THE MANUFACTURING MANAGER

Chapter 1

The Manufacturing Company

An overview of the company's legal and financial basis, including its juridical personality and limited liability. The rights and responsibilities of directors.

Chapter Sections as follows:

1. The Legal Framework of the Company; 2. The Directors and Managers of the Company: the board of directors; company managers; 3. Methods of Trading: make-to-stock; make to order; assemble to order; engineer to order; 4. Company Tasks - an Overview in Relation to this Book: product development and sales; output and inventory planning (master planning); production planning and external supplies; controlling operations (production); quality and Just-in-Time; finance; human resources; distribution.

Chapter 2

Sales and Marketing

The marketing concept and the coordination role of Sales & Marketing. Market research. The development and introduction of new products. Sales order processing.

Chapter Sections as follows:

1. Marketing: the marketing concept; the marketing mix; the coordination role of marketing; the planning role of marketing; the functional role of marketing; 2. Innovation: the development of new products; market research; sampling; 3. Selling and Sales Management: the role of selling; the management of sales; 4. Sales Order Processing; 5. Sales Forecasting.

Chapter 3

Product Innovation

The product brief. The stages of design from concept to detail. Failure and reliability - FMECA. Managing spares.

Chapter Sections as follows:

1. The Product Brief; 2. The Principal Stages of Design: the product design specification; the conceptual design stage; detail design; 3. "Design for" Manufacture: design for low cost; design for piece part producibility; design for assembly; design for the production process; design for quality; 4. Failure and Reliability: failure; reliability; spares for discontinued machines; 5. Bill of Materials Management.

Chapter 4

Sales Forecasting

Demand and the supply chain - Forrester's curves. Forecasting techniques including Bayesian and Box-Jenkins. Dealing with lumpy demand

Chapter Sections as follows:

1. Introduction to Short-term Forecasting; 2. Patterns of Data: stationarity; trend; step change; cyclicality; random variation; seasonality (seasonal factors, Fourier analysis); 3. Sales Demand Data: the origins of demand; time lags and the supply chain; using forecast data in planning; 4. The Naïve Forecasting Family: single moving averages; single exponential smoothing; double exponential smoothing; adaptive exponential smoothing; software and forecasting; 5. The Causal Forecasting Family: autoregressive moving averages (ARMA); Box-Jenkins (ARIMA); Bayesian forecasting; correlation and dummy variables; neural networks; 6. Forecasting Management: forecast errors; multi-period forecasting; field reports; 7. Dealing with Sporadic (Intermittent) Demand.

Chapter 5

Safety Stocks

Setting safety stocks by statistical means. The achievement of a pre-determined level of stock availability in the face of forecast errors.

Chapter Sections as follows:

1. Justification for Safety Stock; 2. Factors involved in Safety Stock: the sales forecast error; the master plan freeze period or leadtime of re-supply; protection of service by working stock; the cost of stockholding and the cost of rescheduling; the physical nature of the stock; 3. Customer Service Targets; 4. Defining Customer Service in Theoretical Terms: percentage forecast errors; percent annual demand; customer service with master plan rescheduling; specified time between stockouts; 5. The Safety Stock System: choosing the technique; data processing throughout the year; simulation and new choices.

Chapter 6

Master Plan Formulation

Sales and operations planning and RRP. Detailed MPS formulation and the question of capacity - RCCP. Corporate commitment to the master plan.

Chapter Sections as follows:

1. Definitions: manufacturing and inventory strategies; the MPS horizon; 2. Overview of the MPS Process: formulation of the master schedule; management of the master schedule; 3. S.& O.P. I : Business Review: the hierarchy of capacity planning; sales forecasts at the group level; the current master plan in financial terms; future levels of stock; 4. S.& O.P. II : Resource Requirements Planning: the load profile; special bills of materials; 5. Detailed Master Scheduling I: master scheduling and the projected stock balance; master plan time fences; generating product plans from groups; 6. Detailed Master Scheduling II (Rough Cut): capacity requirements planning (CRP); advanced planning systems and RCCP; 7. Commitment and Release.

