Flexible ManufacturingFlexible Manufacturing

Ashlee ChomanAshlee ChomanAnnalisa ScottoAnnalisa Scotto

Sara WeronSara Weron

Operations Management and Operations Management and Flexible ManufacturingFlexible Manufacturing

““A form of computer-integrated manufacturing A form of computer-integrated manufacturing used to make small to moderate-sized batches used to make small to moderate-sized batches of parts.”of parts.”

According to MIT study: American companies According to MIT study: American companies spend twice as much on product innovation as spend twice as much on product innovation as they do on process innovation they do on process innovation

Operations Management and Flexible Operations Management and Flexible ManufacturingManufacturing Why do we need flexible manufacturing?Why do we need flexible manufacturing?

The Need for FlexibilityThe Need for Flexibility

FlexibilityFlexibility Cost savingsCost savings EfficiencyEfficiency Mass productionMass production TimeTime Flexibility today means quickness in Flexibility today means quickness in

delivery and high quality at reasonable delivery and high quality at reasonable prices.prices.

IssuesIssues

CustomizabilityCustomizability Adapt to changing environments; become Adapt to changing environments; become

more more flexibleflexible Quality and QuantityQuality and Quantity Cost SavingsCost Savings Mass ProductionMass Production

AdvantagesAdvantages

Faster, lower cost productsFaster, lower cost products Lower direct labor costsLower direct labor costs Consistent and better qualityConsistent and better quality Reduces errors and rejects = Higher Six Reduces errors and rejects = Higher Six

SigmaSigma

DisadvantagesDisadvantages

Limited capacity of machinery (logic)Limited capacity of machinery (logic) Substantial pre-planningSubstantial pre-planning Expensive machineryExpensive machinery Sophisticated manufacturing systems Sophisticated manufacturing systems

mean expensive programs to train mean expensive programs to train employeesemployees

Sustainable Competitive AdvantageSustainable Competitive Advantage

Customizability- Customizability- Companies have to adapt Companies have to adapt to the environment in which they operate to the environment in which they operate to be more to be more flexibleflexible in their operations and in their operations and to satisfy different market segments to satisfy different market segments Thus the innovation of FMS became Thus the innovation of FMS became

related to the effort of gaining a related to the effort of gaining a competitive advantagecompetitive advantage..

Sustainable Competitive AdvantageSustainable Competitive Advantage

……We produce more, at a better We produce more, at a better price, with a higher quality…price, with a higher quality… Car companies make many models of cars in Car companies make many models of cars in

great time in order to meet customer needsgreat time in order to meet customer needs

History of Flexible ManufacturingHistory of Flexible Manufacturing

In the beginning, there was not much In the beginning, there was not much competition and so FM systems were not competition and so FM systems were not needed. needed. ““People can order any color of car as long as it is People can order any color of car as long as it is

black.” Henry Fordblack.” Henry Ford

After WWII, market focused on consumer (not After WWII, market focused on consumer (not manufacturer)manufacturer)

The first FM system was patent in 1965 by Theo The first FM system was patent in 1965 by Theo Williamson who made numerically controlled Williamson who made numerically controlled equipmentequipment

History (Cont’d)History (Cont’d)

Change in manufacturing over timeChange in manufacturing over time 60’s- Efficiency in manufacturing60’s- Efficiency in manufacturing 70’s- Efficiency and quality70’s- Efficiency and quality 80’s- Efficiency quality and flexibility80’s- Efficiency quality and flexibility Due To:Due To:

Increased international competition Increased international competition The need to reduce manufacturing cycle time The need to reduce manufacturing cycle time

and and Pressure to cut production costsPressure to cut production costs

Recent Trends- RenaultRecent Trends- Renault

““All major car makers will switch to flexible All major car makers will switch to flexible manufacturing within 7 years”- Greg manufacturing within 7 years”- Greg Gardner (US manufacturing specialist, Gardner (US manufacturing specialist, Troy, Michigan)Troy, Michigan)

