Ch. 1 - Chapter01: Introduction Manufacturing n n...

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Chapter 01:  Introduction
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Manufacturing  n Manufacturing -- Set of activities that convert raw materials to saleable goods n Manufactured goods q Producer goods: used by others to manufacture either producer or consumer goods (machine tools, semiconductor wafers) q Consumer goods: directly sold to consumer (cars, computers) n Focus on materials and processing
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Product Development n Sustaining technology: q Innovations bring more value to the consumer q Improvements in materials, processes, and design n Product growth normally follows the “S” curve Figure 1-1a) A product development curve
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Interactive Factors in Manufacturing n Overall Cost: Materials, Labor costs, Equipment , Manufacturing costs n Lower the manufacturing cost, greater is the profit n Systems approach to reducing costs - requires understanding of manufacturing systems Figure 1-2 Manufacturing cost is the largest part of the selling price, usually around 40%. The largest part of the manufacturing cost is materials, usually 50%.
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Manufacturing Systems n Manufacturing processes – actions used to convert unfinished materials to products (e.g. die casting, arc welding, pasteurizing etc.) n Manufacturing systems – collection of manufacturing processes that takes inputs and produces a product for external customers (e.g., an automobile assembly train) Figure 1-3 The manufacturing system converts inputs to outputs using processes to add value to the goods for the external customer.
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Production Systems n Entire company called ‘enterprise’ or production system – includes design, manufacturing, analysis and control, management, marketing n Conventionally used for systems that make goods, i.e. material things n Production systems that provide services called Service Production Systems (SPSs) – healthcare, banking, transportation etc.
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Figure 1-4 The functions and systems of the production system, which includes (and
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This note was uploaded on 01/19/2012 for the course IE 230 taught by Professor Xangi during the Spring '08 term at Purdue University-West Lafayette.

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Ch. 1 - Chapter01: Introduction Manufacturing n n...

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