Section B: Manufacturing Design, Planning, & Control Flashcards
(106 cards)
1
Q
Manufacturing environments, process types, and process layouts are all interrelated to some degree based on the
A
volume of production that is needed versus the variety of items that need to be manufactured.
2
Q
Variety might also be described as
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the degree of customer influence over design.
3
Q
The high variety, low volume end of the scale, for example, has
A
engineer-to-order (ETO), such as building construction, which is typically run using the project (project management) process type and a fixed position layout (meaning that the thing being made generally stays in one place).
4
Q
With ETO in particular, variety might best be described as
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a high degree of customer influence over the design.
5
Q
The high volume, low variety end of the scale has
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make-to-stock (MTS), which produces items to sell from inventory.
6
Q
A gas refinery could use a
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continuous manufacturing process type, as the materials flow without stopping through the refinement process, with a product-based layout that is designed to work with only a limited range of products.
7
Q
environments and process choices have some overlap where
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hybrid systems might be developed.
8
Q
Customer lead times tend to be very long for
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high variety, low volume production, often because engineering designs need to be made.
This lead time gets shorter and shorter as variety is reduced and volume is increased. Items that can be sold from stock have only ordering and shipping time as their lead time.
9
Q
Items that can be sold from stock have only
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ordering and shipping time as their lead time.
10
Q
Tasks are diverse and complex at the
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high variety, low volume end, as one might expect in building unique items or items in small batches.
11
Q
Tasks at the low variety, high volume end tend to be
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repetitive and are divided up into efficient groupings.
12
Q
There are three general categories of process types related to process frequency:
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project, intermittent, and flow.
13
Q
Projects have project scheduling, which means
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they proceed on their own custom schedules.
14
Q
Intermittent processes include
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work center and batch process types, and these are items best made in lots or batches.
15
Q
Flow processes include
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line and continuous manufacturing, and these are processes that ideally never stop, such as a bottling line.
16
Q
External influences, organizational strategy, the operations business plan, and customer and product characteristics will determine
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which combination of these elements will be the most efficient and effective for a given product or product line.
17
Q
Manufacturing environments, also called production environments or manufacturing strategies, are
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fundamental choices for manufacturing.
18
Q
Manufacturing environments are also called
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production environments or manufacturing strategies
19
Q
The optimum environment is based on
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volume, variety, and lead time.
20
Q
The nature of the product(s) being produced may also impact the choice of the manufacturing environment, and one way to analyze how products are best manufactured is with a
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product flow analysis.
21
Q
The interplay of volume and variety strongly impacts
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the cost of production.
22
Q
In addition to the basic product characteristics, lead time is another strong differentiator for
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manufacturing environment.
23
Q
delivery lead time is
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the time from the receipt of a customer order to the delivery of the product.
24
Q
supplier lead time
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the amount of time that normally elapses between the time an order is received by a supplier and the time the order is shipped.
25
Procurement lead time
the time required to design a product, modify or design equipment, conduct market research, and obtain all necessary materials. Lead time begins when a decision has been made to accept an order to produce a new product and ends when production commences.
26
Purchasing lead time
the total time required to obtain a purchased item. Included here are order preparation and release time; supplier lead time; transportation time; and receiving, inspection, and put-away time.
27
Manufacturing lead time
the total time required to manufacture an item, exclusive of lower-level purchasing lead time. For make-to-order products, it is the length of time between the release of an order to the production process and shipment to the final customer. For make-to-stock products, it is the length of time between the release of an order to the production process and receipt into inventory. Included are order preparation time, queue time, setup time, run time, move time, inspection time, and put-away time.
28
One basic determinant of necessary lead time is
the level of involvement the customer requires during design, manufacturing, or assembly, but product volume and variety also play a strong role.
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Low-volume items are cost-prohibitive to produce in
advance and so often require longer lead times.
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Customized items or allowing for design flexibility will require
longer lead times, while standardized items will shorten lead times.
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Another influence on lead time is
proximity to the customer, which is why some auto parts manufacturers locate their plants right next to the auto plant that uses the parts.
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A distribution network with a distribution center near customers is another way to
provide flexibility in the manufacturing model chosen while still satisfying customer lead time expectations.
