CAPM.ART  ·  ART  ·  23.9 KB  ·  1980-01-01  ·  from CompuLink-User-Group_Magazette_Vol-2-Issue-1_1986
       This  is  part  one  of  a  two  part  article  about Computer Aided
    Production and Management (CAPM).  CAPM is the  specialist  subject  of
    Mektronic  Consultants  of  Manchester.   This  article  comes  to  you
    courtesy of Brian Benster and the staff at  Mektronic's  who  would  be
    delighted   to  answer  any  of  your  enquiries  about  CAPM  and  how
    Mektronic's can help you achieve cost effective CAPM.

    MEKTRONIC CONSULTANTS   - Specialist Electronic Designs.

     Linden House,                Telephone:   061 798 0803
     116 Rectory Lane             Telex:       666387 MEKTRONIC
     Prestwich,                   Prestel MBX: 617980803
     Manchester
     M25 5DB

       COMPUTER AIDED PRODUCTION AND MANAGEMENT

       A  CAPM  system in a four tier structure of a conceptional automated
    factory will be depicted.  Possible benefits and roles of such a system
    will  also  be  described  as  will  the  features  of  the  end  users
    microcomputer system to implement CAPM.


       1.  INTRODUCTION

       It has long been realised that CAPM (Computer Aided  Production  and
    Management)  systems  are  very  effective  in  controlling  the  whole
    management system and production operation of a manufacturing  company.
    The  original  application  areas for computer systems in industry were
    for accountancy and financial planning.  It was the need to be able  to
    collect  information  from  the  production  operation  which  prompted
    initiatives that resulted in the  early  concepts  for  Computer  Aided
    Production Control.

       Perhaps  the reason why the development of CAPM was hindered and was
    limited to larger organisations at the outset, was the  high  price  of
    the mainframe computer.  With the advent of lower priced microcomputers
    and a wider  selection  of  approachable  business  software  packages,
    development of the computer proceeded further, to its fourth generation
    and the development of CAPM has brought new life.

       This report tries to disclose a new concept of what  a  CAPM  system
    should  be in various functional areas of an automated factory, and the
    possible roles that such a system can play in these areas.

       Although in such a system various degrees of computer system such as
    mainframe,   mini   or  micro  could  be  involved,  this  report  will
    concentrate on a system for  an  end  user's  microcomputer.   This  is
    because  such  a  system  is  usually  put  into  the first place to be
    re-organised.

       The report consists of the following sections:- firstly  an  outline
    on  'What is CAPM' and the background detailing its boom;  secondly the
    four tier  structure  of  a  conceptional  automated  factory  and  the
    possible  roles  of  a  computer  system  to  implement  CAPM,  will be
    presented;  and finally a suggested plan for re-organisation of the end
    user's microcomputer system will be included.

       2.  WHAT IS CAPM?

       Computer aided production and management makes use of computer power
    which has long been well-known to be effective in collecting,  storing,
    retrieving,   processing,   communicating,   distributing,  displaying,
    plotting, printing etc., large quantities of information,  to  aid  the
    complex system of production and management in a company.

       The  functional  areas of CAPM involve almost every facet and nuance
    in the total process of an automated factory:  forecasting,  tendering,
    designing,  manufacturing,  testing, selling, installing and supporting
    and maintaining a product.

       The key advantage that CAPM can give is  the  common  database  from
    which  all  information for all activities, is drawn.  The existence of
    this database means that the production management process is no longer
    a  series of loosely coupled activities, each one conducted with little
    or no regard for the rules and limitations of the others.  Instead they
    become a set of tightly coupled activities which can be repeated easily
    and quickly to reach the ever sought optimum solution.

       Moreover, it is essential for a CAPM system to be fully  integrated.
    There is nothing new in specialised hardware and real time software for
    process  control.   There  is  nothing  new  in  data  collection   and
    statistical  analysis,  payroll and accounting.  Full communication and
    exchange  of  data   between   the   engineering,   manufacturing   and
    administration departments of a company is the goal.

