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Unit III: Advances in Manufacturing - Technological innovation in manufacturing, computer
integrated manufacturing, flexible manufacturing systems, group technology and cellular
manufacturing
Advances in Manufacturing
Technological innovation in manufacturing
The key types of innovation can be classified under the following categories:
1. Innovation in sourcing
2. Innovation in manufacturing processes
3. Management innovation
4. Innovation through technology
Innovation in sourcing
New components, new suppliers or an improved deal with the existing
suppliers could improve products and profits significantly. A number of
companies have integrated the suppliers into the manufacturing processes to
ensure online visibility on inventory at various stages and quality control.E-
auctions and reverse auctions to manage material costs are other examples
of increasing efficiency in procurement.
Innovation in manufacturing processes
Companies can innovate in the way products are developed or manufactured,
either within the firm or across the supply chain. Such innovations are termed
as‘ProcessInnovation’.Itistypicallyaimedatgarnering competitive advantage
through improved quality, reduced costs or reduced time-to-market. For example
one of the greatest innovations to impact manufacturing in the
20th century was the Assembly Line model for manufacturing cars, developed
by Henry Ford. The concept, however, did not change the product, but it
significantly and permanently changed the process for manufacturing and
delivering the product.
Management innovation
Management innovation refers to innovation in management principles and
processes that will eventually change the practice of what managers do, and
how they do it. Typically, such innovations have long lasting impact on the
organization. Innovation in Business model fallsunderthiscategory.Toyota’s
lean manufacturing model is a good example of such a practice. It not only
addressed key processes; but moved beyond the definition of Process
Innovation,byinvolvingafundamentalshiftinmanagementphilosophy.Toyota’s
model has transformed the way the manufacturing industry works
Innovation through technology

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Technology has been a tremendous driving force for innovation in businesses;
especially in the recent times. Many breakthrough concepts and development
in businesses have been primarily driven by the development of new
generation technology. New materials could improve products or their
packaging and presentation.
Computer-integrated manufacturing (CIM)
Computer-integrated manufacturing (CIM) is the manufacturing approach of
using computers to control the entire production process. This integration allows individual
processes to exchange information with each other and initiate actions. Although manufacturing
can be faster and less error-prone by the integration of computers, the main advantage is the
ability to create automated manufacturing processes. Typically CIM relies on closed-loop control
processes, based on real-time input from sensors. It is also known as flexible design and
manufacturing.
Computer-integrated manufacturing (CIM) refers to the use of computer-
controlled machineries and automation systems in manufacturing products. CIM combines
various technologies like computer-aided design (CAD) and computer-aided manufacturing
(CAM) to provide an error-free manufacturing process that reduces manual labor and automates
repetitive tasks. The CIM approach increases the speed of the manufacturing process and uses
real-time sensors and closed-loop control processes to automate the manufacturing process. It is
widely used in the automotive, aviation, space and ship-building industries.
CIM is the integration of all enterprise operations and activities around a common corporate
data repository.
It is the use of integrated systems and data communications coupled with new managerial
philosophies.
CIM is not a product that can be purchased andinstalled.
It is a way of thinking and solving problems.
This integration allows individual processes to exchange information with each other and
initiate actions.
CIM is a manufacturing approach that provides a complete automation of a manufacturing
facility. All the operations are controlled by computers and have a common storage and
distribution. The various processes involved in a CIM are listed as follows:
 Computer-aided design
 Prototype manufacture
 Determining the efficient method for manufacturing by calculating the costs and
considering the production methods, volume of products, storage and distribution
 Ordering of the necessary materials needed for the manufacturing process

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 Computer-aided manufacturing of the products with the help of computer numerical
controllers
 Quality controls at each phase of the development.
 Product assembly with the help of robots
 Quality check and automated storage
 Automatic distribution of products from the storage areas to awaiting lorries/trucks
 Automatic updating of logs, financial data and bills in the computer system
CIM is a combination of different applications and technologies like CAD, CAM, computer-
aided engineering, robotics, manufacturing resource planning and enterprise management
solutions. It can also be considered as an integration of all enterprise operations that work with a
common data repository.
The major components of CIM are as follows:
 Data storage, retrieval, manipulation and presentation mechanisms
 Real-time sensors for sensing the current state and for modifying processes
 Data processing algorithms
 Potential Benefits of CIM
Improved customer service
Improved quality
Shorter time to market with new products
Shorter flow time
Shorter vendor lead time
Reduced inventory levels
Improved schedule performance
Greater flexibility and responsiveness
Improved competitiveness
Lower total cost
Shorter customer lead time
Increase in manufacturing productivity
Decrease in work-in process inventory
 Key challenges
There are three major challenges for the development of a smoothly operating computer-
integrated manufacturing system:
Integration of components from different suppliers: When different machines, such as
CNC, conveyors and robots, are using different communications protocols. In the case of
AGVs (automated guided vehicles), even differing lengths of time for charging the batteries
may cause problems.
Data integrity: The higher the degree of automation, the more critical is the integrity of the
data used to control the machines. While the CIM system saves on labor of operating the

