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MANUFACTURING PROCESSES,Chapter Seven,Copyright 2014 by The McGraw-Hill Companies, Inc. All rights reserved.,McGraw-Hill/Irwin,Learning Objectives,LO71: Understand what a manufacturing process is. LO72: Explain how manufacturing processes are organized. LO73: Analyze simple manufacturing processes.,7-2,Production Processes,Production processes are used to make any manufactured item. Step 1 Source the parts needed Step 2 Make the product Step 3 Deliver the product,7-3,Production Process Terms,Lead time the time needed to respond to a customer order Customer order decoupling point where inventory is positioned to allow entities in the supply chain to operate independently Lean manufacturing a means of achieving high levels of customer service with minimal inventory investment,7-4,Types of Firms,7-5,Make-to-Stock,Examples of products include the following: Televisions Clothing Packaged food products Essential issue in satisfying customers is to balance the level of inventory against the level of customer service. Easy with unlimited inventory, but inventory costs money Trade-off between the costs of inventory and level of customer service must be made. Use lean manufacturing to achieve higher service levels for a given inventory investment.,7-6,Assemble-to-Order,A primary task is to define a customers order in terms of alternative components because these are carried in inventory. An example is the way Dell Computer makes their desktop computers. One capability required is a design that enables as much flexibility as possible in combining components. There are significant advantages from moving the customer order decoupling point from finished goods to components.,7-7,Make-to-Order/Engineer-to-Order,Boeings process for making commercial aircraft is an example. Customer order decoupling point could be in either raw materials at the manufacturing site or the supplier inventory. Depending on how similar the products are, it might not even be possible to preorder parts.,7-8,How Production Processes Are Organized,Project: the product remains in a fixed location Manufacturing equipment is moved to the product. Workcenter (job shop): similar equipment or functions are grouped together Manufacturing cell: a dedicated area where products that are similar in processing requirements are produced Assembly line: work processes are arranged according to the progressive steps by which the product is made Continuous process: assembly line only the flow is continuous such as with liquids,7-9,ProductProcess Matrix: Framework Describing Layout Strategies,7-10,Production System Design,7-11,Production System Design,7-12,Break-Even Analysis,Defined as standard approach to choosing among alternative processes or equipment. Model seeks to determine the point in units produced where a company will start making profit on the process. Model seeks to determine the point in units produced where total revenue and total cost are equal.,7-13,Example 7.1: Break-Even Analysis,Buy for $200 Make on lathe for $75 Make on machining center for $15 Buy has no fixed costs Lathe has $80,000 fixed costs Machining center has $200,000 fixed costs,7-14,Example 7.1: Total Cost for Each Option,Purchase Cost = $200 x Demand Produce Using Lathe Cost = $80,000 + $75 x Demand Produce Using Machining Center Cost = $200,000 + $15 x Demand,7-15,Example 7.1: Costs Shown Graphically,7-16,Example 7.1:Finding Points A and B,7-17,Manufacturing Process Flow Design,Manufacturing process flow design a method to evaluate the specific processes that material follow as they move through the plant Focus should be on the identification of activities that can be minimized or eliminated Movement and storage The fewer the moves, delays, and storage, the better the flow,7-18,The Charts,Assembly drawing: an exploded view of the product showing its component parts Assembly chart: defines how parts go together, their order of assembly, and overall flow pattern Operation and route sheet: specifies operations and process routing Process flowchart: denotes what happens to the product as it progresses through the production facility,7-19,Sample Assembly Drawing,7-20,Sample Assembly Chart,7-21,Sample Operation and Route Sheet,7-22,Sample Flowchart,7-23,Example 7.2: Manufacturing Process Analysis,15 workers, eight-hour shift Incentive pay of 30 per good part Can hire 15 more workers for second shift if needed All but molding from outside vender,7-24,Example 7.2: Molding,11 Machines One usually down One operator per machine 25 parts per hour Paid 20 per part Overtime is 30 per part Employment is flexible Currently 6 employees 4 more available,7-25,Example 7.2: Remaining Costs,Raw materials are 10 per part Electricity is 2 per part Purchased parts cost 30 per component Other weekly expenses Rent is $100 Other employees receive $1,000 Accounting depreciation is $50,7-26,Example 7.2: Questions to Answer,Determine the capacity of the process. Are the capacities balanced? If the molding process were to use 10 machines instead of 6, what would be the capacity of the entire process? If the company went to a second shift, what would be the new capacity? Determine the cost per unit output when the capacity is 6,000 per week or 10,000 per week.,7-27,Example 7.2: Capacity of Entire Process,Molding Capacity 6 x 25 x 8 x 5 = 6,000 Assembly Capacity 150 x 8 x 5 = 6,000 The capacities are balanced.,7-28,Example 7.2: Increasing Molding to 10 Machines,Molding Capacity 10 x 25 x 8 x 5 = 10,000 Assembly capacity has not changed from 6,000. The
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