Analysis of the material flow management system of the production enterprise JSC Ares
production logistics material flow optimization
The logistics system at Ares OJSC is characterized, first of all, by the absence of a logistics department as such. The company has the position of Deputy Managing Director for Purchasing and Logistics, whose subordination includes the following departments: Logistics Department (LMTS), External Purchasing Department (ECD), Transport Shop (TC) and Warehouse System. The Logistics Department, as well as the positions of logisticians, does not exist as a separate structural unit.
However, logistics chains and the logistics environment, of course, exist at Ares OJSC, and some logistics functions are performed by the above divisions.
Let's look at the work of each of them.
The Logistics Department (LMTS) is an independent structural division of Ares OJSC. OMTS is directly subordinate to the Deputy Managing Director of the Company for Purchasing and Logistics.
The main goals and objectives of this department:
- 1) comprehensive, timely and uniform provision of the Company’s needs with material resources;
- 2) ensuring compliance with the optimal sizes of production inventories of materials, accelerating their turnover, reducing costs associated with the acquisition, delivery and storage of material assets;
- 3) control of storage, accounting and movement of materials;
- 4) control over the movement and sale of waste non-ferrous and ferrous metals.
The organizational structure of OMTS management is presented in Appendix 1.
Main functions of OMTS:
- 1) preparation and organization of the conclusion of Ares OJSC contracts with suppliers for the supply of raw materials and supplies in the volumes necessary to fulfill the production plan, as well as monitoring their implementation;
- 2) proper execution of shipping documents;
- 3) planning to provide production with material resources in accordance with the terms stipulated in contracts, regulating supplies in accordance with the progress of production;
- 4) carrying out work to optimize the structure of suppliers of raw materials and materials, establishing long-term direct relationships with supplier companies that meet the requirements for quality and delivery time;
- 5) submitting applications for vehicles for the removal of goods from suppliers. Rational use of transport when transporting goods. Correct execution of goods and transport documents and waybills;
- 6) control over the rational use of material resources in the Company, compliance with material consumption standards by all services;
- 7) participation in the inventory of material assets. Monitoring and reporting;
- 8) organizing quantitative and qualitative control of received material resources, ensuring their storage in warehouses, appropriate preparation and timely delivery for industrial consumption;
- 9) checking whether the cost of declared and consumed materials corresponds to the planned costs according to the production estimate;
- 10) identification of excess and illiquid materials, preparation of proposals for their implementation in the prescribed manner;
- 11) maintaining operational records of supply operations;
- 12) participation in work on the use of the most economical types of materials and substitutes for scarce and expensive materials.
The Department for Procurement of Components and Tools (OZKiI) is an independent structural division of Ares OJSC. Reports to the Deputy Managing Director for Purchasing and Logistics. The structure of the department is presented in Appendix 2.
- 1) comprehensive, timely and uniform provision of the enterprise’s needs for components and tools;
- 2) maintaining optimal sizes of production inventories of components and tools, accelerating their turnover, reducing costs associated with the acquisition, delivery and storage of components and tools;
- 3) control of the correct storage, accounting and movement of components and tools;
- 4) implementation of work according to the intended goals of OZKI in the field of quality, ecology, labor protection, and social responsibility.
The external procurement department (OQD) is an independent structural unit and is directly subordinate to the Deputy Managing Director for Purchasing and Logistics. The organizational structure of UWC is presented in Appendix 3.
Main goals and objectives of the department:
- 1) timely, uniform and complete provision of the joint-stock company with semi-finished products and components;
- 2) control over the rational use of semi-finished products and components.
The transport workshop (TC) is an independent structural unit. Main goals and objectives of the department:
- 1) provision of necessary high-quality transportation and special equipment to all divisions of Ares OJSC in accordance with standards, schedules and requests;
- 2) timely and high-quality shipment of finished products by all means of transport to ensure the fulfillment of the sales volume plan;
- 3) improving the use of vehicles, proper operation, timely provision, repair and maintenance of rolling stock.
The main functions of the transport department of Ares OJSC are as follows:
In the field of production and technical activities:
- 1) allocation of vehicles to all departments according to their requests, schedules for performing various transportations and services;
- 2) shipment of finished products by all types of transport, loading and unloading operations;
- 3) participation in the development and preparation of plans and schedules for transport services of departments and organizations as a whole;
- 4) participation in the development of organizational and technical measures to improve and more rationally use vehicles, introduce progressive types of transportation and reduce transport costs, as well as participation in the introduction of mechanization during loading and unloading operations;
- 5) organizing and conducting certification of managers, specialists, as well as conducting technical inspection of vehicles;
- 6) ensuring the safety of vehicles, structures and other material assets of the workshop;
- 7) repair of automobile and railway transport;
- 8) creating safe working conditions for workshop workers;
- 9) filing claims in connection with delays in delivery of goods by rail.
In the field of economy, planning, accounting and reporting:
- 10) systematic analysis, identification and mobilization of internal reserves to manage the use of production assets of the workshop;
- 11) maintaining operational and accounting records, maintaining time sheets;
- 12) preparation and provision of reports, certificates and reports on all issues related to the activities of the workshop.
In the field of selection, placement and use of personnel, labor organization and wages:
- 13) participation in staffing, selection, placement of personnel in accordance with specialty and qualifications;
- 14) providing workshop workers with special clothing, protective equipment and devices, creating the necessary production and living conditions in accordance with current standards;
- 15) organization of combination of professions and functions by workshop employees.
In the field of logistics:
- 16) coordination of the monthly supply of materials, tools, components, spare parts, repair and maintenance services for transport and other services required by the workshop, processing applications;
- 17) conducting an inventory and organizing accounting for all operations related to the arrival, movement and consumption of material assets in the workshop.
Production and dispatch department (PDO). The main task of the department is to formulate a production plan.
To ensure a continuous production process, Ares OJSC has created an infrastructure, the working condition of which is maintained by the plant’s engineering and technical service.
Each department head is responsible for the operation of the buildings and structures in which his workshop (site) is located. The heads of the departments in which it is used are responsible for the operation of the equipment. Maintenance and repair of equipment is carried out by the energy repair shop at the request of other shops, as well as in accordance with the equipment repair plan.
For the delivery of raw materials and supplies, and the shipment of products, road transport of the enterprise and third-party organizations is used. Products are also shipped by rail containers.
All transportation is carried out and planned by the transport section. The delivery of materials is carried out on the basis of requests from the logistics department, the shipment of products is carried out on the basis of requests from the sales department.
The amount of energy resources required to ensure production and operation of the enterprise, and the optimization of their consumption, is planned by the assistant technical director for energy saving and the material regulation department. Based on the production plan, the need for all types of energy resources is calculated and contracts are concluded with suppliers.
To ensure the quality of products, improve the quality of staff work and their satisfaction with their work, heads of structural divisions manage the production environment.
In accordance with the production plan and technical development plan at the enterprise, the chief economist develops a financial plan (annual and monthly), which is approved by the general director.
The General Director manages financial resources - their planning, ensuring availability and monitoring their use. Based on the results of the month, quarter and year, an analysis of quality costs, an analysis of financial indicators, such as an increase in cash flow, increased benefits, and a reduction in unproductive expenses are carried out.
The procedure for managing material flows in the production of Ares OJSC has the following features.
The plan for the production of marketable products is formed for the year, evenly divided into quarters. The need for the production of titanium products is determined by the production dispatch department (PDD), economic planning department with the participation of the marketing and sales department based on the sales forecast and the need to load production capacity (enterprise personnel). Priority in decision-making when forming a production program belongs to PDO. The formation of the production plan is completed in November/December of the previous period. The generated production plan is approved by the General Director and transferred to the logistics department to assess the annual need for materials and components.
Quarterly planning for the production of marketable products is carried out according to the scheme for the formation of the annual plan, taking into account the fact of fulfillment of the plan for the previous quarter. If the plan for the previous quarter is not met, the original quarterly plan is adjusted upward.
Detailed planning of the movement of parts and assembly units of our own production in the context of sender/recipient is carried out by specialists based on the quarterly production plan. Detailed planning is done taking into account the balances and reserves in the main production workshops. To reconcile balances, the movement of parts and assemblies of own production is verified during the month and incorrect balances are corrected.
The need to implement dispatch functions arises due to the discrepancy between the planned and actual output of finished products. In this regard, adjustments to the quarterly plan and operational management of production during the next month are required. When the quarterly production plan changes, PDO automatically calculates deviations and makes adjustments to previously generated plans and manually develops production schedules for assembly and delivery of products on a monthly basis for each working day. The developed schedules are communicated to the workshops, and the PDO monitors their implementation. Every day, shop managers report by telephone on the implementation of production schedules.
Based on an analysis of existing problems, we can formulate the following general goals for improving the material flow management system in production:
- - organize rhythmic, coordinated production and supply in conditions of multi-product, dynamically changing products with frequently changing plans for the release of finished products;
- - reduce production costs by reducing the volume of work in progress, reducing inventories of materials, inventories of finished products, and also create a mechanism for operational control of costs;
- - increase the turnover of funds and responsibility to the consumer by shortening the product manufacturing cycle and reducing the number of cases of missed product deliveries;
- - reduce losses from theft by improving the organization of storage of products in production and traceability of material liability at all stages of the material flow;
- - create a competitive production management system taking into account progressive world practices and in accordance with international standards and methodologies.
Thus, it is clear that many logistics functions are implemented at Ares OJSC, but there is no single information space, a single center for the concentration of logistics chains. Therefore, one of the directions for improving the structure of the logistics system of Ares OJSC is measures to introduce a logistics department at the enterprise.
A materials flow management system is understood as an organizational mechanism for the formation of planning and regulation of material flows within the framework of an intra-production logistics system.
A flow is a collection of objects, perceived as a single whole, existing as a process over a certain time interval and measured in absolute units over a certain period. Flow parameters are parameters that characterize the ongoing process. The main parameters characterizing the flow are: its initial and final points, the trajectory of movement, the length of the path (measure of the trajectory), speed and time of movement, intermediate points, intensity.
Based on the nature of the constituent objects, the following types of flows are distinguished: material, transport, energy, cash, information, human, military, etc., but for logistics, of the above, material, information and financial are of interest.
The concept of material flow is key in logistics. Material flows are formed as a result of transportation, warehousing and other material operations with raw materials, semi-finished products and finished products - from the primary source of raw materials to the final consumer. Material flows can flow between different enterprises or within one enterprise.
