Manufacturing Processes

Product Focus
D

Nucor Steel Plant

Scrap steel

Continuous caster

B
Ladle of molten steel

Electric furnace

Continuous cast steel sheared into 24-ton slabs Hot tunnel furnace - 300 ft

Hot mill for finishing, cooling, and coiling

H I

Process Flow Diagram

Frame tube bending
TESTING 28 tests

Frame-building work cells

Frame machining THE ASSEMBLY LINE

Incoming parts

Hot-paint frame painting Engines and transmissions

From Milwaukee on a JIT arrival schedule

Air cleaners Fluids and mufflers

Oil tank work cell Shocks and forks

Fuel tank work cell

Wheel work cell Roller testing

Handlebars
Fender work cell Crating

Figure 7.3

How production Processes are Organized

Process selection : Refers to the strategic decision of selecting which kind of process to use to produce a product or a service 5 basic process structures ( Based on pattern of work flow) Project layout : The product because of its sheer bulk or weight remains fixed in a location . Equipment is moved to the location

 Work center( Process focused) : Suited for low volume production of a high variety of nonstandard products also referred to as Departments Manufacturing cell : An area where simple items that are similar in processing requirements are produced. Assembly line (product focused) : Designed to make discrete parts . Parts are moved through a set of specially designed work stations at a controlled rate Continuous Process : An often automated Process that converts raw material into a finished product in one continuous process

Product Process Matrix

Shows the relationship between different production units and how they are used depending product volume and degree of standardization Page No 245 X axis Volume Y axis Degree of standardization High Standardization --- Low Variety--- More efficient but less flexible Low Standardization --- High Variety --- Less efficient but more flexible

Alternate Process structure classification

Job Shop : Production of small batches of a large number of different products ,most of which require a different set of sequence or processing steps High flexibility / Less efficient ( Process focused ) Batch : Essentially a some what standardized job shop generally employed when a business has a relatively stable line of products , each of which is produced in periodic batches (Process/ Product focused) Assembly line : Production of discrete parts moving from one work station to another at a controlled rate following the sequence need to build the products ( Product focused ) Continuous Flow : Conversion or further processing undifferentiated materials such as cement , steel oil soft drinks . Production follows a predetermined sequence of steps but the flow is continuous rather than discrete

The Product - Process Matrix

Low Volume One of a Kind I. Job Shop II. Batch III. Assembly Line IV. Continuous Flow Few High Multiple Major Volume, Products, Products, High Low Higher StandardVolume Volume ization
Flexibility (High) Unit Cost (High)

Commercial Printer French Restaurant Heavy Equipment Coffee Shop Automobile Assembly Burger King Sugar Refinery

Flexibility (Low) Unit Cost (Low)

9

Source: Modified from Robert Hayes and Steven Wheelwright, Restoring Our Competitive Edge: Competing through Manufacturing (New York: John Wiley & Sons, 1984). p. 209.

Manufacturing Process flow design

Assembly Drawing Assembly Chart Operation route chart Material flow Chart Process flow chart

Break Even analysis

The choice of which specific equipment to use can based on analysis of cost trade offs Break even analysis :A standard approach to choosing among alternative processes General Purpose Or Special purpose based on anticipated demand A BE chart visually presents alternative profits and losses due to the number of units sold

Crossover ( Break-Even) Charts

Variable costs

Variable costs
Fixed costs
Low volume, high variety Process A

Variable costs Fixed costs

Repetitive Process B

$
Fixed costs
High volume, low variety Process C

400,000 300,000 200,000

Fixed cost Process A Fixed cost Process B Fixed cost Process C

Figure 7.6

(2,857)

V1

V2

(6,666)

Volume

Example BE analysis
Suppose a manufacturer has identified the following options for obtaining a machined part.: It can buy the part at $ 200per unit ( including materials ); or It can make the part on a semi automatic lathe at $75 per unit( including material) It can make the part on a machining center at 15$ per unit ( including material) There is negligible fixed cost if the item is purchased; a semi automatic lathe costs $ 80,000: a machining center cost $ 200,000

Fixed Cost Buy Semiautomatic Lathe Machining center 0 80,000 200,000

Variable cost per unit 200 75 15

80,000+ 75 X D = 0 + 200 X D 80,000 + 75 X D = 200,000+ 15 X D 1,20,000=60D D= 2000