Scheduling and Controls of Project ManufacturingMohamed El-Mehalawi, Ph.D, PMPSenior Project Controls ManagerFaithful+Gould

The Presentation is not available on the Conference DVD.

If you like a copy send me an email I will send you a link to it.

Mohamed.el-mehalawi@fgould.comor pick up my card.

About the Author

I love

KISSKeep It Simple, Smart

I Love Manufacturing

I Love Project Management

• There is no exact science that is applied to get project management results.

• It depends on personal traits: – Creativity– Problem solving– Communication– One mile long – one inch deep !

The Problem

Engineering Complete

1 day

Shipping Products5 days

Fabrication160 days

Shipping Raw Material4 days

Manufacturing Management

Management of manufacturing is based until today on two environments:

1. Mass production and assembly line2. Job-shop manufacturing

I am suggesting a third method called Project Manufacturing

Mass Production Line

Mass Production Line

Videos

Mass Production:Definition

Mass production is the production of large amounts of standardized products on production lines.

It was popularized by Henry Ford in the early 20th Century, notably in his Ford Model T.

It was reinvented by Toyota in the 1950s.

Production Line:Definition

A Production Line is a manufacturing process in which interchangeable parts are added to a product in a sequential manner to create an end product.

Scheduling & Controls in Mass Production

• Push/Pull production scheduling• Ford focused on the Push system

– Push the material into the line

• Toyota focused more on the Pull system– Products at the end of the line generate signal

to push material into the line.

Scheduling & Controls in Mass Production

Job-Shop Manufacturing

Job-Shop Manufacturing

Job-Shop ManufacturingDefinition

The job shop scheduling problem (JSP) is a traditional decision making problem that is encountered in:

• Low volume–high variety manufacturing systems

Job-shop scheduling is dedicated to low volume repetitive products manufacturing

Job-Shop is a good strategy for make-to-order not for unique and temporary engineer-to-order products.

Scheduling and Controls in Job-Shop Manufacturing

• There are thousands of algorithms based on mathematical methods to resolve the job-shop scheduling problems.

• The “Goal” or TOC by Eliyahu Goldratt gave a common-sense methodology for the job-shop problem.

• CPM is not the best methodology for job-shop scheduling

Project Manufacturing

Image provided courtesy of The Babcock & Wilcox Company

Project Manufacturing

Image provided courtesy of The Babcock & Wilcox Company

Project Manufacturing

Project Manufacturing:Definition

Project manufacturing is dedicated to producing or assembling one unit of each unique product. Although it is a manufacturing environment, it follows the project definition of being temporary and unique.

Project Manufacturing:Definition

It is the process of manufacturing a temporary and unique product that has a very high number of non-standard components.

It is the process of manufacturing an engineer-to-order product.

Project vs. Repetitive Manufacturing

Repetitive Manufacturing

ETO / Project Manufacturing

Change Orders Very Limited Unlimited

Products Standard products Unique Products

Pricing Uses a price list Estimates & quotes.

# of components Low Very High

Lead time Days or weeks Months or years

Inventory Based on part number No Inventory

Project vs. Repetitive Manufacturing

Repetitive Manufacturing

ETO / Project Manufacturing

Engineering No or a few changes Significant changes

Value ($) Low Typically higher

Production routing Standard Customized

Shipping Ships from finished goods Ships from WIP

Progress measures

Cost variance from the standard cost

Cost variance from the original budget

Presentation Overview

This presentation is focused on the scheduling and controls of project manufacturing using critical path method (CPM).

1. Project manufacturing plant2. Benefits3. Project manufacturing scheduling 4. Automating the schedule5. Automating schedule updates6. Utilizing enterprise scheduling system to

manage resources7. Implementation results

Project Manufacturing Plant

Image provided courtesy of The Babcock & Wilcox Company

Project Manufacturing Plant

Image provided courtesy of The Babcock & Wilcox Company

There is no production line

There is no job-shop

Management in Project Manufacturing Plant

• The majority of project manufacturing shops in the US use manufacturing management based on job-shop.

• They utilize machine loading, master scheduling, process improvements, and quality assurance exactly like mass production plants.

CPM in Project Manufacturing

Objectives of this study or the benefits of using CPM in scheduling project manufacturing:

1. Providing a project-based methodology to a project-based process.

2. Integrating the fabrication phase of the project with the rest of the project schedule.

Will come back to these later.

Methodology Concept

Given a sheet and a bar of wood, you need to produce the shown chair.

It has 6 parts; A,B,C,D,E&F as shown.

Methodology Concept

1Cutting

2Sanding

3 Slot Creatio

n

4Bowing

A X X X X

B X X X

C X X X

D X X

E X X X

F X X

Methodology Concept

After having all parts, we need to:

1. Insert two D into E, → T, glue(5) & sand(6)

2. Insert T into B, → S, glue & sand

3. Insert two C into S → R, glue & sand

4. Insert two F into A → Q, glue, screw(7), and sand

5. Insert Q into R → W (the chair), glue, screw, sand, and paint(9).

Network Diagram for Chair Project

A1 A4A3A2

F2F1

D2D1

E3E2E1

B4B2B1

C3C2C1

T6T5 S6S5 R6R5

Q5 Q6Q7

W7W5 W9W6

Schedule for the Chair Project

Once the project network is created, each of the 30 activities can be assigned:

1. Duration … to calculate start and finish

2. Labor hours … with skill set determines labor requirements

3. Machine hours … with work-center type specifies machine reqrt.

4. Raw materials … raw material needed

5. Finished material … determines the progres of each activity

Custom Chair Manufacturing Plant

• Assume the plant does not produce two similar chairs.

• Each chair will have a resource loaded schedule.

• Each chair schedule can be combined with chair design, engineering and procurement schedules.