Material flow is a product (in the form of cargo, parts, inventory items), considered in the process of applying various logistics (transportation, warehousing, etc.) and (or) technological (machining, assembly, etc.) operations to it and attributed to a certain time interval. The material flow does not pass over a time interval, but at a given point in time, into a material stock.
The material flow is characterized by a certain set of parameters:
nomenclature, assortment and quantity of products;
overall characteristics (volume, area, linear dimensions);
weight characteristics (total weight, gross weight, net weight);
physical and chemical characteristics of the cargo;
characteristics of the container (packaging);
terms of purchase and sale agreements (transfer of ownership, supply);
terms of transportation and insurance;
financial (cost) characteristics;
conditions for performing other physical distribution operations related to the movement of products, etc.
The material flow on its way from the primary source of raw materials to the final consumer passes through a number of production links. Material flow management at this stage has its own specifics and is called production logistics.
The tasks of production logistics concern the management of material flows within enterprises that create material goods or provide material services such as storage, packaging, hanging, stacking, etc.
Logistics systems considered by production logistics are called intra-production logistics systems. These include: industrial enterprise; a wholesale enterprise with warehouse facilities; cargo hub; hub seaport, etc. Intra-industrial logistics systems can be considered at the macro and micro levels.
At the macro level, intra-production logistics systems act as elements of macro-logistics systems. They set the rhythm of operation of these systems and are sources of material flows. The ability to adapt macrologistics systems to environmental changes is largely determined by the ability of their intra-production logistics systems to quickly change the qualitative and quantitative composition of the output material flow, i.e., the range and quantity of products produced. High-quality flexibility of intra-production logistics systems can be achieved through the availability of universal service personnel and flexible production. Quantitative flexibility is also provided in various ways. For example, in some Japanese enterprises, the core staff makes up no more than 20% of the maximum number of employees. The remaining 80% are temporary workers. Moreover, up to 50% of the number of temporary workers are women and pensioners. Thus, with a staff of 200 people, the company can assign up to 1,000 people to fulfill an order at any time. The labor reserve is complemented by an adequate reserve of equipment.
At the micro level, intra-production logistics systems represent a number of subsystems that are in relationships and connections with each other, forming a certain integrity and unity. These subsystems: purchasing, warehouses, inventories, production services, transport, information, sales and personnel, ensure the entry of material flow into the system, passage within it and exit from the system. In accordance with the concept of logistics, the construction of intra-production logistics systems should ensure the possibility of constant coordination and mutual adjustment of plans and actions of supply, production and sales links within the enterprise.
When demand exceeds supply, we can confidently assume that a batch of products manufactured taking into account market conditions will be sold. Therefore, the goal of maximum equipment utilization takes priority. Moreover, the larger the batch produced, the lower the unit cost of the product will be. The task of implementation is not in the foreground.
The situation changes with the arrival of buyer “dictation” on the market. The task of selling the manufactured product in a competitive environment comes first. The volatility and unpredictability of market demand makes it impractical to create and maintain large inventories. At the same time, the manufacturer no longer has the right to miss a single order. Hence the need for flexible production facilities that can quickly respond with production to emerging demand.
Reducing costs in a competitive environment is achieved not by increasing the size of produced batches and other extensive measures, but by the logistics organization of both individual production and the entire commodity distribution system as a whole.
There are several materials management systems:
MRP – materials requirements planning;
DRP – resource allocation planning;
JIT – management of material and information flows according to the “just in time” principle;
KANBAN – information support for operational management of material flows based on the “just in time” principle;
OPT – optimized production technology.
Let us consider the mechanism of functioning of the “pull” material flow management system using an example.
Let's say a company receives an order for the production of 10 units. products. The control system transmits this order to the assembly shop. The assembly shop requests 10 parts to fulfill the order; shop No. 1, in order to replenish the stock, orders ten blanks from shop No. 2. In turn, workshop No. 2, having transferred 10 blanks, orders materials from the raw material warehouse for the manufacture of the same number of blanks, also in order to restore the stock. Thus, the material flow is “pulled out” by each subsequent link. Let's show an example in the diagram (Fig. 1).
Fig.1.
The advantages of the method are the creation of a self-regulating (within reasonable limits) system, which does not require support from the enterprise computer information system - the card system can work without it.
However, this method is excellent for conveyor production and for use in distribution with stable (predictable) demand. But under conditions of greater uncertainty and inaccuracy of forecasting (various sources call no more than +10% deviation from the estimated production rhythm acceptable), it begins to fail, since it is necessary to recalculate the sizes of batch cards, use additional labor, etc.
logistics management pulling
Conclusion
The organization of material flows and their management at the enterprise are inextricably linked and form a system. Thus, the movement of materials in the process of fulfilling received orders is impossible without management, which is carried out by distributing material resources, planning economic relations, etc., and at the same time requires a certain organization: ensuring the rhythmic execution of deliveries, choosing the optimal system for transporting materials, etc. P. In the process of organization, the unification of elementary flows is achieved and conditions are created for the effective functioning of the production logistics system. Material flow management provides constant monitoring of the progress of production orders and has the necessary impact on the logistics system in order to keep its parameters within specified limits in order to achieve the goals set for the enterprise.
There are several materials management systems, one of them is the Kanban system. The basic principle of this system is to identify and eliminate bottlenecks or critical resources in the production process. Critical resources that influence the efficiency of the logistics system may include stocks of raw materials, the size of work in progress, manufacturing technology, personnel, etc.
Materials management in production
Introduction 4
1 Theoretical foundations of material flow management in production and their diagnostics
1. 1 The essence and content of material flow management in production 7
1. 2 Materials management systems in
production 16
1. 3 Methodological basis for diagnosing material flow management in production 23
2. 1 Brief description of JSC Tyazhmekhpress 28
2. 2 Diagnostics of the state of the material flow management system 33
2. 3 Assessment of the economic efficiency of the material flow management system 43
3. 1 Selecting a materials management system in production 49
3. 2 Development of an integrated material flow management system at JSC Tyazhmekhpress 58
Calculation task. Planning requirements for materials, parts, assemblies (MRP) 68
Conclusion 71
List of used literature 74
Applications 76
Introduction
The economic situation in Russia and the emerging market relations require a serious revision of the principles and mechanisms of production management at industrial enterprises. Modern production and economic activity is characterized by high dynamism associated with constantly changing market needs, orientation of the production of goods and services to the individual needs of customers and clients, continuous improvement of technical capabilities and strong competition. The effective implementation of production processes in a developing market environment can be ensured by modern approaches to the management of material flows, which allow optimizing the process of goods distribution from material supply to the sale of finished products.
The theoretical complexity and practical significance of the problem of managing material flows has attracted the attention of a large number of researchers both in our country and abroad. The scientific works of B.A. are devoted to various aspects of this problem. Anikina, A.M. Gadzhinsky, M.P. Gordon, M.E. Zalmanova, A.A. Kolobova, D.D. Kostoglodova, O.V. Lavrova, L.B. Mirotina, I.N. Omelchenko, Yu.M. Nerusha, O.A. Novikova, B.K. Plotkina, V.N. Rodionova, A.I. Semenenko, V.N. Sergeeva, A.A. Smekhova, V.I. Stakhanova, O.G. Turovets, S.A. Uvarov, R. Bashuu, D. Bowersox, D. Kloss, J. Coyle, G. Pavellek and others. They widely discuss the organization of the material supply chain and reveal the features of managing the process of commodity circulation at its individual stages.
At the same time, the research carried out did not sufficiently reflect the theoretical and applied issues of managing material flows, assessing the state and efficiency of production management systems, and the formation of an integrated management system “purchase - production - sales”. There are no comprehensive studies covering the issues of creating, maintaining the functioning and improving the management of ma
material flows in conditions of production orientation towards the consumer.
In this regard, research related to identifying the features and directions of development of material flow management in production in modern conditions seems relevant and of national economic importance.
The purpose of the course work is to study the theoretical problems of managing material flows in production and developing methodological recommendations and practical proposals for diagnosing the management of material flows in production, as well as building a system for managing material flows in production.
The set goal determined the need to solve the following tasks:
Explore the essence and content of material flow management in production;
To form an idea of organizational diagnostics and offer methodological recommendations for conducting diagnostic studies of the state of material flow management in production;
Carry out a study of the state of material flow management at a machine-building enterprise;
Determine criteria for assessing the effectiveness of the material flow management system in production;
The subject of the research is methodological and organizational approaches to managing material flows in production and the formation of an effective material flow management system.
The object of the study is ZAO Tyazhmekhpress.
The theoretical and methodological basis of the study are the works of leading domestic and foreign scientists in the field of logistics and production management, as well as materials and recommendations of scientific and practical conferences and seminars on modern problems of managing material flows in manufacturing enterprises.
The analysis was carried out on the basis of the results of practical studies of the state of material flow management at an enterprise in the city of Voronezh - ZAO Tyazhmekhpress, using methodological developments by various authors.
1 Theoretical foundations of material flow management in production
1. 1 The essence and content of material flow management in production
The process of managing material flow at the stages of purchasing materials, production and sales of products by industrial enterprises is the object of study of the new scientific and educational discipline “production logistics”.
Production logistics includes managing the movement of materials, organizing the work of transport and warehouses, intra-production flows and much more. The fundamental feature of production logistics as a science is the interconnected consideration and integration of the listed areas of the enterprise’s activity into a single system, which makes it possible to implement the principles of end-to-end management of material flows.
The use of logistics principles in material flow management began relatively recently. At the end of the 60s, American scientists developed the concept of material flow, which involved separating the movement of materials into an independent control object and forming a special mechanism regulating the movement of materials within the corporation. The prerequisite for this approach was the difficulty of coordinating the supply, production and sales departments of large manufacturing organizations in conditions of constant market fluctuations. It was necessary to synchronize the stages of purchasing materials and production of products, ensure regulation of all types of inventories and rhythmic supply, and reduce costs associated with the storage and movement of materials.
Based on the analysis of data from numerous sources, foreign researchers of material flow problems identify the main types of activities aimed at achieving these goals. These include: location of production facilities and warehouses; purchase, organization of storage of raw materials; transportation, movement of materials during production; production control of materials use, inventory control; package; organizing the distribution process of finished products; personnel movement; consumer service. As we can see, the material flow management subsystem includes the entire set of traditional and fairly autonomous functions of supply, intra-factory movement and sales of products.
The current stage of development of material flows is characterized by an expansion of the scope of action beyond traditional functions.
Currently, there are no generally accepted methodological foundations for creating logistics systems for managing material flows in production. However, the most developing direction is the approach based on considering the enterprise as an integral production and marketing system. In addition to the existing functions of the material flow management system, such functions as product sales forecasting, production planning, control of material and information flows in the production process, logistics system design, etc. appear here.
