GE20 0280 2_The_Production_Information_and_Control_System_Dec69 2 The Production Information And Control System Dec69
GE20-0280-2_The_Production_Information_and_Control_System_Dec69 GE20-0280-2_The_Production_Information_and_Control_System_Dec69
User Manual: GE20-0280-2_The_Production_Information_and_Control_System_Dec69
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The Production Information
and Control System
Data PrDcessing ApplicatiDn '
PREFACE
This manual, by defining the applications that makE
up a production information and control system,
paves the way for a manufacturing company to convert to mechanized production control.
The application studies begin with a basic ingredient - the information requirements and relationships of production data. An attempt is made to
answer the questions ''What is necessary for a total
production system?" and "How is it created?"
Several factors permit solutions to the problem
of mechanization in this area: (1) the IDM bill of
.material processor program, which organizes disk
files and maintains the record data, (2) the enhanced speed, flexibility, and capacity of IBM's
direct access storage devices on its System/360
computer, and (3) the IDM operating system program concepts with the ability to maintain continuity
between jobs.
The production information and control system
is a logical and orderly growth plan for a manufacturing organization to do a better job of managing
men, machines, materials, and money. The goals
are clear:
• Increased productivity
• Increased profit3;bility
• Improved management
This publication enables the reader to visualize
the management of a company as a total system.
But, in addition, it provides new knowledge of subjects seldom discussed before:
• Value of common data files
• Flow and interaction of manufacturing
applications
• Workings and use of transaction entries
• Techniques for disk file organization
• Use of symbolic labels to define DATABASE
records
The introduction discusses the fabrication and
assembly types of manufacturing for which this production information system is designed. It also explains the problems and needs confronting the
industry today .
Chapter 1 provides an overview of the system.
Each of the eight application subsystems is defined.
They bear the following titles:
• Engineering Data Control
• Inventory Control
• Sales Forecasting
• Requirements Planning
• Capacity Planning
• Operation Scheduling
• Shop Floor Control
• Purchasing
Chapter 2 provides an in-depth analysis of the
data requirements and methods of file organization.
Transaction entries are shown, applicable to each
subsystem, together with functional flowcharts and
sample output formats.
The DATA BASE appears in the appendix of the
manual. It is the start toward a framework for a
production information system. It is also a planning
tool for continued growth and implementation.
Third Edition (Reprinted December 1969)
This is a ~ajor revision but does not obsolete E20-0280-1.
Specifications contained herein are subject to change from time to time. Any such change will be
reported in subsequent revisions or Technical Newsletters.
Copies of this other IBM publications can be obtained through IBM branch offices.
Address comments concerning the contents of this pUblication to: IBM, Technical
Publications Department, 112 East Post Road, White Plains, N. Y. 10601.
© Copyright International Business Machines Corporation 1968
CONTENTS
Introduction .....................•.......•
The Environment ..•..................•.
Types of Companies ................ .
Methods of Production ..........•.....
Types of Planning ................... .
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Module Descriptions ..........
File Load and Maintenance ....
Retrieval Programs ....
Subsystem Summary ......
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The Manufacturing Organization - Its
Needs ...........•....................
A Central Information System .......•.
A Framework for Mechanization ...••...•....•.•••.........
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Standardized Records....................
Transaction Entries . . . • . . . . . . . . • . . . . .
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Forecasting .......
Introduction
Objectives
Subsystem Flow
Model Descriptions ......
Model Select ... ~
Update and Project ......
Subsystem Summary
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Requirements Planning ..............
Introduction •..............
Objectives
Subsystem Flow ...
Time Series Level-by-Level Analysis.
Module Descriptions
Net Finished Product
Requirements ...
Net Component Requirements ~ ....
Processing Routines ..
0'
Plan' Orders ..............
Offsetting .. ~
Requirements Alteration .........
Conversational Planning .•...
Processing Detail
Subsystem Summary .....
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The Production Model . . . . . . . . . . . . . . . . . . .
Primary Flow ..............•........
System Flow. . . . . .. .. .. . . • . .. . . .. . . ..
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Data Flow in a Manufacturing
Organization. . . . . . . . . . . . . . . . . . . . . • . . . .
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Chapter 1: The System Overview
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Inventory Control ...
Introduction.
Objectives.
Subsystem Flow.
Module De scriptions .
ABC Inventory Analysis ..
Order Policy
Inventory Maintenance and Update .
Physical Inventory Count .........
Subsystem Summary ..
0
The Manufacturing Organization - Its
Problems ...•......................•.
A Costly Business •...................
A Complex and Changing Product ..... .
A Competitive Business .............. .
A Changing Environment .............•
Decentralized Production Planning .... .
An Information Explosion ............ .
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Benefits of the System. . . . . . . . . . . . . . . . . • .
A Plan for Growth.. ...... .. .•...... ..
Standardization .....................•
A Developed Framework ............ '0
A Clearinghouse for Production
Information
Closer Control over Materials, Machines,
Manpower, and Money
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Chapter 2: The Application Subsystems.
General Description
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Capacity Planning
Introduction ...
Infinite Loading .......
Objectives ...
Subsystem Flow .........
Module Descriptions ...
Construct Planned Order File ..... .
Determine Work Center Capacity .. .
Schedule and Load ..•...
Prepare Reports ...
Subsystem Summary
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Operation Sch~duling
Introduction
Objectives
Subsystem Flow
Module Descriptions
Sequencer
Completion Time Estimator ..
Tool Control
Subsystem Summary
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Module Descriptions.
Order Release
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Subsystem Summary
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Objectives
Description of Records
Subsystem Flow
Module Descriptions
Requisition and Purchase Order
Preparation
Purchase Maintenance and Update
Purchase Order Follow- Up
Purchase Evaluation
Subsystem Summary
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Programming Considerations .
Customizing File Organization
Routines
Specifying Work Areas and I/O
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Linkage Considerations
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Dynamic Production Recording and
Editing .
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Record Layouts, Field Descriptions,
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Item Master ...............
Open Purchase Requisition.. . . ..
Open Purchase Order ......
Vendor Master .......
Purchase Master ..
.Open Job Order Summary.......
Product Structure. . . . . . . . . . . . . .
Standard Routing .. 0. • • • • • • • • • • •
Work Center Master. . . . . . . . . . . . .
Open Job Operation Detail. . . . . . .
Tool Master. . • . . . . . . . . . . . . . . . .
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INTRODUCTION
THE ENVIRONMENT
TYPES OF COMPANIES
Manufacturing industries are classified into(l) basic
producer, (2) converter, and (3) fabricator. The
basic producer uses natural resources to produce
raw materials for other manufacturers. An illustration is a steel company processing iron ore to
produce steel ingots. The converter, on the other
hand, uses the products of the basic producer and
changes them into a variety of industrial and consumer products. He takes the steel ingot, for
example, and changes it to bar stock, tubing, or
plate. Finally, the fabricator takes the product of
the converter and transforms it into ayariety of
products. The bar stock becomes nuts, bolts, or
twist drills. Or, to produce an automobile, the
fabricator assembles body, chassis, frames,
wheels, engines, and other parts.
METHODS OF PRODUCTION
The fabrication industries further break out their
operations into the job shop, the assembly (or
product) line, or a combination of the two.
The job \ shop is the intermittent type of operation.
Department or work centers are organized about
particular types of multipurpose machines to perform a specific function. Individual work centers
exist for drilling operations, milling, facing, etc.
Because of the profusion of centers, control of
work in process becomes a burden. Order expediting, scheduling, and machine setups further
.complicate the job shop operation. Such an environment inevitably calls for heavy paperwork in
order to control closely its costs and productive
capacities.
The assembly line is described as the continuous
type of operation. A uniform flow exists within a
physically contiguous area. Although paperwork is
less burdensome, the line is very sensitive to
disruption from breakdown.
The third or combination process calls for departments-to be laid out in an operational sequence
on the basis of product specialization. As a result,
a single direction of flow exists from one department to another.
TYPES OF PLANNING
Orders are separated into "make" or "buy" items.
To-buy material falls in the domain of the purchasing department. To-make orders are scheduled
into the fabrication shops and the assembly line.
These may be further categorized as make-to-stock
or make-to-order. Finished stock orders are directed to the warehouse as standard or stock items.
They may also become slightly modified by the
addition of certain options or features. Make-toorder material is custom-built or custom-assembled
and bears the earmark of an individual customer's
requirements.
/
Examples of the kinds, of fabrication and assembly
companies that fit the general environment just described appear as in Figure 1.
1
Instruments,
motors, generators,
electric lamps, lighting fixtures,
storage batteries,
radio, TV, tubes, etc.
Engines, turbines,
machine tools,
photographic equip.,
machinery and parts,
ball and roller
bearings, etc.
Prefab structures,
household and
office furniture, etc.
Refrigerators,
sewing machines,
electrical housewares,
fans, etc.
Fabrication and
Assembly
Highways and streets, dams,
bridges, tunnels, subways,
irrigation projects, etc.
Watches, clocks,
jewelry, silverware,
toys, etc.
Autos, trucks, coaches, rail, ships,
farm, construction, industrial equipment,
parts 'accessories, etc.
Figure 1. General classification of fabrication and assembly companies
2
Ammunition, tanks,
small arms, etc.
THE MANUFACTURING ORGANIZATION-ITS PROBLEMS
The manufacturing organization is plagued with a
combination of problems that differentiates it from
all other industries. It is a costly business; its
product is complex; the company undergoes heavy
competition; and it operates in an ever changing
environment. Added to these external burdens are
its internal conflicts--decentralized planning and
excessive record data.
A COSTLY BUSINESS
Materials, machines, and manpower add up to
burgeoning costs. Under materials, the expectation
is for lower investment in inventory. Included in
the cost of inventory are handling and storage costs,
taxes, and obsolescence. The standard range for
inventory carrying costs is 20-25% of inventory
value. In the area of machines, management seeks
to utilize its equipment more properly. Under manpower, higher efficiency is sought. Investment is
spread between direct factory labor and indirect
clerical employees. The ratio of clerical workers
to production workers continues to rise. There is
no end in sight to the volume of clerical operations
performed in plants today. Even so, one out of
four of the productive workers themselves is handling paperwork. And still the overall problems
remain unsolved.
A COMPLEX AND CHANGING PRODUCT
Manufacturing companies produce and assemble a
complicated product. The manufacture of delicate
surgical instruments, intricate jet-powered engines,
machine tools, or TV tubes illustrates this complexity.
The product is also subject to considerable
change. It is constantly being redesigned because
of new technology or other reasons; different raw
material is used, or new features are added. Engineering changes must then be processed and
controlled to update bills of material.
A COMPETITIVE BUSINESS
Most companies usually operate under the tremendous pressure that is applied by competition. This
pressure tends to limit the amount of time available
for planning, execution of plans , or revision of plans.
A manufacturer by no means has unlimited time to
plan and execute. If he takes too long, his competitors will be there first and will capture the market.
The pressure of competition forces fast decisions
and faster action.
How does a company meet its competition? By
offering a good product at reasonable cost and by
keeping a customer satisfied. This can be accomplished by providing prompt answers to questions
concerning a multitude of matters, such as order
status, scheduled shipment date, etc.
A CHANGING ENVIRONMENT
The manufacturing environment expands and contracts with great frequency. A new product line
might require additional capital outlays for new
plant and warehouse sites, the hiring of more
skilled workers, or the relocation of new or old
machines. These are the growth pains. Lowered
demand might entail periods of contraction. Layoffs
are the end result. Management is therefore faced
with the need to plan and schedule material, men,
and machines for its changing environs.
DECENTRALIZED PRODUCTION PLANNIN'G
Departmental conflicts may persist in the organization when attempting to reconcile .the requirements
of sales, production, and the financial interests.
Departments tend to recognize only some of the
costs and information important to them. They
fail to recognize those outside their usual field of
activity. The sales department is well aware of
customer service and the need for substantial inventories. The production department is concerned
with utilization of resources--the operating levels
and costs of employment, overhead, and facilities.
Finance, on the other hand, watches over excessive
inventory and carrying costs, fearful of cash drains
and their effect on the profit picture.
Although these departments have varying needs of
the same data, they usually end up providing and
maintaining their own conventional record files.
However, production problems must be solved from
the viewpoint of the company as a whole.
AN IN'FORMATION EXPLOSION
The gathering and dissemination of information
usually is the manufacturing company's most difficult problem. Information is voluminous,
scattered, and often difficult to obtain. Five types
of dissemination exist: (1) replies to inquiries,
(2) standard routine reports, (3) exception printouts, (4) shop paper, and (5) special reports.
Managers (and their assistants) embroiled in
paper have no time for evaluation, planning, or
decision making. Their workday is fraught with
searching for information to handle the various
crises that arise in addition to the normal workflow. How can they possibly digest all of the
extraneous detail in a dynamic organization?
3
THE MANUFACTURING ORGANIZATION-ITS NEEDS
Experience has shown that manufacturing has need
for (1) a central information system, and (2) a
framework to facilitate mechanization.
A CENTRAL INFORMATION SYSTEM
The accumulation of information must be concentrated in a production information center where,
literally, one set of books is maintained. This
takes the form of records stored on computer disk
files, readily accessible to all interested parties
at a moment's inquiry. These records should be
designed to contain as much data as is deemed
important to management. Accurate records are
also an essential requirement of the system. Because only one set of archives will now be put to
use, it will be easier to maintain this accuracy.
A FRAMEWORK FOR MECHANIZATION
A start in the design of a manufacturing framework
was made by IBM in 1960 with its management operating system (MOS). * Its philosophy was built
around the ability to update records by random proceSSing (versus batch processing) and to inquire immediately, through a console typewriter, into the
status of any part number. The development of
IBM RAMAC
disk storage files made MOS an
immensely popular and effective approach.
However, it has been a difficult task to convert
and maintain the record information. As a result,
®
*See MOS for Manufacturing Industries (E20-B041)
4
implementation of additional MOS applications has
been generally postponed. Announcement of the
IBM bill of material processor program has served
to alleviate the problem by providing a technique to
organize and maintain the basic file records.
The production information and control system
now becomes another breakthrough, a detailed framework for integrating eight applications into a DATA
BASE composed of master, engineering, and open
order status records (see Figure 2).
A DATA BASE generally covers all the operational record information needed to handle a company's
business. It is stored on disk files and is therefore
directly online to a computer. Because of this,
summary and detail information can be accessed,
updated, and retrieved from multiple entry pOints.
Data is stored one way through reference to symbolic
record field labels and can be printed in various
output formats.
Each of the system records is linked in a particular manner. For example, a part number accessed
from the item master record may lead to a product
structure, a standard routing, an open purchase
order status, or to an open job order summary or
detail record. In the latter instance, the specific
work center in which the job is being performed may
even be pinpointed.
But a DATA BASE provides further advantages
that may not be too apparent,. such as the following:
• Reduces computer process time
• Reduces number of programs to be written
• Reduces sorting of records
• Encourages standardization of transaction
entries
• Encourages use of multiple entry points
Shop
Floor
Sales
Forecasting
Master
Records
Order Control
Order Control
Engineering
Indices
Purchasing
Requirements
Planning
Figure 2. The integrated system
5
CHAPTER 1: The System Overview
4. Manufacturing facilities
5. Purchasing
6. Finance
7 • Sales/distribution
DATA FLOW IN A MANUFACTURING
ORGANIZA TION
Figure 3 shows the interactions of these events
grouped within seven major areas:
1. Sales analysis
2. Engineering
3. Inventory control and production scheduling
While the DATA BASE is designed to process
segments of all these areas, it does not contain the
additional detail records needed to handle sales
analysis, finance, and sales/distribution.
Groupings:
Management
Decisions
..
Inventory Control
Research and
Development
• l\lanagement
Objectives
• Decision· Making
Purchased
Parts
Materials _
Supplies
Criteria
Manufactured
_ Assemblies
- Components
Parts
Manufacturing Facilities
Plant and
Equipment
Personnel
-
I
I
Tool
Design
Production
Product
Design
--
Maintenance
• Preventive
• Other
I
Engineering
•
•
•
•
Specifications
Drawings
Bills of Material
Catalogs
Sales Forecast
•
•
•
•
Product Line
l\larket/Territory
Advertising
Sales Promotion
Figure 3. Data flow in a manufacturing organization
6
Production
Scheduling
Machine
Loading
Schedule
Payroll
• Personnel Reports
• Cost and Labor
Distribution
Income - Expense
Purchasing
Accounts
Payable
-
-
fCash
fAccounts
Receivable
M
Credit
Rating
~
Sales/Distribution
Controller
I
Subcontractor
• Vendors
• Suppliers
H
Payment
~ Ir
I
Customer
Order
'--
1
Profits
r
f--
\
•
;
~
Government Reports
Stockholders
L.....---
Taxes
L--
Receiving
Other
Dividends
Shipment
Retained
Earnings
Sales Statistics
Market Analysis
~
7
THE PRODUCTION MODEL
PRIMARY FLOW
Figure 4 is a general pattern for a production model.
The flow leads from an initial input of customer
orders and statistical sales background data to the
final shipment of an order. This generalized model
is divided into a planning phase and an execution phase.
Planning
Planning begins with the preparation and projection
of order forecasts. Stock availability and on-order
status are screened across product inventory
records. But component family characteristics of
Requirements
Planning
1
~
Product Inventory
the product line must also be recognized. Product
structure or bills of material enter into these
decisions.
After a determination of net requirements, an
order quantity analysis takes place to ascertain lot
sizes and lead times for both purchased and manufactured items.
To-buy items are routed to the upper level of the
chart (shown as PURCHASING), where the items are
placed on a purchase requisition. At this point a
selection of vendor is made, price and delivery are
negotiated, and purchase order is released. Receipt
cards and/or a scheduled receipt document may be
prepared simultaneously with the purchase order and
B
• Select
U
• Negotiate
y
• Release
~
M
• Schedule
Product Structure
~
Tlm,p'rlOd/
A
• Load
K
• Level
E
• Release
Projections
I~<
~
.
Order
- - - - - - - P I A N N I N G - - - -
Figure 4. The production model -- primary flow
8
forwarded to the inspection -receiving area of the
warehouse. An open purchase order record is now
initiated for follow-up.
To-make items are routed to production planning
for assembly and fabrication. Some si~ilarity
exists in these two levels. An assembly order is
generated for the assembly area, a shop order for
the fabrication area. Material requisition and move
tickets accompany both documents. Three basic
types of records (standard routing, work center load,
and open job order) permit assembly and fabrication
to schedule, to load and to level the line or the shop,
and to release the order paperwork.
Execution
Execution begins at the purchasing level with the
need for order follow-up and vendor expediting. The
vendor ships material to the plant warehouse,
accompanying his shipment with packing lists and an
invoice.
Varied execution functions are performed at the
assembly and fabrication levels. Orders are dispatched, rescheduled, and expedited between work
centers. In the meantime, current production reporting updates work center and open job order
records.
Finished goods and components move from the
assembly and fabrication areas to the inspection and
reCeIVIng area. The final cycle in the production
model is a shipment authorization requesting the
warehouse to pack and ship to a branch warehouse
or to the customer.
PLANT WAREHOUSE
Finished Goods - Components - Parts - Materials
• Purchase
Follow-up
Branch
Warehouse
• Expediting
ASSEMBLY
I
I
I
I
I
I
I
I
I
I
I
I
• Dispatching
• Rescheduling
• Expediting
• Production Reporting
• Dispatching
00
Customers
• Rescheduling
• Expediting
• Production Reporting
FABRICATION
9
SYSTEM FLOW
The subsystems have been designed to fit the production model. Figure 5 may be considered to be
an overlay to coincide with the three-level information flowchart discussed in Figure 4.
Information flow begins from two directions. The
first path moves from engineering data control to
inventory control to requirements planning. The
mission of engineering data control is to organize
and maintain the basic records, that is, the item
master, product structure, standard routing, and
work center master. As already noted, it accomplishes this by means of the IBM System/360 Bill of
Material Processor program. This subsystem has
the added capability of retrieving information from
the DATA BASE. Six retrieval functions are performed -- three in assembly sequence, and three in
parts usage format.
An inventory control subsystem follows organization of the basic records. On-hand inventory, usage
history, and on-order fields are utilIzed in the item
ENGINEERING DATA CONTROL
Item Master
Organization
Product Structure
f
Standard Routing
} b' 0
Work Center Master
aslC records
INVENTORY
CONTROL
SALES
FORECASTING
REQUIREMENTS
PLANNING
Item Master
Item Master
Item Master
Product Structure
Open Job Order
- Order Summary
Figure 5.
10
master so that a stock status report can be generated. Thus, a major objective of this application
area is record maintenance and the updating of
inventory. With accessibility to such data, "when to
order" and "how much to order" decisions can be
made. Since the already-activated item master and
product structure records are now available to it, a
requirements planning subsystem is prepared to
work in conjunction with inventory control.
A second flow line moves from sales forecasting
to requirements planning. The sales forecasting
subsystem analyzes historical demand data, which
may be stored on the item master, to provide requirements planning with a gross finished product
forecast plan. To accomplish this, a forecast model
must be selected, which, in turn, arrives at new
trends and forecast error deviations.
The merger of requirements planning with inventory control now makes it possible to determine
net requirements, projected into time periods and
scheduled due dates. Product structure records are
used at this point to allow the breakdown of finished
The production model -- system flow and DATA BASE records
PURCHASING
Item Master
Purchase Master
Vendor Master
Open Purchase Order
product items into individual components. These are
similarly netted and projected into time periods. All
this results in planned orders, destined to each of
the three links -- purchasing, assembly, and fabrication.
Planned orders to purchasing follow the pattern
observed in the primary flow of Figure 4. Requisitions are prepared. Through the use of purchase
master and vendor master records, a vendor may be
selected and a purchase order with receiving cards
initiated. An open purchase ord,er record is created
so that purchase follow-up can become the next sequence of events.
Planned orders also flow into the assembly and
fabrication areas, where the capacity planning subsystem, or long-range scheduler, looks at an entire
planning horizon. Its purpose is to identify overloads far enough into the future to allow for both
facility and manpower planning. After order start
date calculations are performed (utilizing standard
routing records), consideration is given to plant
capacity. The work center master record is used
for this purpose. Available techniques are then used
to level the loads. A work center load report, projected by time period, is one of the key output
documents.
Operation scheduling accepts orders which have
gone through a releasing cycle from capacity planning
and schedules the work center within its short-range
time span. Dispatching sequences are prepared and
analyses made of the loads. Priority rules are set
and order completion dates determined. To the shortrange scheduling phase of this subsystem has been
added the control of tools. A tool master record is
designed for this function.
Shop floor control is the final subsystem in the
flowline. It prepares the shop packets and other
factory documentation. It also constructs the open
job order summary and operation detail records so
that progress of the work th~ough each center can be
reported. Feedback is one of its more important
functions so that the system can respond to change.
The three levels shown on the chart converge at the
plant warehouse to complete the information flow.
Branch
Warehouse
Plant
Warehouse
Customers
CAPACITY
PLANNING
OPERATION
SCHEDULING
SHOP FLOOR
CONTROL
Item Mastel"
Standard Routing
Work Center Master
Standard Routing
Work Center Master
Open Job Order
- Order Summary
- Operation Detail
Tool Master
Item Master
Product Structure
Standard Routing
Open Job Order
- Order Summary
- Operation Detail
11
Open Job
Order Control
Purchase
Order Control
Features of the ITEM MASTER
Master Records
Engineering Cross References
T
Y
p
Item
Number
Description
Unit of
Measure
Inventory Value
Classification
e
Order Policy Forecasting
Lead
Times
Unit
Costs
Unit
Prices
To
To
Product Structure Standard Routing
Current
Parts
Period
Usage History Inventory
Engineering
Indices
Purchasing On Order
Inventory
On Hand
(Qty. and Locations)
Gross
Requirements
Planned and
Released
Orders
Total
Qty.
Cross Ref. to Other Purchasing Records
Detail
Requisitions
Engineering
Drawing
Figure 6. Standardized records
Vendor
Master
Engr.
Change
Control
Purchase
Master
Cross Ref. to
Detail Purchase Orders
Production On Order
Total
Qty.
Cross Ref. to
Order Summary and
Operation retail
STANDARDIZ ED RECORDS
A set of standardized record layouts has been designed as a base to mechanize the application areas
leading toward the total integrated production information and control system. These records contain
fields that are considered necessary to enable the
majority of users to realize their production output
requirements. Each field is described in detail in
the appendix. Their respective lengths, however,
are left to the discretion of the user.
The record design is shown in Figure 6.
TRANSACTION ENTRIES
entries from a matrix checklist. In essence, a
transaction is input to a system, which alters
several fields of several records. This is best
illustrated in Figure 7 by citing the interactions of a
vendor receipt coded "RR" opposite "Receiving
Report". A quantity of units arrives at the inspection and receiving dock. Record updating takes
place. The on-hand inventory and current receipts
fields of the item master are increased; the total
quantity on-order purchasing field is decreased.
Meanwhile, if purchasing detail records are also
maintained, their fields are similarly updated.
The production information and control system also
suggests use of a standard group of transaction
Open Order Files
Item Master
Transaction
Code
On
Hand
Current
Receipts
Total
Quantity
On Order
Purchasing
Total
Quantity
On Order
Production
MOHTQ
MCSRE
MPUPQ
Available
Open
Purchase
Orders
(Detail)
PONUM
Open Job
Order
-Order
Summary
Open Job
Order Operation
Detail
MPRPQ
MAVAL
OSONO
aDORN
Work Order
WO
+
+
+
+
Work Order
Adjustment Down
WD
-
-
-
-
Purchase Order
PO
Receiving Report
(Vendor)
RR
+
+
Receipt (Interplant)
RC
+
+
-
-
Symbolic Labels
+
+
-
+
-
Figure 7. Sample transaction entries
13
MODULAR PROGRAM CONCEPTS
The production information and control system
.defines how modular programs and routines are
created so that they can be linked together into a
total production system.
One type of modularity is the linkage of application subsystems into a production information
system. The essential features of these subsystems
•
•
•
•
•
•
•
•
•
•
•
Lamr Reporting
Material Movement
Work in Process Feedback
Creation of Factory Paper
Machine Utilization
are shown in Figure 8; they are discussed at further
length in Chapter 2.
A second type of modularity utilizes the buildup of
individual routines within a subsystem. A number of
different variations might exist, for example, to
arrive at an order policy in an inventory control subsystem. A selection of one or more of these
• Model Selection
• Forecast Plans
• Evaluation and
Measurement
• Basic Records File
Organization
• Engineering Drawings
• Engineering Changes
• Prod. Struct. and Std.
Routing Records
Maintenance
Dispatching Sequence
Order Estimator
Load Summary by Work Center
Priority Rules
Queue Time Analysis
Tool Control
•
•
•
•
•
• Projected Work Cent~~
Load Report
• Planned Order Load
• Order Start Date
Calculations
• Load Leveling
• Requisition and P. o.
Preparation
• Purchase Order Follow-up
• Purchase Evaluation
• Vendor Evaluation
and Selection
Figure 8. Features of the subsystems
14
• Fin. Prod. Requirements
Gross to Net
• Component Requirements
Gross to Net
• Special Features:
- Lot Sizing
- Offset Requirements
- Net Change
- Pegged Requirements
Stock Status Report
ABC Inventory Analysis
Order Policy
Inv. Maint; and Update
Physical Inventory
A DEVELOPED FRAMEWORK
variations would become part of a final program
(Figure 9a).
Extensive DATA BASE
Order Policy
I
I
Final Program
I
II
Discrete
Quantity
Order Point/
Order Qty.
Order Point/
Order-Up-To
Level
Fixed
EOQ
Order Point/
Order-Up-To
Level
Computed
EOQ
•
(.(
l
((
Figure 9a.
In the example of requirements planning, (Figure
9b), all five routines might be used.
Requirements Planning
I
u
I
Gross/Net
Time
Series
Order
(Lot)
Size
Offset
Requirements
Pegged
Requirements
Net
Change
I
I
I
I
I
(,
()
I
Final Program
I
Gross/Net
Time
Series
+ four/others
•
Figure 9b.
A third type of modularity is the linkage of the
presently available IBM programming products.
These consist of the System/360 Bill of Material
Processor program, which organizes the following
basic records: the item master, product structure,
standard routing, and work center master. Another
set of programs is the System/360 Disk Operating
System, which maintains continuity between jobs by
scheduling and queuing I/O operations on the
System/360, and which checks and handles both
error conditions and I/O interruptions.
BENEFITS OF THE SYSTEM
A PLAN FOR GROWTH
A plan can be developed to begin implementing each
of the application areas leading to the integrated
production system. The system can grow as the
user grows. And the user will obtain tangible
results long before the total system is installed.
STANDARDIZATION
Information is common to all -- it is known and
called by one description. One set of records makes
this possible. The manufacturing company finds it
easier to plan for standard procedural systems.
The production information and control system is an
excellent tool to determine the data requirements of
each subsystem. It defines the input and the purpose
of each record field .
The record base has two important features -accessibility and accuracy. Information is accessible through inquiry to multiple points; detail is
available through chaining to all related records.
No longer is it necessary to spend hours or days
searching file drawers or ledger cards. Also,
information is more accurate; it is updated in only
one place. Standard transaction entries processed
within each subsystem assure complete record
maintenance.
Method for Improved File Organization
File organization programs are designed to use
minimum rec ord storage space. At the same time,
updating of record fields is speeded.
Modular Program Design
The bill of material processor effiCiently organizes
the basic records. The disk operating system maintains continuity of programs. There is minimum
system change; new techniques can be incorporated
without the necessity for changing the entire system.
A CLEARINGHOUSE FOR PRODUCTION
INFORMA TION
All production information is now directed into a
single channel. Level s of operating and management
personnel are made more aware.
CLOSER CONTROL OVER MATERIALS,
MACIDNES, MANPOWER, AND MONEY
• The key to cost reduction. Costs can be more
closely controlled, with better surveillance
over overtime hours, inventory, and machines.
• The key to efficient planning.
• More time available to react to changes.
• Less waste, reduced information costs, more
profits.
15
CHAPTER 2: The Application Subsystems
GENERAL DESCRIPTION
Each application subsystem is discussed in this
chapter as outlined below:
• Introduction
• Obj ectives
• Subsystem flow
• Module description
• Summary
The subsystems are des cribed in the following
sequence:
• Engineering data control
• Inventory control
• Sales forecasting
• Requirements planning
• Capacity planning
• Operation scheduling
• Shop floor control
• Purchasing
This sequence was selected because the subsystems are closely related to and dependent upon
particular records within the DATA BASE. Figure
10 indicates that four of the subsystems (engineering data control, inventory control, sales forecasting, and requirements planning) use information
16
provided in the item master, product structure,
standard routing, and work center master files. The
figure also shows that the techniques for creating
and maintaining these files are provided by the mM
System/360 Bill of Material Processor program.
Many techniques of the bill of material are summarized in the engineering data control section.
A comprehensive subsystem summary chart
appears at the end of each subsystem writeup summarizing the module names, input, processing
routines, DATA BASE record fields applicable to
each module, and nature of the output. For added
convenience, similar information is also included
at the end of each module description.
Additional files are required for the other four
subsystems -- capacity planning, operation scheduling, shop floor control, and purchasing. When
implemented, these files complete the DATA BASE.
*
*See IBM System/360 Bill of Material Processor
-Application Description (H20-0197)
Basic Record
Development
I/O Format
Designs
Transaction
Entries
Bill of
Material
Processor
Program
Engineering
Data Control
Inventory
Control
Sales
Forecasting
Requirements
Planning
• Order Summary
• Operation Detail
Production
Orders
Purchase
Orders
Capacity
Planning
Purchasing
Operation
Scheduling
Shop Floor
Control
Figure 10. System flow and interaction
17
ENGINEERING DATA CONTROL
status of the change, and who is responsible?
Where is this item used? What is the effectivity
date? Will the sequence of effectivity affect. this
change? Is the current inventory usable, reworkable, or scrap, or should it be stocked out on
specific usages? Are there any changes in routing
and the standards? What are the tool requirements?
When is the best time for this change to become
effective?
Accurate information is of prime importance for
judgments regarding these questions and for use by
other functional areas within a company.
INTRODUCTION
The manufacturing organization must be able to
maintain and retrieve accurate, up-to-date engineering information. This usually involves large
volumes of records that describe the structure or
makeup of its products and the production specifications for fabrication and assembly. These
records are vital in the planning and execution of
the manufacturing process.
Within a typical manufacturing organization this
information is resequenced, reformatted, or summarized to suit individual requirements of various
departments. Frequently, separate files are used.
This requires duplication of file maintenance effort
and almost inherently involves working with data
that contains differences and inaccuracies.
One of the more essential mainte~ance functions
is engineering change. The engineering design
function makes changes to a product by altering
individual assemblies and subassemblies that constitute a finished unit, and/or the production
specifications for assembly or fabrication. These
changes must be reflected in the records that
describe the products, assemblies, and the routing
for items.
In addition to the increased recordkeeping resulting from engineering c.hanges, many questions must
be answered before the decision to make the changes.
These include: What parts should be changed, and
how? . Are any of these parts currently being
changed for other purposes? If so, what is the
OBJECTIVES
The major objective of this subsystem is to provide
for (1) maintenance of timely data and (2) retrieval
of information from the files.
The file load and maintenance functions for four
of the records described in this manual are provided
by the mM bill of material processor.
The
records are:
• Item master
• Product structure
• Standard routing
• Work center master
The relationship among these records is illustrated
in.Figure 11.
*
*See Bill of Material Processor - a Maintenance and
Retrieval System (E20-0114)
Item Master
r - - - - - - - - - - - - -- - - - - - - - - - - - - - - - I
- - - - - - - - - - - --- -- -
r-------r-~~---r--~~--~----_
--,
I
I
I
I
I
I
I
I
I
I
i
_--1
Work Center Master
Figure 11. File relationship- - bill of material processor
18
The item master contains the disk addresses of
where the product structure (first component address and first where-used address) and the standard routing have been stored. Product structure
records indicate the next records within the product
structure file that are associated with the item for
both the bill of material and the where-used lists.
Note that in the example (Figure 11), part 2 is a
component for assemblies A and B (the second
product structure record for A, and the third record
for B). The same product structure records provide the where-used information. The where-used
cha:in for item 2 can be traced for all uses of this
part (in this example, where-used consists of
assemblies A and B).
The address of the first operation of the standard
routing file is also recorded in the item master file.
Each operation record has the address of the next
operation record in the standard routing file peculiar
to the item. Each record in the standard routing
file can also be "chained" to the master record for
the work center in which it usually is performed.
This is accomplished by placing the address of the
first operation for a work center on the work center
master, and the address of each following record on
the individual records within the standard routing file.
Product structure data that has been organized
and maintained as described, forms the basis for
retrieving information in many ways. The disk file
effectively contains product structure records in two
sequences: (1) assembly sequence (that is, grouping
the components of an assembly) and (2) where-used
sequence (that is, grouping direct usages of a part
number on higher-level assemblies). Both of these
sequences are used in data retrieval for preparing
reference documents and for applications that
require product structure data as a framework for
processing.
Using basic retrieval programs, the computer
can produce a variety of formats from the information in the master files. Figure 12 illustrates the
most common basic formats and some of their uses.
Product specifications (standard routing file) are
stored within the subsystem and are used in several
functions (for example, order release, capacity
planning). A routing sheet and labor reporting cards
are illustrated in the shop floor control section.
Another Significant aspect of the bill of material
processor file technique, when expanded to include
other records (such as the open job order file, discussed under "Operation Scheduling" and "Shop Floor
Control, " is the ability of production management to
analyze, before establishing an effective date or
phase-out quantity, the status of a part or assembly
subject to engineering change. A request for information regarding a particular assembly can
provide the complete on-hand, on-order status for
the assembly and its components, as well as the
status of all assemblies on which it is used. The
item master record points to a series of open shop
orders that furnish the current order location, hours
to completion, and the material, labor, and burden
costs to date. Figure 13 illustrates the data and
the source within the system for an engineering
change trial fit. *
*See Management Operating System - Engineering
Detail (E20-0028)
19
Assembly Sequence Format
Parts Usage Format
Part Number-44601
Part Description-Bushing
Single level bill of material
Shows all components and quantities per
required to make an assembly.
Applications
• Assembly orders, requisitions
• Level by level net requirements planning
Next assembly where-used
Indicates part number usage on next
higher level assemblies.
Applications
.Component allocation
• Engineering change analysis
Part Number-44601
Part Description-Bushing
Collar
Drive Shaft
Pump Connector
Stand Pipe
Adaptor'
Pump Connector
Collar
Drive Shaft
Indented parts list
Traces product structure downward
through all assembly levels of a product
or major assembly.
Applications
• Service parts catalogs
• Product assembly planning
Indented where-used
1
2
2
1
1
1
1
1
Traces all direct and indirect part number usages upward through all assembly
levels.
Applications
• Value analysis-where-used trace
• Contract specifications
Assembly Description
Pump Connector
Pump Connector
Pump Connector
Pump Connector
Stand Pipe
Stand Pipe
Stand i e
Summarized part usage
Summarized parts list
Each component is listed once with
total quantity used on a given product or
major assembly.
Applications
.Gross material requirements
• Product costing
Figure 12. Product structure formats
20
3
3
1
5
1
1
1
Shows the total quantity ol part usage per
on all end products.
