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Chapter 7
Logistics and Operations of Supply Chain Management Ch 7
28
Business
Graduate
01/01/2015

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Term
process industry
Definition
Process industries are comprised of manufacturers of chemical products, paper, food, mineral oil, rubber, steel, and so on. In these industries it became increasingly clear that the terminology, logistics objects, and fundamental methods of the MRP II concept could not always be applied without adaptation, but no standardised method so far.
Term
processor
Definition
the processing unit, or production infrastructure, that is, the production equipment (machines, appliances, devices) and the capacities.
Term
Processor-oriented concepts
Definition
aim towards mastering high volume line or continuous production and specialized, expensive production equipment (or processors) with a focus on maximising processor capacity utilisation.

(focus on max capacity not material)
Term
process flow scheduling
Definition
control and planning in process industry.
not yet standardised.

they consider...
1.divergent product structures
2. concepts for continuous production
3. campaign planning (order sequence of batches)
Term
suitability for process oriented concepts
Definition
mass prod, make to stock, less variants, continous or high-vol line prod.
Term
Characteristics of products in the Process Industry
Definition
1. divergent product structure
2. primary product and by-products. often flow-resourch character so no storage possible.
3. production starts at commodity level.
Term
primary product
Definition
the product that the production process is designed to
manufacture.
Term
by-product
Definition
A by-product is a material of value produced as a residual of
or incidental to the process producing the primary product

By-products do not go directly into other products, but they can be recovered, utilized, and recycled in subsequent production processes.

(waste is residual product without value)
Term
Stocking level in the process industry
Definition
end products stores (make-to-stock) represent a widespread and important production environment. The stocking level of chemical, pharmaceutical, or grocery products is, ultimately, the shelf capacity in retail shops
Term
flow resource
Definition
intermediate product that should not or cannot be stored during the process stage and therefore flows through the process continuously.

no buffers put pressure on production planning and capacity
Term
order characteristics in process industry
Definition
the reason for order release is a forecast, as customers will
accept only minimal delivery periods, and the lead time is often extremely long.
Term
lot traceability
Definition
Lot traceability is required by the governing regulations, but also due to product liability and problems associated with recalling a product. Control of lots, batches, or charges or even positions in lots serves this purpose
Term
technology vs process with technology
Definition
describes process-independent properties and
conditions, that is, all the knowledge contained in a given technology.

describes the technique that can be implemented during the actual production process
Term
process
Definition
describes the possible input, the effect of the process, and the resulting output independently of a given technology.
Term
Resources
Definition
things that are identified, utilized, and produced in a
value-adding process. The term is used in a generalized way here, that is, to represent products, materials, capacities (including personnel), facilities, energy, and so on.
Term
process train
Definition
a representation of the flow of materials through a process industry manufacturing system that shows equipment and inventories
Term
process unit
Definition
the (production) equipment that performs a basic manufacturing step, or operation, such as mixing or packaging.
Term
Recipe
Definition
content of a processor-oriented production structure
Term
processor-oriented order structure
Definition
a processor-oriented production structure associated with a specific (production) order, that is, an order in which quantities and dates are specified
Term
lot control
Definition
batch identification

1. Each batch is given a lot number or batch identification, or batch ID, at the time that it is produced. The batch ID is also recorded asa ìcompleted resource transactionî and entered as a receipt into stock.

2. The physical inventory of a particular resource consists of the batches described in step 1 minus any quantities already issued from these batches

3. The batch ID (determined originally in step 1) assigned to this stock also becomes the batch ID for the issue from stock. The issue from stock is also a completed resource transaction.

with rule same batch for issue: good if need to backtrack this is good.
without rule same batch: messy if backtracking
Term
technically feasible batch size
Definition
calculated by the quantity of goods that should ideally be processed by this facility.
The batch thus produced is also used for accounting, stock keeping, and archiving information for the subsequent lot traceability.
Term
campaign
Definition
an integer multiple of production batches of a certain item,
the batches being produced one after another
Term
campaign cycle
Definition
a sequence of campaigns during which all the important products are produced up to a certain capacity and in the quantity required by demand.

Campaign planning aims to create optimum campaign cycles. (opt time, low cost, reduce nr of setups, less cleaning....
Term
Processor-dominated scheduling (PDS)
Definition
a technique that schedules equipment or capacity (processor) before materials. This technique facilitates scheduling equipment in economic run lengths and the use of low-cost production sequences

common in process oriented structure production
Term
Material-dominated scheduling (MDS)
Definition
a technique that schedules materials before processors (equipment or capacity). This technique facilitates the efficient use of materials

Material-dominated scheduling can be used to schedule each stage within a process train. Typically, the MRP II / ERP concept as well as the just-intime concept use material-dominated scheduling logic
Term
when to use what planning concept
Definition
MRP II / ERP concepts or the just-in-time concept may be used if:
1.Materials are expensive related to cost of goods manufactured.
2. There is over-capacity.
3. Setup times and costs tend to be negligible.
4. There is job shop production rather than line or flow shop.

Processor-oriented concepts may be used if:
1. Capacity is expensive related to costs of goods manufactured.
2. There are capacity bottlenecks.
3. The one-off costs for each lot produced are relatively high.
Term
operation/process yield
Definition
relationship of usable output from a process, process stage, or operation to the input quantity
Term
pipeline planning (a way to conduct long-term planning in process industry )
Definition
pipeline planning, or scheduling across different locations that operate independently of one another.
This type of planning environment is a frequent occurrence due to the cost of capacity and the regulation of the markets associated with the process industry.
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