JH - 2
Manufacturing is the process of converting raw materials, components, or parts into finished goods that
meet a customers expectations or specifications. It commonly employs a man-machine setup with division
of labor in a large scale production.
What is Manufacturing?
History & Development :
• During early times manufacturing was usually carried out by a single skilled artisan with assistants.
Training was by apprenticeship.
• Before the Industrial Revolution, most manufacturing occurred in rural areas, where household-based
manufacturing served as a supplemental subsistence strategy to agriculture. Entrepreneurs organized a
number of manufacturing households into a single enterprise through the Putting-out system (In putting-out,
work is contracted by a central agent to subcontractors who complete the work in off-site facilities, either in
their own homes or in workshops with multiple craftsmen).
The Industrial Revolution:
The Industrial Revolution was the transition to new manufacturing processes in the period from about 1760 -1840.
The transition includes hand production methods to Machines, new chemical manufacturing and iron production
processes, the increasing use of steam power and the development of machine tools and change over from usage of
wood and other bio fuels to Coal.
The Major Technological Developments:
The Major technological developments during the industrial revolution took place in the sectors of :
•Paper machine &
•Clint Order – The phase where the requirement is
placed by the customer to the supplier.
•Design – Road map or a strategic approach to achieve
the unique expectations by defining the various
parameters such as Specification, plan, Cost,
processes, Safety etc.,.
•Fabricate – The process in which all the ideas that
have been designed are put into practical implication
•Test – The fabricated final product needs to be tested
to ensure it works properly and that they perform as
• Warehousing – The finished goods is finally packed
and stocked at a warehouse before being dispatched
• Distribute – The Finished goods needs to be shipped
to the customer through dispatching.
Manufacturing methods can be classified into the below categories,
• Mass Production
• Discreet Manufacturing.
Continuous Production – High Volume / Low complexity
Batch production / Assemble to order manufacturing – Low volume / High Complexity
• Process Manufacturing.
• Repetitive Manufacturing.
• Assemble to order Manufacturing.
• Job Production or One off Production .
Manufacturing Methods Production Techniques
Manufacturing Methods are the various ways of producing
finished goods depending on the intensity of market demand
& customer requirement.
Production Techniques are the methods used in
manufacturing process to produce finished goods
depending on the type of manufacturing
• Discrete manufacturing is the process of producing distinct items. Automobiles, Furniture's, Toys,
Mobiles & Aircraft manufacturing sectors are good examples of discrete manufacturing.
• The resulting products are easily identifiable and differ greatly from process-manufacturing where the
products are undifferentiated for example oil, natural gas and salt.
• This kind of manufacturing is often characterized by
individual or separate unit production.
• Units can be produced in low volume with very
high complexity or high volumes of low complexity.
Low volume/high complexity
Low volume/high complexity production results in the
need for an extremely flexible manufacturing system that
can improve quality and time-to-market speed while
Low volume/high complexity
High volume/low complexity
High volume/low complexity production puts high
premiums on inventory control, lead times and reducing
or limiting materials costs and waste.
The processes deployed in discrete manufacturing
are not continuous in nature. Each process can be
individually started or stopped and can be run at
varying production rates. The final product may be
produced out of single or multiple inputs.
High volume/low complexity
Producing a STEEL structure will need only one type of raw material - steel. Producing a mobile phone requires
many different inputs, The plastic case, LCD display, the mother board, PVC keypad, sockets, cables are made
from different materials, at different places.
Process manufacturing is the branch of manufacturing that is associated with formulas and manufacturing
recipes, and can be contrasted with Discrete Manufacturing, which is concerned with bills of material and routing.
Process manufacturing like production of paper or petroleum refining, where the end product is obtained by a
continuous process or a set of continuous processes.
Simpler definition of Process manufacturing is once
an output is produced by this process, it cannot be
distilled back to its basic components.
For instance consider a can of soda cannot be returned to
its basic components such as carbonated water, citric
acid, Potassium benzoate, aspartame and other
ingredients. A plastic card manufactured cannot be
returned to its basic components like PVR sheets,
Where as a car or computer, on the other hand, can be
disassembled and its components, to a large extent can be
returned to stock.
Discrete Manufacturing process manufacturing
It is the process of producing distinctive items through group
or batch production
The end product is obtained by continuous process or a
series of continuous processes
Discrete manufacturing process allows for temporary
stoppage of work in one area without affecting the entire unit
continuous process manufacturing requires that entire
production process be stopped.
In discrete manufacturing the manufactured component can
be dissembled to a large extant and returned to stock.
Where as in process manufacturing once when the output is
produced it cant be distilled back to its basic component or
Examples of Discrete manufacturing are Automobile,
Examples of Process manufacturing are Oil, Natural gas,
Beverage, pharmaceuticals etc.,
Batch methods can result in the build up of significant
“work in progress” or stocks (i.e. completed batches waiting
for their turn to be worked on in the next operation). This
increases costs as it takes up space and raises the chance of
damage to stock.
The main disadvantage is that with so much machinery it is
very difficult to alter the production process. This makes
production inflexible and means that all products have to be
very similar or standardised and cannot be tailored to
Repetitive manufacturing is period based planning and not based on orders. Normally same products will be manufactured
over longer periods of time. Products will not change frequently. A total quantity is produced according to a certain
production rate over a certain period of time. Costs are collected periodically at a product cost collector.
It involves a steady flow and simplified routing through production lines. The routing of the individual products are very
similar, and also the components are often staged at the production lines without reference to a particular order. The
confirmations (back flushes) are usually executed periodically with no reference to an order (for example, all the quantities
produced in one shift).