Applications-End Products
• Cost change effect 011 product cost
(actual or anticipated)
.Component shortage impact on product
schedules
ITEM MASTER FILE
Item
Number
Description
U
1M
Quantity
On
Hand
Lead
Time
Quantity
On
Order
Requirements
By Period
Allocated
Quantity
Released
Orders
by Period
Planned
Orders
by Period
INVENTORY DATA
SHOP ORDER STATUS
-------
1--- -----
Engineering
Change Control
Information
-----.
~
h
OPEN JOB ORDER FILE
Order
Number
Figure 13.
Item
Number
Original
Order
Quantity
Number
of
Operations
Number of
Completed
Operations
Current
Work
Center
Actual
Start
Date
Due
Date
Estimated
Completion
Date
Material
Cost
Labor
Cost
Engineering change trial fit
SUBSYSTEM FLOW
Engineering data control is designed around two
modules: (1) file load and maintenance and (2)
retrieval. Figure 14 illustrates the relationship and
the information flow. Input to the file load and
maintenance module consists of the data to construct
(and later, when necessary, to change) the item
master, product structure, standard routing, and
work center master files.
Output from this module includes audit lists that
serve two functions. First, they provide a record
of information that may be used in reconstruction of
certain records. Second, they serve as everyday
working documents. The latter case is especially
true of the listing available from the organization
and maintenance of the product structure file.
This listing should contain the entire bill of
material for an assembly with a notation of the
maintenance performed. It can be used as a master bill of materials and also as a check to see that
the information in the file has been updated correctly.
The retrieval module uses the files to locate and
assemble data for requests. Input consists of
identifying information that specifies the type of
request and the records to be used.
Output from the retrieval module includes parts
usage and assembly sequence information. This can
be used for printing reports (for example, singlelevel bill of material, indented parts lists) or other
functions, such as requirements planning.
Another report illustrated on the chart and
related to engineering is the trial fit. This report
combines inventory information (item master) and
production order status (open job order file). The
open job order file is included in the diagram to
illustrate that information from any file can be used
by the retrieval module. The creation of the open job
order file is discussed under "Shop Floor Control."
21
Data for
File
Creation
Changes
• Product Structure
• Routings
Module 1
Audit
Lists
File Load and
Maintenance
(Bill of Material
Processor)
Item
Master
Product
Structure
Work
Center
Master
Standard
Routing
Retrieval
Requests
Open Job
Order
Summary
Retrieval
Programs
Engineering
Change Trial Fit
Assembly
Sequence
Figure 14. Engineering data control subsystem flow
MODULE DESCRIPTION
File Load and Maintenance
File load and maintenance routines are provided
by the bill of material processor. * While these
*See IDM System/360 Bill of Material ProcessorApplication Description (H20-0197) and
1440/1311 Bill of Material Processor. 1440ME-02X - Application Description (H20-0079)
22
routines are discussed in detail in the manuals that
describe this program, some of the main features
are listed below:
1. The bill of material processor uses direct
access capability to make the same product structure information available in either of the following:
a. Assembly or bill of material sequence,
thereby linking the components of an
assembly in any desired sequence. The
assembly component sequence is specified by the user; the product structure
records are initially loaded and later
maintained in this sequence through the
use of direct access file chaining techniques.
b. Where-used sequence, thereby associating item number usages on higher-level
assemblies. This eliminates the need
for maintaining a separate file to indicate
where each part is used or for periodically sorting the bill of material file into
where-used sequence.
2. The bill of material processor uses the same
direct access capability to make the standard routing records available in either of the following:
a. Routing sequence, which specifies the
logical sequence of operations during the
manufacturing process.
b. Work center where-used sequence, which
enables the customer to retrieve information'relative to all work performed by
any work center.
3. The structure of an assembly is recorded
only once regardless of the number of times it is
used on higher-level assemblies or end products.
The structure records are loaded and maintained in
the form of a series of Single-level assemblies.
4. Low-level coding is maintained automatically.
This code indicates the lowest level usage of the
item with respect to all assemblies of :which it is a
component.
The bill of material proces sor programs have
been widely accepted by manufacturing companies.
In addition, the programs provide the framework for
entry to a wide variety of applications -- requirements planiling, capacity planning, and operation
scheduling.
The ~aintenance section keeps data current.
Transactions describing the changes must be made
available to the system. Five types of transactions
are described below.
Item Structure Change
\
If the change alters the product structure by adding
or removing assembly components, or alters the
quantity used in the assembly, this information is
reflected in the product structure file. Maintenance
routines are provided that accomplish these changes
to the file, and that update the chains for whereused and product structure. Automatic maintenance
of low-level codes is also provided.
New Item Specifications
In instances where the engineering change requires
a new item to be either purchased or fabricated, it
is necessary that the system be furnished with the
new item data. If the item is an assembly, the
system accepts the relevant product structure data,
and maintains it in usable form.
Delete Item Notice
This is the inverse of adding items to the file,
namely, the determination that an item is obsolete
and no longer required. This determination should
be made periodically, so. that file sizes, reorganization' etc., do not become unwieldy and timeconsuming. The system is informed of the item to
be deleted, at which time the master record and the
structure record are updated. A record containing
the data, reason, and authorization for deletion is
created on a deleted items file.
Production Specification Changes
Routing information stored in the standard routing
file is changed to reflect the latest engineering level.
The standard routing for an item is located from the
information on the item master record.
Engineering Change Effectivity
Some engineering changes are considered mandatory
and are effected almost immediately. Others are ,
made effective contingent on in-process and stock
inventory, model changeover, specific end item
serial numbers, etc. The criteria for making the
change effective are known as the effectivity. Varying effectivities create a condition where the
23
engineering department has released bills of material showing the latest version, but the manufacturing department is still producing the product in the
original or former configuration. Figure 15a
displays the original assembly B. Figure 15 shows,
part number 1 removed and part number 4 added to
assembly B. There may be a requirement to
retrieve either the original assembly or the new
version at some time: (1) between engineering
change release time and manufacturing effectivity,
or (2) after manufacturing effectivity (for cost,
repair, or other purposes). This can be accomplished with a minimum of recordkeeping by
maintaining component records that note the
differences between the two versions of the assembly
(Figure 15). In the example, the computer program
can callout assembly B, consisting of its original
components (C, 1, and 2), or its revised components (C, 2, and 4), by adding effectivity to each
component record.
a. Original assembly
B
I
I
C
I
2
1
b. Changing the assembly structure
B
I
C
*
B
~
I
I ------1 I
2
1
4
2
+4 C
c. Recording original and revised assembly components
with a single assembly that incorporates effectivity
B
I
C
I
-1
I
I
2
Effective
xxxxx
I
+4
Effective
xxxxx
Figure 15. Recognizing original and revised assembly components
SUBSYSTEM' Engineering Data Control
DATA BASE
MODULE NAME
File Load &
Maintenance
(B/M Processor)
INPUT
• Data for:
Item Master
Product Structure
Standard Routing
Work Center
Master
• Changes to Files
PROCESSING
ROUTINES
• Original File
Load
RECORD
TITLE
Item
Master
• Maintenance
Routines
Product
Structure
24
RECORD FIELDS
OUTPUT
Item Number
Address of First Assembly Component
Address of First Assembly Where- Used
Record Count
Low- Level Code
Address of First Routing Operation
Run Activity Control No •
Overflow Chain Address for Sequential
Additions
• Engineering Drawing
Number
Date
• Last Previous Engineering Change
Number
Reason for Change
Disposition
Effectivity Date
• Current Engineering Change
Number
Reason for Change
Disposition
Effectivity Qty.
Effectivity Date
• Address of Component Item
Master Record
• Compare Ponion of Item Number
• Address of Next Assembly Component
• Address of Parent Item No.
Master Record
• Compare Portion of Parent Item Number
• Address of Next
Where-Used This Item
• Address of Previous
Where- Used This Item
• Quantity Per Assembly
• Current Engr. Change No.
Audit Lists
Part No. Master
Bills of Material
Standard Routing
Work Center Master
•
•
•
•
•
•
•
•
SUBSYSTEM· Engineering Data Control (Cont)
DATA BASE
MODULE NAME
PROCESSING
ROUTINES
INPUT
RECORD
TITLE
Standard
Ro.uting
I
i
I
Work
Center
Master
Retrieval Programs *
The file organization technique provides a large
variety of retrievals. The item master file is used
in conjunction with the product structure file to
obtain assembly sequence and parts usage information. For assembly sequence, the item master
record has the address of the product structure
information for each assembly. These records are
accessed using sequence chains, which are created
during initial loading, and which link all the components of an assembly together. The item master
records for the component parts are accessed to
obtain information for each component of the assembly. This is easily accomplished as each product
structure record has the address of where the
component's item master record is stored.
The same product structure records provide
parts usage information. Each item master record
has the location of a product structure record wherein the part is used in a higher-level assembly. The
product structure records have a second set of
chains created during initial loading that link all
direct usages for· a part number together. To illustrate the type of processing that is performed,
several retrieval functions are discussed.
*See System/360 Product Structure Retrieval
Program Application Description (H20-0329)
RECORD FIELDS
OUTPUT
•
•
•
•
•
•
•
•
•
Item Master Adqress
Compare Portion of Item No.
Routing Sequence No.
Address of Next Sequential Operation
Address of Previous Operation
Work Center Identification
Address of Work Center Master Record
Work-Center Where-Used Chain - Next
Work-Center Where-Used Chain Previous
• Current Engr. Change No.
Work Center Identification
• Address of First Operation in WhereUsed Chain
• Work Center Where-Used Chain
Record Count
• Overflow Chain Address for Sequential
Additions
The single-level bill of material is discussed for
assembly sequence. Assume that the files have
been loaded and a request relating to assembly A
has been entered into the system. Assembly A
(illustrated in Figure 11) consists of parts 1, 2, and
4. The item master for assembly A is read to
obtain the description and other information for
printing, in addition to the address of the product
structure fUe. As each product structure record
is processed, the address of the item master record
of the component is used to obtain the data peculiar
to each part. The sequence of processing is (1)
read the product structure record, (2) use it to
locate the component item master record, (3) extract the information and print, and (4) if there is
another component, repeat the sequence.
Parts usage retrteval is discussed for next
assembly where-used. In Figure 11, part number 2
was used on assemblies A and B. When a request
of this type is processed, the item master record
for part 2 is located. This record has the address
of the first of a series of .product structure records
where part 2 has been identified as a component of
a higher-level assembly. In the example, the address locates the product structure for assembly
B, which, in turn, has the address of the product
structure record of assembly A, part 2. Each product structure record has the address of the item
master record for the assembly; therefore, the
descriptive information can be located and printed.
The sequence of processing is (1) read the
product structure for where-used, (2) use it to
25
The production on -order quantity is backed up
by one or more records in the open job order file.
The location of the first record is determined from
the item master record. If more than one order
exists for a part, each later record is located by
the reference in the open job order file. As each
open -order record is read, the data is extracted for
reports.
locate the assembly item master record, (3) extract
the information and print, and (4) if there is another
usage indicated, repeat these steps.
The last retrieval to be discussed is combining
inventory information with production order status.
The request would identify the item number( s) that
is used to locate the master record. Information
stored on this record is assembled for output.
DATA BASE
MODULE
NAME
INPUT
PROCESSING
ROUTINES
Retrieval
Programs
Request
Identification
Retrieval
Programs
RECORD FIELDS
RECORD TITLE
Open Job
Order Summary
In addition to the
records above:
• Item Master
• Product Structure
• Standard Routing
• Work Center Master
• Item Number
• Order Number
• Quantity CompletePrevious Operation
• Scheduled Due Date
• Status Code
• Current Operation
Work Center
Quantity to Complete
Quantity Completed
• Current Engineering
Change No.
OUTPUT
•
•
•
•
•
•
•
Single Level Bill of Material
Indented Parts List
Summarized Parts List
Next Assembly Where Used
Indented Where Used
Summarized Parts Usage
Engineering Change Trial Fit
Inventory Information
Order Status
Assembly
Part
SUBSYSTEM SUMMARY
A summary chart for the engineering data control
subsystem appears as Figure 16.
SUBSYSTEM: Engineering Data Control
DATA BASE
MODULE
NAME
INPUT
File Load &
Maintenance
(B/M Processor)
Figure 16.
26
• Data for:
Item Master
Product Structure
Standard Routing
Work Center
Master
• Changes to Files
PROCESSING
ROUTINES
• Original
File Load
• Maintenance
Routines
RECORD
TITLE
Item Master
RECORD FIELDS
•
•
•
•
•
•
•
•
Item Number
Address of First Assembly Component
Address of First Assembly Where- Used
Record Count
Low-Level Code
Address of First Routing Operation
Run Activity Control No.
Overflow Chain Address for Sequential
Additions
• Engineering Drawing
Number
Date
• Last Previous Engineering Change
Number
Reason for Change
Disposition
Effectivity Date
Engineering data control subsystem summary chart (Sheet 1)
OUTPUT
Audit Lists
Part No. Master
Bills of Mate'rial
Standard Routing
Work Center Master
SUBSYSTEM: Engineering Data Control (Cont)
DATA BASE
MODULE NAME
INPUT
PROCESSING
ROUTINES
RECORD
TITLE
RECORD FIELDS
OUTPUT
•
Product
Structure
Current Engineering Change
Nwnber
Reason for Change
Disposition
Effectivity Qty.
Effectivity Date
Address of Component Item
Master Record
Compare Portion of Item Number
Address of Next Assembly Component
Address of Parent Item No.
Master Record
Compare Portion of Parent Item Number
• Address of Next
Where-Used This Item
Address of Previous
Where-Used This Item
Quantity Per Assembly
Current Engr. Change No.
Item Master Address
Compare Portion of Item No.
Routing Sequence No.
Address of Next Sequential Operation
Address of Previous Operation
Work Center Identification
Address of Work Center Master Record
Work-Center Where-Used Chain - Next
Work-Center Where-Used Chain Previous
Current Engr. Change No.
•
•
•
•
•
Standard
Routing
•
•
•
•
•
•
•
•
•
•
•
•
•
Work
Center
Master
•
•
•
Retrieval
Programs
Request
Identification
Retrieval
Programs
Open Job
Order
Summary
In addition
to the records above:
Item
Master
Product
Structure
Standard
Routing
Work
Center
Master
•
•
•
•
•
•
•
•
•
•
•
Work Center Identification
Address of First Operation in Where-Used
Chain
Work Center Where-Used Chain Record
Count
Overflow Chain Address for Sequential
Additions
Item Number
Order Number
Quantity Complete-Previous Operation
Scheduled Due Date
Status Code
Current Operation
Work Center
Quantity to Complete
Quantity Completed
Current Engineering Change No.
•
•
•
•
•
•
•
Single Level Bill
of Material
Indented Parts
List
Summarized
Pans List
Next Assembly
Where Used
Indented Where
Used
Swnmarized
Parts Usage
Engineering
Change Trial Fit
Inventory
Information
Order Status
Assembly
Pirt
Figure 16. Engineering data control subsystem summary chart (Sheet 2)
27
INVENTORY CONTROL
INTRODUCTION
OBJECTIVES
An inventory control system must establish the
optimum levels at which inventory should be maintained. * This goal is not easily achieved. In the
manufacturing company, conflicting interests must
be satisfied. The sales department is interested in
keeping customer service at the highest possible
level to meet quotas and stave off competition; this
tends to raise inventory levels. The financial department is concerned with working capital and,
because of this; attempts to keep inventory levels
low. If inventory levels can be kept low, the working capital can be kept available for use. The production department strives to level production to
stabilize employment and keep operating efficiency
high; it thereby creates inventory at times and uses
it up at other times. The inventory policy that is
established is a key factor in determining how well
a company will operate. For this reason, the
inventory control subsystem holds a vital spot in the
operation of an effective production information and
control system.
The inventory control subsystem has the dual function of planning and execution. The system must
determine:
1. When to order
2. How much to order
The planning phase of the inventory control subsystem must provide the operating rules for the
execution phase to carry out.
Inventory in manufacturing companies may be
broken down into categories based on usage and
value. The method of categorizing inventory is
known as the ABC control method. An inventory
control subsystem must have the ability to perform
the analyses necessary to break inventory into
categories. On the basis of these categories, the
emphasis that must be placed on control of the inventory for each item can be established. The
varying degree of control of inventory occurs as a
result of the order point, order quantity, and safety
stock level, which are established from the categorization that results from inventory analysis. This
analysis may be carried out on the basis of various
criteria.
Figure 17 shows two methods of analysis;
the first ranks items by the investment in inventory
they represent, the second by return on investment.
*See Management Operating System - Forecasting,
Materials Planning and Inventory ManagementGeneral (E20-0031)
\
ITEM MASTER RECORD
Item
Number
Description
)
Unit
Price
Cost Data
Standard Cost
Material
Labor
Demand
(n periods)
Burden
Analysis by Net Return
Analysis by Inventory Investment
Unit Cost
Annual Usage
Yearly Investment
Figure 17. Inventory analysis
28
)
Item Usage History
Item Number
Unit Cost
Unit Price
Annual Usage
Yearly Investment
Yearly Return
Net Return
I
I
\
At the completion of an analysis of inventory, a
determination of the order policy for each inventory
item is made. It is at this point that safety stock
level, order point, and order quantity must be determined. It is the function of the safety stock
maintained for an item to ensure that the possibility
of stockouts is kept to a minimum. * This safety
level must be a function of several factors. A good
inventory control subsystem must have the ability to
determine safety stock in one of two ways. First,
it must be able to take the average usage of an item
and, with a factor expressing safety stock in terms
of time, determine the quantity that should be maintained. The time factor must be determined by the
implementer and be supplied to the system. Second,
if a forecasting method (such as exponential smoothing) is used, safety stock can be determined as a
function of the variation in the demand for the item
over the replenishment lead time.
Once the safety stock level is known, the next step
in inventory control is to compute the order point.
Order point is simply the inventory level at which
an order should be initiated to ensure against an
*See IMPACT - Inventory Management and Control
Techniques (E20-8105)
(
\
out-of-stock condition. Order point is determined
from the replenishment lead time for the item, the
interval at which inventory and the safety stock
level are reviewed.
Having determined when to order, the quantity to
be ordered must now be ascertained.
On the basis of either the history of usage or the
forecast of usage of an item, an order quantity can
be determined that reduces total cost by balancing
order cost and inventory carrying cost. This quantity is commonly called the EOQ (economic order
quantity). The EOQ can be determined in several
ways to best reflect management's views concerning
inventory. Provision should be made for the EOQ
computations to be made in various ways in an
inventory control subsystem.
The execution phase must accept the daily transactions that affect inventory, such as stock issues,
receipts, transfers, and adjustments. It must update inventory records and furnish reports concerning error conditions and inventory status. (Figure
18 shows some typical stock status reports that can
be prepared by an inventory control subsystem.) In
addition, the phase must issue order notices for
items that fall below inventory order point; also,
the phase has the task of initiating and recording
phySical inventory figures.
ITEM MASTER RECORD
Item
Number
Description
On-Hand
Inventory
Allocated
Quantity
Projected
Requirements
(n periods)
/
Planned
Orders
(n periods)
Scheduled
Receipts
(n periods)
Issues
\
Stock Status
(Time Series)
Stock Status
(Summarized)
Description
On Hand Inventory
Receipts
Issues
On Order (Total)
Requirements (Total)
Allocated
Available
Item Number
Description
On Hand Inventory
Receipts (n periods)
Issues
On Order (n periods)
Requirements (n periods)
Allocated
Available
Figure 18. Stock status reporting
29
SUBSYSTEM FLOW
The planning phase of the inventory control subsystem accepts information concerning the usage of
each item and the degree to which protection against
stockout is required (see Figure 19). The system
operates on this data to produce reports that analyze
inventory, inform management on order quantities,
and project the safety stock level for each item. At
the same time it inserts this information in the ap-
propriate place in the item master record.
In the execution phase, the daily transactions that
affect inventory are processed, and the file is updated. In addition, the system prepares a register
of these transactions. The inventory control
subsystem also reports on stock status, physical
inventory, and detected errors. This phase also
pinpoints items that have fallen below the inventory
order point and should therefore be reordered.
PlaIUling
Module 1
l'vlodule 2
ABC
Order
Policy
Inventory
Analysis
Item
Master
Inventory
Analysis
Reports
Order
Quantities
Execution
Module 3
Inventory
Maintenance
and Update
Stock
Status
Order Notice
Figure 19. Inventory control subsystem flow'
30
Module 4
Physical
Inventory
Physical
Inventory
Notices
MODULE DESCRIPTIONS
annual investment.
might show:
ABC Inventory Analysis
A typical breakdown of inventory
Class Annual Investment
Inventory analysis is generally one of the first steps
toward organizing an inventory control system. *
It helps answer the questions "What do we control?"
and "How do we control it ?" Items are classified
into groupings, which are determined by the implementer. These groupings are generally based on
a measure of dollar value and annual usage. The
investment in inventory that an item represents is
determined by the cost of producing or buying that
item and the annual quantity produced or used. If
these factors are extended for each item in an
inventory, the items can be ranked in sequence by
A
B
C
65
%
20 %
15 %
Percentage of Items
15 %
35 %
50 %
An ABC grouping of this nature simplifies the
method of order quantity determination, since the
same method can be used for all items in a group.
The percentages shown above indicate one way in
which inventory can be classified. Breakpoints
could be used with similar benefit, and more categories could also be decided on. It is not unusual to
break inventory into six or eight classes.
DATA BASE
MODULE NAME
A- B-C Inventory
Analysis
INPUT
• Parameter
Specifications
PROCESSING ROUTINES
A - B- C Analysis
Order Policy
After inventory is classified and decisions are made
about the order policy to be used to control each.
category, the next step is to determine the order
point and order quantity for each item. The first
factor to be determined for an item is the "safety
stock". This safety stock is provided to ensure
against the possibility of being out of stock at any
point during the reorder cycle for an item. The
safety stock can be determined in several ways. If
this can be expressed in terms of time (for example,
two weeks' supply or a percentage of lead time), the
system can compute the quantity that might reasonably be used during this time. This quantity would
represent the safety stock. Another method of computing safety stock is on the basis of statistics. This
method is based on the average deviation of the
actual usage from an average or forecast of usage.
This deviation is called the mean absolute deviation
*See System/360 Inventory Control (H20-0471)
RECORD
TITLE
Item Master
RECORD FIELDS
•
•
•
•
Item Number
Parts Usage History
Unit Cost
Unit Price
OUTPUT
• Analysis by Investment
• Analysis by Net Return
(MAD) . Also on the basis of statistics the degree
of safety can be expressed as a multiple of this
deviation, which is called the "safety factor". A
"percentage of service" can be calculated that will
indicate the degree of safety against stockouts that
can be expected. Service can be converted to units
by multiplying the MAD by a safety factor. Providing for safety stock equal to the value of MAD
(that is, a safety factor of one) means that 78% of
the time there is protection against stockouts.
Doubling the MAD (safety factor of two) increases
the stockout protection to 94%. Various levels of
safety factor and the related percentage of
service are shown below:
% of Order Cycles
with No Stockout
Safety Factor
50.00'
0.00
1. 00
78.81
1. 25
84.13
2.0
94.52
97.72
2.5
3.0
99.18
3.75
99.87
Safety factors for service levels using MAD
(service based on frequency of stockout)
31
A company using the inventory control subsystem
would be required to supply the safety factor or the
service level desired, and the safety stock level
would be computed.
Having computed the safety stock required, the
system determines the order point by computing the
average usage during the replenishment lead time
and adding this to the safety stock level.
The question of how much to order is now the last
remaining item of order policy to be determined.
The system accepts an order quantity provided in the
item master and uses this amount. This is called
a fixed order quantity. The system also is able to
determine the quantity required to return inventory
to some customer specified level, commonly called
orde1'-up--1:o quantity, or it computes the economic
order quantity. The standard or classical EOQ
formula attempts to derive the order quantity
that offers the least total cost for producing an
item. Figure 20 illustrates graphically how this
technique arrives at a quantity. The point at
which the two lower curves cross is the lowest
total cost and, therefore, the most economic
order quantity. It has been established that, in
general, the total cost curve is very flat in the area
of the minimum. This fact allows some flexibility
in the rounding of order quantities to more convenient numbers. The inventory control subsystem
should have the ability to determine an order quantity on the basis of the EOQ calculation, and also
to consider a user supplied rounding technique.
This technique can be called the min-max multiple.
32
Least Total Cost or
Economic Order Quantity
I
I
Total Cost
I
o ~--~--~--~-Y---4---+--~--~--~--~
o
Order Size -
"Standard" or "classical" EOQ formula
_J2 AS
Q - IC
S = setup or order cost
I = item unit cost
A = aIUlual sales or usage C = inventory carrying rate
Q = order quantity
Figure 20. Economic order quantity
Another method for computing order quantity is
on the basis of a technique for obtaining minimum
unit cost. This approach considers making orders
on the basis of the actual requirements and not on
the basis of an average, as is the case in the classical approach. Figure 21 demonstrates this least
unit cost run size technique.
Line 1
Period
1
2
3
4
5
Line 2
Requirement
50
60
70
70
80
Line 3
Possible run quantity and
associated unit cost
50
.12
60
70
70
80
Line 4
50+60
.065
0
70
70
80
Line 5
50+60+70
.055
0
0
70
80
Line 6
50+60+70+70
.056
0
0
0
80
n
Inventory Carrying Rate = .02 (20/0) per period, and the unit cost is $1.00
Possibility 1:
Line 3 illustrates the possibIlity of running each requirement
as a separate run. The unit cost of running 50 in period 1 is
computed as fo11O\\'s:
Unit Cost
=Setup Cost + Carrying Cost =$6.00+$0 =$. 12
Quanthy
50
The next solution to this problem is combining other requirements
with the 50 of period 1 to deter.mine whether anything can be saved.
Possibility 2:
If period 2 (60) is combined with period 1 (50) to yield a run of
110 (line 4), the unit cost drops:
.
_ Setup + Carrying Cost _ 6.00 + 60 x 1.00 x .02 x 1 period _
Umt Cost Q'
110
- $.065
uantlty
Possibility 3:
If this procedure is repeated, it is found (line 5) that a run of
180 in period 1 costs $.055 each.
Unit Cost = Setup + Carrying Cost
Quantity
=6.00 + 60 x 1. 00 x .02 x 1 + 70 x 1. 00 x .02 x 2
180
= $.055
Possibility 4:
Running 250 (line 6) in period 1 costs $.056 each.
Conclusion: The most economic quantity to be run in
period 1 is 180.
The same problem is restated below assuming this run of 180 in period 1.
Period
Requirement
1
2
3
180 (run)
Possible run quantity
and associated unit
cost
4
5
70
80
70
.086
80
70+80
.051
0
.••• n
The procedure would be repeated using period 4 as the base in an attempt to find its
best run size.
Figure 21. Least unit cost run size
33
DATA BASE
MODULE NAME
Order Policy
INPUT
• Percent
Carrying Cost
• Order Cost
PROCESSING ROUTINES
Calculations:
(1) Order Pt. IOrder
Up-to-Qty.
r(2) EOQ
(3) Safety Stock
Inventory Maintenance and Update
The execution phase of the inventory c~:mtrol subsystem is concerned with the maintenance of the
item inventory records. Inventory can be divided
into several different types:
1. Stock that is physically on the shelf in the
stockroom. This is called on-hand inventory.
2. Stock that is not yet physically in the stockroom because it is in the process of being manufactured. This is called in-process inventory.
3. Stock that is neither on-hand nor in process
but, . rather, planned for inventory in the form of
unstarted orders. This is called on-order inventory.
In addition'to the necessity of maintaining these
general categories of inventory, there also exists
the necessity to verify the actual quantities that are
incorporated in the records. This area is called
physical inventory. The function of the inventory
control subsystem is to perform the necessary
... maintenance on the sections of the item master
record that are connected with inventory. An integral part of this maintenance procedure must, of
necessity, be the normal report generation that
takes place in substantial volume and, usually, on a
regular cycle. The second and perhaps more important type of reporting is the exception reporting.
This takes the form of short, concise statements of
unusual conditions.
In-Stores Inventory
The limits of responsibility of this phase are defined
as beginning at the time of physical receipt into a
stockkeeping area and continuing until the item is
physically issued from that area. If partially completed items are returned to the stockroom to await
further work, they again become the responsibility
of this phase.
34
RECORD
TITLE
Item Master
RECORD FIELDS
• Order Po !icy
Order Code
Order Point
Order Qty. or Order- Up
to Level
Safety Stock
Minimum
Maximum
Multiple
• Parts Usage History
• Unit Costs-Std.
OUTPUT
• Order Point - Order
Quantity
The items in the in-stores inventory (on hand in
stockrooms) can be divided into two major categories, depending on whether orders mayor may not be
initiated by the inventory control subsystem. Orders
should not be initiated by this module for items that
are ordered by the requirements planning subsystem-namely, items that are discretely ordered to
meet needs, or items that are ordered on the basis
of some economic lot size. On the other hand, this
subsystem is in an excellent position to perform the
ordering necessary for items whose inventory is
maintained on an order pOint/order qua"ntity basis.
This method of inventory keeping has at times been
called a minimum/maximum or two-bin system.
Certain transaction processing must take place for
both kinds of items. Figure 22 is an attempt to show
the way in which a few typical transactions might affect various record fields.
For items that are considered on an order point/
order quantity basis, it is the responsibility of this
phase to review the status of inventory with each
incoming transaction and to inform the proper
ordering function (either purchasing or manufacturing) of the need for stock replenishment. This
information can take the form of a printed report,
punched cards, or both. If there is not enough
inventory in stores to satisfy a requirement, a backorder transaction is entered for the item, and it
becomes part of the transaction chain. This type of
transaction is not removed from the file until
enough stock is received to cover the requirement.
Inventory status reporting is a responsibility of
this phase of the inventory control subsystem.
Status reports are prepared in a format and on a
cycle determined by the implementer.
In the past, the inventory recordkeeping has taken
place in the stockroom or other locations, such as
raw material storage areas and shop floor areas
reserved either for assembly line component storage,
I
Transaction
Planned
Receipt
On-Hand
Inventory
Purchase
+
Production
+
(Transfer)
Unplanned Receipt
+
Planned Issue
-
(Transfer)
Unplanned Issue
(Return)
Credit Issue
Allocated
Quantity
Purchasing
On-Order
-
-
+
Purchase On-Order
+
Production On-Order
+
Inventory
Adjustment (+)
+
Inventory
Adjustment (-)
-
Purchasing
Canceled
Order
Production
Inventory
Allocation
Production
On-Order
+
Figure 22. Inventory transactions and their effect on the item master
for supplies, or for any other inventory that might
be stored. The inventory recordkeeping usually has
been accomplished by means of a clerk making an
entry in an inventory ledger. The method of entering information into a computer-based recordkeeping
system must take the form of a transaction record.
Whenever a new supply of nuts and bolts arrives, for
example, a transaction is initiated to inform the
system that the on-hand inventory for the item has
been increased by a specific, verified quantity .
When a withdrawal of material is made, information
is provided to reduce the on-hand quantity. These
. transactions may take several forms, such as a
punched card or a typewriter entry.
The input to the in-stores inventory maintenance
phase comes from any of the various locations where
stock is kept, and is in a form that is acceptable to
the computer. A basic assumption about validity
and accuracy of the transaction is made even though
further checking is performed by the programs
involved.
The transactions affecting this phase of inventory
maintenance are concerned primarily with the onhand inventory quantity. Two types of transactions
must be processed-incoming stock and outgoing
stock.
Incoming stock transactions represent receipts or
adjustments that increase on-hand inventory. The
incoming quantity must first be added to the on-hand
inventory. This having been done, a check must be
made to determine whether a back order exists for
this item. A back order represents a previous requirement for the item that could not be filled
because of a lack of inventory. If a back order
exists, a notice of the present availability of stock
must be issued so that this requirement can be
filled, either completely or partially. The transactions entering the system (receipt to stock, for
example) are entered in the transaction log, as are
the transactions generated by the system.
An outgoing stock transaction (issue, for example)
first determines whether a previous back order exists for this item, and whether this transaction is
destined for that use. If this is the case, the onhand inventory is reduced, and the back order is
removed either partially or completely. On the
other hand, if the outgoing transaction is not for the
outstanding back order, a notice of this apparent
conflict is issued. If there are no outstanding back
orders, the on-hand inventory is reduced, or a back
order is created for the stock that cannot be supplied.
In any of these cases, the incoming transactions, as
well as the system-generated transactions, are
logged.
The on-hand inventory fields of the item master
are designed to facilitate centralized control of
stock. In the illustration (Figure 22a), all of the
stock locations appear in one record for part
number 275617. This includes stockroom locations
on the plant floor, in the central finished goods
warehouse, or at a remote branch warehouse
location.
35
Description
Part No.
Total Quantity
100
Gearbox
275617
No. Locations
(
To Detail
5
)
f
\
\
Area
Qry.
CW
50
Row/Tier
10/3
/'
Area
Qty.
CP-1
10
"
Central
Warehouse
Chicago
3rd Location
(
\
Floor Location
16
\
I
Production Stockroom No. 1 - Chicago
f
\
I
2nd Location
1st Location
I
Area
Qty.
AW
10
Row/Tier
Area
2/1
SL
o
I
4th Location
Qty.
20
I
Floor Location
\
38
)
J
t
Plant Warehouse - Atlanta
(
~
5
5th Location
)
Area
Qty
Row/Tier
LA
10
9/10
Branch
Warehouse
St. Louis
Branc
Warehhouse /
Los Angeles
Figure 22a. On-hand inventory fields in the item master
In-Process Inventory
In-process inventory maintenance is concerned with
the recordkeeping that must take place from the
time an item is withdrawn from stock until that
item reenters the stockroom or has lost its identity.
An item loses its identity by being incorporated into
a larger assembly. The item may, however, reenter stock after having certain operations performed
on it that do not change its identity. This partially
finished item again becomes the responsibility of the
in-stores inventory maintenance phase.
The maintenance of the in -proces s inventory takes
place in the detail record, which is established for
each released shop order. A discussion of the inprocess inventory maintenance function may be
found in the section of this manual dealing with the
shop floor control subsystem. This subsystem is
36
required to keep a check on each releas ed shop
order to determine whether the quantity ordered and
the quantity actually being produced are within acceptable tolerance. Reporting on the status of inprocess orders is performed by this subsystem in
the same general way that in-stores reporting
is accomplished.
On-Order Inventory
The responsibilities of this phase are very similar
to those of in-process inventory maintenance. The
maintenance is concerned only with those recQrds
related to either open shop orders that are not yet
released to production or open purchase orders.
In the area of purchase orders, the detail records
are checked each time a receipt from a vendor is
reported to determine whether the quantity received
is within the stated tolerance with the original order
quantity. If there is agreement, responsibility
transfers to the in-stores phase to record the re-
ceipt to stock. If there is no agreement, reporting
takes place to inform management of the exception.
Status reporting is again the function of this phase.
DATA BASE
MODULE NA:ME
Inventory
Maintenance
and Update
•
•
•
•
•
•
•
INPUT
PROCESSING ROUTINES
RECORD
TITLE
Issues
Receipts
On Order
Cancellations
Adjustments ±
Transfers ±
Scrap ±
Inventory Update
Item Master
Phys ical Inventory Count
This module checks the physical inventory fields in
the item master record on a cyclical basis and prepares the necessary documents to initiate physical
stock counting when necessary. From this point,
the phase ensures that the count is taken and the
records adjusted for any discrepancy between actual
and record quantities. All the necessary reporting
related to physical stocktaking is generated by this
phase.
Input is primarily the reports of physical counts
that are made. These reports come to this phase
from whatever group is responsible for taking the
RECORD FIELDS
• Inventory On Hand
Total Qty.
Area Qty.
• Allocated Qty.
• Back Orders Qty.
• Current Period
Beginning Inventory
Transfers & Adjusts.
Receipts
Issues
Demand
• On Order-Purchasing/
Production
• Requirements-Gross
OUTPUT
• Stock Status Summary
• Transaction Logs
• Order Notice for Order
Point Items
actual count in the stockroom. Additional input
comes in the form of instructional transactions indicating adjustments to be made to the inventory
records.
The inventory record for each item is checked on
a regular basis to determine whether a physical
count should be taken. If the time to take a count
has arrived, a notice is generated to initiate the
count. When the count is completed, the phase compares the actual count to the book count and notifies
management if they are not in acceptable agreement.
Physical inventory reports are generated by the system to inform management of the results of a physical stock count. Exception reports are produced to
emphasize unusual conditions.
DATA BASE
MODULE NA:ME
INPUT
Physical
Inventory Count
• Inventory Count
• Physical Inventory Adj. ±
PROCESSING ROUTINES
(1) Physical Inventory
Notification
(2) Physical Inventory
Validation
RECORD
TITLE
Item Master
RECORD FIELDS
OUTPUT
• Physical Inventory Type
Qty. Count
Checker No.
Date last count
Date of next count
• Inventory On Hand
Total Qty.
Area Qty.
• Inventory Discrepancy
List
• Inventory Adjustment
Report
37
SUBSYSTEM SUMMARY
The modules of the inventory control subsystem are
summarized in Figure 23.
SUBSYSTEM: Inventory Control
DATA BASE
MODULE NAME
INPUT
PROCESSING ROUTINES
RECORD
TITLE
RECORD FIELDS
OUTPUT
A - B- C Inventory
Analysis
• Parameter
Specifications
A - B- C Analysis
Item Master
•
•
•
•
Order Policy
• Percent
Carrying Cost
• Order Cost
Calculations:
(1) Order Pt. /Order
Up-to-Qty.
(2) EOQ
Item Master
• Order Policy
Order Code
Order Point
Order Qty. or Order- Up
to Level
Safety Stock
Minimum
Maximum
Multiple
• Parts Usage History
• Unit Costs-Std.