Chapter 7

Master Plan Management

Freeze zones and rescheduling instructions. Consuming the forecast, including error add-back. Available-to-promise and capable-to-promise to avoid arrears and late deliveries. New products.

Chapter Sections as follows:

1. Consuming the Forecast: consuming the forecast - make-to-order; consuming the forecast - make-to-stock; 2. Available-to-Promise: available to promise; ATP and capacity allocation; the overpromised and overstated MPS; 3. Master Scheduling New Products.

Chapter 8

Assemble-to-Order

Re-design for assemble-to-order. The modular bill of materials and the super bill. Option overplanning. Managing final assembly and the need for teamwork.

Chapter Sections as follows:

1. Introduction; 2. Redesign for Assemble to Order: the analysis of common parts; modular design; 3. The Modular Bill and Option Choices: the modular bill of materials; customer specification of options; 4. The Super Bill; 5. The FAS and Master Scheduling: the final assembly schedule; the master scheduling of an option variant; 6. Forecasts and Option Overplan Amounts: forecasts; option overplanning; 7. Quick Response: compression of the MPS horizon; order receipt and final assembly; 8. Costs.

Chapter 9

Materials Planning

Deriving plan quantities and dates through the bill of materials, including planning rules. Dealing with loops, recoveries and co-products.

Chapter Sections as follows:

Introduction; 1. Order Point; 2. Planning and Manufacture; 3. Levels in the Bill of Materials; 4. The Calculation of Material Requirements; Gross Requirements: multi-site gross requirements; requirements and recoveries; materials planning and by-products; co-products; materials planning and grades of quality; the non-standard batch size; alternative bill of material usages; equivalent products; scrap and yield; 5. Gross Requirements to Plans; 6. Planning Rules: the economic order quantity; the period order quantity; part period balancing; the Wagner-Whitin algorithm; the least unit cost ordering procedure.

Chapter 10

Closed-Loop MRP

Data feedback to determine plan revisions. The roles of open, planned and firm planned orders, and the MRP logic governing them. Oliver Wight's ABCD list.

Chapter Sections as follows:

1. Defining Closed-Loop MRP; 2. Plan Types in MRP: the scheduled receipt (open order); planned orders; firm planned orders; 3. The MRP Rescheduling Logic: the MRP standard display; the rescheduling assumption; the MRP messages; rescheduling and the firm planned order; 4. Total Regeneration and Net Change; The ABCD Checklist.

Chapter 11

Shop Floor Control

The control of leadtimes and queue by I/O control. Job despatching rules. Leadtime management by supervisors. The shop floor information systems.

Chapter Sections as follows:

1. Work Scheduling; 2. The Release of Orders to the Shop: leadtime and queue; the vicious circle; input/output control; queues at intermediate work centres; final order release; 3. Job Despatching Rules (Job Prioritising): slack time; slack time per operation; critical ratio; shortest processing time (SPT); 4. Leadtime Management: operation overlapping; operation splitting; inter-operation time compression; 5. The Shop Floor Information System: the nature and scope of the system; design and development; the information system datafiles.

Chapter 12

APS

Advanced planning systems for discrete job scheduling, including discrete event simulation. Continuous flow scheduling. ILOG and constraints generation. Bottleneck scheduling and OPT.

Chapter Sections as follows:

1. Introduction to APS including ILOG; 2. Discrete Job Systems: scheduling tools and procedures; the discrete job scheduling engine; scheduling rules; 3. Continuous Flow Systems: the influence of the master production schedule; scheduling procedure; scheduling constraints; continuous flow scheduling in action; 4. Bottleneck APS Systems including OPT: maximising bottleneck output; allocating bottleneck output; 5. Linear Programming.

Chapter 13

Total Quality Control

Approaches to quality. Stabilising the system by eliminating special causes of variation. Management action to enhance the system to remove common causes. ISO 9000:2000.

Chapter Sections as follows:

1. The Imperative of Total Quality: today's marketplace; caveat venditor ! ; quality and cost; defining total quality; TQC and TQM; conformity to customer requirements; 2. Total Quality in the Manufacturing Company: the system; stabilising the system; improving the system's capability; identification and elimination of special causes; training and the introduction of TQC; 3. ISO 9000:2000.