In modern domestic and foreign economic literature, the concept of “material flow management” appeared relatively recently in connection with the need to explain the cause-and-effect relationships that arise from the interaction of material flows in the process of their movement in the stages of procurement, production and sales of products. R. Johnson, F. Kast and D. Rosenzweig were the first to formulate, albeit in general terms, the features of managing material flows in the integrated system “production - sales of goods”. However, a clear definition of this concept, both in theoretical terms and, even more so, in economic practice, does not yet exist.
A generalization of various points of view on the issue under consideration shows that they all express the idea that material flow management, firstly, is one of the functions of enterprise management and has as its object material flows at the stages of procurement, production and sales of products; secondly, it is connected with the processes occurring in the “production - distribution of finished products” system; thirdly, it involves the use of fundamentally new approaches to ensuring the efficiency of the enterprise; fourthly, it ensures the adaptation of the enterprise to the requirements by coordinating the actions of all departments involved in the execution of production orders and carrying out targeted changes in the “purchase - production - sales” system. All this allows us to consider material flow management as a specific area of management activity, different from its other areas.
It is known that material resources in an enterprise take the form of material objects of labor. Due to the division and cooperation of labor in the process of organizing production, the isolation of its various stages and the separation of various works and production units occurs. Therefore, objects of labor are constantly moving from one work center to another, between sites and workshops, where they undergo corresponding changes during the technological process.
The noted feature of the production process allows us to consider the enterprise as a system placed on the path of movement of materials from sources of resources to consumers to transform them into a form convenient for them.
The movement of objects of labor in accordance with the technological process of manufacturing products constitutes the system of material flows in the enterprise.
In its structure and content, the material flow is heterogeneous: it consists of many elementary flows. The essential characteristics of elementary flows are: direction of movement of resources; the ability to accumulate, that is, to form reserves; mononomenclature; the presence of a source of origin (supply) of resources and their consumption at specific points in time; uneven traffic in certain areas and gaps in flow density.
In order to organize material flows, it is necessary to classify them sufficiently fully. According to the author, the main features of the classification can be: the place of origin of material flows, the nature of the logistics operations performed and formation factors (Fig. 1. 1).
Despite the fundamental technical and technological commonality of the stages, the material flow according to the structure of the transported ore items, time, patterns of their warehouse processing and delivery to their destination is divided into external (non-production) and intra-production. The non-production stage of movement covers the transportation of products from manufacturers to consumers in transit or through a warehouse. The in-production stage begins with the acceptance of incoming materials, including their storage and movement between warehouses and workshops, and ends with the dispatch of finished products.
Depending on the nature of the operations performed, flows of purchased materials, production, transport, and flows of goods and services sold are distinguished. Flows of purchased materials are formed in the process of receiving, processing and fulfilling orders. The source of their occurrence is the supplier's warehouse, the place of consumption is the warehouse of raw materials and components of the consumer enterprise. Production flows arise and function during the production process and are determined by the occurrence of partial production processes. Flows of goods and services sold are formed at the stage of sales of finished products and are associated with the functions of selection and packaging of finished products, their storage and delivery to the consumer. Transport flows consist of materials in the process of moving between stages of commodity circulation.
Depending on the formation factors, the noted flows are divided into flows of raw materials, semi-finished products, components, blanks, assembly units and finished products.
The organization of material flows and their management at the enterprise are inextricably linked and form a system.
In the process of organization, the unification of elementary material flows is achieved and conditions are created for the effective functioning of the production system. Materials management provides constant monitoring of the progress of inventory and has the necessary impact on the production system in order to keep its parameters within specified limits in order to achieve the goals set for enterprises.
Figure 1. 1 - Classification of material flows
Thus, the formation of material flows and the establishment of spatial and temporal connections between participants in the distribution of goods is carried out through the organization of production.
Based on the stated provisions, material flow management can be separated into an independent subsystem of production organization.
The material flow management subsystem is associated with a number of elemental and functional subsystems of production organization, which include: organization of the movement of material flows, organization of transport and warehouse work, organization of material support for production, organization of product sales. Each of these subsystems has as its object a set of material flows and performs only its inherent tasks.
Contacting each other in a single management system, each of the subsystems has its own control object, in combination with which it acts as a single organizational system.
The object of material flow management in the production organization system is a complex of works on the purchase of materials, production of products and their sales.
Materials flow management in an industrial enterprise should be considered as a process of targeted influence on organizations and individuals involved in the promotion of raw materials, finished products and related information from the point of production to the point of consumption of products.
Materials management is cross-functional in nature and establishes consistency between individual types of work throughout the entire flow of materials, from the process of purchasing raw materials to the release of finished products. The material flow management subsystem solves the problems of ensuring mutual correspondence of material and information flows, controlling material flow, operational management of supplies and production of products, forming an organizational system that communicates and coordinates the work of all links of the material supply chain in the production process. Fulfillment of assigned tasks is achieved by managing the progress and timing of production orders from the moment of receipt of the corresponding application, managing inventories at all stages of product distribution, managing material support and sales of finished products. At the same time, management performs functions related to maintaining the sustainable functioning of the created system, namely, the functions of coordination, planning, control, regulation.
Thus, material flow management unites participants in the production process and ensures the integration of all subsystems into a single production system.
Management of material flows is achieved through targeted actions and in this capacity acts as a special process - the management process.
The characteristic features of management are expressed in its functions. “Function” is understood as a group of logistics operations aimed at realizing the goals of the logistics system, specified by the values of the indicators that are its output variables.
As the analysis showed, there has not yet been a clear understanding of the nature of logistics management functions in educational and scientific literature. The essence of material flow management is expressed in its functions, the composition of which is universal for all management systems, and the content is determined by the specifics of the process of passing an order in the material supply chain. Based on these positions, the course work formed the composition and disclosed the content of the following functions of managing material flows in production as follows:
1) planning of material flows involves identifying and justifying the goals and objectives of the system for the movement of objects of labor in the process of fulfilling an order, developing an action program to achieve set goals, including forecasting the parameters of material flow, carrying out volumetric scheduling of materials distribution and capacity utilization during the execution of an order consumers;
2) the organization of material flows consists of the formation of material flows and the establishment of spatial and temporal connections between the links of the material supply chain, as well as the creation of a system for managing material flows in production;
3) monitoring the state of material flows is designed to ensure continuous monitoring and verification of material flow parameters and characteristics of the goods distribution process, identification and analysis of deviations from planned targets for the fulfillment of production orders that make it difficult to achieve the goal;
4) regulation of material flows involves the analysis of violations of the timing and progress of production orders and the reasons that caused them, the development of a program for eliminating deviations in the specified parameters and measures to ensure its implementation.
Through the implementation of the listed functions of material flow management, the construction and operation of a system for organizing the execution of production orders is ensured.
The listed functions of material flow management are the most common and are typical for all production and distribution systems.
At the same time, the objects of management in logistics are not only the processes occurring in various links of the logistics chain, but also specific parameters of both the logistics system itself and material flows. In this regard, it is advisable, in the author’s opinion, to differentiate management functions according to their intended purpose.
Depending on the goal being realized, material flow management can be focused on managing the progress and timing of production orders, managing the logistics of production, managing inventories in production, and managing product distribution. Each of the noted management subsystems provides a solution to the tasks assigned to it, and together - a solution to the problems facing the enterprise.
The author's study of the literature on this issue made it possible to formulate principles for organizing the management of material flows in production that are adequate to the modern economic situation. Based on the degree of generality and breadth of the tasks being solved, three groups of principles have been identified: general methodological, specific and situational, reflecting the features of the logistics approach to managing material flows, presented in Table 1.1.
Table 1. 1 - Principles of organizing material flow management in production
1. 2 Materials management systems in production
A materials flow management system is understood as an organizational mechanism for the formation of planning and regulation of material flows within the framework of an intra-production logistics system.
Management of the movement of material flows in production can be carried out using the “funnel” model. The funnel serves to simplify the process of movement of material flows in individual links of the logistics chain. The real object of the model can be: a workshop, a site, a workplace, a warehouse system or a transport system.
A schematic diagram of the passage of material flows through the “funnel” is shown in Fig. 13 . The orders entering the funnel are shown in Fig. 1. 3 in the form of balls of various sizes. The volume of the ball corresponds to the complexity of the order. The system has maximum throughput (power), which is achieved subject to rational planning of material flows (distribution of orders over segments of the planning period and the formation of a sequence of work). The process of receipt and disposal of orders is depicted in the form of a broken line of “launch” or “release”; the average duration of the order cycle is established based on the volume of work in progress and the actual throughput of the system according to the formula:
where TC is the duration of the order fulfillment cycle;
Zn avg - average value of work in progress;
Nav is the average number of completed orders per unit of time.
Rice. 1. 3 - Funnel-shaped model of the logistics system
(IFA, Univerität Hannover)
Priority rules for order fulfillment
The sequence of orders passing through the links of the logistics chain is established using the rules for the distribution of work (order servicing), which prescribe certain priorities when performing work. In the practice of material flow management, the following priority rules are used:
FIFO: “first in, first out”, that is, the highest priority is given to the order that entered the system earlier than others;
LIFO: “last in, first out”, i.e. The highest priority is given to the last order received for service. This rule is most often applied in storage systems in cases where materials are stacked in such a way that they can only be reached from above;
SPT: “shortest operation rule”, the highest priority is assigned to the order with the shortest execution time in a given link.
These rules make it possible to reduce waiting time and the average duration of the order fulfillment cycle.
In cases where the goal of material flow management is to ensure established delivery times, management rules are used that take into account information about the lead time of orders. These rules are as follows:
MST: "Minimum Slack Time", the highest priority is assigned to the order that has the least slack time. Reserve time is defined as the difference between the order completion time and the time by which the order can be completed in the absence of interoperational delays;
EDD: “earliest due date”, i.e. The highest priority is given to the order with the earliest completion date.
Material flow management within intra-production logistics systems can be carried out in two fundamentally different ways: by “pushing” or “pulling” an order.
The push-out material flow management system is based on forecasting the size of stocks of raw materials, supplies, and parts for each link in the logistics chain. Based on this forecast, the entire multi-stage production process is managed by ensuring a justified amount of inventory at each stage of processing. With this material flow management system, objects of labor are moved from one site to another (the next one in the technological process) regardless of its readiness for processing and the need for these parts, that is, without the presence of a corresponding order. The material flow is, as it were, “pushed” to the recipient according to a command coming from the central production management system (Fig. 1. 4).