• Order Point - Order
Quantity
Inventory
Maintenance
and Update
•
•
•
•
•
•
•
Inventory Update
Item Master
• Inventory On Hand
Total Qty.
Area Qty.
• Allocated Qty.
• Back Orders Qty.
• Current Period
Beginning Inventory
Transfers & Adjusts.
Receipts
Issues
Demand
• On Order-Purchasing/
Production
• Requirements-Gross
• Stock Status Summary
• Transaction Logs
• Order Notice for Order
Point Items
Physical
Inventory
Count
• Inventory Count
• Physical Inventory Adj. ±
(1) Physical Inventory
Notification
(2) PhYSical Inventory
Validation
Item Master
• Physical Inventory
Type
Qty. Count
Checker No.
Date last count
Date of next count
• Inventory On Hand
Total Qty.
Area Qty.
• Inventory Discrepancy
List
• Inventory Adjusttnent
Report
Issues
Receipts
On Order
Cancellations
Adjusttnents ±
Transfers ±
Scrap.±
Figure 23. Inventory control subsystem summary chart
38
Item Number
Parts Usage History
Unit Costs
Unit
Price
I
• Analysis by Investtnent
• Analysis by Net Return
I
FORECASTING
INTRODUCTION
The role of the sales forecasting subsystem is to
analyze historical data about the demand process
and generate a forecast for a desired planning horizon (for example, a season or a year).
Output of the subsystem, which is based upon
analysis of past data patterns, can be blended with
the additional information available to the planner,
such as economic trends, competition, market
trends, etc., to yield a solid foundation for the plan.
While a computer forecast, by itself, may not
suffice for planning purposes, the man-machine
cooperation achieved by such an approach exploits
the advantages inherent in both the planner and the
computer. No machine can replace the judgment
capability and experience of the human planner. The
machine, however, can generate forecasts more
efficiently when many forecasts are involved.
The term "projection" is often used instead of
"forecasting" when historical usage information is
the principal basis for estimating future demand.
This distinguishes the forecasting technique described in the manual from other techniques that use
extrinsic factors, such as housing starts and gross
national product, for correlation to estimate future
demand.
This subsystem is designed to furnish management with an easy-to-work-with tool in order to perform accurate, long-range planning. Information
will flow to requirements planning.
The first consideration in forecasting is the type
of forecasting model that is to be used. * Some of
these models are:
1. Constant
2. Trend
3. Cyclical or seasonal
Figure 24 shows a plot of demand for an item over
a twelve-month period. By observation, the data
seems to fluctuate around a constant value of 100
units/month. The forecast model, or general representation of the demand pattern, can be expressed
as X = 100, where X is the demand function.
A representation of data showing linear trends is
indicated in-Figure 25. Although the average value
is a straight line by inspection, it does possess a
positive slope. The model that best represents this
pattern of demand data is a straight line or linear_
pattern. The model is, therefore, represented by
the expreSSion Y = AX + B, where A and Bare
constants, X is the period value, and Y is the demand.
*See System/360 Inventory Control (H20-0471),
IMPACT (Wholesale) (E20-8105), and Retail
IMPACT (E20-0188)
Similarly, Figure 26 reflects a picture of demand
that is increasing at an increasing rate. This type
of pattern is expressed by the function Y = AX2
+ BX + C, where C is an additional consta~t.
Finally, Figure 27 shows an indication of the type
of pattern that can result from seasonal demand.
This is best described by a sine function of the form
Y = A + B sine X. '
Basically, most histories of demand data fall into
one of these patterns. The determination as to which
model best fits the history is made by using a technique of fitting a curve or function to the data. This
is known as regression analysis. Inherent in the
least-squares procedure used in regression analysis
is the fact that many periods of data must be main~
tained on the file for each item to be forecasted, if
it is to be used as a continuing technique of forecasting.
The answer to the problem is the use of a technique lmown as exponential smoothing. Stated simply,
smoothing is a technique comparable to finding an
average of historical data and, as the data for each
new period becomes available, developing a new
average of the old and new ,data. The old average
and the new period data are weighted in such a manner as to give more or less importance to the old
average, depending on the desires of the individual.
The formal expression used is New Average = Old
Average +a (new demand - old average), where a
(the alpha factor) is the weight assigned to the new
data. The factor determines the relative weight to
be given to old and new data. The conventional
moving average technique requires that several
periods of the most recent data should always be
maintained on the file. The smoothing approach
requires only that the old average should be carried
forward each period. The term exponential smoothing derives from the fact that the new piece of data,
when averaged with the old average, has less effect
on the overall calculation as time progresses. If
the effect that a piece of data has on the new average
over a period were plotted, it would follow an
exponential curve. *
The expression for the new average is lmown as
a single smoothed expression and is used for estimating constant models, as in Figure 24. The
expression tells us nothing about trend, as would be
required for the linear model in Figure 25. The
exponential and cyclic models have not only trends
but trends that are changing. The terms "double
*See Management Operating System - Forecasting,
Materials Planning and Inventory ManagementGeneral (E20-0031)
39
DEMAND
DEMAND
160
140
-- i - -
140
120
-- f - -
120
---
100
'--
100
/'
-- --
80
80
60
.V
60
40
. VV --"V
40
V
/.
V
./
v.
V
V
20
20
10
10
II
12
PERIOD
Figure 24. Constant demand pattern
140
I
!
i
:
I
i
.
i
100
!
I
80
i
I
60
~
. k:- ,.,.-
V
~
X
i-""""
i
I
--
Figure 26. Increasing demand
smoothing" and "triple smoothing" are applied to a
model depending upon whether two or three unlmown
factors are to be determined.
It is important to understand that exponential
smoothing is a different technique from the least
squares regression technique used for curve fitting.
It can be shown, however, that after initial selection, exponential smoothing provides almost identical
results without the data requirements imposed by
regression analysis. In case of a constant model,
DEMAND
120
12
~
I
DEMAND
70
I
I
60
I
I •
40
20
'6
I
50
i
40
I
30
!
20
I
10
1
10
II
v
~
~~
40
~
....,
~
...;V
~
I
12
10
12
PERIOD
PERIOD
Figure 25. Linear demand model
V~
Figure 27. Seasonal demand
as in Figure 24, the current average is equivalent
to the forecast for the next period or periods.
In addition to being informed of new averages and
trend, and projecting the trend into the future,
one would like to have some indication as to the
reliability of this forecast. Certainly, large expenditures of money are made on the basis of such
forecasts. The problem of "By how much can we
expect to miss the forecast?" is lmown as the forecast deviation or, conventionally, the mean absolute
deviation (MAD). It is the average of all the differences between the actual sales or demand and the
average demand. If, for example, the forecast of
new demand were 100 and the MAD were 10, then the
probability that demand in the next period would not
be greater than:
100 is 50%
(Forecast)
(Forecast+1 MAD)
110 is 78.8%
120 is 94.5%
(Forecast+2 MAD)
(Forecast+3 MAD)
130 is 99.2%
OBJECTIVES
The planning for implementation of forecasting subsystems in the manufacturing industries has not yet
reached widespread acceptance. The reasons for
this are twofold.
First, the characteristics of some businesses are
such that analysis by inspection of data yields results
that are good enough. Namely, one looks at past
demand and feels that his demand for the past year
has been 100 a month; therefore, it remains 100 a
month for the future. Even if trends exist or
seasonal patterns appear, the forecast-by-inspection
route appears "good enough". The fallacy here,
however, is that since the forecast is based somewhat on intuition and "feel", safety allowances are
increased to allowfor any error in judgment. The
additional inventory is no small matter if this gross
approach is followed on several hWldred items.
Second, the tools generally furnished in a forecasting subsystem appear to be formidable. Manuals
and descriptions of the subject imply an extremely
sophisticated backgroWld of statistical and graphical
analysis. The only requirement, insofar as one is
concerned, is an Wlderstanding of what a subsystem
of this type will furnish, not necessarily a
thorough understanding of the statistical techniques
employed.
Several items are to be considered in selecting a
sales forecasting plan for an organization:
1. Type of smoothing or model. This can be
based on the feel for the type of model, calculated
manually from actual data or past data which can be
analyzed automatically by the system available to
aid in the selection of a plan.
2. Length of forecast. This is a subjective
consideration; some of the factors would be lead time
of the item, plus considerations regarding longrange planning.
3. Forecast period. This is the time between
iterations or revisions in the forecast. Revisions
should be made periodically, since the further into
the future the forecast is made, the less reliable the
results.
4. The smoothing constant (a-;). In the expression
New Average = Old Average + ex; (new demand +
old average), an initial value must be assigned to
alpha. A small value of alpha means that more importance is being assigned to the old average than to
the difference of (new demand - old average). The
value of alpha ranges between a and 1. O. A high
value of alpha produces a highly responsive forecasting plan, which adapts itself to new sales situations, but it also has a higher degree of forecast
error.
5. The initialized model. Once the plan has been
decided upon, initial averages and trend must be
determined. If data is available, they can be calculated or estimated; if data is not available, the
averages are estimated, and the trend is set to
zero.
6. Items selected. Although forecasting can be
performed on any part or subassembly, it is anticipated that the forecasting system will be more appropriate for end item assemblies and service parts.
SUBSYSTEM FLOW
The forecasting subsystem is composed of two
modules - model select, and update and project
(see Figure 28). The first is used to select the
model and calculate initial values for each item.
This is done when the system is initially set up,
then periodically (perhaps yearly) or as required to
meet changing conditions. Input to this module is
. historical demand, and the principal output is the
updated item master record.
The update and project module is used to keep
the item master file current (that is, reflecting the
most recent demand) and to project future demand.
Input to this module is the demand for the current
period, which is used to update the values calculated
by the model select module. Output consists of a
printed report and a projection record for use by
the requirements planning function.
Figure 29 is a representation of several periods
of historical data, along with the projection for
periods 30 through 36. The solid line going through
the data is the trend line, and is represented by two
numbers or points (first average and second average). On the basis of the historical demand (analyzed and summarized by model select), the use of
41
The calculations used for period 29 follow:
New First Average
= Old First Average +
a (Current Demand - Old First
Average)
319.0 + .05 (349 - 319.0)
Module 1
320.5
Item
Master
Model
Select
New Second Average
Old Second Average + a (New
First Average - Old Second
Average)
300.0 + .05(320.5 - 300.0)
301.0
Trend
Module 2
Update
and
Project
Item
Master
First Average - Second
Average
l.::lL
a
320.5 - 301. 0
19
1.0
Average Demand
Forecast or
Projection
Report
2 x First Average - Second
Average
2 x 320.5 - 301. 0
340
To Requirements Planning
Figure 28. Forecasting subsystem flow
an alpha factor, and the most recent demand; it is
possible to project demand for future periods (indicated by the broken line). Several important points
are to be made from the illustration:
1. Data for historical periods is not retained in
the file. Only the current averages of the data are
required.
2. A trend model was selected for the historical
data, and it was determined by model select some
time in the past.
3. The effect of the most recent demand is part
of the latest projection.
4. When the update and project program is run
again after the next period, new projection information is made available for periods 30 through 36 on
the basis of actual demand for period 29.
42
For the periods beyond 30, the trend (1. 0 in this
example) is added to the previous period's projection to obtain the projection for each subsequent
period.
The projection report is illustrated in Figure 30.
For each item, the report lists the old and the new
values for average demand, first average, second
average, trend, MAD, and sum of the c;leviations.
The values shown on the first line are the old
values; those on the second line are the new values.
The model type code, the alpha factor, and the current demand are also indicated. The projections
for this trend item are extrapolated for twelve time
periods in this example.
The output of this subsystem, therefore, provides
projections of future requirements for end item
assemblies. This data then provides the necessary
input for the requirements planning subsystem.
Detail part and subassembly requirements are calculated on the basis of the output furnished by the
forecasting subsystem.
units
370
360
350
310
X
X
X
X
330
320
X
x
340
-
X
X
X
1--
31
32
-" .~-
~
X
X
X
:x
X
v
~-
-
X
X
300
290
10
11
2
13
14
15
1
17
18
19
20
21
22
23
24
25
26
27
28
29
30
33
34
35
36
Periods
,Figure 29. Smoothing with trend
ITEM NUMBER
A-1476843
DESCRIPTION
MODEL
ALPHA
ADAPTER UN IT
PROJECTION
12 PERIODS
T
.05
CURRENT
DEMAND
349
AVERAGE
DEMAND
338.0
340.0
FIRST
AVERAGE
319.0
320.5
SECOND
AVERAGE
300.0
301.0
T~END
1.0
1.0
MAD
21.0
20.5
SUM OF
DEVIATIONS
50.139.1-
-12-11-9-10-8-5-6-7-2-3-4-1352
351
350
346
347
348
349
341
344
345
343
342
Figure 30. Forecast or projection report
43
MODEL DESCRIPTIONS
Model Select
Past demand data by period are accumulated for
analysis. All items that are to be included in the
forecast subsystem should first be examined by
the model select phase. This run examines past
demand and ascertains the best model to assign
the item. For items that appear to be seasonal
in nature, two y~ars of data are usually required.
The base indices are calculated for each period
of the seasonal items and retained on the file for
future use by the update and project program.
For items that do not have past demand data, and
that are not seasonal, an arbitrary model selection
can be made on the basis of past experience. The
control cards indicate the item number, the model
type selected, the estimate of past averages, and
for all items, the value of alpha.
Output of the model select run is data indicating
the model type, averages, trend, and base indices.
This appears on the item master record for use by
the update and project run.
DATA BASE
MODULE NAME
Model Select
INPUT
PROCESSING ROUTINES
• Historic Demand
• Parameter Cards
• Edit
• Determine Model
(Regression Analysis)
• Compute Averages
• Determine Trend
• Calculate Base Indices
• Initial Update of Item
Master
Update and Project
Input to the update and project run consists of current period demand, parameter cards, and output
from the model select run, or the updated item
master from the previous update and project run.
Parameter cards indicate any overriding factors,
extent of the projection, and various expressions to
be used in the smoothing formulas.
The module determines the type of smoothing
required from the code appearing in the master
record. The module provides for first and second
order linear trend or seasonal trend capabilities.
RECORD
TITLE
Item Master
RECORD FIELDS
•
•
•
•
•
•
Model Type
First Average
Second Average
Trend
Average Demand
Mean Absolute Deviation
(MAD)
OUTPUT
• Updated Item Master
• Model Select Listing
• Alpha
• Base Indices
Depending upon the model, it calculates new averages and trend, and if extrapolation of the data is
requested, it projects demand into the future on the
basis of the run limits.
The projection, averages, trend, etc., are furnished in report form. In addition, a machinereadable record is prepared for input to requirements
planning.
The sum of the forecast errors provides an indication of how well the forecast is anticipating actual
demand. As soon as these deviations exceed a predetermined amount, the item is highlighted for examination.
DATA BASE
MODULE NAME
Update and
Project
44
INPUT
• Current Period's
Demand
PROCESSING ROUTINES
• Calculate New
Averages
• Revise Trend
• Adjust Base Indices
• Compute Mean
A bsolute Deviation
• Tracking Signal
• Project Demand
RECORD
TITLE
Item Master
RECORD FIELDS
•
•
•
•
•
•
Model Type
First Average
Second Average
Trend
Average Demand
Mean Absolute Deviation
(MAD)
• Sum of Devia tions
• Alpha
• Base Indices
OUTPUT
• Forecast or Projection
Report
• Updated Ite.m Master
• Projection Record for
Requirements Planning
SUBSYSTEM SUMMARY
Figure 31 summarizes the function of each of the
modules in the sales forecasting subsystem.
The first module, model select, is concerned
with analyzing past data for items not considered
previously by the forecasting system. Once a forecast model is determined, the system proceeds to
module two, to keep the values up to date and to
project future demand.
Output includes the projection report, updated
item master record, and a projection record for
Requirements Planning.
SUBSYSTEM: Forecasting
DATA BASE
INPUT
MODULE NAME
Model Select
• Historic Demand
Parameter Cards
•
Update and
Project
•
Current Period's
Demand
PROCESSING ROUTINES
•
•
•
•
RECORD
TITLE
Edit
Determine Model
(R egression Analysis)
Compute Averages
Determine Trend
• Calculate Base Indices
• Initial Update of Item
Master
Item Master
•
Item Master
Calculate New
Averages
• Revise'Trend
• Adjust Base Indices
Compute Mean
Absolute Deviation
Tracking Signal
Project Demand
•
•
•
RECORD FIELDS
•
•
•
•
•
•
Model Type
First Average
Second Average
Trend
Average Demand
Mean Absolute Deviation
(MAD)
Alpha
• Base Indices
OUTPUT
•
•
Updated Item Master
Model Select Listing
•
•
Model Type
First Average
Second Average
Trend
• Average Demand
Mean Absolute Deviation
(MAD)
Sum of Deviations
Alpha
•
•
•
• Forecast or Projection
Report
Updated Item Master
Proj ection Record for
Requirements Planning
•
•
•
•
•
• Base Indices
Figure 31.
Forecasting subsystem summary chart
45
REQUffiEMENTSPLANmNG
service or repair parts, as well as prime products.
The objective is to determine requirements as
quickly and as accurately as possible, as well as to
react quickly to change in forecast, order cancellation, and plant rescheduling.
To be generally effective the subsystem should
have the capability to accomplish the following:
INTRODUCTION
The problems involved in exercising control over
a manufacturing process are to a great extent determined by the complexities of the finished products
involved. One problem in controlling the total efficiency of a complex manufacturing process is that
of detailed requirements planning. * This is a
matter of establishing the type and quantity of component parts and assemblies necessary in future
production calendar periods. An equally important
and related problem is ensuring that these original
component parts and assemblies are planned to be
available as needed. Insofar as requirements
planning is concerned, this entails the examination
of current inventory conditions and the issuance of
the necessary make or buy notifications.
OBJECTIVES
The function of a requirements planning subsystem
is to determine the raw materials, fabricated parts,
purchased parts, subassemblies, and assemblies
needed to meet the finished products plan that was
generated by a forecasting subsystem or its substitute. The term finished product is used to include
1. Determine net finished product requirements.
2. Determine gross and net component requirements.
3. Determine lot size requirements.
4. Determine offset component requirements on
the basis of manufacturing or procurement lead
time.
5. React to revisions to orders or forecasts on
a "requirements alteration" basis.
6. Review and adjust planned orders by "conversational planning".
The subsystem should be modular in design to
permit the ability of either including or excluding,
for example, the offsetting of component requirements.
*See Management Operating System for Manufacturing Industries (E20-8041)
Customer
Orders
Sales
History
,
i
i
Sales
Forecasting
Subsystem
+
Module #1
Net Finished
Product
Requirements
Output
Gross Requirements
Net Requirements
Planned Orders
Offset
Requirements
........
-
(Time Series)
Item Master
-
....-
.............
--.:/
--
Inventory
Control
Subsystem
Product
Structure
--
-.....-
"
Module #2
Net
Component
Requirements
Figure 32. Requirements planning subsystem flow ( general)
46
r'---_/
~~
--
For each Module
•
Processing { •
Routines
•
•
Lot Sizing
Offsetting
Requirements Alteration
Conversati0pal Planning
SUBSYSTEM FLOW
Figure 32 shows the requirements planning subsystem flow. The input is in the form of a forecast or
customer orders to the first module, which determines the net finished product requirements. These
provide input to the second module, which determines the gross and net component part requirements. The output from both modules can be reports
showing the requirements by time period for finished
products and component parts. Exception notices
can also be generated for purchasing and manufacturing showing items requiring attention, and the
quantities involved.
Requirements planning is accomplished by translating product specifications into raw material, part,
subassembly, assembly, and packaging requirements, by accessing bills of material. The component requirements are distributed over the proper
time intervals of a production calendar by the level
offset or manufacturing and procurement lead times.
The accumulated requirements per item are
checked against the available stock on hand, and on
order, to determine net requirements. If requirements are not adjusted by existing inventories, this
process results in a gross requirement. Planned
orders emerge from the system as an immediate
response to shifts in demand. A sudden increase
in requirements, which causes negative availability,
generates instant order action. Conversely, a
sudden decrease in demand may cause excessive
inventory. The system has the ability to cancel
planned orders and forestall the building of surplus
inventory.
TIME SERIES LEVEL-BY-LEVEL ANALYSIS
One of the most advanced analysis techniques, and
most exacting in planned requirements is the time
series level-by-Ievel analysis approach. It is applicable, in particular, where a product has multilevels of production, high cost components, a long
lead time, stocking of semifinished components,
and/or multiused assemblies and parts. The requirements planning subsystem employs this levelby-level time series approach.
Levels are associated directly with manufacturing lead time. The point at which a product is
.icompletely assembled is the highest or zero level
of a product structure. The components that make
up this stage are called level 1 items.
Level 2 is the preceding stage in the manufacturing process, and the level numbers keep rising until
the most basic component is made. The number of
levels is dependent on the complexity of the end
product; the higher the level number, the earlier
the component is needed in the manufacturing process.
Order action for any component is suspended
until its lowest-level requirement is exploded. A
part or subassembly is at its lowest-level when it
is no longer a component at a lower level in any
other assembly or for any other end product. When
the lowest level of usage is reached, the total requirements are checked for inventory availability,
and any necessary orders are signaled.
Use of the low-level code implies that each
item (part number) has been coded to identify the
lowest level of its usage in connection with any of
the finished products. in the line. This low-level
code is contained in the item master record and
is used primarily during explosion to indicate when
netting is to be performed.
Gross requirements are posted directly to the
item master record as they are developed (level
by level). The low-level code is examined each
time a gross requirement is posted, and netting is
performed when the lowest level of usage has been
reached. This procedure is accomplished through
the use of the level action chain described in a
previous MOS manual. *
Figure 33 shows an example of two end products,
X and Y, and their associated assemblies, subassemblies, and parts, with the appropriate lowlevel codes. It also depicts the lead times or
offset between levels in the manufacturing process.
Note that "1" is used on both products X and Y, and
although it appears in levels 1, 2, and 4 of product
X, and in level 1 of product Y, its low-level code
remains "4".
*See MOS Inventory Management and Materials
Planning - Detail (E20-0050) p. 97
Increasing Time ....
..-----------------
End
Product
Level
0
/
June 13
June 12
June 11
Major
Assembly
Level
1
Subassembly
Level
2
Subassembly
Level
3
Part
Level
4
(2)
D
(2)
(4)
'\. CD
(4)
(1)
®
(4)
@
(4)
(1)
@
(1)
\. CD
/
Product Y . .
®
®
®
-'
Component )
...
/
©
®
Product X . .
(
June 14
(3)
(1)
....
....
/
/
®
(3)
F
(3)
\.®
(3)
@
(4)
4
(4)
....
0(4)
~
0(4)
\
(Low-level code
Figure 33. Low-level control code
47
The following characteristics (not every characteristic need be present) are indicative for
justifying this approach:
1. The finished product is complex - multimanufacturing levels.
2. The· finished product is expensive - strict
control desirable.
3. There are multiple uses of components and
subassemblies with significant value attached to
each.
4. Consolidation of order requirements is necessary to reduce purchase and manufacturing order
costs.
5. The finished product manufacturing cycle is
relati vely long.
6. Raw material or semifinished components
are stocked.
7. Component and raw material lead time is
relatively long.
The time series level-by-Ievel approach, on
equipment other than a data processing system, is
impractical, because of the excessive process and
manual handling time required. Advantages of this
method, * as implemented by an IBM data processing system with direct access storage, are:
1. The initial coding and file maintenance for
the low-level control code is automatic, fast,
accurate, and eliminates intermediate handling.
2. Bills of material are chained to the inventory
control and are randomly accessed. Only one bill
of material per assembly is required.
3. One continuous run eliminates output of levelby-level requirements, except for the components
subject to management review.
4. Engineering change file maintenance is simplified, facilitating up-to-date and accurate bills of
material for planning.
5. Requirements are generated rapidly,
thereby greatly reducing the overall materials
planning cycle. Furthermore, the time series
level-by-Ievel approach provides for the generation
of requirements more frequently on the basis of
forecasts or rescheduling, thereby increasing
inventory savings.
6. An extended bill of materials is prepared
rapidly and automatically, providing a complete
list of materials and requisition cards per
item.
7. Parts and assembly requirements are consolidated before netting against inventory. This means
that the netting procedure for any part takes place
only once during a planning cycle.
8. Order sequence is easily maintained through
the use of the start and completion dates provided
for each order, on the basis of higher assembly
level start date.
9. Complete stock status reports are not required on a daily basis. Exception reporting provides management with critical stock positions as
the condition arises.
10. Tight control is maintained over material
allocated for assembly or part order, with shortage
reports automatically prepared using a chaining
technique.
MODULE DESCRIPTIONS
Net Finished Product Requirements
As shown in Figure 32, the first module of the requirements planning subsystem determines the net
finished product requirements. As was stated
earlier, the term "finished product" is used to include service or repair parts, as well as prime or
end products.
The input to this module comes from the forecasting subsystem, or its substitute, and consists
of the gross finished product requirements for the
planning periods involved. The input data involved
is item number, quantity, date required, and the
customer or shop order number, if one exists.
These gross requirements are compared to the
available inventory, and calculations are made to
determine the net finished product requirements.
The gross requirements are stored in the item master record. If desired, both the gross and net requirements can be printed as shown in Figure 34.
The requirements determined in this module
provide the input for the next module, which develops component requirements.
Requirements by Time Periods
Item
A
Behind
1
Schedule
8
2 3
4
7
0 10 6 4 10 8
5
5
48
6
6
7
4
20
20
*See Management Operating System - Inventory
Management and Materials Planning - Detail
(E20-0050)
5
8
9 10
-
11-20
Gross
Requirements
10 8
Net
Requirements
20
Planned
Orders
20
Figure 34. Projected requirements by time periods
Off
Set
Net Component Requirements
Again, referring to Figure 32, the second module
of the requirements planning subsystem (net component requirements) has the function of exploding
the net finished product requirements as determined
in the first module and developing the net component
requirements. The input, of course, is the net
finished product requirements by item number,
quantity, and due date. These net finished product
items are exploded level by level. The top-level
explosion generates the net requirements, which are
the gross requirements for the next level, and which
are compared to available inventory to develop net
requirements. The net requirements just developed
are then exploded to the next level to develop gross
requirements, which are netted, and the process
continues until all levels have been exploded and
netted. Any items based on order codes B or Care
ignored by the netting process (see item master
record).
During this process, the gross requirements are
stored; if desired, a report can be printed showing
by item the gross and net requirement quantities
(Figure 34).
PROCESSING ROUTINES
Associated with each of these two modules (gross-tonet finished products and gross-to-net component
requirements) are the following routines that may
. be called into use:
1. Plan orders (lot sizing)
2. Offsetting
3. Requirements alteration
4. Conversational planning
These routines are modular in design and independent of one another. Therefore, any or all
may be called into use within either module. A
general description of these four routines follows.
Plan Orders
Another important function that can be handled in
the requirements planning subsystem is that of
planning orders - that is, combining net requirements that have been generated into lot sizes which
satisfy the order policy for the item.
At the first point in time where a net requirement
has been generated, a quantity determined from the
order policy is established as a planned order and
is placed in the item master. If the first net requirement is larger than the quantity determined
from the order policy, multiple planned orders are
developed. The first and later net requirements
are added sequentially into the future, and comparisons are made to the planned order until the remaining quantity for the planned order has been
reduced to zero, at which time another planned
order is deve19ped, and the procedure is continued
for all net requirements. Exception notices to purchasing and manufacturing are made on all items
requiring attention; a report may be obtained showing the planned lot sizes (Figure 34).
Offsetting
This routine provides the capability to offset net
requirements or planned lot size requirements to
establish the start date of the requirements. This
means that each level's requirements are offset by
the appropriate amount of manufacturing or purchasing lead time. For example, assume the product structure shown in Figure 35 contains three
levels.
Assume also that a one-month lead time between
levels is required. It takes one month to procure
items 1 and 2, and one month to assemble B and C
to make item A. Therefore, on the basis of this
assumption, if item A were due in month 1, items
Band C would be due in month 5, and items 1 and 2
would be due in month 4.
The amount of time required to procure or to
produce an item (lead time) is maintained in the
item master record, and is referenced during the
explosion process to establish the proper offset.
Concurrent with the offsetting of requirements, the
item's lead time is checked to determine whether the
lead time offset planned start date occurs in the
current planning period, or whether the current
period has already passed the planned start date.
Exception notices are printed for all items falling
into those categories for appropriate management
action. If lot sizing has been employed, the offsetting is done for the lot sizes generated (see
Figure 34).
Level 0
level 1
Level 2
Figure 35. Three-level product structure
49
Requirements Alteration
Conversational Planning
A capability that is desirable in requirements planning is that of reacting to forecast or customer
order changes by introducing only the amount of
change that has occurred as opposed to a complete
regeneration of requirements planning. A forecast
may be revised upward or downward, for example,
by ten percent. Instead of having to regenerate the
entire plan, it is desirable to be able to deal only
with the quantity that has caused the alteration. This
capability is made possible through the use of direct
access storage devices.
The input, therefore, is in the form of a transaction denoting the item number, quantity changed
customer or shop order number, and date required.
This information is processed in the same manner
as other requirements.
Comparisons to both planned and on-order quantities are made; in the case of planned orders, appropriate revisions are made. Insofar as released
orders are concerned, exception notices are prepared with advice to cancel, increase, or reschedule
purchase or work orders. In addition, the item
master record is updated as required to reflect the
result of the alteration.
Another capability that is desirable in a mechanized
requirements planning subsystem is the ability to
review and adjust planned orders that have been
developed by the system. This can best be accomplished by reviewing the planned orders that have
been developed for a level and make adjustments
before proceeding to the next level. The "conversational planning" type of processing provides a
method by which planned order quantities and required dates can be adjusted and reentered into the
system so that correct component requirements are
established.
50'
PROCESSING DETAIL
Figure 36 shows the interrelationship of the modules
and routines to each other, certain files, and the
various points where exception notices or reports
can be generated. It will prove helpful to refer to
this flowchart as the following processing is discussed.
Forecasting
Subsystem
Module #1
Exception
Notice
•
Finished Product
Requil'ements
(Gross/Net - Time Series)
Item
Master
Test for
on Hand Inventory
Process
Gross/Net
•
Finished
Products
Plan
Planned {
Orders
•
Module #=2
Exception
Notice
Component Requirements
(Gross/Net - Time Series)
Gross top
level
-Net
-Explode
Product
Structure
Component
Items
Plan
•
Gross Component
level 1
-Net
-Explode
etc.
Planned
Orders
~--------~I--------~/
Capacity Planning
Subsystem
Figure 36.
Requirements planning subsystem flow (processing detail)
51
Net Finished Product Requirements
released orders, the gross requirements may be
temporarily increased by a shrinkage factor. This
satisfies a dual purpose: temporarily adjusting the
gross requirement before reducing it by a released
order that includes a shrinkage consideration, and
providing a resulting net requirement to include
antiCipated shrinkage.
3. Review the released orders in rela,tion to the
time series gross requirements in order to provide
exception notices that can be used to expedite,
cancel, or alter released orders.
4. If no further processing is desired, the output from this phase is a report to purchasing or
manufacturing, showing the net requirements,
quantities required, and scheduled due dates for the
items requiring attention.
5. If further processing is desired, the net toplevel requirements, quantities, and due dates
provide the input to the next phase of the module,
that is, the determination of the net requirements
for the component items that go into the top-level
items.
This phase of the gross-to-net module determines
from the forecast or its substitute the net finished
product requirements. These top-level net requirements become the input for the next phase of
this module - net component requirements, with
the option for lot sizing and/or time period offset.
The input consists of forecast requirements
containing the top-level item number, gross quantity
required, and the due date, all of which is stored in
the item master record. This phase of the grossto-net module takes the f~llowing steps:
1. Access the item master file, and locate the
items for which requirements exist.
2. Compare the gross requirements quantities
to the available inventory, and when the available
inventory is reduced to zero, determine the net
requirement and store it for further processing.
Before reducing the gross requirements against the
DATA BASE
MODULE
NAME
Net Finished
Product
Requirements
INPUT
• Finished Product
Forecast, or
Orders obtained
from Forecasting Subsystem
(as Gross
Finished Product
Reqs. - Module 2
of Forecasting,
or its substitute)
PROCESSING
ROUTINES
RECORD
TITLE
• Gross to Net Item Master
Order (lot)
sizing
Offset Reqs.
• Req.
Alteration
• Conversational
Planning
RECORD FIELDS
• Item No./Description
• Gross Requirements
Low-Level Code
• Planned Orders
• Order PoU cy
Order Code
• Safety Stock
• Shrinkage Factor
• Inventory On Hand
• Allocated Qty.
• Modifier Code
• Number Days Supply
• Maximum Quantity
• Minimum-MaximumMultiple Quantity
Cutoff Date
• On Order-Purchasing/Production
• Lead Time
Purchasing
Production
• Unit of Measure
•
•
52
OUTPUT
• Finished Products Plan Report
Gross Requirements
Net Requirements
Planned Orders with Lot Size
Planned Orders with Offset
• Exception Notice
• Planned Orders
Net Component Requirements
2. The top-level explosion determines the gross
requirements for the next level, and these requirements are stored in the item master record.
3. As was done for the top-level items, the
gross component requirements are compared
against the available inventory, and the net component requirements are determined
4. The net requirements just generated are exploded to the next level, creating component gross
requirements, which are stored in the item master
record for further explosions.
5. The process continues until all levels have
been exploded and netted.
6. If no further processing is contemplated, the
output of this phase is a report showing net requirements by item number, quantity, and due date for
the component items.
The net top-level requirements, as generated in the
first module, are input to this module. To determine the net component requirements, the following
steps are taken.
1. The item master record is retrieved, and
these items are presented to the product structure
file for level-by-Ievel explosion through the use of
the IBM bill of material processor* and utility
programs.
*See Bill of Material Processor - A Maintenance and
Retrieval System (E20-0114) and
IBM System/360 Bill of Material Processor Application Description (H20-0197)
DATA BASE
MODULE
NAME
Net Component
Requirements
INPUT
• Net Projected
Finished Products (From
Module 1)
• Adjustments
RECORD
TITLE
PROCESSING
ROUTINES
• Gross to Net Item Master
• Explode to
Next Level
Order (lot)
Sizing
Offset Reqs.
• Req.
Alteration
• Conversational
Planning
J
Product
Structure
RECORD FIELDS
•
•
•
•
•
•
•
•
•
•
Type of Item
Item No. /Description
First Assembly Component Address
Low-Level Code
Next Item in Activity Chain
Run Activity Control No.
Gross Requirements
Shrinkage Factor
Planned Orders
Order Policy
Order Code
• Modifier Code
• Number Days Supply
• Maximum Quantity
• Minimum-MaximumMultiple Quantity
• Cutoff Date
• Inventory On Hand
• Allocated Qty.
• Safety Stock
• On Order-Purchasing/Production
• Lead Time
Purchasing
Production
• Unit of Measure
• Component Item No. Master
Addr. and Compare Po~ion
• Qty. per Assembly
• Next Component Address
• Product Structure Scrap Factor
• Lead Time Adjustment
OUTPUT
• Component Items Plan Report
Gross Requirements
Net Requirements
Planned Orders with Lot Size
Planned Orders with Offset
• Exception Notice
• Component Gross
Requirements
• Planned Orders
53
Plan Orders
If desired, the netted requirements that have been
generated may be lot-sized. The item master
record contains the order policy that is pertinent to
that item and upon which quantity decisions are
based. Lot sizing of netted requirements is accomplished as follows:
1. The net requirements, by period, are compared to the item's order policy.
2. The first period containing a net requirement
establishes that a planned order, on the basis of the
type of ordering policy involved, must be initiated.
3. If the order policy is a fixed quantity, the
order is planned and is then reduced by the net requirements by time period until the planned order
quantity has been reduced to zero (at which point a
new planned order is generated) or until all net requirements have been satisfied by the planned order.
If the order policy is a calculated order quantity,
the net requirements are accumulated by time
period, and the lot size is determined by comparing
fixed costs (setup costs) with variable costs (accumulated unit carrying costs). The size of the order
quantity is established when the variable costs exceed the fixed costs. This procedure is repeated
until all net requirements have been satisfied by the
planned orders.
In many cases, the order policy does not satisfy
the complete restrictions that should be applied to
lot sizing. To further define other considerations
when lot sizing, modifiers are applied to the order
policy. These can include number-days-of-supply
to restrict the number of days that an individual
order quantity should cover, minimum-maximummultiple quantities to achieve upper and lower
limits as well as rounding an order quantity, and
cutoff date to restrict the number of time periods
of the total order policy. Both order policies
and modifiers are unique to an item.
4. Lot sizing is done level by level, and the lot
sizes from a higher level become the input for exploding and netting of later levels.
5. The output from this phase consists of a
report showing the item numbers, quantity, and due
date for the lots required to be ordered.
Offsetting
This phase of the subsystem offsets the lot-sized net
requirements in time, level by level, to establish
the proper time relationships between the scheduled
due dates of top-level items and their components.
Offsetting is accomplished in the following
manner:
1. After the top level is netted and lot-sized,
the lot size quantity (planned order) is offset by
54
considering the lead time for the item. This is accomplished before posting the offset planned order
to its components. The offset planned order is then
stored in the item master.
2. The offset plan orders become the gross requirements of the next level by extending the plan
orders by the usage located in the product structure
record for each component. The component gross
requirements may be adjusted by a product structure
scrap factor that is applicable only for a specific
component when assembled to a specific parent item.
