Disclosure to Promote the Right To Information

Whereas the Parliament of India has set out to provide a practical regime of right to information for citizens to secure access to information under the control of public authorities, in order to promote transparency and accountability in the working of every public authority, and whereas the attached publication of the Bureau of Indian Standards is of particular interest to the public, particularly disadvantaged communities and those engaged in the pursuit of education and knowledge, the attached public safety standard is made available to promote the timely dissemination of this information in an accurate manner to the public.

इंटरनेट मानक

“!ान $ एक न' भारत का +नम-ण”Satyanarayan Gangaram Pitroda

“Invent a New India Using Knowledge”

“प0रा1 को छोड न' 5 तरफ”Jawaharlal Nehru

“Step Out From the Old to the New”

“जान1 का अ+धकार, जी1 का अ+धकार”Mazdoor Kisan Shakti Sangathan

“The Right to Information, The Right to Live”

“!ान एक ऐसा खजाना > जो कभी च0राया नहB जा सकता है”Bhartṛhari—Nītiśatakam

“Knowledge is such a treasure which cannot be stolen”

“Invent a New India Using Knowledge”

है”ह”ह

IS 15446-6 (2004): Guide to Production Control, Part 6:Computer Aided Production Control [MSD 4: Management andProductivity]

IS 15446 ~Part 6) :2004

Indian Standard

GtJIDE TO PRODUCTION CONTROL

PART 6 COMPUTER AIDED PRODUCTION CONTROL

ICS 03.100.50; 35.240.99

G BIS 2004

BUREAU OF INDIAN STANDARDSMANAK BHAVAN, 9 BAHADUR SHAH ZAFAR MARG

NEW DELHI 110002

September 2004 Price Graup 8

Management and Productivity Sectional Committee, MSD 4

FOREWORD

This Indian Standard (Part 6) was adopted by the Bureau of Indian Standards, after the draft finalized by theManagement and Productivity Sectional Committee had been approved by the Management and Systems DivisionCouncil.

The prime objective of production control is to help a company-become more competitive and profitable.An effective production control function endeavors to fulfil this objective by keeping a balance betweensatisfying sales demand, achieving high plant utilization and maintaining low investment in stocks andwork-in-progress. An optimum balance between these often conflicting objectives will only be achieved bya production control system designed to meet the specific needs of the company and run by well trained anddedicated staff.

The planning and information flows in the various stages of a production control system (see Fig. 1) can befacilitated by the use of computers. This standard describes the benefits of the use of computers in the productioncontrol process. The capabilities of computers to store, maintain, manipulate and share large volumes of data andcommunicate information very quickly is ideally suited to the present day needs of production control. Today’smanufacturer can be faced with international competition, quickly changing markets, the customer’s expectationof significant reductions in design-to-delivery lead times and severe profit margin erosion. Much of this pressureis brought about by the intelligent use of computers by the competition especially in the field of productioncontrol. The effective management of this area of the business is vital and can lead to significant cost reductionsin the areas of work in progress and component stores; it can also lead to an overall reduction in delivery leadtime.

To remain viable and to meet and beat the competition, manufacturers should seriously evaluate the use ofcomputer aids in production control. This evaluation has to be professional in terms of the objectives and thelikely costs and benefits. The effort required is large and cannot be taken lightly, but the rewards in terms ofimprovements in performance and management control can be enormous.

NOTE — The development of the use of computers in production control is described in Annex A.

Reference has also been made to following British Standards for which there are no Indian Standards:

BS No. Tide

3138:1992 Glossary of terms used in management services5191:1975 Glossary of production planning and control terms

The concerned Sectional Committee has reviewed the provisions of these British Standards and has decided thatthey are acceptable for use in conjunction with this standard.

While formulating this standard, considerable assistance has been taken from BS 5192 (Part 6): 1993 ‘Guide toProduction Control: Part 6 Computer aided production control’.

This standard is published in six parts and gives comprehensive guidance in those areas that are consideredessential for effective production control. The other parts in the series are as follows:

IS No. Title

15446 Guide to production control:(Part 1): 2004 Introduction(Part 2): 2004 Production programming(Part 3): 2004 Ordering methods

(Continued on third cover)

1S 15446 (Part 6) :2004

Indian Standard

GUIDE TO PRODUCTION CONTROLPART 6 COMPUTER AIDED PRODUCTION CONTROL

1 SCOPE

This standard (Part 6) gives guidance on the use ofcomputers in production control. It does not describethe use of computers in other areas of the businesssuch as computer aided design, engineeringmanagement, finance, purchasing, payroll,maintenance and sales order processing. However, thetechniques and requirements identified andrecommended in this standard for the establishmentof a formal specification of requirement, selection andjustification of a computerized production controlsystem (either bespoke or a commercial package),installation and implementation of the system, togetherwith the guidance on on-going operationalrequirements and future trends, may be applicable notonly to production control systems but equally to theprofessional evaluation, selection implementation andoperation of any business system in the manufacturingcompany.

2 REFERENCES

The following Indian Standards contain provisionswhich, through reference in the text, constituteprovisions of this standard:

IS No. Title

15446 Guide to production control:(Part I) :2004 Introduction(Part 3): 2004 Ordering methods

3 DEFINITIONS

For the purpose of this standard, the definitions givenin IS 15446 (Part 1) shall apply.

4 SPECIFICATION OF REQUIREMENTS

4.1 Business Requirements

4.1.1 in today’s business environment of internationalcompetition, world class quality for products anddrastically reducing manufacturing lead times, the needfor good production control systems has to be clearlyunderstood in terms of the business requirements.These should be defined clearly in three strategystatements.

a) Marketing strategv of the company — It

should be stated what segments of the marketthe company is in, what segments it is not inand where the company plans to be in 5 to 10years.

b) Business strategy — The business andfinancial targets that the company has set foritself over the next 5 years should be stated.Examples are return on investment targets,inventory turns, production lead times, qualitytargets, cost reduction targets, profitabilitytargets, training targets, market share bycountry.

c) Information technology strategy — The typesof systems that will be required to meet thedemands of the business and marketingstrategies in the face of competition shouldbe identified.

4.1.2 After the business, marketing and informationtechnology strategy statements are known and agreedwithin a company, the informational subset that is nowrequired to support the production control part of thebusiness can be defined.

4.2 Problem Definition

Once the business, market, and information technologyobjectives have been established, the problem forproduction control is to.define how to achieve them. [tis necessary to identify the main problems that have tobe overcome in the production control function tosupport these strategies and at the same time fit intothe overall framework of present and future systemcommunication requirements implied by the strategies.The problem definition phase should describe theproduction problems in terms of the followingrequirements:

a)

b)

c)

d)

e)

9

g)h)

j)k)

m)

n)

P)

q)

Batch sizes;

Routeing options;

Contract control;

Traceability;

Frequency of change over;

Work-in-progress value;

Engineering change control;

Bottlenecks;

Overall manufacturing lead time objectives;

Quality/rework objectives;

Volume;

Warranty control;

Key equipment maintenance;

Multi-site manufacturing;

1

IS 15446 (Part 6) :2004

r) Centralized ordecentralized purchasing;

s) Centralized or decentralized productionplanning and control;

t) Cost of space;

u) Cost of people skills; and

v) Space constraints.

The objective here is to define the production controlproblems that are specific to this business and thenprioritize their importance.

4.3 Functional Requirements Specification (FRS)

4.3.1 After the objectives have been established andthe specific problems defined, a functionalrequirements specification (FRS) should be drawn up.This step is absolutely crucial and cannot be ignored.It establishes the basis for the system design andprovides the reference point for comparing all proposedsolutions (whether in-house or third party).

4.3.2 Without this vital reference point the evaluationof all possible solutions is haphazard andunprofessional. Without it there is a risk of comparingone solution against another rather than alwayscomparing a proposed solution against an agreedstandard (the FRS). In the case of purchasing computersoftware, shopping around for a solution is uselesswithout the agreed specification against which tocompare it. The FRS has to be agreed formally by themajor business divisions within the company such asli}]iitlc~, manufacturing, sales/marketing, engineeringand data processing. Otherwise the resulting solutionwill not be used seriously by the end users.

