Lecture 1, Introduction - Manufacturing Principles

‫إدارة نظم التصنيع‬ ‫هصن ‪520-3-‬‬ Lecture 1 Introduction  Introduction What is “Manufacturing”? The original meaning of manufacture was to make things by hand. 'Manufacturing’ is recognized as a series of productive activities: planning, design, p...

‫إدارة نظم التصنيع‬ ‫هصن ‪520-3-‬‬ Lecture 1 Introduction  Introduction What is “Manufacturing”? The original meaning of manufacture was to make things by hand. 'Manufacturing’ is recognized as a series of productive activities: planning, design, procurement, production, inventory, marketing, distribution, sales, and management. Manufacturing management focuses on the complex linking of design into the manufacturing system. A place that executes manufacturing is a 'factory’ or a 'workshop’ Firms or companies concerned with manufacturing are 'manufacturing firms’ or 'manufacturers’.  Manufacturing vs Production Production: A broader term surrounding the entire process of creating something, from gathering resources and planning to creating the final output. This can include both goods and services. Manufacturing: A narrower term, typically referring to the process of transforming raw materials into finished goods using tools, machinery, and labor. It focuses on the physical creation of tangible products. Example: Imagine building a house. Production: Finding land, securing financing, hiring architects and builders, acquiring building materials, and the actual construction process all fall under production. Manufacturing: The actual process of assembling pre-fabricated materials like walls, roof, and windows into the finished house structure would be considered manufacturing.  Why is Manufacturing Important? Manufacturing Matters in Three Features 1. Providing basic means of human existence: Without the manufacture or production of goods, a human being cannot live, which is increasingly so in modern society. 2. Creation of wealth for nations: The wealth of a country or a nation is created by manufacturing. A country where manufacturing has been exhausted becomes poor and weakened. 3. Quality of life: Access to manufactured goods can improve people's quality of life by providing essential products and services. Manufacturing ensures that people have access to a wide range of essential goods and services. It also can help to make products more affordable by improving production efficiency and reducing costs.  Manufacturing and Economy Economic Growth Job Creation: Manufacturing industries often employ a significant portion of the workforce, providing jobs and income for millions of people. GDP Contribution: Manufacturing sectors contribute substantially to a nation's Gross Domestic Product (GDP), driving overall economic growth. Multiplier Effect: Manufacturing can create a ripple effect throughout the economy, as businesses that supply raw materials, components, or services to manufacturers also benefit. Technological Innovation Research and Development: Manufacturing often drives research and development, leading to advancements in technology and productivity. Product Development: Manufacturers continually innovate to create new products and improve existing ones, stimulating economic growth and consumer demand. Supply Chain Efficiency: Manufacturing advancements can lead to more efficient supply chains, reducing costs and improving competitiveness.  Manufacturing and Economy International Trade Exports: Manufactured goods are a major component of international trade, generating revenue for exporting countries and supporting economic growth. Imports: Importing manufactured goods can provide consumers with a wider range of products at lower prices, but it can also impact domestic industries and jobs. Global Value Chains: Modern manufacturing often involves complex global value chains, where components are produced in different countries and assembled into final products. Regional Development Industrial Clusters: Manufacturing can create industrial clusters, where related businesses and industries are concentrated, leading to economic development and job creation in specific regions. Infrastructure Investment: Manufacturing often requires significant infrastructure investments, such as transportation networks and energy supplies, which can benefit entire regions.  Manufacturing and Sciences Engineering Sciences Mechanical Engineering: This field is essential for designing and analyzing machinery, equipment, and manufacturing processes. Industrial Engineering: Industrial engineers optimize processes, improve efficiency, and manage resources within manufacturing facilities. Materials Science: This field focuses on the development and characterization of new materials for use in manufacturing. Other Sciences Mathematics: Mathematics is used extensively in manufacturing for data analysis, modeling, and process optimization. Computer Science: Computer science is essential for designing and implementing manufacturing software, automation systems, and data analytics. Environmental Science: Environmental science is important for ensuring that manufacturing processes are environmentally sustainable and comply with regulations.  Principles of Manufacturing Three Kinds of Flows Supporting Effective Manufacturing: (1) Flow of materials - conversion of raw materials into products; Throughout this process, raw materials are procured from outside suppliers, processed and assembled at workshops and stored in warehouses as inventories, and finished products are delivered to consumers as commodities throughout the distribution stages. (2) Flow of information - planning and control of production; Planning is a selection of the future course of action, and Controlling is the measurement and correction of the performance of the activities to make sure that the management objectives and plans are being accomplished. (3) Flow of cost - economical production; Through the production processes raw materials are converted into finished products with value added, the added-value process is called the 'flow of cost. Principles of Manufacturing Flow of Materials Flow of Information Flow of Cost Manufacturing Master Plan