In addition, a product structure offset adjustment
can adjust the lead time of a component gross requirement to more accurately relate the required
date that the component must be available in order
to be assembled to a specific parent item. This
level is then netted, the lot size is determined, and
the correct offset is applied before posting the requirements to the fol1owing level. The offset planned
order (lot size) is stored in the item master.
3. This processing continues until al1 levels have
been completed.
4. Each item is checked to determine whether
the required lead time (offset) fal1s into the current
period. If it does, an exception notice is prepared.
5. The output consists of a report to manufacturing and/or purchasing, showing item number, quantities, and due dates for the items requiring attention;
al1 planned orders are stored in the item master.
Requirements Alteration
The purpose of this phase of the module is to update
the requirements, because of changes in forecasts
or customer orders, without necessitating a complete regeneration of requirements.
The input to this phase is a revised forecast or a
change to a customer or shop order that has previously been introduced to the system. The input
consists of item number, quantity, due date, and
(if applicable) customer or shop order number.
If a forecast is changed, either plus or minus,
the new forecast for the period involved is compared
to the previous forecast quantity for the p~riod. As
a result of this comparison, the difference between
the two is used to update requirements planning.
ReqUirements alteration to a forecast is introduced via a transaction card containing the transaction code, item number, quantity, and due date.
Code "RF", for example, may indicate that a revised forecast is replacing a previous forecast.
Any requirement change that affects planned
orders (not released orders) updates the planned
order record contained in the item master.
Depending upon the type of change involved, the
new gross requirements are placed in the item
master record, and the altered quantity is processed
through the netting, lot sizing, and offset routines.
Requirements alterations can be introduced at
any level; however, if increases in item requirements are being introduced, they are normally
started at the top level. The differences between
the original forecast or planned orders requirements
and the newly calculated requirements are reflected
(Plus or minus) as changes to the next-lower level's
requirements.
Any requirement alteration that affects a released
order already entered on the item master record
causes an exception notice with a "reschedule order"
comment.
An example of these exception notices is shown in
Figure 37.
#
Transaction
Quantity
Due
Period
Order
No.
A
CW
100
6/17
75
Item
Date
5/12
Approved
]S
Transaction Codes
WO = Work Order
CW Cancel Work Order
PO = Purchase Order
CP = Cancel Purchase Order
RF = Revised Forecast
=
Figure 37. Exception notice -- cancel work order
Conversational Planning
The purpose of this method of processing is. to allow
"interruption" of the requirements planning subsystem after each level of planned orders has been
developed. The planned orders may be review~d
for possible adjustment. Only the adjustments are
"reentered" into the system. The proper planned
orders stored in the item master record are changed
before all previously planned orders are extended
and posted to their components.
Conversational planning facilitates ease of review of the planned orders that have been developed
according to their order policy and modifiers.
Planned orders must be stored to use this method of
processing.
A report is prepared for each planned order that
has been adjusted showing all the planned orders for
an item after the adjustments have been made.
Conversational planning and requirements alterations can be used together. When a requirements
alteration affects an item's planned order that has
been adjusted by conversational planning, the planned
orders are not changed. This is done because the
system has no way of lmowing what order policies
were applied outside the system. In this situation,
to facilitate review, a report is produced showing
the planned orders that have been adjusted by conversational planning and the planned orders calculated by the system as a result of the requirements
alteration.
Pegged Requirements
In many situations, it is important that information
be available from the system to show on which item
the component is immediately used, as well as on
which top-level item it is used.
Pegged file information can prove valuable in
determining which subassemblies, assemblies, and
finished products (with related customer orders)
will be affected because of a shortage of a pegged
item. The rapid retrieval of this information enables management to make deciSions regarding purchasing, expediting, or informing customers in
advance of delays. Figure 37a shows how gross
requirements of item number 24567 can be pegged
to three detail records.
The pegged requirements file is an extremely
volatile file and is updated any time there is a change
to a gross requirement - in quantity, dates, change
in customer usage, deletions, or new additions to
gross requirements.
Since the pegged requirements file can be large
and must be maintained, it is important to determine
when the pegged file should be created in a production information and control system. In many cases,
this decision is dictated by the ultimate use of the
pegged file. The creation of the pegged file is discussed in the requirements planning subsystem to
illustrate how the pegging can be performed.
Pegging can be accomplished in the following
manner:
As gross requirements are developed, and as
each level is exploded, a pegged requirements file
is generated. The gross requirements that are not
associated with a customer or shop order number
can be carried as pegged requirements, with no
customer or shop order number assigned; however,
all other information associated in the record is
carried - that is, immediate use item number,
quantity, due date, ultimate use item number, quantity, and due date. In place of the customer or shop
order number, an appropriate identification is used
to relate it back to its forecast source. As firm
customer or shop order numbers are generated,
they are input to the system as transactions containing the follOwing:
• Item number (top level)
• Quantity
• Due date
• Customer or shop order number
55
These items are then compared by item number
and due date to the due date of the forecast gross
requirement item. Then, the customer or shop
order number is inserted in the record, and a new
forecast pegged requirements record is generated
containing a quantity that has been reduced by the
amount of the firm order.
The output from this routine is a pegged requirements file that can be accessed from the item master
record.
A customer may not wish to keep pegged requirements on all parts, but rather, only on those that
are critical to his operation or on those items that
have a high cost value. Therefore, options are provided to use time buckets on other items and, in
some cases (nuts and bolts), just a single total
bucket in the item master record.
SUBSYSTEM SUMMARY
The requirements planning subsystem consists of
two basic modules:
1. Gross to net - finished products
2. Gross to net - component requirements
And four routines:
1. Plan orders (lot sizing)
2. Offsetting
3. Requirements alteration
4. Conversational planning
The basic inputs are time period forecasts or
customer order, inventory balances, and ordering
factors. In addition, the bill of materials file is
required to provide for the necessary explosions.
ITEM MASTER
Item
No.
24567
Gross Requirements
Date
200
Qty.
e
Address
to
Pegged Requirements
etc. _
Detail
Pegged Requirements
Part No. Requirement
This
Part No.
24567
24567
24567
Figure 37 a.
56
Qty.
B
G0
B
Sched.
Due Date
Qty.
Sched.
Due Date
Part
No.
Finished Product Use
Sched.
Cust.
Due
Order
Qty.
Date
No.
Immediate Use
Part
No.
Prod.
Order
No.
~
200
10116
10
250
23208
10
270
456
4723
200
47970
25
260
93066
25
275
654
5125
200
12234
30
280
77002
15
300
110
5517
Pegged requirements record keeping
The processing of these modules has certain
options. A customer may wish to determine only net
finished products, or he may wish to determine, in
addition, the gross and net component requirements.
He mayor may not wish to provide for lot sizing,
level offset, requirements alteration, or conversational planning.
The modules are summarized in Figure 37b.
SUBSYSTEM: Requirements Planning
DATA BASE
MODULE
NAME
INPUT
PROCESSING
ROUTINES
RECORD
TITLE
Net Finished
Product
Requirements
• Finished Product
Forecast. or
Orders obtained
from Forecasting Subsystem
(as Gross
Finished Product
Reqs. - Module 2
of Forecasting.
or its su bstitute)
• Gross to Net Item Master
Order (lot)
sizing
Offset Reqs.
• Requirements
Alteration
• Conversasational
Planning
Net Component
Requirements
• Net Projected
Finished Products (From
Module 1)
• Adjustments
• Gross to Net Item Master
• Explode to
Next Level
Order (lot)
Sizing
Offset Reqs.
• Requirements
Alteration
• Conversational
Planning
RECORD FIELDS
• Item No. / Description
• Gross Requirements
• Pegged Requirements
(a) Part No. Requirement
This Part No.
Quantity
Sched. Due Date
(b) Immediate Use
This Part No.
Quantity
Sched. Due Date
(c) Finished Product Use
Part No.
Quantity
Sched. Due Date
Customer Order No.
Production Order No.
• Low- Level Code
• Planned Orders
• Order Policy
Order Code
• Modifier Code
• Number Days Supply
• Maximum Quantity
• Minimum-MaximumMultiple Quantity
e. Cutoff Date
• Inventory On Hand
•. Allocated Qty.
• Safety Stock
• On Order-Purchasing/Production
• Lead Time
Purchasing
Production
• Unit of Measure
• Shrinkage Factor
• Type of Item
• Item No./Description
• First Assem bly Component Address
• Low- Level Code
• Next Item in Activity Chain
• Run Activity Control No.
• Gross Requirements
• Planned Orders
• Order Policy
Order Code
OUTPUT
• Finished Products Plan Report
Gross Requirements
Net Requirements
Planned Orders with Lot Size
Planned Orders with Offset
• Exception Notice
• Pegged Requirements Listing
• Planned Orders
• Component Items Plan Report
Gross Requirements
Net Requirements
Planned Orders with Lot Size
Planned Orders with Offset
• Exception Notice
• Pegged Requirements Listings
• Planned Orders
• Component Gross
Requirements
• Modifier Code
• Number Days Supply
• Maximum Quantity
Figure 37b. Requirements planning subsystem summary chart (Sheet 1)
57
SUBSYSTEM: Requirements Planning
DATA BASE
MODULE
NAME
INPUT
PROCESSING
ROUTINES
RECORD
TITLE
RECORD FIELDS
• Minimum- Maximum - Multiple
Quantity
• Cutoff Date
• Inventory On Hand
• Allocated Qty.
• Safety Stock
• On Order- Purchasing/Production.
Item Master
• Lead Time
Purchasing
Production
• Unit of Measure
• Pegged Requirements
(a) Part No. Requirement
This P art No.
Quantity
Sched. Due Date
(b) Immediate Use
This Part No.
Quantity
Sched. Due Date
(c) Finished Product Use
Part No.
Quantity
Sched. Due Date
Customer Order No.
Production Order No.
/
Product
Structure
• Component Item No. Master Addr.
and Compare Portion
• Qty. per Assembly
• Next Component Address
• Product Structure Scrap Factor
• Prod uct Structure Offset
Adjustment
I
Figure 37b. Requirements planning subsystem summary chart (Sheet 2)
58
OUTPUT
CAPACITY PLANNING
INTRODUCTION
Capacity planning forms the base from which aplant's
detailed operational schedules can be developed. In
essence, it performs the job of long-range planning,
that is, taking the load of jobs to be run, plac ing the
jobs against the available men and machines within
the required time period, and developing start dates
in order to establish a leveled load pattern. Capacity
planning provides information far enough into the
future to permit judgments to be made regarding the
shifting of loads. Also, ample time is thereby made
available for corrective action, such as adding extra shifts, subcontracting work, purchasing rather
than manufacturing, adjusting manpower requirements, etc.
A capacity planner may also be used to simulate
plant operations. In successive iterations, using
different work center capacities (perhaps representing the addition or removal of machine tools or different sales forecasts or product mixes, priorities,
etc. ), the effect of changes on staffing, overtime,
and adding shifts may be examined. Similarly, with
an initial body of firm orders, information about the
effect of one or more proposed additional orders
may be obtained. The capacity required and/or the
cost of producing a pending order at several alternative due dates may also be investigated.
The capacity planner receives as its input the
item numbers, quantities required, and due dates
from a requirements planning subsystem and provides as output the leveled workload (planned
orders) required by the operations scheduling subsystem ..
The differences between scheduling programs
and a capacity planning program fall into three
categories:
1. Long-range planning. The capacity planner
concerns itself with long-range planning of plant
capacity. It does not furnish information regarding
the dating of operations, but rather the anticipated
load hours that will be imposed on the work center
some six, twelve, or more months into the future.
Basically, it addresses itself for use by plant managers who ask, "What can I build, and when can I
expect to have it shipped?" An operation scheduling
system addresses itself for use by shop foremen
who ask, "On which parts and operations should I
work today, and what are' their relative priorities ?"
2. Orders can be moved. Since capacity planning is resolving load conflicts a number of months
into the planning horizon, judgments may be made
today regarding which orders can be shifted to provide plant operating personnel with leveled workloads.
3. Gross loa:ding techniques. Since capacity
planning is not concerned primarily with the creation
of a daily designated list, the techniques may be of
a more gross nature. For example, if the planning
period is one month, the question to be resolved is
not the determination of individual operation start
dates, but rather how much of the total machine or
labor load hours will fall within the monthly periods.
The determination of individual operation start dates
(as opposed to order start dates) has less significance in long-range planning. Consequently, it may
be totally unnecessary from a system standpoint to
design a capacity planner to use a simulation approach. Simulation techniques furnish very exact
results, but are not realistic for capacity planning,
for several reasons:
• Planned orders are subject to change. Placing
a clock time of 10:30 a. m. on an operation six
months into the future is not meaningful.
• A simulator would require considerably more
data for its use than a capacity planner. A
capacity planner needs information regarding
total available labor or machine hours by work
center by period. An operations scheduler,
using a simulation technique, needs data regarding number of machines, number of shifts,
contention rules, overlaying and lot-splitting
algorithms, etc., and builds a model "to duplicate this situation by the system".
• In view of the span of time over which a planner
is concerned, it is essential that the detail that
does not contribute significantly to the quality
of the results should not be explicitly considered. For example, Q analysis would be a
typical operation scheduling output. Overload
analysis by work center would be a typical
capacity planner output with no information as
to the number of jobs in queues or the length of
such queues.
INFINITE LOADING
Working back from the completion date and using
estimated setup, process, move, and wait times for
each operation, the requirements planning subsystem
calculates an order start date without regard to
capacity. The start date is next used to load the
order into each department and work center. Underload and overload conditions are determined as work
center loads are accumulated.
Corrective action, such as extra shift, subcontracting, procurement rather than manufacture,
alternate routings, etc., may be taken. The fact
that other means are used to relieve the overload
(rather than rescheduling) has lead to calling this
practice "loading to infinite capacity".
59
The utility value of an infinite loader serves
several important functions:
1. It provides valuable information by which a
discipline can be established for releasing work to
the shop floor.
2. It provides information to a user regarding
action to be taken for long-range planning of facilities and manpower. A finite planner levels workloads, and thereby may move orders late if capacity
60
is not available. The unleveled or "raw" picture of
true plant conditions is therefore destroyed.
3. It furnishes a vehicle by which the user can
control the manner in which the worldoad profile is
leveled.
4. It provides a logical first step in implementing a total production control system. Data requirements - such as a master routing file - are
established, and file interrelationships are
solidified.
Figure 38 illustrates the relative time spans for
both the capacity planning and operation scheduling
subsystems.
The projected load profile (dotted line) is somewhat unpredictable and can be subject to constant
movement either earlier or later. Capacityplanning
considers only planned orders, as opposed to released
or committed orders. The load for released orders
extends a short period into the future and at some
point begins to falloff. The operation scheduling
subsystem moves orders from a planned category to
a released category. Shop floor control, on the
other hand, has the responsibility of creating shop
packets and other documentation.
OBJECTIVES
The implementation of a capacity planning subsystem
can solve many of the problems continually facing
production control managers. Chief among these
problems are excessive work in process, queues that
are too long, large volumes of work that are behind
schedule, and excessive lead times. It is not uncommon for 80 percent of the overall lead time of a
manufactured item to consist of wait and move times,
with only 20 percent consisting of processing time.
It is often reasoned, since a plant's capacity is
relatively fixed, that if a sufficiently long lead time
were attached to an item, it would get through the
shop on time. The effect of this reasoning is diametrically opposed to two of the basic objectives of
a good production control system. First, by starting
work earlier than necessary, work-in-process inventory is increased; and second, lead times are
considerably longer than they should be, thereby
compounding the scheduling problem and causing inventory safety stock to be unnecessarily high.
A point is soon reached where the volume of work
committed exceeds the shop's ability to perform.
The problem is further complicated by the uncontrolled flow of the workload through the plant. Late
orders become later, and on-time orders become
late. It is incumbent upon production control managers to control the input of orders committed to the
shop. To do this, they must be equipped with the
knowledge of the long-range effects of orders on the
available facilities.
The capacity planning subsystem is the necessary
tool to solve these problems. This subsystem:
1. Determines feasible order start dates. This
function determines the time periods in which the
order is scheduled to be started; however, if overloads are encountered, shifts are made to start the
order in an earlier time period.
2. Maintains workload summaries. As resource
requirements for orders are loaded into their respective work centers, the load hours imposed are
accumulated. At the completion of the run, a report
can be furnished that indicates the expected load
hours for each work center by time period.
3. Relieves overload conditions. This function
exercises control as to where to move loads most
advantageously when overload periods are encountered. Orders that can be shifted are placed in the
time periods that are least overloaded and that have
the best ability to absorb the load.
4. Substitutes work centers. This function exercises control as to where to place loads when
substitute work centers can be employed. As is the
case in many plants, alternate work centers exist
that can be put to use; they provide a greater advantage than incurring overtime or adding additional
shifts to existing centers.
The output of a capacity planning subsystem consists of output reports, as well as updated files.
Shop Floor
Capacity Planning
Feedjback
r
Load Projections
Load Leveling
-~--------------~------------------------------------------------
WORK
PROJECTED
<-0<1b
Released Orders
1 - - - - - Lead time
LOAD
PROFILE
/
/
Planned Orders
of longest ( released) j o b - - - - - - - ,
Operation Scheduling
Sequencing
Orders
1--------.----
Most Distant
Planning Horizon
J
Priority Hules
Figure 38. Range of production planning
61
The example in Figure 39 shows a planned order
schedule with part number, part description, order
. number, scheduled shop start and completion dates,
and the quantity associated with the order.
The planned orders that are scheduled to start
before the next planning run, when approved, can be
entered into the release cycle (see "Shop Floor Control"). This provides the necessary input for the
operation scheduling subsystem.
Figure 40 is an example of a work center load
report. The load hours represent a summary of all
orders that are affecting work center number 234.
This report may be used for labor and facilities
planning, and as the basis for making judgments for
shifting work to other time periods or work centers .
The second column indicates the period start, as
well as the number of working days in the period.
Capacity hours are broken down between desired
capacity (40 hours per week per machine) and maximum capacity (extra shifts and overtime). Load
hours ·are broken down between released orders and
planned orders; in addition, an indication is shown
of the amount of idleness in a period. The percent
of load relates to the desired capacity, and a pictorial "load-to-capacity" ratio is shown for rapid
visual scanning of the report.
Date
Planned Order Schedule
Component
Part/ Assembly
Number
Order
Number
Description
Scheduled
Start Date
Scheduled
Completion Date
Order
Quantity
4683 PN
CONSOLE
HOUSING
A976
650
672
25
4794 XL
CHASSIS
COVER
4720
641
65]
50
5269 RL
CHASSIS
BASE
5775
657
667
50
Figure 39. Planned order schedule
WORK CENTER LOAD REPORT
Work Center No. 234
Period
1
No.
Days
Dept. 347
Capacity
Maximum
Date:
Plant No.3
Load
First
No.
Mach
Present
1
210
5
2
80
100
70
2
215
5
2
80
100
20
Released
Planned
60
Load-to-Capacity Ratio
Total
Idle
70
10
80
Percent
0
100
88
xxxxxxxxx.
100
xxxooooooo
3
220
5
2
80
100
70
70
10
88
000000000.
4
225
5
2
80
100
60
60
20
75
00000000
5
230
20
2
320
400
250
250
70
80
00000000
6
250
270
290
20
2
320
400
400
400
20
2
320
400
60
2
1440
7
8
~
Figure 40.
62
L.---
------~[,./
Work center load report
_.
100
200
200
120
62
000000
1000
1000
440
71
0000000
-----
·
··
•
000000000000
-
-
which are stored in the item master record. The
module locates each master and extracts the planning order quantity and due date, in addition to item
indentification and other descriptive data. This
information is combined with and/or extended by
other data (for example, time standards, setup,
work center identification, etc.) obtained from the
standard routing file. It is used to construct the
planned order file for the scheduling and loading
module.
SUBSYSTEM FLOW
The capacity planning subsystem consists of four
modules, two that assemble and edit input, one
that prepares reports, and one that contains the
logic for the capacity planning functions (see Figure 41).
Module 1 (construct planned order file) uses the
results of the requirements planning subsystem,
Requirements
Planning
Subsystem
Item
Master
Standard
Routing
Modulp. 1
Construct
Planned
Order File
I -_ _ _ _ _ _ _~Planned
Order File
(Temporary)
Module 2
Determine
Work Center
Capacity
Work
Center
Master
Schedule
and Load
Work
Center
Master
Planned
Order FilE.
Time Period
Projections
of Planned
Order Load
Planned Order
Schedule
(Temporary)
Prepare
Reports
Work
Center
Load
Figure 41. Capacity planning subsystem flow
63
\
Module 2 (determine work center capacity) provides the other major input to scheduling and loading.
It locates each work center master record and determines the capacity available for planning. This
is accomplished by subtracting the load of released
orders from the capacity levels of the time periods
to be planned. The load imposed on the shop by
released orders is summarized in the work center
master record by other subsystems (that is, operation scheduling and shop floor control).
In addition, efficiency and capacity reservation
factors (for service or unplanned work) can be used
to modify the hours of available capacity for each
time period.
Module 3 (schedule and load) uses the planned
orders and work center capacity to aSSign start dates
for orders and to summarize the load for the work
centers. Capacity information can be used to level
loads by adjusting start dates of certain orders
and/or using substitute work centers, where appropriate. The results of this run are placed in
the work center file and in the planned order file.
Module 4 (prepare reports) uses the information
produced by module 3 that has been placed in the
work center master file and the planned order file to
prepare work center load, planned order schedule,
and other reports.
These reports are analyzed to determine whether
changes are necessary. Except under OOUSUal conditions, it is anticipated that most changes would
be for other than the most recent time periods.
Ideally, the extreme fluctuation of load for the most
recent periods would have been reduced gradually
through corrective action over the span of several
previous planning cycles. The planned orders that
are scheduled to start before the next planning roo
are placed in the release cycle when the plan is
approved.
MODULE DESCRIPTIONS
The modules of the subsystem are discussed separately. They are:
1.
2.
3.
4.
Construct planned order file
Determine w6rk center capacity
Schedule and load
Prepare reports
Construct Planned Order File
The principal function of this module is to prepare
planned order information. This is accomplished by
examining each item master record to determine
whether an order quantity has been posted as a result
of the last requirements planning run. When an item
master record is encountered that has one or more
planned orders, this module writes a record in the
planned order file. One record is generated for each
planned order.
The additional information necessary to describe
the order is obtained from the standard routing file
(which is located from the address stored on the item
master record). Work center identification and sequence, setup, and run standards (stored in the
standard routing file) are used to calculate and assemble the record for the planned order.
DATA BASE
MODULE
NAME
Construct
Planned Order
File
64
INPUT
• Planned Orders
(from Requirements
Planning Subsystem)
PROCESSING
ROUTINES
RECORD
TITLE
• Determine
Qty. and
Data Require- Item Master
ments
• Extend Routings on the
Basis of Lot
Sizes ReStandard
quired
Routing
• Determine
Work Centers Required
• Retain Work
Center Hours
Required
• Sort Orders
by Priority
RECORD FIELDS
•
•
•
•
OUTPUT
Item No.
Planned Qty.
Planned Date
Order No.
• Std. Routing-1st Opere Address
.Oper. No.
• Time Stds. -Set Up, Labor, Machine
• Work Center Where-Used Chains
• Address to Next Opere
• Move Time
• Planned Order
File (Work File
used by this
Subsystem only)
The quantity of the planned order is multiplied by
the tim e standards for the operations. The setup
time can be added to determine the total hours of
load for the work center. It may be advantageous to
calculate load figures for men and machines, and
allow the loading function to accumulate two classes
of totals for each work center.
The lead time for the order is also placed in the
output file. This factor can be obtained from the
item master or the standard routing file, and reflects
what has been experienced in the shop on previous
orders for this item based on average Q-times recorded for each work center, plus setup and run
time. It can also be the best available estimate, or
it can be calculated using a formula that arrives at
a value the manufacturer feels is realistic and
desirable.
Another important function of this module is to
determine a priority value for each order. This
value is used to arrange the planned order file in
sequence when scheduling and loading to finite
capacity: It ensures that the orders with highest
priority are processed first, thereby having the best
chance to utilize the available capacity.
Priority is important if the scheduling and loading
module is designed to adjust order start dates relative to available capacity. It can be a combination
of several factors, such as total cost, ratio of material cost to labor cost, or the fact that it is a part
for a particular product or customer, etc. However,
the probability is that a significant portion of priority
is determined by the degree of flexibility that exists
for order start date. In this way, orders that can be
moved to earlier periods are identified so that they
can be shifted when overloads develop.
The module combines the information from the
item master and the standard routing records to
prepare the planned order file, which is used as
iIiput to the schedule and load module.
Determine Work Center Capacity
This module uses the work center master records
and parameter cards to provide capacity information
for the schedule and load module. The information
includes work center identification and the available
capacity in hours for the time periods to be planned
(supplied by parameter cards). Other parameters
include the length and shop dates for each period,
plus an indic ation of any holidays, etc.
.The work center capacity is expressed as two
values - maximum and desired. Maximum capacity
can indicate a total reflecting a three-shift operation, seven days a week (or any other practical
limitation); while desired capacity is a lesser amount
indicating a normal or a preferred level of operation.
The capacity available for planning is determined
by reducing these amounts by the load that exists in
the work centers at the present time. This represents the load for released orders, that is, those
that are no longer to be considered for capacity
planning and that have been placed under the control
of the operation scheduling subsystem. The load of
the released orders is available from two other
subsystems - operation scheduling and shop floor
control. It is used to reduce the capacity for the
time periods covered by this load.
In addition, further reductions of capacity may
be specified to allow for unplanned work (for example, service orders), and to reflect the efficiency
of the work center. These calculations are performed by this module to produce the net hours
available during each time period for each work
center. A record is produced that is used by the
next module.
Schedule and Load
This module uses the work center capacity and
order description records, and provides the output
DATA BASE
MODULE
NAME
Detennine
Work Center
Capacity
INPUT
• Parameter Cards
• Work Center
Master File
• Option Specs
PROCESSING
ROUTINES
RECORD
TIME
RECORD FIELDS
OUTPUT
Work Center • Work Ctr. Identification
• Set Up Internal Option Master
• Available Hrs. by Period - Capacity /
Table
Labor/Machine
• Wrk. Ctr. Projections-Planned
• Set Up Work
Center Load
Order Load
Availability
Table
• Set Up Work
Area
• Set Up
Definitionof-PeriodSize Table
65
for preparing schedule and load reports. Orders
are assigned start dates on the basis of due date,
lead time, and the ability of the work center to accommodate the load.
The module performs various initializing functions, one of which is to construct a table of available resources. This is accomplished by reading
the work center capacity records (produced by
module 2) and retaining selected inform ation within
the computer. Provision is made for the accumulation of load hours for each work center and time
period. In addition, a shop date and duration is associated with each time period.
The next step is to process the planned order
file. The module reads the order record, deter. mines the start date using due date and lead time,
and relates this to the resource capacity table. The
load hours are added to the totals by time period for
each work center specified on the order. The accumulation of load is compared to the available
capacity for the work centers. If no o'verload
occurs, the order is dated and placed in the file for
writing reports.
When overloads occur, the processing can be
modified to include several additional functions.
Orders that have flexibility with regard to start date
can be shifted to earlier time periods. Each time
the load is adjusted to reflect the change in date. If
the overload were eliminated, the order would be
dated and placed in the report file. In some cases,
the overload cannot be eliminated, and the order
must be placed in time periods that exceed capacity.
Another function within the module can evaluate
and select the start date for the order that causes
the least amount of overload. This date is recommended even though capacity is exceeded.
There are two capacity levels - desired and
maximum. Therefore, moderate overloads related
to desired capacity may still be within an a9ceptable
range. Adjustments to capacity (for example an
additional operator) can be considered as long as
there is enough time to plan; or perhaps some of the
work may be subcontracted. The module can weight
overloads that approach maximum capacity higher
than those for desired capacity, thereby attempting
to keep the load as close as possible to desired
capacity.
The module can also provide for the poss ibility
of shifting the load to substitute work centers. These
work centers are identified to the module, which is
able to determine whether capacity is available in
the substitute work centers when overloads occur.
The logic can be so designed that substitution is selected before shifting the load to different time
periods. The output is coded so that the reports can
indicate the action taken.
When all the orders have been processed, the
load information for the work centers is placed in
the output file for preparing reports. In addition,
the total load data can be maintained on the work
center master file to provide a net change capability.
Changes to the planned scheduie are processed by
the module by adjusting the load stored within the
file. Additional reports can be prepared that reflect
the effect of the changes.
DATA BASE
MODULE
NAME
Schedule and
Load
INPUT
• Planned Order
File (Module 1)
PROCESSING
ROUTINES
• Determine
Work Center
Load Hrs.
Available
• Load Work
Center by
Machine or
Man-Hour
Load Requirements
• Substitute
Load
• Reverse Load
Hrs. (if "Net
Change" desired)
•
66
RECORD
TITLE
RECORD FIELDS
Work Center Planned Order Load
Master
OUTPUT
• UpdJted Work
Center Master
File
• Generalized
Report File
Prepare Reports
This module uses the output of the schedule and load
module and the work center master records to pre-
pare reports. Many variations can be produced,
depending upon the requirements of each company.
Two of these output reports and their uses have been
discussed under "Objectives".
DATA BASE
MODULE
NAME
Prepare Reports
INPUT
• Generalized Report File (from
Module 3)
• Report Types
Desired
PROCESSING
ROUTINES
• Format Output
• Extract Load
Data by Work
Center
• Extract Schedule Data
RECORD
TITLE
--
RECORD FIELDS
OUTPUT
• Work Center Load
Report by Period
• Planned Order
Schedule Report
• Extract Optional Data
67
SUBSYSTEM SUMMARY
.-The capacity planning subsystem was designed as a
tool for long-range planning. In some cases, the
subsystem executes management's policy with regard
to the selection of start dates, load leveling, shifting
of orders, and work center substitution; and it
suggests a plan for approval. In other in.stances, it
highlights conditions for judgments outside the computer. The significant point is that the subsystem
provides enough information and time for corrective
action. The modules are summarized in Figure 42.
SUBSYSTEM· Capacity Planning (Long-Range)
DATA BASE
MODULE
NAME
INPUT
Construct
Planned Order
File
• Planned Order
(from Requirements Planning
Subsystem)
PROCESSING
ROUTINES
RECORD
TITLE
• Determine Qty. and Data
Requirements
Item Master
• Extend Routings on the
Basis of Lot Sizes Required
• Determine Work Centers
Required
• Retain Work Center Hours
Required
Standard
Routing
• Sort Orders by Priority
RECORD FIELDS
•
•
•
•
Item No.
Planned Qty.
Planned Date
Order No.
.Oper. No.
• Time Stds. -Set Up. Labor.
Machine
• Work Center Where- Used
Chains
Address to Next Oper.
Move Time
• Parameter Cards
• Work Center
Master File
• Option Specs
• Set Up Internal Option
Table
• Set Up Work Center Load
Availability Table
• Set Up Work Area
• Set Up Definition-ofPeriod-Size Table
Work Center
Master
• Work Ctr. Identification
• Available Hrs. by PeriodCapacity /Labor/Machine
• Wrk. Cu. ProjectionsPlanned Order Load
Schedule and
Load
• Planned Order File
(Module 1)
• Determine Work Center
Load Hrs. Available
• Load Work Center by
Machine or Man - Hour
Load Requirements
• Substitute Load .
• Reverse Load Hrs. (if
"Net Change" desired)
Work Center
Master
Planned Order Load
Figure 42.
68
Capacity planning subsystem summary chart
• Planned Order
File (Work File
used by this Subsystem only)
• Std. Routine-1st Oper. Address
Address
Determine
Work Center
Capacity
Prepare Reports • Generalized Report
• Format Report Output
File (from Module 3) • Extract Load Data by
Work Center
• Report Types Desired
• Extract Schedule Data
• Extract Optional Data
OUTPUT
• Updated Work
Center Master
File
• Generalized
Report File
• Work Center Load
Report by Period
• Planned Order
Schedule Report
OPERATION SCHEDULING
INTRODUCTION
Scheduling involves assigning dates on which a job
is expected to start and finish. This procedure becomes complex because these start and finish dates
must be established for thousands of orders moving
through a plant at the same time, each contending
for limited production facilities, each dependent
upon prior and subsequent processing, and each
having a priority assigned but subject to change.
In addition, many things occur in a shop that constantly affect the sequence in which work is performed. These occurrences influence the schedule.
What appears to be a desirable sequence of operations today may be inefficient at a later date.
The schedule, and its execution, determine
whether orders are to be completed on time, the
amount of idle time for men and machines, and the
dollars tied up for work in process. Therefore,
the key factor in this area is the. development of
realistic schedules, plus a method for efficient execution.
OBJECTIVES
The principal function of an operation scheduling
subsystem is to provide information for various
levels of management, thereby assisting them in
maintaining an economic balance among the following
major objectives:
1. Meet the due date for orders.
2. Increase utilization of resources.
3. Minimize in-process inventory.
Specifically, the information must provide answers for questions similar to the following:
What jobs should be worked next?
When will the work be in this department?
What is the relative priority of the jobs?
What tools should be assembled?
What is the load for the work centers?
How much setup is required?
What is the current status of the jobs in the shop?
Should we plan for overtime tomorrow? --the
weekend?
To accomplish these overall objectives and provide useful information, the subsystem performs
the following:
1. For some short period in the immediate
future, it provides a list of jobs to be done at each
work center. For example, the list may be prepared daily, extending three days into the future.
This list specifies a preferred sequence, arrived
at by the use of a dispatching or sequencing rule,
while specifically considering the capacity available
at each work center. *
2. For the period covered by the dispatching list
discussed above, and for a somewhat longer period,
it indicates the load that is expected to arrive in the
work centers. For some work centers the expected
workload may be greater than what can be done using
the present capacity, in which case this information
is useful for decisions regarding the use of substitute work centers, alternate routing, or the use of
overtime.
3. It provides a means to estimate the completion time of each order.
4. It highlights late orders.
5. It provides an analysis of late orders indicating a ranking of work centers relative to the
number of late jobs in queue and the amount of time
these orders may have to wait in queue if adjustments are not made.
The system accepts information describing the
sequence of operations on each job or order, the
order's release date and due date, the operations
already completed, and the standard time for each
operation. In addition, shop capacity information
is supplied describing the number of machines or
work stations available in each work center in the
shop, by day and shift.
SUBSYSTEM FLOW
The operation scheduling subsystem consists of
three modules: (1) sequencer, (2) completion time
estimator, and (3) tool control (Figure 43). The
tool control module is discussed separately for ease
of explanation.
Data that describes the jobs to be done (open job
order file) and the capacity of the work centers
(work center master file), along, with the program
specifications, are entered into the sequencer
phase. Here, the contentions among jobs at the
work centers are resolved for a specified amount
of time into the future. The time period may be a
number of days (for example, ten), and is one of
the program specifications for this module.
A general discussion of the sequencer logic is
presented in the processing summary section. Output consists of a dispatch list, showing the order in
which jobs should be assigned at the work centers.
The frequency of preparing the list and the length
of time covered by it depend upon each manufacturer's requirements. For example, a list produced daily may contain information regarding the
*See Shop Floor Control with IBM System/360
(E20-0173)
69
Load Analysis
Module 1
Work
Center
Master
Dispatch
List
Sequencer
Late Order
Analysis
Queue
Analysis
Load Reports
Module 2
Completion Time
Estimator
Order
Progress
Tools Where
Used
Tool Usage
Module 3
Tool
Requests
Tool Control
Standard
Routing
Figure 43. Operation scheduling subsystem flow
next three days. The requirements are not necessarily consistent from run to run; therefore, information of this type must be a program specification.
Another output of the sequencer module is the
analysis of load for the various work centers. This
is included on the individual dispatch lists and can
be consolidated and summarized by department for
levels of management. The reports include the
number of jobs, the setup hours, and the process
hours for increments of time into the future, for
example, the next five days. The load figures are
subdivided into the amount in queue at the start, the
70
amount predicted to arrive, and the amount expected
to be completed during each period.
The completion time estimator module provides
information on a less frequent basis, for example,
weekly. It provides order status information with
an estimated completion date for orders, longerrange load reports, and analysis of queue times and
late orders. This information extends into the future
through the length of all orders in the file. The reports are illustrated and discussed in the output
section. The basic information used for these reports is available as a result of the processing performed by the estimator, which determines an
arrival time, a start time, and a completion time for
each operation not used in the sequencer module.
The tool control module is designed to overcome
such problems as (1) insufficient types of tools, (2)
insufficient storage facilities, (3) poor records, and
(4) jobs scheduled without regard for tool requirements. This module discusses the organization of
the tool master record. It also elaborates on tool
requests, tool reporting, usage recording, and tool
scheduling.
MODULE DESCRIPTIONS
Sequencer
Before specifying input needs, the manner in which
jobs traverse the shop is discussed briefly. Each
job is required to spend a certain amount of time at
each of a series of work centers in specified sequence
in order to accomplish its operations. When a job
arrives at a work center, it mayor may not have to
wait its turn before it can be processed, depending
on its relative priority among the list of jobs waiting
at the "'center. After it is processed, it is moved to
its next work center. This move usually takes a
significant amount of time. The minimum input requirements, then, are a description of the routing
for each job, the method of determining priority, the
availability of work stations and staff within work
centers, and information regarding transit times
between work centers. This section describes these
requirements.
