CAPACITY AVAILABLE & CAPACITY REQUIRED

Hello, my dear readers. How are you today? I hope you are in good condition. In the previous entry, I had explained about capacity management. Now, I would like to continue about capacity management. Can you guess what's next?

CAPACITY AVAILABLE

⚑ The capacity of a system or resource to produce a quantity of output in a given time period.

It is affected by the following:

• Product specifications. If the product specifications change, the work content (work required to make the product) will change, thus affecting the number of units that can be produced.
• Product mix. Each products has its own work content measured in the time it takes to make the product. If the mix of products being produced changes, the total work content for the mix will change.
• Plant and equipment. This relates to the method used to make the product. If any of this value is changed then capacity of the work center plant also changes. For example a faster machine is used - the output will change.
• Work effort.  This relates to the speed or pace at which the work is done. If the workforce changes pace, perhaps producing more in a given time, the capacity will be altered.

Measuring capacity 

Unit of output If the variety of products produced at a work center or in a plant is not large, it is often possible to use unit common to all products. 

Paper mills measure capacity in tons of paper, breweries in barrels of beer, and automobile manufacturers in numbers of cars.

However, if a variety of products is made, a good common may not exist. In this case, the unit common to all products is time.

Standard time Using time-study techniques, the standard time for a job can be determined - that is, the time it would take a qualified operator working at a normal pace to do the job. It provides a yardstick measuring work content and a unit for stating capacity.

Level of capacity 

Capacity needs to be measured on at least three levels :

- Machine or individual worker

- Work center

- Plant, which can be considered as a group of different work centers.

Determining Capacity Available

There are two ways of determining the capacity available: measurement and calculation. 

Demonstrated (measured) capacity is figured from historical data. Calculated or rated capacity is based on available time, utilization, and efficiency.

Calculated or Rated capacity is based on available time, utilization and efficiency.

Rated capacity = Available time x Utilization x Efficiency

Available time 

The number of hours a work center can be used. The available time depends on the number of machines, the number of workers and the hours of operation.

Available time = Hours of operation X Number of machines X Number of working days 

Example:
A work center has 8 machines and is operated for 9 hours a day 7 days a week. What is the available time?

Available time = hours X no. machine X no. production

= 9 hours X 8 machines X 7

= 504 hours

Utilization

The available time is the maximum hours we can expect from the work center. However, it is unlikely this will be attained all the time. Downtime can occur due to machine breakdown, absenteeism, lack of material and all those problems that cause unavoidable delays. The percentage of time that the work center is active compared to the available time is called work center utilization:

UTILIZATION = HOURS ACTUALLY WORKED X 100% 

                         AVAILABLE HOURS                           

Example:
A work centre is available 60 hours but actually produced goods for 30 hours. What is the utilization of the work centre ?

30 hours X 100% = 50% 

60 hours

Efficiency 

It is possible for a work center to utilize 100 hours a week but not produce 100 standard hours of work. The workers might be working at faster pace or slower pace than the standard working pace, causing the efficiency of the work center to be more or less than 100%.

Efficiency = Actual rate production X 100%

                     Standard rate of production     

Example:
A work centre produces 300 units in a shift. The standard for that item is 205 units in a shift. What is the efficiency of the work centre?

= 300 units X 100%

    205 units

= 146.31%

Demonstrated capacity 

One way to find out the capacity of a work center is to examine the previous production records and to use that information as the available capacity of the work center. Notice that demonstrated capacity is average, not maximum, output. 

Demonstrated capacity = Total standard time 

                                         Number of period    

Total standard time = Setup time + (runtime per piece X number of unit)

Example:

Over the previous 14 weeks, a work centre produced 220, 230, 250 and 240 standard hours of work. What is the demonstrated capacity of the work centre?

= 220 + 230 + 250 + 240

    14

= 67.1 hours

CAPACITY REQUIRED (LOAD)

Capacity requirements are generated by the priority planning system and involve translating priorities, given in units of product or some common unit, into hours of work required at each work center in each time period. 

This translation takes place at each of the priority planning levels from production planning to master production scheduling to material requirements planning.

The time needed for each order is the sum of the setup time and the run time. The run time is equal to the run time per piece multiplied by the number of pieces in the order.

Load

The load on a work center is the sum of the required times for all the planned and actual orders to be run on the work center in a specified period. The steps in calculating load are as follows:

• Determine the standard hours of operation time for each planned and released order for each work center by the time period

• Add all the standard hours together for each work center in each period. The result is the total required capacity (load) on that work center for each time period of the plan.

Example:

That's all for this entry. I hope you guys gain something from this entry.
Any questions regarding this entry you can drop your questions below on the comment section. Thank you for reading 😉 

WHAT IS CAPACITY MANAGEMENT ?