4.3.3 The FRS should describe in the detail the flow ofinformation required, the volumes anticipated and thebusiness issues to be serviced. For example thefollowing sizing requirements may be specified:

a)

b)

c)

d)

e)

o

~)h)

j)k)

m)

n)

P)q)

r)

Number of parts;

Number of product structures;

Number of operations;

Need for alternative structures and routeings;

Contract control requirements;

Traceability requirements;

Batch sizes;

Quality control targets;

Shop-floor data collection requirements;

Finite scheduling requirements;

Capacity modelling;

Master scheduling modelling;

Re-order levels;

Material requirements planning (MRP)capabilities;

Links to cell controllers; and

2

s) Links to other business systems such as:

1)

2)

3)

4)

5)

6)

7)

Accounting/tinance/ledgers

Purchasing

Finished goods

Receiving

Engineering/design

Sales orders

Sales forecasts.

4.3.4 The objective of the functional requirementsspecification is to think through and address in detailthe type and flow of information required to supportthe business problems. The actual systems required toimplement the specification range from face to faceverbal communication in a small partnership to largescale integration in very large companies. However,without the agreed sp~cifrcation a detailed computersoftware solution (if required) cannot be designed.

4.4 Feasibility Study

4.4.1 Once an agreed functional requirementsspecification has been obtained, the feasibility of thealternative solutions should be examined so that arecommendation can be made. At this stage thefeasibility of manual systems, bespoke software,commercial software, or the combined use of two orall three of these is evaluated.

4.4.2 Manual systems are most effective when volumesare low and the timeliness of data is not critical.However, manual systems still require documentedprocedures and controls.

4.4.3 If part of the solution deemed appropriate toaddress the functional requirements definition ofproduction control is computer based, there are twooptions: develop a bespoke production control systemin-house or using a third party; or find a commerciallyavailable product that has a reasonable fit to therequirements. The best fit will always & from a systemspecifically designed and programmed for the detincdrequirements. However, this is a costly and timeconsuming task even with the use of the most moderndevelopment tools. The costs are in Iwo areas:

a) Development of a system requirementspecification that is a detailed computerspecific specification;

b) Development of a system design specificationthat is a detailed code level specification.

There is an associated cost and talent requirement foreach of these plus the on-going maintenance and errorcorrection support costs of the finished product.

4.4.4 Bespoke systems provide the best fit but they areusually not undertaken because of the huge overheadcosts in developing and maintaining one-off system.

IS 15446 (Part 6) :2004

The usual compromise is to find a commercial productwhich is a close fit (80 percent is satisfactory) and eitherto modify the last 20 percent in agreement with thevendor or to modify the company procedures to fit thestandard. The benefits of commercially availablesystems are:

a) On-going maintenance and development;

b) Error correction support; and

c) Consultancy and training availability.

4.4.5 It is the function of the feasibility study toevaluate these options and to choose the most cost.effective direction.

4.5 Market Appraisal

If the recommendation of the feasibility study is toutilize a commercial software product, a marketappraisal may be necessary to find the best solution.This is where the FRS is particularly valuable and formsthe basis for the capability evaluation. This view,balanced with system costs, return on investmentviews, software availability, adherence to systemstandards, financial health of the vendor and totalsystem cost of ownership including hardware andsupporting system software, will enable the companyto make a productivendor selection.

4.6 Computer Software Definition

An important aspect of the computer based solution isits ability to coexist with and link into other existingand proposed systems. Therefore, the standards whichthe company wishes to utilize in support of theirobjectives should be defined first. Are&s to beconsidered are as follows:

a) Communication standards;

b) Database structure to be used;

c) Programming language to be used;

d) Operating system standard; and

e) Security and access control.

4.7 Computer Hardware Definition

A further definition of the system standards thecompany requires may be appropriate for the hardware.

Considerations are:

a)

b)

c)

d)

e)

9

~)

Need for colour graphics;

Remote communication;

Speed of transaction response;

Maintenance and training costs;

Use of standard packages on the hardware;

Programming language availability; and

Vendor’s financial health.

50PTIONSELEffION OF STANDARD PACKAGES

5.1 General

5.1.1 For each new system introduction it is essentialto study the specification of requirements outlinedin 4. After the functional requirements specification(see 4.3) has been completed a key decision should bemade: whether the functionality defined can beobtained by using a standard package or whether itwill be necessary to develop a bespoke system.

5.1.2 The development ofa bespoke system or indeeda major tailoring of a standard system is a costly andtime consuming route. It is therefore recommended thatcompanies should re-examine the requirement for thefunctions not provided by a standard package andcheck whether there is an alternative standard functionthat would fulfil the same need. They should alsoquestion whether that function is essential or justattractive and whether the extra cost and time ofimplementing it would be justified.

5.1.3 A distinction should be drawn between theincorpo~ation of a new function and changes to theinput and output screens and forms. The latter case, ingeneral, will be relatively easy to amend to meet users’preferences.

5.1.4 In 5.2 to 5.4 some of the main categories ofapplication package which might be considered for usewithin a manufacturing companyare outlined. For eachcategory there is a brief description ofi

a) Major functions that would be expected in astandard package;

b) Areas and industries where the category ofpackage is generally applied; and

c) Possible problems and an indication of howan improved solution can be achieved.

5.1.5 An application package will usually consist of anumber of modules. Annex B lists the major packagemodules and the functions typically found in them.Additional modules are also available to handle specificmanufacturing requirements and those of other partsof the company. To be effective all these should beintegrated, so that users have the minimum ofinconvenience in switching between modu Ies andduplicated data entry is avoided.

5.2 Stock Control Application Packages

5.2.1 General

Applications for stock control are usually one of thefollowing two types:

a) Those that are made up of modules (forexample part data, purchasing, inventorycontrol) that interlink and to which further

3

1S15446 (Part 6) :2004

modules can be added as required (forexample financial, planning); and

b) Those that are not modular but carry outsimilar functions; such applications oftenhave more sophisticated statistical control andreporting features.

5.2.2 Major Functions

Stock control application packages enable users tocontrol the stocking and replenishment of materials.Users maintain a database of stock item informationand the quantity of stock on-hand. The usage of stockis recorded and forecasting techniques maybe used topredict future usage and hence when or how much tore-order to prevent stockout. There-order decision maybe based on the following:

a) Fixed order quantity [see 6.3 of IS 15446(Part 3): 2003];

b) Fixed interval re-order [see 6.4 of IS 15446(Part 3): 2003].

Re-order recommendations may be handled by apurchase order module.

5.2.3 Application Areas

This type of package may be suitable for companiesor departments that buy and re-sell goods, or usematerial with no or minimal processing. Examplesmight be those engaged in maintenance, spares or retai1activities.

5.2.4 Possible Problems

The following aspects of stock control applicationpackages may cause problems.

a) Production control — The basic stock controlfunctions are not supplemented by anyplanning function. Therefore, any associatedmanufacturing activity is not planned orcontrolled. These functions are left to manualprocedures .or stand-alone systems.

b) Priori&control — The due-date of the ordersis assigned at there-order point (ROP) or thereview point, but the standard functions donot revise the due-date with changing events.The tendency is therefore to expedite theurgent requirements but not de-expedite thenon-urgent. This rapidly destroys any priorityfor internal or external supply orders.

c) Dependent demand —— Where anyconversion, process or treatment is carriedout on a raw material to turn it into a product,then the demand for that raw material isdependent on the requirement for theproduct. It is therefore unnecessary toforecast the raw material demand.

Companies that do so run the risk of a changein product requirement pattern causingshortage or excess of the raw material.

d) Ztemparameters — Each item is replenishedaccording to certain key parameters, forexample, lead time, order quantity, safetystock, forecast mean, trend and seasonality.Maintaining all these parameters is a majortask that is often overlooked, with the resultthat external information is not incorporated.System calculated parameters also needto be examined frequently to ensure theassumptions within the calculations arecorrect.

e) Forecasting — Predicting future usage onthe basis of past history will never be perfect.It should be supplemented by extrinsicknowledge that is industry trends, marketingplans, etc. However, sophisticated systemscan vary the calculation according to thepattern of demand, for example, steady,lumpy, rising or falling trend. This may bedone automatically or by user decision. Usersshould ensure that demand pattern changesare identified as early as possible andappropriate action is taken.

