Career Episode Three

Introduction
CE3.1 I worked for the company, Goltabsabz from 21th April 2005 - 30th December
2006. I worked part-time as production planner in the industrial engineering sector
while I was a student. I was in charge of production planning, schedule material
ordering, recording of raw material inventory and working with the accountants to
prepare profit and loss and balance sheet statements.

Background
CE3.2 Goltabsabz Co. is a melamine dish manufacturer in Tehran. Because of its high
quality, competitive pricing and strength in marketing the company exported most of
its products. The products were exported mainly to Africa, South America, and Asia.
The company directors had started a program to change traditional management
methods to more productive and efficient modern methods. Therefore, when I started
working, I was in charge of establishing a productive and efficient production planning
and warehouse process.
.
Directors

Accounting

QualityControl

IndustrialEngineering

Supply&Demand

MyPositionasa

ProductionPlanner

Personal Engineering Activity

CE3.3 At the time raw material purchases were based on Master Production schedule
(MPS). I had to prepare MPS monthly. Since purchases were based on the experience of
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Career Episode Three

supply manager, I recommended that the company use Material Requirements
Planning (MRP) to ensure that reliance on the supply manager was reduced. Having
suggested the idea, I was charged with the task to implement MRP in the company. To
prepare the MPS, I used the demand forecasting which was estimated by the sales
manager. Then, I prepared MPS based on inventory level, forecast demands, safety
stock requirements, exhibition and promotion requirements, and sales orders. Based on
MPS, I prepared the MRP outlet, which was applied in the Capacity Requirements
Planning (CRP). If machine and labour hours available could not cover the demands, I
had to allocate the machine hours that were available to produce each type of products.
Sometimes the manager set the priorities but I always preferred to use optimizing
model, which I studied in Operation Research (OR). Therefore, I designed a spread
sheet in Ms Excel containing some fixed data, for example, process time, material usage,
and overhead cost (machine hour was driver cost) for each type of production in each
machine per unit. Then, in these cases I entered the material cost and all other necessary
figures like gross profit per unit which were calculated automatically. At the end, I used
the Solver in Excel to maximize my profit function, which provided me the quantities
that I needed for the MPS figures. If adjustments were made in MPS, it would
alternatively create new MRP and CRP values as well.

a,b,c,... are gross profit per unit that were calculated by

excel and X was presented quantity of each types of
products

,,

a,b,c, here were production cycle time for each type

of product and A availability of each machine in each
period,
was maximum unit that I need for each type
of product,

CE3.4 Having prepared the MPS for each item, I prepared MRP tables. In fact, MPS
shows when and how many different products are needed. MRP shows material
requirement of each type in details. In order to establish a MRP system, first of all I
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Career Episode Three

planned Bill of Material (BOM) for each type of dish because they consumed the same
raw material. However, they were different in terms of size, color and design. Thus,
the BOMs were one level for each product. Furthermore, I calculated Economic Order
Quantity (E.O.Q) and re-order point for all raw materials. I set a lead time and safety
inventory with my supply managers suggestion. I used this information to design the
MRP tables in Excel. Then, I prepared CRP which showed plans for each machine and
for each period of planning. I prepared spread sheets in Ms Excel for the whole
process from MPS to CRP. The CRP tables were filled based on machine hours
available, set up time, and production time per unit for each type. At the end of the
process, I filled the weekly task sheet for each machine. The sheet showed the daily
tasks the machine operator had to conduct and also how many and what type of
products should be produced that day. I sent the filled task sheet to the foreman to
stick on each machine. Also, a set of the results of MRP was sent to the supplier
manager for approval. If any changes occurred in sales order, production line or in
supplying the materials, the MRP, CRP, and if necessary MPS figures had to be
readjusted also.

SampleofMRPtables:
Material Code:

Lead time= A

Date

1/09

2/09

re-order quantity= B
3/09

4/09

5/09

Product
Code:

6/09

Requirements
gross
Schedule
Receipts
Onhand
inventory
Planned order
released

FinalMRPforeachofproduct

D=annualdemand
. .

CH=annualholdingcostperunit

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Career Episode Three

CRP tables sample
Machine

Product
code

10

11

12

B
C
2

A
B
C

CE3.5 Before I started to work for the company, the warehouse was managed using the
traditional method. Usually the raw materials were purchased whenever they were
required and were stored just based on their type. I designed a documentation
procedure for warehouse as well as changing the warehouse layout to be applicable for
the First-In-First-Out (FIFO) system. Having finalized a MRP, I sent the date and
necessary amount of raw material to the supply manager. I identified each internal
order by a code, which was provided to the foreman and was also sent to warehouse.
Then each batch of material recorded and tagged based on the date and internal order
code that showed the period of planning that it belongs to. Therefore, when the
foreman asked the store manager for raw material, both of them use the code to identify
which batch should be delivered. There was identical code for each batch of product
related to the CRP as well. The CRP code should be mentioned on the finished product
tags in addition to other details. These codes not only helped me to have a feedback of
my planning but also in case of defected product it was easy to chase for raw materials,
if the problem caused by the materials.
CE3.6 After execution of the procedure the company accountant was able to do more
accurate job costing. In fact, we discussed about more accurate job costing and I entered
the data in a spread sheet in MS Excel. Then by specifying the cost of material, direct
labour cost, and overheads for each job, we had the cost of production for each period
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Career Episode Three

of MRP planning. Also, I kept the data updated by entering any new received material,
or any materials issued. I entered the quantity and price for any transactions then
balance of inventory at date of each report was calculated in the spread sheet
automatically. This information was used in profit and loss statement and annual
balance sheet.

Summary
CE3.7 Implement of MRP cut a lot of unnecessary cost of storage and ordering in the
company. Also, I established a systematic production planning, material ordering, and
warehouse control which caused efficiency in production line, supplying material,
warehouse management, and even in quality control. I chose the company since the
director started to change traditional manufacturing method with modern method.
Moreover, it was great practice for me to be involved in an industrial environment and
an opportunity to apply my theoretical knowledge in practical situation. My managers
were fully satisfied by my professional attitude, team work, and skill of management.