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Prof. Agostino Villa, Politecnico di Torino
Student: Sajjad Khaksari
June 6, 2015
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Production System Analysis & Italian Transport Companies

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A briefly endeavor to modeling
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s it possible to use the method we use to analyze the Production System for analyzing a
Transport Company? My brief endeavor to analyze Transport services has started by asking this
question. The question was that is it possible to assume a delivery good as a PF (final Product)?
In addition to find out the EO’s, Components, Resources, Production Functions, Agents,
Information patterns and Organizational Chart. So to find out which kind of information we
need, lets start with explaining the main factors, those could build a Product Tree.
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Adopting and assuming some essential contraction
We assume that FP is satisfactory of client by delivering good Pi to Ij . Furthermore i = 1, … , n ;
they are different products (goods) from the same client (producer). For example in this case, we
assume that OV (officina Vica) who is one of the most important supplier for Iveco, gives Pi to
dp (De Poli autotrasporti) and requests a Transport service.
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So I is Iveco, that is one of the most important client for OV. In addition OV is supplier (Sn) for
Iveco. Also OV is one of the Iveco’s suppliers. Time by time Iveco asks OV to support her
Production Line by raw materials, those are necessary for JIT system. Iveco has different
Delivery Point in her Lungo Stura Lazio plant, so we call them j = 1, … , n.
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The table of Production functions
In this case we assume some principal activities which happened normally during the Transport.
In reality the types of these functions are depend to feature of goods, the regulated rules from
the government or European Union (EU) and other practical index of the products and facilities. 

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The table of Resources
In the case of Resources, to having a simple imagination of dp transport system, we assume just
one kind of Forklift or Van or other vehicle in the table of the Resources.
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!1
I
R1 R2 R3 R4 R5
The table of Agents
Unfortunately in Italian families transport companies, they manage every things on base of their
personal (non academic) experiences! Normally they believe the the main problem is crisis not
any thing else! They just trust to members of family (as a her sons, or husband or son or daughter
of her sisters/brothers etc.) not to any one else. That means, even the STAFF should be a member
of family (normally the Son). Other DM’s, they are just worker! and they have to follow the
STAFF and mamma PAC. Furthermore these kind of companies are not familiar with modern
Accounting systems, Customer Relationship Manager systems, SCM systems etc.
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Standard Transport Time
Timing is an another important factor to analyze the efficiency of the system. Time to reach the
customer, time to loading, necessary time to drive the distance between the customer and
delivery point. Moreover when we talk about freight transport systems, we can not forgot some
important constraints such as the maximum hours of work that any driver has permission to do
during the day and in totally during the week. [all the informations in the followed chart are
based on the calculating one working day times of mine when I was working as a lorry driver].
!
The resolutes are incredibly interesting and contrary with the empirically public opinion in the
transport world. The companies those work yet in the traditional systems, believe that who waste
the time is just the driver! So using Make-span (MS) as the Key Performance Indicator (KPI)
helped us to find out this fantastic result. Statical result illustrate that just 24 % of a driver work’s
times, delicate to driving. All other 76% are wasted in cause of repeatedly waiting for other PF’s!
These (not principal but essential) operations are normally Loading, Unloading, Tacking or
releasing necessary transport documents (DDT) etc.
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Agents Assigned production Functions Type Responsibility on Subordinated to
DM1 Loading&Unloading LO Storehouse STAFF
DM2 Driver LO Transport STAFF
DM3 Logistics Sub-Control LO Logistic Activities STAFF
DM4 Logistics Control STAFF P. Activity of System PAC
DM5 Company (Transport) Activity Control PAC System ——
!2
4%
10%
22%
23%
11%
24%
6%
Reach Customer Driving
Wait for Loading Wait for Unloading
L + tack doc. UL + tack doc.
etc.
Problem Tree
Problem Tree as a simple and fundamental imagination of what is happening in the system:
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PF2 = Final unloading of goods
PF3 = Enter to the plant
Doc. = Transport’s Documents has taken
L = Goods has Loaded
FP = Satisfactory of client by delivering his goods Pi to Ij
GE = Goods has entered to Delivery Point
GA = Goods (vehicle) has arrived to the plant
PF5 = Driving
GA = Goods (vehicle) has exited from the plant
PF4 = Exit from the plant
PF6 = Documents has taken
PF1 = Loading operation
VA = Vehicle has arrived to the plant
VE = Vehicle has entered to client’s plant
PF3 = Enter to the plant
VX = Vehicle has exited from the plant
PF5 = Driving
VR = Vehicle is ready to start working
PF4 = Exit from the plant
NV = Non prepared vehicle for work
PF7 = Vehicle preparing
Sometime
depends to
various
situation,
here we will
see a kind of
LOOP.