5.3 Manufacturing Resource Planning .(MRP 11)Application Packages

5.3.1 General

Application packages for manufacturing resourceplanning (MRP II) are, almost without exception, madeup of a number of modules that are selected to suit thespecifrc environment in which they are to be used. Themajor modules are listed in annex B. However, totalsystems can often also link to modules such as financialledgers, computer aided design (CAD), computer aidedmanufacturing (CAM), payroll, distribution, automatedguided vehicles (AGV) control, contract costing, salesorder processing and shop-floor data collections thatare outside the scope of this standard.

5.3.2 Major Functions

Application packages for MRP U enable users to planand control the materials, people and machines in acompany at three or four levels. Users maintaindatabases of information on the parts, the bills ofmaterial, the routeings, the work centres and thevendors. There are facilities to plarvthe major resourcesof the company and to master schedule the existing orforecast orders well into the future. When these ordersand resources are in balance the material requirementsplan is generated, giving recommendations on ordersthat should be placed, amended or cancelled at allplanning levels of the bill of material (B”OM).

1S 15446 (Part 6) :2004

Manufacturing orders are then routed through thefactory to generate work-to-lists and capacity loading.Purchase orders may be placed and tracked. Materialsimd manufacturing order movements are recorded andthe plan at each level is kept valid by feedback ofinformation and management action.

S.3.3 Application Areas

MRP 11packages have been used successfully in a verybroad range of manufacturing business ranging frompure process type, through high volume repetitive tojob shop and design-to-order businesses. The standardcore system modules are listed in Annex B. They maybe supplemented to suit particular environments. Eachmodule should have alternative options that .errable itto be used effectively in virtually any market ormanufacturing styple.

5.3.4 Possible Problems

Despite its widespread acceptance as the standardapproach to planning and control of manufacturing,alarmingly few of the implementations realize their fullpotential to help the company achieve its strategicobjectives and some do not even repay theirinvestment. It is therefore, important to examinecarefu Ily the problem areas and reason for failure toensure that mistakes are not repeated and that animplementation produces maximum benefits. Somecommon difficulties are as follows:

a)

b)

Capacity control — Because the standard‘back schedule to infinite capacity’assumption is used by MRP II systems, usersmay be tempted to overload the factory. Thisshould be avoided by proper use of the masterproduction schedule (MPS)/rough-cut-capacity planning (RCCP) modules whichplan resources in the longer term and validateforecast input and order intake. Short-termcontention may still occur, but can be reducedby use .of capacity requirements planning(-CRP) to smooth the load or tore-routeproblem orders.

Data accuracy — The most common causeof poor performance is that the data in thesystem are insufficiently accurate to persuadeusers to believe in what they see presentedon the visual display unit (VDU). An audit ofstock balances, routeings and live ordersshould be carried out before the system isintroduced and corrective action programmedput in hand. The main system should not berun until the following minimum standardsare attained:

i) inventory accuracy >95 percent;

c)

d)

e)

f)

ii) BOM accuracy >98 percent

iii) routeing accuracy >98 percent

Overdue orders — Any order not completedon time is deemed to be overdue. Such ordersfall into backlog on the resource and capacityplans. As a result the priority of ordersbecomes confused, particularly when someoverdues.are no longer live (if, for example,the vendor considers 90 percent is completedor the shop-floor has scrapped the last 5percent). Overdue orders should be checkedregularly, and if live, re-dated to a real futuredate that is achievable.

Expediting — Some expediting will alwaysbe needed in the real world to maintaineddelivery schedules. However manycompanies expedite for the wrong reasons (forexample, the operator to select the easy orders,the foreman to keep his men busy, themanager to achieve high shop efficiency,directors to meet non-business objectives).The only valid expediting is that necessary tomaintain the work-to-list priorities; all othersshould be strongly discouraged.

Complexity — A full function MRP II systemoffers a staggering number of options andparameters. lt can also encourage designengineers to input an as-designed BOM ratherthan the as-produced. Likewise planningengineers may over-complicate the routeings.All elements of added complexity requireextra feedback and maintenance activity.Often this is not worthwhile and is not donesatisfactorily, thus bringing the system intodisrepute. Users should aim for the simplestsolution that,meets their needs.

Function frequency — The major functions,for example, reviewing the MPS, runningMRP and revising the work-to-lists, shouldbe done at a frequency to suit the business.Typically this means MPS review monthly,MRP nightty and work-to-list hourly or in realtime. Frsst moving environments may needMPS and MRP more frequently. Users andsystems operators should be educated tounderstand and plan how to meet thenecessary frequency.

5.4 Finite Capacity Scheduling Application Packages

5.4.1 General

Applications for finite capacity planning are usuallyprovided as complete packages running on a personalcomputer or workstation that interlines tomanufacturing control and shop-floor data collect ion

IS 15446 (Part 6) :2004

systems. Use of a personal computer provideshighly interactive, graphica] environment whichscheduling/planning function requires.

5.4.2 Major Functions

thethe

These applications enable users to control, cma minute-by-m inute basis, the allocation of jobs and operatorsto machines, thereby permitting a plan of short-termworkshop activity to be created. Users maintain adatabase of individual resources, resource groupingsand characteristics, shift patterns and non-worked days.The package produces a schedule that maybe passedback to the production control system and/or issued in(he form of work-to-lists, to machine operators on shopsupervision. The main functions of the scheduler are:

a) an electronic planning board using a computergraphics system;

b) an ability to communicate with othercomputer systems;

c) a database to store shift patterns, resourcedata, etc;

d) an ability to schedule operationsautomatically to pre-defined criteri% and

e) an ability to manipulate the plan manually.

5.4.3 Application Areas

This type of package is suitable for companies in awide range of manufacturing environments, includingjobbing, process industry, batch and mass production.However, different suppliers’ packages are focused ondifferent industries and this will be reflected in thefacilities offered.

5.4.4 Possible Problems

The following aspects of MRP 11application packagesmay cause problems.

a)

b)

c)

Flexibility — The scheduling package shouldbe capable of dealing with the specialconstraints of the company’s method ofoperation;

Accuracy — The scheduling package shouldbe capable of reflecting the true position ofshop-floor operations. The scheduler needsaccurate, up-to-date information to makevalid decision on job allocation. These dataare best obtained from a shop-floor datacollection or machine monitoring system;and

Horizons — The horizon for a finitescheduling package should be relatively short,say one week. Extended horizons make it verydifficult to synchronize material supplies. Theschedule will also tend to become unstable.

6 BESPOKE SYSTEMS

6.1 General

6.1.1 Companies often find that the standard packagesavailable do not fully meetthe full range of functionsthey believe they require. If this is so they should decidewhether to compromise on their needs, tailor thepackage or build their own bespoke system. Thedecision has major implications in terms of cost, timeand usability and should therefore be taken after carefulconsideration of all the facts and by using specialistoutside skills to supplement in-company knowledgewhere necessary.

6.1.2 The standard package option is always the fastestand cheapest and will generally provide many of thecore functions. As a rule of thumb it is recommendedthat if a significant proportion of the functions arepresent then tailoring is the best solution. However, if”several essential functions are absent, “then bespokesystem development is indicated.

6.2 Full System Development

6.2.1 This solution will take time (one to three years)and a considerable degree of user involvement and wiIIbe~xpensive. It will consist of a phased developmentcovering the following typical stages.

a)

b)

c)

d)

e)

f)

!3)

Computer systems design — converting thefunctional requirements specification intodatabase and system specifications coveringreports, screens, file updates and datamaintenance;

Technical specl~ication — based on thecomputer system design, making a decisionon the technical environment in which theprogrammed will run (database, developmentlanguage, on-line teleprocessing, networkingetc);

Programme and system test — converting thecomputer system design into a computerprogramme based on decisions made in thetechnical specification and testing individualmodules;

User acceptance test — testing the WI1OICsystem with real dat~

Installation — loading the programmed andlive data, initializing the system, trainingusers, running parallel and going live;

Evaluation — comparing results with thoserequired and tuning both the technical andfunctional performance; and

Maintenance — changing functionality tomeet new needs.

6.2.2 A major requirement for the successful outcome

6

IS 15446 (Part 6) :2004

from the development is strong, final result orientated,project management to control budgets, tirnescales anduser expectation.

6.3 Tailoring Standard Packages

6.3.1 Most companies will have their own needs forthe form of the data presented on a VDU or report andin the way they want it laid out. For instance thefollowing information may be displayed together withthe user field name:

a) Company specific headings, titles and fieldnames may be required;

b) Some compan ifs may wish to have a fieldsuch as cost displayed, others may not;

c) Dates may be required in one of manyformats; and

d) The result of calculations on database.