This method of managing material flows allows you to link a complex production mechanism into a single system and maximize the use of workers and equipment in production. However, in the event of a sharp change in demand, the use of a “push” system leads to the creation of excess inventory and “overstocking” due to the lack of the ability to “reschedule” production for each stage.
The pull system involves maintaining a minimum level of inventory at each stage of production and movement of the order from the next section to the previous one. The subsequent section orders material in accordance with the rate and time of consumption of its products. The work schedule is established only for the consumer site (shop). The manufacturing site does not have a specific schedule or plan and works in accordance with the received order. Thus, only those parts that are really needed are manufactured and only when the need arises (Fig. 1. 5).
Rice. 1. 4 - Push-out material flow management system
Rice. 1. 5 - Pull material management system
In order to achieve the development and implementation of logistics systems for managing material flows into business practice, special organizational support is needed - a management system that covers the entire range of technical, economic and organizational works carried out in the process of movement of material flows.
Currently, several materials management systems are used in world practice. The most common:
Production resource planning (MRP),
Product distribution management and planning (DPR),
Just-in-time (JIT) material flow management,
Optimized production technology (OPT).
Table 1. 2 - Materials management systems
Continuation of table 1. 2 |
|
In addition, in the 80s, new methods were developed and used to manage the flow of electronic information communications between the client and the supplier based on data transfer; custom networks that link all needs and methods of covering them into one chain; and others.
Appendix B contains a generalized description of the main premises of the systems considered.
The material flow management systems used in practice are united by one quality - they solve intra-production problems of commodity flow management and are micro-logistics systems. At the same time, each of them is aimed primarily at fulfilling one of the logistics goals and therefore is a local, narrowly focused system.
1. 3 Methodological basis for diagnosing material flow management in production
The methodology, methods and techniques for diagnosing material flow management systems have much in common with the theoretical and methodological foundations of organizational analysis and decision making. However, the specifics of the object largely determine the features in the relationship between the approaches used to analyze the state, problems, search and selection of solutions. This necessitates the formation of a system of special procedures and rules for diagnostic research in relation to the field of material flow management.
The purpose of diagnostics is to improve the efficiency of the control system. The possible dynamics of performance indicators is determined by the ability of the material flow management system to achieve its goals when the requirements for it from the external environment and internal environment change. The tool for achieving this goal is the transformation (improvement) of the system and (or) its development, aimed at expanding the possibility of adaptive behavior in the environment. Identifying problems (causes of deviations from the normal state of the system) and determining ways to resolve them in accordance with the requirements of the environment constitute the content of the diagnostic process.
In general, the diagnostic process is presented in Fig. 1.6.
As you can see, the main elements of this process are:
Express diagnostics and identification of signs of problems;
Formulation and diagnosis of problems;
Selecting options for solving the problem;
Implementation of solutions.
Each of the noted stages includes a number of interrelated works. Their composition and content are determined by the target orientation of diagnostic studies.
Figure 1. 6 - Diagnostic process of the materials management system
Features of the structural structure and behavior of the material flow management system make it possible to establish a set of distinctive features of this system. The main ones, in the author’s opinion, are: isolation, openness, stability of behavior, the nature of the structure (complexity, formalization, centralization), type of structure. Characteristics of distinctive features are presented in Appendix D.
During the diagnostic process, any state of the material flow management system and the processes occurring in it are subject to consideration, which have reserves for increasing efficiency through the use of achievements in the development of technology, technology or improving the system of relationships with consumers and suppliers of materials (external signs), as well as eliminating the shortcomings of the current management systems that cause underutilization of its potential.
The problem of managing material flows is a state of the system, the change of which, due to the non-standard situation, lack of necessary prerequisites or other reasons, is impossible by known methods.
To assess the state of material flows, a system of indicators is proposed that reflects the features of managing material flows at individual stages of product distribution, during their transportation and warehousing.
For each of the material flow management subsystems, the following groups of indicators are distinguished: target; structural; efficiency and quality.
A typical composition of indicators for assessing material flows is presented in Appendix D.
The result of this diagnostic stage is a list of functions and management processes for which deviations between the actual and expected output of decisions are observed, as well as possible states of the environment for which the system does not have a ready-made action program to respond.
The next diagnostic step is to formulate and determine the diagnosis of the problem.
The first phase in diagnosing a complex problem is awareness of the symptoms of the causes of the problem situation, while the symptom is both a sign of an opportunity and a threat to the functioning of the control system.
To ensure the long-term focus and effectiveness of decisions made, as well as the cost-effectiveness of the functioning of the material flow management system, it, as an object of analysis when identifying symptoms of problems, is considered in the following two aspects:
Structural - analysis of symptoms and causes is carried out according to the components of the material flow management system;
Process - analysis of symptoms is carried out according to the stages of the management cycle: organization, planning, control and regulation, coordination of actions;
As a means of obtaining information to identify problems and analyze symptoms, it is advisable to use the loss map method presented in Appendix E. In accordance with the accepted classification of symptoms, 5 areas of activity are identified, each of which examines 8 symptoms of problems in the context of management functions.
In the process of diagnosis, a selection of causes is carried out, and those that are quite significant are identified, and those that play a non-existent role. Symptoms are ranked on a quantitative scale ranging from 0 to 5. The maximum score is assigned to the symptom that has the greatest impact on the effectiveness of the materials management system.
Based on the assessment, the most significant causes are identified and a diagnosis is made. The diagnosis of the problem contains instructions about the main directions of the desired changes and the scope of their actions.
Diagnosis is possible in one of three ways: with the involvement of expert specialists, automatic diagnostics using a computer, and based on the use of logical models.
The final stage of diagnosis is the formation of options and selection of a solution to the problem. Systematization of data characterizing the actual state of the material flow management system and the symptoms of the causes of the problem situation allows you to plan options for solving the problem.
2 Study of the state of material flow management in production using the example of JSC Tyazhmekhpress
2. 1 Brief description of JSC Tyazhmekhpress
Name of the company: full - Closed joint-stock company for the production of heavy mechanical presses; abbreviated as CJSC Tyazhmekhpress (hereinafter referred to as the “Company”). The board of the company is located at: 394642, Voronezh, st. Solnechnaya, 31.
The founders are the State Joint Stock Association "Stankoinstrument" and the Rental Enterprise - the Voronezh Production Association for the production of heavy mechanical presses. The Company includes the following enterprises:
Voronezh plant of heavy mechanical presses;
Rossoshansky press unit plant;
Uglyansky press unit plant;
Self-supporting foreign trade company "Tyazhmekhpress".
The enterprises included in the Company do not have the rights of a legal entity. The duration of the Company's activities is unlimited.
The principles of the Company’s activities are:
1. provide additional assistance to customers through warranty service;
2. guarantee a reduction in the cost of manufactured products;
3. ensure that the work environment and conditions are conducive to effective work;
4. continuous training, both in the field of quality and in the field of professional training;
5. work as a team to create a climate in which personnel are given the opportunity to reach their potential and participate in the business process;
6. base business relationships on mutual assistance, support and trust in accordance with all legal norms;
7. plan and take all business steps, professionally assessing the degree of risk;
8. ensure the “survival” of the enterprise in a market economy, create work opportunities for local society;
9. promote the development of the social sphere;
10. ensure compliance with established environmental impact standards.
11. improve the quality management system as a means of summarizing the requirements of our customers and meeting them, using the principle of continuous process improvement.
The main range of manufactured products is as follows: mechanical presses; automatic complexes and lines; equipment for the production of building elements; forging rollers and shears; equipment for special orders.
Voronezh Closed Joint Stock Company for the Production of Heavy Mechanical Presses develops, manufactures, and supplies a wide range of heavy mechanical presses with a force of up to 125,000 kN, automatic pressing lines, automated complexes for hot forging and sheet metal stamping industries.
The Voronezh Heavy Mechanical Press Plant produced its first product, a single-crank, single-action press with a force of 3150 kN in 1953.
With the growth of the volumes and range of the production program, the sales market for the plant's products expanded. Many forging and sheet stamping shops of large automobile, tractor and agricultural machinery manufacturing enterprises in the cities of Moscow, Minsk, Nizhny Novgorod, Kharkov, Volgograd, Togliatti, Rostov-on-Don, Rubtsovsk, Tashkent, etc. are equipped with equipment bearing the TMP brand.
In the 60s, the designers of the association, for the first time in domestic practice, created complex families of unified machines - a range of hot and sheet stamping and trimming presses. Since that time, the association's products have been constantly exhibited. At the main exhibition of the country - VDNKh USSR. Many models of press equipment produced are awarded with highest diplomas.
In 1971, for the early implementation of the State Plan for the supply of presses, the staff of the Voronezh Heavy Mechanical Press Plant was awarded the highest government award of the Soviet Union - the Order of Lenin.
By 1980, over 10 thousand units of pressed products with the TMP brand were successfully operating at 3,000 enterprises in the USSR and in 42 countries:
Great Britain, East Germany, Italy, Canada, France, Germany, Czechoslovakia, Japan and others. Export of pressed products to foreign companies is carried out through STANKOIMPORT. Installation, commissioning and technical assistance for maintenance during operation are carried out by specialists from the association in organizations and companies that consume pressed products.
Voronezh presses have been repeatedly exhibited at international exhibitions and fairs. In the STANKOIMPORT showroom there is a permanent exhibition of models produced by the press association.
The technical level of design developments, manufacturing quality and operational reliability determined the competitiveness of TMP-branded pressing equipment on the world market.
In 1980, the Voronezh Order of Lenin Heavy Mechanical Press Plant was awarded the International Golden Mercury Prize for production development and international cooperation.
In 1984, a group of plant workers was awarded the USSR State Prize for the creation of highly efficient and unique heavy mechanical presses and automatic lines and complexes based on them.
In 1991, the enterprise was transformed into a closed joint-stock company for the production of heavy mechanical presses - ZAO Tyazhmekhpress.
In 1996, the joint-stock company received a certificate for a quality system in accordance with international standards ISO 9001. The certificate was issued by the Rhine-Westphalian branch of an independent international organization.
2003 - ZAO Tyazhmekhpress joins the Metalloinvest holding.
CJSC Tyazhmekhpress operates in the following areas:
production of forging and pressing equipment;
installation supervision, commissioning supervision and maintenance of supplied equipment;
scientific and technical cooperation;
conclusion of cooperation agreements;
modernization of used equipment; sale, repair, modernization of used machines (rotary, turning, milling, drilling);
production of equipment for the construction industry;
production of cast blanks (iron, bronze casting), welded structures, metal-cutting tools;
production of model equipment from wood and metal;
design and manufacture of PV pressure vessels<10 000, имеющих европейский сертификат соответствия СЭ.
