Presentation made by: Baxi Vishvak 02
Administrative discipline for the effective use of resources in on-schedule production of the targeted number or quantity of end products that meet the specified cost cost,, performance, quality, quality, and waste requirements requirements..
Design, execution Design, execution,, and control of a firm's operations that convert its resources into desired goods and services services,, and implement its business strategy
Production Planning & Control Quality Control Material Management Maintenance Management Plant/Facility Location Plant/Facility Layout Inventory Control Product Design Process Design
Coordination of materials with suppliers Efficient utilization of people and machines Efficient flow of materials Communication with customers
A Typical Manufacturing Systems
SUPPLIERS Raw Materials
Materials Machines People
CUSTOMERS Finished Products
1. 2. 3.
Overall Manufacturing Planning Detailed Materials and Capacity Planning Execution of Plans
Demand Management Forecasting Order Promising Order Processing Order Entry Spare Parts
Plans are made Results are compared with plans (control) Results are OK Wait until next control period Results are not OK Go to Step 1 (Revise plans)
Quality control (QC) includes the activities from the suppliers, through production, and to the customers. Incoming materials are examined to make sure they meet the appropriate specifications. The quality of partially completed products are analyzed to determine if production processes p rocesses are functioning properly.
Finished goods and services are studied to determine dete rmine if they meet customer expectations.
Inputs
Raw Materials, Parts, and Supplies
Control Charts and Acceptance Tests
Quality of Inputs
Conversion
Outputs
Production Processes
Products and Services
Control Charts
Control Charts and Acceptance Tests
Quality of Partially Completed Products
Quality of Outputs
It is concerned with planning, organizing and controlling the flow of materials from their initial purchase through internal operations to the service point through distribution.
Material management is a scientific technique, concerned with Planning, Organizing &Control of flow of materials, from their initial purchase to destination.
To get
1. The Right quality
2. Right quantity of supplies
3. At the Right time
4. At the Right place
5. For the Right cost
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Primary Right price High turnover Low procurement & storage cost Continuity of supply Consistency in quality Good supplier relations Development of personnel Good information system
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Secondary Forecasting Inter-departmental harmony Product improvement Standardization Make or buy decision New materials & products Favorable reciprocal relationships
A maintenance manager typically is a plant engineer who reports to a plant or manufacturing manager Maintenance departments are usually split into two groups:
Buildings and Grounds Equipment
Repairs
Repair activities are reactive. Breakdowns and malfunctions typically occur when equipment is in use. Standby machines and parts can speed repairs.
Preventive Maintenance (PM)
Regularly scheduled inspections are performed. PM activities are performed before equipment fails. PM is usually performed during idle periods.
Annual Cost ($) Minimum Total Maintenance Cost Minimum Level of Preventive Maintenance
Total Maintenance Costs Preventive Maintenance Cost Breakdown and Repair Cost
Degree of Preventive Maintenance
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Common for a large variety of products in batch volumes.
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Similar processes are grouped together.
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Inefficient: Long material transport routes from dept. to dept. Work in progress is high. Tracking of orders can be difficult.
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Advantages: Specialist labour and supervision. Flexibility as material can be rerouted in any sequence
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Material 1 Material 2
ASSEMBLY 1
Product 1
Product 2
ASSEMBLY 2
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Mass production where variety is small and production volumes are very high.
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AKA ‘flow’ or ‘line’ layout.
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More efficient, but less flexible than ‘functional’ layout.
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Work in progress is minimised, and jobs are easily tracked.
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Investment in specialised capital equipment is high, so a reliable and steady demand is required.
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Very sensitive to machine breakdown or disruption to material supply.
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A S S E M B L Y
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AKA ‘Group Technology’
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Each cell manufactures products belonging to a single family.
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Cells are autonomous manufacturing units which can produce finished parts.
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CELL 1
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Commonly applied to machined parts.
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Often single operators supervising CNC machines in a cell, with robots for materials handling.
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ASSEMBLY
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CELL 2
Flexible.
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ASSEMBLY
Suited to products in batches and where design changes often occur.
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CELL 3
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ASSEMBLY
Productivity and quality maximised. Throughpu Throughputt times and work in progress kept to a minimum.
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‘Fixed Position’ Layout (right) Single large, high cost components or products. Product is static. Labour, tools and equipment come to the work rather than vice versa.
COMPONENTS MATERIAL
‘Random’ Layout Very inefficient Small factories, start-up companies. ‘Process’ Layout Process industries, e.g. steelmaking. The process determines layout.