Means that
vehicle have
to exit of the
plant and
enter in it
again.
Maybe
because of
different
Point of
Loading or
waiting for
receive Final
Product that
is not ready
yet etc.
N Production Functions
1 Loading
2 Unloading
3 Entering to the plant
4 Exiting from the plant
5 Driving
6 Tack/release Documents
7 Preparing Vehicle
8 Control
9 PAC
Resources Tasks
R1 Forklift
R2 Van
R3 Truck
R4 Trailer
R5 Trailer Trainer
R6 Drive
So after illustrating of Problem Tree, its the time for Graph of Components, which represent the
Elementary Operations and their numbers. In this case (Transport Activity) the graph is Linear
but if we assume additional products in advanced analysis, it became more similar to Tree.
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Then we have to create the Table of Paths:
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10 PHASES
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Then we have to find out Digram of Elementary Operations (EO’s) & Phases:
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So its time to drawing and identifying the PF’s & EO’s:
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Furthermore, the graph of Functions & Phases: As you see in graph, the functions 3, 4 and 5 are
happening in two different phases. Here we are going to represent the Graph of Production
Functions and the Work Sequence:
NV VR VX VA VE L DOC. EX GA GE PF
!4
NV VR VX VA VE L DO EX GA GE PF
12345678910
10
9
8
7
6
5
4
3
2
1
1° 2° 3° 4° 5° 6° 7° 8° 9° 10°
PF7 PF4 PF5 PF3 PF1 PF6 PF4 PF5 PF3 PF2 PF
GEGAEXDOCLVEVAVXVRNV
PF’s  EO’s 1 2 3 4 5 6 7 8 9 10
1 1
2 1
3 1 1
4 1 1
5 1 1
6 1
7 1
7
6
5
4
3
2
1
F’s/P’s 1° 2° 3° 4° 5° 6° 7° 8° 9° 10°
Moreover before representing the final Work Sequence Layout, we have to create and explore the
Table and Graph of Resources:
However, you see the mass traffic of production functions behind the Resource 6. Do you
remember who is responsible of 6th resource? Yes, you are right. He / she is Driver! So this
means that the qualification of this resource is very important. Even you as a manager or as a
controller is better to collaborate with driver, because efficiency and performance of this resource
could seriously effect on the line of transport & logistic system. (Critical Point)
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Finally we arrived to the destination of this report! In the below figure we see the Work sequence
and definite layout of the system. Critical point and bottle neck points are concentrated on R6.
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R’s  PF’s 1 2 3 4 5 6 7 8 9
1 1 1
2
3
4 1
5 1
6 1 1 1 1 1
!5
PF 1 PF 2
DM5
DM4
DM3
DM2 DM1
PF 7 PF 4
PF 5PF 3 PF 6
PF 4 PF 5
PF 3
R6
R6
In addition, the Information Pattern of the company illustrate the flows of information between
the DM’s. PAC (DM5) control all actors. Organization Chart illustrate the organizational
position of 6th resource (driver) and the positions of his co-workers in the team of transport.
STAFF and his staffs! (DM3 = Logistics sub-control) decide, order and control any movements.
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Resources: To write this paper we use books and websites has addressed in below.
✓ A. Villa, De Toni, Palazzolo; Gestione della produzione, Isedi, 2013
✓ DHL web site
✓ Trasporto merci su strada, è una pubblicazione a cura di: ANFIA - Associazione Nazionale
Filiera Industria Automobilistica – Area Studi e Statistiche Automobile Club d’Italia –
Area Professionale Statistica
✓ Ministero delle Infrastrutture e dei Trasporti, DIPARTIMENTO PER I TRASPORTI, LA
NAVIGAZIONE ED I SISTEMI INFORMATIVI E STATISTICI, DIREZIONE
GENERALE PER I SISTEMI INFORMATIVI, STATISTICI E LA COMUNICAZIONE;
UFFICIO DI STATISTICA, SISTEMA STATISTICO NAZIONALE; Conto Nazionale
delle Infrastrutture e dei Trasporti
✓ Analisi e previsioni per il trasporto merci in Italia, © Confcommercio-Imprese per l’Italia
✓ Logistics and supply chain management: creating value-adding networks / Martin Christopher.
