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Scheduling and Controls of Project ManufacturingMohamed El-Mehalawi, Ph.D, PMPSenior Project Controls ManagerFaithful+Gould
The Presentation is not available on the Conference DVD.
If you like a copy send me an email I will send you a link to it.
[email protected] pick up my card.
About the Author
I love
KISSKeep It Simple, Smart
I Love Manufacturing
I Love Project Management
• There is no exact science that is applied to get project management results.
• It depends on personal traits: – Creativity– Problem solving– Communication– One mile long – one inch deep !
The Problem
Engineering Complete
1 day
Shipping Products5 days
Fabrication160 days
Shipping Raw Material4 days
Manufacturing Management
Management of manufacturing is based until today on two environments:
1. Mass production and assembly line2. Job-shop manufacturing
I am suggesting a third method called Project Manufacturing
Mass Production Line
Videos
Mass Production:Definition
Mass production is the production of large amounts of standardized products on production lines.
It was popularized by Henry Ford in the early 20th Century, notably in his Ford Model T.
It was reinvented by Toyota in the 1950s.
Production Line:Definition
A Production Line is a manufacturing process in which interchangeable parts are added to a product in a sequential manner to create an end product.
Scheduling & Controls in Mass Production
• Push/Pull production scheduling• Ford focused on the Push system
– Push the material into the line
• Toyota focused more on the Pull system– Products at the end of the line generate signal
to push material into the line.
Scheduling & Controls in Mass Production
Job-Shop Manufacturing
Job-Shop Manufacturing
Job-Shop ManufacturingDefinition
The job shop scheduling problem (JSP) is a traditional decision making problem that is encountered in:
• Low volume–high variety manufacturing systems
Job-shop scheduling is dedicated to low volume repetitive products manufacturing
Job-Shop is a good strategy for make-to-order not for unique and temporary engineer-to-order products.
Scheduling and Controls in Job-Shop Manufacturing
• There are thousands of algorithms based on mathematical methods to resolve the job-shop scheduling problems.
• The “Goal” or TOC by Eliyahu Goldratt gave a common-sense methodology for the job-shop problem.
• CPM is not the best methodology for job-shop scheduling
Project Manufacturing
Image provided courtesy of The Babcock & Wilcox Company
Project Manufacturing
Image provided courtesy of The Babcock & Wilcox Company
Project Manufacturing
Project Manufacturing:Definition
Project manufacturing is dedicated to producing or assembling one unit of each unique product. Although it is a manufacturing environment, it follows the project definition of being temporary and unique.
Project Manufacturing:Definition
It is the process of manufacturing a temporary and unique product that has a very high number of non-standard components.
It is the process of manufacturing an engineer-to-order product.
Project vs. Repetitive Manufacturing
Repetitive Manufacturing
ETO / Project Manufacturing
Change Orders Very Limited Unlimited
Products Standard products Unique Products
Pricing Uses a price list Estimates & quotes.
# of components Low Very High
Lead time Days or weeks Months or years
Inventory Based on part number No Inventory
Project vs. Repetitive Manufacturing
Repetitive Manufacturing
ETO / Project Manufacturing
Engineering No or a few changes Significant changes
Value ($) Low Typically higher
Production routing Standard Customized
Shipping Ships from finished goods Ships from WIP
Progress measures
Cost variance from the standard cost
Cost variance from the original budget
Presentation Overview
This presentation is focused on the scheduling and controls of project manufacturing using critical path method (CPM).
1. Project manufacturing plant2. Benefits3. Project manufacturing scheduling 4. Automating the schedule5. Automating schedule updates6. Utilizing enterprise scheduling system to
manage resources7. Implementation results
Project Manufacturing Plant
Image provided courtesy of The Babcock & Wilcox Company
Project Manufacturing Plant
Image provided courtesy of The Babcock & Wilcox Company
There is no production line
There is no job-shop
Management in Project Manufacturing Plant
• The majority of project manufacturing shops in the US use manufacturing management based on job-shop.
• They utilize machine loading, master scheduling, process improvements, and quality assurance exactly like mass production plants.
CPM in Project Manufacturing
Objectives of this study or the benefits of using CPM in scheduling project manufacturing:
1. Providing a project-based methodology to a project-based process.
2. Integrating the fabrication phase of the project with the rest of the project schedule.
Will come back to these later.
Methodology Concept
Given a sheet and a bar of wood, you need to produce the shown chair.
It has 6 parts; A,B,C,D,E&F as shown.
Methodology Concept
1Cutting
2Sanding
3 Slot Creatio
n
4Bowing
A X X X X
B X X X
C X X X
D X X
E X X X
F X X
Methodology Concept
After having all parts, we need to:
1. Insert two D into E, → T, glue(5) & sand(6)
2. Insert T into B, → S, glue & sand
3. Insert two C into S → R, glue & sand
4. Insert two F into A → Q, glue, screw(7), and sand
5. Insert Q into R → W (the chair), glue, screw, sand, and paint(9).
Network Diagram for Chair Project
A1 A4A3A2
F2F1
D2D1
E3E2E1
B4B2B1
C3C2C1
T6T5 S6S5 R6R5
Q5 Q6Q7
W7W5 W9W6
Schedule for the Chair Project
Once the project network is created, each of the 30 activities can be assigned:
1. Duration … to calculate start and finish
2. Labor hours … with skill set determines labor requirements
3. Machine hours … with work-center type specifies machine reqrt.
4. Raw materials … raw material needed
5. Finished material … determines the progres of each activity
Custom Chair Manufacturing Plant
• Assume the plant does not produce two similar chairs.
• Each chair will have a resource loaded schedule.
• Each chair schedule can be combined with chair design, engineering and procurement schedules.
