4B6-Lecture 1-Manufacturing system-Intoduction.pdf

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About This Presentation

Its the topic related to MAnufacturing system in Mechanical Manufacturing system


Slide Content

Introduction to Manufacturing Systems
4B6 -Manufacturing Systems
3MEMS5 -Operations
Dr. Shuo Yin
Assistant Professor
[email protected]
https://www.tcd.ie/mecheng/research/stam/
Trinity College Dublin, The University of Dublin, Department of Mechanical and
Manufacturing Engineering, Parsons Building, Dublin 2

Trinity College Dublin, The University of Dublin
Teaching Plan – Part 1
Monday(10 -12) Friday (12 -13)
1Introduction to Manufacturing SystemAutomation in Manufacturing
2 Cost of Production Plant Layout
3 Public holiday Plant Layout
4 Material Requirement Planning Material Requirement Planning
5 Just in Time
Automated Production
Artificial Intelligence in Manufacturing
6 Revision + assignment release (20%) In-class test (30%)
Learning outcome is assessed through “in-class test” and “assignment”

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Learning Outcomes
✓Understand the difference between manufacturing and manufacturing
systems
✓Understand generic business strategies and manufacturing strategies
✓Understand four common production processes
✓Understand Break Even Quantity (BEQ) and its calculation
✓Understand four commonly used management tools in manufacturing
systems
✓Understand role of manager in a company
✓Understand key success factors in manufacturing competitiveness

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Manufacturing
Manufacturing: the transformation of raw materials into finished parts or goods that
have value in the marketplace
Goal: to create and add value to the inputs during the transformation.
Think about: how does manufacturing add values to raw materials?
Example: how does manufacturing add values to plastic cups?

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Manufacturing systems
Manufacturing system (a bigger vision): a collection of raw materials, equipment,
people, information, management, transportation, production, delivery and other
elements to satisfy market and societal needs -----a system rather than a process
✓Raw materials - plastic, metals, concrete…
✓Resources – water, electricity, heat…
✓People – worker, manager, HR, cleaner…
✓Equipment – manual operated, semi-automated, fully automated…
✓Layout – process layout, product layout, cell…
✓Material handling – single stations load and unload, multiple workstations
✓Management – finance, inventory, quality control, transportation, employee welfare…
✓……

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Manufacturing systems
In a manufacturing system, manufacturing is the technical coreand is linked with
Suppliers/Finance/ Accounting/ HR. All functions are integrated to increase efficiency.

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Manufacturing systems
✓Marketing division –forecast or receive orders, send information to supplier
(for raw material or parts ordering), and to manufacturing center (for
production scheduling).
✓Suppliers–deliver correct materials and parts on time to the manufacturing
center.
✓Manufacturing center -transform raw materials and components into goods
based on production schedule.
✓Human resources division -ensure that enough workers are hired and
available to carry out the work.
✓Accounting division -manages the company’s finances and allocate money to
different areas such as payroll, procurement, capital investment, R&D etc.

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Evolution of manufacturing systems
✓Ancient times - skilled person makes goods for individual customers.
❖Basic tools and handcraft (low efficiency)
✓1700s - 1
st
Industrial evolution
❖Machines are used for production
❖Production is broken down into small tasks, each task was performed by an
individual worker (high efficiency)
Ancient bronze arts Weaving factory

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Evolution of manufacturing systems
✓1900s – production process is analysedand standardized in order to make sure the best
performance of each job and the highest efficiency
❖Large amount of Automation (e.g., application of conveyor, first production line).
❖Scientific management philosophy becomes important
❖Example: Ford optimized their production process by using conveyor and scientific
management to reduce the car manufacturing time from 728 hours to 1.5 hours.
The concept of manufacturing system was born in this time.

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Evolution of manufacturing systems
✓1960s – Toyota developed an advanced manufacturing systems aiming at reducing
waste within production system and producing goods with high quality and low cost.
❖Just-in-Time management philosophy
❖The manufacturing, business and marketing functions are all integrated by JIT and
work closely together.