33
Engineer-to-order
Products whose customer specifications require unique engineering design, significant customization, or new purchased materials. Each customer orders results in a unique set of part numbers, bills of materials, and routings.
34
Make-to-order
A production environment where a good or service can be made after receipt of a customer's order. The final product is usually a combination of standard items and items custom-designed to meet the special needs of the customer.
Where options are or accessories are stocked before customer orders arrive, the term assemble-to-order is frequently used.
35
Make-to-order produces
nothing until a customer order is received.
The organization may still cary inventory, but it is in the form of raw materials.
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The delivery lead time for make-to-order includes
production, assembly, and shipping, so lead time is still fairly long.
37
Make-to-order is best when variety is
medium to high and volume is low to medium.
A window produced to custom dimensions is one example; a high end guitar is another.
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What manufacturing environment are these examples of?
A window produced to custom dimensions.
A high end guitar is another.
Make-to-order
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Assemble-to-order (ATO)
A production environment where a good or service can be assembled after receipt of a customer's order. The kay components (bulk, semi-finished, intermediate, subassembly, fabricated, purchased, packing, and so on) used in the assembly or finishing process are planned and usually stocked in anticipation of a customer order. Receipt of an order initiates assembly of the customized product. This strategy is useful where a large number of end precuts (based on the selection of options and accessories) can be assembled from common components.
40
Assemble-to-order is useful where a
large number of end products (based on the selection of options and accessories) can be assembled from common components.
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Assemble-to-order builds standard components based on forecasts but waits to assemble or complete the processing of the components until
actual customer orders are received.
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Components
The raw material, part, or subassembly that goes into higher-level assembly, compound, or other item. This term may also include packaging materials for finished items.
43
Depending on what is actually being done during the assembly stage, ATO is sometimes called
build-to-order, finish-to-order, or even package-to-order.
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Assemble-to-order is often made more economical through a process called
modularization..
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Modularization
In product development, the use of standardized parts for flexibility and variety. Permits product development cost reductions by using the same item(s) to build a variety of finished goods. This is the first step in developing a planning bill of material process.
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In assemble-to-order, since the components are in inventory, the lead time is
short, consisting only of assembly and shipping. This results in lower inventory costs than a make-to-stock environment, because the components can be made into a wide variety of end products that, if all built, would require significantly more inventory overall.
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Assemble-to-order also reduces risks because
varieties that are not in demand will never be produced.
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ATO is best when
variety is low to medium and volume is medium to high. Customers will be involved in assembly decisions only.
49
Examples of assemble-to-order are
motorcycles.
| Laptop ordered online from a manufacturer (e.g., Dell or Apple).
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Make-to-stock (MTS)
A production environment where produces can be and usually are finished before receipt of a customer order. Customer orders are typically filled from existing stocks, and production orders are used to replenish those stocks.
51
Make-to-stock produces items for inventory based on
forecasts of demand.
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In make-to-stock, lead time can be very short, as it is limited to
shipping and a variety of methods can be used to ship or to position the inventory closer to the customer.
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In make-to-stock, customers are not able to make design decisions but may indirectly influence
designs of future products or product enhancements. This strategy entails high inventory costs.
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An example of make-to-stock is
a can of soup.
| a clothing store's inventory of underwear or plain t-shirts.
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Mass customization is an attempt to
serve markets that desire both high volume and high variety.
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Mass customization is
the creation of a high-volume product with large variety whose manufacturing cost is low due to the large volume, allowing customers to specify an exact model out of a large volume of possible end items. An example is a personal computer order in which the customer specifies processor speed, memory size, hard disk size and speed, removable storage device characteristics, and many other options when PCs are assembled on one line and at low cost.
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In mass customization, customers get some degree of customization, which manufacturing processes the products at
near the same cost as that of a high-volume process,
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Mass customization is usually considered to be a subset of
assemble-to-order because the customer is choosing among previously manufactured or purchased items; lead times can, however, be longer than for ATO.
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Configure-to-order has the same lead time as
make-to-order because the customer chooses a unique combination of features and options early in the manufacturing process.