6.3.2 Changes of these types maybe accomplished bythe following different methods:

a) ,Vourcc code umendment — This type ofchange may be made by the user only if thesource code is available and the user is skilledin the programm ing techniques and languageused. This .is the subject of bespokeamendments and is not usually termedtailoring. It should not be attempted withoutcareful system planning and control (see 9.5);

b) Fourth generation language {4GL) — 4GLsare becoming increasingly user friendly andcan provide a very high degree of screen andreport output in the format required by theuser. However the ease and flexibility of useare very dependent both on the 4GL and onthe database structure of the main productioncontrol software. A high level of user trainingmay be required to use the advanced tailoringavailable. New applications developed with4GLs are likely to need full bespoke systemmanagement techniques; and

c) ,Tcrcen/reporl generator — Manymanufacturing planning and control packagesinclude a facility for amendment of the screensand reports of the standard system. Theflexibility will depend on the particularpackage and should be checked by users forthe presence of functions to achieve the degreeof tailoring they require. They maybe used bycompany staff trained by the software vendorbut changes should be documented andmonitored by the system department.

6.4 Advantages and Disadvantages of BespokeSystems

6.4.1 The obvious advantage of a bespoke system is

that it should deliver exactly what the user needs to dothe job. The obvious disadvantage is that it takes time,people and money. A bespoke system can be justilledif it does provide the correct solution. Experienceshows that there are many pitfalls and that manybespoke systems fail to provide the answer to realproblems of the company and overrun on lime and cost.Examples of the hazards include the following:

a)

b)

c)

d)

e)

f)

!3)

h)

j)k)

m)

n)

P)

Incorrect understanding afthe real problems;

Computerizing old procedures, not newneeds;

Trying to automate human judgementfunctions;

Not subdividing activities sufficiently toenable them to be controlled;

Under-resourcing the project (in volume andquality);

Changing requirement after FRS;

Allowing timescales and budgets to slipwithout investigation and corrective action;

Poor documentation;

Incomplete testing;

Inadequate user education and training;

Lack of qualitative and quantitativeevaluation;

Poor modification control; and

Lack of senior management commitment.

6.4.2 Nevertheless, bespoke projects that are wellmanaged can provide outstanding benefits providingthe critical factors of time, cost and effectiveness areuppermost in the project manager’s mind.

7 SYSTEM SELECTION AND JUSTIFICATION

7.1 General

Assure ing the feasibility study has recommended theuse of a computerized production control system, thesystem required should now be found and the businesscase approved.

7.2 Software Evaluation

7.2.1 The FRS will be used as the evaluation yardstickfor software. Because the FRS will be long andcomplex, a checklist of all the features in prioritysequence should be created and agreed. This list shouldhave cut-off lines drawn through it between the $,essential functions, the desirable functions, and theattract ive features, As a starting point this one pagelist can be used to begin the elimination process.However, since functional requirements are p+~(lle ;of three major selection criteria, the checklist shouldbe a composite of the specifications from the FRS,hardware and software requirements identified in 4.6

7

IS 15446 (Part 6) :2004

and 4.7 (including the communication issues) and thecost/return-on-investment specifications. Therefore, ifMRP 11is an essential requirement for the functionality,but the total system cost has to be under f250 000 andbe on an open operating system (and these are alsoessentials) the requirements of the FRS areconsiderably limited by the other two requirements. Aconsolidilt~d requirements list like this can be generatedby the company through its own resources or producedon the company’s behalf by a third party professionalconsultancy team.

7.2.2 Aiter the initial elimination list has been-producedthe products to be evaluated should be found. Forproduction control software the problem will be oneof choosing tiom a large list of options. Sources ofinformation on software availability can be obtaineddirectly from the major “hardware vendors, from themajor software houses and from trade shows.

7.2.3 Once a.short list of software has been agreed it isnow time to inspect each in detail against the originalfind full functional specification. Final selection willthen be based on further additional criteria such as thefollowing:

a)

b)

c)

d)

e)

t)

~)t])

j)k)

m)

n)

Feature availability;

Fit to specificati~n;

Crmsultancy and training availability;

Maintenance cost and availability;

Software stability and availability;

Ability to communicate with other systems;

Ability to expand;

On-going commitment from vendor fordevelopment;

Ease of use;

Response-time;

Similarity to present system; and

Price.

7.3 Hiirdware Evaluation

Further qualification of the system will relate to the

following:

a)b)

c)

d)

c?)

1‘)

1:,)

Hiu-dware resilience;

Modern architecture;

Number of concurrent terminals supported;

Sufficient main store for the number of partsand structures being commonly used;

Filst search cilpabilities;

Sufficient mass storage; and

Stage of its product life cycle.

‘?.4~.’t~{~!!i~uilici}tit}nAspects

1 he functional specification will have indicated the

8

other application areas of the business with which theproduction control system has to communicate and howthe communication should take place, that is manual,batch interface or on-line. Batch and on-line facilitiesfor communication with other hardware and softwareimplies the need for local area networks utilizing themost prominent of the emerging standards.Communication between different vendors’ hardwareusing third party software is otien difticult and, therefore,expensive. If communication (especially on-tine) is orwill be important to the installation,compatible hardwareand software should be chosen at the beginning wherepossible, to avoid major expense.

7.5 Justification

In order to justify the cost of any system, the presentcosts should be known, quantified and documented.Projections on cost savings from that point can thenbe made and verified when the time comes. One of thebiggest mistakes made in the cost justification processis to fail to quantify the present costs. These costsshould be identified in measurable terms and the samemeasures applied after implementation. Additionally,the benefits of the new system should be expressed inmeasurable terms which implies that before anyimplementation takes place it should be known whatthe benefitsought to be and how to measure them.

8 1MPLEMENTATION

8.1 General

8.1.1 There are two phases in implementation. The-tirstis the installation phase comprising the installation ofhardware, software, communications and the accom-plishment of basic training to allow the new system tobe cetiified ready for use. The second and far morediftlcult phaseis the assimilation of the new system intothe daily use and routine so that it becomes a valuable,effective and successful business investment. Planningfor installation only will not provide the full benefitidentified in thejustification exercise. It should theretbrebe planned as the first step or major task in the overallimplementation of the business system. Taking this long-term view keeps the installation phase in context, showsits relationship to future implementation activities imdhelps to prevent the loss of key people to the project atthe finish of installation.

8.1.2 However, the installation has to be successfuland be seen to be successful to allow fullimplementation to take place. The installation step isdescribed in detail in 8.2 to 8.5.

8.2 Strategic Approach

8.2.1 Ttlere are gencraliy lhree ways to install thesoftware system.

IS 15446 (Part 6) :2004

a)

b)

c)

Parallel run — This technique is used whenan existing system is being replaced. The newand old systems are run in parallel during aspecified change-over period to gainexperience and confidence in the new systembefore the old one is removed. The drawbackto this procedure is the problem of trying tokeep two systems exactly aligned. If one isout of phase with the other then there is alwaysthe problem of which one is current and whichone should be used. This can be twice thework for all people involved,.both end usersand data processing personnel;

S/ep-h.v-.step — This technique is used whenportions of the business.can be moved acrossto the new system one part at a time. Anexample might be the installation of a centralsales order processing system to replace aconglomeration of five or six differentsystems used at various factory locations. ByIn.oving the low volume sites across first andgaining confidence and experience, the largevolume sites can covert later after greaterknowledge and skill has been acquired. Also,since each site is being moved acrosssequentially by the same data processingteam, both the end users and installation teamcan pace themselves to allow forunanticipated problems and learning curve;and

Big bang — This technique is used whenspace and cost are paramount. The old systemis removed and the new system installed andcommissioned over a weekend, holiday or

,shut down period. It is usually a high risk planbecause failure of the new system to performto the set standards directly impacts thebusiness since there is no fall-back capabilityavailable. However, this may be the onlyalternative for new factories or green fieldsites.

8.3 Project Team

8.3. I The project team should be managed by adedicated manager from the production controlfunction. His mission is to first establish the installationobjectives in measurable terms, get proper projectplanning in place, agree proper resourcing, get aninstallation budget, establish the training requirementand trilining schedule, get all these points agreed bySW]ior management, and then review progress and takeappropriate action where necessary.