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Manufacturing systems
✓There are many different manufacturing systems in the world.
✓Different companies use different manufacturing systems.
✓A good manufacturing system must match company’s business strategy and
manufacturing strategy so that the company is competitive and can make
profit.
✓A good manufacturing system must match the production process used by the
company.

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Generic Business Strategies
✓Define a primary task -represents the purpose and business of the company. E.g.,
Dell makes computers, McDonald’s severs food, Dublin bus make profits via
transportation.
✓Assess core competencies -this is what a company does best, better than any of its
competitors, e.g., exceptional service (Michelin restaurant), fast service
(McDonald’s), first to the market with a new design (Apple), high tech (Zeiss) .
Core competence is usually based on knowledge or processes.
* A company must have a clear vision of its Business Strategies

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Generic Business Strategies
✓Determining order qualifiers and order winners–order qualifiers are necessary
characteristics that a product must possess for it to be entered into competition (touch
screen). Order winners are the ‘winning’ characteristics that lead to customers buying a
product (e.g, 5G network, foldable screen). Today’s order winner will become
tomorrow’s order qualifier (e.g., touch screens, fingerprints). Core competence should
match the order winning characteristic of its product.
✓Positioning the Firm – a company chooses one or two important things to concentrate
on and do them extremely well. This defines how well it will compete in the market
and what unique value it will deliver to the consumer. E.g., Apple concentrates on new
design and tech; MacDonald's concentrates on reducing waste and cooking time.
* Once the company has a strategy, it has a picture of what it does best

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Generic Manufacturing Strategies
Make to Order -products are designed, manufactured and delivered to customer upon
receiving an order. E.g., custom-tailored suits, artificial implants, specific parts tailored
for a machine, etc. Pull system (supply chain concept): products is pulled to
manufacture from customers’ purchase.
✓Important: customer-tailored requirement, quality and lead time.
✓Less important: cost
✓Advantages: minimum waste (materials, labor time, energy), customized products
✓Disadvantages: irregular production, long waiting time
* A company must have a clear vision of its Manufacturing Strategies

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Generic Manufacturing Strategies
Make to Stock -products are designed and manufactured for ‘standard’ customers in
anticipation of demand. The items are stored and the consumer chooses from a range
of items that are available. E.g., consumer electronics such as mobile phones, or a litre
of milk and most of the products in supermarket. Push system: products being
pushed to production from expected sales.
✓Important: correct forecast.
✓Less important: customer-tailored requirement
✓Advantages: minimum waiting time, high-volume production
✓Disadvantages: incorrect inventory and forecast cause significant waste

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Generic Manufacturing Strategies
Assemble to Order: products are quickly assembled using basic parts or modules of
the product are already manufactured and delivered to customer upon receiving an
order. E.g., customer-tailored desktop. It is a combination of MTO and MTS.
✓MTO characteristics: customization.
✓MTS characteristics: basic parts already manufactured before order
✓Advantages/disadvantages : a balance between MTO and MTS

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Generic Manufacturing Strategies
Decide which manufacturing strategy the following items fit into
1. A burger in MacDonald fast food restaurant
2. A specially iced birthday cake from a baker
3. A made-to-measure suit of clothes
4. A Zara jacket sold from a store
5. A garden table set sold by a hardware shop
Practice:
ATO
MTO
MTO
MTS
MTS

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Types of Production Processes
Project production-takes a long time to complete, involves a large investment of
resources and produces one item at a time to a customer order.
✓Extremely high flexibility, extremely low production rate
✓Examples:prototype, roads and building constructions, aircraft manufacturing.

