System Dynamics Corporation

technology leaders since 1975




 

DYNAMIC 3i MANUFACTURING PROCESS


Manufacturing Process Diagram
 
In the diagram of DYNAMIC 3i Manufacturing above, each area can be thought of as a world onto its own.  Each of these areas has processing functions that occur within itself and that place tasks on other aspects of the system.  The Structures and Routings (SR) module relies heavily upon the inventories which is why these two modules can be thought of as one when the DYNAMIC 3i manufacturing is utilized.  The SR module defines and maintains all of the Bill of materials, Production Work Centres and sequence of operations within the manufacturing process.

The MRP ((Requirement Explosion - RP0100) is the heart and soul when the manufacturing suite of applications within DYNAMIC 3i are installed and utilized.  The requirement explosion (RP0100) analyzes all of the individual worlds that would potentially place demand on the manufacturing process to produce product.  The requirement explosion takes into account the current inventory levels, purchases of raw material coming into the system and current jobs that may be creating the finished goods.  These are represented by the dashed-arrows within the diagram.

Order entry accepts orders from customers.  These orders may then place demand upon the process and inventories to supply the goods.   As a result these orders create an Accounts Receivable (AR) entry.

Production planning may also create demand by way of sales order planning (Sales Forecasting) which mimics sales orders within the system and/or actual Production/Plant planning.

When the requirement explosion is finished a series of suggestions are created in the Production Planning module (PP).  These suggestions can be viewed along with all requirements in the Master Production Schedule - PP2100 on a product detail level.  These suggestions are valid for the state at which the system was in at the time it was analyzed by the Requirement Explosion – RP0100.  These suggestions can then be accepted/modified and created into the individual worlds that they affect.

For example based upon the order entry requirements and the current inventory stock levels, the system may suggest that a certain quantity of finished goods be manufactured.  This work order to create this product is extracted and created into the production control module (PC).  

If raw materials are required then a suggestion is created and extracted into the purchasing module (PO).  

If the system has multiple warehouses and products can be transferred from one place to the other to supply demand at any given location then suggestions may be created and extracted in the form of inter-warehouse transfers into the inventory module (IN)

All of these can be seen in the diagram as the solid arrows extracting into the inventories (IN), Purchasing (PO) and Production Control (PC) modules respectively.

RULE:  The system and its suggestions are only as good as the LAST time the requirement explosion – RP0100 is run.  Any changes made to the production schedule and/or subsequent changes on demand from other areas in the system will NOT BE SEEN until the next time the requirement explosion is run.

Once each area has its respective tasks then the processing allowed within that area occurs.  Eg. Purchases supplied from vendors create accounts payable (AP) entries.  As well as increasing the inventories of materials purchased.

Production Control uses the materials from the inventories to create the manufactured items thus increasing the inventory levels (IN) of these items in order to supply the demand requirement of the order entry (OE) module

In all cases as each module processes its tasks, the MRP (Requirement Explosion - RP0100) constantly analyzes the changes and re-generates a requirement plan each time it is run.  The analogy can be thought of as a gigantic snow-ball that is constantly rolling and changing.
Basic Steps for production flow – Manufacturing Resource Planning (MRP).  

Assuming all aspects of the system are defined.  

Step 1.              

Run the Requirement Explosion - RP0100.  

Step 2.  

Verify/accept/agree with the suggestions produced into the Master Production Schedule (MPS – PP2100).   Step 3.  

Run a Planned Orders Due for Release  - RP1700.

These are now Work Orders in the Production Control Module:

Print jobs (PC2100).

Physically run/work on jobs.

Material Confirmation - Record material usage Manual/Automatic (PC3100/PC3200) against the job.

Job / Sub-job Confirmation Confirm qtys. of finished goods into stock Manual/Automatic (PC5100/PC5200).

Note: PC5200 confirms the finished good AS well as automatically relieving the raw materials based upon the standard component quantities on the structure file for the amount of the confirmed finished good.

Run a Purchase Order Extract - RP1200

These are the purchasing requirements based upon the demand of items required to be produced and are now available in the PO module under automatic purchasing, for review (PO1200):

Review Extracts and change if required.

Post/create purchase orders (PO1300).

Print Purchase Orders (PO2200).

Receive purchases into inventory (PO5100).    

This cycle is repeated and the system is re – analyzed at any point by running the Requirement Explosion – RP0100 again.  I.e. The Requirement Explosion should be run according to a schedule.  Maybe each morning or half day or every four hours.  It depends upon the frequency of change and nature of the business.

The requirements explosion looks at the system on a whole (what is on-hand on work order, what is coming in to stock (PO’s) etc. what is required from stock (raw materials etc. for jobs that are work in process).  Essentially each time it is run it could see a different set of parameters based upon the status of the system at that point in time.