Back flushing in Repetitive Manufacturing is used to record the
work progress on the production line in the system.
For this purpose, a final back flush is usually carried out at the end of the production line
whereby the following processes can be carried out separately:
• Posting goods receipts for finished parts
• Posting goods issues for components
• Reducing planned orders or production quantities
• Posting production costs to the product cost collector
• Updating statistics in the Logistics Information System (LIS).
• such as, the goods receipt statistics or the statistics on material consumption, for example.
Discrete Manufacturing Repetitive Manufacturing
Order-based production (Production in individual production orders Period-based production (Production with certain quantities per
Products change frequently Products produced remain unchanged over a long periods of time
Varying sequence of work centers (complex routing) Steady flow through production (simplified routing)
Semi finished products often put into interim storage Semi finished products often directly processed without interim
Components are staged with reference to order Components are staged at lines periodically and anonymously
Status processing Reduced control effort (no status procedures)
Completion confirmation (Back flush) for individual operations or
The confirmations (back flushes) are usually executed periodically
with no reference to an order
Order based cost controlling Period based cost controlling
Back flushing ?
Back-flushing means deduction( reducing) of required quantity from Inventory on hand quantity.
In case of push supply type you have to deliver materials to shop floor and deduct quantity yourself .In case of pull system
back-flushing you have to delivery materials to shop floor and need not deduct quantity yourself but system automatically
deducts quantity from sub-inventory-locator on hand quantity when any assembly or an operation is completed in WIP
module manufacturing process.
Once any assembly is completed in WIP, please go to inventory
module and check the sub inventory and locator quantity for the
item for which assembly is completed. You will observe that on
hand quantity has reduced .
Example : If total was 100 numbers and 10 numbers are pulled,
by WIP assembly or operation pull, balance will be 90 numbers
in the sub inventory which will be updated by system when the
assembled component moves on to next stage automatically.
Assemble to Order Manufacturing
Assemble to Order is a production approach where products are not built until a confirmed order for products is received.
It is one of the oldest styles of manufacturing and is the most appropriate approach used for highly customized or low
A customized YATCH made on the basis of Assemble to Order
This approach is considered good for highly
configured products, e.g. Automobiles, Air-crafts,
Computer servers or for products where holding
inventories is very expensive, e.g. Shipbuilding
(YATCH Manufacturing), and is a demand driven
production approach where a product is scheduled
and built in response to a confirmed order received
for it from a final customer.
The main advantages of the BTO approach in
environments of high product variety is the ability
to supply the customer with the exact product
specification required, the reduction in sales
discounts and finished good inventory, as well a
reduction in stock obsolescence risk.
Types of Production
production. Batch Production.
Job Or One off
Continuous production is a flow production method used to manufacture, produce, or process materials without
interruption. Continuous production is called a continuous process or a continuous flow process because the
materials, either dry bulk or fluids that are being processed are continuously in motion, undergoing chemical
reactions or subject to mechanical or heat treatment.
Continuous usually means operating 24 hours per day, seven days per week with infrequent maintenance shutdowns, such as
semi-annual or annual. Some chemical plants can operate for more than one or two years without a shutdown. Blast furnaces
can run eight to ten years without stopping.
Some common continuous processes are the following:
• Oil refining.
• Synthetic Fibres.
• Pulp & Paper.
• Blast Furnace (iron).
• Metal smelting.
• Power Stations.
• Natural gas processing
Batch production is a technique used in manufacturing, in which the object in question is created stage by stage over a
series of workstations.
Batch production is most common in bakeries and in the manufacture of sports shoes, pharmaceutical ingredients, purifying
water (APIs), inks, paints and adhesives.
It can reduce initial capital outlay (the cost of setting up the
machines) because a single production line can be used to
produce several products. As shown in the example, batch
production can be useful for small businesses who cannot afford
to run continuous production lines. If a retailer buys a batch of a
product that does not sell, then the producer can cease
production without having to sustain huge losses. Batch
production is also useful for a factory that makes seasonal
items, products for which it is difficult to forecast demand, a
trial run for production, or products that have a high profit
Job Production or One off Production
Job production, sometimes called jobbing or one-off production, involves producing custom work, such as a one-off
product for a specific customer or a small batch of work in quantities usually less than those of mass-market products.
Job production is most often associated with classical Craft production, small firms (making railings for a specific house,
building/repairing a computer for a specific customer, making flower arrangements for a specific wedding etc.) but large
firms use job production too. Examples include:
• Construction of bridges
• Building a new factory
• Designing and implementing an advertising campaign
• Auditing the accounts of a large Public limited company
• Installing machinery in a factory
• Machining a batch of parts per a CAD drawing supplied by a
Fabrication Shops and machine shops whose work is primarily
of the job production type are often called job shops
• Can provide emergency parts or services, such as quickly making a machine part that would take a long time to
• Can provide parts or services for machinery or systems that are otherwise not available, as when the original
supplier no longer supports the product or goes out of business (orphaned).
• Work is generally of a high quality.
• A high level of customisation is possible to meet the customer's exact requirements.
• Significant flexibility is possible, especially when compared to mass production workers can be easily motivated
due to the skilled nature of the work they are performing
• Higher cost of production.
• Re-engineering: sometimes engineering drawings or an engineering assessment, including calculations or
specifications, needs to be made before the work can be done.
• Requires the use of specialist labour (compare with the repetitive, low-skilled jobs in mass production)
• slow compared to other methods (batch production and mass production)