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machines, it requires extra human labor in ensuring that there are proper safeguards for the
data signals that are used to control the machines.
Process control: Computers may be used to assist the human operators of the
manufacturing facility, but there must always be a competent engineer on hand to handle
circumstances which could not be foreseen by the designers of the control software.
 Subsystems in computer integrated manufacturing
CAD (Computer-Aided Design) involves the use of computers to create design drawings
and product models.
CAE (Computer-Aided Engineering) is the broad usage of computer software to aid in
engineering tasks.
CAM (Computer-Aided Manufacturing) is the use of computer software to control machine
tools and related machinery in the manufacturing of work pieces.
CAPP (Computer-Aided Process Planning) is the use of computer technology to aid in the
process planning of a part or product, in manufacturing.
CAQ (Computer-Aided Quality Assurance) is the engineering application of computers and
computer controlled machines for the inspection of the quality of products.
PPC (Production Planning and Control) A production (or manufacturing) planning and
control (MPC) system is concerned with planning and controlling all aspects of
manufacturing, including materials, scheduling machines and people, and coordinating
suppliers and customers.
ERP (Enterprise Resource Planning) systems integrate internal and external management
information across an entire organization, embracing finance/accounting, manufacturing, and
sales and services.
 Technologies in CIM
 FMS (Flexible Manufacturing System)

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 ASRS (Automated Storage and Retrieval System)
 AGV (Automated Guided Vehicle)
 Automated conveyance systems Robotics
Flexible Manufacturing System
A flexible manufacturing system (FMS) is a method for producing goods that is
readily adaptable to changes in the product being manufactured, both in type and
quantity. Machines and computerized systems are configured to manufacture
different parts and handle varying levels of production. A flexible manufacturing
system (FMS) gives manufacturing firms an advantage to quickly change a
manufacturing environment to improve process efficiency and thus
lower production cost.
FMS: Two Categories of Flexibility
The flexibility of a FMS typically falls into two categories: machine flexibility and routing
flexibility. Machine flexibility refers to the system’s ability to produce new types of products,
and its ability to change the order in which operations are executed.
The second type of flexibility in a FMS, routing flexibility, refers to the system’s ability to use
two or more machines to perform the same task, and the system’s ability to handle large-scale
changes like significant increase in volume and/or capability.

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There are three levels of manufacturing flexibility.
(a) Basic flexibilities
 Machine flexibility - the ease with which a machine can process various operations
 Material handling flexibility - a measure of the ease with which different part types can
be transported and properly positioned at the various machine tools in a system
 Operation flexibility - a measure of the ease with which alternative operation sequences
can be used for processing a part type
(b) System flexibilities
 Volume flexibility - a measure of a system’s capability to be operated profitably at
different volumes of the existing part types
 Expansion flexibility - the ability to build a system and expand it incrementally
 Routing flexibility - a measure of the alternative paths that a part can effectively follow
through a system for a given process plan
 Process flexibility - a measure of the volume of the set of part types that a system can
produce without incurring any setup
 Product flexibility - the volume of the set of part types that can be manufactured in a
system with minor setup
(c) Aggregate flexibilities
 Program flexibility - the ability of a system to run for reasonably long periods without
external intervention

