LEAD TIME & PRODUCTION SCHEDULING CALCULATIONS
Sharing my expertise of what had been learnt in the process of manufacturing about "Calculation of Lead Time for Production Scheduling. How?"
A master production schedule is used to implement a production plan. The production schedule determines what will be produced, the quantity to be produced, and when the output will be produced. While a production plan addresses quantities to be produced during particular time periods on the basis of sales forecasts and customer orders, a production schedule determines the specific dates on which the product quantities will be produced. To ensure that manufacturing capacity is available to accommodate the requirements of the production schedule, capacity requirement planning is conducted. A bill of material is then created to list each component of the product structure as is a routing that describes the work flow within a plant. Lead times are then calculated based on the bills of material and routing.
The seven main points for Calculating the Lead Time and Production Scheduling are as follows:
STEP - 1. Create a bill of materials (BOM) for the end product and calculate the number of units required for each article in the BOM. This list may refer to materials, assemblies and components required to produce the end product.
STEP - 2. Calculate the time period between the material order date and the delivery date for each item in the bill of materials. This time period should be determined in light of the vendor’s raw material requisition, manufacture and transportation times as well as the calendar work weeks of both Organization and that of vendor or sub-contractor. This time period is referred to as a materials lead time.
STEP - 3. Identify the material or item mentioned in the bill of material with the greatest lead time. Review the lead times for each material in the bill of material as determined in Step – 2 to identify the item with the greatest material lead time.
STEP - 4. Review the production schedule to determine specific dates and times between which the product quantities will be produced. This time period will yield the number of days and hours that required to the produce a product and this number of days which should be adapted to your Organization’s work week to accommodate weekends and holidays, is the production operations lead time.
STEP - 5. Calculate the administrative lead time and this is the time required to process paper work and to complete any requirements of the materials purchase. Estimate the time required to select a supplier, prepare purchase orders, obtain purchase authorization and transmit the order to the supplier.
STEP - 6. Calculate the Inter-operations lead time and this is the time required for a manufacturing job to move from one work centre to another during the production process. Calculate and sun together the individual elements of inter-operations lead time including queue time, preparation time, post-operations time, wait time and transmit time.
STEP - 7. Determine the total lead time for the manufacturing schedule. Add the greatest material acquisition lead time for any material or component in a bill or materials to the final product’s manufacturing lead time, administrative lead time and inter-operations lead time to determine the total lead time for the product to be manufactured.
SUNDARAMURTHY VELMURUGAN – linkedin.com/in/sundaramurthy velmurugan 299586110 LEATHER PROFESSIONAL CONSULTANT from a2z Leather Professional Consultancy, PONDICHERRY