8.3.2 To assist in this task the project manager willneed project team members from several areas of thebusiness as follows:

a)

b)

c)

d)

e)

0

g)h)

End users of the production controldepartment;

Production control middle management;

Data processing staff and middlemanagement;

Liaison members from sales/nlarketing,finance, manufacturing, distribution, iln(f

engineering;

In-house or third party education and traininginstructors;

Quality control;

Technical authors; and

Software/hardware vendor project manager.

8.4 Project Control

8.4.1 The objectives, timescales and costs for theinstallation have to be agreed with senior managementat the outset. This requires the following items:

a) An objectives sheet set out in measurableterms which will be used as benchmarks inthe final audit;

b) A budget for hternal and external costs; and

c) A fully documented project plan showing allthe activities required and their dependencies,the time frame and resourcing (by name) foreach activity and an achievable end date.

8.4,2 Once these plans are agreed it is the job of Iheproject manager to manage theinstal]ation on a dailybasis, with total dedication to the task by having allother responsibilities removed and reallocated toothers. Without this level of commitment the projectwill not be seen to be important and will consequentlynot achieve its objectives. Project management requiresperiodic reviews at the working level, middlemanagement level and senior management level. Thesereviews need to include the vendor project managerand all actions should be minuted and followed up.

8.5 Education and Training

8.5,1 One of the major activities to be identified andaccomplished during installation is the training of allthose involved. This should take place at three levelsand.the appropriate time, follow-up and budget shouldbe allocated. The three levels are as follows:

a) End user — This is where practical trainingof all end users takes place. It should contilin

an introduction from their seniormanagement, an overview of the totalimplementation plan and.objectives showingbenefits, as well as extensive hands-ontraining sessions where all objections arehandled, negative reactions neutralized and aclear understand ing of the system gained;

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b) Middle management — The emphasis here ison how the system works in support of theirindividual management tasks. It is both aselling and learning course with the emphasison functional capability showing new/bettertechniques for doing the job; and

c) Senior management — This should be a shortsharp selling course on how the system fits inand supports the other business systems, whatthe major benefits are, the return oninvestment expected and a demonstration ofits major or most competitive functions.

9 ON-GOING OPERATION OF COMPUTERAIDED PRODUCTION MANAGEMENT (CAPM)

9.1 General

9.1.1 A well planned and executed implementationshould mean that after project completion the newsystcm will operate as planned for several monthswithout adjustment. However, managers will be aware[hat business conditions change rapidly as well as staff,products and processes. It is, therefore, vital that allaspects ofthe computer aided production management(CAPM ) systems are regularly reviewed to ensure thatthey are continuing to meet the top level objectives ofIhe business, that forthcoming threats and opportunitiesfire identified and that the appropriate actions are takento minimize risk and maximize benefit.

9.1.2 Because of the integrated nature of computersystems, each item of data in the system is used byseveral department and is open to enquiry by all. It isrecommended, therefore, that at some operationalIneeting (typically the master schedule meeting, wheremost departments will be involved in agreeing theiilanu facturing contract for the coming periods), thereshould be a review of the top level business measures,(hat might include the following:

a) Customer due-date performance (percentageof complete orders shipped within one day,early or late of plan);

b) Percentage of warranty claims;

c) Stock turns;

d) Percentage of waste in factory (includingyield, scrap, obsolescence, rework); and

e) Profit against plan.

9.I.3 Forthcoming challenges might include thetollowing:

a) Introduction of a new product;

b) Introduction of a new machine or process;

c) Major swing in product mix;

d) Recruitment of a new staff member who willbe a key user of the system;

e) Promotion of existing staff to positions wherethey will use new functions of the system;

f) Planned software improvements;

g) Planned hardware changes; and

h) Possible power cuts.

9.1.4 Any of these or similar types of potentialproblems or any significant deviation from theperformance indicators should have a plan of actionagreed as a matter of priority.

9.1.5 There are a number of issues which affect theongoing operation of any system. These will beexamined in detail in 9.2 to 9.7.

9.2 User Implications

9.2.1 General

CAPM systems are people-driven decision systems,supported by computer based information processingfacilities. The ultimate factory-of-the-future operatedentirely by computer and robot is a concept that is muchtalked of but has not yet been achieved in any.but {hesimplest forms. Some of the most vital ingredients inthe ongoing success of a total system are, therefore,the commitment and retraining of staff and theirpreparedness for continuous improvements towardsju$-in-time(JIT) manufacturing.

9.2.2 User Commitment

9.2.2.1 During implementation user commitment willhave been a major task for the company management,The project communication links should be maintained,the focus being changed from the completion ofactivities to the attainment of business objectives.These should be the top level company objectives. Thelatter are likely to achieve false local optima only, forexample, local productivity bonuses tend to generateoutput, not saleable throughput from the factory andmeasuring buyers by price variance leads to cheapbuying but poor quality and delivery performance.

9.2.2.2 These high level measures are less directlyaffected by individual effort, more by teamwork. Thecommunication programme should therefore aim togenerate the motivation to work as a team and createthe understanding that the team is only as strong as itsweakest link.

9.2.2.3 If a bonus scheme is thought necessary then itshould be linked into a high level measure, ideallyannual profits. However, the communicationprogramme should then spend more effort to create anunderstanding of the other market and financial factorsthat can have a major impact on the profit figure.

9.2.2.4 The commitment demonstrated by the seniormanagers is critical. Nothing will destroy a well

10

planned and implemented production control systemfaster than a manager who w ilful Iy ignores one of thepolicy rules that he has agreed. The master scheduleestablishes all other schedules in the factory and if acuston)cr is so important that an order has to be pushed~Ilrougll. then top management should be seen to agreethe new master schedule and the consequences on allother orders in the system.

9.2.3 User Retraining

9.2.3.1 Education and training are stressed as majorsuccess indicators in 8. lt is therefore important thatany new person coming into the company should beeducated and trained to a similar standard.

9.2.3.2 For people who are moved within the companythe need for education and retraining is less obviousnnd more frequently omitted. It is important to realizethat such a person’s attitudes to his new role may haveheen formed before the introduction of the new systemand thai he will require the same education and trainingas any other new person to enable him to work withthe team.

9.2.3.3 As in 8, it is again important to stress thedi ITerence between education and training.

a) Education involves generating awareness ofthe underlying principles that drive thesystem, understanding of the key policieswhich staff need to observe to run the systemsuccessfully and commitment to use theinformation to make decisions to maximizethe company’s benefit.

b) Training involves instructing users of thesystem to follow the standard operatingprocedures and on the actions necessary whenproblems arise.

9.2.3.4 The other key aspect of user retraining is thatsystems do not stand sti11;they evolve and develop.Changes and additions will be made to the computerand manual parts of the system. Likewise there will bechanges in the company targets: For any major or minorchange i! is vital to educate and retrain the users directlyinvolved and to ensure that other staffs are keptinformed. Examples of such change might be linkinglhe sales order processing system with themanufacturing system or using an MRP 11implementation as the start of a JIT continuousimprovement programme.

9.3 Computer Operations

9.3.1 Depending on the size of the system and itscomplex ity, the operation of the system on a daily basiswill require anything from minimal attention, that isstart up and shut down, to dedicated data processing

1S 15446 (Part 6) :2004

professionals devoted .to the smooth operation, of thewhole information technology environment.

9.3.2 For fault free operation, care has to be taken 10have the correct levels of experienced personnelavailable especially during periods outside normalhours, that is nights and weekends. Such personnelshould initially be trained by the hardware vendor aspart of the installation project to ensure the adherenceto good practice, especial Iy in the areas of security,backup, archiving and maintenance. Alternatively thereare firms that offer a computer operation service.

9.4 Hardware Maintenance

Hardware maintenance is usually contractually agreedwith the vendor and provides for periodic preventativemaintenance, optional advice, guidance and upgradeservice, plus breakdown call-out service. Themaintenance may be provided directly t)y the vendoror through an authorized third party.

9.5 Software Maintenarrce

9.5.1 The arrangements for the maintenance ofsoftware are similar to those for the maintenance ofhardware with the added complication of support formodifications if they have been applied. Maintenanceof application software is an important considerationfor all user companies for three main reasons.

a)

b)

c)

11

It should be appreciated that in any soltwareof significant complexity there are likely tobe logical inconsistencies (bugs). Despiteexhaustive testing procedures some wil I beundiscovered and may cause erroneous-resu Itsor even system failure (crash).

