SCMT 364 ch.7 manufacturing processes

are used to make any manufactured item at some level

production processes

-source: the parts

-make: the product

-deliver: the product

the time needed to respond to a customer order

lead time

where inventory is positioned to allow entities in the supply chain to operate independently

customer order decoupling points (upside down triangle) inventory

a means of achieving high levels of customer service with minimal inventory investment

lean manufacturing

serve customers from finished goods inventory; high demand

Make to stock MTS

combine a number of preassembled modules to meet a customer's specifications; low demand

Assemble to order ATO

make the customer's product from raw materials, parts, and components; low demand

make to order MTO

work with the customer to design and then make the product; low demand

Engineer to order ETO

MTS: examples of products include the following:

-televisions

-most furniture products

-packaged food products

(finished goods)

MTS: essential issue in satisfying customers-meeting demand- is to...

balance the level of inventory agains the level of customer service

-easy with unlimited inventory, but inventory costs money

-trade-off between the costs of inventory and level of customer service must be made

MTS: use__ to achieve higher service levels for a given inventory investment

lean manufacturing

ATO: a primary task is to define a customer's order in terms of...

alternative components because these are carried in inventory

-an example is the way HP and Dell make their desktop computers

ATO: one capability required is a...

design that enables as much flexibility as possible in combining components

-toyota uses a base frame that accepts various components

ATO: there are significant advantages from moving the customer order decoupling point from finished goods to...

components

-this is often called postponement or delayed differentiation (bananas at HEB)

MTO and ETO (customer has a voice in the design phase): boeing's process for making ...

commercial aircraft is an example of MTO (perhaps even elements of ETO)

MTO and ETO: customer order decoupling point could be...

in ether raw materials at the manufactuing site or the supplier inventory

-depending on how similar the products are, it might not even be possible to preorder parts. ETO?materials customers has to tell them

the product remains in a fixed location and manufacturing equipment is moved to the product; very large; MTO and ETO

project

most common production processes

work center (job shop) and manufacturing cell

similar equipment or functions are grouped together

Workcenter(job shop)

a dedicated area where products that are similar in processing requirements are produced

manufacturing cell

work processes are arranged according to the progressive steps by which the product is made; serial process

assembly line

assembly line only the flow is continuous such as with liquids; chemical rxns; oil and gas; physics

continuous process

Project layout

-the product remains in a fixed location

-a high degree of task ordering is common

-a project layout may be developed in arranging materials according to their assembly priority (shadow box)

Work Center

-most common approach to developing this type of layout is to arrange workcenters in a way that optimizes the movement of material

-optimal placement often means placing workcenters with large interdepartmental traffic adjacent to each other

-sometimes is referred to as a department and is focused on a particular type of operation

formed by allocating dissimilar machines to cells that are designed to work on similar products (shape, processing)

manufacturing cell

designed for the special purpose of building a product by going through a series of progressive steps; highly repetitive

assembly line and continuous layout

defined as standard approach to choosing among alternative processes or equipment

Break-even analysis

Break-even analysis: model seeks to determine the point in units produced where a company will... on the process

start making profit

Break-even analysis: model seeks to determine the point in units produced where....

total revenue and total cost are equal

break-even demand formula

purchase cost of process or equipment/price per unit-cost per unit

or

total fixed costs of process or equipment/ unit price to customer-variable cost per unit

a method to evaluate the specific processes that materials follow as they move through the plant

manufacturing process flow design

focus should be on the identification of activities that can be minimized or eliminated

-movement and storage

-the fewer the moves, delays, and storage, the better the flow

manufacturing process flow design

T or F: Break-even analysis can only be used in production equipment decision making when dealing solely with variable costs

false

T or F: One difference between an assembly line process flow and a continuous process flow is that on the assembly line, the flow is discrete rather than continuous

true