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Description of Capital vs return on investment
Assessment of length of time an investment takes to pay back
Trade-off for Capital vs return on investment
Cost vs time and quality
Description of Utilisation of plant
Measurement of proportion of available plant time that is spent generating value - linked to capacity
Trade-off of Utilisation of plant
Time vs cost and quality
Description of Capacity versus responsiveness to demand
Capacity is the theoretical maximum volume of production - spare capacity allows faster response to orders
Trade-off for Capacity versus responsiveness to demand
Time vs Cost
Description of Inventory vs responsiveness to demand
Inventory is the amount of manufacturing material kept on site - more inventory allows faster response to orders
Trade-off of Inventory vs responsiveness to demand
Time vs Cost
Efficient use of resources allows
Simultaneous improvement of cost, time and quality
Effective use of resources allows
Survival and growth of the business
Definition of Manufacturing
The making of a product from raw materials or components, especially as a large scale operation using machinery
Definition of Management
The accomplishment of goals through others
Definition of Manufacturing Management
The application of Management Principles in Manufacturing Engineering
Definition of Operations
Provision of services and/ or products e.g. hotels, hospitals, and factories
Definition of Manufacturing
provision of products i.e. factories
What are the transforming resources in a manufacturing business?
a) Components and raw materials
b) Plant and raw materials
c) Plant and staff
d) Staff and raw materials
c) Plant and staff
low volume processes produce a ______ variety of product
high
High volume processes produce a _____ variety of products
low
The approach to managing an individual process depends where it falls on the _______________ spectrum
Volume-variety
Production process groups examples
Mass production
Batch production
Job production e.g. consultancy companies
Project e.g. buildings, bridges
Project processes
Discrete, highly customised products
Dedicated resources
Long production timescale
e.g. buildings, bridges, large infrastructure
Job shops
Generally similar but may be one-offs
Shared resources
High skill level
Batch production
More than one item at a time produced
Processes repeated while batch is being produced
Individual processes can be similar to job shop but management is different
Wide range of volumes
Examples of job shops
tooling, patterns, metal machining
Example of batch production
Machine tools
Automotive component
Customised electronics
Mass production
High volume, relatively low variety
Variants possible if do not affect basic process flow
Processes highly repetitive and predictable
Examples of mass production
Automatic packing lines
Car factories
Consumer electronics
Set up time
time it take to set-up machine so as to switch production from one product to another
e.g. through changing of tooling
Work in Progress (WIP) Inventory
The amount of unfinished product on the shop floor
Control
The ability of management to know and control the state of production at any given moment
Resilience to disruptions
The ability to carry on production despite something going wrong
e.g. machine breakdowns
Throughput time
The length of time it takes a single product to undergo all stages of production
Utilisation
The proportion of available plant time that is spent generating value
Flexibility
The range of products, production batch sizes, and lead times that can be handled by a production system
Process layouts
Different layouts of resources - machines and staff - are required for the most efficient processing of product depending on the production
3 main types of process layouts
Product Layout
Process Layout
Hybrid Layout
Advantages of process layout
High Utilisation
High flexibility for intro of new design
Flexibility for recovery
Disadvantages of process layout
High work in-process inventory
High shop floor storage space requirement
Long throughput time
Complex control
Advantages of product layout
Smooth product flow
Short throughput
Low work-in-process inventories
Disadvantages of product layout
Low flexibility for the introduction of new product design
Any work stoppages stops while process
Advantages of Hybrid Layout (Group Technology)
High Utilisation
Short throughput time
Reduced machine set-up time
Low work-in-process inventories
More flexible than product layout
In early days, essential step towards increasing automation
Disadvantages of Hybrid Layout (Group Technology)
Less flexible than process layout
More complex to control than product layout
Group Technology
The grouping together of parts or products into families by processing operation so that all members of a family are processed in a miniature factory called a cell
Manufacturing Flexibility
The capability of producing different parts without major retooling
Operational Flexibility
The ability to efficiently produce highly customized and unique products
Customer Flexibility
The ability to exploit various dimensions of speed of delivery
Strategic Flexibility
The ability of a company to offer a wide variety of products to its customers
Capacity Flexibility
The ability to rapidly increase or decrease production levels or to shift capacity quickly from one product or service to another
Examples of automated operations tasks
Programmed control of manufacturing operations
Storage of parts
Automated transfer of parts between storage and production machines
Identification of parts
Orientation of parts
Loading and unloading of parts
Automated operation cycle
Examples of Automated setup tasks
Changeover of programmes
Tool and fixture storage
Transfer of tools and fixtures between storage and production machines
Automated tool and fixture changeovers
Process layout is generally used for
low volume and job shop manufacturing
Product layout is generally used for
high volume manufacturing
Hybrid layout is generally used for
medium to high volume batch manufacturing
Plant layout
the organisation of the physical arrangement of facilities so that a process can be as efficient as possible
What is production planning
Deciding
-What product, amount, when
Scheduling
Planning
Why is a formal planning process needed
Align production activities and business plans
Ensure business plans are realistic
Handle complexities and large amounts of data involved
