01_Lecture_01_2009

LECTURE 1

INTRODUCTION TO MANUFACTURING

What is “MANUFACTURING”?

“the process of converting raw materials into products”.

The word “manufacturing” is derived from the Latin manu factus, meaning made by hand.

“the conversion of stuff into things” – (by DeGarmon, 1998).

“processing or making a product from raw materials, especially as a large scale operation using machinery” – (by Collin English Dictionary, 1998).

“economic term for making goods and services available to satisfy customer” - (by T.Black, 1991).

INTRODUCTION TO MANUFACTURINGINTRODUCTION TO MANUFACTURING


- “the making of products from raw materials using various processes, equipments, operations and manpower according to a detailed plan”.

- During processing, the raw material undergoes changes to allow it to become a part of a product(s).

- Once processed, it should have worth in the market or a value.

- Therefore, it encompasses:

- The design of the product.- The selection of raw materials.- The sequence of processes through which the product will be manufactured.

- Word production is often interchangeably with word manufacturing.


Manufacturing can be defined two ways:

1) Technology – manufacturing is the application of physical and chemical processes to alter the geometry, properties, and/or appearance of a given starting material to make parts or products. Manufacturing also includes the assembly of multiple parts to make products.

2) Economic – manufacturing is the transformation of materials into items of greater value by means one or more processing involve. Therefore, manufacturing is “added value” to the material.

The processes to accomplish manufacturing involve a combination of machinery, tools, power, and manual labor.

- “Added value” – by changing the material’s shape or properties or by combining it with other materials that have been similarly altered.


Two ways models to define manufacturing:

1) As a technical process

ManufacturingProcess

Raw materialsProduct

Profit

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2) As an economic process.

ManufacturingProcess

Valueadded

Startingmaterial

Material inprocessing

Processedmaterial



Manufacturing activities must be responsive to several demands and trends:


Industries can be classified as:


1) Primary industry- Those that cultivate and exploit natural resources; eg: agriculture, mining.

2) Secondary industry- Take the outputs of the primary industries and convert them into consumer and capital goods.

3) Tertiary industry

- Constitute with service sector of the economy.



1) Project – 1 to 10 units.

2) Job shop – 10 to 100 units.

3) Batch – 100 to 10,000 units.

4) Mass – Above 10,000 units.

Production quantity:Production quantity: number of unit produced annually of a particular product type.

Product variety: Product variety: different product designs or types that are produced in the plant.

[Low production]

[Medium production]

[High production]


Low

Medium

High

Product quantityProduct quantity


Product varietyProduct variety

1 to 10 units

10 to 100 units

100 to 10,000 units

Above 10,000 units


TYPE OF MANUFACTURING OPERATIONSTYPE OF MANUFACTURING OPERATIONS

- Product position – remains stationary during the manufacturing process – size,weight, location of the product.

- Materials, people, machinery are brought to the product or product site.

- Example: bridge, building construction, aircraft, ships, locomotive.

- Based on customer specifications.


- Low volume and production quantities called lot sizes with high product variety.

- Satisfies a market for nonstandard or unique product.

- Layout – different machines with similar functional or processing capabilities are grouped together as department.

- Require high skill levels labor – to operate a variety of equipments.

- Example: space vehicles, reactor vessels, turbines, aircraft components.

- A short duration activities to provide custom goods.


Job Production is used when a product is produced with the labor of one or few workers.

It is mainly used for one-off products or prototypes, as it is inefficient; however, quality is greatly enhanced with job production compared to other methods.

Individual wedding cakes and made-to-measure suits are examples of job production.

New small firms often use job production before they get a chance or have the means to expand.

Job Production is highly motivating for workers because it gives the workers an opportunity to produce the whole product and take pride in it.


Boutique manufacturing is a method used for the custom production of certain products in limited quantities by hand or with a restricted level of automation.

Products produced this way often include ceramics, furniture, amplifiers, yachts, boats, leather goods or watches and jewellery among others.

In industrial countries, boutique manufacturing is being selected generally for high class goods in upper price levels and only for single products or small batches.


Boutique Manufacturing is suitable for the production of very small to small batches, i.e. orders of a few units up to several dozens of similar or equal goods.

The workflow organization of a Boutique Manufacturing entity can be a mixture of both jobbing and batch production but involves higher standardization than job production.

Boutique Manufacturing is often organized with single workplaces or production cells carrying out a number of subsequent production steps until completion of certain components or even the whole product; large assembly lines are generally not used.

The flexibility and variety of products able to be produced in the entity therefore are much higher than with the more standardized method of batch production.


