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AMERICAN UNIVERSITY
IN CAIRO ENGR 541 Fall 2002
Copyright, 1996 © Dale Carnegie & Associates, Inc.
Dr. Lotfi K. Gaafar
Sherif Masoud
Mass Customization & Flexible Manufacturing
Systemsby
ENGR 541 Fall 2002 Dr. Lotfi K. Gaafar
Mass Customization & Flexible Manufacturing
SystemsSherif Masoud
AUC
Introduction
•MC Overview •MC at HP•FMS Overview•FMS at MATC•Summary•References
Purpose: This presentation sheds light on the existence of Mass Customization and Flexible Manufacturing Systems in the real world.
Technique: First, every topic is introduced. Second, a published case study, on very topic, is presented after recasting it in a structure that facilitates understanding and analyzing.
Result: More understanding of discussed topics.
ENGR 541 Fall 2002 Dr. Lotfi K. Gaafar
Mass Customization & Flexible Manufacturing
SystemsSherif Masoud
AUC
From Mass Production Mass production as the manufacturing
‘miracle’ Economies of scale: the larger the
better Breakdown of mass production: 60s,
70s, 80s, 90s,… Heterogeneous American society:
customers do not like standardized products any more
Globalization: the rest of the world too
•MC Overview •MC at HP•FMS Overview•FMS at MATC•Summary•References
ENGR 541 Fall 2002 Dr. Lotfi K. Gaafar
Mass Customization & Flexible Manufacturing
SystemsSherif Masoud
AUC
To Mass Customization Mass Customization(MC): only means
to satisfy diverse needs, keeping production costs low
Goal: to deliver customized products at price of comparable mass-produced items
Companies now are trying hard to customize
Customers have plenty of choices MC is for both production of goods
and provision of services
•MC Overview •MC at HP•FMS Overview•FMS at MATC•Summary•References
ENGR 541 Fall 2002 Dr. Lotfi K. Gaafar
Mass Customization & Flexible Manufacturing
SystemsSherif Masoud
AUC
Increasing Product Customization
Item Early 70s Late 90sVehicle models 140 260
Bicycle types 8 31
TV screen sizes 5 15
Bottled H2O brands 16 50
Milk types 4 19
Magazine titles 339 790
Source:Cox, M. C.; Alm, R. 1998. “The Right Stuff: America’s Move to Mass Customization.” Federal Reserve Bank of Dallas, 1998 Annual Report. @http://www.dallasfed.org/htm/pubs/pdfs/anreport/arpt98.pdf.
•MC Overview •MC at HP•FMS Overview•FMS at MATC•Summary•References
ENGR 541 Fall 2002 Dr. Lotfi K. Gaafar
Mass Customization & Flexible Manufacturing
SystemsSherif Masoud
AUC
Examples & Economies of Scope
Newspapers: The Wall Street Journal and others can now be customized and sent via email
Jeans: Tailored Levi’s jeans with little extra time and money
Economies of scope: the more diverse the output and the less the costs, the better
Engineering today tries to achieve this objective such that the constraint is satisfied
•MC Overview •MC at HP•FMS Overview•FMS at MATC•Summary•References
ENGR 541 Fall 2002 Dr. Lotfi K. Gaafar
Mass Customization & Flexible Manufacturing
SystemsSherif Masoud
AUC
Origin & Significance Alvin Toffler anticipated MC in his 1970
book, Future Shock. In 1987, Stan Davis delineated MC and
also coined the term in his book Future Perfect.
MC has been attracting increasing attention from academic and industrial communities.
Articles Books Engineering Master’s Thesis at PSU MCPC 2003
•MC Overview •MC at HP•FMS Overview•FMS at MATC•Summary•References
ENGR 541 Fall 2002 Dr. Lotfi K. Gaafar
Mass Customization & Flexible Manufacturing
SystemsSherif Masoud
AUC
Implementation Gilmore and Pine II identify four
distinct approaches that clearly and logically describe how to achieve MC
Generic set: one or more can be applied in any industry of goods or services
Collaborative Adaptive Cosmetic Transparent
•MC Overview •MC at HP•FMS Overview•FMS at MATC•Summary•References
ENGR 541 Fall 2002 Dr. Lotfi K. Gaafar
Mass Customization & Flexible Manufacturing
SystemsSherif Masoud
AUC
Collaborative What first comes to one’s mind when
thinking about MC A dialogue helps:
articulate needs identify precise offering that fully
satisfies those needs make customized products
•MC Overview •MC at HP•FMS Overview•FMS at MATC•Summary•References
ENGR 541 Fall 2002 Dr. Lotfi K. Gaafar
Mass Customization & Flexible Manufacturing
SystemsSherif Masoud
AUC
Collaborative Example Paris Miki’s company: a digital system
takes a picture of the customer’s face and statements about how he/she wants to look
recommends a distinctive lens size and shape
displays the lenses on the digital image of the customer’s face.