• Combining all chair schedules in an enterprise system will allow the production manager to plan for resource requirements.

• The schedule can be updated based on the consumed duration and the quantity of finished goods.

Automating Schedule Creation

• The first manual implementation was on products that had about 1000 part numbers.

• This generated more than 5000 activities.

• Production planners complained about having to create schedules for new products while updating the schedules of active products (projects).

Automating Schedule Creation

Any plant that deals with these large projects always has:

– An ERP system– An engineering bill-of-material system (BOM)– A part routing system– A manufacturing execution system

Usually the last three systems dump the information into the first system.

The idea of automating the creation of the project/product schedule depends on the last three systems.

Part Routing System

• For each part, the routing sheet describes:– How it is manufactured (the operations)– Needed materials– Needed labor skill and time for each operation– Needed work-center type and time for each

operation

Part Routing System Example

The part is a bent tubeOperation Sawing Milling Bending Painting

Raw Material 40ft - 2¾” Tube

Work-center Saw A9 Milling m/c Bender Z3 Paint Shop

M/C Time (m) 3 2 6 5

Labor Skill General Machinist Bender Painter

Labor Time (m) 5 4 10 11

Sawing PaintingBendingMilling

Part Routing Can Generate Local Schedules

A resource loaded schedule for each part number is generated.

The relationships between different local schedules are missing.

The BOM provides those relationships.

Custom Chair Bill of Material (BOM)

W - 1 Chair

Q - 1

R - 1

S - 1

C - 2

T - 1

B - 1

E - 1

D - 2

F - 2

A - 1

BOM Creates Activity Relationships

T cannot start unless 2 Ds and 1 E are finished.S cannot start unless 1 B and 1 T are finished.R cannot start unless 1 S and 2 Cs are finished.Q cannot start unless 2 Fs and 1 A are finished.W cannot start unless 1 R and 1 Q are finished.

These relationships are enough to build a complete manufacturing project schedule.

W - 1 Chair

Q - 1

R - 1

S - 1

C - 2

T - 1

B - 1

E - 1

D - 2

F - 2

A - 1

The Automation of Schedule Generation

• If:– Product routing – BOM

Are available in any electronic format, then the full resource loaded schedule can easily be generated automatically.

Manufacturing Execution Systems (MES)

• They are information systems used to manage and manipulate data in factory floors.

• Different technologies are used to distribute schedule information and to collect actual production information from plant floor.

• Barcode, Magnetic Cards, Smart Card, RF are examples.

Automating Schedule Updates

• MES provide real time information for each activity:– Start– Finish– Labor hours charged– Machine hours charged– Number of units finished

• Dumping this information into the schedule, we get an updated schedule that reflects the exact status of the project.

Project Schedule Integration

A1 A4A3A2

F2F1

D2D1

E3E2E1

B4B2B1

C3C2C1

T6T5 S6S5 R6R5

Q5 Q6Q7

W7W5 W9W6

Engineering Complete

1 day

Shipping Products5 days

Fabrication160 days

Shipping Raw Material4 days

Engineering Complete

1 day

Shipping Raw Material4 days

Shipping Products5 days

Project Schedule Integration

• It gives the project manager better control over the fabrication phase of the project.

• Any changes in engineering dates will be dynamically conveyed to the manufacturing schedule.

• If the project uses CPM and the fabrication uses job-shop, then there will be a disconnection in project controls.

Resource Management

• The manufacturing plant will have multiple concurrent projects.

• Concurrent projects share the same resources

• Constrained resource allocation to multiple projects is the hardest mathematical problem in project management.

Enterprise Project Controls Systems

• Enterprise project controls systems combine the requirements on each single resource from all active projects.

• Few resources are over allocated and few are under allocated.

• If we leave the resource leveling to be automated based on a heuristic or mathematical method, it will be a mess.

Enterprise Project Controls Systems

Resolving Resource Conflicts

• The plant might have 500 resources.

• If we try to schedule projects and pay attention to these resources, the number of production planners needed will be prohibitive.

• If we insert hard activity relationships to represent these resources, then all resources will be under-allocated.

Resolving Resource Conflicts: From Practice

• We used this system in a plant for three months trying to resolve conflicts of all resources. The implementation team was working with the production planners.

• We found that we only have 3 resources that are always over-allocated (bottlenecks).

• We manually scheduled all active projects around these three resources. No conflicts arise from other resources.

Conclusions: WorkflowRouting

From ERP System

Operations and Their Properties

EBOM From ERP

System

Part Child-Parent

Relationship

Data Manipulation

Data Manipulation

Activity ListActivity

RelationshipsResource Loading

Project Controls

Database

Resource Loading

Gantt ChartEarned Value

Measures

Build Global Information:

Work Centers.Labor IDs.Material IDs.Templates.

Documents Collected From Manufacturing,

Accounting, and HR

Conclusions:Goals Achieved

With a simple system, we achieved the implementation of our two goals:

1. Project schedule integration specially for EPC projects

2. Planning and controls of production within a project manufacturing plant.

Conclusions:Benefits to the Plant

• Plant customers (project owners) like this system because it keeps them informed on the status of their project.

• Engineering departments become informed about the effects of their schedule on manufacturing schedule.

• Changes are handled in the plant easier than handling them using a job-shop strategy

Conclusions:Success Story

• My first implementation was at a plant that used to update the schedule monthly.

• After implementation, I asked them to update it weekly and they agreed without any resistance because the automation of schedule creation saved them a lot of time.

• After a few months they came back to me and requested to update the schedule daily.

• That proves the applicability of the system in planning and controls in project manufacturing plants.

The Presentation is not available on the Conference DVD.

If you like a copy send me an email I will send you a link to it.

Mohamed.el-mehalawi@fgould.comor pick my card up

Thank YouFor Attending!