The Electronics Division of BHEL at Bangalore manufactures control panels for governing controls at Thermal, hydro, nuclear power

plants. The control panels are manufactured in assembly line format, wherein the major components including PCB boards etc are sourced from reputed BHEL suppliers. However engineering design, assembly, testing, quality inspections etc. for the full panels are conducted at BHEL Electronics Division, Bangalore only. Hence, the manufacturing operations at BHEL Electronics Division Bangalore fall into the category of Assembly flow line operations.

Matching Process Choice with Strategy: Volume-Variety Matrix

Volume
Low
Jumbled Flow. Process segments loosely linked.

JOB SHOP
(Commercial Printer, Architecture firm)

Disconnected Line Flow/Jumbled Flow but a dominant flow exists.

BATCH
(Heavy Equipment, Auto Repari)

Connected Line Flow (assembly line)

ASSEMBLY LINE FLOWS

(BHEL Electronics Division)

Continuous, automated, rigid line flow. Process segments tightly linked.

CONTINUOUS FLOW
(Oil Refinery)

High

Low
High Standardization Commodity Products High volume Few Major Products Many Products

High
Low Standardization One of a kind Low Volume

Product Variety

The Flow Line Process

Product Layout Discrete Parts Rigid Flow Pattern Product Mix of Standard Products.

Product Layout at BHEL Electronics Division

Control Panel #1735B
Start Production Lathe Drill Press #1

Packaging Machine #2

Drill Press #2

Paint Machine

Finish Production

The Assembly Line Strategy Pros & Cons Advantages Lower variable cost per unit Lower but more specialized labor skills Easier production planning and control Higher equipment utilization (70% to 90%) Disadvantages Lower product flexibility More specialized equipment Usually higher capital investment

Positioning Inventory in the Supply Chain

Raw Material Components Make-to-Stock Assemble-to-Order BHEL Electronics Division Make-to-Order Semifinished Finished

SUPPLIER

Engineer-to-Order

Forecast

Order

Types of Firms

Make-to-stock firms: Firms that serve customers from finished goods inventory Assemble-to-order firms: firms that combine a number of preassembled modules to meet a customers specifications (BHEL Electronics Divison, Manufacturing Operations) Make-to-order firms: that make the customers product from raw materials, parts, and components Engineer-to-order firm: firm that will work with the customer to design and then make the product

Assemble-to-Order BHEL Electronics Division primary task is to define a customers order in terms of alternative components since these are carried in inventory Final Assembly at BHEL Electronics Division of Control Panels with Distributed Control Systems for thermal, nuclear, Hydro power Engineering & design of these control panels at BHEL Electronics Division enables as much flexibility as possible in combining components

There are significant advantages from moving the customer order decoupling point from finished goods to components

CLIENT