Renault integrated manufacturing system Renault integrated manufacturing system will build 3 platforms, 6 body styles, on will build 3 platforms, 6 body styles, on one lineone line

Recent Trends - RenaultRecent Trends - Renault

Renault is the latest to choose flexibilityRenault is the latest to choose flexibility RIMS aims at producing multiple models on RIMS aims at producing multiple models on

one assembly lineone assembly line First RIMS will open in 2009 in IndiaFirst RIMS will open in 2009 in India

• Used by Nissan, Renault and Mahindra (Indian)Used by Nissan, Renault and Mahindra (Indian) Renault CEO Carlos Ghosn says the RIMS Renault CEO Carlos Ghosn says the RIMS

will half R&D costs between 2006 and 2009 will half R&D costs between 2006 and 2009 and increase sales from 2.5 million to 3.3 and increase sales from 2.5 million to 3.3 million in 2009million in 2009

Recent TrendsRecent Trends

Flexibility gives option to adjust to changing Flexibility gives option to adjust to changing environmentenvironment Not a simple taskNot a simple task Very costlyVery costly One car per one plant systems does not cut costs if One car per one plant systems does not cut costs if

plants are being under utilizedplants are being under utilized• i.e.-Car models are not as populari.e.-Car models are not as popular

The alternative to flexibility would be to increase The alternative to flexibility would be to increase manual labor and individualization while manual labor and individualization while increasing time to marketincreasing time to market Cheaper, but does not provide SCACheaper, but does not provide SCA

Recent TrendsRecent Trends

In 2007, KUKA”Titan” became world’s In 2007, KUKA”Titan” became world’s strongest robot strongest robot Power of mid-sized carPower of mid-sized car Builds parts for automotive industryBuilds parts for automotive industry

• i.e.- capable of moving whole carsi.e.- capable of moving whole cars July 7, 2005- joined forces with auto July 7, 2005- joined forces with auto

companies to develop new flexible companies to develop new flexible manufacturing processes for aerospace manufacturing processes for aerospace industriesindustries

www.kuka.comwww.kuka.com

What is Flexible Manufacturing?What is Flexible Manufacturing?

““A form of computer-integrated manufacturing A form of computer-integrated manufacturing used to make small to moderate-sized used to make small to moderate-sized batches of parts.”batches of parts.”• CommunicationCommunication• TechniqueTechnique• CostCost• JobsJobs

Evidence of Everyday UseEvidence of Everyday Use

AudiAudi JeepJeep General MotorsGeneral Motors MicrosoftMicrosoft McGraw- HillMcGraw- Hill

Why Choose Flexible Why Choose Flexible Manufacturing?Manufacturing?

Competitive MarketCompetitive Market Quick and EasyQuick and Easy Expensive Initial CostExpensive Initial Cost Low Cost to Change DesignLow Cost to Change Design Keep Up With CompetitorsKeep Up With Competitors

What Makes This Approach Better?What Makes This Approach Better? Computer Does The WorkComputer Does The Work User FriendlyUser Friendly Cost EfficientCost Efficient

Discussion Of Flexible Discussion Of Flexible ManufacturingManufacturing

Basic MechanicsBasic Mechanics Computer Designed WorkComputer Designed Work No Need For New EquipmentNo Need For New Equipment

Issues With Flexible ManufacturingIssues With Flexible Manufacturing CostlyCostly Time and ComplexityTime and Complexity Not GuaranteedNot Guaranteed

ATI Industrial AutomationATI Industrial Automation

Leading engineering-based world developer of Leading engineering-based world developer of robotic accessories that include:robotic accessories that include: Robotic tool changersRobotic tool changers Force/torque sensorsForce/torque sensors Robotic collision sensorsRobotic collision sensors Robotic and CNC Deburring ToolsRobotic and CNC Deburring Tools Remote center compliance devicesRemote center compliance devices Robotic rotary jointRobotic rotary joint

http://www.ati-ia.com/library/video_listing.aspxhttp://www.ati-ia.com/library/video_listing.aspx