Currently, our presses are successfully operating at more than 3,000 enterprises in Russia and neighboring countries, as well as in 45 countries around the world, such as: Spain, USA, Mexico, China, South Korea, Italy, France, Japan
In September 2003, JSC Tyazhmekhpress solemnly celebrated its fiftieth anniversary.
The composition of the enterprise includes production: procurement; machining; assembly; auxiliary; serving.
The following works are performed in production:
Assembly and installation of mechanical components; assembly of electrical, hydraulic and pneumatic equipment; assembly of fixed connections with thermal influence (heating - cooling); cooling of parts for pressing in a liquid nitrogen environment with dimensions of no more than 490 mm - diameter, 500 mm - length, pressing of parts; production of products with surfaces of complex shape.
JSC "Tyazhmekhpress" accepts orders for the design and production on jig boring machines of parts with complex geometric shapes of high quality for all industries. Mathematical modeling of three-dimensional surfaces. Development of control programs for CNC machines. Production of dies, molds within the dimensions of box-shaped parts weighing up to 120 tons, metal models, copiers, cams and any other parts of complex shape.
The maximum size of processed parts is 1000x1000x1000 mm.
Operation and installation supervision services provide the following services:
Warranty and post-warranty service for all products ever produced at the plant;
Supply and installation of control systems, parts, units for repair and modernization of forging and pressing equipment;
Diagnostics and systematic monitoring of the condition of pressing equipment; repair of equipment in any country in the world or on the basis of the enterprise.
2. 2 Diagnostics of the state of the material flow management system
Diagnostics of the condition and assessment of the effectiveness of the control system
material flows using the methodology discussed in the work was carried out at the machine-building enterprise JSC Tyazhmekhpress.
This company specializes in the production of forging equipment and produces spare parts for it. CJSC Tyazhmekhpress works on imported raw materials and depends on suppliers. The share of raw materials and purchased components in the cost of production is more than 45%. In addition to the main types of raw materials - rolled metal and pipes, we also supply pumps, hydraulics and more. All these products come from different regions. The volume of external material flows is 19,400 tons per year.
To solve the problems of material support for production, operational management of orders and sales of products, the following departments are allocated in the organizational structure of the enterprise: logistics department (LMTS), production dispatch department (PDD), sales department, etc. shipment of products; transport workshop, warehouses. The interrelation of functions and activities carried out by various departments form the structure of material flow management (Fig. 2.1).
As can be seen from the diagram (Fig. 2.1), this structure is linear-functional and is based on those tasks that are solved within the framework of the production and sales system. It is distinguished by the “mine” principle of construction and the specialization of management processes by functional subsystems (production, logistics, sales and others).
Figure 2. 1 - Scheme of material flow management at JSC "Tyazhmekhpress"
This structure can be described as simple. The division of labor in the area under consideration is actually carried out according to the stages of the product distribution cycle (purchase - production - sales) with a wide scale of material flow management. The divisions involved in providing production with materials, warehousing, transportation and sales are grouped and subordinate to the commercial director. The commercial director bears full responsibility for managing and regulating the flow of incoming raw materials, semi-finished products and finished products sent to consumers. The intensity of relationships between individual departments is very low.
The study showed that there are virtually no connections between the transport department, OMTS and sales management; PDO and OMTS. In addition to the production director and commercial director, interfunctional communication is carried out by the planning and economic department. The PEO concentrates all information on the production and sale of finished products, in accordance with which the PDO generates production plans and schedules, and the OMTS - requests for materials.
So, the management of material flows at JSC Tyazhmekhpress is localized in two functionally separate divisions. The first is headed by a commercial director, whose competence includes the formation of external flows, management of inventories of material resources and finished products, transport and warehousing, and part of the internal flows to ensure production. The second division is headed by the production director, under whose command, in addition to production management, the functions of operational regulation of intra-production material flows are concentrated. During the analysis, it was found that the emphasis in the distribution of material flow management functions across functional subsystems and stages of the production order fulfillment cycle is placed in such a way that the vast majority of them relate to the production sector (Table 2. 1.).
Table 2. 1 - Distribution of material flow management functions between divisions of JSC Tyazhmekhpress
The analysis allows us to conclude that the main part of the symptoms of material flow management problems arises at the stages of order production and delivery of materials as a result of deficiencies in the organization and planning of order fulfillment processes (Fig. 2. 2).
The above allows us to speak about the absence or insignificant integration of tasks for managing material flows, which indicates the initial stage of development of this activity. A similar situation is typical for many domestic enterprises.
Figure 2. 2 - Diagram of the significance of material flow management problems by stages of the order fulfillment cycle
In order to plan measures to improve and develop the material flow management system, it is necessary to identify the key factors of the problems of the functioning system.
Based on the results of a representative assessment of the key factors of the problems, we will establish the main shortcomings of material flow management and the possible causes of their occurrence.
Let's evaluate five areas of material flow management: organization of management, management of the progress and timing of work, management of material support for production, inventory management, management of finished product delivery. We will group the analyzed features in each case in accordance with management functions: organization, planning, control and regulation, coordination. We will evaluate each feature on a five-point scale. We summarize the results obtained in Table 2.2 and show them in Figure 2. 3.
Table 2.2 - Matrix of ranks of key problem factors in the context of materials management functions
Figure 2. 3 - Diagram of the significance of management problems in the context of the main areas of activity for managing material flows
As can be seen from Figure 2.3, the most significant factors are management of the progress and timing of work 31.4% and management of material support for production 26.2%. The management factor for the delivery of finished products has the lowest rank of 11.4.
The conducted research showed that the enterprise has great difficulties in the field of material support for production and sales of products. The main reasons for this situation are the decrease in demand due to the fall in the purchasing power of consumers, the suspension of production and, as a consequence, the low solvency of the enterprise itself. Due to a shortage of funds, 68% of material resources are purchased by offset in exchange for forging presses and spare parts. At the same time, product sales volumes are significantly reduced. Thus, compared to 1998, shipments of forging presses in 2002 decreased by 4.1 times or 50.5%. The percentage of decrease in each year compared to the previous one was 1999 - 17%, 2000 - 42%, 2001 - 21%, 2002 - 27.7%, This led to an increase (compared to 1999 .) finished goods inventories. They amount to 41,548 million rubles at wholesale prices. or about 42% of the company's turnover. The above statistics explain the decrease in attention to the processes of inventory management and product delivery in the integrated “purchase - production - sales” system and indicate the presence of unfavorable opportunities in the external environment. The latter necessitates the development of measures to increase the adaptability of the enterprise to the environment.
An assessment of the significance of problem factors in the context of material flow management functions was carried out in key areas (Table 2.3). The analysis showed that the decisive functions in the sphere of production management are: planning 37.1%, coordination of actions 32.1%; in the field of production material management - organization 25.6% and coordination of actions 30.7% (Fig. 2.4).
Table 2.3 - Results of processing expert assessments of key problem factors in the context of material flow management functions
Organization |
Figure 2. 4 - Diagram of the significance of material flow management problems in the context of management functions
The key factors of problems in managing material flows are reflected in Table 2. 4.
Table 2. 4 - Key factors in materials management problems
As a result of the analysis, the author identified the main causes of problems in the management of material flows in production: irrational forms and methods of implementing material flows (21%), non-synchronization of individual stages and phases of the production process (19.2%), inconsistency of sales plans, production and production preparation (17.3%), disruption of the rhythm of production due to the lack of a regulatory framework for planning the progress and timing of work (14.7%), low level of mechanization of accounting and management processes (10.8%). Problems of managing material support for production are most explained by insufficient coordination of the activities of production departments and planning and logistics services (15.2%), lack of funds necessary to pay for orders (14.5%), irrational distribution of resources over time (13 .3%), violation by suppliers of deadlines, quality and completeness of supplied resources (12.6%), lack of information about the materials market and prices for raw materials (12.0%).
The consequence of the noted shortcomings is the low technical, organizational and economic performance indicators of the enterprise. Thus, according to a study, the costs associated with managing material flows in the sales sector amount to about 820 million rubles, in the production sector - 15,820 million rubles, or 10% of the total cost of production, of which warehousing costs amount to 13,200 million rubles and transportation costs 2620 million rubles. The duration of the order fulfillment cycle ranges from 96 to 104 days. In this case, the manufacturing cycle itself is 41 - 44 days with a continuity coefficient of 0.3; delays associated with the purchase of materials 32 - 34 days; formation of orders and delivery of finished products 28 - 31 days.
2. 3 Assessing the effectiveness of the materials management system
The final stage of diagnosing the state of material flow management is assessing the effectiveness of the system. An assessment of the effectiveness of the system may look like this (Fig. 2. 5).
Rice. 2.5. Algorithm for assessing the effectiveness of a materials management system
The selection of criteria for the effectiveness of a material flow management system includes work to determine the main areas of assessment and criteria for the effectiveness of material flow management. The criteria act as a necessary prerequisite for making decisions about the level of efficiency of the system. Each of them is characterized using a number of indicators. The selection of indicators is carried out based on the requirements: the meters used must record the actual level of efficiency and at the same time be subordinate to the task of analyzing and managing economic processes based on identifying various causes and effect relationships.
The final procedure for forming a system of criteria is their ranking according to the degree of influence on the efficiency of production organization. Ranking is carried out on a quantitative scale ranging from 0 to 10. The maximum score is assigned to the most preferred characteristic. If we denote the assessment of attribute i by expert j by aij, then the relative weight of the testimony is calculated using the formula:
The indicator with the greatest weight receives rank 1. For each of the most important criteria, a utility scale is developed with an interval of 0 -1.0. The main purpose of the scale is to convert heterogeneous measurements into equivalent scores. An example of constructing such a scale is shown in Figure 2 6. In this case, 0 means the lowest level of performance for this criterion; 0.1 - very bad level; 0.2 - poor level; 0.3 - satisfactory; 0.5 - good level; 0.7 is a very good level and 1 is the highest efficiency.
Figure 2. 6 - Utility scale
The reserve for changes in efficiency Kpi characterizes the amount of unused opportunities and efficiency improvements for a specific
criterion: Kpi = (1 - Bfi / Bopti),
where Bfi is a score equivalent to the actual value of the indicator on the utility scale;
Bopti is the optimal score of the indicator.
The closer Bfi is to Bopti, the higher the level of efficiency for a given characteristic.