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 Production flexibility - the volume of the set of part types that a system can produce
without major investment in capital equipment
 Market flexibility - the ability of a system to efficiently adapt to changing market
conditions
Advantages
 Faster, lower- cost changes from one part to another which will improve capital
utilization
 Lower direct labor cost, due to the reduction in number of workers
 Reduced inventory, due to the planning and programming precision
 Consistent and better quality, due to the automated control
 Lower cost/unit of output, due to the greater productivity using the same number of
workers
 Savings from the indirect labor, from reduced errors, rework, repairs and rejects
Disadvantages
 Limited ability to adapt to changes in product or product mix (ex. machines are of limited
capacity and the tooling necessary for products, even of the same family, is not always
feasible in a given FMS)
 Substantial pre-planning activity
 Expensive, costing millions of dollars
 Technological problems of exact component positioning and precise timing necessary to
process a component
 Sophisticated manufacturing systems
Group technology and cellular manufacturing
 Cellular manufacturing
Cells are created in a workplace to facilitate flow. This is accomplished by bringing
together operations (or machines, or people) involved in a processing sequence of a products
natural flow and grouping them close to one another, distinct from other groups. This grouping is
called a cell.
Cellular manufacturing is a process of manufacturing which is a subsection of just-in-time
manufacturing and lean manufacturing encompassing group technology. The goal of cellular
manufacturing is to move as quickly as possible, make a wide variety of similar products, while
making as little waste as possible. Cellular manufacturing involves the use of multiple cells in
an assembly line fashion. Each of these cells is composed of one or multiple different machines
which accomplish a certain task. The product moves from one cell to the next, each station
completing part of the manufacturing process.

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(A manufacturing approach in which equipment and workstations are arranged to facilitate small
lot, continuous flow production. In a manufacturing cell, all operations that are necessary to
produce a component or sub assembly are performed in close proximity, often times in a U-
shaped layout, thus allowing for quick feedback between operations when problems and other
issues arise. Workers in manufacturing cells are typically cross trained and able to perform
multiple tasks as needed.)
Cellular manufacturing is a manufacturing process that produces families of parts within a single
line or cell of machines operated by machinists who work only within the line or cell. A cell is a
small scale, clearly-defined production unit within a larger factory. This unit has complete
responsibility for producing a family of like parts or a product. All necessary machines and
manpower are contained within this cell, thus giving it a degree of operational autonomy. Each
worker is expected to have mastered a full range of operating skills required by his or her cell.
Therefore, systematic job rotation and training are necessary conditions for effective cell
development. Complete worker training is needed to ensure that flexible worker assignments can
be fulfilled.
Cellular manufacturing, which is actually an application of group technology, has been described
as a stepping stone to achieving world class manufacturing status. The objective of cellular
manufacturing is to design cells in such a way that some measure of performance is optimized.
This measure of performance could be productivity, cycle time, or some other logistics measure.
Measures seen in practice include pieces per man hour, unit cost, on-time delivery, lead time,
defect rates, and percentage of parts made cell-complete.
This process involves placing a cluster of carefully selected sets of functionally dissimilar
machines in close proximity to each other. The result is small, stand-alone manufacturing units
dedicated to the production of a set or family of parts—or essentially, a miniature version of a
plant layout.
BENEFITS OF CELLULAR MANUFACTURING
Many firms utilizing cellular manufacturing have reported near immediate improvements in
performance, with only relatively minor adverse effects. Cited improvements which seem to
have occurred fairly quickly include reductions in work-in-process, finished goods, lead time,
late orders, scrap, direct labor, and workspace.
In particular, production and quality control is enhanced. By breaking the factory into small,
homogeneous and cohesive productive units, production and quality control is made easier. Cells
that are not performing according to volume and quality targets can be easily isolated, since the
parts/products affected can be traced to a single cell. Also, because the productive units are
small, the search for the root of problems is made easier.
Quality parameters and control procedures can be dovetailed to the particular requirements of the
parts or work pieces specific to a certain cell. By focusing quality control activity on a particular
production unit or part type, the cell can quickly master the necessary quality requirements.