Hello, my dear readers :) I hope all of you in good condition. Today, I would like to explain about Capacity Management. What is capacity management?

Definition of Capacity

·         ❤️Capacity is the amount of work that can be done at a specified time.

·         ❤️In APICS dictionary, capacity is defined as the capability of a worker, machine, work centre, plant or organization to produce output per time period.

Four types of capacity

•Capacity required is the capacity of a system or resource needed to produce the desired output in a given time period

•Capacity management is responsible for determining the capacity needed to achieve the priority plans as well as providing, monitoring, and controlling that capacity so the priority can be met.

•Capacity planning is the process of determining the resources required to meet the priority plan and the methods needed to make that capacity available.

•Capacity control is the process of monitoring production output, comparing it with capacity plans and taking corrective action when needed.

CAPACITY PLANNING 

• Involve calculating the capacity needed to achieve the priority plan and finding ways of making ways that capacity available.
• IF THE CAPACITY REQUIREMENT CANNOT BE MET, the priority plans have to be changed.

Priority plans are usually stated in units of product or some standard unit of output. Capacity can sometimes can be stated in the same units, for example, tones of steel or yards of cloth. If there is no common unit, capacity must be stated as the hours available. The priority plan must then be translated into hours available. The process of capacity planning as follows :

1. Determine the capacity available at each work center in each time period.
2. Determine the load at each work center in each period.  
3. Resolve differences between available capacity and required capacity. If possible, adjust available capacity to match the load. Otherwise, the priority plans must be changed to match the available capacity.

# This process occurs at each level in the priority planning process, varying only in the level of detail and time spans involved.

CAPACITY REQUIREMENTS PLANNING (CRP)

• Occurs at the level of the material requirements plan.

• The process of determining in detail the amount of labor and machine resources needed to achieve the required production.

• Planned orders from the MRP and open shop orders (scheduled receipts) are converted into demand for time in each work center in each time period.

• This process takes into consideration the lead times for operations and offsets the operations at work center accordingly.

• Capacity planning is the most detailed, complete, and accurate of the capacity planning techniques.

• This accuracy is most important in the immediate time periods. Because of the detail, a great amount of data and computation are required.

Inputs

Needed for a CRP are open shop orders, planned order releases, routings, time standards, lead times, and work center capacities. This information can be obtained from the following:

◾ Open order file 

Open shop order appears as a scheduled receipt on the material requirements plan. 

It is a released order for a quantity of a part to be manufactured and completed on a specific date.

It shows all relevant information such as quantities, due dates, and operations.

The open order file is a record of all the active shop orders

It can be maintained manually or as a computer file

◾ Material requirements plan

◾ Routing file 

A routing is the path that work follows from work center to work center as it completed.

Routing is specified on a route sheet or in a computer-based system, in a route file.

A routing should exist for every component manufactured & contain the following information

• Operations to be performed
• Sequence of operations
• Work centers to be used
• Possible alternated work centers
• Tooling needed at each operation 
• Standard times: setup times & run times per piece

◾ Work routing file

Composed of a number of machines or workers capable of doing the same work.

The machinery will normally be similar so there are no differences in the kind of work the machines of similar capacity could be considered work center.

A work center file contains information on the capacity and move, wait, and queue times associated with the center.

The move time is the time normally taken to move material from one workstation to another.

The wait time is the time a job is at a work center after completion and before being moved.

The queue time is the time of a job waits at a work center before being handled.

Lead time is the sum of queue, setup, run, wait and move times.

Planned order releases

Determined by the computer's MRP logic based upon the gross requirements for a particular part. They are inputs to the CRP process in assessing the total capacity required in future time periods.

That's all from me within this post. I hope you guys can understand for this entry. Till we meet in the next entry. Bye and have a nice day :)

Discuss Production Activity Control

Hello readers, i hope all of you doing well in whatever you are involved. So today, i am going to discuss about production activity control.

INTRODUCTION

Production Activity Control (PAC) is responsible to execute the master production schedule and the material requirements plan. There are some materials requirements plan authorizes PAC:-

• To release work orders to the shop for manufacturing.
• To take control of work orders and make sure they completed on time.
• To manage day-to-day activity and provide the necessary support or backup plan.

Additional info:-  Work orders meant written order from the customer providing specific or blanket authorization to the contractor to proceed with the performance. 

FUNCTION OF PAC

There are three major functions in activity controls. The  activities of the PAC system can divided into planning, implementation and controls function. 

1. Planning

- ensure that the required materials, tooling, personnel & information are available to manufacture

-to run production those elements must be complete.

-schedule start and completion dates for each shop order.

2. Implementation

-after plan it must put them in action.

-gather information needed by the shop floor 

-release order to the shop floor

3. Control

-rank the shop orders in desired priority sequences by work center.