Since the criteria have different weights for performance,
then there is a need for a relative assessment of their significance. The most rational approach to relative assessment is the synthesis of efficiency reserve indicators and criterion weight: Qki = kpi * Vi,
where Qki is a relative assessment of the significance of the i-ro criterion. The criterion that has the maximum Qki score determines the performance bottleneck. Therefore, the order of implementation of measures to reorganize the system is established in accordance with the value of Qki.
As performance criteria, consider the following
signs:
efficiency;
effectiveness; assessment of economic results
flexibility;
synchronicity; organizational performance assessment
efficiency
Economical. Characterizes the degree of use of management system resources and makes it possible to evaluate its effectiveness in relation to costs. It can be expressed as the ratio of actual costs for managing material flows to their standard value or the share of these costs in the cost of production.
Effectiveness. This attribute characterizes the degree to which the material flow management system achieves its goals. The effectiveness of the management system can be measured by assessing the degree to which its main goals are achieved: compliance with delivery surveys, fulfillment of accepted obligations regarding the volume and quality of products. In this case, the indicators of the effectiveness of the material flow management system are: the ratio of the number of completed applications to their total number, the share of deliveries by the specified date in the total number of deliveries; the share of product batches that meet accepted requirements and specifications in the total volume of manufactured and supplied products.
Flexibility characterizes the ability of a control system to use various solutions to compensate for possible deviations from the established parameters of the production system that arise in connection with the application of consumer requirements (for example, clarification of an order) without additional time and money. The percentage of completed requests for changes in orders to their total number within the established delivery time can serve as an indicator of flexibility.
Synchronicity reflects the degree of consistency of processes at all stages and stages of the movement of material flows. To assess synchronicity, we use the order execution duration indicator.
Efficiency in decision making characterizes the ability of divisions of the material flow management system to quickly detect deviations in the process of organizing the execution of received orders and eliminate them in a timely manner. The main measure of efficiency is the proportion of violations eliminated in a short time in their total number.
The ranking results of the noted criteria are shown in Table 2.5. The analysis showed that in terms of the degree of influence on the efficiency of the material flow management system for the conditions of JSC Tyazhmekhpress, the following criteria are of greatest importance: efficiency 0.320 efficiency 0.273 flexibility 0.169.
Table 2.5 - Relative assessment of the importance of criteria for the effectiveness of the materials management system
Calculating the actual values of indicators and converting them into points using utility scales makes it possible to identify characteristics that have the maximum reserve of efficiency and obtain a comprehensive assessment of the significance of the criterion (Table 2.6).
Table 2.6 - Calculated data for assessing the effectiveness of the materials management system
Continuation of table 2. 6 |
||||||
As can be seen from Table 2. 6, the priority measures for the operating conditions of this enterprise are reducing the share of incomplete deliveries and late deliveries 0.192, expanding the ability to fulfill consumer requests for changes without violating delivery deadlines 0.102, redistributing costs for managing material flows while simultaneously reducing them 0.082 .
Thus, the analysis allows us to identify three fundamentally important points:
1) in terms of the degree of development of activities in the field of material flow management, JSC Tyazhmekhpress is at the first stage of development. The company's attention and efforts are focused on reducing costs associated with transportation and storage of products;
2) increasing the efficiency of the material flow management system is associated with the search for opportunities to solve problems through the use of the internal reserves of the enterprise. The main difficulties are explained by shortcomings in the organization and coordination of activities and are associated with managing the progress of orders and material support for production.
The key factors of problems in managing material flows are: irrational forms and methods of implementing flows
lack of a regulatory framework for planning the progress and timing of work, insufficient coordination of the activities of production departments and services
planning and material support of production.
3) there are significant reserves for increasing the efficiency of the system by reducing the proportion of errors in deliveries and reducing the costs of managing material flows, increasing flexibility.
3. 1 Selecting a materials management system
Let us present five types of production depending on the number of types of final products and the volume of output in physical terms.
The first type is enterprises that produce complex custom-made products. This is a type of single custom production, the distinctive features of which are: a potentially large variety of products and piece production, as well as universal equipment (CNC machines, machining centers, robots and flexible automated production) and highly qualified personnel (setters and general machine operators).
Second, third and fourth types: different options for mass production - small-scale, serial and large-scale. The higher the serial production, the lower the versatility of the equipment and the narrower the specialization of workers. The number of types of finished products is lower, the output is higher.
The fifth type is mass production. Specialized equipment, conveyors, production lines, technological complexes. Minimum number of types of products, maximum output volumes.
Industrial enterprises that do not have their own production (there are such enterprises in Russia) fall, accordingly, into the sixth category, so we will not consider them.
Discrete production can be of all five types, continuous - mainly of the fifth type. Of course, this classification is conditional - for example, in a single-type enterprise, spare parts can be mass-produced.
Each type of production has its own management methods.
For enterprises of the first type, these are various kinds of network models: PERT and “critical path” methods, as well as MRP II (Material Requirement Planning) management standards, which actually include these network calculation methods.
For enterprises of the second, third and fourth types, these are MRP II methods. This is the basis and main scope of these standards. The so-called “machine-complete systems” are also popular in Russia.
For discrete enterprises of the fifth type, these are Just-In-Time methods - “Just in time” (JIT, Kanban), as well as various options for complete systems well known in Russia (Novocherkassk, daily-complete, R-G-system, and so on) . MRP II methods can also work, but for fairly simple production of this type, using MRP II is ineffective. Moreover, if the rate of product sales (and, accordingly, the rate of production) is unstable, which is quite typical for Russian industry, then packaged methods and JIT stop working, and MRP II seems to be the only alternative.
There are no generally accepted management methods for continuous production, but, as experience shows, in terms of planning and accounting, MRP II methods are quite suitable.
MRP II is an ideology, technology and organization of management of industrial enterprises generally accepted in the West. In fact, over the past 30 years, MRP II standards have spawned an entire international management civilization. MRP II is not clever algorithms, it is the best experience in managing enterprises in a competitive market environment, experience that is meaningful, systematized and implemented in the form of computer systems. MRP II methods work in Europe, America, China, Japan, India, Zimbabwe and other countries, in any ethnocultural, but market environment. They are already used at many Russian enterprises.
It is necessary to distinguish between Just-In-Time (JIT) as a management method and as a unique management philosophy.
JIT as a control method is quite simple: not even a computer system, but a system of cards with one or two control signals. Any automated control system department with qualified personnel can implement such a system. But for it to work, the highest level of organization and precise synchronization of all production processes, including transactions with suppliers and subcontractors, is required. However, no working system of this type is known in Russia.
JIT as a management philosophy is focused on organizing defect-free production at a minimum cost. JIT methods (called Kanban) were first introduced in Japan by Toyota.
ERP, like MRP II, is a source of debate. ERP is not yet a standard, but some authors believe that unlike MRP II, which deals only with production resources - labor and materials, ERP manages all enterprise resources, including human and financial, or that ERP provides greater functional coverage, or that ERP is purely technical and technological development of MRP II. But none of this is true.
ERP is an enterprise add-on to MRP II. ERP emphasizes the management of a corporate structure, that is, a company that has manufacturing and distribution facilities around the world, uses an international network of suppliers of components and services, sells products internationally, and uses various criteria, including national characteristics, to evaluation of their activities. For example, a company's sales department in the US may be responsible for marketing, selling and servicing products that are manufactured in the UK using components made in Germany and Singapore. ERP allows a US-headquartered corporation to manage plants in Germany, France and the UK and evaluate the performance of these plants, taking into account the tax laws of their countries. An ERP can also manage suppliers and dealers and allow consumers to enter orders directly into the system.
In essence, the opposition between ERP and MRP II is scholastic in nature, since, firstly, MRP II is the basis of ERP; secondly, almost all Western systems (and all those present in Russia) implement both MRP II and ERP methods.
Some systems present on the Russian market are declared by their developers to be “MRP II systems”, “essentially MRP II systems”, “systems that support MRP II standards” and so on. Therefore, the question often arises: how to distinguish an MRP system from a non-MRP system?
The MRP II standards are based on production management, primarily of the serial type. If a complex system does not have a clear production management ideology, then this system, by definition, cannot be an MRP II system. Such systems should be called semi-complex or under-complex.
In an MRP II class system, three basic blocks should be clearly distinguished:
1) formation of a basic plan based on customer orders and demand forecast. This organizational and algorithmic process includes a procedure for quickly checking the feasibility of a resource plan or the so-called “Rough Cut Capacity Planning”;
2) planning of needs, that is, the formation of a schedule for the production of batches of products of own production and a schedule for the purchase of materials and components. At the same time, well-defined algorithms work for calculating order sizes and order launch dates based on network models. At this stage, calculation of resource load or balancing of the schedule by resources is also performed - the procedure “capacity planning”;
3) operational management. Procedures for checking the completeness and launching of orders, managing the progress of production through the mechanisms of production cycles, priorities, order sizes; accounting for the execution of operations and orders; inventory control.
MRP II class systems must plan the activities of sales, supply and production services as an end-to-end schedule of interrelated orders. They must include budgeting tools and a developed management accounting system, contain an accounting system or have an interface with such a system that works in both Russian and Western (GAAP, IAS) accounting and reporting standards. In addition, they should include a means to simulate the entire production flow under a given basic plan to be able to anticipate future problems and bottlenecks. Finally, MRP II class systems must support Just-In-Time methods. If the CIS meets these basic characteristics, then it is an effective MRP II class system.
When choosing a control system, you need to pay attention to the following aspects:
1) the world market offers over 500 MRP II - ERP class systems;
2) the market is growing rapidly - by 35% - 40% every year;
3) currently in Russia there are about a dozen Western systems and three or four domestic systems of the CIS class;
4) the niche of domestic systems is enterprises of types 5 and 6 in the classification under consideration;
5) Western systems are offered for all types of enterprises. At the same time, at present, about 200 installations of Western systems have been made in Russia, but only a few of them are working, including being implemented in a comprehensive manner.
Therefore, the main thing is to proceed from the fact that, firstly, the system is purchased in order to implement it, and not for some other reasons; secondly, it is planned to implement the system completely, including production management. This is a difficult task, but the greatest effect comes from comprehensive implementation.
When choosing a control system, you should also consider:
1) The reputation of the company, the reputation of the system, the length of time the company has been in the market, the number of sales.
It should not be forgotten that the solidity of a company is a very unstable characteristic. Many outsiders and newcomers offer interesting solutions based on new technologies, and, trying to break into the market, offer quite reasonable prices. Legacy systems are often associated with architectural solutions from ten to fifteen years ago. A large number of sales may be due to marketing.