Another factor that is usually required as input
for scheduling is an estimate of queue delay, that is,
the amount of time a job spends waiting in queue before being performed at a work center. A s stated
previously, the value of this factor depends upon the
load at the work center when the job arrives and its
relative priority within the queue. The technique to
be used in the operation scheduling subsystem eliminates this input requirement. Instead,' the queue
times are determined within the computer for each
job at each work center on the basis of the number
(and work content) of jobs to be performed, their
priority, and the capacity of the work center. *
The input data can be divided into three categories:
1. Order description
2. Work center description
3. General program information
Order Description
Each order is described by the following information:
• Order identification
• Scheduled start date
* See Improved Job Shop Management through Data
Processing (E20-6071)
.
• Due date
• Priority value
• List of operations in order of occurrence
Each operation must be described by the following
information:
• Operation identification
• Status -- code indicating status (that is, complete, run started, etc.)
• Transit time to next operation (optional)
• Setup time
• Run time
• Number of pieces
• Special action on this operation
a. Overlap with next operation
b. Assign more than one work station
c. Process at a substitute work center if overloads occur
The special actions are optional, and the methods
for implementing them are discussed in a later section.
It is important that the job or order information
be up to date. For scheduling to be efficient, the'
system must be given accurate information concerning the current status of each operation on each job.
The shop floor control subsystem discusses the
techniques for recording the latest status from the
shop floor.
Work Center Description
A work center is made up of one or more work stations. If a work center consists of more than one
work station, any work station is considered capable
of performing the tasks assigned to the work center.
The person who makes the assignment in the shop
makes the final judgment regarding individu~l job
requirements and machine capabilities.
In most situations the terms "work station" and
"machine" are synonymous. A work station may
require one or more workers to perform its tasks.
The following information must be supplied to
describe each work center:
• Total number of work stations
• Number of work stations operating for each shift
• Amount of overtime scheduled for each work
station in each period
• Average transit or move time from this work
center to any other in the shop (whenever the operation data contains a transit time, this time is
ignored)
• Efficiency--a percentage factor used to adjust
the amount of work assigned to the work center *
*See MOS-Dispatching, and Job and Cost Reporting Detail (E20-0062)
71
General Program Information
The most important general information is tb.e
-"priority rule", which is used by the sequencer to
resolve conflicts at work centers. Each operation
for each· job can be assigned a priority number,
which may be a function of many factors, such as:
• Time remaining to due date of job
• Number of operations
• Process time for the operation
• Value of the order
• An importance ranking (perhaps for orders for
a particular product group or a particular customer)
An example of a priority rule that can be used is
"slack per remaining operation". The difference
between the due date and today's date (or the start
date) is reduced by the processing time (setup and
run) for all remaining operations. This figure
(slack) is divided by the number of operations to obtain slack per remaining operation.
" "t (Due Date - Today's Date) - Processing Time
P rlOrl y
N um b er 0 f R emammg
""
0 peratlOns
"
In the formula above, the difference between due
date and today's date can be converted to hours before subtracting the processing time.
A significant point is that once a rule is specified,
the sequencer can recalculate the priority value for
each operation on the basis of the latest information,
and rank the operations at each queue automatically
as they become available.
Other program specifications include the choice
of runs to be performed at each iteration and the
length of time to be covered by them.
An input specification that is closely related to
the choice of runs is the choice of output reports.
The types of reports that can be provided are discussed in the following pages.
ProceSSing Summary
The sequencer has access to the files that contain
the latest information regarding the status of the
orders and the capacity of the work centers. This
data, along with various program specifications,
provides the input for this module.
The program imitates or simulates the operation
of the plant for some time into the future. This is
accomplished by constructing tables within the computer that represent the facilities on which the operations are to be loaded. This may be thought of
as a model of the plant. Operation records are used
to obtain information regarding the work to be done
by the model.
The program also records the passing of simulated time by using an accumulator or "clock",
72
which is set to zero initially and incr~mented as
events occur within the program. This enables the
program to assign arrival, start, and completion
times for operations as they are processed.
Basically, the procedure is as follows:
1. After various initializing functions have been
performed, the program sets aside three areas to
retain information regarding the work centers, the
work stations, and the jobs to be done. Thy work
center area allows the capacity by shift to be retained; the work station area allows for recording
the current assignment and the completion time of
each operation; the third area (jobs to. be done) informs the computer about the priority and availability of jobs at the work centers.
2. Initial assign:inents for work stations are made
by loading the operation currently being worked in
the shop or selecting the job of highest priority from
the queue (determined by feedback). The operation
identification, start time, and anticipated completion
time are recorded for each work station that is
assigned.
3. The work center with the earliest expected
completion time for a currently assigned operation
is examined, and the clock is incremented to coincide
with the completion time. If other jobs are in queue
for this work center, the one with the highest priority is assigned to the available work station. This
assignment information replaces that of the previous
assignment for this work station. Arrival time,
start time, and completion time for each operation
are recorded in the file so that the information can
be used later for reports.
4. The job whose operation was just completed
is assigned a move time to its next work center. A
specific move time may be indicated for the completed operation. If not, one may be indicated for
the work center where the operation was completed.
If neither is specified, an overall move time is used,
as given in the general program data.
5. The job is entered in the work center queue
for its next operation; its arrival time is determined
by:
Arrival Time
= Completion Time of Previous
Operation + Move Time
6. The next time at which something is expected
to o~cur is determined (for example, a job arrives
at a work center, or an operation is completed), and
the process described in steps 3 through 6 is repeated until the end of the planning horizon is
reached. As periods are crossed (that is, at the
end of each shift), each work center's availability
list is updated to reflect the number of work stations to be manned on the new shift.
The above procedure must be amended at times
to account for special actions. Three such actions
are described: (1) lap phasing, (2) assigning extra
work stations, and (3) substitution. The rules for
applying each are given below:
1. Lap phasing. This involves moving some of
the pieces of a lot to the next work center before all
pieces have been processed at a given operation.
The operation record specifies the maximum number of sublots into which the lot can be broken for
this purpose. Each sub lot requires a separate
move. The program can suggest a number of moves
and start times for the operations, considering
move time, setup and run times at both work centers, and the availability of work stations at the
next work center. The dispatching lists for both
work centers would reflect these recommendations.
2. Assigning extra work stations. Operation
input includes a multiple-machine code. The system interprets this to mean that additional machines
are to be used for this operation as they become
WORK CENTER
available. The dispatching list would indicate the
action that was performed within the system.
3. Substitution. This involves routing a job to a
work center other than the normal one for a given
operation. Three modes can be used: (a) it is
specified on input that this job is to use the substitute group, (b) the logic is to consider the priorities
of all jobs at the substitute work center, (c) the
program is to substitute only to prevent a work station from becoming idle. The substitution is recommended only if it results in getting the job to its
next work center earlier.
The primary results from the sequencer are a
list of operations to be performed at each work
center, and a projection of the load that is expected
to arrive at the work centers within the immediate
future.
The principal output from the sequencer is a
dispatching list (see Figure 44), which indicates thE'
SHOP DATE
DISPATCHING LIST
22045
PREVIOUS
611
NEXT
WORK START ARRIVAL
ORDER
SETUP RUN LOT
PART OPERATION
WORK
PRIORITY HOURS HOURS SIZE OPe NO. CENTER OPe NO. CENTER TIME
TIME
-NUMBER NUMBER NUMBER
50964 128765
020
172
2.5
11.0
50
010
14046
030
33047
8.0
AVAIL
50722 124888
040
184
1.7
5.6
30
030
08047
050
14046
8.0
AVAIL
50611 124111
060
196
.5
3.0 100
052
08049
070
33047
8.0
AVAIL I
50612 125001
040
204
1.8
5.9
75
030
10075
050
14048
8.0
AVAIL
50511 123321
040
162
1.5
4.0
50
020
12062
050
-
--"""'-
-"----
':JORK CENTER
---
08047 11.5
CODES
10.2
-~
':.JORK CENTER LOAD ANALYSIS
2204:';
SHOP
DAY OPS
IN QUEUE
ARRIVALS
SETUP
RUN
OPS SETUP RUN
611
25
48.6
180.7
17
612
31
52.0
191.2
8
613
24
45.8
174.3
614
22
41.8
615
23
43.9
~~
SCHEDULED
OPS
SETUP RUN
18.6 67.9
i1
15.2
57.4
9.0
42.5
15
14.2
59.4
12
13.1
53.0
14
17.1
56.0
1 71.3
10
14.0
67.9
9
11.9
62.3
176.9
16
10.4 72.6
12
16.4
64.0
-------
---
~---
Figure 44. Dispatching list with load analysis
73
order in which jobs should be assigned at the work
center. Each operation is described by order identification, operation number, priority, setup and
run time, and lot size. Additional information includes the previous work center, next work center,
and a start time that is used to sequence the list.
Some operations are available for assignment at the
start of the run, others are scheduled to arrive when
the previous operation is completed. The scheduled
arrival time, along with the transaction entry (for
example; expedite the move tothe next work center),
is also printed for the appropriate operations.
For each work center, the load hours divided
into setup' and run are summarized for five working
days into the future. For each day, there are
listed the load that is in queue at the start of the
day, what is expected to arrive, and what has been
scheduled to be worked.
A summary report, perhaps for each department,
can be prepared that would include the load information for the work centers within each department.
Totals by department would be included, in addition
to the data listed on the bottom of the dispatching
list. Capacity information, indicating the number
of work stations in each center, and the number of
men by shift that are available, can also be printed.
DATA BASE
MODULE
NAME
Sequencer
INPUT
• Release Orders
(Open Job Order
File)
• Parameters
Length of Run
Special Functions
• Capacity Data
(Work Center
Master)
PROCESSING
ROUTINES
RECORD
TITLE
• Initialization Open Job
• Original As- Order
signment
Summary
• Job Assignment
• Job Comple- Open Job
tion &
Operation
Detail
Transit
• Arrival Time
• Determine
Next Event
• Special Actions
Completion Time Estimator
Because the sequencer uses only the operations that
are expected to be in the work centers within a
specified time (for example, the next ten days),
many jobs would not be fully scheduled. Therefore,
the principal function of the completion time estimator is to predict the completion dates of these
jobs without considering the detailed contentions.
This is accomplished by calculating average queue
times for each work center and combining these with
the processing time and move time for each remaining operation of the job. The sum of move, queue,
and processing times is used to estimate a completion date for each operation, and for the order
(last operation).
The procedure is as follows:
1. For each work center, determine the priority
rating for all operations below which 25% of the
operations are contained. Similarly, determine the
priority rating corresponding to 50%, 75%, and 100%.
74
RECORD FIELDS
•
•
•
•
Order Number
Scheduled Start Date
Due Date
Job Priority
•
•
•
•
•
•
•
•
•
•
•
•
Operation Number
Work Center No.
Next Operation No.
Status Code
Move Time
Standard Hrs. - Setup
Standard Hrs. - Labor/Machine
Special Action Codes
Work Center Identification
Manned Machines by Shift
Work Center Efficiency
Move Time
OUTPUT
• Dispatching List
Sequence of Operation Load Analysis
by Work Center
• Summary by Department
These four ratings determine the end points of a set
of four priority categories. Every operation is
assigned to a category.
2. Summarize the queue times of the jobs at
each work center by priority category, and compute
the average queue time for each category. This is
done for all operations processed by the' sequencer.
Queue time is the difference between arrival time
and start time (these were determined by the
sequencer module).
The queue times from previous runs can be
retained and used to influence the times developed
during the latest iteration. Various techniques,
such as weighted average or exponential smoothing,
can be used for this purpose.
3. For each unscheduled operation, assign a
queue time for the work center involved on the basis
of the averages computed in step 2 above and the
priority (category 1, 2, 3, or 4) of the operation.
4. Estimate and record an arrival, start, and
completion time for each operation. The completion
time of the last operation is the completion time for
the order.
The information is available for analysis and the
preparation of reports.
The output of the estimator includes reports that
relate to order status, work center load, and analysis of queue time and late orders. Several of these
reports are illustrated in Figure 45.
The order status report contains a line of information for each order in the file. The order is identified by number and the item being produced. The
order quantity, scheduled start date, actual start
date, and the current and next work centers are
listed to indicate the current status of the order.
The remaining information describes what has to be
done and how the time between the report date and
the completion date will be utilized. The number of
operations to be done, standard hours remaining,
move time, and queue time are used to estimate the
completion date, which, when compared to the due
date, provides the number of days each order is
ear ly or late.
A detail listing, called a job progress report,
can include a line for each operation of every order,
or for late orders only. Such a list can consist of a
description of the operations, an estimated start
date, and an indication of the load hours, move time,
and queue time for each. For completed operations,
the actual start and/or completion date would be
available.
The work center load report illustrated in Figure
45 can specify capacity information, along with the
expected load. For each work center, the number
of work stations, the staff by shift, and the hours of
capacity are listed. The accumulation of the setup
and run time for jobs that have an estimated arrival
date within each period is printed and compared
against the capacity for each period. The last column
is the available capacity (plus or minus) for the work
center.
This report can be prepared in several versions
using different techniques for arriving at load accumulations. For example, one report can list the
load on the basis of order completion dates as provided by the estimator. Another report can be prepared that accumulates tbe load on the basis of
changing the operation dates for orders that were
'estimated to be late. This can be accomplished by
removing the estimated queue and move times (or
portions thereof) to get these orders back on schedule. The variation in load can be examined to determine the effect that expedite action for these orders
would have at the various work centers. This information can give an indication of capacity adjustment
(that is, overtime) that may be necessary to meet
the due dates.
ORDER STATUS REPORT
SHOP DAY 610
ORDER
NUMBER
50964
START
ORDER
ITEM
NUMBER
SCHEO.
laUANTITY
128765
50
CURRENT W. C,
DATE
ACTUAL
608
606
NO.
QNT.
22045
0
NEXT
WORK
NUMBER OF' OPERATIONS
CENTER
TOTAL
33047
COMP,
5
STD.
4
QUEUE EST.
MOllE
REMAIN ING
REM,
1
HOURS
HOURS
16
28
DAYS
DUE
COMP,
HOURS
DATE
DATE
92
617
620
EARL.Y
3
WORK CENTER LOAD REPORT
WORK
CENTE R
NUMBER
STAFF
NUMBER
BY
OF WORK
STAT IONS
14 046
4
SHIFT
4
4
CAPAc ITY
HOURS
PER
ADJUSTMENT
CAPACITY
WEEK
(EFFie IENCV)
HOURS
2
4UU
NUMBER
WEEK
.120
80.0
SHOP DAY 610
LENGTH OF
PERIOD
SHOP DAY OF
PERIOD
PERIOD
START
IN WEEKS
1
610
1
1
615
2
L.OAD HOURS
LOAD
SCHEDUL.EO TO ARRIVE
SETUP
RUN
70
290
360
58
252
310
AVAILABLE
TO
PERIOD
TOTAL
CAPACITY
CAPACITy CAPAC ITY
320
1.12
320
.97
(HOURS)
4010
~v---.
QUEUE
WORK
CENTER
08 046
~~
17.5
2
26.4
3
32.7
ANALYSIS
SHOP
REPORT
4
42.8
1
15.4
2
25.2
3
30.6
DATE
610
ADJUSTED FOR ESTIMATOR
CURRENT SEQUENCER RUN
PREVIOUS ITERATIONS
1
TIME
4
41.8
1
16.8
2
26.0
3
32.0
4
42.1
~
Figure 45. Examples of estimator reports
75
The queue time analysis provides estimates of
the number of hours that operations are waiting in
queue. For each work center, figures are listed for
four categories of priority. This is accomplished
by arranging the operations in priority sequence and
assigning number one to the first 25%, number two
to the second 25%, etc. The difference between
arrival time and start time is the queue time for the
operation. The average queue time for each group
is calculated and printed on the report. The results
of the previous runs and the current run can be used
to provide adjusted wait times, which are used by
the estimator.
Another output is the late order analysis report.
The operations for these orders can be isolated and
processed to provide the number of operations and
the total queue time for the late orders at each work
center. An average queue time per operation is
calculated. In addition, for each work center, the
number of late jobs and the queue time can be
grouped with respect to periods of allowable overtime (specified as input). The days and the shift
on which overtime can be worked are entered into
the module. This information is used to subdivide
the operations into these time periods on the basis
of the estimated start time of each. This provides
an indication of the number of jobs and their queues
that can be influenced by the use of overtime at each
period.
DATA BASE
MODULE
NAME
Completion Time
Estimator
INPUT
o Open Job Order File
(Includes result of
last sequences run)
PROCESSING
ROUTINES
RECORD
TITLE
• Determine
Priority
Ranking
• Summarize
Queue Time
• Assign Dates
• Order Status
Reporting
• Load Reports
• Late Order
Analysis
Open Job
Operation
Detail
Work
Center
Master
Tool Control
Module Flow
The routines for this module are illustrated in
Figure 46.
Requests to the tool crib for tools for specific
operations are triggered by the output of the operation scheduling subsystem. This may be the dispatching list or other documents that are used for
locating tools in the crib and reporting back to the
system the action performed relative to the request.
The reporting may be done on an exception basis,
that is, reporting only when tools are not available
or when more than one tool exists of a particular
number and usage and/or location is recorded within
the system.
On a cycle basis or in response to specific requests, complete where-used information for tools
can be provided. The where-used information would
specify all operations within the standard routing
file for which a tool is used, or it could be restricted
to the where-used within the open job order file,
which provides the specific usage of tools in the
immediate future.
76
RECORD FIELDS
•
•
•
•
•
•
•
•
•
•
Operation Number
Work Center No.
Next Operation No.
Status Code
Move Time
Standard Hrs. -Setup
Standard Hrs. - Labor/Machine
Special Action Codes
Move Time
Manned Machines by Shift
OUTPUT
• Order Status Repan
• Order Progress
Report
• Queue Time
Analysis
• Load Repons
• Late Order
Analysis
Reports highlighting unavailability of tools and
delay of operations can be summarized to assist in
determining the need for additional tools.
Maintenance codes, in conjunction with usage
information accumulated on the tool record, can
provide recommendations for tool maintenance that
do not conflict with imminent tool usage.
Organization of Records
Tool information is concerned primarily with the
tool master, the standard routing, and the open job
order files. Each series of operations in the standard routing file is related to an item master.
Figure 47 illustrates the r~lationship among the
toolmaster, the standard routing, and the open job
order files. The standard routing has the identification of the tools that are used in conjunction with
the operations. This provides complete tool usage
information, as every operation in the standard
routing file carries this information, whether an
order is active or not. Conversely, each tool master has access to complete where-used information
via the standard routing file. This is provided by a
Tool Control Module
Tool Request
Tool Reporting
Usage Recording
Tool Scheduling
Analysis
Tool
Requests
Tool
Usage
Where
Used
Figure 46. Tool module flow
series of references, starting with each tool master
and identifying each operation that uses the tool.
When orders are released, the information in the
standard routing file is modified and appended to
reflect the specific order number, due date, quantity, etc., and placed in the open job order file.
The tool relationships are preserved, thereby providing current tool usage and where-used information for open orders.
Processing Routines
Tool request. As jobs become available or are
scheduled to arrive at a work center, a request for
tools is made. The method employed to request
tools from the tool crib(s) depends upon the amount
of tool information stored within the system and the
degree of control the user would like the module to
exercise.
77
Master
Tool
No.
Description
No.
of
Tools
Status
Orig. Tool
Order
I----.--~--il
No.
Qty.
Cost
D
C
E
0
T
A
I
L
-
Serial
No.
D
E
Location
Cur.
Crib
Ope
Assign'mt
Accum.
Usage
Where Used
Std.
Rout.
Open
Job
Order
Standard Routing
Operation
No.
Address
to
Item
Master
Operation
Definition
Deser.1
Wrk.
en.
I
Mach.
Time
Standards
Tool Information
Code
Next
Usage
Tool
Number
:.:
Open Job Order - O.per.aticm
Work
Center
Order
No.
Item
No.
Tool Information
Opere
No.
Description
Actual
~--~------~-----~
I------r-------~
Start
Complete
Code
Next
Usage
Tool
Number
Present
Opere
This
Opere
Next
Opere
1------.---1
Wrk. Ctr.
Ope
#
Figure 47.
Relationship of tool records
One type of tool request could be the dispatching
list furnished by the operation scheduler, which
could be modified to include tool requirement codes
(Figure 48). Tool crib personnel would assemble
the tools and report the availability (or unavailability)
of tools to the system. Tools could be assembled
from lists maintained outside the computer, e. g. ,
the tool crib.
When tool information is added to the standard
routing file, the tool request can include more information. When orders are released, the records
in the standard routing file are used to construct the
open job order file. This file has access to the
same tool information. Thus, as a job is scheduled
to start, a request for tools can be prepared. The
request contains order and operation identification,
78
work center number, and a list of the tools required
to perform the operation
The dispatching sequence furnished by the operation scheduler is scanned to determipe the jobs that
require tools and that are due to start in the near
future. A document is prepared for the tool crib
to assist in locating the tools and to provide a means
for reporting back to the system.
A special list (or a series of forms, or punched
cards) can be prepared that is based upon the dispatching sequence and that consolidates the tool
requests in a more useful sequence for crib personnel (see Figures 48 and 49). If the location of the
tocH has been recorded and maintained by the system, the location also is listed. The individual
forms and cards constitute a working document for
OR"DER
PART
OPERATION
NUMOER
NUMEJER
NUMrER
PRIORITY
NEXT
PREVIOUS
SETUP
RUN
LOT
HOURS
HOURS
SIZE
T A -
SHOP DATE 611
DISPATCHING LIST
WORK CENTER 22045
OP. NO.
OP. NO.
W. C.
START
TIME
W. C.
TOOLS REQUIREO
TOOLS ASSEMBLED
ARRIVAL
TIME
CODES
50964
128765
020
172
2.5
11.0
50
010
14046
030
33047
8.0
AVAIL
T A
50722
124888
040
184
1.7
5.6
30
030
08047
050
14046
8.0
AVAIL
T A
50611
124111
060
196
.5
3.0
100
052
08049
030
33047
8.0
AVAIL
T A
8.0
AVAIL
T
11.5
10.2
T A
AVAIL
T
50612
125001
040
204
1.8
5.9
75
030
10075
050
14048
50511
123321
040
162
1.5
4.0
50
020
12062
050
08047
50
REQUEST
TOOL
51
ORDER
V
NUMfiCR
PART
OP.
NUMBER
NO.
237784
3125
2
ceNTER
1400
1000
8.9
NEW
TOOL
WORK
OEPT.
IOENT IPleAT ION
LOCATION
./
LOCATION
611
15 09
1862377
OATE
v-'
V~
DATE
RECE IVED
"CT"""CO
~
J"-~~V
~
Figure 48. Request for tools
tool assembly, that is, they can be used as a pullin!:,
list and for control over the return of tools to the
crib when the job is complete. The individual card
has the added utility of being a turnaround document
for reporting back to the system.
The operation record in the open job order file
3 1 25 237784
Shop
Order
Number
Part
Number
2 1 4 00 1000 00018623 77
Operation
Dept.
Number
No.
0000 000000 .1 0 0011
I l l ' S • , I I '1 nil
is coded to indicate that a tool request has been
issued, thus ensuring that multiple requests are not
prepared.
In a plant where remote terminals are used for
two-way communication between a central computer
and the tool crib(s), these documents can be pre-
Q Ml$tSn
Work
Tool
Center
Identification
1 509
Suffix Number 01 Tool Assigned
Date
Location
Number
Dill IIIDOODDDD ~OD 0010
1II11lOlI l1321l5111121l1lO J1 ~13J1 J5J13131
1111 111111 111 1111 II I I 1111111111 r 11 1111
Delivered
Received
Returned
2212 122222 22. 2222 2 2 2 2 2222221222 ~22 2222
13ll llllll III llll 3 III lllllllill III 3 l 3 l
4444
444441 ~44 4144 4444 4444444444 .44 ~ 4 44
Comments:
555. 555555 ~55 5555 5555 5555555555 ~ 5 5 ~155
6666 666666 ~ 6 6 66 6 6 6 6 6 6 6666616666 ~ 6 6 ~ 6 6 6
Shop
Order
Number
Partll
Number
I
Operation
No.
Dept.
No.
Work
Center
No.
Tool
ktentificotion
II
Sulfix
Lae
I
9 9 9 9 999999 ~99 9999 9999 ~999999999 99 9 999~
I 2 1 • S • , I I 10 III U 111$1111 . . . lOlI ~1324n2ln2l1llOl1 121114 J5J1lJlI
_lOll
Figure 49. Tool request card
79
pared as needed at the crib. In addition, the terminal provides the means to report tool activity back
to the system on a more timely basis.
Tool reporting. There are several points where
tool activity is reported to keep the files up to date.
The module provides for tool availability (or unavailability), maintenance and repair, and location
reporting.
Tool availability reporting relates to the request
to the crib for tools used on a specific operation.
This may simply be a positive or a negative response
for scheduling and tool usage recording. If negative,
an indication of the specific tool number and the
time it will be available is included.
If usage information is being recorded for measuring tool life, and more than one tool exists, the
specific number of the tool assigned is necessary to
update the correct tool record. The reporting can
be accomplished on an exception basis in conjunction
with tool scheduling, which assigns the specific tool
number. Crib personnel report only when they are
unable to use the tool requested.
Reporting of tool availability provides the system
with the data to update usage, highlight the tools
causing delays, and assist in scheduling operations.
Availability reports from the shop noor are used
to locate the specific operation record in the open
job order file, and the specific tool record for the
operation. The operation record is coded for tool
availability, or it is placed in a hold state if the tool
is not available. The tool record is updated to reflect the job on which it is being used or the reason
it is not available. For unavailability reports, the
date the tool will be available and the location should
be included. The routines check for and report discrepancies; for example, a tool is reported in use
on a completed operation, or a tool that is coded for
repair is reported in use. These exceptions are
listed on a report for verification.
Another point of reporting tool activity occurs
when tools are sent out for maintenance and repair.
A date for the expected return, the new location,
and a code are recorded on the specific tool record.
When the system is informed of the tool failure, it
can examine the current where-used information
(open job order - operation detail) and list the jobs
that require the tools. This information is available
to the operation scheduler for preparing the dispatching list. It does not schedule the job to start
until the tool is available.
When the system is informed of repair or maintenance of tools, it places this information in the
tool master file. The new location, status code, and
expected return date are recorded for the tool specified. A list of operations from the open job order
80
file can be prepared to determine the effects on the
schedule.
Location reporting enables the module to record
and retrieve this information for operating personnel. Tool requests can indicate where the tool is
stored or the work center at which it is being used.
If tools are returned to the same place in the crib,
location is reported only when the tool must be
stored elsewhere. Location is provided as input
when the tool ,master is added to the fi~e, and it is
not changed until a new location is supplied by the
tool crib. When the tool is in use, its location is
the work center in which the job is being performed.
Usage recording. Some tools require usage information to determine their status relative to expected
tool life (time between tool resharpenings or tool
replacements). There are several methods of recording usage, and a company may employ one or
more of these within a plant, for example, elapsed
time, actual cutting time, etc. Therefore, the tool
control module provides for an accumulation of
usage and a code to identify the method. Eachoperation that requires the use of this tool may also have
a factor and code to complete the reconciliation and
updating. For illustration, assume the tool life is
measured in hours of actual cutting time. This
would be coded and stored on the tool master. In
addition, each operation would have an indication as
to how pieces, elapsed run time, etc., can be converted to the unit of measure on the tool master.
For example, the code may indicate an amount per
100 pieces, which would be used by the program,
in conjunction with pieces reported, to determine
the number of hours to accumulate in the usage field.
The accumulated usage information is checked
against the tool life to determine whether the tool
should be highlighted for action.
There may be several tools of a specific number.
Therefore, usage information is recorded for each
tool. This requires that reports to the system
identify the unique tool used, or that the tool number
assignment be made by the system at the time of
tool request. The people in the tool crib must use
the exact tool specified (or report back on an exception basis the number of the tool selected).
Analysis and exception reports regarding tool
usage and tool failures reported from the shop floor
can be prepared when tool usage reporting is a part
of the module.
Tool scheduling. When tool records are maintained
and updated, and they contain the current location
of the tool, a determination of availability can be
made before a request for tools. Jobs can be scheduled to minimize tool conflicts. This is accomplished
in conjunction with the operation scheduling subsys-
tem and the tool master records. The operation
detail records in the open job order file contain the
tool number (or pointer to a list of tools) needed for
each operation.
One level of control is to highlight tool conflicts
(that is, use of the same tool for different operations),
using the computer to arrange all multiple usages
of tools by date. The list contains the identification
of the jobs that are causing the conflict. Shop personnel can use this list for scheduling purposes,
assembling the tools for the job that best solve the
conflict. This may be done on the basis of the
priority of the jobs, or the processing time of the
jobs, etc. The final decision regarding where the
tools should be used rests with the people on the shop
floor.
The report identifies areas that require action.
Some jobs may be rescheduled, or it may be enough
to expedite the return of tools currently in use on
the shop floor. If additional information is needed,
a current where-used inquiry can be made. The
response would indicate all jobs in the open job
order file on which the tool is used.
Another procedure permits the operation schedules to make recommendations regarding the sequence in which jobs should be processed on the
basis of tool information in the file. Two jobs that
require the same tool for the same time are not
scheduled. The tool request lists the priority of
tool assembly and flags jobs on which tools are
needed elsewhere in the near future. This helps to
ensure the prompt return of tools. To assist tool
crib personnel, the request can specify the job on
which the tool is needed next.
DATA BASE
MODULE
NAME
Tool Control
INPUT
• Tool Availability
• Maintenance &
Repair
• Usage
• Location
PROCESSING
ROUTINES
RECORD
TITLE
• File Load and Tool Master
where used
• Tool Request
• Tool Reporting
• Usage Recording
• Tool Scheduling
•
•
•
•
•
•
•
•
'I
RECORD FIELDS
OUTPUT
Tool Number
Status
Number of Tools
Where-Used Standard Routing Open Job
Order
Location
Crib
Current Operation
Assignment
Accumulated Usage
Tool Life Estimate
Date Last Inspected
• Tool Requests
• Maintenance Recommendations
• Analysis of Tool
Usage
• Where-Used
Complete
Current
Open Job
Operation
Detail
• Tool Information
Code
Number or Address
Standard
Routing
• Tool Information
Code
Number or Address
SUBSYSTEM SUMMARY
The operation scheduling subsystem provides the
type of information and working documents that help
manufacturing companies control production more
effectively. The input, output, and data requirements for the modules are summarized in Figure 50.
81
SUBSYSTEM: Operation Scheduling
DATA BASE
MODULE
NAME
Sequencer
INPUT
PROCESSING
ROUTINES
RECORD
TITLE
RECORD FIEWS
• Released Orders
(Open Job Order
File)
• Parameters
Length of Run
Special Functions
• Capacity Data f:
(Work Center
Master)
• Initialization Open Job
• Original As- Order Sumsignment
mary
• Job Assignment
• Job Comple- Open Job
tion & Transit Operation
• Arrival Time Detail
• Determine
Next Event
• Special Actions
Completion Time
Estimator
• Open Job Order
File (Includes
result of last
sequences run)
• Determine
Priority
Ranking
• Summarize
Queue Time
• Assign Dates
• Order Status
Reporting
• Load Reports
• Late Order
Analysis
Tool Control
• Tool Availability
• Maintenance &
Repair
• File Load and Tool Master • Tool Number
where used
• Status
• Tool Request
• Number of Tools
• Tool Report• Where- Used
ing
Standard Routing
Open Job Order
• Usage Recording
• Location
Crib
• Tool SchedCurrent Operation
uling
ASSignment
• Accumulated Usage
• Tool Life Estimate
• Date Last Inspected
• Usage
• Location
Figure 50. Operation scheduling subsystem summary chart
82
•
•
•
•
Order Number
Scheduled Start Date
Due Date
Job Priority
•
•
•
•
•
•
•
•
Work Center •
Master
•
•
•
Operation Number
Work Center No.
Next Operation No.
Status Code
Move Time
Standard Hrs. - Setup
Standard Hrs. - Labor/Machine
Special Action Codes
Work Center Identification
Manned Machines by Shift
Work Center Efficiency
Move Time
Open Job
Operation
Detail
Operation Number
Work Center No.
Next Operation No.
Status Code
Move Time
Standard Hrs. -Setup
Standard Hrs. - Labor/Machine
Special Action Codes
Move Time
Manned Machines by Shift
•
•
•
•
•
•
•
•
Work Center •
Master
•
Open Job
Operation
Detail
• Tool Information
Code
Number or Address
Standard
Routing
• Tool Information
Code
Number or Address
OUTPUT
• Dispatching List
Sequence of
Operation
Load Analysis by
Work Center
• Summary by Department
• Order Status Report
• Order Progress
Report
• Queue Time Analysis
• Load Reports
• Late Order Analysis
• Tool Requests
• Maintenance Recommendations
• Analysis of Tool
Usage
• Where- Used
Complete
Current
SHOP FLOOR CONTROL
INTRODUCTION
Some of the major problems of production control
are caused by the lack of timely information regarding the status of production orders. It is important to know the orders that are on time, the
orders that are behind schedule, where the jobs are
at the present time, and the work centers in which
they have to be processed. In addition, exceptional
conditions (for example, excessive order costs and
unusual delays) should be highlighted for management action.
Many companies have thousands of orders at
various stages of production. It is almost impossible to keep accurate, up-to-date records for these
orders using a manual system. The major difficulties are (1) the great volume of information that
must be considered, and (2) the comparatively
small amount of time available before a decision is
necessary. Data processing systems are capable
of storing and processing the vast amount of data
required to maintain control of work in the shop.
The use of data collection equipment reduces the
time lag between an event and its recognition to the
point where the information and control system can
be as dynamic as the shop itself.
the open job order file are processed and recorded
within the system. Both areas are discussed in
more detail in the following sections.
SUBSYSTEM FLOW
The principal objective of the shop floor control
subsystem is to provide current information and
thereby assist management in its efforts to control
production effectively.
To accomplish this overall objective, the subsystem provides the documents necessary to identify the jobs and to report the progress of the work
on the floor. This includes the creation and maintenance of data processing records on which the
status is recorded within the system.
These functions can be divided into two areas-release of new orders, and order progress reporting.
With regard to the former area (release. of new
orders), the processing that is done before the release of an order to the shop includes the creation
of the open job order file and the preparation of reporting documents. Material requisitions, labor
reporting tickets, and move tickets are prepared in
addition to the routing sheet. *
With regard to the latter area (order progress
reporting), tHe transactions that affect the status of
The information flow for shop floor control is illustrated in Figure 51. Released order information is·
made available to an order release module to create
the open job order file and prepare the output documents. The item number on the input enables the
system to locate the item master and the standard
routing files. The input information, combined with
the data in the files, is used to produce the output
documents that accompany the material when the job
is released to the shop. *
As the work progresses through its stages of production, reports are made available to the system.
This information is used to update the open job order
file, thereby providing the current status for management and the other subsystems, for example,
operation scheduling. Audit listings a.nd exception
reports can be produced to verify the transactions
and to identify possible errors and/or trouble spots,
for example, insufficient quantity reported complete.
The method and frequency of collecting data in the
shop can range from gathering prepunched cards
(marked with variable data) at the end of the shift to
the use of IBM data collection equipment connected
directly to a central computer. The selection of the
method and frequency of data collection is an economic judgment to be made on the basis of the requirements of each company. This section places
emphasis on transactions and their relationship
with the files rather than on the method of data
collection.
The subsystem flowchart in Figure 51 indicates
the general relationship among the files. Before
discussing input, output, and processing for shop
floor control, the file relationship is presented in
more detail. Figure 52 illustrates some of the fields
within the item master, standard routing, work
center master, and the two sections of the open job
order file--order summary and operation records.
The item master file contains the address where
the standard routing information has been stored.
This is usedl wherever it is necessary to locate the
routing information for a particular item, as in the
case of order release.
The on-order quantity in the item master is supported by one or more open job order re·cords. The
*See Aerospace Information and Control Systems Shop Control (E20-8121)
*See Shop Floor Control with IBM System/360
(E20-0173)
OBJECTIVES
83
Shop Packet:
,,--------t
Material
Requisition
Item
Master
Module 1
Order
Release
Standard
Routing
Product
Structure
Exception
Reports
Module 2
• Order Summary
• Operation Detail
Open
Job
Order
Order
Progress
Order Status
Figure 51. Shop floor control subsystem flow
item master record has the order number of the
record in the open job order file (order summary)
that relates to this item. If more than one order
exists for an item, each order summary record has
the number of the next order for the item. In this
way, the record for every order for an item can be
located. Conversely, each item master record can
be located using the item number stored in the open
job order file.
The open job order file has two sections--order
summary, and operation detail. The order summary section has information that enables the system to locate the operation record for the current
work center. Each operation detail record, in turn,
specifies the location in the next work center, thus
providing the ability to Locate every operation detail
record for each order summary. In addition, the
operation records can be stored in sequence by
order number and can be located from input transactions that specify work center, order number, and
operation number.
Finally, the work center master file contains the
location of the first of a series of records in the
84
standard routing file. The standard routing records
contain the location of the next record for this work
center. In this way, all records in the standard
routing file are chained to a work center master.
Similarly, all operation records of the open job
order file are referenced to the master record for
the work center in which they will be performed.
These relationships make it possible for the system to locate the appropriate record as the input
transactions are processed.
MODULE DESCRIPTIONS
The modules of the shop floor control subsystem are
described by discussing the input requirements,
followed by a summary of the processing that is done
within the computer.