-- 4th ed. PEARSON EDUCATION LIMITED
✓ O'Brien, Marakas; Introduction to information system; 16th edition
✓ Sajjad Khaksari Blog; http://italiancoaddress.blogspot.it
!6
DM4
DM3 DM2
DM1
DM5
Information Pattern
PAC
STAFF LO
LO LO LO LO
Organization Chart

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Problem Tree (PT) & Truck Transportation and Logistics / An Italian Case Study

  • 1. Prof. Agostino Villa, Politecnico di Torino Student: Sajjad Khaksari June 6, 2015 ! Production System Analysis & Italian Transport Companies
 ! A briefly endeavor to modeling ! ! s it possible to use the method we use to analyze the Production System for analyzing a Transport Company? My brief endeavor to analyze Transport services has started by asking this question. The question was that is it possible to assume a delivery good as a PF (final Product)? In addition to find out the EO’s, Components, Resources, Production Functions, Agents, Information patterns and Organizational Chart. So to find out which kind of information we need, lets start with explaining the main factors, those could build a Product Tree. ! Adopting and assuming some essential contraction We assume that FP is satisfactory of client by delivering good Pi to Ij . Furthermore i = 1, … , n ; they are different products (goods) from the same client (producer). For example in this case, we assume that OV (officina Vica) who is one of the most important supplier for Iveco, gives Pi to dp (De Poli autotrasporti) and requests a Transport service. ! So I is Iveco, that is one of the most important client for OV. In addition OV is supplier (Sn) for Iveco. Also OV is one of the Iveco’s suppliers. Time by time Iveco asks OV to support her Production Line by raw materials, those are necessary for JIT system. Iveco has different Delivery Point in her Lungo Stura Lazio plant, so we call them j = 1, … , n. ! The table of Production functions In this case we assume some principal activities which happened normally during the Transport. In reality the types of these functions are depend to feature of goods, the regulated rules from the government or European Union (EU) and other practical index of the products and facilities. 
 ! The table of Resources In the case of Resources, to having a simple imagination of dp transport system, we assume just one kind of Forklift or Van or other vehicle in the table of the Resources. ! ! ! !1 I R1 R2 R3 R4 R5
  • 2. The table of Agents Unfortunately in Italian families transport companies, they manage every things on base of their personal (non academic) experiences! Normally they believe the the main problem is crisis not any thing else! They just trust to members of family (as a her sons, or husband or son or daughter of her sisters/brothers etc.) not to any one else. That means, even the STAFF should be a member of family (normally the Son). Other DM’s, they are just worker! and they have to follow the STAFF and mamma PAC. Furthermore these kind of companies are not familiar with modern Accounting systems, Customer Relationship Manager systems, SCM systems etc. ! Standard Transport Time Timing is an another important factor to analyze the efficiency of the system. Time to reach the customer, time to loading, necessary time to drive the distance between the customer and delivery point. Moreover when we talk about freight transport systems, we can not forgot some important constraints such as the maximum hours of work that any driver has permission to do during the day and in totally during the week. [all the informations in the followed chart are based on the calculating one working day times of mine when I was working as a lorry driver]. ! The resolutes are incredibly interesting and contrary with the empirically public opinion in the transport world. The companies those work yet in the traditional systems, believe that who waste the time is just the driver! So using Make-span (MS) as the Key Performance Indicator (KPI) helped us to find out this fantastic result. Statical result illustrate that just 24 % of a driver work’s times, delicate to driving. All other 76% are wasted in cause of repeatedly waiting for other PF’s! These (not principal but essential) operations are normally Loading, Unloading, Tacking or releasing necessary transport documents (DDT) etc. ! ! ! ! ! ! ! ! ! Agents Assigned production Functions Type Responsibility on Subordinated to DM1 Loading&Unloading LO Storehouse STAFF DM2 Driver LO Transport STAFF DM3 Logistics Sub-Control LO Logistic Activities STAFF DM4 Logistics Control STAFF P. Activity of System PAC DM5 Company (Transport) Activity Control PAC System —— !2 4% 10% 22% 23% 11% 24% 6% Reach Customer Driving Wait for Loading Wait for Unloading L + tack doc. UL + tack doc. etc.
