Process selection for manufacturing fms

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Process selection for manufacturing fms

  1. 1. PROCESS SELECTIONIN MANUFACTURING<br />Prof. Kaushik Paul<br />
  2. 2. 2<br />OBJECTIVES<br />The Product & Process Design framework<br />Types of Manufacturing Processes<br />The Product-Process design matrix<br />The cost perspective of operations <br />A Typology of Operations using the 4V’s <br />Managing Flexibility and variety in operations <br />Process Flow Design<br />Global Product Design and Manufacturing<br />
  3. 3. 3<br />Preliminary Design<br />Product Planning & screening new ideas<br />Concept Development & Business analysis<br />The design methodology<br />Evaluation and Improvement<br />Prototyping and final design<br />PRODUCT AND PROCESS DESIGN<br />Processes that Design Products<br /> and Services<br />Processes that Produce Products and Services<br />Supply Network Design<br />Layout <br />and Flow<br />Process Technology<br />Job <br />Design<br />
  4. 4. 4<br />TYPES OF MANUFACTURING PROCESSES<br />Conversion (ex. Iron to steel)<br />Fabrication (ex. Cloth to clothes) <br />Assembly (ex. Parts to components)<br />Testing (ex. For quality of products)<br />
  5. 5. 5<br />THE PRODUCT-PROCESS DESIGN MATRIX<br />Job shop (ex. Copy center making a single copy of a student term paper)<br />Batch shop (ex. Copy center making 10,000 copies of an ad piece for a business)<br />Assembly Line (ex. Automobile manufacturer)<br />Continuous Flow (ex. Petroleum manufacturer) <br />
  6. 6. 6<br />Few<br />Major<br />Products,<br />Higher<br />Volume<br />High<br />Volume,<br />High<br />Standard-<br />ization<br />Low<br />Volume,<br />One of a<br />Kind<br />Multiple<br />Products,<br />Low<br />Volume<br />Flexibility (High)<br />Unit Cost (High)<br />I.<br />Job<br />Shop<br />Commercial<br />Printer<br />French Restaurant<br />II.<br />Batch<br />Heavy<br />Equipment<br />III.<br />Assembly<br />Line<br />Automobile<br />Assembly<br />Burger King<br />IV.<br />Continuous<br />Flow<br />Sugar<br />Refinery<br />Flexibility (Low)<br />Unit Cost (Low)<br />These are the major stages of product and process life cycles<br />
  7. 7. 7<br />PROJECT PROCESSES<br />One-off, complex, large scale, high work content “products”<br />Speciallymade, every one customized<br />Defined start and finish: time, quality and cost objectives<br />Many different skills have to be coordinated <br />
  8. 8. 8<br />THE JOB SHOP<br />Very small quantities: “one-offs”, or only a few required<br />Speciallymade. High variety, low repetition. “Stranger products”<br />Skill requirements are usually very broad<br />Skilled jobber, or team of jobbers complete whole product<br />
  9. 9. 9<br />BATCH PROCESSES<br />Higher volumes and lower variety than for jobbing<br />Standard products, repeating demand. But can make specials<br />Specialized, narrower skills<br />Set-ups (changeovers) at each stage of production<br />
  10. 10. 10<br />ASSEMBLY LINE/MASS PRODUCSTION PROCESSES<br />Higher volumes than Batch<br />Standard, repeat products (“runners”)<br />Low and/or narrow skills<br />No set-ups, or almost instantaneous ones<br />
  11. 11. 11<br />CONTINUOUS PROCESS<br />Extremely high volumes and low variety: often single product<br />Standard, repeat products (“runners”)<br />Highly capital-intensive and automated<br />Few changeovers required<br />Difficult and expensive to start and stop the process<br />
  12. 12. 12<br />MANUFACTURING PROCESS TYPES<br />SERVICE PROCESS TYPES<br />High<br />High<br />Project<br />Professional service<br />Jobbing<br />Service shop<br />Batch<br />Variety<br />Variety<br />Mass<br />Mass service<br />Contin-<br />-uous<br />Low<br />Low<br />High<br />Volume<br />Low<br />High<br />Volume<br />Low<br />
  13. 13. 13<br />THE COST PERSPECTIVE<br />The cost of producing products and services is obviously influenced by many factors such as input costs, but two important sets are…..<br />The 4 V’s<br />Volume<br />Variety<br />Variation<br />Visibility <br />The internal performance of the operation at<br />Quality<br />Speed<br />Dependability<br />Flexibility<br />
  14. 14. 14<br />A TYPOLOGY OF OPERATIONS<br />IMPLICATIONS<br />IMPLICATIONS<br />High repeatability<br />Specialization<br />Systemization<br />Capital intensive<br />Low unit cost<br />Low repetition<br />Each staff member performs more of job<br />Less systemization<br />High unit costs<br />Volume<br />High<br />Low<br />Well defined<br />Routine<br />Standardized<br />Regular<br />Low unit costs<br />Flexible<br />Complex<br />Match customer needs<br />High unit cost<br />Variety<br />Low<br />High<br />Stable<br />Routine<br />Predictable<br />High utilization<br />Low unit costs<br />Changing capacity<br />Anticipation<br />Flexibility<br />In touch with demand<br />High unit cost<br />Variation in demand<br />Low<br />High<br />Time lag between production and consumption<br />Standardized<br />Low contact skills<br />High staff utilization<br />Centralization<br />Low unit costs<br />Short waiting tolerance<br />Satisfaction governed by customer perception<br />Customer contact skills needed<br />Received variety is high<br />High unit cost<br />Visibility<br />High<br />Low<br />
