IE 305 BUS 307

CHAPTER 2 Production Systems

Production Objectives
High Profitability

Low Costs

High Sales

Low Unit Costs

Quality Product

High Customer Service

High Throughput

High Utilization

Low Inventory

Fast Response

Many products

Less Variability

Short Cycle Times

Low Utilization

High Inventory

More Variability
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System Components and Hierarchy

Corporation

Corporate level

Parts Plant 1

Parts PartsPlant Plant22

Assembly AssemblyPlant Plant11

Shop level

Shaft Production

Gear GearProduction Production

Heat Heat Treating Treating

Purchasing Purchasing

Department level

CNC Mill

CNC CNCLathe Lathe

Gear GearHobber Hobber

Automated Part Handling System

Workstation level

Robotic Load/ Unload

Tool Exchanger

Power Controller

Force Sensor

Equipment 3 level

Production Activity
Raw Material Forecasting Fabrication Plant Strategic Planning Assembly Plant
Finished Products

Administrative Functions (Purchasing, Payroll, Finance, Accounting)

Marketing Aggregate Production Planning

Product Design

Distribution Center

Disaggregation

Process Planning

Production Scheduling
Retailer Shop Floor Control Customer

Manufacturing Support (Facilities Planning, Tool Management, Quality Control, Maintenance)

c) Support Functions
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a) Product Flow

b) Decision Hierarchy

The Production System

Definition:
The set of resources and procedures involved in converting raw material into products and delivering them to customers Production and delivery of products are central to the firm Functions have value only if they enhance the ability to do this profitably
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Production System
Decision Maker Compares / Benchmark actual information with plan & generate the set of instructions for correcting the deviations & sends it to control (Plan versus Actual) Control sends instructions at an appropriate point for execution & bring back process under control
DECISION MAKER

CONTROL

INPUT

CONVERSION PROCESS

OUTPUT

The system selection is sensitive because of the following parameters

1 . Type of Product Common parameters Total Volume Varieties in total Volume

2 .Type of Company

3.Life Cycle of Product / Project

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Product Life Cycle

Life cycle phase of Project

Introduction ( Low volume ,High Variation) Growth ( High volume , Low Variation) Maturity ( High volume , Low Variation) Decline ( Volume drops , Variation High)

System selection is not a static or one time decision but DYNAMIC one & changes as organization passes through IG-M-D Phases & changes the equation of Volume to Variety ratio
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Types of Production System

CLASSIFICATION 1
Intermittent System Continuous System

Job Type Printing Job Machine Building

Mass Production

Spoons / Hair Pins / Soaps / Chocolates

Batch Type

Process Type

Washing Machine Fridge / TV / CAR

Cement / Sugar / Chemical Industries

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Intermittent System
The goods are manufactured specially to fulfill orders made by customers & not for stock Characteristics : Most products are produced in small quantities Machines & equipments are laid out by process Workloads are unbalanced Highly skilled operators are required for efficient use of machines & equipments In process inventory is very large

Flexible to accommodate variety in production

Example : Machine shops, Hospitals, locomotives, Plants, Automobiles
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Intermittent System
OP1 Information & Control Decision Maker

Storage1

OP2
Storage 2
Storage 4

OP4

Storage 3

OP3

Storage 5

Ex. Paper cutting machine

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Intermittent System Classification

Job Production Batch Production
Job Production : 1) It is the production of single complete unit by one operator, Group of operators 2) Whole project is considered as one operation & work is completed on each product before passing to the next Characteristics : Complete project is considered as single operation Versatile & skilled labors are required High capital Investment Control operations relatively simple High unit cost of production Examples : Bridge Building, Dam Construction, Ship Building, Heavy machines

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Intermittent System Classification

Batch Production
Batch Production : It is a extension of job type production Whole project is considered as one operation & work is completed on each product before passing to the next Characteristics : Production schedule can be formulated according to specific orders or demand forecasts Items are processed in lots & batches Only one item is produced in every production run New batch will be taken only after completion of one High WIP High cycle time Complex PPC Examples : Chemical Industry, Machine tools, Printing press, 14 Electronic instruments

Continuous System :
In this system the items are produced for the stocks & not for specific order
Manufacturing stock is based on sales forecast Inputs are standardized & standard set of processes & sequence of processes can be used Input OP1

