Manufacturing Management DM 202 Sem2 PDF

Manufacturing Management DM 202 Semester 2 – Introduction to Manufacturing Management Colin Andrews: [email protected] Topics for today  Types of manufacturing businesses  Manufacturing Layouts  Functional  Flow  Cellular  Project  Process  Factors affecting layout decis...

Manufacturing Management DM 202 Semester 2 – Introduction to Manufacturing Management Colin Andrews: [email protected] Topics for today  Types of manufacturing businesses  Manufacturing Layouts  Functional  Flow  Cellular  Project  Process  Factors affecting layout decisions  Groups! Classification of Companies Raw materials Components Subassemblies Finished goods Suppliers Customers Make To Stock (MTS) Assemble To Order (ATo) Make To Order (MTO) Engineer To Order (ETO) Stock held at this stage Types of companies that  Make to Stock? Fast Moving Consumer Goods e.g. mobile phones   Assemble To Order? Customised Products e.g. Mini, boilers   Make To Order? Specialised Equipment e.g. machining centres   Engineer To Order?  Bespoke Products e.g. power stations Material in the context of business processes  The Supply Chain Operations Reference (SCOR) model shows how material flows and business processes fit together Source: http://www.apics.org/apics-for-business/frameworks/scor Implications of SCOR model   Strong drive for manufacturing businesses to focus on ‘core competence’ Different stages of the SCOR model can be managed by other companies e.g.  third party logistics for deliveries and returns  Component suppliers for stock management  These companies could be on the manufacturing site or elsewhere  Can get very complex, very quickly  See Impact of Fukushima What we can do What we are really good at doing What is difficult to replicate Capabilities Competencies Core Competencies E.g. CSM  Supply chain management  ISO9000  EFQM  Six sigma  Lean  MRP/ERP  Strategy development  Performance measurement  Product development  Innovation  IT Strategy  BPR  Benchmarking  SPC  Collaborative enterprise dev.  Business Transformation © University of Strathclyde 2014  Supply chain management  EFQM  MRP/ERP  Strategy development  Performance measurement  BPR  Lean  Six sigma  Collaborative enterprise dev.  Business Transformation  Strategy development  Performance measurement  Collaborative enterprise dev.  Business Transformation  MRP / ERP  Six sigma  Lean Product Type     Products can be categorised based on the nature of the transformation of raw material ‘Explosive’ Product  A single / small number of raw materials result in a large variety of final products  e.g. chemicals, food products ‘Implosive’ Product  A large number of input materials are required to make a small variety of final products  e.g. electronics, aircraft Most visible when looking at Bill of Material (BoM) BoM example  Implosive?  Explosive? BoM example  Implosive?  Explosive? 80GSM / A4 / 1 Ream 80GSM / A4 / 1 Box 80GSM / A4 80GSM / A4 / 1 Pallet 80GSM / A3 100GSM / A4 80GSM Sheet 100GSM / A3 100GSM Sheet Wood Pulp 150GSM Sheet So …  Different Companies need different operations  Some companies excel at production operations (e.g. Toyota)    Some do not – but are excellent in other ways e.g. customer relationship management, product innovation What ‘best fits’ a particular company depends on many factors:  Market conditions (growth, contraction, stable/unstable)  Nature of product (fashionable, staple item, customisable …)  Manufacturing system It is important for the business to understand these factors Laying out a factory  How does the production of ethylene differ from that of an air conditioning unit? Focus on filling bottles with gas Focus on assembling machine that pushes gas around Laying out a factory  Would a factory produce both an electric drill and a drill press? NO! Very similar BoM but very different customer needs and market demand Laying out a factory  How does the production of a wind turbine differ from that of a mobile phone? Layout Operations Focus Production Format Product Variety Range of Manufacturing Architectures Low variety High variety Increasing Variety of Product Continuous Production Batch Production ‘Jobbing’ Production Project Build Product Focus Process Focus Production Lines Production Cells Skills Focus Function based Functional Layout   Like machines are grouped (in departments)  Lathes  Drill Presses  Grinders Machines are general purpose  Require set-up  Operators have specific skills  High variety of components can be handled  Expertise can be pooled  Machine and operator utilisation can be very high  Part routing can be complex  Suits Jobbing and Batch manuf Flow Layout  Equipment is laid out in a fixed sequence  e.g. for an inkjet cartridge line  Equipment becomes specialised  ‘Similar’ products use the same line  Providing a product range may require many lines  Part routing is simple (fixed)  Automation is supported  Suits low variety & high volume – continuous manufacture Rinse Fill Label Pack Palletise Cellular Layout  What happens when variety and volume are ‘medium’?  Products can be grouped in to ‘families’  Processing operations and routes are ‘similar’  Demand profiles are ‘compatible’  Workloads ‘balance’  (i.e. lots of judgement decisions here)  Factory consists of multiple ‘cells’ with required equipment  Cells operate independently (autonomously)  Can be highly flexible  Batch manufacture – could even be single units Project Layout  Layout is focussed on the final product (e.g. a ship)  All elements come to the production site    Labour  Machinery  Materials Materia l The Product Component Product may be moved afterwards (oil rig) or not (power s station) Suits low volume (unique) products  Often large or fragile  May contain high volume components Equipmen t Labou r ‘Process’ Layout  Chemical process based Liquids, powders, gases   General purpose equipment is linked together to produce a single product Pumps, valves, silos, reactors   Highly automated, centralised control  High capital investment  Low staffing  24/7 running  Hard to start / stop  Efficiency suffers Example – Alcan Chemicals  Manufacturer of specialty chemicals  Key customer groups are   Refractory products  Fire retardants Product nature is ‘explosive’ - a few raw materials lead to a large variety of final product SKUs (SKU = Stock Keeping Units) Layout Schematic Process layout  High capital  Layout fixed (cheaper to build new than move)  Flow is fixed (via pipework) Functional layout  Medium capital – general equipment  Layout fixed (equipment too costly to move)  Flow is flexible (material can be transported loose) Things to consider  When developing a layout What is the most appropriate overall architecture?     May involve a mix of the basic layout types  How will the layout meet the capacity requirements?  Is the layout based on optimistic / average / pessimistic projections?  How will the layout cope with variations (short and medium term)? What internal / external drivers  Types of equipment  Available floor space  Type of product Evolution of the layout  Cost to change  What technological changes may impact the layout?  What is the expected life of the layout? Summary  There are many basic forms of production layout  Actual layouts can / will be a mix of the basic forms  There is no ‘one best way’  So you can’t get it perfectly right  But you can get it very wrong  A layout must be related to, and fit with, the other areas of the business  Designing a layout is only part of the overall manufacturing system Groups! ● Sign in sheet shows which group I think you are in. ● Groups of 4 (3 off) & 5 (8 off) will stay as is ● Groups of 3 (3 off) will have an additional member each assigned (to make 6 groups of 4) ● Remaining students will be assigned into 4 more groups of 5 ● From next week attendance will be based on groups