Manufacturing Environment

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1. Product design

2. Product design process

3. Process selection4. Process flow design

5. Automation

Manufacturing

Environment

1Chapter 2 Manufacturing Environment


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Chapter 2 Manufacturing Environment 2

Organizing for Product

Development Historicallydistinct departments

e.g. R&D, Design Engineering., Manufacturing Engineering,

Production

Duties and responsibilities are defined

Difficult to foster forward thinking

Assignment of Product managers who champions the

product

Todayteam approach

Representatives from all disciplines or functions

These teams make the product a success

Concurrent engineeringUse of such cross functional teams


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Product selection decisions: Choosing the good or

service to provide to customers.

Strategy support competitive advantage through:

Differentiation (Specialty hospital vs. general )

Low cost (restaurants that have products which require

minimum of labor costs in small kitchens) Low cost and

higher value.

Rapid response (Toyotas strategy to changing customer

demand. Toyota designs a product well within 2 years

whereas the industry standards are >2 years. Toyota gets a

car to market before consumer tastes change )

Product Selection Decisions


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Product Design Process

In todays world, companies often outsource major

functions

Companies that specialize in manufacturing productsfor other companies (i.e. contract manufacturers)

have become very successful

Close coordination is required to manage the

network of manufacturing plants and contract

manufacturing partners for success



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A company must decide what their core competency

should be

Core competency is the one thing that it can do

better than its competitors A core competency can be anything from product

design to sustained dedication of employees

Characteristics of core competency: It provides potential access to a wide variety of markets

It increases perceived customer benefit

It is hard for competitors to imitate



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The real challenge for a firm is to decide exactly how thevarious functions critical to success will be handled

At one extreme is the fully vertically integrated firm where

all activities from the design to fabrication of the individualparts are handled in-house

At the other extreme is a company that only sells products

and outsources all the design and manufacturing functions

While Dell outsources components, it uses longer-term relationships

with its suppliers and links them into its information system to

support quick response



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Product Design

Product design is the process of deciding thecompanys product unique characteristics and

features.

Product design defines a products characteristicslike - Appearance, materials, dimensions,

tolerances, performance standards

Product design must support the business strategyProduct design must match the needs and

preferences of the targeted customer group



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Product Design Development

1.Need Identification: Identify customersneed

2.Concept Development: Description of

form, functions, features3.Product Design: Specification of

geometry, materials, and tolerances

4.Production Process Design andDevelopment: Design and develop

systems like material acquisition, human

resource, storing, transportation, 8Chapter 2 Manufacturing Environment


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5. Testing and Refinement: Prototypes are

made and tested and improvements are

done

6. Product Launch and Support: Train workforce

Provide warranty

Avail repair parts and after sale services Upgrade parts



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Process Flow StructuresThis refers to org anizat ion of m ater ia l f lowusing one

or more process technologies

Types of Major Process Flow structure:

Job shop: Production process of small batches of largenumber of products Such as plants that make customer-designed product

Batch shop: standardized job shop such as Medicine

Assembly Line:Automobile manufacturer

Continuous Flow: Conversion or further processing of

undifferentiated materials such as Chemical 10Chapter 2 Manufacturing Environment


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Product Process Matrix

IV.

Continuous

Flow

III.Assembly

Line

II.

Batch

I.

JobShop

LowVolume,

One of a

Kind

MultipleProducts,

Low

Volume

Few

Major

Products,

Higher

Volume

High

Volume,

High

Standard-

izationCommercial

PrinterFrench

Restaurant

Heavy

Equipment

Automobile

Assembly

Burger King

Sugar

Refinery

Flexibility (High)

Unit Cost (High)

Flexibility (Low)

Unit Cost (Low)

These are

the major

stages of

product

andprocess

life cycles

None

feasible

None

feasible



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Break-Even Analysis

A means of finding the point, in rupees and

units at which costs equals to revenues

A standard approach to choosing amongalternative processes or equipment

Firm must operate above this level to

achieve profitability



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Numerical Problem

A firm is selling two products, chairs and

bar stools each at Rs 50 per unit. Chairs

have a variable cost of Rs 25 and bar

stools Rs 20. Fixed cost for the firm is Rs20,000.