       3.  BACKGROUND WHICH DESCRIBES THE CREATION AND DEVELOPMENT OF CAPM

       The  control  of  manufacturing  costs  and production workloads are
    critical factors which  contribute  to  the  success  of  manufacturing
    companies.   In  practice, this goal is attained by the introduction of
    effective control systems to monitor and record daily business activity
    and  provide  basic  data  for  decision  making.   The  expertise  and
    responsibility for running such systems may be  vested  in  individuals
    whose  skill  and  judgement is influenced by the responsiveness of the
    supporting information, provided to enable crucial value  judgement  to
    be  made.   In  addition,  comprehensive  paper  base  systems  may  be
    introduced,  but  often  it  proves  difficult  to   extract   relevant
    information  when it is required.  Moreover, such systems often consume
    valuable time and effort through the maintenance effort required.

       Given these concerns it is not surprising  that  managers,  even  in
    small  manufacturing companies, are looking towards computer technology
    to provide assistance in the management of data and the  generation  of
    information to support the decision-making process.

       The  early  concept  for computer aided production control is simply
    made a straight financial issue.  In fact computer aids for accountancy
    and   financial  planning  were  the  original  application  areas  for
    computing systems in industry.  Today, the new concept  of  CAPM  calls
    for   complete  integration  of  all  the  functional  areas  involved:
    administration  and  operations,  design   engineering,   finance   and
    accounting,  production  and  stock  control.   In  other  words, it is
    integration  amongst  corporate  level  management,  inter-departmental
    level management and the shop/factory floor production.

       4.  BACKGROUND WHICH EXPLAINS THE CAPM BOOM

       Although  the  concept  of CAPM is not new, its application has only
    relatively recently been widely adopted by the engineering  industries.
    This  was  because  implementation  of the system was largely dependent
    upon the development of computer technology.

       Within the mainframe computer world, only some  large  organisations
    could  afford  to  bring  in  computer  power  to implement CAPM and to
    provide suitable skilled  staff  to  handle  the  complicated  systems.
    Moreover, in the beginning, data processing was centralised in the data
    processing department and the response time was long.  Thus, it  seemed
    impractical  to  implement  the  CAPM  system and so the concept of the
    system could not be extended.

       Later as the minicomputer came on the scene, the situation  improved
    slightly.   The  advent  of  minicomputers  brought computer power at a
    price that made production control, suitable for  the  medium-sized  or
    smaller  company, a practical proposition.  Meanwhile, the minicomputer
    offered a very successful alternative to the frustrations of  mainframe
    computing;   it  was  able  to  function unattended for long periods of
    time;  and it was relatively  straightforward  to  interface  to  other
    equipment.    Despite   the  advance  in  hardware  technology  of  the
    minicomputer, the costs were still high, supporting  what  was  only  a
    relatively  small  market  segment.   U.K.   companies as a whole, were
    still slow in adopting computer-aided production control.

       Now the boom in microprocessor and large scale memory technology has
    brought  a new dawn for computer-based production control:- interactive
    operation, large working memory space,  simple  information  input  and
    enquiry  devices and colour graphics.  This is the fourth generation of
    computer development.  With the advent of lower  priced  microcomputers
    and   a  wider  selection  of  approachable  business  software,  small
    businesses and middle-management  began  to  willingly  adopt  computer
    aided  production  control.   Besides  cheapness, this type of computer
    development can also offer the following advantages which:-

       1) are easy to use by people who are not computer experts.
       2) offer extensive, immediate assistance  to  users  to  guide  them
    through  the  interactive  sequences  within  the computer, e.g.  query
    language and screen printer.
       3) provide mix and match facilities to cater for  the  variation  in
    the functional needs of companies.
       4) give clear, comprehensive reporting facilities.

       It  is  largely because of the above advantages which microcomputers
    provided, that the manufacturing companies  started  to  implement  the
    CAPM system and made a boom of it.