Most vendors provide a general purposesoflware product with a range of inquiry andreporting capabilities. If, from this selectionof screens and reports, the specificinformation needed for the business is notavailable or awkwardly presented, thedecision may be made to modify the screensand reports to suit. Usually no extension tothe normal maintenance agreement is neededin this case since only the output format isaltered. Furthermore, as operating experiencegrows, the software vendor is likely todevelop additional features and improvedroutines that will speed up processing andprovide extra functions. New peripherals,communications or hardware requirementsmay also cause software modi tlcations.

As business requirements or trade regulationschange, a user may find that extra functionsare required and may decide for these or otherreasons to modify the source code, either

IS 15446 (Part 6) :2004

using his own resources, those of the vendoror those of a third party. The extent to whichthis complicates support depends on whetherthe changes arc driven by a single user ormtiny users (a user group). When many usersrequest an enhancement a software vendorwill often develop the new facilities required.However, when the changes are driven by oneuser only maintenance will have to becarefully negotiated with the vendor sincechanges to the source code can render thesoftware unusable or unsupportable if poorlydone. Unless the changes can be covered bya bespoke enhancement arrangement, thevendor wi IIonly support the standard sourcecode and let the user worry about supportingthe changes. If the changes are extensive thevendor may no longer support any of theproduct except by such a special arrangement.In those cases, usually the party thatundertook the modifications will also supportthem as pall of the arrangement. Customizing,as it is called, should be done with reasonablyadvice and guidance from the owner of thesoftware to allow the modifications to beeasily included in any future upgrades of thesoftware, the operating system, or thedatabase management system.

9.5.2 It 10IIows from 9.5.1 (a) to (c) that the agreementfor software maintenance should be formal andcontractual. It should normally be with the originalvendor, but in some cases it can be with a reputablesoftware house that is allowed access to the sourcecode. LJsermaintenance is not recommended withoutcareful consideration of all the implications (it isestinwted that 80 percent of data processing budgetsare spent on maintenance).

9.5.3 Software maintenance agreements typically cost10 percent to 15 percent of the software purchase priceper annum. For this a user might expect the followingservices:

a) A bug fixing service;

b) A help desk for user application queries;

c) Hotline support for operating problems;

d) Free version updates with appropriatedocumentation; and

e) Membership ot’a user group.

9.5.4 The help desk and hotline services are normallyduring office hours and 24 h service would be an extracharge. A number of consultancy days per year mayalso be included, but arc normally charged as extra.

9.5.5 The vendor’s version update policy should beclearly stated. ~Jpdatcs should be at regular but

infrequent intervals, perhaps every 6, 9 or 12 monlhs.They should be announced before hand with anindication of the new features and functionality, so thatusers can prepare for implementation. Old versions willnot normally be supported for more than a few monthsafter the new version is shipped.

9.6 Contingency Planning

In particularly sensitive environments, the best way tohave 100 percent reliability is to run a duplicate backupsystem. Since this level of expense and contingency isnot always necessary, normal planning calls for thefollowing action:

a)

b)

c)

Backup copies of all work taken on a periodicbasis depending on volume of work butusually at least once a day;

Backup stored in a safe fireproof place usuallyoutside the computer centre area andpreferably in a security vault; and

Emergency computer usage agreement withthe vendor or other s’b..itablethird party usingthe same equipment and configuration.

9.7 Security

9.7.1 All of the procedures described for contingencyplanning in 9.6 are also appropriate for the preventionof accidental loss of information. However, wheredeliberate tampering or possible theft of informationis to be prevented, additional measures need to betaken.

9.7.2 The possible tampering and theft by outsiders canbe minimized by careful application of the securitymeasures built into the computer operating system. 1fthis is a requirement for the business when choosingthe system it should be included in the list of essentialrequirements when evaluating the software ilndoperating system. The security features operate in twoways, first, by setting functional parameters which onlyallow certain terminals to access certain information (forexample only the personnel department can access salaryinformation) and/or by setting certain terminals torespond only to queries and not allow input of datii toprevent tampering; secondly, the opt?iratingsystem canbe set to allow access only by authorized individualsthrough the use of a password. This password whentyped in will not appear on the screen to preventunauthorized people seeing it and it should beperiodically and conscientiously changed and protcctecl.

10 FUTURE TRENDS

!0.1 Computer Integrated Manufacturing (Cl M)and the Information Systems Strategy

10.1.1 In 4.1 it is stated that the strategies that have to

12

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be in place, agreed and understood to drive a successfulbusiness are the marketing strategy, the businessstrategy and the information technology strategy. Theevolution of the information technology strategy thatistaking place formanufacturin gcompaniestoday isan extension of the management information system(MIS) concept to include computer integratedmanufacturing (CIM). The implementation of CIMcanno( be done completely without the proper linksinto the other business functions such as finance, sales/marketing, customer service, research anddevelopment and commercial/legal systems.Furthermore, there is a need to provide managementIcvel summarized and graphically displayedinformation to all senior management utilizing thesame il~iudmadl ine interface (MM 1) capability. Thetrend is, therefore, for CIM to link together databasesof information where each is servicing a major businessdiscipline and utilize oftlce systems to provide acrossthe coin pany MIS or sen ior management extracts fromthese communicating databases.

10.1.2 The major stumbling blocks to thestraightforward implementation of these concepts areas follows:

a) Lack of agreed communication standards; and

b) Lack of non-keyboard oriented input/communication with the computer systems.

10.1.3 As the pressure for reduced manufacturingdevelopment-to-delivery lead time, better quality andgreater Ilex ibiIity in product configuration continues10 increase these barriers will be overcome.

10.2 Hardware and Network Developments

10.2.1 All signs in the industry point to computerhardware that will be smaller, cheaper, faster and better.Tl)c implication for the user is that capacity becomesless and less of a problem as the size and price comedown and the reliability goes up. Also, cheaper andfaster computers will start to be used in what werepreviously areas of marginal or very small return oninvestmcmt simply because the cost has dropped.

10.2.2 Probably the most significant trend in thisscenario isdistributed processing, the move away fromlarge centralized databases on mainframes todistributed or departmental systems where all thebusiness systems of the department are co-located ona departmental machine. The departmental applicationsthen share data between departments using distributeddatabases interfaced to a network. There will be,ihereforc, duplicate information in the variousdepartments that is kept up to date and rnanagcd by anelwork community mfinagemc~~t system thatlll(O!’pOllliCS fulj Sccurity(:iccess controj mec!lanisms

for proper data protection.

10.2.3 it-wilj be important in this environment to makesure that old and new systems can coexist andcommunicate in this network and that systemexchanges and replacement will be transparent to thenetwork and end users. To allow this to happen and ineffect to have seamless connectivity betweendepartments a new type of data integration shoujdevojve. This process is known as the conceptualinterface, where it is the business process, not the da[a,which is being networked. The process involves theinterface and exchange of logically dependent raiherthan physically dependent information. The resultshoujd be an evolution of hardware and communitymanagement systems that can coexist with existingcomputer hardware and software developments andtake advantage of new developments by non-disruptivejy introducing them into the network.

10.2.4 Currently the biggest obstacle to communicationbetween old and new systems is the lack of agreedcommunications standards. Users wilj soon want toshare not only data between business units but alsovoice, text, image and potentially full motion videodisplays. Standards have not yet been established oragreed to allow this to happen. At present the OpenSystems Interconnect (OSj) Standard is being delinedby the International Organization for Standardization(jSO). Since it is vendor independent, the seven layermodej of the 0S1 is popujar, but even this requires thecooperation and agreement of vendors and users to bothadhere to the standards and develop future products inline with the agreed approach. Untij th is happens, dataprocessing and communications managers will haveto anticipate and plan for an evolutionary move to thenew services and faci lities that are forthcoming.

10.3 Software Developments

10.3.1 The facility that will enable the communilymanagement and network systems, described in 10.2,to function wijlbe the sot’twareenvironment. Soiiwarehas been steadily evolving over the past 2!0years fromthird generation to fourth generation and eventuallyfifth generation systems wijl be availabje. Thedifference between the three generations is importantin understanding how the emphasis on capability haschanged and ako on how it wilj be possible for thethree generations to coexist and complement each otherin a future business environment.

