Unit 1  Introduction to CIM Technology

Rehg & Kraebber Chapter 1:The Manufacturing Enterprise

Introduction:• Manufacturing is a collection of interrelated

activities that includes product design and documentation, material selection, planning, production, quality assurance, management, and marketing of goods

• The fundamental goal of manufacturing is to use these activities to convert raw materials into finished goods on a profitable basis

Introduction:• The lessons learned in the 1970s and

1980s resulted in changes across U.S. industries

• As a result of improved manufacturing practices, U.S. industries reclaimed a leadership role by the mid-1990s and will continue that leadership role in the next millennium

Three Stages of Manufacturing Retreat:

1. Emergence of small electronic consumer goods during the Vietnam War

2. Japanese practice of copying successful U.S. products

3. Offshore companies and rapid product development in the late 1980s

Return to Power of the United States Manufacturing Industry

Was as a result of the following factors:

•Economic factors

•Business factors

•Political factors

Return to PowerEconomic factors:

– Deregulations of energy and communications markets

– Low inflation as a result of downward pressures on wages, the price of raw materials, and the deregulated energy markets

– Falling interest rates during the last decade– The collapse of Asian economy owing to the

excesses of financial institutions in managing real-estate portfolios and corporate loans

Return to PowerBusiness factors:

– Consolidation of competitive companies and companies with complementary products in most markets

– Restructuring of corporate America– New and expanding technological leadership– Partnership between the United States and offshore

companies– Adoption of CIM concepts in many industry groups– Increased productivity as a result of consolidations,

restructuring, technology, CIM, and better labor-management relations.

Return to Power

Political factors:– The consolidation of European Union– Pressure to open closed markets

Product Versus Process Goals• The success of U.S. manufacturers following WW II

was due largely to the technology and industrial base spawned by the war and the captive market associated with the postwar economy

• The main reason other countries beat the U.S in the 1970s/80s was because they spent time developing their war-torn manufacturing base after the war.

• To be successful, a manufacturer must meet two challenges: external and internal challenges

External Challenges Result from:

Niche market entrants, traditional competition, suppliers, partnerships and

alliances, customers, global economy, cost of money, and the Internet

Internal Challenges Result in:

A plan, process, or manufacturing strategy that forces congruence

between the corporate objectives and marketing goals and production

capability of a company

Order-winning Criteria are:

• Price

• Quality

• Delivery speed

• Innovation ability

Product Life Cycle Curve

Sales

Introduction Growth Maturity Decline/Commodity

Changing the Product Life Cycle:

• Kaizen or improvement of current model

• Leaping or developing a new product similar to the initial product

• Innovation or using genuine new product invention to identify follow-up merchandise

Order-winning Versus Order-Qualifying Criteria:

Market share is increased when the order-winning criteria are understood

and executed better than the competition

Meeting the Internal Challenges:• Analyze every product and agree on the order-

qualifying and order-winning criteria for the product at the current stage in it’s life

• Project the order-winning criteria for the future stages in every product’s life

• Determine the fit between the required process capability and the existing capability in manufacturing

• Change/modify the marketing goals, or upgrade the manufacturing processes and infrastructure to force internal consistency

World-class Order-winning Criteria:

• Setup time or time required to get a machine ready for production

• Quality or % of defective parts produced or % of total sales

• Manufacturing space ratio or a measure of how efficiently manufacturing space is utilized

• Inventory: Velocity/residence time

World-class Order-winning Criteria:

• Flexibility or a measure of the number of different parts that can be produced on the same machine

• Distance or total linear feet of a part’s travel through the plant from raw material in receiving to finished products in shipping

• Uptime or % of time a machine is producing to specifications compared to total time that production can be scheduled

The Problem and a Solution:

• Cost of doing nothing

• A solution

CIM has Different Definitions for Different Users

i. Shop communicationsii. Recurring processesiii. Non-recurring processesiv. Engineering/manufacturing communicationv. Other usersvi. Improving communication through CIM