       5.  OUTLINE OF A CONCEPTIONAL AUTOMATED FACTORY

       The  conceptional automated factory is the result of the CAPM system
    integrating all the functional areas of the factory together.  Data can
    be  transferred  from  one area to another through the common base data
    system  and  the  system  in  each  area  can  survive   independently.
    Additionally,  the system can be expanded as it has been designed to be
    modular.  Below is  a  list  of  the  typical  areas  of  an  automated
    factory:-

       1) Operational Control:

       includes  sales  forecasts,  sales analysis, order entry purchasing,
    shipping, standards, costing, process planning, work  routing,  tooling
    and plant, tool control, maintenance, etc.

       2) Design Engineering:

       includes  2D  engineering  drawings, parts lists, drawing revisions,
    drawing records, records management, 3D design  modelling,  engineering
    analysis, modelling and simulation, project control, etc.

       3) Finance and Administration:

       includes   payroll,  budgets,  cost  accounting,  accounts  payable,
    accounts receivable, customer billing, general ledger asset accounting,
    tax accountings, personnel records, etc.

       4) Production and Inventory:

       includes  material  resource planning, scheduling, work-in-progress,
    material handling, quality control, product testing, inventory control,
    dispatch of finished goods, etc.

       5)  Process  Control:   includes  NC  machinery,  robotics, flexible
    manufacturing  systems,  automatic  test  and  measurement,   automated
    warehousing,   etc.    The  above-mentioned  functional  areas  can  be
    classified  into  four  levels.   Level  One  can  be  viewed  as   the
    'instrumentation'  or  'work station' level which is based on providing
    control systems for use within the production process.   These  can  be
    either numerical control machines for lathes or drills, for example, or
    indeed mechanical robots as seen on the production lines of  major  car
    manufacturers.   Such systems, although computer-controlled, often have
    to be tailored to specific manufacturing organisations.

       Level  Two  can  be  viewed  as  a 'control' level which is based on
    supervisory processors which provide the  control  for  the  production
    process.   They will not only monitor and control the production lines,
    but will often be used to store the software which is  then  downloaded
    onto  the  numerical  control  machines  and robots.  These supervisory
    processors are usually based on minicomputers,  which  can  be  located
    wherever the production process is taking place.

       Such  systems are often linked with the planning processor, which is
    usually seen as the third level in the four-tier structure.  It is this
    larger  scale processor which is used to control the materials planning
    applications,  as  well  as  the  systems  used  for  supervisory   and
    production control functions.

       The planning processor together with the supervisory system can also
    be linked with computer aided design and  engineering  applications  so
    that  each  aspect  of  the  design  and  production  process  is fully
    integrated and controlled.  A manufacturing company will therefore have
    the   capability   of   planning  accurately,  the  resource  required,
    monitoring the production process and also ensuring that products  meet
    the highest standards of quality and reliability.

       In  many larger organisations there is also the need to closely link
    the  manufacturing  functions  with  the  management  information   and
    administrative needs of the company.  To fulfil this need, the planning
    processor can be linked with a corporate information processing  system
    which is seen as the fourth level in the automation strategy.

       This   large  scale  processor  is  used  for  developing  corporate
    production plans, financial and sales statistics and for  handling  the
    daily  processing  needs of a large organisation.  Such applications as
    word processing,  electronic  mail,  financial  planning  and  business
    graphics would therefore be integrated in Level Four of this strategy.

       The  above  conceptional  Four Level automated factory is already in
    use within manufacturing centres in Europe and the  USA.   It  has  had
    very  positive  benefits  not  only  in  terms of production cycles and
    inventory levels, but also on the quality of production coming off  the
    end of the production line.

       6.  THE PRESENT TREND OF COMPUTER SYSTEM TO IMPLEMENT CAPM

       Although  the  boom  of  the  CAPM  system  was  brought  on  by the
    microcomputer, the real  picture  at  present  for  CAPM  is  that  the
    mainframe  computer  is still being retained and takes up the role of a
    centralised machine or an important part of a network,  which  connects
    with micros in various topologies to the end users.

