SISTEM MANUFAKTUR

INTRODUCTION
• Intro to Manufacturing System
• Types of Production System
• Manufacturing Strategy
• Productivity

Kuliah ke-1:
Sabtu, 7 Feb 2009S
Kamis, 12 Feb 2009D
I. Introduction to
Manufacturing System-Approaches
z Manufacturing:
z Made by hand: manus (hand), factus (make)

z Single part (nail, bolt, tire, …)

z Assembled system (Car: 15,000; Boeing 747-400: 6 M)

z ~$5 Trillion business

z Definition: The process of converting raw materials into

products

Product Materials
Design Selection Manufacturing Marketing

(Value added)
 Manufactured Products

• Discrete Products: individual parts, such as nails,

gears, bearing balls, cans, engine blocks, …
z Low production: 1 to 100/yr

z Medium production: 100 to 10,000/yr

z High/mass production: over 10,000 units/yr

• Continuous Products: items produced by

continuous processes, such as sheet metal coil
(almost), oil refinery, …
Manufacturing – A System View

Market
(Design)
Market

Specification

Manufacturing processes
Concept Design

Manufacturing system
Detail Design
(Manufacturing)
Manufacturing a Product

Production systems include

– People
– Money
– Equipment
– Materials
– Supplies
– Markets
– Management
– Manufacturing System
– All aspects of commerce
 Manufacturing

CIRP (International Conference on Production

Engineering), 1983:

A Series of interrelated activities and

operations involving the design, materials
selection, planning, manufacturing production,
quality assurance, management and marketing
of products of the manufacturing industries.
 Manufacturing Systems in the Production System

©2008 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. This material is protected under all copyright laws as they currently exist.
No portion of this material may be reproduced, in any form or by any means, without permission in writing from the publisher. For the exclusive use of adopters of the book
Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover
Manufacturing System

The functions and systems of

the production system, which
includes (and services) the
manufacturing system. The
functional departments are
connected by formal and
informal information systems
designed to service the
manufacturing system that
produces the goods.
Manufacturing System
z Collection of operations and processes
to produce a desired product or
component
z Design or arrangement of the
manufacturing processes
New Manufacturing Systems

Toyota Production System (TPS)

z Lean manufacturing system

z 100% good units flow without interruption

z Integrated quality control

z Responsibility for quality is given to manufacturing

z Constant quality improvement

II. Types Production Systems

FLOW LINE

CELLS

V
O
JOB
L
SHOP
U BATCH
M PRODUCTION
E

VARIETY
 III. Manufacturing Strategy-
Approaches
Approaches:
• Time Based Strategies
• Volume/Variety Relationship Trade-offs
• Quality & Time Strategies
• Dealing with Trade-offs: Cost vs Quality,
and Flexibility vs Delivery.
 Examples of Strategies

• Low cost
• Scale-based strategies
• Specialization
• Flexible operations
• High quality
• Service
 Manufacturing Strategy

Strategy menentukan delivery lead time Strategy

Lead time
1. Engineer-to-Order
Design Purchasing Manufacture Assemble Ship (ETO)

Lead time

Inventory Manufacture Assemble Ship 2. Make-to-Order

(MTO)
Lead time

Manufacture Inventory Assemble Ship 3. Assemble-to-Order

(ATO)
Lead time
4. Make-to-Stock
Manufacture Assemble Inventory Ship (MTS)
 Volume/Variety Relationships

Engineer-to-Order Mass
High Customization
Product Variety

Make-to-Order

Assemble-to-Order

Make-to-Stock

Low High
Product Volume
 Quality and Time Strategies

• Quality-based strategies
- Strategy that focuses
on quality in all phases
of an organization
- Quality at the source
• Time-based strategies
Strategy that focuses on
reduction of time needed
to accomplish tasks
Time-based Strategies

JAN FEB MAR APR MAY JUN

Planning

Designing

Processing

Changeover
On time!