Use production resources efficiently while meeting constraints
Ensure resources are available when needed
Provide a plan against which progress can be measured
Aggregate planning is…
The task of identifying plans to produce products, expressed in specific quantities and dates, to fulfil a series of anticipated product demands and customers orders
MPS
Master Product Schedule
A Master Production Schedules is for…
planning horizons which contains required production quantities for a specific prouct type together with the desired completion date
MPS must seek to reconcile the many requirements of the company functions such as
Sale requirements
Financial requirements
Production requirements
Resources and labour requirements
MPS is
Schedule is something which is related to time
Time is the key word
Date
Product
Quantity
We will make x many of y products for the zth of month
The production scheduling function is a combination of a number of tasks such as
-lot sizing
-process routing
-dispatch/loading
-sequencing
-works order generation
Lead time is the
time between customer order and order delivery
Production period is the
time between starting work on an order and completion
The major production activity control functions are
-Procedures for process monitoring and data collection on production progress
-Policies for inspection of in-process and finished parts
-Support services such as material handling, tooling and fixturing operations
-Policies for handling the breakdowns of resources
-Schedules for periodic, preventive maintenance
Why is inventory planning needed
A buffer between supply and demand
Decouples processes allowing work to continue if there is a problem upstream
Total Carrying cost =
H(Q/2) where,
H = Holding cost
Q = Quantity
Q/2 = Average inventory
Total ordering cost =
S(D/Q) where,
S = Order cost
D = Average annual demand
D/Q = Number of orders
Fixed - Order Quantity System is
ordered whenever inventory drops to reorder level (ROL), so reorder date varies
Replenishments System is when
Reorder date is fixed and order quantity (Q) varies according to inventory level to fulfil the replenishment level
A-items
5-20% of inventory items incurring 50-70% of expenses.
High cost items that are vigorously controlled
B-items
30-50% of inventory items incurring 20-30% of expenses
Moderate costs items that are accurately controlled
C-items
40-70% of inventory items incurring less than 10-20% of expenses
Low cost items that their control are more relaxed
Pareto Analysis is used to
Separate the vital few from the trivial many, and often utilises a Pareto chart as a visual tool to identify the few problems that causes the greatest lost
What does MRP stand for
Materials Requirements planning
MRP is
A technique used for production planning and control, where the requirements of products are calculated based on the forecast and open customer orders
Some MRP characteristics are…
Product Oriented using a BOM
Future Oriented uses info from the master production schedule to calculate future component requirements
Priority Planning determines the production requirements to meet the master schedule
LT stands for
Lead Time (days)
TYP - M vs TYP-B
M is manufacture
B is bought
What is a Business Plan?
sets out the long term future of a company as series of financial statements and targets
What is a Marketing Plan?
gives in general terms what is to be sold and what income will be derived to meet the figures in the business plan
What is a Production Plan?
sets out what is to be produced, what resources will be needed and what this will cost
What is a Resources Requirements Plan?
identifies the loads on the resources imposed by production plan and to compare this with theoretical capacity
In a JIT approach it is wasteful to
Store large amounts of anything
Produce more goods than immediately required
Move in-process materials and goods around
Product scrap
Carry out unnecessary work
JIT aims to…
Reduce waste in all forms, where waste is defined as everything that adds to the cost but not to the value
A Kanban system is designed to…
minimise work-in-progress quantities
OPT stands for
Optimised production technology
OPT defined ten rules for planning and controlling production…
-Utilisation of a non-bottleneck resource system not determined by its own capacity
-Activation of a resource not the same as utilisation
-Time lost at a bottleneck operation is time lost for the total production system
-Time saved at non-bottleneck operation is an illusion
-Transfer between operations may not and often should not equal process batches
-Process batch sizes should be variable
-Capacity and priority should be considered simultaneously, not sequentially
-The unexpected is not unknown, it can be isolated and minimised
-Plant capacity should not be balanced, flow should be
-Sum of local optimisation factors is not equal to the optimisation of the whole system
Why distributed planning and control
Geographical positions of production facilities
Decomposition of complex planning and control problems
Generation of autonomous, cooperative working structure for the sub systems of a production facility
What to consider when choosing factory location
Market
Suppliers
Personnel
Transportation
Local conditions and other factors
Taylor’s 1st principle of Scientific Management
Developing for every job in a science that includes rules of motion, standardise work implements and proper working conditions
Taylor’s 2nd principle of Scientific Management
Carefully selecting workers with right abilities for the job
Taylor’s 3rd principle of Scientific Management
Training workers to do the job and give them the proper incentive to cooperate with job ‘science
Taylor’s 4th principle of Scientific Management
Supporting workers by carefully planning their work and by smoothing the way as they go about their jobs
Management involves…
Coordinating and overseeing the work activities of other so that their activities are completed efficiently and effectively
An organisation is a…
Deliberate arrangement of people assembled to accomplish some specific purpose (that individuals could not accomplish alone)
Common characteristics of organisations
Have a distinct purpose/goal
Are composed of people
Have a deliberate strucure
Levels of Managements
Top managers
Middle managers
First-line managers
Non-managerial employees
First line managers are…
Individuals who manage the work of non-managerial employees
Middle managers are…
Individuals who manage the work of first-line managers