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Postponement
A product design, or supply chain strategy that deliberately delays final differentiation of a product (assembly, production, packaging, tagging, etc.) until the latest possible time in the process. This shifts product differentiation closer to the consumer to reduce the anticipatory risk of producing the wrong product. The practice eliminates excess finished goods in the supply chain. Sometimes referred to as delayed differentiation.
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Postponement is sometimes referred to as
delayed differentiation.
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Postponement is an assemble-to-order strategy that often performs final assembly in a distribution center because
the assembly usually does not require specialized equipment or extensive manufacturing expertise. This may involve putting a country-specific power supply in a unit or labeling for a specific language. It could also involve shipping units by air with no individual packaging and adding the bulky packaging at the distribution center, which is what Hewlett Packard does. To the degree that high volumes can be output at a low cost per unit, this can also be considered a type of mass customization.
63
Package-to-order is a type of assemble-to-order that uses
postponement to delay packaging items produced and stored in bulk until orders for specific package sizes are received.
64
Package-to-order
A production environment in which a good or service can be packaged after receipt of a customer order. The item is common across many different customers; packaging determines the end product.
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A product flow analysis indicates the
logical flow of manufacturing processes as raw materials are transformed into finished goods.
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Product flow analysis is also useful in the
theory of constraints.
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A product flow analysis is often called a
VATI analysis because there are four basic conceptual flows that materials transformation processes can use at a plant, and the shapes of the letters V, A, T, and I indicate how materials flow through the process.
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VATI analysis
In the theory of constraints, a procedure for determining the general flow of parts and products from raw materials to finished products (logical product structure)... Once the general parts flow is determined, the system control points (gating operations, convergent points, divergent points, constraints, and shipping points) can be identified and managed.
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V-plants
A basic raw material (the bottom of the V) is split off into two or more products that diverge rather than being interrelated later. “A V logical structure starts with one or a few raw materials, and the product expands into a number of different products as it flows through divergent points in its routings.” For example, an organization that harvests trees might make various types of lumber.
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A-plants
Various raw materials are transformed in their own production processes and converge (at the top of the A) into one or more final materials, for example, complex products assembled from multiple subcomponents. “The shape of an A logical structure is dominated by converging points. Many raw materials are fabricated and assembled into a few finished products.
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T-plants
Raw materials are transformed using a single logical flow production line, but at some point, a limited number of basic units can be configured into many different end products (at the top of the T). “A T logical structure consists of numerous similar finished products assembled from common assemblies, subassemblies, and parts.
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I-plants
This is a basic linear flow for operations that use a production line or continuous flow process to produce one type of end product. “An I logical structure is the simplest of production flows, where resources are shared between different products and the flow is in a straight line sequence (e.g., an assembly line).
73
The product life cycle is a way of describing the
progression of a product through predicable life stages.
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Product life cycle
1) The stages a new product goes through from beginning to end (i.e., the stages that a product passes through from introduction through growth, maturity, and decline). 2) The time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) The period of time during which a product can be produced and marketed profitably.
75
Most product life cycles have these phases:
- Introduction
- Growth
- Maturity
- Decline
76
Introduction
Organizations usually need to spend a lot on marketing to raise awareness of the product. Design can be a differentiator, and ensuring availability may be an issue for distribution. Sales are very low during this phase, and the organization generally incurs losses rather than making a profit. Many products fail before they get to the next stage, highlighting the importance of needing good information on customer requirements and demand.
77
Growth
Successful products gain market share rapidly, for example, as retailers start carrying the product. This phase puts a lot of stress on manufacturing and distribution to scale upward or downward quickly if demand differs from what was projected during development, and quality or delivery service levels could suffer. If economies of scale can be generated, unit costs drop rapidly and high profits result, at least until competitors enter the market and force prices down. However, other competitors exit the market if their designs are proven less scalable. Thus product designs tend to stabilize during this phase.
78
Maturity
The product is no longer new, and many customers have already bought it. Or the market may be saturated with competitors, further reducing profit margins. Sales can still be steady for a long period. When sales volumes are sufficient, products might be enhanced to keep them profitable for longer or to allow time for replacement products to be developed. This could take the form of price reductions or additional services such as faster or more reliable delivery.
