SOLO Pump Australia manufactures various pumps for niche industrial applications. The company has four main pumps...

  

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SOLO Pump Australia manufactures various pumps for niche industrial applications. The company has four main pumps (imaginatively named P1, P2, P3, and P4), which are assemblies of different combinations of 5 basic components A, B, C, D, and E. The product structure (Bill of Materials) of each product is shown in Figure 1, with the number in brackets being the number of each component required per product: A(2) P1 C(2) A,B Line 1 P2 A(4) D(2) E(2) M1 7/ day C,D Line 2- Figure 1: The Bill of Material for the products. These products are manufactured by processes involving 6 machining centres (M1-6) and an assembly process as shown in Figure 2. E Line 3 Line 1 = 50 / w M2 6/ day P3 B(2) C(2) M4 7/ day Line 2 = 30/w Line 3 = 60/w M6 5/ day M3 7/ day P4 M5 4 / day B(2) D(2) E(4) Assembly 20/w Assembly (20/week) Figure 2: Manufacturing processes for the products. Components A and B are fabricated on Line 1, which involves three sequential processes on M1, M2 and M3, with a maximum capacity of 50 / week. Components C and D are fabricated on Line 2, which involves process on M4 and M5, with a maximum capacity of 30 / week. Component E is fabricated on line 3 involving a single process M6 with a maximum capacity of 60 / week. The maximum capacity for the Assembly line is 20 / week. The average production rate each machine (in parts per day) is indicated, although considerable process variability exists. Changeover times are require on individual machines when they change from one component to another. However, the assembly line is flexible and can change between different products without any loss of production time. The weekly demand for the products over the past 6 weeks is given in Table 1 (wk-1 represents last week, wk-2 the week before last and so on). P1 P2 P3 P4 WK-6 8 4 4 2 Wk -5 6 8 4 1 Unit value of the pumps are given as below: P1 P2 P3 P4 Wk -4 8 8 6 4 S/unit 700 900 1100 2000 WK -3 10 6 8 2 WK -2 4 6 6 4 Wk-1 6 8 6 1 Company scheduling tasks and policies: 1. There is ONE of each product (P1-P4) in stock. In addition, a total of 16 units of work in progress for components A, B, C, and D (four each). 2. Customer orders are delivered weekly (e.g., order comes in Monday and delivered on Friday afternoon), and no partial orders and delays are allowed. 3. The average inventory carrying cost is $200/week/finished product, and $100/week/component. 4. The average ordering cost is $100/order. 5. The principle objectives are to minimise cost and maximise profit. Purpose of the Assignment: The purpose of this assignment is to analyse the given company situation and prepare a Master Production Schedule and a Material Requirements Plan (MRP) for the given planning horizon. Assignment Task: (Please make appropriate assumptions where it is necessary after clearly stating them.) 1. Develop lot sizing and inventory policies based on the forecast demand obtained in Assignment 1 and the available production resources as given in Figure 2. Estimate the cost implications of your decision (5 marks). 2. Develop a Master Production Schedule for each product for the planning period of four weeks (10 marks). 3. By using the MPS prepared in question 2 and the provided BOM, generate the MRP for all items (15 marks). Assessment Criteria: The completed assignment should include: 1. Demonstration of lot sizing, and inventory policy (how much and when to order), and cost implications. 2. Weekly MPS for final products. 3. Weekly MRP for all items. 4. Brief discussion on the viability of your production plan (MPS and MRP) based on the forecast, and resource availability (given the capacity in Figure 2). SOLO Pump Australia manufactures various pumps for niche industrial applications. The company has four main pumps (imaginatively named P1, P2, P3, and P4), which are assemblies of different combinations of 5 basic components A, B, C, D, and E. The product structure (Bill of Materials) of each product is shown in Figure 1, with the number in brackets being the number of each component required per product: A(2) P1 C(2) A,B Line 1 P2 A(4) D(2) E(2) M1 7/ day C,D Line 2- Figure 1: The Bill of Material for the products. These products are manufactured by processes involving 6 machining centres (M1-6) and an assembly process as shown in Figure 2. E Line 3 Line 1 = 50 / w M2 6/ day P3 B(2) C(2) M4 7/ day Line 2 = 30/w Line 3 = 60/w M6 5/ day M3 7/ day P4 M5 4 / day B(2) D(2) E(4) Assembly 20/w Assembly (20/week) Figure 2: Manufacturing processes for the products. Components A and B are fabricated on Line 1, which involves three sequential processes on M1, M2 and M3, with a maximum capacity of 50 / week. Components C and D are fabricated on Line 2, which involves process on M4 and M5, with a maximum capacity of 30 / week. Component E is fabricated on line 3 involving a single process M6 with a maximum capacity of 60 / week. The maximum capacity for the Assembly line is 20 / week. The average production rate each machine (in parts per day) is indicated, although considerable process variability exists. Changeover times are require on individual machines when they change from one component to another. However, the assembly line is flexible and can change between different products without any loss of production time. The weekly demand for the products over the past 6 weeks is given in Table 1 (wk-1 represents last week, wk-2 the week before last and so on). P1 P2 P3 P4 WK-6 8 4 4 2 Wk -5 6 8 4 1 Unit value of the pumps are given as below: P1 P2 P3 P4 Wk -4 8 8 6 4 S/unit 700 900 1100 2000 WK -3 10 6 8 2 WK -2 4 6 6 4 Wk-1 6 8 6 1 Company scheduling tasks and policies: 1. There is ONE of each product (P1-P4) in stock. In addition, a total of 16 units of work in progress for components A, B, C, and D (four each). 2. Customer orders are delivered weekly (e.g., order comes in Monday and delivered on Friday afternoon), and no partial orders and delays are allowed. 3. The average inventory carrying cost is $200/week/finished product, and $100/week/component. 4. The average ordering cost is $100/order. 5. The principle objectives are to minimise cost and maximise profit. Purpose of the Assignment: The purpose of this assignment is to analyse the given company situation and prepare a Master Production Schedule and a Material Requirements Plan (MRP) for the given planning horizon. Assignment Task: (Please make appropriate assumptions where it is necessary after clearly stating them.) 1. Develop lot sizing and inventory policies based on the forecast demand obtained in Assignment 1 and the available production resources as given in Figure 2. Estimate the cost implications of your decision (5 marks). 2. Develop a Master Production Schedule for each product for the planning period of four weeks (10 marks). 3. By using the MPS prepared in question 2 and the provided BOM, generate the MRP for all items (15 marks). Assessment Criteria: The completed assignment should include: 1. Demonstration of lot sizing, and inventory policy (how much and when to order), and cost implications. 2. Weekly MPS for final products. 3. Weekly MRP for all items. 4. Brief discussion on the viability of your production plan (MPS and MRP) based on the forecast, and resource availability (given the capacity in Figure 2).