Chapters 4 & 5 Slides (Manufacturing & Service Processes)

Chapters 4 & 5 Slides (Manufacturing & Service Processes)

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Unformatted text preview: Conversion Fabrication Assembly Testing “Advances in engineering increase and improve the alternatives available” Conversion •Raw Lumber •Molten Glass Fabrication •Frame Wood •Window Panes Assembly Assembled Windows Business View • What conversion steps must be done? • What are the production volumes like? • How similar are the various products we make (can we standardize)? • If the product is customized, how late in the process does it occur? (in order of decreasing volume) • Continuous Flow • Production Line • Batch (High Volume) • Batch (Low Volume) • Job Shop • Project Process Types Some Examples of Batch Manufacturing • Numerical control (NC) machines – Automated processing of entire batch – Machining center - multiple NC machines • Flexible manufacturing systems (FMS) – Dedicated to families of parts – NC and automated handling • Group technology – Similar in concept to FMS, but not as much automation Mixing Together the Process Types ... Spindles Arms and Legs BATCH for fabricating parts ... ASSEMBLY LINE for putting together final product Seats Comparing Process Types... Job Shop Volume Variety Skills Advantage Very Low Very High Broad Flexibility Batch Line High Low Limited Price and Delivery Product Customer Demand Volume No. of different products products System Equipment Type of work Skills Advantages Disadvantages advantages Example PROJECT Unique Unique One-at-a-time Infrequent Very low Infinite Long-term Varied Contracts Experts, craftspeople Custom work, technology Nonrepetitive, small customer base, expensive Construction, shipbuilding shipbuilding BATCH BATCH Made to order Made Few individuals Fluctuates Low to med Many, varied Discrete, job General-purpose Fabrication Wide range of skills Flexibility, quality Costly, slow, difficult to manage Machine shops, Machine printing, bakery MASS MASS Made to stock Mass market Stable High Few Repetitive, Repetitive, assembly lines Special-purpose Assembly Limited range of skills Efficiency, speed, low cost Capital investment, llack of ack responsiveness Autos, TV’s, Autos, fast food CONTINUOUS CONTINUOUS Commodity Commodity Mass market Very stable Very high Very low Process industry Process Highly automated Mix, treat, refine Equipment monitors Highly efficient large capacity Difficult to change change Paint, chemicals, Paint, food One of a Kind Low Volume Job Shop Batch Line Product – Process Matrix Multiple Products Moderate Volumes Few Major Products High Volume Commodity Products Very Poor Fit Very Poor Fit Life-Cycle Planning Framework Introduction Stage Growth Stage M aturity Stage Decline Stage •High product availability •Flexibility to handle variation •Availability •Achieve breakeven volumes as soon as possible Less need for flexibility More selective, targeted efforts Value-added service Total M arket Sales Tim e Implications • What happens as companies follow products through their life cycles? What is “Customization”? An operations-centric view: “Customization occurs when a customer’s unique requirements directly affect the timing and nature of operations and supply chain activities” Make-to-Order Windows Off-line Activities • • • • Design Buy Materials Fabricate parts Assemble On-Line Activities • • • • Lead times? Customizability? Price? What type of manufacturing? • Sell windows • Ship windows ETO SOURCING MATERIALS MTO ATO ASSEMBLY/ FINISHING MTS DESIGN FABRICATION DISTRIBUTION Definitions: Customization Point Model I ETO – engineer to order MTO – make to order ATO – assemble-to-order MTS – make to stock Upstream: before the customization point, “offline” activities Customization Point Model II Manufacturing Systems Design Upstream Downstream Performance objectives Technology Investment Organization structure Job differentiation Integration Discretion Efficiency Productivity, consistency Mechanistic High Formal Low Responsive ness Flexibility Organic Low Informal High Difficulty versus Customization M ANUFACTURING VIEW LOW DIFFICULTY ER HIGHER DIFFICULTY BASEBALL CAP WITH ARKANSAS RAZORBACKS LOGO AND SCHOOL COLORS ON IT (ETO) HIGHER CUSTOMIZATION BASEBALL CAP WITH SCHOOL NAME ON IT (MTO) M ARKETING VIEW LOW CUSTOMIZATION ER PLAIN BASEBALL CAP (MTS) PLAIN BASEBALL CAP IN DIFFERENT COLORS (ATO) Services . . . • • • • • Process and “product” are inseparable Marketing and sales often tightly integrated Customer often part of the process Performance metrics can be harder to define Nevertheless: – Focus and process choices / trade-offs still apply Degree of Customer Contact Low Contact • “off-line” • Can locate for efficiency • Can smooth out the workload Check clearing, mail sorting High Contact • “on-line” • Can locate for easy access • Flexibility to respond to customers • Harder to manage Hospitals, food service Classifying Services “Front Room” versus “Back Room” Front room – what the customer can see Managed for flexibility and customer service Customer lobbies, bank teller, receptionist Back room – what the customer does not see Managed for efficiency and Productivity Package sorting, car repair, blood test analysis, accounting department Designing Services • Selecting a service focus – Like manufacturing processes, different services have strengths and weaknesses • Key is to design a service process that meets the needs of targeted customers • The “service package” A Cubical Model of Services (Three Dimensions) Nature of the Service Primarily Physical Package Activities (Airline, trucking firm) Primarily Intangible Activities (Law firm, software developer) Higher Customization (Full-service car repair shop) Higher Contact (Physical therapist) Degree of Customization Lower Customization (Quick-change oil shop) Lower Contact (Mail sorting) Degree of Customer Contact Community Hospital PHYSICAL Public Hospital SERVICE PACKAGE HIGH CONTACT INTANGIBLE LOW HIGH LOW CUSTOMIZATION Birthing Center PHYSICAL Public Hospital SERVICE PACKAGE HIGH CONTACT INTANGIBLE LOW HIGH LOW CUSTOMIZATION Layout Decision Models • Product-based layout – Usually best for a line operation – Cycle time a primary measure • Functional layout – Usually best for a job shop – Distance between steps a measure • Cellular layout – Usually best for batch processes Product-Based Layout Line Balancing • Improve ‘Takt’ time: – – – – Reduce idle time Reduce setup time Reduce unnecessary movement Identify ‘bottlenecks’ available production time Takt time = required output rate Functional Layout A. Minimize the total distance traveled B. Minimize information flow for decisions C. Use electronic data interchange (EDI) to allow more flexibility for accomplishing A and B Enterprise Software Collect, analyze, and make decisions based on Collect, data data ERP - Enterprise Resource Planning Managing wide range of processes Human resources, materials management, Human supply chains, accounting, finance, manufacturing, sales force automation, customer service, customer order entry customer Finding hidden patterns through data mining Advanced Communications Electronic data interchange (EDI) Internet, extranets Wireless communications Teleconferencing & Teleconferencing telecommuting telecommuting Bar coding, RFT Virtual reality Manufacturing Technology Numerically controlled (NC) machines Controlled by punched tape Computer numerical controlled (CNC) Controlled by attached computer Direct numerical control (DNC) Several NC machines controlled by single computer Flexible manufacturing systems (FMS) Includes automated material handling Automated Material Handling Conveyors Automated guided Automated vehicle (AGV) vehicle Automated storage & Automated retrieval system (ASRS) (ASRS) Flexible Manufacturing Systems (FMS) Programmable machine tools Controlled by common computer Controlled network network Combines flexibility with efficiency Reduces setup & queue times Flexible Manufacturing System CNC Machine Finished goods Computer control room Terminal Pallet CNC Machine Parts Automatic Automatic tool changer tool Robotics Programmable manipulators Follow specified path Better than humans with respect Better to Hostile environments Long hours Consistency Adoption has been slowed by Adoption ineffective integration and adaptation of systems adaptation e-Manufacturing Real-time sharing of data with trading Real-time partners and customers to drive collaborative decisions collaborative CAD - uses software to create & modify designs uses GT- classifies designs to benefit from prior experience experience STEP - sets standards for communication CAPP - creates processing instructions for CAM CAM - uses programmable automation in manufacturing manufacturing ...
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