DOC

13mfg62s-PM

By Leon Carpenter,2014-04-29 03:05
13 views 0
13mfg62s-PM

    2010-4-29 3:06:00

    Insert Tab Here Unit 13Performance Measurement

    Remove this page

    Unit 13Performance Measurement Unit Introduction ........................................................................................................ 1

    Objectives ............................................................................................................. 1

    Terminology .......................................................................................................... 1 Performance Measurement........................................................................................ 2

    MRP II and Performance Measurement Integration ............................................. 3

    Performance Measurement Cycle ........................................................................ 4

    Class A Performance ............................................................................................ 6

    Data Accuracy ...................................................................................................... 8

    Performance Measurement Process Flow ............................................................ 9

    Performance Measurement Samples ................................................................. 10

    Master Production Schedule Performance ................................................... 10

    Manufacturing (MRP) Performance............................................................... 11

    Shipping Performance................................................................................... 12

    Backorder ...................................................................................................... 13

    Lead Time Violation ...................................................................................... 14

    Bill of Material Accuracy................................................................................ 15

    Routing Accuracy .......................................................................................... 16

    Component Availability by Item Planner ....................................................... 17

    Component Availability by Item Type ............................................................ 18

    Reschedule Reliability by Planner ................................................................ 19

    Lead Time Violation of Shop Orders by Planner ........................................... 20

    User-defined Performance Measurement ..................................................... 21

    User-defined Performance Ratio................................................................... 22 Performance Measurement Review ......................................................................... 23

     Table of Contents 13-i

List of Figures

    Figure 13 - 1. MRP II and Performance Measurement Integration ........................... 3 Figure 13 - 2. Performance Measurement Cycle ...................................................... 4 Figure 13 - 3. Class A Performance .......................................................................... 7 Figure 13 - 4. Data Accuracy Requirements ............................................................. 8 Figure 13 - 5. Performance Measurement Flow Chart .............................................. 9 List of Tables

    Table 13 - 1. Definition of Class A, B, C and D Users .............................................. 6 Table 13 - 2. Master Production Schedule Performance Sample Results .............. 10 Table 13 - 3. Manufacturing (MRP) Performance Sample Results ......................... 11 Table 13 - 4. Shipping Performance Sample Results ............................................. 12 Table 13 - 5. Backorder Sample Results ................................................................ 13 Table 13 - 6. Lead Time Violation Sample Results ................................................. 14 Table 13 - 7. Bill of Material Accuracy Sample Results .......................................... 15 Table 13 - 8. Routing Accuracy Sample Results ..................................................... 16 Table 13 - 9. Component Availability by Item Planner Sample Results .................. 17 Table 13 - 10. Component Availability by Item Type Sample Results .................... 18 Table 13 - 11. Reschedule Reliability by Planner Sample Results ......................... 19 Table 13 - 12. Lead Time Violation of Shop Orders by Planner Sample Results ... 20

    Table 13 - 13. User-defined Performance Measurement Sample Results .............. 21 Table 13 - 14. User-defined Performance Ratio Sample Results ........................... 22

13-ii Manufacturing WorkshopStudent Guide

Unit Introduction

    This unit covers Performance Measurement (PRF). This product helps evaluate the planning

    and execution of the various functions within manufacturing.

    Objectives

    At the end of this unit you will be able to:

    ? Define Performance Measurement’s role in the MRP II process.

    ? Define classes of performance.

    Terminology

    Use of historical data to judge operation and system Performance Measurement

    effectiveness.

    Total number of purchase orders in which the dates between Lead Time Violation

    the due date and the entered date is less than the lead time

    defined in the system.

     Performance Measurement 13-1

Performance Measurement

    BPCS Performance Measurement (PRF) uses historical transactions to develop and maintain

    26 separate measurements.

    ? 20 BPCS generated measurements

    ? 3 user-defined transaction ratios

    ? 3 ad-hoc user entered measurements

BPCS Performance Measurement does the following:

    ? Uses two budgets for each measurement

    ? Provides visibility at the warehouse, facility and/or planner level

    ? Calculates/revises actual values at user’s discretion

    ? Locks (protects) period values from further update at user’s discretion

    ? Maintains a report calendar (for example, independent of production, forecasting and

    financial calendars) specific to performance measurement

    ? Uses either actual, standard or frozen standard costs

    13-2 Manufacturing WorkshopStudent Guide

MRP II and Performance Measurement Integration

    The figure below illustrates the Manufacturing Resource Planning (MRP II) process

    highlighting Performance Measurement (PRF). This is shown at the bottom of the flow.

    Performance Measurement provides feedback information that is incorporated in improving

    the entire process.

    Business Planning

    AccountsSales PlanningOrderForecastingReceivablePlanningProcessingItemBillsMaster

    Production PlanningBill ofIResourcesMasterRough CutNProductionCapacityGeneralSchedulingVPlanningBills ofLedgerEMaterial

    CapacityNMaterial(Configurable)DepartmentsRequirementsRequirementsTPlanningPlanningWorkOCentersRRoutingsFinite ForwardYSchedulingAccountsCostPayableProductionStandardsCostActivityPurchasingActualsAccountingControl

    PerformanceMeasurement

    Figure 13 - 1. MRP II and Performance Measurement Integration

     Performance Measurement 13-3

Performance Measurement Cycle

    The role of Performance Measurement is to compare actual results to expected or desired

    results.

    PlanExecute

    Measure

    Figure 13 - 2. Performance Measurement Cycle

    13-4 Manufacturing WorkshopStudent Guide

    Factors which affect the quality of performance measurements are: ? Frequency of measurement

    ? Validity of reference data

    ? Timeliness and availability of measured results ? Understanding of the causal relationships which produce the measured results

    ? Availability of resources to measure ? Validity of actual results

    ? Recognition of actual result dependencies ? Linkage between the evaluator and the performer

     Performance Measurement 13-5

Class A Performance

    The following table outlines what is considered standard for the different stages of

    performance for manufacturing companies. Performance Measurement can be used as a

    method for measuring improvement.

    Class Performance Characteristics

    A 95% Complete closed loop system. Top management

    uses the formal system to run the business. All

    elements average 95% to 100%.

    B 80% Formal system in place but all elements are not

    working effectively. Top management approves

    but does not participate. Elements average 80%

    to 95%.

    C 70% MRP is order launching rather than planning

    priorities. Formal and informal system elements

    are not tied together. Some sub-systems not in

    place. Elements average 70% to 80%.

    D 50% Formal system not working or not in place. Poor

    data integrity. Little management involvement.

    Little user confidence in system. Elements are

    50% or below.

    Table 13 - 1 Definition of Class A, B, C and D Users

    13-6 Manufacturing WorkshopStudent Guide

Report this document

For any questions or suggestions please email
cust-service@docsford.com