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CHAPTER 2
Production Systems
IE 305 –
BUS 307
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High
Profitability
Low
Costs
Low UnitCosts
High
Throughput
Less
Variability
High
Utilization
Low
Inventory
QualityProduct
High
Sales
Many
products
Fast
Response
More
Variability
High
Inventory
Low
Utilization
Short
Cycle Times
High Customer Service
Production Objectives
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System Components and Hierarchy
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Corporation
Parts Plant 2
Shaft Production
Gear Hobber
Power
Controller
Parts Plant 1 Assembly Plant 1
Robotic Load/
Unload
Tool
Exchanger
Force
Sensor
Equipment
level
Automated Part
Handling SystemCNC LatheCNC Mill
Gear ProductionHeat
TreatingPurchasing
Workstation
level
Department
level
Shop
level
Corporate
level
Parts Plant 2
Gear Hobber
Assembly Plant 1
CNC Lathe
Gear ProductionHeat
TreatingPurchasing
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Production Activity
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Fabrication
Plant
Assembly
Plant
Distribution
Center
Retailer
Forecasting
Strategic Planning
Aggregate Production
Planning
Disaggregation
Production Scheduling
Shop Floor Control
Administrative Functions
(Purchasing, Payroll,
Finance, Accounting)
Marketing
Product Design
Process Planning
Manufacturing Support
(Facilities Planning,
Tool Management,
Quality Control,
Maintenance)
a) Product Flow b) Decision Hierarchy c) Support Functions
Raw Material
Customer
Finished
Products
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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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Decision Maker Compares / Benchmark actual information
with plan & generate the set of instructions for correcting thedeviations & sends it to control (Plan versus Actual)
Control sends instructions at an appropriate point for
execution & bring back process under control
Production System
CONVERSION
PROCESSINPUT OUTPUT
CONTROL
DECISION MAKER
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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
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Life cycle phase of Project
Introduction ( Low volume
,High Variation)
Growth ( High volume , LowVariation)
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 throughI –G-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 Mass Production
Printing Job
Machine Building
Batch Type
Washing Machine
Fridge / TV / CAR
Spoons / Hair Pins /
Soaps / Chocolates
Process Type
Cement / Sugar /
Chemical Industries
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•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
Intermittent System
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OP1 Information & Control Decision Maker
OP3
OP2
OP4
Storage1
Storage 2
Storage 3
Storage 4
Storage 5
Ex. Paper cutting machine
Intermittent System
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• 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
Intermittent System Classification• Job Production • Batch Production
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• Batch Production
•
Batch Production : It is a extension of job type productionWhole 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,
Electronic instruments
Intermittent System Classification
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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 beused
OP1
Storage1
Information & Control Decision Maker Input
OP2
OP3 OP4
Storage2
OP5
Output
Ex. Bottling Plant
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Types of Production Systems
CLASSIFICATION 2
There are four basic types of productionsystems:
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
Make-to-stock
standardized
commodities
Continuous
process industries
repetitive mfg
Product Layout
Assemble-to-order
modular
Hybrid, FMS,
CAM, CIMCellular Layout
Job-Shop(Intermittent) Process Layout
Engineer-to-order
one-of-kind
Special Project Fixed Position
PRODUCTS PROCESSES LAYOUTS
Make-to-order custom
low volume,
low variety
low volume,
high variety
low volume,
medium variety
high volume,
low variety
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Fixed Position Layout
•The product or project remainsstationary, 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 theprocesses 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
Process Layout –products travel
to dedicated process centers
Milling
Assembly
& Test Grinding
Drilling Plating
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Product Layout
Sometimes called line layout, flow line or assemblyline
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
materials
or customer
Finishe
d itemStation
2
Station
3
Station
4
Material
and/or
labor
Statio
n
1
Material
and/or
labor
Material
and/or
labor
Material
and/or
labor
Used for Repetitive or Continuous Processing
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Cellular Layouts
– machines are grouped into a cell that can processitems that have similar processing requirements
– Based on Group technology which involvesgrouping items with similar design or manufacturing
characteristics into part families Could be considered as mini product layouts
Can improve and simplify a functional/processlayout
Flexible Duplicates some resources
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Original Process Layout
CA B Raw materials
Assembly
1
2
3
4
5
6 7
8
9
10
11
12
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Cellular Layout
3
6
9
Assembly
12
4
8 10
5
7
11
12
A B C
Raw materials
Cell 1 Cell 2 Cell 3
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• 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 eachstation
Efficiency
Process
Comparison of Product and Process Layouts
High skills
High in-process, low
finished goods
Large
Variable path (forklift)
Wide
Dynamic (More difficult)
Functional
Minimize materialhandling cost
Flexibility
Product
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Product Volume and Variety
Product
Layouts
Fixed
PositionLayouts Mixed Layouts Process Layouts
Quantity
Number of Different Products
Cellular
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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 processingtime
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
Long Range Economic Forecasts
Financial Choices
Strategic
Planning
Operating Facilities
Product Line (Families)
Technologies
Years
Processing Technologies/Efficiency
Medium Range Product
Family Forecasts Machine Schedules
Aggregate
Production
Planning
Production Level
Workforce Level
Family Inventories
Months
Production Levels
Workforce Levels
Current Inventory Status
Changeover Times and Costs
Item Forecasts
Disaggregation Master Production Schedule
(MPS) - Final Assembly by item
Item Inventories
Weeks
MPS
Bill of Materials
Process Plans
Production
Scheduling
Job Priorities
Order Releases
Machine Schedules
Days-Shift
Labor Status
Machine Status
Job Priorities
Order Releases
Machine Schedules
Shop Floor
Control
Machine Priorities
Job Status
Labor Reporting
Material Handling Tasks
Load/Prices/Unload Authorization
Real Time –
Minutes
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QUESTIONS???
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