2) The number of operating systems in Russia.
This refers to complex implementations: are there implementations at related enterprises, is the help of external consultants required? If you can carry out all the procedures yourself, then the system is simple and understandable.
3) Terminology and quality of Russification of the Western system. The documentation and help system should be complete, clear and understandable. The design specification should be a design specification, not a recipe or a list of materials (but for the chemical industry it should be a recipe).
4) The quality of localization of the Western system.
In Russia there are areas of production where there are standards - legal and factual - and strong traditions. For example, accounting methods, accounting and tax reporting. In design and technological preparation of production, ESKD and ESTD standards are universally accepted. Western enterprises have adopted a substantively closed organization of production, in contrast to Russian enterprises, where technological specialization is more common. And so on. All these points must be worked out during localization. In addition, the system must work out such Russian realities as barter, offset chains, prepayment, non-cash payments, uninvoiced deliveries, and so on.
5) Which Russian team is behind the Western system: who is Russifying and implementing (what kind of people are they, are they familiar with production, education, experience in this field, and so on). Many companies profess a radical approach - first reorganizing the enterprise, replacing people, business processes, and only then introducing the system. Perhaps this approach seems optimal, but it does not work at Russian enterprises.
6) Reasonable price.
When purchasing a system, it should be taken into account that for the entire cycle - purchase, implementation, maintenance, development - you have to spend 3-10 times more money than the cost of software. The more complex and expensive the system, the higher the coefficient. If you have to attract Western consultants, it could cost at least $1,000 a day, and it is unknown whether they will teach the system or for this money they will get acquainted with the peculiarities of the Russian economy.
7) Functional completeness.
The system must cover all basic management needs. Almost all Western systems are redundant in this regard, but at the level of basic capabilities, they are all identical.
8) Modularity.
In order not to spend extra money, you need to be able to buy and implement the system in parts and only for the required number of users. You should not buy unnecessary functions, that is, purchasing the entire system at once is not the best option.
9) Flexibility.
One of the most important factors and the most vulnerable point of Russian systems. The system will be implemented for one and a half to three years and will work for five to ten years, but, naturally, during this time the enterprise will change: products, organizational structure, management organization, business processes, roles and powers of managers. The management system must change along with production. This means that the system should allow you to easily change automated workstations and menus, generate reports and certificates, make arbitrary selections of information in a convenient presentation, change business processes and algorithms through parametric settings, and so on. The system should also easily integrate with other modules, for example, with Russian payroll or personnel management programs. European production systems are usually more flexible than American ones - they are initially focused on taking into account the national characteristics of different countries of the European Community.
10) Architecture.
A three-tier system is preferable - database server, application server, client server.
11) Technical platform.
During the life of your system, more than one generation of hardware will change, so attachment to a specific platform is dangerous. The system must be able to migrate from platform to platform.
12) Operating environment.
There must be versions for UNIX and Windows NT. UNIX today is a reliable, proven, durable, scalable system, the only drawback of which is the complexity of administration.
The use of Oracle and Informix is mandatory, the rest are optional.
So, there are no ideal systems that would satisfy all requirements. But if the result is satisfactory in most respects, you should purchase a trial version of the system and try to build a management model for the enterprise on it.
3. 2 Development of an integrated materials management system
So, the analysis of the state and assessment of the effectiveness of the material flow management system in production at Tyazhmekhpress CJSC revealed serious problems in the management of material flows. Material flow management should be aimed at ensuring the continuity of production, subject to changing consumer requirements, and cover the stages of purchasing materials, production and sales of products. The implementation of the assigned tasks is possible by creating an integrated material flow management system that meets the basic principles of logistics: integrity, feedback between the stages of product distribution, integration of tasks and functions of the system. This is a system for managing material flows in production, which quickly reflects the state of economic objects in order to make timely decisions about changes in production processes.
The purpose of the integrated system is to manage the flow of materials at all stages of the goods distribution process. The task of the system is to optimize organizational and management decisions made in the process of movement of materials according to logistics criteria.
In the process of managing material flows, the following set of works is performed: forecasting demand for products and developing medium- and short-term forecasts of needs, forming a production program and distributing it across segments of the planning period; volumetric and refined calculations of production capacity utilization; and establishing the main production schedule and the release schedule for the final production link; planning material requirements, monitoring production order fulfillment; sales management, planning and cost control.
Figure 3.1 presents an enlarged diagram that displays the interaction of the functions of an integrated materials management system. Next, the content of its main blocks is revealed.
Forecasting is associated with planning or anticipating the future volume of sales of products manufactured by an enterprise. Based on the forecasting results, short-term forecasts are compiled for 1-3 months and operational forecasts for 1-2 days. Short-term forecasts are used to plan the supply of materials and components, and operational forecasts serve as the basis for the formation of daily product release plans and sales policy of the enterprise. The latter allows us to produce and supply products that are in demand, and only in quantities that can be sold.
Aggregate and detailed planning. Adaptation of production to variable demand is carried out in the process of aggregated (volume) and detailed (refined) planning. The task of aggregate planning in an integrated flow management system is to establish an inventory program and distribute it evenly over synchronization periods throughout the month. Aggregate planning is based on monthly sales forecasts. It stabilizes the level of production in the planning interval and allows you to include in the production plan new products and small-scale products, the production time of which is not fixed. The task of detailed planning is to formulate a daily program based on operational forecasts and a nomenclature plan and to establish the rhythm of production of the final production link.
Formation of the main production schedule. The volumetric production plan must be transformed into a master schedule, which
Figure 3. 1 - Enlarged diagram of the integrated material flow management system at JSC Tyazhmekhpress
Each type of product sets monthly and average daily production volumes, average cycles and private rhythms. In accordance with this schedule, orders for the supply of necessary materials are formed and a production schedule is established for the final production link. The main schedule must be consistent with the production capacity of the enterprise, available technological and human resources.
Planning of material requirements. Based on the main schedule for each type of product, supplies of necessary materials and components are planned. The main task of planning; is to determine the timing and volume of supplies to ensure continuous supply of production with the necessary raw materials and materials. The full cycle of planning material requirements includes a sequence of logically interconnected functions: identifying needs, assessing the degree of their satisfaction from existing stocks, and forming a supply (purchasing) plan on this basis.
Determination of material requirements should be carried out in accordance with the demand for the product. In this case, it is necessary to distinguish between dependent and independent demand. Independent demand occurs when the need for a particular product is not determined by the demand for any other product. Products with independent demand include final products, the demand for which is determined by market requirements and is not related to production needs. Independent demand cannot be calculated, it can only be estimated through forecasting. Dependent demand means that the need for a product is determined by the demand for another product and arises in the process of its manufacture. Dependent demand is not random and appears at specific points in time. Last thing; This provision is fundamentally important and must be taken into account when determining the most economical order size. The classic approach to determining the optimal supply quantity assumes that demand is constant and inventory replenishment occurs when its level decreases. This provision cannot be used for products with dependent demand. If you do not strive to save money by ordering materials in large quantities, then the supply plan for products with dependent demand should be formed from the condition: the main components should be available only at the time the need for them arises (not earlier and not later). Inventories should not be replenished unless there is a production need for it. In the system under consideration, inventory formation should be carried out for the synchronization period. For items of dependent demand, the need can be determined based on the production program, product specifications and assembly structure diagram.
At each level of detail in the assembly layout, demand is determined by balancing gross demand with inventory availability. Uncovered net requirements are combined into batches and included in the procurement plan.
Clarification of the procurement plan for a short period of time in accordance with production requirements and conditions for fulfilling orders, as well as monitoring the activities of suppliers is carried out at the stage of operational supply management. In this case, three interrelated tasks are solved: developing a detailed delivery schedule, establishing the size of the purchased batch; determination of the form and method of operational accounting of supplies.
A detailed supply schedule serves as a control document and serves to reflect information about upcoming purchases. The schedule form must be constructed in such a way as to cover the entire complex of necessary data for issuing and clarifying delivery conditions, namely the name of the material indicating the general need for it, code and name of the product in which the material is used, information about the supplier, size and order execution time.
Planning of production capacity is associated with the issues of determining the requirements for labor and equipment corresponding to the production schedule. The main task of planning production capacity is to carry out volumetric calculations of the load of workshops and areas that have the following purposes:
1) determine the need for labor and equipment necessary to implement the accepted basic production schedule;
2) outline measures to eliminate imbalances in the use of labor resources;
3) clarify the level of load and shift of groups of equipment (workstations) on the day of determining the reserves for their use and the arrangement of the main work areas at work stations.
Volumetric calculations are carried out in accordance with the monthly production program and average cycle.
If the schedule is incompatible with the available capacities, then their value is adjusted: increased or decreased depending on changes in demand. The problem of increasing production output is solved by lengthening the working day and introducing various types of improvements. When reducing production, the focus is on the following issues:
1. Employment level. In response to decreased demand and reduced production volumes, workers are transferred to other lines and areas.
Reducing the number of work shifts.
Improvement of workers' qualifications.
Practicing equipment re-adjustment operations.
Rationalization of production processes and equipment.
Inventory management is closely related to material requirements planning. The content of this function is to maintain costs associated with the creation and storage of inventories at a minimum level, subject to satisfactory customer service. Inventory management involves performing a set of calculations and work to establish the order point and the required quantity of materials; selection of an inventory control system, organization of continuous monitoring and operational supply planning.
Planning and management of production progress is carried out using detailed schedules. The formation of such schedules is based on the main production schedule and the finished product supply plan. A detailed schedule is drawn up only for the final production link and contains information about the sequence of launching products into production and the volume of output per day.
Adaptation to daily fluctuations in demand is carried out through operational production management - the Kanban system, which allows you to regulate the volume and timing of production at the subsequent stage depending on the demand at the previous one.
Within the framework of the operational planning system linked to the production of goods, sales of finished products are planned. The location of the sales planning function is shown in Figure 3. 1. As you can see, the supply plan for finished products is formed on the basis of data obtained when forecasting demand. The development of programs for the movement of product flows from the enterprise to the final sales centers includes determining the needs for warehouse space and vehicles, as well as performing calculations to optimize the placement and volume of intermediate warehouses in the event of mass movements and acceptances.
Planning and cost control are aimed at determining the expected costs of production and sales of each type of product and finding ways to reduce actual production costs.
Summarizing the above, we note that the main principles of forming an integrated material flow management system are: forecasting changes in market needs, monitoring the status of execution of actual orders, synchronizing work schedules of individual production units.
