Manufacturing Management DM 202 Semester 2 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 decisions  Gr...

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 Sub- assemblies Finished goodsS u pp lie rs C u sto m e rs 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 Capabilities Competencies Core CompetenciesWhat we can do What we are really What is difficult good at doing to replicate 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  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 © University of Strathclyde 2014 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? Wood Pulp80GSM Sheet 100GSM Sheet 150GSM Sheet80GSM / A4 80GSM / A3 100GSM / A4 100GSM / A380GSM / A4 / 1 Ream 80GSM / A4 / 1 Box 80GSM / A4 / 1 Pallet 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? Range of Manufacturing Architectures Increasing Variety of ProductLow variety High variety Continuous Production Batch Production ‘ Jobbing’ Production Project Build Product Focus Process Focus Skills Focus Production CellsProduction Lines Function basedP rod uct V a riety P rod u ction F o rm at O pe rations F o cu s La yo ut 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  Product may be moved afterwards (oil rig) or not (power station)  Suits low volume (unique) products  Often large or fragile  May contain high volume components The ProductMateria l Labou rEquipmen tComponent s ‘ 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