Benefitslow investment in factory automationhigh flexibility during manufacturingquick alteration of product types produced on every workplace or production linesupports build to order without the necessity of using many pre-assembled components; creation of value caused by assembly takes place mainly at the end of the production flow.allows an unachieved level of product individualization


BenefitsBoutique manufacturing closes the gap between piece production and small batch/low volume production.The workflow organization of a boutique manufacturing entity can be a mixture of both – elements of jobbing or batch production, however involving higher standardization than the first one.Often boutique manufacturing workshop and factories are organized with single workplaces or production cells carrying out a number of subsequent production steps until completion of certain components or even the whole product.Flexibility and variety of products being able to produce in the entity therefore are much higher than with the more standardized method batch production.


DisadvantagesHowever, with this method, manufacturing of larger quantities of unified products is not possible at reasonable costs.Serial fabrication or large production of goods then would be suitable alternative production methods involving higher grades of automation and standardization.


- Batch production produce or process any product in groups which is called “batches”.

- Can produce a variety of products – opposed to a continuous production process, or a one time production.

- Example: Similar standard items made periodically in batches: bakery, paint, hand tools.

- Same facilities used to manufacture all the different items.

- Useful for industries that makes seasonal items/products for which it is difficult to forecast the demand.

- Layout of machine – functional layout (based on its function to be performed – from section to another section).


Batch production is the method used to produce or process any product in groups or batches where the products in the batch go through the whole production process together.

An example would be when a bakery produces each different type of bread separately and each object (in this case, bread) is not produced continuously.

Batch production is used in many different ways and is most suited to when there is a need for a quality/quantity balance.

This technique is probably the most commonly used method for organizing manufacture and promotes specialist labor, as very often batch production involves a small number of persons.


- Reduce initial capital outlay – due to a single production line can be used to several products – machines can be used more effectively, materials can be bought in bulk, workers can specialize in that task.

- Requires very careful production planning & control – next batches; when, types.

- When switching to another batches – takes time (“down time”) – can cause loss of output (low yield).

- Resulted “WIP” or create inventory/stock – increases costs such as inventory cost, cost because of damage to stock.


The example production line (shown below) is that of an engineering company, manufacturing small steel products such as hinges and locks. They manufacture batches of five hundred at a time. The workers are unskilled and semi skilled. As each task is completed the item being manufactured is passed down the production line to the next worker, until it is complete.


- Also known as flow production, repetitive flow production, series production.

- Machinery (eg: robots, machine press) that is needed to set up the mass production line is so expensive.

- Involved fewer labor cost and a faster rate of production.

- Producing goods in large quantities at low cost per unit and produce in a short period of time.

- Plant and equipments are arranged in a flow line layout.

- Operation is done base on specific product and thus make the production control easily.

- Work piece is transfer automatically from one machine to another.

- Example: light bulbs, refrigerator, tv.


Production of large amounts of standardized products, including and especially on assembly lines.

The concepts of mass production are applied to various kinds of products, from fluids and particulates handled in bulk (such as food, fuel, chemicals, and mined minerals) to discrete solid parts (such as fasteners) to assemblies of such parts (such as household appliances and automobiles).

Mass production is a diverse field, but it can generally be contrasted with craft production or distributed manufacturing.

It has occurred for centuries; it has been widespread in human experience, and central to economics.


Involves making many copies of products, very quickly, using assembly line techniques to send partially complete products to workers who each work on an individual step, rather than having a worker work on a whole product from start to finish.

Mass production of fluid matter typically involves pipes with centrifugal pumps or screw conveyors (augers) to transfer raw materials or partially complete products between vessels.

Fluid flow processes such as oil refining and bulk materials such as wood chips and pulp are automated using a system of process control which uses various instruments to measure variables such as temperature, pressure, volumetric and level, providing feedback


Bulk materials such as coal, ores, grains and wood chips are handled by belt, chain, slat, pneumatic or screw conveyors, bucket elevators and mobile equipment such as front-end loaders.

Materials on pallets are handled with forklifts. Also used for handling heavy items like reels of paper, steel or machinery are electric overhead cranes, sometimes called bridge cranes because they span large factory bays.

Mass production is capital intensive and energy intensive, as it uses a high proportion of machinery and energy in relation to workers. It is also usually automated while total expenditure per unit of product is decreased.

However, the machinery that is needed to set up a mass production line (such as robots and machine presses) is so expensive that there must be some assurance that the product is to be successful to attain profits


Mass production is inflexible because it is difficult to alter a design or production process after a production line is implemented.

All products produced on one production line will be identical or very similar, and introducing variety to satisfy individual tastes is not easy.

However, some variety can be achieved by applying different finishes and decorations at the end of the production line if necessary.

The starter cost for the machinery can be expensive so the producer must be sure it sells or the producers will lose a lot of money.


Lean Production and Agile ManufacturingLean Production and Agile Manufacturing

- A systematic approach to identifying and eliminating waste in manufacturing process through continuous

improvement by following the product at the demand of the customer.