10.3.2 Third generation janguages jike COBOL mldBASIC are very powerful but require an expert to useproperly and derive fujl benefit in jargc complexdatabase developments. The emphasis in the thirdgeneration has been on producing logi~iil ulgorithrnsof functionality.

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10.3.3 Fourth generation languages now concentratemore on providing a sensible framework and structuretbr development. The emphasis has moved away frompure logical programming to ease of use and totalsystem logic definition. The key fourth generationinnovations have been as follows:

a) Use of a data dictionary for defining logicalrelationships;

b) Application tools for the rapid developmentof search and data manipulation capabilities;

c) Report writers (report generators);

d) Macro instruction writers for quick codewriting of straightforward logic; and

e) Relational database approaches.

10.3.4 one imposition of the fourth generationapproach has been to require full system design anddefinition before programming can begin. The totalapproach should be considered first rather than justthe logic of an individual algorithm.

10.3.S The fifth generation systems are likely to adoptthe theme of integration and facilitation. The abilityto unlock information regardless of where it residesin the network and the ability to capture and applyexp.crtise will be paramount. The fifth generationsystems will probably be knowledge basedcapabilities becoming the facilitating gateways to thenetwork. They will probably provide the followingattributes:

a) Sensible guided access to information;

b) Well developed community management;

c) Conceptual interfacing by finding the data inthe network that are needed and then settingup the data processing requirements formoving data about and hence communicatingon a logical basis; and

d) Natural language questioning and touchscresn input allowing non-structured access.to data.

10.3.6 All these developments willgreat Iyenhance theability of extant systems and applications to worktogether and achieve even greater return on the presentinvestment.

10.4 Expert Systems

10.4.1 Expert systems that can be used for decisionmaking in the manufacturing arena are evolving.Examples of their potential use are as follows.

a)

b)

c)

Configuration specl ’ficalion ftir (hemanufacture/as.wm bly ofstundard parts andcomponents 10 Jtdfii a complex cuslomerrequirement —- In essence, it will be possibleto take a request for tender and produce aproposal based on standard options with leadtimes and costs;

Decision control on the shop:jlow — Anexpert system will be avtiilable to cellcontrollers in an unmanned environment. Ifaproblem occurs its symptoms cou Id be fedautomatically to an expert systcm to providea solution or elevate the problem to the nextlevel in the shop-floor control hierarchy t’orasimilar deliberation at that level and upwardsif required until a solution is found andautomatic rescheduling takes place; and

Master scheduling modeller — This w iIIcreate a model for master scheduling orfactory scheduling using four variables:

1) Forecast;

2) Actual sales;

3) Actual and forecasted capacity; and

4) cost.

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ANNEX A

(Forewor~

DEVELOPMENT OF THE USE OF COMPUTERS IN PRODUCTION CONTROL

A-1 GENERAL

A- 1.1 Soon after the advent of electronic computers itbecame apparent that they would have a potential rolein production control. In common with many otherapplications predicted at that time there were manyobstacles to be overcome before most ideas becamepractical. In particular it can be seen with hindsightthat workers were over optimistic about the dataprocessing capacity and reliability of the earlycomputers, tried to apply erroneous theoretical logicin some areas, did not involve users and failed toidentify that the real benefits would come fromintegration of the information held within the system.

A-1.2 II is therefore useful to look briefly at the history01”the clcvelopment of computers so that we mayIladcrstand where certain ideas and concepts havecome from and avoid repeating the early errors,

A-2 COMPUTERS AS CALCULATORS

A-2. I Mat bematiw Laboratories

The early valve based computers, which were able toperform mathematical calculations rapidly albeit withvery small core memory and limited input/outputdevices, were chiefly used in mathematics laboratories.

A-2.2 operational Research (OR)

A-2.2. I With the advent of transistors, larger memories,card input, magnetic tape input and output plus slowline printers, the processing of small volumes of databecame possible.

A-2.2.2 At this time operational research (OR)activities were focused on the problems of productionand had developed formulae to express economic orderquantity (EOQ). They had also identified forecastingtools based on history that predicted future trends andscasonalily.

A-2.2.3 In addition, they were able to estimate theIikelillood OFdeviation from forecast by calculatingstandard deviation or mean absolute deviation (MAD).‘l-hisled to the concept of customer service levels whichcoLIlcibc nl~lintiiined by holcling safety stock (SS) toguard against unexpected demand.

A-2.2.4 ‘I%enew computers made these calculationseasy and fast to perform and before long it was commonto find F~ctorieswith manual reorder point (ROP) logicsystems based on EOQ, SS and lead time calculatedby computer on a periodic basis.

A-2.2.5 At the same time Fort-ester was usingcomputers to carry out time series evaluation orsimulations of the likely effect of interdependency.These showed that the dynamics of the situat ion wouldnot lead to the optimum use of stock as predicted bythe OR workers. This work was largely ignored andproduction control departments were thus busylaunching economic orders at the reorder point andeven more busy expediting the shortages of stock inorder to complete jobs.

A-3 COMPUTERS AS BATCH PROCESSORS

A-3. 1 Inventory Reeording by Batch Updates

A-3.1.1 With the development of larger memorycomputers that could store information on randomaccess disc packs it became possible to maintain thestock level by a series of daily or weekly batch updatesof the movements of parts into and out of store.

A-3.1.2 In general this was accounting department andcomputer systems department driven and requiredusers to dispose of their trusty, ever accessible, cardindex systems, for which they had responsibility andaccountability and users were instructed then to relyon periodic reports detailing order launches and stocksthat were difticult to understand and rcconci]e. Theusers’ reactions were mostly negative, resulting ininaccurate cut-off points, continued expediting and theestablishment of three stock figures:

a) A gross value maintained by accounts;

b) A theoretical figure from the computer;

c) A card index system of stock controlmaintained by the stores.

A-3.1.3 The main effect of these inventory/ROPsystems was that calculations based on incorrect dataand incorrect logic were performed faster. I’his resul~edin confused and frustrated staff (who blamed thecomputer), together with higher stocks and poorerservice levels.

A-3.2 Net, Dependent, Time Phased, Supply andDemand

A-3.2.1 In 1969 Orlicky published his seminal workon materials requirement planning (M RP). “1’hisidentified the key fault in ROP systems, namely thatthey did not take into account the dependent demandthat exists between a product and the components thatit is made of, both in the required quanti(y and timing.For components that w&-enot sold outside the system

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it was therefore not necessary to forecast the demand.This could be accurately predicted by multiplying thecomponent quantity per product from the bill ofmaterials (BOM) by the forecast sale of the productand backdating its requirement by the lead timenecessary to build the components into the product.These requirements for the product were, in addition,netted offagainst any product in stock and any productexpected from a supply order already issued. This isin fact the real logic of the shortage Iist.and it thereforeoffered a system that users could understand and usemore effectively.

A-3.2.2 [n fact, the limited computing capacity of theera meant that suggested actions could not berecalcu lilted frequently enaugh to take into accountchanges occurring in the factory and were stillbedeviled by the difficulty of maintaining a highaccuracy level of stock, BOM and routeing data.Anotherproblem was that the majority of systems weredeveloped as bespoke systems. This slowed theirintroduction but also tended to incorporate false logicdue to poor systems analysis, a misunderstanding ofthe real needs of the business or the belief that specialcircumstances applied for each company. One specificarea of debate was the scheduling technique andcapacity assumption. In a well ordered productionsystem it seemed attractive to schedule on a finitecapacity basis. .However, apart from project typeapplications, production is not determinate, but highlyvariable (as is demonstrated when a manager decidesto.rush u particular order through quickly). These pointsundermine the finite capacity assumption in all butsimple process applications.

A-3.3 On-line Enquiry Systems

A-3.3. 1 Until this stage all usable data had to comefrom the computer as printed paper (printouts). Ascomputers increased in size and power it becamepossible to attach visual display units (VDUS) to thehost computer. This enabled stores, production,inventory, control personnel to enquire on stock andwork order information. The system was still batchupdated so the information was still only correct at thetime of update, but because transaction history datawere made available it now became feasible to maintainaccurate stock data.

A-3.3.2 However, the recalculation of order dates andquantities was still a lengthy proce-ss, forcing users torely on weekly or, more usually, monthly planningruns. In addition, applications were not usuallyintegrated so that data input to the system was oftenduplicated with increased probability of error andreconci Iiation difficulties. System power also limited[he number of terminals that could be attached, thusrestricting the accessibility of information.