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Control is always enhanced when productive units are kept at a minimum operating scale, which
is what cellular manufacturing provides.
When production is structured using cellular manufacturing logic, flow systematization is
possible. Grouping of parts or products into sets or families reveals which ones are more or less
amenable to continuous, coupled flow. Parts that are standardized and common to many products
will have very low changeover times, and thus, are quickly convertible to continuous, line-flow
production. Products that are low-volume, high-variety and require longer set-up times can be
managed so that they evolve toward a line flow.
Cells can be designed to exploit the characteristics peculiar to each part family so as to optimize
the flow for each cell and for groups of cells as a whole. Flow systematization can be done one
cell at a time so as to avoid large disruptions in operations. Then the cells that were easy to
systemize can provide experience that can be exploited when the more difficult systematization
projects occur later. Cells that have been changed to a line flow will invariably show superior
performance in the areas of quality, throughput time, and cost, which can lead to eventual plant
wide benefit.
Work flow that is adapted to the unique requirements of each product or part allows the plant to
produce high-volume and high-variety products simultaneously. Since the cell structure
integrates both worker and product versatility into a single unit, it has the potential to attain
maximum system flexibility while maintaining factory focus. Cells can be designed around
single products, product groups, unique parts, part families, or whatever unique market
requirements are identified. For the same part, there may be one high-volume, standardized
design and one low-volume customized design. Cells can be built specifically for any of these
with a focus on the individual marketing or production requirement called for by the individual
product or part.
Systematic job rotation and training in multiple skills also make possible quick, flexible work
assignments that can be used to alleviate bottlenecks occurring within the cell. Since normal cell
operation requires the workers to master all the skills internal to the cell, little or no additional
training should be needed when workers have to be redeployed in response to volume or sales
mix changes. When it is routine for workers to learn new skills, they can be easily transferred to
another job within the cell or possibly even to an entirely different production unit. Without this
worker flexibility and versatility, there can be no real production system flexibility.
LIMITATIONS
While its benefits have been well documented, it should also be noted that some have argued that
implementing cellular manufacturing could lead to a decrease in manufacturing flexibility. It is
felt that conversion to cells may cause some loss in routing flexibility, which could then impact
the viability of cell use. Obtaining balance among cells is also more difficult than for flow or job
shops. Flow shops have relatively fixed capacity, and job shops can draw from a pool of skilled

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labor so balance isn't that much of a problem. By contrast, with cells, if demand diminishes
greatly, it may be necessary to break up that cell and redistribute the equipment or reform the
families.
Also, some researchers have warned that the benefits of cellular manufacturing could deteriorate
over time due to ongoing changes in the production environment. Finally, it must be noted that
conversion to cellular manufacturing can involve the costly realignment of equipment. The
burden lies with the manager to determine if the costs of switching from a process layout to a
cellular one outweigh the costs of the inefficiencies and inflexibility of conventional plant
layouts.
 Group technology
Group technology or GT is a manufacturing technique in which parts having similarities in
geometry, manufacturing process and/or functions are manufactured in one location using a
small number of machines or processes. GT is based on a general principle that many
problems are similar and by grouping similar problems, a single solution can be found to a
set of problems, thus saving time and effort.
The group of similar parts is known as part family and the group of
machineries used to process an individual part family is known as machine cell. It is not
necessary for each part of a part family to be processed by every machine of corresponding
machine cell. This type of manufacturing in which a part family is produced by a machine
cell is known as cellular manufacturing. The manufacturing efficiencies are generally
increased by employing GT because the required operations may be confined to only a small
cell and thus avoiding the need for transportation of in-process parts.
Group technology is an approach in which similar parts are identified and
grouped together in order to take advantage of the similarities in design and production.
Similarities among parts permit them to be classified into part families.
For example:

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• A plant producing 10000 different part numbers may be able to group the vast majority of
these parts into 30-40 distinct families
• It is reasonable to believe that the processing of each member of a given family is similar
and this should result in manufacturing efficiencies
• The efficiencies are generally achieved by arranging the production equipment into
machine groups or cells to facilitate work flow
• Grouping the production equipment into machine cells where each cell specializes in the
production of a part family is called cellular manufacturing.
A manufacturing philosophy in which similar parts are identified grouped together to take
advantage of their similarities in design and production.
It contributes to the integration of CAD (Computer Aided Design) and CAM (Computer
Aided Manufacturing).
The group of similar parts is known as part family and the group of machineries used to
process an individual part family is known as machine cell.
An approach to manufacturing in which similar parts are identified and grouped together in order
to take advantage of their similarities in design and production
• Similarities among parts permit them to be classified into part families
• In each part family, processing steps are similar
• The improvement is typically achieved by organizing the production facilities into
manufacturing cells that specialize in production of certain part families.
 OBJECTIVES OF GROUP TECHNOLOGY
• Reduce average lot size
• Increase part variety
• Increase variety of materials
• Achieve close tolerance
• Improve scheduling
• Reduce tooling
• Increase equipment utilization
 BENEFITS OF GROUP TECHNOLOGY
• Standardization of tooling, fixtures, and setups is encouraged
• Material handling is reduced
• Parts are moved within a machine cell rather than entire factory
• Process planning and production scheduling are simplified
• Work-in-process and manufacturing lead time are reduced
• Improved worker satisfaction in a GT cell
• Higher quality work

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