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Types of Production Processes
Batch Production -products are made in batches, same goods go through the
manufacturing process together in groups or batches. Individual items do not pass to the
next stage until all of the products in the group have completed the previous one.
✓High flexibility, relatively low volume production, inefficient (idle time, machine or
labour).
✓Examples: bakery, circuit boards, cloth factory

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Types of Production Processes
Mass Production (flow production) -standardized products are produced in large
volumes, often using assembly lines or automation technology. The product open goes
through multiple stages of a production line.
✓Low flexibility, high production volume, well control of quality of each product.
✓Examples: most consumer goods are produced using this method, e.g., cars, iMac

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Types of Production Processes
Continuous Production –a derivative from mass production. Product is continuously
produced over a period of hours, days, weeks or even years.These are highly
standardized and are produced using highly automated systems.
✓Low flexibility, extremely production high volume, able to produce 24 hours a day.
✓Examples, electricity, treated water

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Product Process Matrix
Relationship among production volume, level of product standardization and production
process
Production volume vs Standardisationof a product vs Production process

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Application of Product Process Matrix
Helpa company to choose correct production process / allow a company to see where
they are best positioned to compete with others.
✓On the diagonal line: the product and process used to make it are matched.
✓Off the diagonal line: product and process are not matched, it is unlikely that they are
working efficiently.
a product with high
demand
needs
a process of high-level
standardization

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1.Which method costs the least to manufacture the 500 items?
2.How many items would need to be made so that the cost of the press tool can
be justified?
Pan prototype
A company will make 500 pans. There are two
possible production processes to be selected:
A.The base is manufactured manually by a skilled worker on a one by one basis in
batch (skilled worker costs €2.50 per item).
B.The base is manufactured automatically by a pressing machine. A skilled operator is
not needed but there is a significant cost in purchasing the press tool (pressing tool
costs €500, operator labor costs €0.50 per item) .
Selection of Production Process (cost perspective)
Q:

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Selection of Production Process (cost perspective)
Method A: Overall cost = € 2.5 ×n
Method B: Overall cost = € 500 + (€ 0.5 ×n)
Solution (Q1):
Method A: Overall cost = € 2.5 ×500 = € 1250
Method B: Overall cost = € 500 + (€ 0.5 ×500) = € 750
Solution (Q2):
250
Break Even Quantity

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Selection of Production Process (cost perspective)
The chart shows how the costs relate to one another. Each line shows the total cost as the
number of items made increases for Method A and Method B. The point where the lines
cross is called the Break Even Quantity (BEQ), i.e. either process will cost the same.

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Managementtools in Manufacturing Systems
Balanced Scorecard –a collection of performance measures that monitora company ‘s
progress toward achieving its goals.
✓It is applied to assist in
monitoring company
performance.
✓It is driven by company’s
strategy. Different companies
have different measures
✓Each measure takes equal or
near equal weight.

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Managementtools in Manufacturing Systems
✓Supply chain: a network of facilities that purchase raw materials, transform them
into intermediate goods via manufacturing or service and then into final products,
and deliver the final products to customers through a distribution system.
✓A simple supply chain includes three trading partners: one supplier, one company,
and one customer.
✓A complex supply chain may include hundreds of trading partners: multiple
materials producers, manufacturers, service providers, distributors, retailers, and end
users.
✓Management example: Walmartand Procter & Gamble manage their supply chain by
share information freely.
Supply Chain Management –to assist in developing and monitoring relationships
within the supply chain for economic or strategic advantage

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Managementtools in Manufacturing Systems
Benefits: reduce inventory and costs at both companies
P&G products is running low
Monitor
system
Ship more
Real-time or not
P&G Monitor
system
Suppliers
P&G factory Low inventory
Walmart chain
P&G chain

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Managementtools in Manufacturing Systems
Just-In-Time (JIT) Inventory - is an inventory strategy that focuses on reducing waste
and inefficiency by ordering inventory items so that they arrive just when they are needed.
Goods are produced to customer order, not to anticipated demand
✓This strategy greatly reduces inventory and warehousing costs by 50% -60%.
✓In JIT inventory, products are completed in small batches in response to customer
requests.
✓It takes time and effort for a company to switch to JIT inventory, a company needs to
make huge change to its manufacturing system, e.g., rearrange plant layout, new supply
chain, new equipment, new employee, new quality control system, etc.
✓There is no guarantee that the final system will work for everyone.