LABOUR
PRODUCT
LABOUR
MATERIAL COMPONENTS
Stock of items kept to meet future demand
Purpose of inventory management
how many units to order when to order
Raw materials Purchased parts and supplies Work-in-process Work-in-proc ess (partially completed) products (WIP) Items being transported Tools and equipment
Bullwhip effect
demand information information is distorted as it moves away from the end-use customer higher safety stock inventories to are stored to compensate
Seasonal or cyclical demand Inventory provides independence from vendors Take advantage of price discounts Inventory provides independence between stages and avoids work stop-pages
Customers usually perceive quality service as availability of goods they want when they want them Inventory must be sufficient to provide highquality customer service in TQM
Carrying cost cost of holding an item in inventory Ordering cost cost of replenishing inventory Shortage cost temporary or permanent loss of sales when demand cannot be met
Continuous system (fixed-order-quantity)
constant amount ordered when inventory declines to predetermined level
Periodic system (fixed-time-period)
order placed for variable amount after fixed passage of time
Class A
Class B
5 – 15 % of units 70 – 80 % of value 30 % of units 15 % of value
Class C
50 – 60 % of units 5 – 10 % of value
Safety stock
Stockout
buffer added to on hand inventory during lead time an inventory shortage
Service level
probability that the inventory available during lead time will meet demand
Uncertainties
Selection method
1
s e u l a 0.8 V e v i t 0.6 c e j b 0.4 O d e l 0.2 a c S
Selected design
No. of Operations Time/Operation Weight Cost
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0
1
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Pareto optimal designs
Design alternatives Objective: Select the product design that accounts for both customer’s requirements and
Design Variables Set of input variables (parameters) to the design simulation software (e.g. Motor type, Gear type, Gear ratio, DC voltage, Ambient temperature)
Performance Attributes Set of attributes that is the output of the simulation software,and identifies a product design (e.g. Manufacturing cost, Weight, Time per operation per battery charge) Input Design Variables
Simulation Software
Design Attributes
Market Pull (“We Make What We Can Sell”)
Technology Push (“We Sell What We Can Make”)
food industry electronics
Interfunctional View
personal computers
Concept Development
Product or Service Design
Pilot Production/Tes Production/Testing ting
Value Analysis (or engineering)
Simplification of products and processes
Modular Design
Multiple products using common parts, processes and modules.
Terms in Value Analysis:
Objective: primary purpose of the product Basic Function: Makes the objective possible Secondary Function: How to perform the basic function
Value analysis seeks to improve the secondary function, e.g. how to open a can or make a tool box
(a) The original design
Assembly using common fasteners
(b) Revised design
One-piece base & elimination of fasteners
(c) Final design
Design for push-and-snap assembly
a.
b.
c.
Original Design •
24 different parts to assemble
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7 unique parts to manage in inventory
Revised Design •
4 different parts to assemble
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3 unique parts to manage in inventory
Final Design •
2 parts to assemble and manage
Question: How easy would it be to detect an assembly error with each of the designs?
Process view Ops strategy (1) T r a n s f o r m a t i o n P r o c e s s
Process Analysis Proc select in manufac (4) Project (2)
Process types Product-process matching
Process: how to make it? Flexibility Labor skills Capacity change
Product: what to make? Variety Volume
Different processes have different characteristics, requiring different different skills and managerial tasks. It is convenient to identify basic process categories. We can can then map the process of interest into one of these basic categories.
Project
Job shop
Garment, grand piano
Line flow
Custom furniture, hospital, university
Batch flow
Building a house, getting married
DVD player, hamburger
Continuous flow
Cereal, sugar, oil refinery
Low Volume, One of a Kind Job Shop Batch Assembly Line Continuous Flow
Multiple Products, Low Volume
Few Major Products, Higher Volume
High Volume, High Standardization Flexibility (High) Unit Cost (High)
Commercial Printer French Restaurant Heavy Equipment Coffee Shop Automobile Assembly Burger King Sugar Refinery
Flexibility (Low) Unit Cost (Low)
Low Volume, One of a Kind Job Shop Batch
Assembly Line Continuous Flow
Few High Multiple Major Volume, Products, Products, High Low Higher StandardVolume Volume ization Flexibility (High) Unit Cost (High)
Commercial Printer French Restaurant Heavy Equipment Coffee Shop Automobile Assembly Burger King Sugar Refinery
Flexibility (Low)