  15. 15. 15<br />FLEXIBILITY<br />Flexibility has several distinct meanings but is always associated with an operation’s ability to change<br />Change what ?<br />The products and services it brings to the market – Product/service flexibility<br />The mix of products and services it produces at any one time – Mix flexibility<br />The volume of products and services it produces –Volume flexibility<br />The delivery time of its products and services –Delivery flexibility<br />
  16. 16. 16<br />VARIETY<br />Marketing Viewpoint<br />Customer Choice <br />Competitive<br />Confusion <br />Duplication <br />Training Difficulties <br />High Advertising Costs<br />)<br />
  17. 17. 17<br />VARIETY<br />Operations Viewpoint<br />Shorter Production Runs <br />Higher Costs <br />Greater Complexity <br />More Difficulty in<br />Specialising <br />Equipment <br />People <br />
  18. 18. 18<br />REMOVAL OF ROBOTS AT IBM, GREENOCK<br />In 1986 IBM at Greenock spent £6 million setting up a robotic assembly line for PC monitors. Yet by 1993, the company had decided to dispense with the robot and increase line manning. Before 1993 some 25 assembly staff, with their robots made 550 monitors per shift. Afterwards, 50 assembly workers made 700.<br />The reasons for the change were the rapid pace of technological development and the different safety standards that had been imposed in different countries.<br /> Both factors caused the product variety to increase and the line was not flexible enough to cope. To alter the product on the line, it had to be shut down and all the tools and holding mechanisms had to be changed. The remaining robots packed the items in cartons for shipping.<br />
  19. 19. 19<br />VARIETY MANAGEMENT<br />Reduce The Unnecessary<br />Control The Necessary<br />Identification<br />Classification : Rational Grouping <br />& Coding & Arrangement<br />Simplification : The Reduction of<br /> Unnecessary Variety<br />Standardisation: The Control of<br /> Necessary Variety<br />Specialisation: The Concentration of<br /> Effort where Special<br /> Knowledge is available<br />(DVP-15)<br />
  20. 20. 20<br />PROCESS FLOW DESIGN<br />A process flow design can be defined as a mapping of the specific processes that raw materials, parts, and subassemblies follow as they move through a plant<br />The most common tools to conduct a process flow design include assembly drawings, assembly charts, and operation and route sheets<br />
  21. 21. 21<br />Lockring<br />4<br />Spacer, detent spring<br />5<br />A-2<br />SA-2<br />Rivets (2)<br />6<br />Spring-detent<br />7<br />A-5<br />Component/Assy Operation<br />Inspection<br />EXAMPLE: ASSEMBLY CHART (GOZINTO)<br />
  22. 22. 22<br />EXAMPLE: PROCESS FLOW CHART<br />Material Received from Supplier<br />No, Continue…<br />Inspect Material for Defects<br />Defects found?<br />Yes<br />Return to Supplier for Credit<br />
  23. 23. 23<br />BREAK-EVEN ANALYSIS<br />A standard approach to choosing among alternative processes or equipment<br />Model seeks to determine the point in units produced (and sold) where we will start making profit on the process or equipment <br />Model seeks to determine the point in units produced (and sold) where total revenue and total cost are equal <br />
  24. 24. 24<br />BREAK-EVEN ANALYSIS (CONTINUED)<br />Break-even Demand=<br />Purchase cost of process or equipment<br /> Price per unit - Cost per unit<br /> or<br />Total fixed costs of process or equipment <br />Unit price to customer - Variable costs per unit<br />This formula can be used to find any of its components algebraically if the other parameters are known<br />
  25. 25. 25<br />BREAK-EVEN ANALYSIS (CONTINUED)<br />Example: Suppose you want to purchase a new computer that will cost $5,000. It will be used to process written orders from customers who will pay $25 each for the service. The cost of labor, electricity and the form used to place the order is $5 per customer. How many customers will we need to serve to permit the total revenue to break-even with our costs?<br />Break-even Demand:<br /> = Total fixed costs of process or equip.<br /> Unit price to customer – Variable costs<br /> =5,000/(25-5)<br /> =250 customers<br />
  26. 26. 26<br />VIRTUAL FACTORY<br /> A virtual factory can be defined as a manufacturing operation where activities are carried out not in one central plant, but in multiple locations by suppliers and partner firms as part of a strategic alliance<br />
  27. 27. 27<br />GLOBAL PRODUCT DESIGN AND MANUFACTURING STRATEGIES<br />Joint Ventures<br />Global Product Design Strategy<br />
  28. 28. References: 1) ‘Operations Management’ By Nigel Slack et al. 2e2) ‘Operations Management for Competitive Advantage’ By Chase, Jacobs & Aquilano, 10e<br />HOPE YOU ENJOYED THE CLASS. QUESTIONS PLEASE<br />THANK YOU<br />

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