Computer Integrated Manufacturing

Refers to the technology, tool or method used to improve entirely the design and manufacturing process and increase productivity, to help people and machines to communicate. It includes CAD (Computer-Aided Design), CAM (Computer- Aided Manufacturing), CAPP (Computer-Aided Process Planning, CNC (Computer Numerical Control Machine tools), DNC (Direct Numerical Control Machine tools), FMS (Flexible Machining Systems), ASRS (Automated Storage and Retrieval Systems), AGV (Automated Guided Vehicles), use of robotics and automated conveyance, computerized scheduling and production control, and a business system integrated by a common database. (Houston Cole Library)

Computer Integrated Manufacturing

Is the process of automating various functions in a manufacturing company (business, engineering, and production) by integrating the work through computer networks and common databases. CIM is a critical element in the competitive strategy of global manufacturing firms because it lowers costs, improves delivery times and improves quality. (Amatrol)

Computer-integrated Manufacturing Defined:

• CIM is the integration of the total manufacturing enterprise through the use of integrated systems and data communications coupled with new managerial philosophies that improve organizational and personal efficiency

SME New Manufacturing Enterprise Wheel

What is CIM?

• C + I + M

• C = Computer

i. Enabling tool

ii. Information flow

iii. Information management

What is CIM?• I = Integrated

i. Integration vs. interfacingii. Shared informationiii. Shared functionality

• M = Manufacturingi. Production controlii. Production schedulingiii. Process designiv. Product designv. Manufacturing enterprise

Learning CIM Concepts:

• Process segments such as these:

CAM CAD

CAE CAPP

QA

CIM

Others

Going for the Globe:

• The CIM process: Step 1 (assessment of the enterprise in technology, human resources, and systems)

• The CIM process: Step 2 (simplification or elimination of waste)

• The CIM process: Step 3 (implementation with performance measures)

• Managing the resources

Manufacturing Today

• Off-shoring and job loss issues

• Free market economy defined

• Production-oriented activities in a free market economy

• The centrality of manufacturing

• Recommendations

Off-Shoring & Job Loss Issues

• Some operations moved overseas

• Companies move to find market & cheap resources

• Off-shoring affects large companies more

• Small companies are doing well

• New startups in the US need manufacturing

Free Market Economy Defined

An economic system in which the production and distribution of goods and

services is not controlled by the government, but rather takes place

through the mechanism of free markets which is guided by a free price system

Production-Oriented Activities In A Free Market Economy

• Sales and marketing

• Design

• Production engineering

• Manufacturing

The Centrality of Manufacturing in a Market-Oriented Economy

Production System triad

Mkt

DesPro Eng

Man

Recommendations

• Manufacturing personnel should be flexible and mobile

• There is a need to learn cultures that are different from ours

• Locality’s manufacturing programs should be more functional relative to area’s needs

• Employ an interdisciplinary approach to make programs more agile and adaptable

Chapter 2: Manufacturing Systems

• Manufacturing system classifications:– Project– Job shop– Repetitive– Line– Continuous

Production Strategy Classification:

• Relative to customer lead time

• Relative to manufacturing lead time

• Manufacturing lead time and customer lead time must be matched

Production Strategies Used to Match Customer and Manufacturing Lead Times:

• Engineer to order (ETO)

• Make to order (MTO)

• Assemble to order (ATO)

• Make to stock (MTS)

Product Development Cycle:

• New product development

• Existing product changes

Product Development Cycle1. Market Research

2. Management Review

3. Design Engineering

4. Production Engineering

5. Manufacturing

6. Customer Use

Enterprise Organization:

A successful CIM implementation requires an understanding of the functions performed by each block of an enterprise, including:– Sales and promotion– Finance and management– Product/process definition– Manufacturing planning and control– Shop floor– Support organizations

Manual production operations:

• Activity enters system as either a design or request for engineering action

• Product design uses CAD to make the drawing• The product definition group lists the different parts of the

drawing as BOM• The manufacturing definition group separates the BOM into

those to be purchased and those to be manufactured inside• Manufacturing process planning determines the type of

machines and process sequences required to process the parts• The business production planning produces the production

schedule

CIM-Oriented Operations

Implementing a CIM system enhances and automates the above manual

production operations

Potential Benefits of CIM

• Shorter time to market with new products

• Increase in manufacturing productivity

• Shorter customer lead times

• Improved quality• Improved customer

service

• Shorter vendor lead times

• Reduced inventory levels

• Greater flexibility and responsiveness

• Lower total cost• Great long - term

flexibility