Trinity College Dublin, The University of Dublin
Managementtools in Manufacturing Systems
Enterprise Resource Planning (ERP) Systems –software-based automated management
system (e.g., Oracle) to accumulate all information (marketing, finance, production)into a
single information system, and provide information to decision makers.
✓Eliminate mismatch between different departments, and redundant systems
✓Share date with other departments to improve efficiency.
✓Example: when a salesperson enters an order, she/he can easily see the customer’s credit
status and the number of units on hand.

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Managementtools in Manufacturing Systems

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Managementtools (practice)
JIT-I ERP SCM BS
Replaces its accounting, marketing , sales,
and production information systems with an
integrated software solution.
Evaluate its performance using metrics such
as customer satisfaction, employee training
hours, and traditional financial measures.
Requires its suppliers to deliver components
in orders of 25 every two hours rather than
2,000 every month.
Decides to implement a system of regional
distribution centers to better meet the
delivery needs of customers.
Practice: indicate the management tool being implemented

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Role of manager
Planning
Managers must participate in short-term and long-term (strategic) planning activities,
establish the direction in which a company wishes to go in the future. E.g, type of
products, budget allocation, target market, suppliers etc.
Controlling
After plans have been put in place, managers must involve in controlling activities to
monitor day-to-day operations to ensure that processes are operating as expected. If
something incorrect happen, corrective action should be taken before the problem
becomes worse.
Controlling can be in real time or once an hour or once a day. The more frequent the
controlling activity, the faster an out-of-control process can be corrected.

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Role of manager
Evaluating
Once operations have been completed (at the end of a job or a period), managers review
the information and compare actual results to planned results. The results of this
evaluation may lead to changes in business processes, or even in strategy.
Decision Making
Make choice through gathered information; it is the core of managerial activity
✓HR manager must select the best employees to be hired.
✓Purchasing manager must decide the best suppliers
✓Advertising manager must choose the best plan deliver the best message to potential
customers.

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Role of manager

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Role of manager (flow chat)
sales forecasts supply price
manufacturing
capacity
production schedule operating budget
monitor production
rates
compare production
rates with plan
work overtime
shift production line
compare final
production to plan (end)
Make changes next job
Check machine
condition
Gathered
information
Planning Controlling Evaluating Decision making

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Role of manager (practice)
PlanningControllingEvaluating
Decision
making
Make budget for 2023
Choose to replace the an old
CNC with the latest model.
Comparethe revenue of 2021
to 2020 to see how well the
business performed in 2021.
Check the conveyor to make
sure that production line is in
good condition
Practice: Identify the following four actions for a manager

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Key Success Factors in Manufacturing Competitiveness
Competing on Cost - companies must try the best to eliminate all waste in the production
process. This can be achieved by reduce labor cost, automatize the production process,
standardize the products.
✓Lidl: buildings, layout and goods on sale are standardized, etc.
✓Ryanair: no free baggage, no meals, online-booking only, print ticket at home, etc
✓Move factories to developing countries.
Competing on Quality - companies must view quality as a means to please the
customer, not just a way to avoid mistakes or defects. Customers are often prepared to
pay more for a product that they believe is of higher quality than its competitors.
✓Mercedes: premium car with high quality
✓Micheline restaurant
✓iPhone

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Key Success Factors in Manufacturing Competitiveness
Competing on Flexibility – companies must have the ability to quickly change the
type, quantity and design of products. This can be achieved through a flexible
production line.
✓Dell: customer can customise from online (CPU, memory, hard drive, etc.)
✓Audi: customer can customise from online (engine, colour, trim, etc.)
Competing on Speed – companies must have close contact with both suppliers and
customers. Materials or componentsare delivered to the factory exactly when they are
needed and the assembled machine leaves the factory as soon as it is packed.
✓DHL/UPS: receive package, transport, deliver in short time
✓Deliveroo: receive orders, collect food, deliver to customer in short time.