Intradepartmental Production Management

Syllabus

Thematic definition of lectures: 1. Introductory information: the course Intradepartmental Production Management (IPM) is a continuation of Production Management and deals with a deeper explanation of the principles of production. IPM takes the business down to the very internal organizational units whose results are brought to the marketplace. In this course, students will learn, among other things, selected methods of optimizing the production process and their application in concrete examples. 2. The essence, characteristics, principles and prerequisites of modern IPM. In the conditions of a market economy, manufacturing enterprises are increasingly aware of the need for continuous improvement of production processes, which also affects the management of the enterprise as a whole. Modern IPM is characterized by several basic principles, which can be further elaborated and certain prerequisites must be provided for their functioning. 3. Organisation and main subjects of IPM: Organisational aspects in IPM are mainly determined by a set of internal company rules and the activities of their main subjects, or profit-centres. The main entities (profit-centres) of the IPM can be classified as: purchasing and supply, production preparation, production itself, production servicing, sales and marketing, logistics. We characterize and explain the most important tasks and activities of the individual intra-company organizational units. 4. Intra-enterprise information system: The basis of IPM is the creation of a reliable information system with the required parameters. Information is important for the IMS, by means of which we know the current state and course of processes as well as the results of business activities. This information is mainly from the following subjects: marketing, accounting and statistics, operational records, finance, HR, production preparation, aggregate planning, quality management, etc. A data information base is used for production management, and there are different approaches to its creation. 5. Economic aspects of IPM: a) Evaluation of in-house units from the point of view of contribution to fixed costs and profit generation: the basis for the solution are the following indicators: sales revenue, total output, fixed costs broken down into product, departmental and company costs, variable costs. From these we calculate the contribution to the payment of PV I, II, III, IV. b) Evaluation of internal units on the basis of portfolio matrices (BCG matrix, GE matrix, etc.) 6. Evaluation of intra-company organizational units in terms of their contribution to corporate results: The quality and level of ERM is an important determinant of the prosperity of an enterprise. Students will be introduced to the process of evaluating the strategic potential, current position and specific areas of the internal organizational units. 7. Intra-enterprise production planning. Possibilities of creating production planning and management systems. Factors determining the method (profile) of in-house production planning. The course of in-house production planning. Division of production planning and management systems. 8. Operational production management. The operational management of production is a set of activities that constitute a closed subsystem of the management of a business unit. Its importance lies in the fact that it ensures the performance of tasks and activities in the short term. Explanation of the different parts of the process organisation of production operations management. 9. Type systems of operational planning, planning norms in individual types of production: the system of planning by orders (used in piece production), the system of planning in periodic batches according to a standard plan (characteristic of serial production), the system of planning according to the norms of inventory of work in progress (production per warehouse), the system of planning according to the lead times (according to the terms of ordering and delivery), the system of planning according to the rhythm of production delivery. 10. Planning Norms in Piece Production: We explain the various scheduling norms, which include: job scheduling, job load scheduling, calculation of production cycle length and work-in-process inventory. 11. Planning normatives in batch production: determination of the range and rhythm of batches (production and transport batch), determination of the length of the production cycle and production lead time, determination of the volume of work-in-progress, standard work plans (schedules). 12. Planning norms in mass production: standard norms of the tact and rhythm of production, determination of norms of work-in-progress (production and inventory), standard plans of work of lines, whereby we recognize two types: standard plan of a permanent current line with intermittent production and standard plans of alternating current lines. 13. Summary and repetition of the learned material. Discussion with students on current issues and modern trends in in-house production management in Slovakia and abroad. Thematic definition of exercises: 1. Introduction: the content of the exercises consists of three areas of problems, which emphasize in particular the methodological and methodological background in the current areas of in-house production management, planning norms in individual types of production and modeling of renewal processes, as well as selected methods and optimization procedures that are applied in in-house production management. In the introductory tutorial, students will be introduced to the course content, topics for term papers and assignments, as well as the criteria for continuous assessment of their work during the semester. 2. Material flow. The sequential method is used to analyse material flow and its essence lies in the regular recording of all operations that are related to the movement of material. These records are recorded in a so-called sequence sheet. We distinguish between flow sheets for one product and for several products (product groups). For drawing up flow charts and graphs, markers are used to show the different types of operations. 3. The use of ABC analysis in warehouse management and in-house production management: it is based on the descending arrangement of items of purchased or stored material according to the value of turnover and cumulative turnover values. For the selected criterion, the boundaries between the group of items A, B and C are determined (generally 80-15-5 per cent). 4. It is based on the allocation of production or assembly operations to individual workstations of the line in such a way that maximum utilization of these workstations can be achieved. We use the Moodie-Young method to solve the balancing of the streamline, determining the number and time utilization of the line workstations. We will calculate the daily outgoing quantity, the daily input quantity of products, the tact and rhythm of production, we will draw up a precedence diagram and we will carry out the actual solution of the balancing by means of a spreadsheet. We then calculate the time utilization of the line workstations. 5. Renewal means the process of reproduction of machines and equipment, in which they are replaced by new ones: a) while maintaining their utility characteristics and number (simple renewal), b) while maintaining their utility characteristics and increasing the number of machines and equipment (extended renewal). The theory of renewal is essentially based on the principles of probability theory. 6. Calculation of examples: optimization of renewal depending on maintenance costs and constant coefficient of their growth, optimization of renewal depending on increasing maintenance costs, optimization of renewal depending on maintenance costs, preventive maintenance at a certain time and at a certain age. 7. Use of network analysis methods in IPM. Determination of critical path by CPM method in network graph, using incidence matrix and tabular (spreadsheet) form. 8. Time reserve analysis in network analysis: total, free, dependent and independent reserve. The critical path is the longest path in the network graph, it is made up of the so-called critical activities that require the longest time to complete and do not contain any time reserve, so that any change in their duration has an immediate impact on the duration of the entire project. It is the analysis of reserves and non-critical activities that will be the subject of the exercise. 9. Calculation of current line parameters. The individual operations on the line are performed at the same time intervals of the rhythm of the line. The design of the line and the calculation of its parameters can be divided into three parts: a) determination of the basic parameters of the line (the quantity to be entered, the stroke and rhythm of the line work, the maximum use of the working time of the line, the number of workstations of the line, the number of workers on the line), b) calculation of the time course on the line, c) calculation of the production in progress on the line. 10. Optimization of planning of material needs and company resources. The exercise will explain and calculate examples using the graph method, analogy method, type representative method. 11. Calculation of practical examples related to the determination of the size of material consumption, the size of material inventories, the determination of the need for supplies. 12. Interim assessment - written test. 13. Summary: The essence of the content of the exercises in this course consists mainly of the following problem areas. Planning norms and modelling in in-house production management. Selected methods and procedures of optimization in in-house production management.