supply chain- BA Level 2400 words

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Ch5_Making_Products_L6.ppt

Alex Hill and Terry Hill

Learning objectives

  • Recognise the TECHNICAL and BUSINESS requirements to be met when making products
  • Define the different TYPES of manufacturing process
  • Identify the APPROPRIATE manufacturing process to use for different production volumes
  • Identify the CATEGORIES of product and TYPES of manufacturing process
  • Understand the business IMPLICATIONS of investing in alternative types of manufacturing process
  • Explain why HYBRID processes may be introduced

Lecture outline

  • INTRODUCTION
  • Factors affecting MANUFACTURING PROCESS design
  • DESIGNING the manufacturing process
  • HYBRID processes
  • Critical REFLECTIONS
  • SUMMARY

© Alex Hill and Terry Hill

Factors affecting manufacturing process design

TECHNICAL

REQUIREMENTS

STEPS required to

Turn INPUTS

Into OUTPUTS

VOLUMES

MARKET

ORDER-WINNERS

QUALIFIERS

BUSINESS

REQUIREMENTS

> KEY IDEA
Manufacturing processes need to meet both TECHNICAL and BUSINESS requirements

Factors affecting manufacturing process design

Categories of product

Factors affecting manufacturing process design

Categories of product

Factors affecting manufacturing process design

Types of manufacturing process

Developing a strategy

Understanding customer requirements

  • Made ON-SITE
  • Resources BOUGHT TO SITE
  • SPECIAL, non-repeat
  • ONE PERSON or SMALL GROUP
  • STANDARD, repeat low to high volume
  • Has to be RESET for each batch of products made
  • MASS, repeat high volume
  • DOES NOT have to be reset for different products
  • MASS, repeat very high volume
  • Process runs CONTINUOUSLY and never stops
Process type Product Process
Project
Jobbing
Batch
Line
Continuous processing

Designing the manufacturing process

Process choices

Designing the manufacturing process

Process choices

Designing the manufacturing process

Process choices

> KEY IDEA
Use the words FLEXIBLE and AGILE with care as they have many DIFFERENT MEANINGS and, therefore, can be misleading

Designing the manufacturing process

Implications of process design

Hybrid processes

Cells

Hybrid processes

Cells

Hybrid processes

Cells

Hybrid processes

Cells

Hybrid processes

Cells

ADVANTAGES

DISADVANTAGES

Less WAITING time

Lower INVENTORY

Easier to SCHEDULE

Less FLEXIBLE

Lower equipment UTILISATION

> KEY IDEA
CELLS are a commonly used HYBRID PROCESS

Making products

Product category and process type

  • Made on-site
  • Special
  • Mass
  • Standard
  • Project
  • Resources moved to site
  • Line
  • High volume
  • Don’t reset
  • Special
  • One-off
  • Jobbing
  • Small group

Making products

Product category and process type

Question Bird Car Restaurant
PRODUCT category
PROCESS type

  • MANUFACTURING PROCESSES must be:
  • ALIGNED to its market ORDER-WINNERS and QUALIFIERS
  • REFLECT its internal BUSINESS requirements
  • Each PROCESS has a different set of TRADE-OFFS
  • Although DEMAND CHANGES over time, most businesses will NOT RE-INVEST in a different process
  • Choosing the RIGHT PROCESS for the life of a product will have a significant impact on its SALES REVENUE and PROFIT

Critical reflections

Summary

  • Manufacturing processes must SUPPORT
  • Technical and business requirements
  • TECHNICAL requirements
  • The product specification
  • BUSINESS requirements
  • Volumes and market order-winners and qualifiers
  • Each process type has a different set of TRADE-OFFS

Pull out points above through discussion…

Make MONEY

Produce GOOD FOOD

© Alex Hill and Terry Hill

Case studies:

  • Great Nuclear Fizzle
  • Lloyds Bank
  • McDonald’s
  • Prêt a Manger

Film clips:

  • Breakfast at Tiffany’s
  • Five Easy Pieces