Chapter 14

Statistical Quality Control

Walter Shewhart and the variable control charts. 6 sigma quality and capability indexes. Incoming materials and the use of sampling tables.

Chapter Sections as follows:

1. SPC - The Statistical Basis: the central limit theorem; Shewhart's bowls; dispersion of the sample-means; monitoring the process - first steps; monitoring the process - the control chart; 2. Using the Variable Control Chart: setting up the chart; monitoring the process; process capability; process capability studies; 3. The Attribute Control Charts: the statistical background to the attribute charts; using the fraction rejected chart (p chart); using the count chart (c chart); 4. Raw Material & Product Control: breakeven point analysis; sampling - three viewpoints; the operating characteristic of a sample plan; sampling tables.

Chapter 15

Just-in-Time

Establishing the building blocks of JIT - fast set-ups (SMED), group technology (cells and U-shaped lines) and communications (Kanban). Equipment maintenance and TPM.

Chapter Sections as follows:

1. Two Definitions; 2. Establishing Production Rates: the pattern of final assembly; the pattern of fabrication; the pattern of raw material supply; 3. SMED and Fast Changeovers: SMED Stage I - separating internal and external activities; SMED Stage II - converting IED changeover activity to OED activity; SMED Stage III - streamlining IED and OED operations; 4. Plant Organisation: functionally organised plant; group technology - introduction; group technology - families & cells; group technology - U-shaped lines; 5. Kanban: the mechanics of kanban; the number of kanban in the system; 6. Equipment Maintenance: maintenance v. repair; total productive maintenance; 7. Workplace Management.

Chapter 16

Purchasing

Partnership arrangements. Contract law. The responsibility for the transference of the goods (INCOTERMS). Commodities and foreign payments. Letters of credit.

Chapter Sections as follows:

1. Suppliers: sourcing; supplier appraisal and selection; supplier partnership agreements; supplier performance; 2. Order Placement: tenders; the purchase order; the contract; termination of the contract; 3. The Carriage and Receipt of Goods: the carriage of goods; the receipt of goods; 4. Price and the Marketplace: supply and demand; commodities; 5. Foreign Purchases: foreign payments; foreign payments and commercial risk; Countertrading.

Chapter 17

Finance & Costing

The essentials of financial accounting. The evaluation and financial treatment of fixed assets. Cost accounting including budgets and variances. ABC.

Chapter Sections as follows:

1. Financial Accounts: the profit and loss account; the balance sheet; the system of accounts; other financial accounting terms; 2. Assets: current assets; fixed assets; 3. The Evaluation and Acquisition of Assets: financial evaluation; financing asset acquisition; 4. Cost Accounting: product costing; integrated cost & financial accounting; budgets, standards and variances; costs in decision taking, including Activity Based Costing (ABC).

Chapter 18

The Stores and Stock Records

Stores organisation and operations - space v. speed. Supporting and improving the stock recording system. Cycle counting and count reconciliation.

Chapter Sections as follows:

1. Stores Organisation: physical layout; fittings and equipment; 2. Stores Operations: the receipt and storage of goods; stock issue procedures; order picking; 3. Stock Records Accuracy: the stock recording system; the accuracy goal; supporting the system; 4. Cycle Counting: cycle counting practice and procedures; cycle count reconciliation.

Chapter 19

Human Relations

Reward management including the Hay Guide Charts. Working relationships and the law. Health and safety - criminal liability and the duty of care.

Chapter Sections as follows:

1. The Organisation: the corporate hierarchy; human resource planning; recruitment and selection; 2. Reward Management: the external labour market; pay structures; job evaluation; the Hay guide chart-profile method; reward management and company objectives; 3. Working Relationships: empowerment and teams; strife; 4. Health & Safety: management; the involvement of the law.

Chapter 20

Distribution and DRP

Expanding and contracting the distribution network. Replenishing the network by DRP or DRPII. Transshipments. Transport options.

Chapter Sections as follows:

1. The Distribution Network; 2. Replenishment of the Network: DRP; Fair Shares replenishment; 3. Network Transshipments; 4. Transport of the Goods.

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Foundation Workshop (course)