The implementation of the concept of integrated management of material flows in production should be carried out on the basis of constructing a multi-level optimization model, covering the stages of aggregated and detailed planning of material flows. The use of such a model allows you to automate the processes of developing monthly and average daily production volumes, determining the need for materials and quickly managing supplies and production.
In addition, to ensure the required quality of fulfillment of customer orders, both comprehensive optimization of the order fulfillment process itself and increasing the efficiency of the management system are required. The basis for optimization should be a comprehensive analysis of the constituent processes, structures and functions of managing material flows in production, as well as their environment, carried out based on objective formalization. Let's formalize the process of managing material flows in production using the SADT methodology of structural analysis and design (Fig. 3. 2).
The result of the modeling is an ordered set of SADT diagrams with block numbering corresponding to the hierarchy level, which allows us to obtain a holistic structural and functional model of the material flow management system in production, covering the entire variety of information associated with the processes occurring in this system. It has been established that the structural-functional model of the material flow management system can be used for practical developments in solving problems of optimizing production processes; improving the structure of the material flow management system with a clear distribution of functions between structural units; simulation modeling for a better understanding of the functioning mechanism of the material flow management system; designing an external and internal document flow system; development of an interconnected and consistent internal regulatory framework for
acceptance.
Figure 3. 2 - Diagram of the process of managing material flows during the execution of consumer orders
The proposed system for managing material flows in production can be integrated with the Galaktika CIS, which will allow solving a number of problems. Such integration will allow planning of production orders in real time, promptly responding to fluctuations in the external environment; synchronize not only the needs of customers with the production process, but also the processes of the order fulfillment cycle themselves, that is, determine the optimal sequence of operations performed, which will lead to a reduction in the duration of the order fulfillment cycle; optimize the use of material resources in order fulfillment processes, which will minimize production and distribution costs; adapt to changes in the needs of end consumers of products, production technologies, behavior of competitors in the market and, as a result, improve the quality of customer service in a dynamic external environment.
Calculation task
Planning of requirements for materials, parts, assemblies (MRP)
Initial data
The Bloomington bicycle company produces two models of bicycles: Basic and Supra. Herb Hosier, owner of the company, plans to assemble 150 Basics in 7 weeks and 100 Supras in 9 weeks. The tables below show the items required to assemble the final product, production time, available inventory, expected receipts, and lot size.
Source data table
Task: build a product tree and prepare an MRP plan for these products.
1. Let's build a structure tree for the Basic and Supra products.
Basic Supra
Week no.
Gross requirement
Planned arrival
On hand stock
Net requirement
Planned order
K, delivery time 1 week *2
F, delivery time 1 week per batch
Q, Delivery time 1 week per batch
Conclusion
So, material flow management can be considered as a process of targeted influences on the organization and individuals involved in the promotion of material flows, and the management system.
Management functions include: material planning
flows at the strategic and intra-company level, coordination
activities of departments involved in the implementation of production orders from the moment they are received until the moment of use, monitoring the progress
processes in the material-conducting system and eliminating identified deviations through regulation.
As part of the material flow management system, according to the target attribute, several subsystems can be distinguished that characterize separate areas of activity: management of the timing and progress of production orders, management of material support for production, management of material inventories, management of product distribution.
The organization of the movement of objects of labor is an independent area of practical activity in relation to the management of material flows; in the process of organization, the interconnection of individual process flows is achieved and conditions are provided for their economically feasible interaction.
The organization of material flows presupposes the formation of a stable system of spatial and temporal connections. Spatial connections determine the composition, relative location and interaction of enterprise divisions involved in the formation and management of material flow. The form of expression of spatial connections is the logistics structure of the enterprise. Temporary connections reflect real movement - objects of labor in space and time; and are based on two interrelated time characteristics: the cycle and the duration of the stages of fulfilling production orders.
The steady trend towards expanding the variety of products and increasing competition in the market necessitates an increasingly focused production on consumer requirements: reduction of order execution and delivery time, high quality of goods at a low price. The implementation of the noted requirements encourages product manufacturers to quickly adapt to the production of new products, not accumulating stock of finished products and components. Ensuring such production flexibility is possible subject to the development of a new strategy for the development, production and distribution of finished products, allowing to shorten the production cycle while maintaining high quality of products. A strategy that meets these requirements is implemented in the logistics concept.
The formulation and diagnosis of material flow management problems is possible only on the basis of establishing a logical connection between cause and
investigation and identification of symptoms and causes of the problem situation.
Diagnosis of the state of material flow management should be carried out in two directions: identification and analysis of symptoms
reasons in the context of the main areas of production activity by stages
management cycle; assessment of the state of material flows by stage
commodity circulation.
The organization process involves the implementation of the following stages of work: express diagnostics and identification of signs of problems; formulation
and diagnosis of the problem; choosing options for solving the problem; implementation of the solution.
In the process of carrying out the work, key factors in the problems of managing material flows in the production of the object under study were identified: irrational forms and methods of implementing material flows, non-synchronization of individual stages and phases of the production process, inconsistency of sales plans, production and production preparation, disruption of the rhythm of production due to the lack of regulatory bases for planning the progress and timing of work, low level of mechanization of accounting and management processes. The problems of managing material support for production are best explained by insufficient coordination of the activities of production departments and planning and logistics services, a lack of funds necessary to pay for orders, irrational distribution of resources over time, violation by suppliers of deadlines, quality and completeness of supplied resources, lack of information about materials market and raw material prices.
In the third section of the course work, recommendations were proposed for improving the state of material flow management in the production of JSC Tyazhmekhpress, including the competent choice of a material flow management system, as well as an integrated material flow management system.
Bibliography
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6. Lavrova O.V. Material flows in logistics: Lecture notes. Saratov State tech. Univ., 1995. 36 p.
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Appendix A
Functional diagram of MRP
Appendix B
Functional diagram of material flow management
"Just in Time"
Appendix B
Characteristics of materials management systems
Table continuation |
||||
Appendix D
Distinguishing Characteristics of a Materials Management System
absentAppendix D
Indicators for assessing the state of material flows
Purchase of materials Production Delivery of finished products Transportation Warehousing |
Purchase of materials Production Delivery of finished products Transportation Warehousing Purchase of materials Production Delivery of finished products Transportation Warehousing |
Appendix E
Map of symptoms and causes of unsatisfactory condition
material flows
V. MANAGEMENT OF SUPPLY OF FINISHED PRODUCTS |
|
Choosing irrational methods of product delivery Dispersion of final transportation points Disadvantages and errors in planning the distribution process Underestimation of marketing capabilities when planning the implementation process Lack or insufficient control of finished product inventories (excessive inventories or shortages) Disadvantages in regulating product delivery processes Insufficient contacts and connections between the enterprise and consumers 8. Inconsistency of plans and schedules for delivering products to consumers |
In modern conditions, three directions for improving the current material flow management system can be distinguished.
The first is strengthening the interaction of various functional links by improving the use of economic mechanisms.
The second is achieving the required level of coordination through organizational changes in the enterprise management structure.
The third is the improvement of material flow management through the use of computers and specialized information systems, such as a materials requirements planning system or a materials planning and management system.
Review questions
- 1. Logistics management tasks.
- 2. Logistics management functions.
- 3. Types of logistics management structures.
- 4. Functions of the logistics department at an industrial enterprise.
- 5. Directions for improving the material flow management system.
Methods for optimizing material flows
Express diagnostics and identification of signs of a problem
Formulation and diagnosis of the problem
Selecting options to solve the problem
ABC analysis
ABC distribution
ABC analysis technique
XYZ analysis
XYZ distribution
XYZ Analysis Technique
Review questions
Diagnostics of material flows
Diagnostics of material flows is aimed at establishing and studying signs, assessing the internal state of material flow management and identifying problems in the effective functioning and development of the management system, as well as developing ways to solve them.
From a technical point of view, diagnostics makes it possible to identify problems caused by the structure of the logistics system, the characteristics of the external environment and the nature of interaction with the external environment; from the economic side, diagnostics records deviations from the norm in parameters that determine the effective functioning of the production and marketing system.
Diagnostics, using the results of operational analysis of the state of the managed system and its environment, serves to justify decisions on the organization and regulation of material flows, and also provides information for planning the development of the logistics system. Analysis is the first stage of diagnostic research and allows you to compare and select effective solutions for the development of a material flow management system, identify the causes of failures in management and the conditions for their elimination.
Diagnostics allows you to solve the following set of problems:
- · establish the state of the material flow management system, its compliance or non-compliance with standards determined by the needs of practical activities;
- · highlight logical “cause-effect” schemes that explain the dependence of the efficiency of the logistics system on the qualitative and quantitative composition of its elements and structure, as well as the state of the environment in which the enterprise operates;
- · systematize and describe the reasons causing violations in the material flow management system;
- · determine the possible states of a given system based on the existing and future structure of connections of its elements;
- · assess the possible consequences of management decisions from the point of view of the effectiveness of the system as a whole.
The basis for organizing diagnostic studies should be principles, the implementation of which will ensure an increase in the efficiency of the work being carried out. These include principles: key link, consistency, cause-and-effect correspondence.
Key link principle. The material flow management system is one of the complex systems. The organizational and economic processes taking place in it are formed under the influence of many factors. It is almost impossible to take into account and study them all; it is necessary to select the decisive, most significant ones. Identification of key problems and the main reasons causing a problematic situation is one of the principles of diagnostic research. This principle is implemented by decomposing the functions and goals of the logistics system, classifying problems, and determining the priority of individual factors when assessing problems.
Systematic principle. Systematicity in diagnostic research means a comprehensive and interconnected study of the problems of the control system. In accordance with this principle, a program to improve the materials management system should be assessed from the point of view of the effectiveness of the entire materials management system as a whole, in order to eliminate the possibility of unexpected and unforeseen consequences.
The principle of cause-and-effect correspondence. One of the requirements for diagnostics is knowledge of the causes of disturbances in the system and deviations from the norm in its parameters.
The study of the causes of violations of the normal state of the control system as a way to solve emerging problems, in which the analyst’s attention is focused on the study of cause-and-effect relationships, is a necessary condition for the effectiveness of diagnostic research and is defined as the principle of cause-and-effect correspondence.
The process of diagnosing material flows involves identifying problems (causes of deviations from the normal state of the system) and determining ways to resolve them in accordance with the requirements of the environment.
The main phases of this process are:
- § express diagnostics and identification of signs of problems (more details);
- § formulation and diagnosis of the problem (more details);
- § selection of options for solving the problem (more details);
- § implementation of solutions.