Customer and optician collaborate to adjust the shape and size of lenses
•MC Overview •MC at HP•FMS Overview•FMS at MATC•Summary•References
ENGR 541 Fall 2002 Dr. Lotfi K. Gaafar
Mass Customization & Flexible Manufacturing
SystemsSherif Masoud
AUC
Collaborative Example Customers select from a number of
options for nose bridge, hinges, and arms in order to complete the design.
Then they receive a photo of themselves with the proposed eyeglasses on.
Finally, a technician grinds the lenses and assembles the eyeglasses in the store in an hour or less.
•MC Overview •MC at HP•FMS Overview•FMS at MATC•Summary•References
ENGR 541 Fall 2002 Dr. Lotfi K. Gaafar
Mass Customization & Flexible Manufacturing
SystemsSherif Masoud
AUC
Adaptive Manufacturers offer one standard but
customizable product that is designed so that users can alter it themselves
This is needed, for instance, when customers want a product to function differently in different occasions
It is possible when technology makes it easy for them to change the product easily on their own.
•MC Overview •MC at HP•FMS Overview•FMS at MATC•Summary•References
ENGR 541 Fall 2002 Dr. Lotfi K. Gaafar
Mass Customization & Flexible Manufacturing
SystemsSherif Masoud
AUC
Cosmetic Companies present a standard
product differently to different customers.
Standard offering is packaged specially for each customer.
T-shirts or sweatshirts are personalized by placing customers’ names or initials on them.
Peanut packages come in different sizes to match all wants.
•MC Overview •MC at HP•FMS Overview•FMS at MATC•Summary•References
ENGR 541 Fall 2002 Dr. Lotfi K. Gaafar
Mass Customization & Flexible Manufacturing
SystemsSherif Masoud
AUC
Transparent Companies provide individual
customers with unique goods or services without letting them know explicitly that those products or services have been customized specially for them.
Customers’ behavior is observed without interaction and then offerings are customized within a standard package.
This type of customization is good to apply with repeat customers.
•MC Overview •MC at HP•FMS Overview•FMS at MATC•Summary•References
ENGR 541 Fall 2002 Dr. Lotfi K. Gaafar
Mass Customization & Flexible Manufacturing
SystemsSherif Masoud
AUC
Four Faces
•MC Overview •MC at HP•FMS Overview•FMS at MATC•Summary•References
Transparent
Cosmetic
Collaborative
No change Change
No change
Change
Source: Gilmore, J.H.; PineII, B.J. 1997. “The Four Faces of Mass Customization.” Harvard Business Review, v75, n1. P91-101.
Adaptive
Representation
Product
ENGR 541 Fall 2002 Dr. Lotfi K. Gaafar
Mass Customization & Flexible Manufacturing
SystemsSherif Masoud
AUC
MC at HP
Hewlett-Packard (HP) is an industry leader that deals with computers, printers, and medical products among others.
HP faces the challenge of mass customizing its products, delivering them rapidly, and at the same time reducing costs.
Three real case studies show how HP deals with these challenges.
•MC Overview•MC at HP•FMS Overview•FMS at MATC•Summary•References
Source: Feitzinger, E.; Lee, H.L. 1997. “Mass Customization at Hewlett-Packard: The Power of Postponement.” Harvard Business Review, v75, n1. P116-121.
ENGR 541 Fall 2002 Dr. Lotfi K. Gaafar
Mass Customization & Flexible Manufacturing
SystemsSherif Masoud
AUC
LaserJet Printers Problem: The core engine has a
dedicated power supply which is either 110 or 220 volts.
This forces differentiating by end user as soon as production begins in Japan.
Methodology: A power supply that works in all countries is built into the product.
Results and Analysis: total costs of manufacturing, stocking, and delivering are reduced by 5% per year.
