Days, Afternoons, and Midnights. The issue isn’t when a problem arises on days it is an easy fix because managers and high positioned employees are on site. These employees have no problems making a decision and then continuing production. However on the afternoon, and midnight shift the highest priority is a production supervisor who usually has to call and wake up the production manager. The production manager would like to not receive these calls anymore and instead create a schedule which contains a contingency plan for if a tool breaks down based off weekly needs. This will allow production to continue until the morning without him receiving a call.

The second technique we are going to implement is an optimal weekly production quantity template. Since this company runs hundreds of different production parts are numerous production levels it would be impossible for our level of knowledge to configure and set up an optimal schedule within the time frame, and with our current abilities. What we can do is create a excel template where the user can input the variables of the production parts they are focusing on and see how the production EOQ model compares to an industrial experience schedule layout. The main assumption in our model will be demand remains constant. The industrial partner has contracts for its suppliers which state they are allowed to asked for a certain percentage above which is normally quoted and this can be accounted for using The Nature of Uncertainty.

The purpose of this project is to produce two models which one will help the industrial partner and the other create a comparison for us to see the relationship between our knowledge learned in class and how the industry works. The priority model should help off shift supervisors when making their decisions for die change without having to look at a intimidating multiple page schedule. The second will produce an excel template in which our industrial partner can use if needed but is more of a learning experience for our group. The template will show theoretical yields compared to an industry schedule. It will display the difference between best case scenario (EOQ), and reality in the workplace, from downtime, machine failure, power outages, and even labour shortages. We believe if this project is done efficiently it will show the contrast of what's learned in class compared to industry, displaying the similarities, the differences, and how experience or knowing the plant can differ from optimal formulas, and will be a great learning experience.

Literature Review

This section talks about previous research done in these fields relating to our ideas)

Models / Methodologies

This projects takes multiple Models, and Methodologies into an applicable situation.

EOQ Production Model

Demand = Demand(Determined) + Demand(Uncertainty)

Priority Model = Austin