       The  mainframe  of  the  future  will  be handling the following two
    distinct areas:-

       1) the organisation of production needs of the business, the routine
    running   of  a  large  organisation  with  a  heavy  emphasis  on  the
    reliability of the system and its speed of operation;

       2) the management and handling of  the  information  bases  for  the
    company,  i.e.   the  information needs of those departments which span
    the whole company as opposed to the  single  user  systems  which  will
    service those individual departments.

       In  order  to  handle  these  two  areas, a mainframe computer needs
    powerful processors, large internal memories to cope with large amounts
    of  data  at  speed,  fast  channelling of that information through the
    computer and many input/output ports to accommodate many terminals  and
    peripherals.   It  can  also drive high speed disks, tapes and printers
    and serve a variety of them.

       The ultimate use of the microcomputer is to provide end  users  with
    responsive  processing  power  at  their  fingertips  and  under  their
    management control.  Furthermore, the microcomputer can be  used  as  a
    means  of entering data into and extracting it from the database of the
    mainframe computer.

       From the above, it seems clear that the minicomputer has been  under
    used  in CAPM.  Indeed, minicomputers can be used to replace mainframes
    and microcomputers where necessary.

       The minicomputer as a piece  of  a  multi-processor  unit,  provides
    features  of  'real'  database management systems that distinguishes it
    from the so-called database system on a  microcomputer.   Moreover,  it
    can  combine  the  reliable data control and handling ability of a DBMS
    with the guaranteed speed of response to unstructured queries  provided
    by an Information Retrieval system.

       There  are  several  types  of  topologies  that  make  the  link of
    mainframe and micros and these will be outlined in a later section.

       7.  POSSIBLE ROLES OF COMPUTERS  IN  THE  AUTOMATED  PRODUCTION  AND
    MANAGEMENT SYSTEM.

       Below is an outline of possible roles that computer systems can play
    to  aid  the  production  and  management  system   in   an   automated
    manufacturing factory.

       In  the  factory  floor level, there is a wide diversity of products
    spanning   CAD   workstations   (intelligent    instruments,    process
    controllers,  component  testers,  assembly system - i.e.  robotics and
    insertion equipment) soldering equipment, field source testers, etc.

       Traditionally these products have been 'stand-alone',  task-specific
    items  and  as  such  have  evolved  to  a  high  degree of specialised
    efficiency but at the expense of flexibility.

       Today most of  these  instrumental/workstation  level  products  can
    communicate  themselves and work sequentially by means of the Level Two
    supervisory system.

       The Level Two supervisory system concerns accessing information  for
    monitoring  and  reporting the existing condition of a production line.
    Answers to the following questions are  possible,  to  be  provided  by
    means of an automated production supervisory system.

       1) Which machines are producing and which have stopped?
       2) How long have the stopped machines been down and for what reason?
       3)  At  what  rates  are  the  machines  producing and how does that
    compare with their targets?
       4) What product is Machine X producing,  how  much  longer  has  the
    batch to run and what is the reject rate?
       5)  Are  we  losing  time  because  of  a  small  number  of lengthy
    breakdowns or a large number of trivial faults  and  does  the  pattern
    vary from machine to machine?
       6) What are the main causes of downtime and how has this varied over
    the past year?

       The supervisory system consists of firstly,  intelligent  shop-floor
    devices  which  automatically  collect  parts counts and machine status
    information and a keypad and display which enable  operator  entry  for
    stoppages, enquiry on machine performance and entry of batch details if
    appropriate;  and  secondly,  a  set  of  monitory  software  packages,
    printers  and  visual display terminals to produce instantaneous status
    reports, long-term analysis of performance and some special reports.

       Level Three of the automated system mainly concerns the departmental
    planning/control work and ordinary clerical work.

