Max Newbold: May 2004

MANUFACTURING SYSTEM

GOVERNMENTTRAFFIC

CONDITIONS

MARKET DEMAND

POLUTIONSOCIAL EXPECTATIONS

PRODUCT DESIGN

ETHNIC GROUPS

ALL THING THAT AFFECT SOCIETY AFFECT MANUFACTURING

WITHIN THE MANUFACTURING SYSTEM

Plant and Equipment

Operators and Assembly Staff

QA and QC

Maintenance

Planning (MPC System)

Manufacturing Engineering

OUTSIDE THE MANUFACTURING SYSTEM

The Market

The Design Process

Other Social Environmental Factors

PURPOSE OF THE MANUFACTURING SYSTEM

To support the demand made on the business unit by the market

BY MEETING THE COMPETATIVE FACTORS THE MARKET DEMANDS

Quality of Manufacture

Delivery Reliability

Delivery Speed

Cost of Manufacture

From a manufacturing perspective two factors that have an impact on the

system efficiency are:

MARKET DEMAND

PRODUCT STRUCTURE

THE MARKET’S INFLUENCE ON MANUFACTURING

BEHAVIOUR

Predictability

Variability

Volume of Demand

COMPETITION

Delivery Speed

Delivery Reliability

Cost

Quality

UNCERTAINTY

TO STAY IN BUSINESS

THE PRODUCT’S INFLUENCE ON MANUFACTURING

STRUCTURE

BOM Width

BOM Depth

BOM Shape

Total Number of Parts

STABILITY

Number of Changes

THE MARKET

THE PRODUCT

SETS THE DEMAND ON THE MANUFACTURING

SYSTEM

COMPETITION BASED ON COST OR SEVICE?

Delivery Speed Vs Price (Porter 1980)

Within a Market Segment Price is a Competitive Issue

(Schoeder et al 1995)

COST IS A MAJOR MANUFACTURING CONCERN

REDUCING COSTS

Increase labour utilisation

Increase machine utilisation

Increase batch size

INCREASE SEVICE

Decrease labour utilisation

Decrease machine utilisation

Basic Work

Content

Design

Defect

Wrong

Methods

Ineffective Time

Management

Ineffective Time

Worker

A B C D

Total Work Content

Total Operational Time

THE MARKET

Variability

Predictability

Interact to create uncertainty in manufacturing

MANUFACTURING

Quality

Machine Reliability

Labour Loading

Batch Sizes

Materials do not arrive on time: Market and Internal

Lost machine and labour time

Creation of a lumpy flow

Resources mis-directed: Market

Making product that may not be needed

RESULT:

Lower Service Level: Reliability and Speed of Delivery

Higher Manufacturing Costs

BUFFERING WITH STOCKWIP

Finished Goods

BUFFERING WITH TIMEIncreasing Lead-time

REDUCE PART COMPLEXITY

As uncertainty increases then buffering can create increased uncertainty.

Part Complexity needs managing if it is not to increase uncertainty

MANUFACTURING TO RESPOND TO UNCERTAINTY

Organisations that manufacture to order (MTO) or where the product mix is large with respect to volume buffering with stock is either impossible or uneconomically .

Moving to a responsive manufacturing system also has economic benefits from lower finished and WIP stocks.

FACTORS THAT AFFECT RESPONSIVENESS

1. Batch Sizing

2. Machine & Process flexibility

3. Labour Flexibility: Ability to move people

4. Part commonality

5. Plant structure

6. Capacity Utilisation

Variability

Low

High

Predictability LowHigh

Uncertain environmentSystem must be responsive

to conditions

Certainty ExistsChoice between a

responsive system or buffering

Stable Environment Stable Environment

LEVEL OF UNCERTAINTY IN SYSTEM

Developed from Newman & Sriharam (1995) Integrated Manufacturing Systems vol.6 no.4 pages36 - 42

THE

THE LEVEL OF UNCERTAINTY WILL INFLUENCE THE CHOICE

Market Definition

1Behaviour2Competitive Factors

Product Definition

1Complexity2Stability

Determines Demand on the Manufacturing

System

Plant Definition

1Flow Type2Layout Type

MPC System Definition

1Planning2Scheduling3Control

Decision Variables: Batch Sizing; Labour Flexibility; Maintenance Policy, Quality and Rework Methods

Inter-Relationship Model

The plant can be defined by it’s structure and flow

FLOW: Continuous: The flow is an unbroken line of discrete or non-discrete product

Intermittent: Product is accumulated processed in defined batches or lots.

STRUCTURE: Flow Lines: The machines or work stations are set out according to a pre-determined path.

Functional: The machines or work centres are grouped according to the activity performed

Up to seven different levels of the MPC can be defined from the texts. However from a practical point three levels are required.

PLANNING: This consists of the MPS (Master Production Schedule), which plans the capacity requirement, raw materials, stock levels and timing of supplies and sub-assemblies.

SCHEDULING / SEQUENCING: This is a detailed plan of the time of the release of material to the plant or specific work centre

CONTROL: Ensuring the stated schedule and stock targets are being met.

THE SOLUTION CAN ONLY BE FOUND BY:

ANALYSIS OF:THE MARKET

THE PRODUCT

THIS DETERMINES THE MPC SYSTEM AND PLANT REQUIREMENTS

DECEASE LABOUR AND MACHINE REQUIREMENTS TO DECREASE COST AND IMPROVE SERVICE LEVELS