Robotic AccessoriesRobotic Accessories

Used by:Used by: Automotive FirmsAutomotive Firms

• Chrysler GroupChrysler Group

Medical FacilitiesMedical Facilities• John Hopkins UniversityJohn Hopkins University

HondaHonda

Reduces time and resources with flexible Reduces time and resources with flexible manufacturingmanufacturing

Operates in unprecedented level of flexibility to Operates in unprecedented level of flexibility to meet customer demandmeet customer demand

Company added production of cars to existing Company added production of cars to existing plants due to flexible manufacturingplants due to flexible manufacturing Increased annual North American production Increased annual North American production

capability for Civics by 60,000 unitscapability for Civics by 60,000 units Restored Alabama plant to annual capacity of Restored Alabama plant to annual capacity of

300,000 vehicles300,000 vehicles

Flow CorporationFlow Corporation

Waterjet Cuttin SystemWaterjet Cuttin System Cuts greater variety of materialsCuts greater variety of materials Setup and fixturing is complete in minutesSetup and fixturing is complete in minutes Different jobs do not require different toolingDifferent jobs do not require different tooling Increases productivityIncreases productivity Edge quality eliminates costly secondary Edge quality eliminates costly secondary

finishingfinishing Raw material savingsRaw material savings Compliments existing technologyCompliments existing technology

Waterjet Cutting TechnologyWaterjet Cutting Technology

http://http://www.youtube.com/watch?vwww.youtube.com/watch?v=Jn7v65ZhhW4=Jn7v65ZhhW4

Used by:Used by: Metal intensive firmsMetal intensive firms

• The Wagner CompaniesThe Wagner Companies Airline IndustryAirline Industry

• Boeing Commercial Airplane GroupBoeing Commercial Airplane Group

Orange County ChoppersOrange County Choppers

Founded by metalworker Paul Teutul, Sr.Founded by metalworker Paul Teutul, Sr. Designed custom choppersDesigned custom choppers Implemented Flow’s waterjet in 2003Implemented Flow’s waterjet in 2003 Priceless machinePriceless machine Opened new design possibilities for OCCOpened new design possibilities for OCC Easy to useEasy to use Allows more bikes to be built in shorter Allows more bikes to be built in shorter

period of timeperiod of time

Contrast CompanyContrast Company

Indian Larry Motorcycle CompanyIndian Larry Motorcycle Company Custom builds each bikeCustom builds each bike Relies on craftsmanshipRelies on craftsmanship Tools, not computersTools, not computers Prides on legacyPrides on legacy

ConclusionConclusion

How is the new approach better?How is the new approach better? How does it make it more How does it make it more

competitive?competitive? What’s the advantage?What’s the advantage? What are the drawbacks?What are the drawbacks? RecommendationsRecommendations

Questions or Questions or Comments?Comments?

Sources UsedSources Used

www.answers.comwww.answers.com www.audi.comwww.audi.com www.ati-ia.comwww.ati-ia.com www.flowcorp.comwww.flowcorp.com www.gm.comwww.gm.com www.kuka.comwww.kuka.com www.jeep.comwww.jeep.com www.microsoft.comwww.microsoft.com www.mcgraw-hill.comwww.mcgraw-hill.com

www.uky.eduwww.uky.edu www.orangecountychoppers.cowww.orangecountychoppers.co

mm www.search.eb.comwww.search.eb.com www.wagnercompanies.comwww.wagnercompanies.com www.world.honda.comwww.world.honda.com De Saint-Seine, Sylviane.De Saint-Seine, Sylviane.

Renault Plants Get Flexible. Renault Plants Get Flexible. Automotive News Europe.Automotive News Europe.