-track the actual performance of work orders and compare with planned schedule.

-monitor & control work-in-process, lead time, and work center queues.

-report work center efficiency, operation times, order quantities and scrap.

MANUFACTURING SYSTEMS

Manufacturing process can be organized into three categories:

1. Flow manufacturing

2. Intermittent manufacturing

3. Project manufacturing

DATA REQUIREMENTS

Information needed:

-what & how much to produce

-when parts are needed so the completion date can be met

-what operation are required and how long the operation will take

-what are available capacities of the various work center are

PLANNING FILES- there are four planning file needed which are item master file,                         product structure file, routing file, and work center.

Item Master File:-

• part number, unique number assigned to a component
• part description
• manufacturing lead time
• quantity on hand
• quantity available
• allocated quantity to specified work orders
• on-orders quantities, the balance due on all outstanding orders
• lot-size quantity, the quantity normally ordered at one time

Product Structure File:- contains a list of the single-level components and quantities needed to assemble a parent.

Routing File:-

• the operations required to make the product and the sequence in which those operation are performed
• a brief description of each operation
• equipment, tools, and accessories needed for each operation
• setup times, the standard time required for setting up the equipment for each operation
• run times, the standard time required to process one unit through each operation
• lead time for each operation

Work Center File:-

• work center number
• capacity
• number of shifts worked per week
• number of machine hours per shift
• number of labor hours per shift
• efficiency
• utilization
• queue time, the average time that a job waits at the work center before work is begun
• alternate work centers, work centers that may be used as alternatives 

Control File:-

• shop order master file
• shop order number
• order quantity
• quantity completed
• quantity scrapped
• quantity of material issued to the order
• due dale, the dale the order is expected to be ahead
• priority, a value to rank the order in relation to others
• balance due, the quantity not yet completed
• cost information

Shop Order Detail File:-

• operation number
• setup hours, planned and actual
• run hours, planned and actual
• quantity reported complete at that operation
• quantity reported scrapped at that operation
• due date or lead time remaining

Q&A SESSION

Q&A SESSION!!!

Hi guys! its Q&A session, do you fell excited? . Dont be scared to answer all question. Just chill and enjoy. :)

1) below is the benefits of using full line container load (FCL) to transport the goods EXCEPT

A)  Environmental friendly

B)  Highly cost

C)  Providing reliable

2) What is the typical transit for air freight?

A)  1-2 days

B)  3-5 days

C)  7-5 days

3) what kind of transportation mode that is suitable to transport dangerous goods

A)  Air

B)  Road

C) water

4) which one of the following is the phases of order processing?

A)  Routing

B)  Sorting

C)  Documentation

  

5)

•  Order confirmation
•  Generation of internal job order

     

based on above statement, in what phase is this?

A) Picking

B) Invoicing

C) Routing

6) which of the country is the first owner of the DHL?

A) Germany

B) United Of America

C) China

DHL INFORMATION TECHNOLOGY

DHL INFORMATION TECHNOLOGY

Logistics in the technology industry is all about getting valuable products into the hands of tech-hungry consumers and businesses, before they become technically or fashionably obsolete. Outsourcing to DHL gives you the supply chain flexibility you need to keep pace with this highly dynamic marketplace.

These are some improvement made by DHL for their technology throughout the process:

DHL AUGMENTED REALITY IN THE WAREHOUSE

DHL SMART WAREHOUSE

DHL SUPPLY CHAIN INOVATION

THATS ALL FROM US, THANK YOU!!!

DHL TRANSPORTATION

DHL TRANSPORTATION

   Hi Readers! Today we are going to talk the most important topics in DHL, about the transportation. Yeah without the transportation DHL cannot run their business. Transportation is most essential things in Logistics company.

Road and Rail Freight

    DHL has a flexible, reliable and efficient overland transportation offering, including Road, Rail and Intermodal Services. We have a global capability with services operating in Europe, North Africa, Middle East, Asia Pacific and Americas.

Road and Rail Freight - Asia Pacific

Our comprehensive overland transportation service covers both domestic and international needs with door-to-door tariffs and full tracking capability.

 Less than Truck Load (LTL) 

A cost-efficient Less than Truck Load (LTL) network product, offering regularly scheduled departures to domestic and international locations.

With confirmed lead times based on origin/destination, this highly reliable door-to-door service provides connections across Asia Pacific.


• LTL road network services with regular scheduled departures

• A continuously expanding network which covers China, Vietnam, Thailand, Malaysia and Singapore, as well as cross-border activities in India and Bangladesh

• Daily frequencies between major business centers across Asia

• Palletized and non-palletized general cargo (excluding dangerous goods)

 Full Truck Load (FTL) or Part Truck Load (PTL)

A Full Truck Load (FTL) or Part Truck Load (PTL) point-to-point alternative for the movement of shipments.