•MC Overview•MC at HP•FMS Overview•FMS at MATC•Summary•References
ENGR 541 Fall 2002 Dr. Lotfi K. Gaafar
Mass Customization & Flexible Manufacturing
SystemsSherif Masoud
AUC
DeskJet Printers Problem: needs to customize its
DeskJet printers that are sold in Europe and Asia to increase competitiveness.
Methodology: printers are customized at local distribution centers rather than at factories.
Results and Analysis: manufacturing costs are slightly higher than when factories customize, but the total manufacturing, shipping, and inventory costs drop by 25%.
•MC Overview•MC at HP•FMS Overview•FMS at MATC•Summary•References
ENGR 541 Fall 2002 Dr. Lotfi K. Gaafar
Mass Customization & Flexible Manufacturing
SystemsSherif Masoud
AUC
Personal Computers Problem: Inventory clearance sales to
get rid of products at the end of their model lives occurred frequently.
Methodology: HP postponed integrating the PC board, processor, chassis..etc. until orders are received at distribution centers.
Results and Analysis: savings on transportation and duty costs and greatly increased return delivering a customized product more quickly& cheaply than competitors.
•MC Overview•MC at HP•FMS Overview•FMS at MATC•Summary•References
ENGR 541 Fall 2002 Dr. Lotfi K. Gaafar
Mass Customization & Flexible Manufacturing
SystemsSherif Masoud
AUC
Classification Instance Customization
ClassLaserJet Printers AdaptiveDeskJet Printers
CollaborativePersonal Computers
Collaborative
•MC Overview•MC at HP•FMS Overview•FMS at MATC•Summary•References
ENGR 541 Fall 2002 Dr. Lotfi K. Gaafar
Mass Customization & Flexible Manufacturing
SystemsSherif Masoud
AUC
FMS Overview
•MC Overview•MC at HP•FMS Overview•FMS at MATC•Summary•References
FMS: several machine tools are linked together by a material-handling system & controlled by a central computer.
It can process more than one product style simultaneously
New product styles can be introduced so long as they fall within a certain range that the system is designed to process.
Operational problems deal with decision making on a short-term planning horizon.
ENGR 541 Fall 2002 Dr. Lotfi K. Gaafar
Mass Customization & Flexible Manufacturing
SystemsSherif Masoud
AUC
Introduction
This study is a result of an independent study project at Milwaukee Area Technical College.
FMS Cell: Six-axis robot, horizontal sp. mill,vertical sp. mill, gripper change station,lathe, rough part loading area, finished part unloading area.
•MC Overview•MC at HP•FMS Overview•FMS at MATC•Summary•References
Source: Musil, D.C.; Akbay, K.S. 1989. “Improve Efficiency of a FMS Cell through Use of a Computer Simulation Model.” IE Magazine, v21, n11. P28-34.
ENGR 541 Fall 2002 Dr. Lotfi K. Gaafar
Mass Customization & Flexible Manufacturing
SystemsSherif Masoud
AUC
FMS cell is set up to produce components for a vise: base, jaw, and screw.
Every part is machined on only one particular machine.
The components arrive as rough castings.
Robot: transports, loads, repositions for additional operations on the same machine, and transports finished parts.
•MC Overview•MC at HP•FMS Overview•FMS at MATC•Summary•References
Description
ENGR 541 Fall 2002 Dr. Lotfi K. Gaafar
Mass Customization & Flexible Manufacturing
SystemsSherif Masoud
AUC
To increase cell output by making only scheduling changes.
To change the sequence of part processing and handling to reduce cycle time.
Cycle time = total time spent in the system to manufacture exactly one unit of each one of the three component parts.
•MC Overview•MC at HP•FMS Overview•FMS at MATC•Summary•References
Problem
ENGR 541 Fall 2002 Dr. Lotfi K. Gaafar
Mass Customization & Flexible Manufacturing
SystemsSherif Masoud
AUC
Discrete-event simulation
“What if” questions (scenarios) then run the model over 4800 minutes.
Only resource that is shared by more than one component is robot. Change priorities associated with robot.
Statistics focus on how much time a component spends waiting for a particular resource (three machines and robot).