If the sales mix is 1:4 (one chair sold for

every four bar stools sold), what is the

break-even point in rupees and units of

sales? 13Chapter 2 Manufacturing Environment


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Process

A process is any part of an organization that

takes inputs and transforms them into outputs

that are of greater value to the organization

than the original inputs.

A process that does not meet the needs of the

firm will punish the firm every minute.



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Types of Processes

Conversion (ex. Iron ore into steel sheets)

Fabrication : Changing materials into specific

form(ex. Forming gold into a crown for tooth)

Assembly:Assembling parts into components(ex. The production process in a modern car

plant)

Testing :Not fundamental process, but acted asa standalone major activity (ex. quality of

products) 15Chapter 2 Manufacturing Environment


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Manufacturing Process Flow

Design

It is a method to evaluate the specific

processes that raw materials, parts, and

subassemblies follow as they move

through the plant.

A good way to start analyzing a process is

with a diagram showing the basic

elements of a process: Tasks, flows, andstorage areas

Tasks are shown as rectangles

Flows as arrows



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Tools

Assembly drawing: exploded view of

product showing its components

Assembly chart: Information presented in

the assembly drawing about order and

flow pattern

Route sheet: specifies operations and

process routing for a particular part

Process flow chart: denotes what

happens to product as it progresses

through the facility 17Chapter 2 Manufacturing Environment


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Assembly Chart: Setting up

Fan

A-1SA-1

1

2

3

4

Frame

Mount switch

Motorhousing

Blade

A-6Component/Assembling Operation

Inspection



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Tools for Process Design

O:Operations

: Transportations

: Inspection

: Delay

: Storage 19Chapter 2 Manufacturing Environment


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Process Flow Chart

MaterialReceived

from

Supplier

Inspect

Material for

Defects Defects

found?

Return to

Supplier

for Credit

Yes

No,

Continue



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Product Life Cycle

Products are born. They live and they die

Phases: Introduction, growth, maturity, decline

Product life cycles may be of few hours( a

newspaper), months (seasonal fashions), years (video

cassette tapes) or decades (generators).

Typically a firm has negative cash flow while it

develops a product. When the product is successful,

those loses may be recovered.Chapter 2 Manufacturing Environment 21


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22

Product Life Cycle, Sales, Cost,and Profit

Sales,

Cost&C

ashFlow

Introduction Maturity DeclineGrowth

Cost of

Development

& Manufacture Sales Revenue

Time

Cash flowNegative

cash flow

Net revenue


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Stages of Product Life Cycle

Introductory: they warrant unusual expenditure for:research product development, process modification, supplier

development

Growth: Adding capacity to accommodate the increase in

product demand may be necessary

Maturity: Competitors are established. So, high volume,

innovative production may be appropriate. Improved cost

control and reduction in options may be effective for

profitability and market share.

Decline: Be ruthless to the products whose life cycle is at

end. Unless dying products make some unique contribution,

their production should be terminated



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Product Life-Cycle Management

It is a software program that tie together manyphases of product design and manufacture

The idea behind PLM software is that product

design and manufacture decisions can be performed

more creatively, faster, and more economically whendata are integrated and consistent

Integration of tasks (product design, design for

manufacture and assembly, material, layout, maintenance

and even environmental issues) make sense because

many of these decisions areas require overlapping



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Process Technology Life Cycle and

Selection of Appropriate Technology

Process technologies have life cycles similar to product life

cycle

Types of manufacturing technologies changes in its life cycle

because of change in volume, process innovation, and

automation

Manufacturing process technology begin from job shop at

start up and moves towards the continuous process

technology.

Volume and standardization are low in initial stages of life

cycle making unit manufacturing cost higher

High volume is produced and process are standardized during

last stages of life cycle making unit cost lower



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Green Manufacturing

Making environmentally sound products through efficient

processes

Make products recyclable e.g. Beer cans at TUBORG

Use recycled materials e.g. Scotch-Brite soap pads at 3M

Use less harmful ingredients

Use lighter components e.g. auto industry

Use less energy

Use less material


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Manufacturing Environment