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Decline
The product is no longer in demand, or demand may be falling at a steady or increasing rate. This may be due to new alternatives or changing tastes. Profits might still be made in this phase, but this usually requires changing to a less expensive production environment such as make-to-order. There may be an ongoing need for spare parts or service. Other products must be phased out and replaced with new or improved products, and an exit strategy may be needed (in some versions of the life cycle, phase out might be shown as a separate phase).
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Which manufacturing environments work best with this life cycle phase - Introduction?
ETO
| MTO
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Which manufacturing environments work best with this life cycle phase - Growth?
MTO
ATO
MTS
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Which manufacturing environments work best with this life cycle phase - Maturity?
MTO
ATO
MTS
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Which manufacturing environments work best with this life cycle phase - Decline?
MTO
| ATO
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Engineer-to-order for the introduction phase
refers primarily to prototypes.
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Make-to-order may work well in the introduction and growth phases until the
volume demanded becomes high enough to switch to a different method. If this strategy is pursued, the organization needs a plan in place to transition to assemble-to-order or make-to-stock quickly enough to satisfy demand.
86
Make-to-stock works well in the growth and maturity stages but quickly becomes
unprofitable in decline, where assemble- or make-to-order are again recommended when feasible.
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If a product is to be phased out,
make-to-order may be the only way to allow this phase-out period to be of sufficient duration while remaining profitable.
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Buildings, ships, aircraft, and other large, complex deliverables are produced
using project manufacturing.
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Whenever the product is primarily made at one site, is unique, and has a deadline for completion,
project management techniques are recommended.
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Project management
The use of skills and knowledge in coordinating the organizing, planning, scheduling, directing, controlling, monitoring, and evaluating of prescribed activities to ensure that the stated objectives of a project, manufactured good, or service are achieved.
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Gantt Chart
The earliest and best-known type of planning and control chart, especially designed to show graphically the relationship between planned performance and actual performance over time. Named after its originator, Henry L. Gantt, the chart is used for (1) machine loading, in which one horizontal line is used to represent capacity and another to represent load against that capacity; or (2) monitoring job progress, in which one horizontal line represents the production schedule and another parallel line represents the actual progress of the job against the schedule in time.
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Project management has two key elements that differentiate it from normal operations:
It is time-delimited and it produces unique deliverables.
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Project process type uses a
fixed position layout
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Intermittent production
a form of manufacturing in which the jobs pass through the functional departments in lots, and each lot may have a different routing.
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Intermittent process types are useful when
there are many product design variants that have different process requirements and therefore have unbalanced workflows between work centers.
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Benefits of intermittent process types include
the flexibility to change order quantities or orders quickly and the relative ease of introducing new products.
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Intermittent processes might use
fixed position, functional, or cellular layouts.
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Two types of intermittent manufacturing are
work center and batch
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The work center process type, also called job shop or intermittent manufacturing, is
organized around similar processes and usually involves smaller lots or batches.
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Work centers are production areas that are grouped by
function, such as all lathes in one area and all sanding in a different work area.
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Products are routed between work centers in odd patterns depending on
what process needs to be done next. The emphasis in planning is to have fast changeovers with skilled, flexible labor.
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The batch process type, also called batch flow or lot manufacturing, is a
version of intermittent manufacturing for higher production volume.
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Lots or batches are larger, and the flow between the chain of activities is optimized to
minimize distances traveled between workstations. The emphasis in planning is to have longer production runs and fewer changeovers.
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As we move into the higher volume, lower variety end of the scale,
flow manufacturing takes over.
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Flow processing
In process systems development, work flows from one workstation to another at a nearly constant rate and with no delays. When producing discrete (geometric) units, the process is called repetitive manufacturing; when producing non-geometric units over time, the process is called continuous manufacturing. A physical-chemical reaction takes place in the continuous flow process.
106
Flow shop
A form of manufacturing organization in which machines and operators handle a standard, usually uninterrupted, material flow.
The operators generally perform the same operations for each production run. A flow shop is often referred to as a mass production shop or is said to have a continuous manufacturing layout. The plant layout (arrangement of machines, benches, assembly lines, etc.) is designed to facilitate a product “flow.” Some process industries (chemicals, oil, paint, etc.) are extreme examples of flow shops. Each product, though variable in material specifications, uses the same flow pattern through the shop. Production is set at a given rate, and the products are generally manufactured in bulk.