When the decision regarding the release of an
order has been made, the subsystem requires the
following information:
• Item number
• Quantity of the order
• Due date and start date of the order
ITEM MAS TER Fll.E
Address
of
Routing
Item
Number
First
Order
Quantity
On Order
I
I
,---I
I
______ --1
OPEN JOB ORDER Fll.E
ORDER SUMMARY
STANDARD ROUTING FILE
I
Work
Center
Operation
Description
Item
Number
Next Order
Number for
This Item
Shop Order
and
Item Number
Chain
Current
Work
L __________ 1
I
I
WORK CENTER MASTER FILE
I
I
First Operation
This Work
Center
First Operation
in Standard
Routing File
Work
Center
Number
_J
I
I
I
I
I
I
I
I
I
I
I
I
I
I
.1
I
1
,
Work
Center
Number
_-.J
I
OPEN JOB ORDER FILE
OPERATION DETAIL
I
I
-,
Order
Number
Operations for
This Order
Previous - Next
I
I
..
"I
I
I
I
I
I
+L ________ .J
Figure 52. File relationship
85
This information is available from the output provided by the requirements planning and capacity
planning subsystems, and can be used as input to
shop floor control after approval or modifications.
To report order progress, the following information is necessary:
• Order number
• Operation number
• Work center number
• Transaction code
• Transaction information
The requirements for transaction information depend upon the code and the type of reporting specified by each company when the system is designed.
For example, if the code indicates the transaction is
a labor report for the completion of an operation,
the additional fields may be employee number and
quantity. Another company may wish to include
machine number, start time, and completion time.
Fields of information that may be included on a
labor report are quantity, hours, start time, completion time, employee number, and machine number. These are in addition to the fields required to
identify and locate the records, that is, order identification, operation number, and work center number.
A move report may include, in addition to order
information, the work center from which the material has been moved, the work center where it is
now, and an identification of the employee reporting
the move.
Scrap reporting may include an authorization
code or number, in addition to the quantity. Any
special transactions involving the delay of work may
include codes for identification of the type of delay
(for example, tool unavailability or repair) and a
date when the condition is expected to be relieved. *
The routing sheet and the reporting documents are
prepared a certain number of days (ten is used in
this example) before release of the order to the production control department or the shop floor. This
provides time to determine material and tool shortages and allow the information to be entered in the
open shop order file for use by the operation scheduling subsystem.
Using the input that describes the order, the subsystem can locate the item master record and the
particular series of operation records in the standard routing file. For assembly orders, the product
structure file is available to prepare a parts list, in
addition to the operation data. The output summary
section includes examples of documents that are
prepared.
The output reports and the information for the
open job order file can be classified as heading
(order summary) and detail (operation ~etail). The
system, having read the item master and the first
record in the standard routing file, assembles the
information for the heading portion of the routing
sheet and the order summary portion of the open job
order file. Each operation record in the standard
routing file is used for preparing the detail on the
routing sheet and the entry to the operation record
section of the open job order file.
The records for entry into the two sections of the
open job order file are processed to insert the records in their proper position in the file and to ensure
that all cross-references are established.
The or:cter quantity specified as input is used in
conjunction with the time standards and shrinkage
factor on the standard routing to determine the load
hours for the operations. This information is stored
in the open job order file.
The cards to be inc luded in the shop packet are
punched at this time. The number of cards required
depends upon the method of data collection used in
the shop. If IBM data collection equipment is installed, an order identification card can be used
over and over at every point of reporting. Variable
information, such as quantity, is entered at the
terminal, combined with the card data, and transmitted to a central recording area. *
If cards are collected as part of the reporting
method, operation identification cards are produced.
Using this approach, cards can be punched as
follows:
• Job cards--adequate number to report the labor
for each operation
• Move ticket--one per move
• Issue card--one per type of material to be
issued.
• Receipt--one pe r shop order
Allocation of material and recognition of shortages may be done at the time the shop order is being
prepared for release to the plant. Some companies
may desire to allocate when the order is still considered to be a planned order. Provision can also
be made to incorporate the allocation procedure as
part of the capacity planning subsystem. In this way,
a somewhat longer time period would be available
for corrective action.
Basically, the processing for material allocation
is as follows:
The raw material item master record (or the item
master records for all parts of an assembly, as
*See Management Operating System - Dispatching and
Job and Cost Reporting - Detail (E20-0062)
*See IBM Data Collection in the Factory (E20-8076)
Order Release
86
determined by the product structure file) must be
checked for availability, and the requirements must
be added to the allocated field. If there is insufficient quantity, an output record is produced that can
be used to prepare shortage lists for the inventory
control department and/or the production control
department.
Management must decide upon the procedure to
be followed for shortages; for example, assembly
orders may be released regardless of the shortage
of certain items, while orders for fabricated parts
are held for action. If raw material is not available
in sufficient quantity, the order may be split or
rescheduled, or other orders using the raw material may be modified on the basis of the quantity of
new material available and the receipt date of any
outstanding purchase order.
The system can retain the shortage information
with a reference to the shop order that is being delayed. Receipts to stock, as a result of purchasing
or fabrication, would be used to identify the orders
automatically on which the shortages have been
eliminated.
The master records for the items on which shop
orders were released are changed to reflect the onorder status. The quantity (of the released order)
recorded as planned in the record is eliminated.
Each item master with quantity on order has a reference to the open job order file. If more than one
outstanding order exists for an item, the records in
the open job order file are chained.
The work center master is modified to reflect the
addition of the operation records for the newly released orders. The files are available to record the
status of the work in process.
DATE BASE
MODULE
NAME
Order Release
INPUT
• Order Release Data
(From Capacity
Planning)
Item Number
Quantity
Due Date
Start Date
• Changes to Orders
PROCESSING
ROUTINES
• Item No.
Master Update
• Extension of
Standard
Routing
• Construct
Open Job
Order File
• Prepare Shop
Order Allocation
RECORD
TITLE
RECORD FlEWS
Standard
Routing
•
•
•
•
•
•
•
Item
Master
•
•
•
Product
Structure
•
•
•
•
•
•
•
•
•
Order Progress
The reporting of order progress is summarized in
the open job order file. Such transactions as labor
reports, move tickets, etc., are entered into the
subsystem as ~nput. The order number, operation
number, and work center number provide the means
to locate the record to be updated. Depending upon
the transaction code and the fields of data that are
included on input, one or more fields in the file may
Item Master Address
Operation Number
Work Center No.
Time Standards-Setup Hours
Time Standards-Labor/Machine
Special Action Codes
Tool Information
Code
Number or Address
Item Number
Planned Orders
On Order-Production
Total Quantity
Address to Detail
Allocated Quantity
Standard Routing-First Operation Addres~
First Assembly Component Address
Current Engineering Change Number
Component Item Master File Address
Compare Portion of Component Item
Master
Next Component Address
Quantity per Assembly
Current Engineering Change Number
OUTPUT
• Shop Packet:
Routing Sheet
Labor Reporting
Cards
Material Requisition
Move Tickets
Receipt to Stock
Parts List for Assembly Orders
be changed. In addition, various edits can be performed to ensure that the information is reasonable
relative to what is expected; for example, the
quantity reported for an operation can be checked
against the quantity of the previous operation.
Transactions that do not pass the edit tests can be
highlighted for verification.
As an example of the processing, assume that an
operation card was marked with the quantity completed by the employee, collected, and keypunched
for entry in the computer.
87
When the card information is read by the computer, the open job order file is referenced. Both
the order summary and the operation record for
this order can be located and read by the system.
The quantity on the input transaction is added to
the quantity completed for this operation. The total
is compared against the quantity reported on the
previous operation to ensure that the second operation quantity is not greater than that of the first. If
this report is coded for operation completion, the
module can also ensure that the second operation
quantity is not less than the first by more than the
shrinkage or scrap allowance for the current operation. The status code is updated, and the operation record is returned to the file.
The information from the operation record is
recorded on the order summary and returned to
the file. The current operation and quantity fields
are changed to reflect the latest transaction. If the
operation is complete, the next operation number
and work center number are inserted on the order
summary. In this way, the order summary contains the latest information and is referenced to the
record that describes the operation currently being
processed in the shop.
If start and completion time were included on the
input, this would be posted in the operation record.
Cost information can also be accumulated in a
similar manner.
In addition to the file updating, a record of the
transaction can be produced. This would be processed for preparing audit listing and exception reports. It would also provide an automatic entry for
other application areas not discus sed specifically
in this manual, for example, payroll.
DATA BASE
MODULE
NAME
Order Progress
INPUT
•
•
•
•
Labor Reports
Material Moves
Scrap Reports
Exception Notice
(held for tool no.
drawing. etc.)
PROCESSING
ROUTINES
RECORD
TITLE
• Locate Open Open Job
Order SumJob Order
• Update Oper- mary
ation Record
• Update Order
Summary
• Edit Transaction
• Prepare
Output
Open Job
Operation
Detail
The output at the time of order release is the shop
order and cards for reporting progress. The shop
order or routing sheet states what must be done on
a product, assembly, or part, as well as where and
how it will be done. It specifies the quantity to be
produced and the material that is used. In addition,
88
RECORD FIELDS
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Item Number
Order Number
Number of Operations This Order
No. Completed Operations
Address to Operation Detail
Qty. Completed-Present Operation
Qty. Completed-Current Operation
Scheduled Start Date
Engineering Change No.
Current Work Center
Scrap Reported
Shrinkage Factor
Standard Material Costs
Labor Costs-Standard To Date
Job Priority
Work Center No.
Operation No.
Move Time
Scheduled Start Date
Actual Start Date
Qty. Complete-Previous Operation
Qty. Complete-This Operation
Qty. Scrapped
Status Code
Tool Information
Labor Costs
Standard/Actual
OUTPUT
• Exception Report
• Audit Listings
• Order Status
the path, sequence, and timing of the operations to
be performed and the machines required to accomplish these operations, are identified.
Shop orders are prepared for both assembly and
fabrication manufacturing. The assembly order
consists of bill of material listings, as well as an
operation routing. Illustrations of the route sheet
and the cards that are punched are included in
SHOP ORDER
PAGE #
FABD
Assy.D
SHOP ORDER NUMBER
DESCRIPTION
QUANTITY
ORDERED
ITEM NUMBER
DRA WING NUMBER
CLASS
OPERATION
NO.
SEQ.
NO.
PART-ASSY. OR
RIM NUMBER
OPERATION
SEQ.
NO.
NO.
DEPT.
250 011030
4001.
SendLDg
Dept.
Item
:";umbe.r
~umber
.........
0000000000 10"
I ! I I I & I'
~
I
I~
II'!!III
QUANTITY
OPERATION DESCRIPTION
WORK
JOB
CENTER CLASS
3125 237784
Shop
Order
UIM
MA TERIAL DESCRIPTION
STOCK
DATE
START
DATE
I
Dept.
Work
Center
I
:'I,ateri.J. Hl.ndler
Employee Number
I
~celving
SETUP
Dl.te
Delivered
REQUIRED
DATE
SOURCE
DELIVER
ST ANDARD-TIME
TRANSIT
RUN
I
I
I
I
Work
~
Center
!!!!~!!!:!~!~:~~~~~!~
o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O' 0 0 0 0 0 0
11111131114111 1311151& 1111
n
1111 I! 1111111111111' II 1111 ili4 II 111111 i91111111111111111111!U
111111 I I 11 1111 111111111111111111111 111111111111111111111111111111111111111111111
2212122222 2 2 2 2 2222
2222222222222222 222222222222222222222222222222222222222222222
roo-
,~
1333333333 3 3 3 3 333333333313333333333 333333333333333333333333333333333333333333333
n
,
I I
I
..
I
3125 237784
6 6 6 6 6 6 6 6 6 6 6 6 6 616 6 6 6 6 ~ 6 616 6 6 6 6 6 6 6 6 6 6 6 6 6
Shut>
Order
:-';umber'
Item
:-lumber
Scn~InS
Receiving
Mtl.
I
OeDt.
\\'ork
Center
Dept.
Work
Hand.
Center
Employee
I 2500 1030
Opu'
atioD
~umber
Dote
Deliv.red
Dept.
Work
~urnbcr
Cemer
No.
Employee
~v.
Pie~es
Stan llate
Sumber
Received
Machine No.
StutTlme
SlOp Tlme
SerupEmp:.;o.
Srop Date
3u.rt TI.l1'le
?ieceiComp.
Stop Ttme
putial CompletIon
I
Group Reporting
0000 o 0 0 0 0 0 110 0011010100000 o p g 0 o 0 0 0 o 0 0 0 o 0 0 0 0 o 0 0 0 o 0 0 0 o 0 0 0 o 0 0 0 0 o 0 0 0 o 0 0 0 For
Additioo.al Employee
Number
I! II 1111 110 11'!13 1IIIIIililllll!I!III!I!I!1 !l!11IID 31
~2
!J 34 3111111 I' 10 II I!
I~
JI1l4111 '1111011
~l
II II II 5111111110 illlilil 1111111
:-';umben
1111 111111 111 1111 1111 11111 1111 1111 1111 11 111 1111 1111 1111 11111 1111 1111
9939 999999 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9
\...
Item
Number
Shop
Order
...-
1111 I i I! 9 10 1111131' 1;11'111 II!I!I!! !11I!'.11 11I!11111 1!111411
2 212 122222 2 2 2 1222 2222 2 2 2 2 2 2222 2 2 2 2 2 2 2 2 22222 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
13 3 3 313 3 33 3 3 3 3 3 3 3 3313 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3
1.
0
..
]
2.
1.
~
n
:0.
44 4 4 444441 444 4 4 4 4 4444 444 4 4 4444 4444
4444 44 4 4 4 H44 4444 4444 44444 4444 4444
fi.
7.
L-
..
B.
5 5 51 5 5 5 5 5 5 5 5 5 5155 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5
..
6 6 6 6 666666 6 6 6 6 6 6 6 6 &6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6
Shop
Hem
Order
:'\umber
:.lumber
0peuoonReporun,ll
I
vpcrUlOn
t.io.
Dept.
Xu.
Work
Employee
Center
No.
SLut
Date
Sun
TIme
Pieces
Rcvd.
Setup
~eportlD~
~1ach.
S"'p
S[..lp
Pieces
Employee
SUrt
SlOp
Nu.
Time
Date
Camp
~o.
Time
Time
~o.
111111117111
888888888888
9919 9 9 9 9 9 9 9n 9 9 9 9 9 9 9 9 29 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 999999999999
\..
~
Figure 53. Shop order and reporting cards
I! II 1111110 "1211 IIlIIIl IIII!I!I 2! II !I
!~
li 1l1!1 II II! 1111 11111111 3111111111 1111111 ·1111111 11111111 1111111110 111;;]11 1;1'1111 1'1111121111111111111111
PR'NT
o IN
USA.
I
Figure 53. Note that all the cards contain the order
identification and the work center number where the
activity is to be performed.
In addition to the operation card and move tickets,
material requisition and stock receipt cards can be
prepared. *
As a result of order progress reporting, the
latest status of each open job order is stored in the
file. Detail status reports can be produced as discussed in the section that describes the operation
scheduling module, or for particular orders, on an
inquiry or selective basis.
Output from the day-to-day reporting can include
audit listings for verification and control on the shop
floor.
The audit listing for labor reporting can be arranged in department sequence by employee number
*See Dynamic Shop Control (E20-0104-1)
90
. to permit each employee to ensure that his reports
are recorded properly. Work center and department
listings with summary information can also be provided. Exceptions (for example, an operation that
has been reported moved to the next work center
without a labor report from the previous department)
can be highlighted by appropriate codes.
Each transaction that is processed and the fields
of information in the file are available to the system
and can be combined to produce output records.
These can be selected and arranged in many different sequences to prepare a wide variety of reports.
SUBSYSTEM SUMMARY
The shop floor control subsystem is summarized in
Figure 54. The chart indicates the input, output,
and file information used by the modules.
SUBSYSTEM: Shop Floor Control
DATA BASE
MODULE
NAME
Order Release
INPUT
• Order Release Data
(From Capacity
Planning)
Item Number
Quantity
Due Date
Start Date
• Changes to Orders
PROCESSING
ROUTINES
RECORD
TITLE
Standard
• Item No.
Master Update Routing
• Extension of
Standard
Routing
• Construct
Open Job
Order File
• Prepare Shop
Order Alloca- Item Master
tion
Product
Structure
RECORD FIELDS
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Order Progress
•
•
•
•
Labor Reports
Material Moves
Scrap Reports
Exception Notice
(held for tool no.
dra wing, etc.)
• Locate Open Open Job
Order
Job Order
• Update Oper- Summary
ation Record
• Update Order
Summary
• Edit Transaction
• Prepare
Output
Open Job
Operation
Detail
Figure 54.
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
OUTPUT
Item Master Address
Operation Number
Work Center No.
Time Standards-Setup Hours
Time Standards- Labor/Machine
Special Action Codes
Tool Information
Code
Number or Address
Item Number
Planned Orders
On Order~Production
Total Quantity
Address to Detail
Allocated Quantity
Standard Routing-First Operation Address
First Assembly Component Address
Current Engineering Change Number
Component Item Master File Address
Compare Portion of Component Item
Master
Next Component Address
Quantity per Assembly
Current Engineering Change Num ber
• Shop Packet:
Routing Sheet
Labor Reporting
Cards
Material Requisition
Move Tickets
Receipt to Stock
Parts List for
Assembly Orders
Item Number
Order Number
Number of Operations This Order
No. Completed Operations
Address to Operation Detail
Qty. Completed - Present Operation
Qty. Completed-Current Operation
Scheduled Start Date
Engineering Change No.
Current Work Center
Scrap Reported
Shrinkage Factor
Standard Material Costs
Labor Costs-Standard To Date
Job Priority
Work Center No.
Operation No.
Move Time
Scheduled Start Date
Actual Start Date
Qty. Complete-Previous Operation
Qty Complete-This Operation
Qty. Scrapped
Status Code
Tool Information
Labor Costs
Standard/Actual
• Exception Report
• Audit Listings
• Order Status
Shop floor control subsystem summary chart
91
PURCHASING
INTRODUCTION
nature of previous "buys", as well as vendor delivery and quality ratings. Upon acceptance or
modification of the requisition, the authorized order
is processed in the second stage to produce a purchase order for the vendor.
Purchase Maintenance and update, the second
grouping, is concerned with the maintenance and
organization of the purchasing records and the
processing of transaction entries.
The function of purchase order follow-up is to
keep track of order progr~ss by reviewing orders
periodically and creating the necessary highlight and
exception reports.
Finally, purchase evaluation rates. a vendor on
the basis of delivery and quality and, in addition,
reviews buyers' ordering performance.
An efficient purchasing system provides management with information regarding deviations from the
purchasing plan, thereby enabling the organization
to concentrate on areas where additional economies
are feasible.
The purchasing subsystem is responsible for the
availability of stock to satisfy requirements for raw
materials, purchased parts, and supplies. It must
be scheduled to meet the overall manufacturing
plan. In carrying out its job, the purchasing subsystem makes the necessary judgments regarding
quality, vendor, price, and delivery. *
The area involves four major groupings:
• Requisition and purchase order preparation
• Purchase maintenance and update
• Purchase order follow-up
• Purchase evaluation
Order preparation is a two-stage procedure.
Purchase requisitions are first prepared and directed to the proper buyers. Next, vendor quotations are obtained and analyzed. Recent purchase
and vendor his tory is reviewed to determine the
*See Management Operating System - Industri'll
Purchasing - General (E20-0070)
I
ITEM MASTER
T
y
P
E
I
Item No.
and
Description
Inventory
Value
Classification
Unit
of
Measure
Purchase
Lead
Time
MatI. Costs
Std.
I Actual
Current
Receipts
Back
Orders
Allocated
Inventory
on
Hand
Planned Orders
(by Date/Qty.)
:
r
~
r
I
,
OPEN PURCHASE REQUISITION
Requisition
No.
I
Item
No.
Buyer
No.
Vendor
No./Nos.
Qty.
Date
Required
Account
No.
Date
Closed
Date
kJ:)
Next Req.
This Item
.,~
r
VENDOR MASTER
Vendor
No.
Name/
Address/
Telephone No.
Last Shipment
Date
I
Qty.
No.
Deliveries
No.
Rejected
Shipments
Terms
$ Payments
to
Vendor
Delivery
Rating
Quality
Rating
~
Next Vendor
This Item
Figure 55.
92
Relationship of purchasing records (see Appendix A for additional record data)
• Reduce the cost of materials going into the
products through more favorable price negotiations,
long-term contracts (where practical), and familyof-parts contracts with high-volume suppliers.
• Eliminate duplicate archives by creating and
maintaining accurate purchasing records.
• React faster to change. This means becoming
more aware of receipts in process, current vendor
quotations, order closeouts, or order shipment
status.
OBJECTIVES
A good purchasing subsystem aims to:
• Reduce the routine paperwork by automatically
issuing purchase requisitions, purchase orders,
follow-ups, requests for quotes, and pertinent management and operational reports. This will separate
professional purchasing duties from clerical duties.
A buyer can plan for more effective use of his time;
more of his effort, for example, might be spent
negotiating with vendors.
• Develop a total information system that contains
all the information needed, not just the basic requirements. To illustrate, open requisition, vendor, and purchase master records have all the
pertinent data so that the buyer does not have to
spend time looking up this information.
• Provide the buyer with answers to questions
regarding the suppliers of a particular item, the
quantity of material ordered from each supplier,
price comparisons, delivery ratings, and standards
of quality. The buyer can obtain immediate access
to this information by inquiry to the central records.
(
\
DESCRIPTION OF RECORDS
The system records* are shown in Figure 55.
They begin with the item master and link to the open
purchase requisition, open purchase order, vendor
master, and purchase master.
Item Master
Item master records identify both raw material and
purchased parts. Lead time, costs, receipts, onhand stock, ordering policy, and planned purchases
*See Management Operating System - Industrial
Purchasing - Detail (E20-0074)
ITEM MASTER
Address
to
Vendor
Masters
Open Purchase
Requisitions
) Qty.
Tot" IAddre"
Address
to
Purchase
Masters
Open Purchase
Orders
To,,1 IAddte"
Order Policy
(Order Pt. /
Order Qty.)
Current
Engineering
Change
Qty.
)
J
~
~
.~
I
,
OPEN PURCHASE ORDER
Purchase Order
No·1
Item
No.
Date
Buyer
No.
Vendor
No.
Qty.
Ordered
Terms
Qt,.1
Received
Rec.
Report
DOle
No.
Distribution
Code
Rejected
Q"'I
D.te
Delivery
Date
Unit
Price
Vendor'
Promise
Dates
Date
Closed
~
Next Order
This Item
PURCHASE MASTER
.....
.......
Item
No.
Last Six Buys
Last Five Quotations
Vendor
No.
Quote
No.1 Date
I
Qty.
Terms
Price
Quote
Expiration
Date
Purchase
Order
No.
TDate
Vendor
No.
Qty.
Price
Status
of
Buy
Date
Closed
.93
for future time periods are some of the basic fields
to be used by purchasing. In addition, two fields
. contain addresses that point to vendor master and
purchase master records. Total on-order quantities of both open requisitions and purchase orders
are available in summary fields appearing on the
item master. Their detail is obtained by addresses
pointing to each requisition and order stored on the
disk file.
Open Purchase Requisition
Requisition records contain the buyer code, quantity,
a list of vendor numbers that supply the particular
item, date the item is required, and closing date of
the requisition. (Closed requisitions remain on the
file for one month, after which time they can be
placed on magnetic tape for future retention.)
Open Purchase Order
Purchase order records contain the buyer code, a
vendor identification, quantity ordered, date due-in,
price, and closing date of the order. In addition,
areas are set aside to record vendor promise dates,
receipts, and rejects.
Vendor Master
Vendor records contain the vendor code, name,
address, and telephone contact, the last shipment
made by this vendor, his price breaks, terms, a
summary of deliveries, rejected shipments, and the
dollar amount of business transacted over the last
twelve months. Vendor delivery and quality ratings
are provided to assist the buyer in vendor selection,
and for reporting purposes. A delivery index compares lateness of current shipments with those of a
prior base period; a quality index shows the trend in
rej ections.
94 .
Purchase Master
This record is an extension of the item master. It
contains a history of the last five vendor quotations
of the purchased part (with price and terms) and the
last six buys of the item (providing order number,
vendor, quantity, date, and price).
SUBSYSTEM FLOW
The procurement cycle begins with either the inventory control subsystem or the requirements planning
subsystem providing a future purchase requirement
on a purchase action or an order notice. (Inventory
control order items are based on usage; requirements planning items are planned for in advance.)
The information flow is shown in Figure 56.
MODULE DESCRIPTIONS
Requisition and Purchase Order Preparation
All five purchasing records are utilized in processing requisitions and orders.
Purchase requisitions are printed or displayed
for the buyer. With the historical quotes and buys
information appearing in the purchase master
record, and by further reference to ratings and
price breaks from the vendor master, a vendor is
selected, a purchase order record is created in the
file, and the order form is printed.
At the same time the order is prepared, an order
acknowledgment card is prepared with receipt/
inspection cards. The latter' are forwarded to
the receiving department, where they are retained
while awaiting receipt of the goods from the vendor.
Requirements
Planning
Inventory
Control
To Vendor
Purchase
Order
Order
Acknowledgment
Module 1
~-+
Vendor
Master
Receipt/
Inspection
Purchase
Requisition
____--II~ Requisition
and Purchase
Order Preparation
To Receiving Dept.
Purchase
Master
To Buyer
Module 2
Transaction
Card
Purchase
Maintenance
and Update
.....__---I~
Open
Purchase
Requisitions
and Orders
(Updated)
Daily Receipts
List
Purchase Status
(Projected by
Period)
Purchase
Action
Vendor
Master
Open
Purchase
Order
Module 3
Purchase Order
Follow-up
Vendor
Expedite
Orders Placed
By Value
Vendor
Master
Open
Purchase
Order
Module 4
Purchase
Evaluation
Buyer Analysis
Vendor
Analysis
Figure 56. Purchasing subsystem flow
95
DATA BASE
MODULE
NAME
PROCESSING
ROUTINES
INPUT
Requisition and • Purchase Requirements (From InPurchase Order
ventory Control
Preparation
and Requirements
Planning Subsystems)
• Purchase Requisition
Preparation
• Vendor Determination
• Order Writing
RECORD
TITLE
Open Purchase
Requisition
RECORD FIELDS
•
•
•
•
•
•
•
•
Req. No. /Date
Item No.
Vendor No. /Nos.
Quantity
Date Required
A/C No:
Buyer No.
Date Closed
OUTPUT
• Purchase Requisition
• Purchase Order
• Order Acknowledgment Card
• Inspection/
Receipt Cards
• P. O. No. /Date
Open Purchase • Item No.
Order
• Vendor No.
• Buyer No.
• Quantity
• Delivery Date
• Distribution Code
• Terms
• Unit Price
• Vendor Promise Dates
Purchase
Master
Last 5 Quotations
Last 6 Buys
Vendor Master Vendor No.
Name/ Address/Telephone
Last Shipment
Delivery Rating
, Quality Rating
Purchase Maintenance and Update
New requisitions and purchase orders are input to
the system to create open purchase requisition and
open purchase order records. Total on-order quantity fields for requisitions and purchase orders are
. updated on the item master. Transaction entries
(for example, vendor receipts, item rej ects, overages, order acknowledgments, and alterations)
update the open purchase order files. The system
can be designed so that parts can be rejected easily
in such locations as receiving, inspection, or parts
storage. A rejection report is completed showing
96
the reason for rejection. Codes are used to author. ize scrap, rework in plant, return to vendor, or use
as is. Thus, a properly coded reject transaction
can alter any number of record fields to satisfy the
information needs of many departments. Output may
consist of a daily receipts list, which informs both
purchasing and production co:ntrol that the order is
now at inspection, or a purchase status report
(itemized by week, to cover, for example, a 24week forward period) showing items on order,
scheduled due dates, and current status. Essentially, the report permits the buyer to ascertain
where the next price break might be after considering anticipated future requirements.
DATA BASE
MODULE
NAME
Purchase
Maintenance
and
Update
PROCESSING
ROUTINES
INPUT
Purchasing transactions
• Transaction updating:
Overage
Reject
Acknowledgment
New Requisition
New' Purchase Order
Alteration
Vendor Receipt
Purchase Order Follow-Up
Vendor master and open purchase order files are
used in this module to provide automatic follow-up
at key points in the purchasing cycle. This assures the availability of the right quantities and
quality at the right time and place. Several types
of output may be prepared. One of these, the purchase action report, appears as Figure 57. The
remarks column of that format spells out "shipmen~
RECORD
TITLE
RECORO FIELDS
• Item Master (For Record Fields see
Figure 55)
• Open Purchase
Order
• Open Purchase Requisition
• Vendor
Master
• Purchase
Master
OUTPUT
• Purchase Status
• Daily Receipts
List
• Updated Open
Purchase Requisitions and
Orders
past due", or some other pertinent exception statement. In this manner, quick follow-up becomes
possible on every delayed purchase order receipt,
inspection problem, or situation involving laxity in
forwarding an order acknowledgment.
The vendor expedite notice is another helpful output document from this module. It is a reminder,
automatically generated, which can be mailed out to
each vendor to confirm his overdue or shortly-due
commitments and delivery dates.
Date: 4/20/--
Purchase Action Report
Quantity
Received
Total
Quantity
Buyer
Vendor
Item No.
Order No.
93
A Co.
226353
B 632
0
0
93
B Co.
297463
B 095
50
100
Remarks
No acknowledgment
Shipment past due
Date: 4/20/--
Purchase Action Report
Quantity
Received
Total
Quantity
Buyer
Vendor
Item No.
Order No.
97
A Co.
971425
D 032
0
0
97
Z Co.
832658
X 001
100
500
Remarks
No shipment
confirmation
Inspection failure
Figure 57. Purchase action report
97
DATA BASE
MODULE
NAME
Purchase
Follow-Up
INPUT
• Vendor Master
• Open Purchase
Orders
PROCESSING
ROUTINES
RECORD
TITLE
• Purchase Action
Report Preparation
• Vendor Expedite
Notice Preparation
RECORD FIELDS
Open Purchase • P. O. Number/Date
Order
• Item Number
• Buyer Num ber
• Vendor Number
• Order Status
• Qty. Ordered
• Qty. Rec'd/Rejected
• Vendor Promise Dates
Vendor
Master
Purchase Evaluation
•
•
•
•
•
*See COMPASS (Computer-Oriented Management
Planning and Scheduling System) at mM
Poughkeepsie (E20-0200)
• Purchase Action
Report
• Vendor Expedite
Notice
Terms
Amount Paid
Delivery Date
Vendor No.
Name/Address
Days Late
Module four provides periodic evaluations of vendor
and buyer performances on the basis of factors of
quality and delivery. As a result of information
stored in the vendor master, a vendor analysis report can be printed showing monthly dollar payments
to each of the suppliers, number of rejected shipments, and number of deliveries.
Vendor rating reports * can be designed to
include:
1. Delivery rating (for example, days late)
showing average current rating, current month, one
month previous, two months previous, etc.
2. Quality rating (for example, rejects) showing
similar monthly data. Deliveries that are late have
a weight factor calculation:
OUTPUT
Factor
1-10
x
1
11-20
x
2
21-30
x
3
over 30
x
4
To have up-to-date information, an average
monthly rating can be computed each month.
Vendor formula:
100 _ (days late x weight factor) = Rating
Number of deliveries made
"
last month
2 months
Rat mg +
+ prev. rat"mg = Aver.
rat"lng
monthly
3
rating
A delivery rating of from 100 - 85 is considered
excellent; 84 - 70 is average; and 69 or less is below average.
Purchasing must also analyze the performance of
its own department.- The buyer analysis report
shows the requisitions received, processed, and
backlogged. It can also provide a buyer delivery
rating using the vendor formula shown above.
DATA BASE
MODULE
NAME
Purchase
Evaluation
98
INPUT
• Vendor Master
• Open Purchase
Orders
PROCESSING
ROUTINES
• Calculate
Delivery
Rating
• Calculate
Quality
Rating
~CORD
TITLE
Vendor
Master
Open Purchase Order
I
•
•
•
•
•
•
•
•
•
RECORD FIELDS
Vendor Number
Delivery Rating
Quality Rating
No. Deliveries
No. Rejected Shipments
P. O. No. /Date
Buyer No.
Unit Price
Qty. Received/Date
OUTPUT
• Vendor Analysis
• Buyer Analysis
• Orders Placed by
Value
SUBSYSTEM SUMMARY
The modules are summarized in Figure 58.
SUSBSYSTEM: Purchasing
DATA BASE
MODULE
NAME
Requisition and
Purchase Order
Preparation
INPUT
• Purchase Requirements (From Inventory Control and
Requirements
Planning Subsysterns)
PROCESSING
ROUTINES
RECORD
TITLE
Open Pur• Purchase
Requisition
chase
Requisition
Preparation
• Vendor Determination
• Order Writing
RECORD FIELDS
•
•
•
•
•
•
•
•
Req. No. /Date
Item No.
Vendor No. /Nos.
Quantity
Date Required
A/C No.
Buyer No.
Date Closed
OUTPUT
• Purchase Requisition
• Purchase Order
• Order Acknowledgment Card
• Inspection/Receipt
Cards
• P. O. No. /Date
Open Pur• Item No.
chase Order • Vendor No.
• Buyer No.
• Quantity
• Delivery Date
• Distribution Code
• Terms
• Unit Price
• Vendor Promise Dates
Purchase Maintenance and Update
Figure 58.
Purchasing
transactions
• Transaction
updating:
Overage
Reject
Acknowledgment
New Requisition
New Purchas
Order
Alteration
Vendor Receipt
Purchase
Master
Last 5 Quotations
Last 6 Buys
Vendor
Master
Vendor No.
Name/Address/Telephone
Last Shipment
Delivery Rating
Quality Rating
• Item Mas- (For Record Fields see Figure 55)
ter
• Open Purchase
Order
• Open Purchase
Requisition
• Purchase Status
• Daily Receipts List
• Updated Open
Purchase Requisitions and Orders
• Vendor
Master
• Purchase
Master
Purchasing subsystem summary chart (Sheet 1)
99
SUBSYSTEM: Purchasing
DATA BASE
MODULE
NAME
Purchase Order
Follow-Up
INPUT
• Vendor Master
• Open Purchase Order
PROCESSING
ROUTINES
RECORD
TITLE
Open Pur• Purchase
Action Rechase Order
port Preparation
• Vendor Expedite Notice
Preparation
Vendor
Master
Purchase
Evaluation
Figure 58.
100
• Vendor Master
• Open Purchase
Orders
• Calculate
Delivery
Rating
• Calculate
Quality
Rating
PurchaSing subsystem summary chart (Sheet 2)
Vendor
Master
RECORD FIELDS
OUTPUT
•
•
•
•
•
•
•
•
•
•
•
•
•
P. O. Number/Date
Item Number
Buyer Number
Vendor Number
Order Status
Qty. Ordered
Qty. Rec'd/Rejected
Vendor Promise Dates
Terms
Amount Paid
Delivery Date
Vendor No.
Name/Address
• Purchase Action
Report
• Vendor Expedite
Notice
•
•
•
•
•
•
•
•
•
Vendor Number
Delivery Rating
Quality Rating
No. Deliveries
No. Rejected Shipments
P. O. No. /Date
Buyer No.
Unit Price
Qty. Received/Date
• Vendor Analysis
• Buyer Analysis
• Orders Placed by
Value
CHAPTER 3: Implementation Guide and
Expanded Usage
MODULE AND SYSTEM GROWTH
Each functional area has been described as a selfcontained subsystem. It is organized in this manner
so that a large degree of freedom is allowed during
implementation. The subsystems cho"sen and the
sequence in which they are implemented are left
to the discretion of the user. The goal to be
achieved is the primary guide in deciding which
subsystems to implement. Of course, available
manpower and financial resources do guide a company in deciding the sequence and timing of its implementation. Although the modular subsystem
approach goes a long way to easing application
implementation, several areas still remain that
must be considered, such as preparing and editing
existing data for completeness, accuracy and format, planning for pilot or parallel operation, and
coordinating conversion activities. Each application must therefore be surveyed for conversion
problems, and specific procedures must be developed to overcome the problem areas.
It must be made clear that before a successful
production information and control system can be
implemented, a comprehensive plan of action must
be developed. This plan should be designed in such
a way that major revisions to the DATA BASE
records and programs established early in the life
of the system can be avoided during later expansion.
Where to Start
An early step in the installation of any computeroriented system is screening and organizing the data
to be used. This is especially important in the implementation of the system, since the same basic
files serve many different functional areas. Each
individual installer should consider such questions
as:
• What interrelationships of data files exist?
• Which existing records can be used or modified?
• How will new data be gathered?
• How will both existing and new information be
verified?
• In what sequence will the files be organized?
The System/360 Bill of Material Processor program will serve many of these early implementation
needs. Its generalized programs can be modified
to perform various functions during the creation and
maintenance of the basic files. Having organized
the data to be used by the system and having created
the necessary files, the implementation effort must
now be turned toward the remaining task. To ensure that the system will be operating on a timely
basis, the next consideration must be the maintenance and updating of information in the files. The
primary source of information in the DATA BASE is
the item master, which is maintained by the inventory control subsystem. It is envisioned, therefore,
that a company would first wish to include the inventory control subsystem. This subsystem is selected
first simply because the maintenance of inventory
records directly affects almost all other areas of
operation and provides the basis for additional subsystems.
Figure 59 shows a representation of the modular
concepts followed. The file usage legend indicates
the flow of file information. The solid outline indicates that the file is created (and used) by the applicable subsystem; the dotted outline indicates that the
file is required by the subsystem. Any file that is
shown as required must have been created in a previously integrated subsystem.
