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Optimizing Material Movements in Multiple Sell Production

Optimizing Material Movements in Multiple Sell Production

Optimizing Material Movements in Multiple Sell Production

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When optimizing you should not limit yourself to only one production cell. Rather you have to consider production as a complete whole.

Let us take for example production including three cells. Here one of them is dislocated.

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The first stage of production starts in cell 60 where semi-finished products and scrap are obtained by processing materials and raw materials. The second stage of production occurs in cell 61 where additional semi-finished products are obtained by processing semi-finished products and materials. Finally, in cell 62 a product is made by processing semi-finished product and material plus packaging.

Besides receipts and issues there are also three transfers in the system (grey arrows).

Cells 60 and 61 are in the same location. For sake of transparency in planning they are classified separately so that it is possible to track work orders in each cell using its own business event. Cell 62 is located elsewhere. Here you supply semi-finished products made in 60 and 61.

Let us take a look how to streamline the structure.

At the moment let us leave the cell 62 because it is autonomous and placed at a different location requiring its own warehouses.

Let us join all warhouses for storing semi-finished products, for storing scrap and those for materials.

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67077.gif Because document types of movements are linked only to warehouses (source not defined in manufacturing), you can use same types of documents in various cells (the basic schemes 3B and 3D are joined in 3B omtimized scheme).
Next join warehouses for storing materials and raw materials for cells 60 and 61. Plus, join warehouses for storing packaging, materials and semi-finished products for cell 62.

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What is the result of optimization?

Documents
Non-optimized
Optimized
Work Orders 3 3
Issues 6 2
Receipts 5 3
Transfers 3 1
All documents179
Warehouses125
 
67079.gif For every 1000 work orders you use 8000 documents less.

 

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