A-3.3.3 Nevertheless, there were many successflll MRPimplementations, particularly where stable forecastsor order patterns made resource management easy totackle.

A-4 COMPUTERS AS ON-LINE INFORMATIONSYSTEMS

A-4.1 On-line Teleprocessing and Net ChangePlanning

A-4.1.1 With regular order of magnitude improvementsin the size of computer memory, the speed ofprocessing and the amount of secondary disc storageavailable, it became possible to cater for on-linetransaction processing. This feature meant that at lastusers could have their card index information availabieon demand. .Many of the reasons t-or it~accuriilc stockbalances had thus been eliminated and, with theirincreasing number of terminals connected to thesystem, other departments shared that up-to-dateaccurate information. This policing effect could nowencourage the maintenance of data accuracy.

A-4.1.2 The software development of net changeplanning has significantly reduced the suggested actionoutput. Previously it was necessary to regenerate actionmessages for every part. Now, it is possible to replanonly those parts where a change has occurred in thesupply, demand or static data. This not only reducesoutput but also processing time so that overnight netchange calculations are now a realistic opportunity forall well sized and operated systems.

A-4.2 Modular System Integration

A-4.2.1 Increasingly it has become accepted thatmanagement and control of production can be thoughtof as a number of standard modules. A list of the mainmodules might include the following:

a)

b)

c)

d)

e)

0

g)h)

j)

Engineering data (formulations or recipes);

Inventory control;

MRP;

Purchase order control;

Works order control;

Capacity control;

Master scheduling;

Resource requirement planning;

Cost control.

A-4.2.2 Most manufacturing companies aim toencompass these facilities within their manufacturingresource planning (MRP II) system, the key conceptbehind this system being the rapid feedback of changesand.problems to ensure the maintenance ofaccurate da(aand a valid set of priorities. More and more companiesare now prepared to buy standard packages that provide

16

IS 15446 (Part 6) :2004

the major functions and where necessary incorporatespecific needs of their business by tailoring the standardprogramming code. Frequently it isonly necessary tomake the input and output suit their users needs.

A-4.2.3 The reliability and speed of modern computersand software means that at last users can pursue theirdifferent activities on the basis of a common set ofaccurate figures and valid priorities upon which theycan make sound decisions. They are controlling thesystem, rather than being controlled by it.

A-4.3 ‘Further Integration

A-4.3.1 Naturally some businesses have found itnecessary to integrate in other directions. Computersystems can now offer a wealth of optional extras suchas the following.

a) Distributed processing for multi-siteoperations;

b) Automated shop-floor data collection;

c) Repetitive or rate based planning forcompanies in high volume non-batchprocessing frequently found in just-in-time(JIT) volume manufacture;

d) Computer aided design (CAD), computeraided manufacturing (CAM), computer aidedprocess planning (CAPP) can now be linkedand feed the main part (BOM), routeings andtool information needed to plan new ormodified parts and products;

e) Electronic data interchange (EDI) with

suppliers and customers; and

~ Materials handling through automated guided

vehicles (AGV) and automatic storage andretrieval systems (AS/iW).

A-4.3.2 However, as each of these and many otheradvances become possible in a technical sense it is vitalthat their use provides the opportunity Ior a genuineimprovement in business performance. In addition, itshould be recognized that the totally automated factoryis still a dream of the future in all but the simplest cases.The variety and speed of change together with the rangeof options for correcting factory plans means thatpeople continue to be the key ingredient for a successfulmanufacturing organization. JIT manufacturing istending to reduce the necessity for detailed shop-floorcontrol. This is better left to the managers andsupervisors who can quickly react to problems as theyoccur in the most flexible and appropriate manner.secure in the knowledge that the data they are actingon is accurate, is the same as that being usecl by otherparts of the organizat ion and that they understand [helogic that led to any suggested actions the system mayoutput.

A-4.3,3 The trend of modern computer aidedproduction control systems is in fact to give peopleboth the time and information they require to do theirreal jobs, that is maintaining the competitivemanufacturing edge of the business.

17

1S 15446 (Part 6) :2004

ANNEX B

(Clauses 5.1.5,5.3.1 and5.3.3)

PRODUCTION AND INVENTORY CONTROL SOFTWARE

B-1 The major package modules and software are listedin Table 1.

B-2 Modules may also be available for the followingspecial applications:

a)

b)

c)

d)

e)

f)

@h)

j)k)

m)

n)

Business planning;

Lot traceability;

Contract management;

Estimating;

Tool management;

Engineering change control;

Distribution requirement planning;

Shop floor data collection and monitoring;

Forecasting;

CAD/CAM;

CAPP;

Direct numerical control (DNC);

P)

q)r)

s)

t)

u)

v)

w)

Statistical process control;

Finite capacity scheduling;

Maintenance management;

Automated warehousing;

Technical records;

Process control;

Project management; and

Finite element analysis.

B-3 Other modules may be available for the followingnon-manufacturing activities:

a)

b)

c)

d)

e)

o

General ledger;

Sales ledger;

Purchase ledger;

Fixed assets;

Sales order planning;

Sales analysis and forecasting; and

Payroll.

Table 1 Standard Modules and Functions

(Clause B-1)

sl Module FunctionsNo.(1) (2) (3)

i) Technical data Basic item dataBill of material structureBill of task structureCopy product structureItem where used enquiryTechnical change controlReports by single level, multi-level, summarized explosionArchive change history

ii) Inventory control Goods in receiptWorks order material issue byitem, kit, backtlushRate schedule backflushIssue to floor stockTrial kittingSubcontract material issue and receiptWorks order product receiptCustomer order shipmentUnplanned inventory movementMulti-location stock recordTransaction historyABC analysisCyclical inventory countStock quantity on-hand enquiryCustomer stock order entryCustomer special order entryCustomer order enquiryWorks order entryWorks order shortage checkWorks order enquiry

18

IS 15446 (Part 6) :2004

SI Module FunctionsNo.

(1) (2) (3)

Supply/demand reviewForecasting non-MRP itemsOrder status listingShortage reportingArchive transaction history4GL report generator

iii) Material requirements planning (MRP) Planner action reportSuggestions on screenSupply/demand review with MRP suggestions on screenTime phased pegged reportBucketed ceportRegenerative or net change reviewParameter control of filters, horizons, run type

iv) Manufacturing technical data Work centre dataRouteing data, primary, alternative, customizedCopy routeing dataTool dataProcess-tool link dataWork centre reportWork centre where used reportProcess where used reportRouteing reportProcess reportTool where used report

v) Shop floor control Scheduled routeings maintenanceReschedule ordersScheduled routeing reportSplit batch maintenanceOutput recording by works order or rate scheduleScrap recordingRework recordingLabour reportingWIP status reportsManufacturing activity reportsLabour performance reportsScrap reportsArchive manutlacturingactivity

vi) Capacity requirements planning (CRP) Capacity requirements summaryCapacity requirements detail

vii) Master production scheduling (MPS) Family structure dataCopy family structure dataFamily forecast dataExplode family forecast to productsResource dataMaster schedule routeing dataCopy master schedule routeing dataResource reportsMaster schedule routeing reportResource ‘where used’ reportMaster schedule item ‘where used’ reportMaster schedule family structure reportFamily forecast reportAvailable to promise

viii) Rough-cut capacity planning (RCCP) Resource requirements summaryResource requirements detailWhat if simulationSummary resource and routeing maintenanceResource requirements valuation

19

(Continuedfrom second cover)

1) PROGRAMMING

Businessplan

Saies orders a Customer

I

.IResources:people I

mochines Production Imoney progromme

2) ORDERING b A

, ●t

I

IPurchase Foctory I

orders ordersI

A A I

TI

? ISuppliers I

I II IL I

3) OISPATCtilNG— — 1 I!‘

•1

•1Factory

b—

CP

II

I

I.—— — -—— _ J

Key

Require merit-sFeedback

‘—- Goods flow

FIG. 1 STA~ESOFPRODUCTIONCONTROL

(Part 4): 2004 Dispatching (ship-floor control)(Part 5): 2004 The relationship between control and other management functions

Annexes A and B are for informative reference.

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This Indian Standard has been developed from Doc : No. MSD 4 (232).

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Almend No. Date of Issue Text Affected

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