The chart indicates that the inventory control
subsystem uses as its basic file system the file organization and file structure created and maintained
by the System/360 Bill of Material Processor program.
From the inventory control subsystem, note that
the patl\<.:an lead to any of the following:
•
•
•
•
Requirements planning
Engineering data control
Purchas ing
Sales forecasting
The requirements planning subsystem creates
time series requirements on the item master as
well as the pegged requirements file. This, then,
is the precedence path required if one wishes to
implement operation scheduling or shop floor
control.
Each of the five possible routes from the inventory control subsystem uses the item master file.
The open purchase requisition/purchase order, the
purchase maste"r, and the vendor master files required in the purchasing subsystem are created and
maintained within that area of responsibility. If the
sales forecasting subsystem is implemented before
a requirements planning subsystem, future planning
can use a forecast based on past history regarding
usage of end items.
101
Bill
of
Material
Processor
(=-:1
I
,
Inventory
Control
I
I
Item
Master
,
l __ )
~-~
Engineering
Data
Control
I
Product
Structure
(--=1
,
I
I
I
Item
Master
,
l __ )
Open
Purchase
Requisitions
and Orders
I
'Item
I
~
I
I
Standard
Routing
I
1' __ ,.1
I
I
--~
((
-,
~ile
I Required
I by
I
,
I
~UbSysten)
--
figure 59. System growth
102
'I
I
Standard
Routing
~ __
I
_ --1
',work centerl
~aster
caster
--
File Usage Legend
tC.-__-'>.
--1
,Work Centerl
)
l
(--1
(--~
I
I Master I
~ __ --1
I
I
Shop
Floor
Control
Operation
Scheduling
Capacity
Planning
,-- I
t-
Sales
Forecasting
Requirements
Planning
(-~1
I
I
,
, Standard ,
lRoutin g . )
IWork Center
ster
I
l __ )
1'--1I
l
1--1
1
I
Item
Master
I
I
Purchasing
(=--~
'Item
, Master
I --
-
)
I
'Item
Master
~
I
,
__ .,1
I Standard I1
I Routing
1"_--1
IWork centerl
'Master
~
)
Item
Master
I
I
--)
The capacity planning, operation scheduling, and
shop floor control subsystems necessarily follow
the requirements planner. The shop floor control
subsystem, however, need not be implemented following any form of scheduling program but may
actually precede scheduling programs with the
prime intention of perhaps aiding in evaluating and
determining accurate time standards and move
times. The open job order file is shown as a file
being created by either the operation scheduling or
the shop floor control subsystem, depending upon
which is created first •. Both require the use of an
open job order file. A capacity planning subsystem
need not be implemented before an operation schedule. The latter can provide some form of load
analysis that extends into the future, in addition to
the operation sequencing capability.
The production information and control system,
then, is virtually any series of functions that a company would like it to be. The design of the system
is so flexible that subsystems need not be added in
any prescribed serial manner. The company, in
designing its system, chooses only those functions
which are more urgent or which provide the greatest
number of benefits.
Subsystem Modularity
Modularity within each subsystem affords the following advantages:
• Record size. A customer need incorporate into
a record only those fields which reflect the functions
now being performed. Also, fields can be added to
the records as information becomes available.
• FlUlction growth. Each subsystem contains a
series of different flUlctions. One or two may be
incorporated initially, and as experience and confidence are built up, more complex functions may be
added in the future.
The implementation of a subsystem does not require the implementation of all aspects of that
subsystem but only the ones that are considered
desirable at the time, and at a rate of inclusion that
is best for the specific needs of the installfl.tion.
• Specifying field sizes and mnemonic
descriptions
• Incorporating user-written routines
• Linkage editor and library considerations
Customizing File Organization Routines
The system contains several logical files, each performing certain functions, and each connected to
another directly or indirectly. Under supervision of
the various operating systems specifications must
be furnished to the system that indicate such items
as the name of a file, labels given to an I/O area,
record size, blocking factor, and many other variables that reflect the manner in which the files are
to be handled. These specifications are macros
that generate the appropriate coding for the files to
be handled in the manner desired.
Figure 60 illustrates sample DOS/360 coding for
specifying an index sequential DTF entry. The symbolic file name is MAST ~IL. The type of process ing
for the file is to be both random and sequential.
The record -size is 200 bytes; the records are to be
fixed unblocked; the key length is ten bytes; the I/O
area label"'is RECARA. Records are to be written
back to the file after updating; the label of the customer's routine for wrong-length record processing
is EROUT. These parameters for the file named
MASTFIL will generate the appropriate coding to
handle the file exactly as desired and set up the
appropriate points to link to such routines as
DTF SPECIFICA TIONS
MASTFIL DTFIS
•
•
Customizing file organization routines
Specifying work areas and I/O sizes
RANSEQ,
200,-----,
FlXUNB.
10,
=~
I
RANSEQ.
EROUT
r ------- - - ---- -
I
I
I
- ---.I
I
I
I
I
PROGRAMMING CONSIDERATIONS
Under the production information and control system, it is possible to tailor the many different
phases into a daily operating tool and at some future
date to upgrade capabilities as the need arises.
To accomplish this, however, a user must be
familiar with some of the following:
TYPEFLE
RECSIZE
RECFORM
KEYLEN
IOAREAR
UPDATE
WLRERR
AREA AND FIELD SPECIFICATIONS
I
-
L-~RECARA
MDEPT
MWC
DS
DS
DS
OCL200.- CL8
CL6
-
-
-
-.J
Figure 60. User specifications
103
-EROUT, should it be necessary. A programmer,
therefore, has total flexibility as to the name of the
files, size, blocking factors, linkages to other
. routines, and many other variables. The user must
consider the types of files desired as well as the
type of disk functions he wishes to include.
Specifying Work Areas and I/O Areas
The I/O area specified in Figure 60 contains a label
called RECARA. When a record is read into core,
the coding generated by the DTF reads the record
into the location RECARA. For the system to make
the necessary error checks, the customer must
also specify the characteristics of the I/O area.
The core storage for RECARA is set aside with a
DS statement. The operand shown in Figure 60 for
the first DS statement of OCL200 means that the
program should consider that 200 bytes are set
aside (CL means that it is to be character information with a length of 200). The zero in the first
position indicates that field definitions within the
200-byte area will be defined later. The bill of
material customizing procedure provides the necessary macros and parameter cards to facilitate
specifying this kind of information.
Specifying Field Sizes and Mnemonics
The specifications in Figure 60 for the area defined
as RECARA indicate that 200 bytes are to be considered to be set aside. If the user wishes to
refer to a specific location within the area called
RECARA, according to one procedure, the data can
be referenced by address modification; for example,
if it is known that the information for the work center is in positions 25 to 30 relative to th~ start of
RECARA, the data can be accessed by referring to
location RECARA + 24. This procedure entails an
awareness of where every piece of data is relative
to the start of the I/O or work area. In addition,
making a change to a field size entails modifying all
the code in the program that makes references to
other data fields. A more direct procedure is to
attach a label to all the fields within the record.
104
When using the information, all that is required is
furnishing the appropriate label name. The relative
position within the work area is not a matter of concern. Figure 60 illustrates two field names,
MDEPT and MWC. The former has a size of eight
bytes, the latter six. Accessing of the data within
those areas is by label name or mnemonic code.
The bill of material program contains labels for
certain fixed data, such as chain address fields.
The user, of course, will add fields of his own
choosing to the records already created. He
must, therefore, furnish the size of each field
desired, as, well as the mnemonic label desired to
refer to the field. The arrows in Figure 60 show
the relationship required between the information
specified in the DTF section and that specified in
the area and field specifications.
Incorporating User-Written Routines
Normally, at key points in mainline programs, exits
are provided that contain fixed labels that are used
as the subroutine name. The subroutine differs
from the macro in that the subroutine is placed in
core in only one specific area; other routines can
branch to it as desired and as necessary. A macro
is a special form of subroutine. Each time a programmer calls the macro, the assembler program
places all of the macro code at the point where the
operator issued the call in the mainline program.
If a given macro is called ten times in a program,
the coding is generated at th,e ten different points
at which the calls were issued. Each, time the
macro is called, parameter information passed
with the macro tailors the coding to the specific
task. For example, a move macro is coded as
MOVE SA U, MWC where data is moved from a
field called MWC to another field called SA U. However, the next time the macro is issued, it can be
written as MOVE REPORT, MDEPT where the field
called MDEPT is moved to an area called REPORT.
A subroutine, on the other hand, is fixed in its
functions and fixed as to the data it accesses each
time.
Figure 61 shows the relationship between a subroutine called USRRTN and the mainline program.
COMPUTER STORAGE
MAIN LINE MODULE
Linkage Cons ide rations
The operating systems provide for maintenance of
three library types: macro, relocatable, and core
image. The macro library contains the routines
that will be inserted into the main routine when these
macros are called during the assembly run. These
macros are in source language format. The relocatable library contains assembled object modules
that still contain unresolved location and external
linkages. These programs cannot be executed
before examination by linkage editor. The core
image library contains routines that are in machineexecutable form.
machine-executable form.
The customizing procedure requires functions
that are included in the relomitable and macro
libraries, in addition to the use of the linkage editor
program and the assembler.
Figure 61 shows the DTF, mainline, and user
modules. These various sections will be contained
on one of the three libraries. Each can be assembled
separately and linked together at the time that a
running system is desired. (The programmer's
manual for the bill of material processor contains
detailed specifications on the customizing of these
various sections, as well as an illustrative example
of the procedure to be followed. )
START
BALR 5, 0
USING·, 5
~A~~' ;1~ ~~SRRTN)
=
USER ROUTINE MODULE
=-
USRRTN
~
CSECT
BALR 6, 0
USING·, 6
~
=
FILE DEFINITION MODULE............... ~
MAST FIL DTF IS TYPEFLE
RANSEQ,
-
=
~I
~
BCR 15, 11
FIElD DEFINITION SECTION
RECARA DS OCL500
MDEPT DS CL8
SUPERVISOR
Figure 61. User-written sections and mainline program
105
EXPANDED USAGE
INQUIRY CONCEPTS
A centralized management information system
offers an important communication link between
the various manufacturing phases. Today, effective management requires a responsive control
system to highlight all kinds of information.
The production information and control system
permits direct communication with its numerous
master, engineering, and order status records at
any time and from any remote location. Data is
readily available for all questions asked of the
system.
Data can be transmitted by telecommunication
networks to eliminate much of the delay now inherent in many systems (Figure 62). A terminal
in a customer's office can transmit his order
directly to the home office or plant site. After the
order has been entered, scheduled, and production
dates established, an acknowledgment can be
transmitted back for customer information. A
shorter turnaround cycle results in better customer service, hence, better customer relations.
Inquiry into the DATA BASE can be performed
in a number of different ways. Present technology
permits inquiries to be printed and typed, viewed by
an IBM cathode ray tube display station, or transmitted audibly by telephone. In the latter instance,
an IBM audio response unit receives an inquiry,
consisting of a series of coded characters, from its
inquiry terminal. It transmits the message via the
channel to the processor, character by character,
under program control. The processing unit processes the input message and composes a response,
selecting the desired words in proper sequence from
a vocabulary stored in direct access storage as
digitally-coded voice. This is converted to
"spoken" language and transmitted to the originating
terminal.
The real-time approach emphasizes processing
the transaction as it occurs, and updating all records
immediately. As a result of the processing, exception notices and status reports are produced. Corrective management action may be taken and fed
back into the system. The real-time system offers
not only management by exception, but management
by exception as the exception occurs. To implement
a system of this type, random access storage and
remote terminals are required. Once installed, the
following general advantages will result:
• Exception reporting of situations requiring
management action
• Up-to-date information on which to base
decisions
106
• Periodic summary reports of significant areas
not received at the present time
• Reduction of the manufacturing time span
• Routine decision making performed by the
system
• Reduction of in-process inventory
• Better use of men and machines
• Checks by the system to assure the reporting
of key transactions
• Lower material investment required
• Access to common files by all activities
• Accurate data collection through editing of input
information at the source
• Immediate inquiry into status of all items, lots,
orders, etc.
Additional specific advantages accuring in the major
areas of activity follow.
Receiving and Receiving Inspection
Goods, when received by the receiving department,
can be counted and immediately reported to the system. They can be identified by association with an
item on an open purchase order, and quantities received can be checked against the outstanding
amount. The computer can audit the information
and update the purchase order file for date, quantity, and number of shipments. The stock inventory
record can thus also be updated to reflect the amount
in the receiving department, and a further check can
be made to determine whether expedite of material
is required. If so, the system can so inform the
receiving department.
Also, the system can initiate a report to the
inspection department as to the lots to inspect as
well as the sampling criteria to use. Communication back to the system from the inspection department can indicate any rejected lots; this, in turn,
can trigger notification to a material analyst of a
rejected lot so that a judgment can be made regarding its dispOSition.
In addition, receipts delivered to the wrong plant
may be accepted or quicldy redirected, thereby
saving time. This is possible because all purchase
order information is available to all receiving areas
through a centralized data base.
Purchasing
Routine items can be ordered automatically. These
include high-volume standard items that represent a
high percentage of the purchase orders but a relatively low portion of the dollar commitment. This
allows the purchasing personnel to concentrate on
items requiring more attention.
Also, purchase information can be prepared for
the analyst's decision. Information as to vendor
experience and quotations, plus the order history
regarding the purchase item, can thus be made
available to him. The analyst is now in a better
position to make an intelligent, informed appraisal,
as well as the ultimate decision for the order.
There can also be automatic purchase order
follow-up. Those orders requiring ac1mowledgment,
confirmation of shipping dates, etc., can be automatically identified and processed. Clerical intervention may not be required.
In addition, periodic vendor and order analysis
can be made. The vendor's performance in relation
to quality and timeliness of goods received can be
evaluated against predetermined criteria. Order
analysis can be effiCiently accomplished to determine such data as product group usage and a breakdown of the number of purchase orders in relation
to their dollar value.
Material Control
Material control can generate documents necessary
to assure the availability of stock for efficient functioning of the departments. It can control the transactions pertaining to material after the material is
moved from the receiving or the inspection department; for example, recording the progress of
material from the stockroom, through the fabrication process, and into the assembly departments.
The association of the requirements and inventory records with the manufacturing operations is a
prime function of this area. The system can control the issue of material from the stockroom to the
factory floor. Tighter control over surplus can be
applied by requiring reports of issues and returns
within a specific period.
Stockroom transactions for the supplies and
maintenance items can be processed and reflected
in the files. The inventory analysis routines can
initiate a requirement message for the purchasing
function when necessary.
Thus, among other functions, the system can
accomplish the following:
• Determine the avaliability of stock for released
operations
•
Issue and control the material released
•
Prepare cut instructions when necessary
•
Update the inventory file
•
Control surplus material issued to the floor
107
Central Plant
Executive
Central Info.
System
HQ
Warehouse
Branch
Warehouse
Figure 62.
Branch
Warehouse
Production
Stockrooms
Warehouse
DYNAMIC PRODUCTION RECORDING AND
EDITING
the need for additional reporting; for example, a
move reported complete in one department can signal that the labor transaction (j ob completion) from
the previous department has not been reported.
Figure 63 illustrates the use of a remote printer
in a department where labor transactions have been
reported. Edit messages are prepared within the
computer and transmitted to the printer. Several
examples of edit messages are included in the
illus tration.
In addition to the editing capability, the use of
direct communication to a computer increases the
timeliness of the information. An inquiry would
elicit an immediate response reflecting the current
status of the operation.
Information of this type can assist management in
its effort to control the work on the shop floor, with
management not having to react to status information
that reflects what happened yes terday or, in some
cases, days before. The dispatching of work in the
shop is an excellent example of a control or discipline that can improve with up-to-date information.
In most plants, the dispatching function is controlled at a work center or department. Once the
order leaves, pontrol is transferred to another
dispatcher. The sequence in which jobs are run in
one department is selected without knowledge of its
The direct access capability of the files and data
collection equipment used with System/360 provide
the means to develop a dynamic production recording and editing system. The lag between the time
an event occurs and the time it is recorded in the
files is reduced substantially when terminals in the
production department are connected directly to the
computer. In essence, the computing potential and
the production status information 'of the system are
available to each department.
The transactions from each department can be
edited when they are reported. Discrepancies and
unusual reports can be highlighted at a time when it
is most advantageous for corrective action. For
example, a labor report can be flagged on the third
operation of an order that included a quantity
greater than that reported complete on the second
operation, so that the count can be verified. A
variety of actions can be included in the computer
logic.
Transactions that do not pass particular edit
tests can be rejected, or they can be accepted
while a notice is sent to the foreman or stockroom
for verification. Some transactions may highlight
System/360
;--
-Work
Center
xxxxx
--
xxxxxxxxxxxx
--
I
Order and Oper ation
Identification
xxxxx
Employee
I
xxxxxxx
xxxxx
Quantity Reported Greater Than That
Completed On Previous Operation.
Scrap Exceeds Allowance. Foreman
AdVised.
Quantity Reported. Setup Has
Not Been Reported.
Setup Report Rejected. Setup Is
Complete Or Not Required.
I
I
I
Remote Printer
Figure 63. Edit messages
109
effect on other departments. With central files, upto-date status information, and remote terminals,
many levels or degrees of control are possible.
For example, the dispatching function could remain
at the local level. However, more. efficient tools
(for example, dispatching lists and exception
notices) would be at the dispatcher's disposal. Or
the dispatching function could be centrally located,
with relatively few specialized people communicating with the shop floor. Assignments would be made
by a central dispatcher who has access to the latest
information stored within the system. JUdgments
would be made regarding assignments that best conform to the overall plan for controlling the flow of
work.
Finally, the logic for job assignment can be
placed within a computer, with each worker receiving his assignment via the remote printer in the
department. This can be thought of as a dispatching
list that is printed one line at a time. It has an advantage over the list in that the line does not have
to be printed until it is needed and can therefore
reflect the latest information.
There are many variations of the methods discussed above. For example, in the computerdispatched system, a suggested plan (sequence of
jobs) can be prepared that is approved or modified
by key individuals in the shop. This plan can then
be executed by the computer as assignments are
requested.
110
Other areas of control that can be improved with
two-way communication between the computer and
the shop floor include tool control and material
movement. Tool requests to the tool crib can be
prepared on the basis of the latest sequence of jobs.
The number of requests can be screened to ensure
that tools being assembled are for jobs that will be
worked in the near future. In addition, if a particular tool is needed for a high-priority job and it is
currently in use, the computer can signal the crib
when the tool becomes available, determining this
on the basis of the labor report for the job currently
using the tool.
The moving of material from department to department (or work centers) can be better controlled
by informing the material handlers of the jobs of
highest priority. A message can be produced when
a high-priority job is reported complete in a particular department, thereby helping the material
handlers to execute the overall plan more efficiently.
Obviously, all aspects of expanded usage of the
DATA BASE could not be discussed; nor will all
those that have been discussed necessarily be implemented by each manufacturer. The important
point is that the DATA BASE, in conjunction with the
System/360, provides for many expanded uses. The
files and subsystems (or portions thereof) enable
each manufacturing concern to develop an information and control system consistent with its individual
needs.
APPENDIX: THE DATA BASE
Implementation of a production information and control system begins with the specification of the data
base. The data base covers all the operational record information needed to facilitate the maintenance
and flow of data within and between the applications
described in this manual. A set of standardized
record layouts has been designed as a base to mechanize the application areas. These records contain
fields that are considered necessary to enable the
majority of users to tailor their own data base
requirements.
The data base detailed here is designed to be
operational using the IBM System/360 Bill of Material Processor program. The data base is composed
of eleven basic records. Each master data set contains a basic record, and is chained to related
data records to compose the integrated data base
illustrated in Figure 64.
Formats for each record are followed by a
detailed description of each field in the record.
Open Job
Order Control
Purchase
Order Control
Master Records
Engineering
Indices
Figure 64. The data base
111
RECORD LAYOUTS, FIELD DESCRIPTIONS, AND
SYMBOLIC LABELS
Method for Assignment of Labels
Symbolic labels appear opposite ~ach name shown in
this section. In their order of discussion, the record titles and basic prefixes are shown below.
Record Title
Item Master
Open Purchase Requisition
Open Purchase Order
Vendor Master
Purchase Master
Open Job Order Summary
Product Structure
Standard Routing
Work Center Master
Open Job Operation Detail
Tool Master
Basic Prefix
M
PR
PO
PV
PM
OS
S
R
W
OD
112
3rd letter
Letters of the next words in
the field name are used so that
as much meaning is conveyed
as is possible
4th letter
5th letter
Example: A field of the item master is called
"Order Policy--Order Code". This is coded as:
,MOPOC
r-------~t====~T~~TLT===~+------~T
L
item
Master
Qrder
,Eolicy
Qrder
Some variations may be noted, such as:
T
Five letters identify the label, as follows:
1st letters
Used to identify either basic
record, or letters 3-5
2nd letter
identify the basic record (M
for item master, PR for open
purchase requisition)
MFCBI -- Item Master (= M)
"Forecasting (= FC)
- Base Indices" (= BI)
RSACO -- Standard Routing Record (= R)
"Special Action Code" (= SACO)
Code
SECTION A: ITEM MASTER
Item
Number
Type
Product Structure
Flags
Forecasting
Description
Unit of
Measure
Requirements
Planning
Inventory
Value
Classification
First Assembly Component
Address
Record
Count
8
9
(
)
o
2
1
3
I
7
6
5
4
\
Product Structure
)
(
First Assembly Where-Used
LowLevel
Code
Record
Count
Address
\
Next Item in Activity Chain
=10
o
10
11
Item Master
Address
Compare Portion
of Item Master
13
14
Standard Routing
Run
Activity
Control
Number
Overflow
Chain
Address
(Sequential
Additions)
First
Operation
Address
Last
Operation
Address
Record
Count
15
16
17
18
19
/
o
12
/
=10
'\
Order Policy
(
Order
Code
Order
Point
Order
Quantity
or
OrderUp-To
20
21
22
I
\
Safety
Stock
Minimum
Maximum
Multiple
23
24
25
26
f
Modifier
Cutoff
Date
Total
Unit Cost
Total
Setup
Cost
Carrying
Rate
29
30
31
32
28
27
j
Forecasting
)
Base Series
Trend
Safety
Factor
Average
Demand
Mean
Absolute
Deviation
(MAD)
36
37
38
39
I
\
Modifier
to Order Modifier
Policy
Code
Model
Type
First
Average
Second
Average
33
34
35
(
Lead Time
Sum
of
Deviations
Alpha
40
41
Number
Forecast
Periods
42
1
-
n
~
43
Raw Material
Production
Shrinkage
Factor
\
44
Purchasing
45
Set
Up
Run
46
Queue/
Move
Number
47
Unit Quantity
per this part
1
l/
48
113
(
\
Matoriol
I I
L,bo,
Bwde,
M".,iol
50
51
52
49
I
Demand
Actual Costs
Standard Costs
)
(
I
tabo,
I
List
.",de,
53
54
Beginning
Inventory
Transfers
and
Adjustments
62
63
Numb., Qu,"Uty
Periods
58
57
56
55
Issues
I
Discount
Codes
Net
Demand
Issues
64
Total
Quantity
Number
Locations
Are,
67
68
69
66
65
Code
I I
Qu,"ti'l' S'ock
Location
70
I
74
~
Allocated
Quantity
72
73
~
)
Projected Order Requirements
Project
Gross
Factor
Type
Inventory
Quantity
Count
Checker
Number
Date
of last
Count
Date
of
next
Count
76
77
78
79
80
81
75
J
61
Gross Requirements
Project
Gross
Indicator
Q",mity
Address
to
Multiple
Locations
71
Physical Inventory
Back
Orders
Quantity
I
60
59
Primary Location
Receipts
Numb.,
Periods
Inventory on Hand
Current Period
I
Parts Usage History
Unit Price
Unit Cost
(
Planned Orders
Released Orders
)
Da tel Quantity
Address
to
Pegged
Date/Quantity
Date/Quantity
82
83
84
85
-
-
-
I
•
Pegged Requirements
Part Number Requirement
This
Part
' Quantity
Number
86
87
Immediate Use
Scheduled
Due
Date
Quantity
Part
Number
89
88
On
Order
Scheduled
Due
Date
90
Part
Quantity
Number
91
92
Total
Quantity
93
Total
Quantity
I
98
99
101
100
(See open purchase
requisition. )
Address
to Detail
Address
to
Purchase
Master
Address
to
Vendor
Master
I
I
I
102
103
104
(See open
purchase
order. )
J
Engineering
Drawing
Total
Quantity
Address to
Detail or First
Job Order Summary
105
106
Drawing
Number
Number
109
I
Rea,",
For Change
110
I
Disposition
108
Current Engineering Change
111
I
Effectivity
Date
Numb..
112
113
I
Reason
For Change
114
I
Disposition
115
I
I
Date
116
(
V
107
(See open job
order summary.)
(See purchase (See
master.)
vendor
master.)
I'
Date Ie
I
Last Engineering Change
114
97
96
95
Engineering Change Control
I
\
94
On Order - Production
Open Purchase
Order
Address
to Detail
Address
Customer Production to
Order
Order
Next
Number Number
Requirement
SchedUled
Due
Date
On Order - Purchasing
Open Purchase
Requisition
Grand
Total
Finished Product Use
Effectivity
Quantity
I
117
~
ITEM MASTER (M)
Field
No.
Symbol
1
MTYPN
2
*
3
Field Name
Description
Item Type
Codes used to define an item, for
example:
1. Assembly and subassembly
2. Fabricated parts
3. Raw material
4. Purchased part
5. Customer option
Item Number
The number that identifies the item.
MPDSC
Item Description
The item name can range from a short
noun abbreviation to a more descriptive
wording.
4
MPJCD
Projection Code
Codes for use in forecasting (or projection)
subsystem to indicate whether this item is
to be projected (1 = yes, 2 = no).
5
MRPF
Reqs. Planning Flag
Codes for use in requirements planning
subsystem (-1 = pegged reqs., 2 = time
series, 3 = other).
6
MUTMS
Unit of Measure
A code that describes the measurements
by which parts and materials are purchased, used, priced, and sold (gallons,
pieces, feet, pounds, yards, etc.).
7
MVACL
Inventory Value Classification
A code indicating the category of inventory for this item. Stratification of
inventory is accomplished by correlating
annual demand, investment, and net profit.
8
*
First Assembly Component
Address
9
*
Record Count
The address of the product structure record representing the first component of
the assembly whose part number is
specified by the item number field.
Starting with the first assembly component address, all components in the assembly are linked together in an assembly
component chain.
Provided for audit and control; it is a
count of product structure records that
represent the components of this part
number.
*Indicates fields and labels required by the IBM System/360 Bill of Material Processor program
(360-ME-06X). See programmer's manual (H20-0246).
115
Field
No.
Symbol
Field Name
First Assembly Where-Used
Address
Description
10
*
11
*
Record Count
Provided for audit and control; it is a
count of product structure records in a
where-used chain for this part number.
12
*
Low-Level Code
A number indicating the lowest tier or
level at which a particular part number
is found in all product structure trees.
These codes are used in the processing
of summarized explosion and implosion
retrieval programs and in checking
assembly-to-subassembly continuity.
13
*
14
*
15
*
16
17
*
*
Next Item in Activity Chain
Item Master Address
Compare Portion of Item Number
The address of the product structure record representing a usage of this part
number on a higher-level assembly.
Starting with this address, all direct
usages of this part on higher-level assemblies are linked together in a part number where-used chain.
The address of the next item master record in an activity chain. Activity chains
link together all active item master records with a common low-level code.
Each of the chains is anchored in a segment of a core storage level table that
corresponds to the low-level code of the
item master. The chain is also used
in summarized explosions and implosions.
The compare portion of the next part
number in the activity chain used to check
continuity.
Run Activity Control Number
An aid to reconstruction and restart procedures, and to specialized retrieval
functions. At the beginning of any application program run, the program
accesses this field, updates it by one,
and displays' the run number on the operations log.
Overflow Chain Address for Sequential Additions
The link field by which additions to the
file, though located physically in a different part of the file, may nevertheless
be treated as in logical part number
sequence.
Address of First Routing Operation
Beginning with this address, all operations required to manufacture a part or
an assembly are linked together in a forward routing chain. This chain is maintained in ascending sequence specified
by the user.
*Indicates fields and labels required by the IBM System/360 Bill of Material Processor program
(360-ME-06X). See programmer's manual (H20-0246).
116
Field
No.
Symbol
Field Name
Description
18
*
Address of Last Routing Operation
Beginning with this address, all operations in a fabrication or an assembly
routing are linked together in a backward
chain maintained in descending sequence
by operation number. The use of a backward chain may speed date calculation for
scheduling purposes. It may also speed
maintenance for the routing file.
19
*
Record Count for Standard Routings
The total number of operations in a fabrication or an assembly. It is used as a
test on the number of accesses in a forward or backward routing chain.
20
MOPOC
Order Policy
Order Code
Code
A - Discrete Quantity
Codes are organized to select specific
ordering plans:
The items covered by this code are
ordered to meet requirements with minimum or no protective stock.
B - Order POint/Order Quantity Ordering under this policy is of a fixed
order quantity ordered at some predetermined level of inventory.
C - Order Point/Order-Up-to
Level
This method orders enough to return inventory to a user specified level.
D - Fixed EOQ
Each time an order is placed the quantity
has been predetermined by the amount
shown in this field. The quantity is recomputed periodically.
E - Dynamically computed
EOQ
The quantity ordered varies to reflect
future demand, which, in turn, varies from
period to period. Each order placed is
for a newly computed quantity.
21
MOPOP
Order Point
The quantity expected to be consumed
during the replenishment lead time plus a
reserve. It is average demand multiplied
by lead time plus safety stock.
22
MOPOQ
Order Quantity or Order-Up-to
Level
Order quantity is the amount to be ordered
when the order point is reached. It is also
used by requirements planning if fixed EOQ
is used. If item coded order-up-to level
(C in MO POC), this field has the level
instead of order quantity.
23
MOPSS
Safety Stock
The amount of stock to protect against uncertainty in demand and in the length of
the replenishment lead time.
*Indicates fields and labels required by the IBM System/360 Bill of Material Processor program
(360-ME-06X). See programmer's manual (H20-0246).
.117
Field
No.
Symbol
Field Name
Description
24
MOPMN
Minimum
Customer-specified minimum allowable
order quantity.
25
MOPMX
Maximum
Customer-specified maximum allowable
order quantity.
26
MOPMU
Multiple
The number to be used in rounding of order
quantity (for example, even 100s or
multiples of 10, etc.).
27
MOP OR
Modifier to Order Policy
Used to contain either number-days-supply
or maximum quantity modifier to an order
policy
28
MOPRC
Modifier Code
Used to determine whether MOPOR contains number-days supply or maximum
quantity modifier
29
MOPCD
Modifier-Cutoff Date
Used to restrict number of days to be considered in an order policy for this item.
30
MUCTL
Total Unit Cost
Total unit cost for this item
31
MUCSU
Total Setup Cost
Total setup cost for this item
32
MOPCR
Carrying Rate
Carrying rate per period for this item
33
MFCMT
34
MFCFA
First Average
Field contains the average demand to be
used with 1st and 2nd order smoothing.
35
MFCSA
Second Average
Field used in 2nd order smoothing to smooth
the 1st average.
36
MFCTM
Trend
The result of the trend calculations performed during the update and project run.
37
MFCSF
Safety Factor
Forecasting or Projection
Model Type
Models may be classified into four types:
constant, trend, seasonal, and trend-seasonal.
A number used for computation of safety stock.
If statistical methods are used, this factor is
multiplied by MAD (adjusted for lead time)
to determine safety stock. The safety factor
may be time or a percentage of lead time which
is used with average demand to calculate
safety stock.
118
38
MFCAD
Average Demand
The average demand as computed during
the update and project run.
39
MFCMD
Mean Absolute Deviation (MAD)
The average of the differences between actual
demand and average demand for an item, as
determined each time average demand is
calculated (e. g., every two weeks). All
differences are considered positive.
40
MFCSD
Sum of Deviations
Sum of deviations between actual demand
and estimated demand; used to determine
the accuracy of the forecast.
Field
No.
Symbol
41
MFCAL
Alpha
Smoothing constant. The weighting factor to
be assigned to current data and past demand.
The higher the factor, the greater weight
given to recent demand.
42
MFCFP
Number Forecast Periods
Number of periods to extend or to project
demand.
43
MFCBI
Base Indices
A series of factors used to adjust the
averages for cyclic demand patterns.
44
MSHRF
Shrinkage Factor
The factor of percentage by which an order
may be expected to change in quantity during
manufacture because of losses from scrap,
deterioration, pilferage, etc.
45
MLTPU
Lead Time - Purchasing
The time it takes to receive an order for a
purchased item from a vendor; includes internal purchasing cycle and vendor lead time.
46
MLTPR
MLTSU
MLTRN
MLTQM
Lead Time - Production
Set-Up Time
Run Time
Queue/Move Time
The total time required to produce an
order; includes set-up, run, and Queue/
Move time.
47
MRMNO
Raw Material Number
Identification of the raw material to produce this item.
48
MRMUQ
Raw Material Unit Quantity per
This Part
Amount of raw material required for this
item; not needed if raw material is part
of the product structure.
49
MUCSM
Unit Cost
Standard Material Cost
50
MUCSL
Standard Labor Cost
Standard labor cost applied to this item
number.
51
MUCSB
Standard Burden Cost
Standard burden cost applied to this item
number.
52
MUCAM
Actual Material Cost
Actual material cost for this item number.
53
MUCAL
Actual Labor Cost
Actual labor cost for this item number.
54
MUCAB
Actual Burden Cost
Actual burden cost applied to this item
number.
55
MUPLP
56
MUPNP
Net Price
Net price for sale of item.
57
MUPDC
Discount Codes
Price code for pricing structure (for
example, discount from list or net, applicable in sale to jobber, dealer, etc.).
Field Name
Unit Price
List Price
Description
Standard material cost applied to this item
number.
List price for sale of item.
119
Field
No.
Symbol
58
MPUPD
59
MPUQD
Demand Quantity
Total demand during past number of
periods.
60
MPUPI
Number Periods Issues
Cumulative periods of issues or disbursements (for example, past six months,
past year).
61
MPUQI
Issues Quantity
Total disbursements during past number
of periods.
62
MCSBI
63
MCSTA
Transfers and Adjustments
Running sum of the transfers and adjustments made to the inventory of an item
during the current time period. Starts
over at zero at the beginning of the next
time period.
64
MCSRE
Receipts
Running sum of the inventory receipts
made during the current time period.
Starts over at zero at the beginning of
the next time period.
65
MCSIS
Issues
Running sum of the inventory disbursements made during the current time
period.' Starts over at zero at the beginning of the next time period.
66
MSSDE
Demand
Running sum of the actual demand for an
item (whether satisfied or not) during the
current time period. Starts over at zero
at the beginning of the next time period.
67
MOHTQ
68
MOHNL
Number locations
Total number of stock locations.
69
MOHPA
Primary Location - Area Code
An area code to identify (a) warehouse
number, (b) building number, (c) department number, or (d) stockroom number,
(Primary location fields represent the
first material location area. Multiple
locations are chained to this record field.),
120
Field Name
Parts Usage History
Number Periods Demand
Current Period
Beginning Inventory
Inventory On Hand
Total Quantity
Description
Cumulative periods of demand (for
example, past six months, past year).
The amount in inventory at the beginning
of the current time period.
Grand total units on hand at all stock
locations.
Field
No.
Symbol
Field Name
Description
70
MOHPQ
Primary Location - Quantity
Quantity of stock on hand at this location.
71
MOHML
Primary Location - Stock Location
Location of stock on hand. Material might
be stored by (a) row/tier, (b) aisle number, or (c) floor location.
72
MOHML
Address to Multiple locations
Linkages to all additional stock locations.
These fields correspond to primary
location layout.
73
MALQT
Allocated Quantity
A quantity of stock on hand or on order
earmarked to cover requirements.
74
MBOQT
Back Orders Quantity
Requirements that have been received
but that have not been fulfilled because of
a lack of materials or parts.
75
MPJSW
Project Gross Indicator
Indicator used to determine whether this
item is to have its gross reqUirements
projected by determining the number of
periods lmown requirements and projecting
an average of this demand for the periods
with no lmown requirements.
76
MPJFT
Project Gross Factor
Used to adjust, up or down, the average of
the known requirements when projecting
gross requirements.
77
MPITI
78
MPIQC
Quantity Count
Quantity or wieght count taken on individual items during physical inventory.
79
MPICN
Checker Number
Man number identifying stockman counting
the inventory.
80
MPIDL
Date of Last Count
Date inventory was taken for this item.
81
MPIDN
Date of Next Count
Date of next inventory-taking, as generated
by the computer.
82
MPRGR
83
MPRPA
Physical Inventory
Type Inventory
Projected Order Requirements
Gross Requirements
Address to Pegged Requirements
Code denoting category of physical
inventory-taking (for example, annual
audit, rotating count, periodic).
Total requirements accumulated by time
periods before consideration of available
inventory.
Direct access device address to pegged
requirements file.
121
Field
No.
Symbol
84
MPRPM
Planned Orders
Net quantity planned to be purchased or to
be shop-produced by time period.
85
MPRPE
Released Orders
Sum of all the quantities of orders that
have been placed in the release cycle by
time period.