       Departmental   planning/control   work   includes  work-in-progress,
    job/variance costing, ABC analysis and perpetual audit, etc.

       Ordinary clerical work includes parts lists, basic costing, routing,
    extended costing, factory paperwork, purchase orders, etc.

       Details of the above work areas are listed below:-

       Work-in-Progress:

       Holds details of all jobs in progress, either  in  summary  or  with
    operation  details, indicating their whereabouts, due dates and accrued
    costs.  Provides 'work to'  list  for  each  work  centre  and  loading
    enquiry data.

       Job/Variance - Costing:  In-batch working allows all deviations from
    standard to be costed and analysed.  For  sub-  contract  of  prototype
    work,  can  be  used  to build up actual costs as jobs proceed, to give
    retrospective check on profitability and to assemble and store data for
    repeat orders.

       Material  Requirement  Planning:   Analyses the master manufacturing
    schedule into fully-detailed material requirements making due allowance
    for  stocks, orders placed and lead times.  'Suggests' works orders and
    purchase orders to meet the plan and provides means to confirm these if
    accepted.  Also provides data on future stock profiles.

       Capacity  Requirements Planning:  Schedules all works orders through
    relevant work centres  indicating  resulting  load  for  each  planning
    period,  differentiating  between status levels 'suggested', 'planned',
    'committed' and 'in progress' -  for  each  other.   By  providing  the
    capability  for a selective 'what if?' approach to load planning, it is
    possible to carry out the all- important Impact Analysis.

       Stock Control:
       Holds  on  order/physical/allocated  stock  figures  for  all parts,
    provides partial  or  total  valuations;   keeps  audit  trail  of  all
    movements.

       ABC Analysis and Perpetual Audit:
       Grades all stock items by annual usage value and sorts into A, B and
    C categories according to  locally  decided  criteria.   Then  it  will
    provide check lists at correct frequency.

       Trial Kitting:
       Compares  batch  requirements  against stock holdings and highlights
    and controls shortages.  If the trial is accepted  by  management,  all
    stock movements can be made by a single entry.

       Parts List:
       Holds  detailed  information  on  'family  trees'  -  structures and
    quantities - as finished products are analysed down  to  raw  materials
    and bought out parts.

       Basic Costing:
       Provides  a  cost  build-up from raw material level to final product
    and maintains audit trail of cost change.

       Routing:
       Holds data in two files;  relevant work centre data in one,  routing
    and operation details for each part number in the other.

       Extended Costing:
       Provides  a  total  cost build-up for each part, detailing material,
    labour and overhead costs.

       Factory Paperwork:
       Provides  material  requisitions,  job   cards   and   route   cards
    automatically generated from consistent data.

       Purchase Order:

       Hold  details  of  suppliers  and orders placed, allowing enquiry by
    supplier,  order  or  part  number,  highlighting  overdues,  completed
    orders.

       Level  Four  of  the  automated  system  concerns corporate decision
    making, computer systems can do the following for such decision  making
    processes:-

       Strategic/Long- term Planning:  Includes business appraisals such as
    changing company structure diversification studies.

       Corporate    Planning:     Includes     corporate     models     for
    acquisition/merger studies and inter-company comparisons.

       Functional  Planning:   Such  as  resource  and  manpower  planning,
    comparison  of  production, production methods, marketing/ distribution
    decisions, production rationalisation/ launch stock policy.

       Financial Planning:  Such  as  corporate  financing,  leasing/buying
    decisions,  investment appraisal added value payment schemes, inflation
    scenarios,   implications,   of   development    incentive,    property
    development, cash flow projections.

       Financial  Information System and Reports:  Such as budgets, costing
    and performance analysis, profit and  loss  accounts,  balance  sheets,
    consolidation  of accounts, source and application of funds, short-term
    planning.

       Besides the roles listed above where the computer system can aid  in
    the  four-tier  structure  of  an  automated  factory,  there  are many
    applications where the computer can be used in design  engineering,  as
    outlined in a later section.