•MC Overview•MC at HP•FMS Overview•FMS at MATC•Summary•References
Methodology
ENGR 541 Fall 2002 Dr. Lotfi K. Gaafar
Mass Customization & Flexible Manufacturing
SystemsSherif Masoud
AUC
Current policy: B-J-S-B-J-W-J-B-J
Policy 1: B-J-S-J-B-J-B-J
Policy 2: B-J-S-J-B-S-J-B-J
Policy 3: S-J-B-J-W-B-W-J-B-J-S
B=base, J=jaw, S=screw, W=wait
Time spent in system for every part and system output are observed for every policy.
•MC Overview•MC at HP•FMS Overview•FMS at MATC•Summary•References
Methodology
ENGR 541 Fall 2002 Dr. Lotfi K. Gaafar
Mass Customization & Flexible Manufacturing
SystemsSherif Masoud
AUC
Current policy Pol. 1 Pol. 2 Pol. 3
Time(min)
base 9.62 8.66 8.51 6.49
jaw 10.87 9.91 9.76 7.43
screw 5.13 5.13 6.55 8.79
Syst. out. (cycle) 441 484 491 546
% increase - 9.75 11.33 23.81
•MC Overview•MC at HP•FMS Overview•FMS at MATC•Summary•References
Results and Analysis
ENGR 541 Fall 2002 Dr. Lotfi K. Gaafar
Mass Customization & Flexible Manufacturing
SystemsSherif Masoud
AUC
A real case study about an FMS scheduling problem.
Solved using simulation.
Results and analysis were highlighted.
It was also implicitly shown how in real life an FMS Cell is used to manufacture a variety of parts simultaneously.
•MC Overview•MC at HP•FMS Overview•FMS at MATC•Summary•References
Conclusion
ENGR 541 Fall 2002 Dr. Lotfi K. Gaafar
Mass Customization & Flexible Manufacturing
SystemsSherif Masoud
AUC
Summary MC Four Faces MC at HP
LaserJet Printers DeskJet Printers Personal Computers
FMS structure and capabilities FMS at MATC
Real FMS Simulation
•MC Overview•MC at HP•FMS Overview•FMS at MATC•Summary•References
ENGR 541 Fall 2002 Dr. Lotfi K. Gaafar
Mass Customization & Flexible Manufacturing
SystemsSherif Masoud
AUC
References "Automation." 2002. Encyclopedia Britannica @
http://search.eb.com/eb/article?eu=117180 Cox, M. C.; Alm, R. 1998. “The Right Stuff: America’s Move
to Mass Customization.” Federal Reserve Bank of Dallas, 1998 Annual Report. @
http://www.dallasfed.org/htm/pubs/pdfs/anreport/arpt98.pdf.
Feitzinger, E.; Lee, H.L. 1997. “Mass Customization at Hewlett-Packard: The Power of Postponement.” Harvard Business Review, v75, n1. P116-121.
Gilmore, J.H.; PineII, B.J. 1997. “The Four Faces of Mass Customization.” Harvard Business Review, v75, n1. P91-101.
Levi Strauss & Company Web Site. 2002. @ www.levi.com Lau, R.S.M. 1995. “Mass Customization: The Next Industrial
Revolution.” Industrial Management, v37, n5. P18-19.
•MC Overview•MC at HP•FMS Overview•FMS at MATC•Summary•References
ENGR 541 Fall 2002 Dr. Lotfi K. Gaafar
Mass Customization & Flexible Manufacturing
SystemsSherif Masoud
AUC
References
•MC Overview•MC at HP•FMS Overview•FMS at MATC•Summary•References
Musil, D.C.; Akbay, K.S. 1989. “Improve Efficiency of a FMS Cell through Use of a Computer Simulation Model.” IE Magazine, v21, n11. P28-34.Pine II, B.J. 1993. “Mass Customizing Products and Services.” Planning Review, v22, n4. P6-13. Shaukat, M. 2001. “Modularity, Platforms, and Mass Customization in the Automotive Industry.” The Pennsylvania State University, Masters of Science in Industrial Engineering Thesis @ http://www.ie.psu.edu/research/graddis.htm Singh, N. 1996. Systems Approach to Computer-Integrated Design and Manufacturing. John Wiley &Sons, Inc., New York.
ENGR 541 Fall 2002 Dr. Lotfi K. Gaafar
Mass Customization & Flexible Manufacturing
SystemsSherif Masoud
AUC
Thank You for listening
Ready for your questions•MC Overview•MC at HP•FMS Overview•FMS at MATC•Summary•References