- Lean is about doing more with “less”: less time, inventory, space,

people, money; - developing the product, – minimize the cost.

- It is all about “speed” and getting it right at the first time.


75-90% reduction in cycle time 50-90% reduction in setup time 95-99% customer service 50% reduction in new product introduction

time 50-90% reduction in scrap and rework 15-25% reduction in manufacturing costs 5-20% reduction in purchased material costs 50-75% reduction in floor space utilized


- Voice of the customer.

- Continuous improvement.- Recognize & eliminating waste of:

- Over production (production ahead of demand).- Inventory (all components, work-in progress and finished product not being processed).- Defects (Non-zero defect rates – the effort involved in inspecting for & fixing defects).

- Waiting time (waiting for the next production steps).- People’s talents, & motivations.

- Motion (people or equipment moving or walking.- Transportation.



- Agile manufacturing is a term applied to an organization that has created the processes, tools, and

training to enable it to response quickly to customer needs and market changes while still controlling costs

and quality.

- The implementation of the principles of lean production on a broad scale.


Concurrent engineering, also known as simultaneous engineering, is a method of designing and developing products, in which the different stages run simultaneously, rather than consecutively. It decreases product development time and also the time to market, leading to improved productivity and reduced costs.

Concurrent Engineering is a long term business strategy, with long term benefits to business. Though initial implementation can be challenging, the competitive advantage means it is beneficial in the long term. It removes the need to have multiple design reworks, by creating an environment for designing a product right the first time round.


Concurrent engineering (CE) is a philosophy that promotes interactive design and manufacturing

efforts to develop product and process simultaneously, thus optimizing the use of company resources

and reducing time to market cycles. It has four general phases which are:

Technology and concept development.

Product and process development and prototype validation

Process validation and product confirmation.

Production and continuous improvement.




Benefits of concurrent engineering make it a compelling strategy to adopt. Introducing concurrent engineering can lead to:

Competitive Advantage- reduction in time to market means that businesses gain an edge over their competitors.

Enhanced Productivity- earlier discoveries of design problems means potential issues can be corrected soon, rather than at a later stage in the development process.

Decrease Design and Development Time- make products which match their customer’s needs, in less time and at a reduced cost


- It tends to simplify and break the whole system into small, autonomous units.


- Raw materials, parts & components are delivered to the manufacturer just in time to be used, parts &

components are produced JIT to be made into subassemblies & assemblies, and products are finished

JIT to be delivered to the customer.

- JIT is also known as “pull system”.


Just in time (JIT) is a production strategy that strives to

improve a business' return on investment by reducing in-

process inventory and associated carrying costs.

Just in time is a type of operations management approach which

originated in Japan in the 1950s. It was adopted by Toyota and

other Japanese manufacturing firms, with excellent results.


The philosophy of JIT is simple: the storage of unused inventory is a waste of resources.

JIT inventory systems expose hidden cost of keeping inventory, and are therefore not a simple solution for a company to adopt it.

The JIT inventory philosophy defines how inventory is viewed and how it relates to management.


This way of working encourages businesses to eliminate inventory that does not compensate for manufacturing process issues, and to constantly improve those processes to require less inventory.

Allowing any stock habituates management to stock keeping. Management may be tempted to keep stock to hide production problems. These problems include backups at work centers, machine reliability, process variability, lack of flexibility of employees and equipment, and inadequate capacity.



In short, the Just-in-Time inventory system focus in having “the right material, at the right time, at the right place, and in the exact amount”, without the safety net of inventory.


Benefit s/Advantages of JITBenefit s/Advantages of JIT- Low inventory – carrying cost.

- Fast detection of defects in the production or the delivery of supplies and, hence,low scrap loss.

- Reduced inspection and reworking of parts.

- High quality products made at low cost.

- Reduction of :

60% to 80% in inventory. Up to 90% in rejection rates. 90% in lead times. 50% in scrap & rework.

20% to 40% in product cost. Benefit s/Advantages of JIT (cont’)Benefit s/Advantages of JIT (cont’)

Increases:

- 30% to 50% in labor productivity.

KANBAN SYSTEMKANBAN SYSTEM- Integrated with the implementation of JIT concept.

- Kanban – means “visible record”; it is a system of notification from one process to the other in a manufacturing system.- Originally consisted of two types of cards:

i) Production card: authorizes the production of one container or cart of identical, specified parts at a workstation.

ii) Conveyance/move card: authorizes the transfer of one container or cart of parts from that particular w/station to the w/station where the parts will be used.


The cards contain information on:

i) Type of parts.

ii) Location where issued.

iii) Part number.

iv) Number of items in container.

KANBAN SYSTEMKANBAN SYSTEM


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01_Lecture_01_2009