• Combining all chair schedules in an enterprise system will allow the production manager to plan for resource requirements.
• The schedule can be updated based on the consumed duration and the quantity of finished goods.
Automating Schedule Creation
• The first manual implementation was on products that had about 1000 part numbers.
• This generated more than 5000 activities.
• Production planners complained about having to create schedules for new products while updating the schedules of active products (projects).
Automating Schedule Creation
Any plant that deals with these large projects always has:
– An ERP system– An engineering bill-of-material system (BOM)– A part routing system– A manufacturing execution system
Usually the last three systems dump the information into the first system.
The idea of automating the creation of the project/product schedule depends on the last three systems.
Part Routing System
• For each part, the routing sheet describes:– How it is manufactured (the operations)– Needed materials– Needed labor skill and time for each operation– Needed work-center type and time for each
operation
Part Routing System Example
The part is a bent tubeOperation Sawing Milling Bending Painting
Raw Material 40ft - 2¾” Tube
Work-center Saw A9 Milling m/c Bender Z3 Paint Shop
M/C Time (m) 3 2 6 5
Labor Skill General Machinist Bender Painter
Labor Time (m) 5 4 10 11
Sawing PaintingBendingMilling
Part Routing Can Generate Local Schedules
A resource loaded schedule for each part number is generated.
The relationships between different local schedules are missing.
The BOM provides those relationships.
Custom Chair Bill of Material (BOM)
W - 1 Chair
Q - 1
R - 1
S - 1
C - 2
T - 1
B - 1
E - 1
D - 2
F - 2
A - 1
BOM Creates Activity Relationships
T cannot start unless 2 Ds and 1 E are finished.S cannot start unless 1 B and 1 T are finished.R cannot start unless 1 S and 2 Cs are finished.Q cannot start unless 2 Fs and 1 A are finished.W cannot start unless 1 R and 1 Q are finished.
These relationships are enough to build a complete manufacturing project schedule.
W - 1 Chair
Q - 1
R - 1
S - 1
C - 2
T - 1
B - 1
E - 1
D - 2
F - 2
A - 1
The Automation of Schedule Generation
• If:– Product routing – BOM
Are available in any electronic format, then the full resource loaded schedule can easily be generated automatically.
Manufacturing Execution Systems (MES)
• They are information systems used to manage and manipulate data in factory floors.
• Different technologies are used to distribute schedule information and to collect actual production information from plant floor.
• Barcode, Magnetic Cards, Smart Card, RF are examples.
Automating Schedule Updates
• MES provide real time information for each activity:– Start– Finish– Labor hours charged– Machine hours charged– Number of units finished
• Dumping this information into the schedule, we get an updated schedule that reflects the exact status of the project.
Project Schedule Integration
A1 A4A3A2
F2F1
D2D1
E3E2E1
B4B2B1
C3C2C1
T6T5 S6S5 R6R5
Q5 Q6Q7
W7W5 W9W6
Engineering Complete
1 day
Shipping Products5 days
Fabrication160 days
Shipping Raw Material4 days
Engineering Complete
1 day
Shipping Raw Material4 days
Shipping Products5 days
Project Schedule Integration
• It gives the project manager better control over the fabrication phase of the project.
• Any changes in engineering dates will be dynamically conveyed to the manufacturing schedule.
• If the project uses CPM and the fabrication uses job-shop, then there will be a disconnection in project controls.
Resource Management
• The manufacturing plant will have multiple concurrent projects.
• Concurrent projects share the same resources
• Constrained resource allocation to multiple projects is the hardest mathematical problem in project management.
Enterprise Project Controls Systems
• Enterprise project controls systems combine the requirements on each single resource from all active projects.
• Few resources are over allocated and few are under allocated.
• If we leave the resource leveling to be automated based on a heuristic or mathematical method, it will be a mess.
Enterprise Project Controls Systems
Resolving Resource Conflicts
• The plant might have 500 resources.
• If we try to schedule projects and pay attention to these resources, the number of production planners needed will be prohibitive.
• If we insert hard activity relationships to represent these resources, then all resources will be under-allocated.
Resolving Resource Conflicts: From Practice
• We used this system in a plant for three months trying to resolve conflicts of all resources. The implementation team was working with the production planners.
• We found that we only have 3 resources that are always over-allocated (bottlenecks).
• We manually scheduled all active projects around these three resources. No conflicts arise from other resources.
Conclusions: WorkflowRouting
From ERP System
Operations and Their Properties
EBOM From ERP
System
Part Child-Parent
Relationship
Data Manipulation
Data Manipulation
Activity ListActivity
RelationshipsResource Loading
Project Controls
Database
Resource Loading
Gantt ChartEarned Value
Measures
Build Global Information:
Work Centers.Labor IDs.Material IDs.Templates.
Documents Collected From Manufacturing,
Accounting, and HR
Conclusions:Goals Achieved
With a simple system, we achieved the implementation of our two goals:
1. Project schedule integration specially for EPC projects
2. Planning and controls of production within a project manufacturing plant.
Conclusions:Benefits to the Plant
• Plant customers (project owners) like this system because it keeps them informed on the status of their project.
• Engineering departments become informed about the effects of their schedule on manufacturing schedule.
• Changes are handled in the plant easier than handling them using a job-shop strategy
Conclusions:Success Story
• My first implementation was at a plant that used to update the schedule monthly.
• After implementation, I asked them to update it weekly and they agreed without any resistance because the automation of schedule creation saved them a lot of time.
• After a few months they came back to me and requested to update the schedule daily.
• That proves the applicability of the system in planning and controls in project manufacturing plants.
The Presentation is not available on the Conference DVD.
If you like a copy send me an email I will send you a link to it.
[email protected] pick my card up
Thank YouFor Attending!