Information & Control

Decision Maker

Storage1

OP2

Storage2

Ex. Bottling Plant

OP3

OP4

OP5
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Output

Types of Production Systems CLASSIFICATION 2

There are four basic types of production systems: 1. Process 2. Product 3. Cellular 4. Fixed positions

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Layout Goals
Use space efficiently Efficient personnel movement Maximum equipment utilization Convenient / safe work environment Simplify repair / maintenance Smooth flow of work

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Products, Processes, and Layouts

PRODUCTS
Make-to-stock standardized commodities

PROCESSES
Continuous process industries repetitive mfg
high volume, low variety

LAYOUTS
Product Layout

Assemble-to-order modular

Hybrid, FMS, CAM, CIM

low volume, medium variety

Cellular Layout

Make-to-order custom

Job-Shop(Intermittent)

low volume,

Process Layout

high variety

Engineer-to-order one-of-kind

low volume,

Special Project
low variety

Fixed Position
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Fixed Position Layout

The product or project remains stationary, and workers, materials, and equipment are moved as needed.

Examples: Home building, ship and aircraft buiding, drilling for oil

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Process Layout

Similar processes (or processes with similar needs) are located together By grouping similar processes utilization of resources is improved Customers, products, patients move through the processes according to their needs Different products = different needs = different routes Complex flow pattern in the operation Examples:
Supermarkets, job-shops, hospitals
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Process Layouts
Milling Assembly & Test

Grinding

Drilling

Plating

Process Layout products travel to dedicated process centers

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Product Layout

Sometimes called line layout, flow line or assembly line Parts follow a specified route the sequence of workstations matches with the sequence of required operations Work Flow is clear, predictable, easy to control Examples:
Car assembly, paper manufacture, self-service canteen

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Product Layout

Raw Statio materials n or customer 1

Material and/or labor Material and/or labor

Station 2
Material and/or labor

Station 3
Material and/or labor

Station 4

Finishe d item

Used for Repetitive or Continuous Processing

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Cellular Layouts

machines are grouped into a cell that can process items that have similar processing requirements Based on Group technology which involves grouping items with similar design or manufacturing characteristics into part families

Could be considered as mini product layouts Can improve and simplify a functional/process layout Flexible Duplicates some resources
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Original Process Layout

Assembly

5 2 1 3 10

8
12 11

Raw materials
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Cellular Layout
Assembly

10

12

11
4 Cell 1 Cell 2 6 Cell 3 7 2 1 3 5

A B C Raw materials
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Comparison of Product and Process Layouts

Product Process

Workers Inventory Storage space Material handling Aisles Scheduling Layout decision Goal Advantage

Limited skills Low in-process, high finished goods Small Fixed path (conveyor) Narrow Line balancing (Easier) In-line, U-type Equalize work at each station Efficiency

High skills High in-process, low finished goods Large Variable path (forklift) Wide Dynamic (More difficult) Functional Minimize material handling cost Flexibility

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Product Volume and Variety

Cellular

Quantity

Product Layouts Fixed Position Layouts

Mixed Layouts

Process Layouts

Number of Different Products

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Product Flow Control

Batch Processing (Process Layout)

From a couple to several thousands identical parts A batch for each different part type Move together through the production system May split for material handling or to reduce processing time Examples are clothing, furniture production

Repetitive or Flow processing (Product Layout)

Continuous chemicals, foods, pharmaceuticals Discrete car, refrigerator production
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Production System Decision Hierarchy

Inputs Process Outputs Length of Planning Horizon
Years Long Range Economic Forecasts Financial Choices Processing Technologies/Efficiency Medium Range Product Family Forecasts Machine Schedules Production Levels Workforce Levels Current Inventory Status Changeover Times and Costs Item Forecasts Strategic Planning Aggregate Production Planning Operating Facilities Product Line (Families) Technologies Production Level Workforce Level Family Inventories Master Production Schedule (MPS) - Final Assembly by item Item Inventories

Months

Disaggregation

Weeks

MPS Bill of Materials Process Plans Labor Status Machine Status Job Priorities Order Releases Machine Schedules

Production Scheduling Shop Floor Control

Job Priorities Order Releases Machine Schedules Machine Priorities Job Status Labor Reporting Material Handling Tasks Load/Prices/Unload Authorization

Days-Shift

Real Time Minutes

QUESTIONS???

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