Field Name
Pegged Requirements
Part Number Requirement
This Part Number
Description
86
MPRTN
87
MPRTQ
Quantity
The gross required quantity for this item.
88
MPRTD
Scheduled Due Date
The date this item is required.
89
MPRIN
90
MPRIQ
Quantity
The gross required quantity for this item.
91
MPRID
Scheduled Due Date
The date this item is required.
92
MPRFN
93
MPRFQ
Quantity
The gross required quantity for this item.
94
MPRFD
Scheduled Due Date
The date this item is required.
95
MPRFC
Customer Order Number
Customer order number associated with
this item number and due date.
96
MPRFP
Production Order Number
Production order number associated with
this item number and due date.
97
MPRNA
Address to Next Requirement
Address of next pegged requirement.
98
MTOOQ
Grand Total On-Order Quantity
Grand total on-order quantity of this item
'as a result of adding (a) total purchase
requisitions, (b) total purchase orders,
and (c) total production in process.
99
MPURQ
Total Requisition Quantity
Total quantity on order from purchase
requisitions.
100
MPURA
Address Requisition Detail
Chain address to open purchase requisition detail records (quantity in each requisition should balance to total quantity
above).
Immediate U~e
Part Number
Finished Product Use
Part Number
A part number designation for this item
that is pegged.
A part number designation for this item.
A part number designation for this item.
On Order - Purchasing
122
Field
No.
Symbol
Field Name
Description
101
MPUPQ
Total Purchase Order Quantity
Total quantity on order from purchase
orders.
102
MPUPA
Address Purchase Order Detail
Chain address to open purchase order
detail records (quantity in each purchase
order should balance to total quantity
above).
103
MPUPM
Address to Purchase Masters
Chain address to purchase master file.
104
MPUVM
Address to Vendor Masters
Chain address to vendor master file.
105
MPRPQ
Total On-Order Production Quantity
Total quantity in production for this item.
106
MPRPA
Address to On-Order Production
Detail
Chain address to open job order summary
records (quantity in each record should
balance to total quantity above).
107
MEDNO
Engineering Drawing Number
The number that identifies the drawing
for this item.
108
MEDDT
Engineering Drawing Date
The date of the engineering drawing.
109
MECPN
110
MECPR
Reason for Change
A code to denote why the change was
made. Examples include:
1. Safety
2. Emergency
3. Field trouble
4. Cost reduction
5. Product improvement
6. Correction
7. Sales request
8. Factory \service
9. Suggestion
10. Standardization
11. Special customer options
12. New product planning
111
MECPP
Disposition
Code to indicate the action to be taken;
for example:
1. Use all parts
2. Rework all parts
3. Scrap all pa~ts when new p~rts are
available
4. Use to minimum quantity
5. Mandatory changes (stops activity
immediately)
Engineering Change Control
Last Change Number
The number of the engineering change that
was issued before the current change
number.
123
Field
No.
124
Symbol
Field Name
Description
112
MECPD
113
MECCN
114
MECCR
Reason for Change
Code to indicate why the change is being
made. See field number 103 for example.
115
MECCP
Disposition
Code to identify the action required relative to the change. See Field number 104
for example.
116
MECCD
Effectivity Date
Estimated or planned date when the
change will be effected.
117
MECCQ
Effectivity Quantity
On -hand inventory quantity for the part
which when reached, signals that all
future production be made at the design
level indicated by this engineering change
number.
Effectivity Date
Current Change
Number
The date the engineering change was
effective.
The number for the most recent change.
SECTION B: OPEN PURCHASE REQUISITION
Purchase
Requisition
Number
Date
Item
Number
1
2
3
Buyer
Number
Requisition
Quantity
4
Date
Required
5
6
Vendor
Number
or
Numbers
Account
Number
7
8
Date
Closed
9
Address
to
next
requisition
this Item
10
OPEN PURCHASE REQUISITION (PR)
Field
No.
Symbol
Field Name
Description
1
PRNUM
Purchase Requisition Number
Identification numbers serially assigned
to each requisitl~: This is the detail
record that supports the total quantity
open requisitions field of the item master.
2
PRDAT
Purchase Requisition Date
Date of the requisition.
3
PRITN
Item Number
This number is also recorded in the item
master. The item is classified as an
assembled part, component part, raw
material, or purchased part.
4
PRBUY
Buyer Number
Buyer to whom requisition is directed.
5
PRQTY
Requisition Quantity
Quantity of parts or material required.
6
PRDTR
Date Required
7
PRVNO
Vendor Number or Numbers
Identification number(s) assigned to each
vendor or vendors.
8
PRACN
Account Number
Accounts payable charge number.
9
PRDTC
Date Closed
Requisition closeout or completion.
10
PRNRA
Address to Next Requisition This
Item
Linkage to next requisition number for
this item.
-Month/day/year that purchased part or
material is to be received.
125
SECTION C: OPEN PURCHASE ORDER
Vendor Vendor Order
Item
Buyer
Number Number Number Terms Status
Purchase
Order
Requisition
Ship Delivery
Date Date
Stock
Date
Distribution
Code
Vendor Promise Date
Number Date
First
Latest
Number IDate
11
12
14
13
16
15.
I
Received
) Quantity
Ordered
Quantity Date Receiving
(
Report
)
Number
18
17
Rejected
Quantity
Date
30
31
19
Unit
Price
Other
Charges
32
33
21
20
Total
Amount
Paid
22
Account
Number
23
24
25
Date
last
Payment
Date
Closed
Address to
next Open
Purchase Order
this Item
36
37
38
\
26
27
28
29
34
35
OPEN PURCHASE ORDER (PO)
Field
No.
Symbol
11
PONUM
Purchase Order Number
Identification number serially assigned to
each purchase order. This is the detail
record that supports the total quantity
open purchase orders field of the item
master.
12
PODAT
Purchase Order Date
Month/day/year that the purchase order
was prepared.
13
POITN
Item Number
This number is also recorded in the item
master record. The item is classified as
an assembled part, component part, raw
material, or purchased part.
126
Field Name
Description
Field
No.
Symbol
Field Name
Description
14
POBNO
Buyer Number
Code identification of the buyer who processed the purchase order.
15
POVNO
Vendor Number
Identification code assigned to each vendor.
16
POVTR
Vendor Terms
PaYment discount terms.
17
POSTA
Order Status
Code indicating that order is (a) completed,
(b) pending arrival of a rush shipment,
etc.
18
PORQN
Requisition Number
Number of original requisition against
which this order has been prepared.
19
PORQD
Requisition Date
Month/day/year that the requisition for
parts or material was prepared.
20
POSHD
Ship Date
Month/day/year that shipment is to be
sent by vendor.
21
PODED
Delivery Date
Month/day/year that shipment is to be
received.
22
POSTD
Stock Date
Month/day/year that parts or material is
to be entered into inventory.
23
PODCD
Distribution Code
Department or area earmarked to receive material from this order.
24
POVPF
Vendor Promise Date
First
25
POVPL
26
POQTY
Quantity Ordered
Quantity of parts or material purchased.
27
POQRE
Quantity Received
Quantity of parts or material received.
28
PODRE
Date Received
Date material is received.
29
PORRN
Receiving Report Number
Number of receipts document for incoming
vendor material.
30
POQRJ
Quantity Rejected
Quantity of parts or material rejected by
inspection department.
31
PODRJ
Date Rejected
Date inspection department rejected
material.
32
POUNP
Unit Price
Cost of parts or material for an established unit of measure.
Latest
Month/day/year that the shipment was
originally to be received from vendor.
Month/day/year that the latest promised delivery
date was revised by the vendor.
127
Field
No.
128
Symbol
Field Name
, Description
33
POOTC
Other Charges
Costs in addition to the purchase of parts
or material. This involves miscellaneous
freight, insurance, handling, crating,
etc.
34
POTAP
Total Amount Paid
Total dollars paid to vendor to date.
35
POACN
Account Number
Accounts Payable charge number.
36
PODLP
Date Last Payment
Month/ day/year of most recent payment
to vendor.
37
PODTC
Date Closed
Purchase order closeout or completion.
38
PONIA
Address to Next Open Order This
Item
Address of next purchase order for the
same item.
SECTION D: VENDOR MASTER
Vendor
Number
1
I
Name and
Address/
Telephone No.
2
Number
Rejected
Shipments
Terms
Ship
Via
FOB
Point
3
4
5
Delivery
Rating
6
Quality
Rating
12
Vendor
Contact
Buyer
Number
7
8
Date
Current Month
14
15
13
Number Shipments
Inspected
Number
Deliveries
I)
10
9
Total Payments
to Vendor
Last Shipment
1
11
Major
Commodities
I
YTD
16
VENDOR MASTER (PV)
Field
No.
Field Name
Symbol
Description
1
PVVNO
Vendor Number
Identification code assigned to each
vendor.
2
PVNAT
Name and Address/Telephone No.
Vendor name, street number, city, state,
and telephone contact.
3
PVTER
Terms
Payment discount terms.
4
PVROU
Ship Via
Method of shipping purchased material.
5
PVFOB
FOB Point
Number code representing delivery destination point.
6
PVMAC
Major Commodities
Most important products sold by the
vendor.
7
PVVEC
Vendor Contact
The individual employed by a vendor who
can be contacted regarding status of
orders, shipments, schedules, etc.
8
PVCOB
Buyer Number
Top buyer contact.
9
PVNSI
Number Shipments Inspected
That portion of a vendor's shipments
inspected when received.
10
PVNOD
Number Deliveries
Number of deliveries from a vendor to
date.
129
Field
No.
130
Symbol
Field Name
Description
11
PVNRS
Number Rejected Shipments
Number of shipments from a vendor rej ected to date.
12
PVDRA
Delivery Rating
Average monthly rating, computed each
month, of days late.
13
PVQRA
Quality Rating
Average monthly rating, computed each
month, of rejects.
14
PVLSD
Last Shipment Date
Date vendor made most recent shipment.
15
PVTPC
Total Payments
Current Month
16
PVTPY
Year to Date
Total payments made to vendor this
month or period.
Total payments made to vendor year to
date.
SECTION E: PURCHASE MASTER
,
Item
Number
Blanket
Purchase
Order No.
Num ber Purchase Orders
Last Five Quotations
Previous Year
YTD
Quote
Vendor
Number
Number
2
{
3
5
4
I
6
Date
I
7
Quantity
8
Purchase Order
Price
Breaks
~
Number
15
16
\
14
9
10
Minimum
Lot
Quantity
V
12
11
Last Six Buys
Quote Expiration
Date
13
Other
Charges
Terms
Last Five Quotations
Minimum
Lot
Price
Unit
Price
I
Vendor
Number
Quantity
Unit
Price
Status
of Buy
~
Date
17
Date
Closed
18
19
20
21
22
PURCHASE MASTER (PM)
Field
No.
Field Name
Symbol
Description
1
PMITN
Item Number
Purchased part number, identifiable by
the item master record.
2
PMBPO
Blanket Purchase Order Number
Single purchase order number applicable
to innumerable purchases.
3
PMNOY
Number Orders Year to Date
Number of orders to a particular vendor
or for particular parts or materials year
to date.
4
PMNOP
Number Orders Previous Year
Same as preceding, but for the previous
year.
PMQVN
Last Five Quotations
Vendor Numb~r
PMNOQ
Quote Number
5
6
A number assigned to identify each vendor
against which a quotation has been placed.
A number assigned to quotations from
selected vendor for a particular part or
material.
131
Field
No.
.132
Symbol
Field Name
Description
7
PMQQD
Quote Date
Month/day/year that a vendor submitted
a quotation.
S
PMQTE
Quote Terms
Payment
9
PMQQT
Quote Quantity
The quantity of parts or material quoted
by a vendor.
10
PMQPR
Quote Unit Price
The price of a part or material quoted by
the vendor.
11
PMQOC
other Charges
Costs in addition to the purchase price,
such as freight, special handling, etc.
12
PMQMQ
Minimum Lot Quantity
The minimum batch quantity of an item
that must be purchased.
13
PMQMP
Minimum Lot Price
The lowest amount that is paid for a
specified batch quantity of an item.
14
PMQED
Quote Expiration Date
The date that a price quotation is no
longer valid.
15
PMPBR
Price Breaks
16
PMR'PO
Last Six Buys
Purchase Order Number
17
PMPPD
Purchase Order Date
The month/day/year that the recent purchase order was written.
18
PMRVN
Vendor Number
A number identifying the recent supplier
of a part of material.
19
PMRQT
Quantity
The quantity of the recent purchase order.
20
PMRUP
Unit Price
The price per unit of a part of material
quoted recently.
21
PMRSB
Status of Buy
Status code representing recent buy-for example, awaiting receipt, awaiting
invoice, etc.
22
PMRDC
Date Closed
Date that final shipment arrives and is
paid for .
disco~t
terms for this quotation
Vendor prices based on lot quantities
The number of the recent purchase order
for a part or material.
SECTION F: OPEN JOB ORDER SUMMARY
Order
Nwnber
1
{
\
Lead
Time
Item
Number
Number
Operations
this
Order
Original
Order
Quantity
3
4
2
Job
Priority
12
Engineering
Change
Number
Status
Code
14
15
(
Labor Costs
I
)
13
Standard
Standard
to
Date
23
24
\
Actual
to
Date
25
Address to
Operations Detail
6
5
Quantity
Completed
Previous
Operation
7
Current Operation
(
"
Number
Completed
Operations
Work
Center
Operation
Number
Quantity
to Complete
Quantity
Completed
16
17
18
19
Date
last
activity
Address
to
next
Order Number
26
27
Scheduled
Actual
Start
Due
Date
Start
8
9
10
Shrinkage
Factor
20
Scrap
Reported
21
J
Complete
}
11
Standard
Material
Costs
I
22
133
OPEN JOB ORDER SUMMARY (OS)
Field
No.
134
Field Name
Symbol
Description
1
OSONO
Order Nwnber
The number assigned to the shop order
for identification.
2
OSITO
Item Number
The number of the item for which the
order was issued.
3
OSNOT
Number Operations This Order
The number of operations that must be
performed to produce the item.
4
OSOOQ
Original Order Quantity
The quantity that was ordered.
5
OSNCO
Number Completed Operations
The number of operations that have been
reported complete.
6
OSODA
Address to Operations Detail
The address to the detail operations records. It is the address of the operation
that is currently being processed.
7
OSQCP
Quantity Completed Previous
Operation
The quantity that was reported at the end
of the last operation.
8
OSSSD
Scheduled Start Date
The date this order was originally scheduled to start in the shop.
9
OSSDD
Scheduled Due Date
The date on which the order was scheduled to be completed.
10
OSASD
Actual Start Date
The date the order was started in the shop,
as determined by feedback.
11
OSACD
Actual Completion Date
The shop date the order was reported to
be complete.
12
OSLDT
Lead Time
The estimate of time required to do the
work in the shop.
13
OSJOP
Job Priority
A value calculated to enable a scheduling
system to rank this order relative to all
others; for example, this can be the result of average slack per remaining operation calculations (see "Operation Scheduling")
14
OSECN
Engineering Change Number
The number that identifies the change
level under which this order is to be
produced.
15
OSSTC
Status Code
A code to summarize the status of the
order, for example, on time, late, expedite, etc. It can be used to influence
the priority value.
Field
No.
Symbol
Field Name
Current Operation
Work Center
Description
The number of the work center where the
work is currently being performed.
16
OSCOW
17
OSCOO
Operation Number
The nwnber of the operation currently being worked.
18
OSCOQ
Quantity to Complete
The number of pieces that have not been
reported complete.
19
OSCOC
Quantity Completed
The quantity reported completed for the
current operation.
20
OSSHF
Shrinkage Factor
The quantity or scrap factor associated
with the order.
21
OSSCR
Scrap Reported
The quantity of scrap that has been recorded to date.
22
OSSMC
Standard Material Costs
The standard costs for the material used
for the order.
23
OSLCS
24
OSLCD
Standard to Date
The accumulation of the standard costs
that have been reported to date. It is the
sum of the standard costs of completed
operations.
25
OSLCA
Actual to Date
The actual labor costs that were reported
for the completed operations.
26
OSDLA
Date Last Activity
The date this shop order record was last
changed.
27
OSNOA
Address to Next Order Number
The address where the next order (for
this same item number) is stored in the
file.
Labor Costs
Standard
The standard labor costs for the order.
135
SECTION G: PRODUCT STRUCTURE
Record
Status
Code
Component Item Number
Master
File
Address
1
Compare
Ponion
of
Item Number
Parent Item Number
Master
File
Address
Quantity
per
Assembly
Next
Component
Address
Where-Used Chain Address
this Item
Compare
Portion
of
Item Number
Next
Previous
8
9
3
4
Scrap
Factor
Offset
Adjustment
11
12
•
•
2
Current
Engineering
Change
Number
5
6
7
10
PRODUCT STRUCTURE (S)
Field
No.
1
Symbol
SRSCO
Description
Field Name
Code to indicate the present status of this
product structure record, for example:
Record Status Code
1. Engineering Add: This record is part
of the product structure but is not to
be used in retrieval runs pending the
effectivity of the latest engineering
change. When the change is made,
the record code is changed to (3) Build.
2. Engineering Delete: This record is
still active in the product structure and
is used in retrieval runs until the latest
engineering change effectivity causes it
to be put in (4) Inactive status:
3. Build: This record is in the product
structure at a given design level
(indicated by the engineering change
number) and is to be used in all
retrieval runs.
4. Inactive: This record is awaiting
physical removal from the file because it has been superseded.
136
2
*
Component Item Master File
Address
The direct access device address of the
component item number master record.
3
*
Compare Portion of Component
Item Master
The portion of the component item number
used for checking purposes.
4
*
Parent Item Master File
5
*
Compare Portion of Parent Item
Master
Addr~ss
The address of the parent item number
master record.
The portion of the parent item number
used for checking purposes.
Field
No.
Symbol
Field Name
Description
6
*
Quantity per Assembly
The quantity of this component used in
the parent assembly.
7
*
Next Component Address
Address of the product structure record
representing the next component of the
parent assembly.
8
*
Address of Next Where-Used This
Item
Address of the product structure record
representing another usage of this item
number in another assembly.
9
*
Address of Previous Where-Used
This Item
Address of the product structure record
representing another (previous) usage of
this item number in another assembly.
10
SCECN
Current Engineering Change
Number
Current engineering change number that
applies to this usage of this item.
11
SPSSF
Sc rap Factor
Used to increase a component's gross
requirements to reflect a scrap loss when
assembled to a specific parent item.
12
SPSOA
Offset Adjustment
Used to adjust the required date of a component's gross requirements to more
accurately reflect the date required in
assembly to a specific parent item.
*Indicates fields and labels required by the IBM System/360 Bill of Material Processor program
(360-ME-06X). See programmer's manual (H20-0246).
137
SECTION H: STANDARD ROUTING
Operation
Number
Sequence
Number
this
Routing
File Addresses
Item
Master
Compare
Portion
of
Item Master
Next
Operation
this
Routing
Previous
Operation
this
Routing
Work Center
Where- Used Chain
Next
I
I
Operation
Classification
3
4
5
7
6
Tool
Information
Operation Definition
138
14
9
10
I
WORK CENTER
Master
Address
Compare
Portion
11
12
Previous
15
16
17
18
19
8
Move
Time
Time Standards
SetDescription Work
Machine Code Next Tool
Number
Center
Usage Number up
( Department
Code
Group)
13
Alternate
Operations
Address
•
•
2
1
Special
Action
Codes
20
Setup
Hours
21
Labor
Hours
Machine
Hours
23
24
Shrink- Current
Engineering
age
Factor Change
Number
25
26
STANDARD ROUTING (R)
Field
No.
Symbol
Field Name
Description
Operation Number
Number assigned to this manufacturing
or assembly operation.
Sequence Nwnber This Routing
Number indicating the position of this
operation in this routing.
1
ROPNO
2
*
3
*
4
*
Compare Portion of Item
Master
Portion of the item number used for
checldng purposes.
5
*
Next Operation This Routing
Address of the operation routing record
for the next sequential operation in this
routing.
6
*
Previous Operation This
Routing
Address of the operation routing record
for the sequentially previous operation
in this routing.
7
*
Work Center Where-Used
Chain - Next
(t) Address of the operation routing
*
Work Center Where-Used
Chain - Previous
( t) Address of the operation routing
8
File Addresses
Item Master Address
Address at which the item master record
for the item is to be found.
record representing next usage of
this work center.
record representing previous usage
of this work center.
9
RSACO
Special Action Code s
Codes to designate (1) lap phaSing, (2)
multiple machines, or (3) alternate
work centers.
10
RAOPA
Alternate Operations Address
The address where alternate routing for
the item can be found.
11
*
Work Center Master Address
The location where the__ master record
for the work center can be found.
12
*
Compare Portion of Work Center
Number
Portion of work center number used for
checldng purposes.
13
ROPCL
Operations Classification
Code to indicate the type of operation,
for example:
1. Primary - mo st de si rable method
of production
2. Alternate - less desirable but acceptable method of production; etc.
*Indicates fields and labels required by the IBM System/360 Bill of Material Processor program
(360-ME-06X). See programmer's manual (H20-0246).
( t) These addresses are required to maintain bidirectional chaining of all the uses of a work center.
139
140
Field
No.
Symbol
Field Name
14
ROPDE
Operation Definition
Description
15
RWCND
Work Center or Department
Number or Group Number
Work center may be classified as department number or machine group number
in which work is to be performed.
16
ROPMN
Machine Number
Actual machine on which the work is to
be performed, if this is a requirement.
17
RTOCO
\ Tool Information
Code
18
RTONV
Next Usage
This field contains the location of the
next usage for a particular tool when
one tool is required on the operation.
If more than one tool is used, it is the
address where the information for
multiple tool usage is stored.
19
RTONO
Tool Number
The identification number of the tool
required for this operation. If more
than one tool is required, this field is
blank. The tool numbers are stored in
the multiple usage area.
20
RTSUC
Time Standards
Setup Code
21
RTSSH
Setup Hours
The established standard for the amount
of time required to set up the equipment
to perform this operation.
22
RTSLH
Labor Hours
The established standard for the amount
of direct labor required to perform this
operation.
23
RTSMH
Machine Hours
The established standard for the number
of machine hours required to perform
this operation.
24
RMOVE
Move Time
An estimate of the time required to move
the order to the next work center.
25
RSHRF
Shrinkage Factor
Factor used to compute scrap that relates to this operation.
26
RCECN
Current Engineering
Change Number
This number identifies the design level
(of the item) with which this operation
is associated.
Description
Short description of the operation, for
example, drill, mill, bore, etc.
A code specifying the number of tools
required for this operation. It is also
used to determine the contents of the
next two fields.
Code to specify if setup is applicable to
man, machine, or both, or setup pool.
SECTION I: WORK CENTER MASTER
First Operation
in
Where- Used Chain
Work Center
Identification
Department
Number
Machine
Group
Number
Address
•
2
1
(
I
t
No.
Shifts
Hrs.
Per
Shift
15
16
SU
•
•
•
3
4
5
\
Work
Center
Efficiency
7
6
Move
Time
14
13
Daily Capacity
(Desired)
Labor
SU
Machine
Labor
18
19
20
21
22
Machine
Capacity
Address to
Detail of
Machines
in this Group
}
Machine
17
Description
Number
Machines
in this
Machine
Group
V
1\
Machine Detail
Machine
Number
Make and
Model
Maintenance
Data
)
(
I
8
10
9
/
(
Record
Count
Daily Capacity
(Maximum)
(
)
Overflow
Chain Address
For
Sequential
Additions
12
11
Work Center Projections
Available
Labor
(Hours)
I
Current
Period
I
Period
1
-
Available
Machine
(Hours)
Jobs in Center
Period
1
Current
Period
-
Planned
Order
LOad
Current
Period
Period
1
-
Total
Load
Hours
Address of
First Operation
in Work Center
'~
(See operation
detail. )
1
)
25
24
23
Manned Machines by Shift
Weekday
(Shifts 1-3)
Weekend
(Shifts 1-3)
Total Actual
Hours
Machine
28
29
27
Hours Completed this Center this Period
Total Standard
Hours
I
)
26
30
I
Labor
31
Machine
32
1
Labor
33
Address to
Completed
Operations
this Work Center
34
141
WORK CENTER MASTER (W)
Field
No.
Symbol
Field Name
Work Center Identification
Department Number
Description
1
*
2
WMAGR
3
. *
First Operation in Where- Used
Chain Address
Address of the first operation routing
record for the first operation in a chain
of operations performed by this department - machine group.
4
*
Record Count for Work Center
Where-Used Chain
A count of operation routing records
present in the where-used chain for this
department - machine group. It is provided for audit and control.
5
*
Overflow Chain Address for
Sequential Additions
Address to additions to the file that are
located physically in a different part of
the file and that may be treated logically
as if in department - machine group
identification number sequence.
6
WNMTG
Number of Machines in This
Machine Group
Physical count of like machines or work
stations assigned to this department machine group.
7
WADMG
Address to Detail of Machines
in This Machine Group
Addres s to machine detail file.
8
WMDMN
9
WMDDE
Description
Denotes machine category, for example,
vertical mill, horizontal lathe, etc.
10
WMDMC
Machine Capacity
Denotes pertinent machine information,
for example, tonnage, stroke, etc.
11
WMDMM
Make and Model
Shows manufacturer and model number.
12
WMDMD
Maintenance Data
Denotes due date for scheduled preventive
maintenance or date last maintenance was
performed.
Machine Group Number
Machine Detail
Machine Number
Identific ation of a phys ical unit within
a manufacturing facility, which may be
further subdivided into smaller classifications of like machines or work centers.
Identification of a single machine or work
station or of a group of like machines or
work stations within a department.
Number of the machine.
*Jndicates fields and labels required by the IBM System/360 Bill of Material Processor program
(360-ME-06X). See programmer's manual (H20-0246).
.
142
Field
No.
Field Name
Symbol
Description
13
WEFIC
Work Center Efficiency
As defined for use with the operation
scheduling subsystem, this factor is a
ratio of standard hours to actual hours.
It reflects historic data and is used to
estimate how much work (in standard
hours) should be scheduled relative to
the capacity.
14
WMOVE
Move Time
For use with operation scheduling. An
estimate of the average amount of time
required to move work from this work
center.
15
WNOSH
Number of Shifts
Number of shifts generally worked by this
center.
16
WHRSH
Hours per Shift
Number of hours normally worked by shift
for the work center.
17
WMCSU
Maximum Setup Hours
Maximum number of setup hours that can
feasibly be worked in a day (extra shifts
or overtime).
18
WMCMC
Maximum Machine Hours
Maximum number of machine hours that
can feasibly be worked in a day.
19
WMCLA
Maximum Labor Hours
Maximum number of labor hours that can
feasibly be worked in a day.
20
WDCSU
Desired Setup Hours
The current or desired level of operation
for setup porposes.
21
WDCMC
Desired Machine Hours
The current or desired level of operation
for machine hours per day.
22
WDCLA
Desired Labor Hours
The current or desi red level of operation
for labor hours per day.
23
WPALH
Work Center Projections
Available Labor (Hours)
24
WPAMH
Available Machine Hours
Same as labor hours, except that it reflects available machine hours.
25
WPPLO
Planned Order Load
The load hours that were summarized in
the capacity planning SUbsystem as a result of processing planned orders. It
may be subdivided into labor and machine
hours.
The capacity (expressed in labor hours)
that is available for planning. It reflects
the number of men expected to be available at the work center by time period.
143
Field
No.
144
Symbol
26
WCTLH
27
WCFOA
28
WMMWD
29
WMMWE
Field Name
Jobs in Center
Total Load Hours
Address of First Operation in
Work Center
Manned Machines by Shift
Weekday
Weekend
Description
The total load at this work center that
reflects the remaining time of operations
being performed or waiting to be processed,
as determined by shop floor control.
The operations in the open job order file
are chained to the work center master.
This is the address of the first operation.
Three numbers that indicate the staff for
this work center by shift for Monday
through Friday.
Three numbers that indicate the staff for
weekends.
30
WHCAM
Hours Completed This Center
This Period
Total Actual Machine Hours
31
WHCAL
Total Actual Labor Hours
Total labor hours reported on completed
jobs - period to date.
32
WHCSM
Total Standard Machine
Hours
Total standard machine hours earned for
completed operations this period to date.
33
WHCSL
Total Standard Labor Hours
Total standard labor hours earned for
completed operations this period to date.
34
WHCOA
Address to Completed Operations this Center
A chaih of all completed operations for
this work center. This is the address of
the first operation in a series. Each
operation record has the address of the
next record for this work center.
Total machine hours reported on completed job - period to date.
SECTION J: OPEN JOB OPERATION DETAIL
I
}
~
Work
Center
Number
Order
Number
1
2
Move
Time
Item
Number
Operation
Number
3
Scheduled
Start
Actual
Start
Completion
Sequence
Number
4
5
Previous
Work
Center
Previous Operation
(
12
Status
Code
14
13
16
Setup
25
I
Labor
26
I
Must Run
Machine
Number
Special
Action
Code
7
6
Quantity
Completed
17
18
Labor
27
28
I
Next
Usage
19
Machine
29
Shrinkage
Factor
Work
Center
21
22
Labor Costs
30
I{
II
11
Next
20
Standard
Tool
Number
10
9
Quantity
Scrapped
Actual Hours
Machine
Code
8
Quantity
Completed
)
Tool Information
This Operation
Operation
Number
Standard Hours this Order Quantity
'-I
24
15
Operation
Description
I
Actual
31
Operation
Number
IJ
23
Date
Last
Activity
32
145
OPEN JOB OPERATION DETAIL (OD)
Field
No.
Symbol
Field Name
Description
1
ODWKC
Work Center
The location where the work is to be
performed.
2
ODORN
Order Number
Identification number for a shop order.
3
ODITN
Item Number
The number of the part for this order.
4
ODOPN
Operation Number
The number assigned to this manufacturing or assembly operation.
5
ODSEN
Sequence Number
A number indicating the position of this
operation into the routing for this order.
6
ODOPD
Operation Description
A short description of the operation to be
performed.
7
ODMRM
Must Run Machine No.
The number of a specific machine in the
work center on which this operation must
run; a blank if any machine.
8
ODSAC
Special Action Code
Code to designate (1) lap phaSing, (2)
multiple machines, or (3) alternate work
centers.
9
ODTIC
Tool Information
Code
10
ODTNU
Next Usage
A code to indicate the number of tools
required for this operation.
For operations that require one tool
it is the location of the next operation
on which this tool is required. If more
than one tool is required, it is the
address of where the multiple usage
data is stored.
146
11
ODTNO
Tool Number or Address
The number of the tool required for this
operation. This field is blank if multiple
tools are required. Tool numbers are
stored in the multiple usage area.
12
ODMOT
Move Time
The usual amount of time required to move
this lot to the next work center.
13
ODSES
Scheduled Start Date
The date furnished by the last run of the
operation scheduling subsystem.
14
ODASD
Actual Start Date
The date this operation was started.
15
ODACD
Actual Completion Date
The date this operation was completed.
Field
No.
Symbol
Field Name
Description
16
ODPWC
Previous Work Center
17
ODPON
Previous Operation
Operation Number
18
ODPQC
Quantity Completed
19
ODTQC
This Operation
Quantity Completed
20
QDTQS
Quantity Scrapped
The quantity scrapped for this operation.
21
ODTSF
Shrinkage Factor
Losses resulting from scrap, deterioration, pilferage, and other factors.
22
ODNWC
Next Work Center
The work center where the next operation
is to be performed.
23
ODNON
Next Operation Number
The number of the next operation to be
performed.
24
ODSTC
Status Code
Indic ates current status of this operation:
O-complete, I-run started, 2-setup
complete, 3-setup started, 4-waiting.
25
ODSHS
Standard Hours This Order
Quantity
Set Up
26
ODSHL
Labor
The established standard for the direct
labor hours to perform this operation.
27
ODSHM
Machine
The established standard for the number
of machine hours required to perform
this operation.
28
ODALH
Actual Labor Hours
The accumulation of direct labor hours
reported for this operation.
29
ODAMH
Actual Machine Hours
The accumulation of machine hours
reported for this operation.
30
ODSLC
Standard Labor Costs
The standard labor costs for this
operation.
31
ODALC
Actual Labor Costs
The accumulation of direct labor costs
reported for this operation.
32
ODD LA
Date Last Activity
The last date this record was changed.
The number of the work center for the
previous operation.
The number of the previous operation.
The quantity completed for the previous
operation.
The quantity completed for this operation.
The standard amount of time required to
set up this job.
147
SECTION K: TOOL MASTER
Tool
Number
Status Number
of
Tools
Description
\
I
Maintenance
15
I
6
5
Accumulated
Usage
Codes
Inspection
Usage
18
17
16
Quantity
Number
4
3
2
1
Where-Used
Original Tool Order
Cost Standard
Routing
8
7
Estimated
Tool
Life
19
Open
Job
Order
D
E
T
A
I
L
C
0
D
E
Serial
Number
Center
Date
Last
Inspection
20
Crib Current Operation
Assignment
Work
12
11
10
9
In P.IOcess
Repair Flag
Code
21
I
,
Location
Location
22
I
Order
Number
f
13
Address
to
Overflow
23
TOOL MASTER (T)
Field
No.
148
Symbol
Field Name
Description
1
TNUMB
Tool Number
A unique number to identify the tool.
2
TDESC
Description
A name or series of descriptive codes to
further describe the tool.
3
TSTAT
Status
A code denoting the current status, for
example, in use, ready to be assigned,
out for repair.
4
TNTOO
Number of Tools
The quantity or number of tools that exist
and -that are identified by the unique tool
number.
5
TOTON
Original Tool Order
Number
6
TOTOQ
Quantity
The number of tools that were produced
under the original tool order.
7
TOTOC
Cost
The cost of producing the tools on the
original order.
8
TWUSR
9
TWUOJ
Where-Used
Standard Routing
Open Job Order
The order number under which this tool
was originally produced.
The address of the first operation in the
standard routing file on which this tool is
used. A chaining technique is used, and
this is the first link of the chain. The
records in the standard routing file indicate
later uses.
The base of the where-used chain through
the open job order file. Each record in
that file points to the next us age to
identify the operations on which this tool
is to be used.
Field
No.
Symbol
Field Name
Description
10
TCONO
Code Number
A general classification code for tool
categories.
11
TSENO
Serial Number
For multiple tools; a suffix number to
identify each tool specifically. This is
necessary if usage information is to be
maintained.
12
TLOCR
Location
Crib
13
TCOWC
Current Operation Assignment
Work Center
The area identification where this tool is
normally located.
If the tool is assigned to an operation, this
field contains the work center number.
14
TCOON
15
TINSC
16
TMACO
Order Number
Codes
Inspection
Maintenance
The order number for which this tool is
currently being used.
A code denoting the inspection procedure
for this tool, for example, after each use.
If a maintenance function must be
performed, this code indicates the
procedure to be followed, for example,
when usage is equal to tool life , after
each use.
17
TUSCO
18
TACUS
Accumulated Usage
A total that reflects the usage of this
tool. If is the sum of hours or piece s ,
etc., indic ated by the usage code.
19
TETLF
Estimated Tool Life
A value that specifies when the tool is
normally ready for maintenance. It is
stated in the same terms as accumulated
usage.
20
TDLIN
Date Last Inspection
The shop date on which this tool was last
inspected.
21
TIPRC
In-Process Repair Flag
Code
22
TIPLC
23
TATOF
Usage
Location
Address to Overflow
A code used to identify the type of information in the accumulated usage field,
for example, hours of use, hours of
actual cutting time, number of pieces.
Code indicating that the tool is out for
repair or maintenance.
Code indicating where the repair or
maintenance is being performed.
The address of the next record for this
tool number. This is used when multiple
tools exist and usage and/or location
information is being recorded for each
unique tool.
149
BIBLIOGRAPHY: Additional References
The references below are in addition to those appearing in the footnotes within the manual.
INFORMA TION SYSTEMS
Product Definition in the Aerospace
Industry
(E20-0235)
Telephone Information System Study Guide
(E20-015S)
Telephone Information System Customer Service
(E20-0151)
Customer Information File for
Banks - Design Guide
Engineering Data Processing Automated Design
Engineering
Aerospace Information and
Control Systems - Planning
and Tooling
(E20-S119)
Plant Maintenance
Management System
(E20-0124)
SHOP FLOOR CONTROL
Machine Shop Downtime
Analysis and Control
(E20-0130)
MOS - Quality Assurance
for Manufacturipg
Industries
(E20-S0S1)
Industrial Testing - Data
Analysis and Control
(E20-0021)
(E20-0234)
ENGINEERING
Engineering Data Processing for
Manufacturing Industries
OPERATION SCHEDULING
(E20-S106)
(E20-S151)
PURCHASING
Engineering Design Data
Processing at IBM
(E20-S155)
Automated Manufacturing
Planning
(E20-0146)
Methods and Standards
Automation.
(E20-0144)
Information Storage and
Retrieval Program for
Engineering Parts and
Drawings
Introduction to Automatic Data
I~~~------------------Processing for Numerical
Control of Machine Tools
150
(E20~S054)
The following IBM publications provide general
related information:
System/360 Inventory Control
Application Description
(H20-0471)
System/360 Product Structure
Retrieval Program Application
Description
(H20-0329)
System/360 Bill of Material
Processor Application Description
(H20-0197)
Bill of Material Processor - A
Maintenance and Retrieval System
(E20-0114)
(E20-0132)
(E50-0022)
FORECASTING
Aerospace Information and
Control Systems - Forecasting
IBM Management Operating
System - Industrial
Purchasing
(E20-S125)
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