It offers an extensive variety of equipment types and capacities on hand, including semi-trailer, 20ft and 40ft containers and is available for domestic and international transportation across Asia Pacific.

• Flexible and cost-efficient transport service for part and full loads

• DHL managed transport fleet

• The same standard product features available in all countries, with extended features offered locally

• A network which covers China, Vietnam, Thailand, Malaysia, Singapore, Pakistan, Bangladesh and India – and is continuously expanding

• Defined and reliable lead times based on origin/destination

• Excludes dangerous goods

Road and Rail Freight - Europe, Africa and Middle East

Our comprehensive overland transportation service comprises more than 180 road terminals in more than 50 countries, over 3,500 weekly international departures, door-to-door tariffs and full tracking capability, all supported by customs experts in more than 275 offices.


On Europe, Africa and Middle East, they also have  Less than Truck Load (LTL) and Full Truck Load (FTL) or Part Truck Load (PTL), but the special is they have Rail transport.

DHL RAILLINE-FULL CONTAINER LOAD (FCL)

    Full Container Load (FCL) rail multi-modal service available with single containers, trailers, wagon groups and block train movements.

•    Environmentally friendly, cost efficient & providing reliable and prompt connections within Europe, and connecting Asia Pacific and Europe – both west and eastbound.

• Standard loading unit: containers, trailers, wagon groups and block trains

• Pre and on-carriage, either by chassis truck or trailer (tilt or box)

• Service covering Asian origins/destinations in China, Taiwan, Japan, Korea, Vietnam, to and from Europe.

• Highly reliable connections between DHL’s regional networks in Europe and Asia

• Dedicated rail hubs in Europe and China Standardized operation from pick-up to delivery
• Secure and monitored loading and handling       
• State-of-the-art Track and Trace
• Efficient handling of transit formalities
• Regular departures between major business centers
• Defined and highly reliable door-to-door lead times
• Excludes dangerous goods

RAILCONNECT- LESS THAN CONTAINER LOADS (LTL)

Flexible, environmentally friendly Less than Container Load (LCL) rail multi-modal services that provides/offers reliable and pre-defined scheduled departures.

Fast, secure & cost efficient transportation, connecting Asia Pacific and Europe – both west and eastbound.

• Standard loading unit: pallets
• Service covering origins/destinations in China and Europe
• Regular departures between major business centers, with connections between DHL’s regional networks, via dedicated rail hubs in Europe and China
• Standardized operation from pick-up to delivery, with defined and highly reliable door-to-door lead times
• Secure and monitored loading and handling
• State-of-the-art Track and Trace
• Efficient handling of transit formalities
• Pick-up and delivery via DHL road networks
• Maximum weight per item: 1,500kg
• Maximum dimensions per item: 240cm (L) x 220cm (W) x 220cm (H)
• Excludes dangerous goods

Air Freight

AIR FORWARD is a category of products that predominately use an air mode and offers a choice in delivery speeds to best suit customer requirements.

A fast and flexible choice for moving a wide range of freight shipments from anywhere to anywhere.

• Globally available service
• Typical transit time of 3-5 days
• Cargo transportation for freight of all shapes, sizes and types – including dangerous and oversized goods
• Door-to-door, all inclusive delivery with other options available
• Freight benefits from both DHL and commercial global uplift
• A team of highly trained certified dangerous goods experts at all our locations
• Higher priority uplift versus DHL Air Economy but lower than DHL Air Priority
• Import/export customs brokerage
• End-to-end real time visibility

Ocean Freight

With our broad range of Ocean Freight products covering different equipment types and consolidation services, we ensure your cargo reaches the right place, at the right time in a cost-efficient way. We work with a spread of ocean carriers covering major carrier alliances with planned space protection from every major container port in the world to deliver reliability.

Full container loads provided by DHL ensure a reliable, safe and cost-efficient transportation from door to door globally. By using various equipment types we offer tailored solutions for all kinds of commodities.

• Capacity and space protection from and to all major ports globally
• Shipments covered by our own Bills of Lading – Danmar Lines
• A huge variety of pick-up and delivery options in any country
• Rigorous vendor selection and quality management process
• Transportation of dangerous goods
• Flexitank for non-hazardous liquid transportation
• Ocean Secure for GPS enabled tracking in real time
• Index Linked Container Contracts (ILCC) that align customer rates with market dynamics
• Dedicated customs experts throughout the DHL network
• All shipments and orders can be tracked 24/7 via the internet
• Green Danmar: option to select a more carbon efficient carrier that best fits customer operational needs.

HOW DHL MANAGED TRANSPORT :

DHL OUTBOUND TRANSPORTATION

THATS ALL FOR TODAY! SEE YOU SOON READERS!