Delivery
Time-based strategies focus on reducing the time required to
accomplish various activities, such as:

• Planning time: The time needed to react to a competitive threat, to

develop strategies and select tactics, to approve proposed changes to
facilities, to adopt technologies, and so on.
• Product design time: The time needed to develop and market new or
redesigned products
• Processing time: The time needed to produce goods. This can
involves scheduling, repairing equipment, methods used, inventories,
quality, training, and the like.
• Changeover time: The time needed to change from producing tone
type of product to another. This may involve new equipment settings
and attachments, different methods, equipment, schedules, or
materials
• Delivery time: The time needed ti fill orders
• Response time for complaints: These might be customer complaints
about quality, timing of deliveries, and incorrect shipments. This
might also be complaints fromemployees about working conditions
(e.g. safety, lighting, heat or cold, etc.), equipment problems, or
quality problems.
 Dealing with Trade-offs

For
Forexample,
example,ififwe
wereduce
reducecosts
costsby
byreducing
reducingproduct
product
quality
qualityinspections,
inspections,we
wemight
mightreduce
reduceproduct
productquality.
quality.

For
Forexample,
example,ififwe
we Cost
improve
improvecustomer
customerservice
service
problem
problemsolving
solvingby bycross-
cross- Flexibility Delivery
training
trainingpersonnel
personnelto todeal
deal
with
withaawider-range
wider-rangeof of
problems, Quality
problems,they
theymay
may
become
becomeless
lessefficient
efficientatat
dealing
dealingwith
withcommonly
commonly
occurring
occurringproblems.
problems.
 The Need for Trade-offs

• Decisions must emphasis priorities that support business strategy

• Decisions often required trade offs
• Decisions must focus on order qualifiers and order winners
z Which priorities are “Order Qualifiers”?
e.g. Must have excellent quality since everyone
expects it

z Which priorities are “Order Winners”?

e.g. Dell competes on all four priorities
Southwest Airlines competes on cost
McDonald’s competes on consistency
FedEx competes on speed
Custom tailors compete on flexibility
Manufacturing Strategy – stop d

Terry Hill (“Manufacturing Strategy”):

• Order qualifiers
ƒ Characteristics that potential customers perceive as minimum
standards of acceptability to be considered for a product to be
considered for purchase
ƒ It may not sufficient to get a potential customer to purchase from
th organization.
ƒ Which priorities are “Order Qualifiers”?
e.g. Must have excellent quality since everyone
expects it
• Order winners
ƒ Characteristics of an organization’s goods or services that cause
it to be perceived as better than the competition.
ƒ Which priorities are “Order Winners”?
e.g. Dell competes on all four priorities
Southwest Airlines competes on cost
McDonald’s competes on consistency
FedEx competes on speed
Custom tailors compete on flexibility
Distinguishing between Order-Qualifiers
and Order-Winners
Manufacturing Strategy: Products & Process
Hayes and Wheelwright (1979):
 Agile manufacturing

• Agile manufacturing is a strategic approach to

operations for competitive advantage that
emphasizes the use of flexible operations to adapt
and prosper in an environment of change.
• Agility involves a blending of several distinct
competencies such a cost, quality, and reliability
along with flexibility (i.e, quick equipment
changeovers, scheduling, and innovation. Product
aspects incl. varying output volumes and product
mix).
• Agile manufacturing requires a careful planning to
achieve a system that includes people, flexible
equipment, and information technology.
 Performances related to Strategy

Operations Examples Specific Competitive

Decisions Strategy Used Advantage
Quality FLEXIBILITY
Sony’s constant innovation of new products Design
Product HP’s ability to follow the printer market Volume