  • 3. Problem Tree Problem Tree as a simple and fundamental imagination of what is happening in the system: ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !3 PF2 = Final unloading of goods PF3 = Enter to the plant Doc. = Transport’s Documents has taken L = Goods has Loaded FP = Satisfactory of client by delivering his goods Pi to Ij GE = Goods has entered to Delivery Point GA = Goods (vehicle) has arrived to the plant PF5 = Driving GA = Goods (vehicle) has exited from the plant PF4 = Exit from the plant PF6 = Documents has taken PF1 = Loading operation VA = Vehicle has arrived to the plant VE = Vehicle has entered to client’s plant PF3 = Enter to the plant VX = Vehicle has exited from the plant PF5 = Driving VR = Vehicle is ready to start working PF4 = Exit from the plant NV = Non prepared vehicle for work PF7 = Vehicle preparing Sometime depends to various situation, here we will see a kind of LOOP. Means that vehicle have to exit of the plant and enter in it again. Maybe because of different Point of Loading or waiting for receive Final Product that is not ready yet etc. N Production Functions 1 Loading 2 Unloading 3 Entering to the plant 4 Exiting from the plant 5 Driving 6 Tack/release Documents 7 Preparing Vehicle 8 Control 9 PAC Resources Tasks R1 Forklift R2 Van R3 Truck R4 Trailer R5 Trailer Trainer R6 Drive
  • 4. So after illustrating of Problem Tree, its the time for Graph of Components, which represent the Elementary Operations and their numbers. In this case (Transport Activity) the graph is Linear but if we assume additional products in advanced analysis, it became more similar to Tree. ! ! ! Then we have to create the Table of Paths: ! 10 PHASES ! Then we have to find out Digram of Elementary Operations (EO’s) & Phases: ! ! ! ! ! ! ! ! ! ! ! ! ! ! So its time to drawing and identifying the PF’s & EO’s: ! ! ! ! ! ! ! ! ! ! ! Furthermore, the graph of Functions & Phases: As you see in graph, the functions 3, 4 and 5 are happening in two different phases. Here we are going to represent the Graph of Production Functions and the Work Sequence: NV VR VX VA VE L DOC. EX GA GE PF !4 NV VR VX VA VE L DO EX GA GE PF 12345678910 10 9 8 7 6 5 4 3 2 1 1° 2° 3° 4° 5° 6° 7° 8° 9° 10° PF7 PF4 PF5 PF3 PF1 PF6 PF4 PF5 PF3 PF2 PF GEGAEXDOCLVEVAVXVRNV PF’s EO’s 1 2 3 4 5 6 7 8 9 10 1 1 2 1 3 1 1 4 1 1 5 1 1 6 1 7 1 7 6 5 4 3 2 1 F’s/P’s 1° 2° 3° 4° 5° 6° 7° 8° 9° 10°
  • 5. Moreover before representing the final Work Sequence Layout, we have to create and explore the Table and Graph of Resources: However, you see the mass traffic of production functions behind the Resource 6. Do you remember who is responsible of 6th resource? Yes, you are right. He / she is Driver! So this means that the qualification of this resource is very important. Even you as a manager or as a controller is better to collaborate with driver, because efficiency and performance of this resource could seriously effect on the line of transport & logistic system. (Critical Point) ! Finally we arrived to the destination of this report! In the below figure we see the Work sequence and definite layout of the system. Critical point and bottle neck points are concentrated on R6. ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! R’s PF’s 1 2 3 4 5 6 7 8 9 1 1 1 2 3 4 1 5 1 6 1 1 1 1 1 !5 PF 1 PF 2 DM5 DM4 DM3 DM2 DM1 PF 7 PF 4 PF 5PF 3 PF 6 PF 4 PF 5 PF 3 R6 R6
  • 6. In addition, the Information Pattern of the company illustrate the flows of information between the DM’s. PAC (DM5) control all actors. Organization Chart illustrate the organizational position of 6th resource (driver) and the positions of his co-workers in the team of transport. STAFF and his staffs! (DM3 = Logistics sub-control) decide, order and control any movements. ! ! ! ! ! ! ! ! ! ! ! ! Resources: To write this paper we use books and websites has addressed in below. ✓ A. Villa, De Toni, Palazzolo; Gestione della produzione, Isedi, 2013 ✓ DHL web site ✓ Trasporto merci su strada, è una pubblicazione a cura di: ANFIA - Associazione Nazionale Filiera Industria Automobilistica – Area Studi e Statistiche Automobile Club d’Italia – Area Professionale Statistica ✓ Ministero delle Infrastrutture e dei Trasporti, DIPARTIMENTO PER I TRASPORTI, LA NAVIGAZIONE ED I SISTEMI INFORMATIVI E STATISTICI, DIREZIONE GENERALE PER I SISTEMI INFORMATIVI, STATISTICI E LA COMUNICAZIONE; UFFICIO DI STATISTICA, SISTEMA STATISTICO NAZIONALE; Conto Nazionale delle Infrastrutture e dei Trasporti ✓ Analisi e previsioni per il trasporto merci in Italia, © Confcommercio-Imprese per l’Italia ✓ Logistics and supply chain management: creating value-adding networks / Martin Christopher. -- 4th ed. PEARSON EDUCATION LIMITED ✓ O'Brien, Marakas; Introduction to information system; 16th edition ✓ Sajjad Khaksari Blog; http://italiancoaddress.blogspot.it !6 DM4 DM3 DM2 DM1 DM5 Information Pattern PAC STAFF LO LO LO LO LO Organization Chart