Manufacturing and Service Strategies- INTRO

8/13/2019 Manufacturing and Service Strategies- INTRO

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Manufacturing and Service strategies


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What does Production planning and control deal with

PRODUCTION:that transformation of raw materials to finished goods.

PLANNING:looks ahead, anticipates possible difficulties and decides inadvance as to how the production, best, be carried out.

CONTROL: This phase makes sure that the programmed production isconstantly maintained.


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The main components of the PPC system

Qualitative/quantitative forecastingAggregate planning

Master Production schedule

Material requirement planning

Inventory control

Scheduling


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Production Planning and ControlMain Functions

Forecast ingto predict customer demand on various products over a givenhorizon.

AggregatePlanningto determine overall resources needed.

Master Production Schedule (MPS): Planned production quantities for end-itemsin each time period of the planning horizon.

Mater ials Requirement Plann ingto determine all required components andtiming.

Invento ry Managementto decide production or purchase quantities andtiming.

Schedul ingto determine shop-floor schedule of various components.


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The International Business Machines Corporation, an American multinationaltechnology and consulting corporation, with headquarters in Armonk, New York,United States

The company was founded in 1911 as the Computing Tabulating RecordingCompany (CTR)

In 2012, Fortune ranked IBM the No. 2 largest U.S. firm in terms of number ofemployees (433,362), the No. 4 largest in terms of market capitalization, No. 9 mostprofitable, and the No. 19 largest firm in terms of revenue (approx. US$106.916 billion).


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In 1993, IBM posted what at the time was the biggest loss in the history ofcorporate America: US$8 billion

In 1986 when the company was having a revenue of US$ 62billion the picturewas different, with John Akers as chairman the company was losing its marketshare among major customers in both main frames and personal computers.


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Classical manufacturing Strategy factors

1. Capacity

2. Facilities

3. Technology

4. Workforce

5. Quality

6. Production planning and material control

7. Organization

The main aim was to reduce the cost of the product.


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Businesses now look at

short product life cycles

more demanding customer requirements

higher standards for quality and design

significant foreign competition

A new set of factors are necessary to compete in todays dynamic, globalmarket place.


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New set of manufacturing Strategy factors

1. Shorter new-product lead time

2. More inventory returns3. Shorter manufacturing lead time4. Workforce5. Higher Quality6. Greater flexibility7. Better customer service

8. Less waste9. High return on assets

Companies have started using manufacturing or service

operation for competitive advantage.


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New-product lead time

It is the time taken by the set of activities that transform a concept for satisfyingperceived needs into a product or service that is ready for the market

Manufacturing Lead Time

The manufacturing lead time is the time period between the placement of an order

and the shipment of the completed order to the customer.

A short manufacturing lead time is a competitive advantage;

many customers want the delivery of their products as soon as possible following

the placement of the order


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The Product Life Cycle (PLC) has Five Stages

Product Development

Introduction

Growth

Maturity

Decline


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Competitive advantage:

Some areas that have the competitive advantage are:

1. Cost

2. Quality

3. Time


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Sequential EngineeringStages

RESEARCH DESIGN MANUFACTUREQUALITY

CONTROL

DISTRIBUTION SALES

OVER THE WALL ENGINEERING

In todays highly competitive market place this can lead to product failures andlost sales.


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Field warranty service

Productionsystem

PrototypingProcessdesignGD&T

Qualitycontrol

ProductdesignGD&T

EngineeringModeling

Marketanalysis,

R&D

Computer

Aided Design

(CAD)

Computer

Aided

Manufacturing

(CAM)

Rapid

Prototyping

Cell, Quick

Response

Manufacturing

Statistic

Process

Control (SPC)

Manufacturing in the Product Life Cycle


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Documents

Manufacturing and Service Strategies- INTRO