Process Southwest Airlines No-frills service LOW COST

Location DELIVERY
Pizza Hut’s five-minute guarantee at lunchtime Speed
Layout Federal Express’s “absolutely, positively on time” Dependability Differentiation
(Better)
Response
Human Resource QUALITY (Faster)
Motorola’s automotive products ignition systems Conformance Cost
Supply Chain Motorola’s pagers Performance leadership
(Cheaper)
Inventory
IBM’s after-sale service on mainframe computers AFTER-SALE SERVICE
Scheduling
Fidelity Security’s broad line of mutual funds BROAD PRODUCT LINE
Maintenance
 Customer Expectations

Characteristics that provide value to the

customer:
– Price
– Quality
– Delivery
– Pre-and post-sale service
– Flexibility (product and volume)
 Productivity

• Productivity
z A measure of the effective use of resources,
usually expressed as the ratio of output to
input
• Productivity ratios are used for
z Planning workforce requirements
z Scheduling equipment
z Financial analysis
 Measures of Productivity

Partial Output Output Output Output

measures Labor Machine Capital Energy

Multifactor Output Output

measures Labor + Machine Labor + Capital + Energy

Total Goods or Services Produced

measure All inputs used to produce them
Examples of Partial Productivity Measures

Labor Units of output per labor hour

Units of output per shift
Productivity Value-added per labor hour

Machine Units of output per machine hour

machine hour
Productivity
Capital Units of output per dollar input
Dollar value of output per dollar input
Productivity
Energy Units of output per kilowatt-hour
Dollar value of output per kilowatt-hour
Productivity
 Productivity Growth

Productivity Growth =
Current Period Productivity – Previous Period Productivity
Previous Period Productivity
Example

7040 Units Produced

Sold for $1.10/unit

Cost of labor of $1,000 What is the

multifactor
Cost of materials: $520 productivity?

Cost of overhead: $2000 Ans. 2.20

 Example 3 Solution

MFP = Output
Labor + Materials + Overhead

$
MFP = (7040 units)*($1.10)
$1000 + $520 + $2000

MFP = 2.20
 Productivity Example - An automobile manufacturer has presented the
following data for the past three years in its annual report. As a potential
investor, you are interested in calculating yearly productivity and year to year
productivity gains as one of several factors in your investment analysis.

2003 2002 2001

2003 2002 2001
Partial Prod. Measure
Unit car 2,700,000 2,400,000 2,100,000
sales Unit Car Sales/Employee 24.1 21.2 18.3

Year-to-year Improvement 13.7% 15.8%

Employees 112,000 113,000 115,000

Multifactor Prod. Measures

$ Sales $49,000 $41,000 $38,000 Total Cost Productivity 1.26 1.24 1.19
(billions$)
Year-to-year Improvement 1.6% 4.2%
Cost of $39,000 $33,000 $32,000
Sales Which is the best measurement?
(billions)
Interpreting Productivity Measures

„ Productivity measures must be compared to something,

i.e. another year, a different company
„ Raw productivity calculations do not tell the complete
story unless there are no major structure differences.
„ In the prior automobile business example, it is obvious
that some major changes were taking place to yield 15.8%
and 13.7% year-to-year cars/employee productivity
improvements. What changes could improve car sales per
employee? Automation? Out sourcing? Major re-design?
Interpreting Productivity Measures

• Other productivity measure questions;

z Is this partial productivity measurement enough
to make an investment decision?
z Is the Total Cost Productivity measure a better
reflection of year to year productivity at 4.2% and
1.6%. Why?
z Should you also look at productivity measures for
the two major competitors for comparison?
• Productivity measure provides information on how
the firm is doing relative to what is critical to the
firm
Productivity and the Service Sector

Measuring service sector productivity is a

unique challenge
• Traditional measures focus on tangible
outcomes
• Service industries primarily produce
intangible outcomes
• Measuring intangibles is challenging
 HW #1

z Problems No. 2, 3, 4, 5, 6 (pp. 58-59)

z Productivity Gains at Whirpool (page 59)
z An American Tragedy: How a Good
Company Died (page 60)

Due: minggu depan