Sophia Miles - Operation management

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OPMT310Chapter7ManufacturingProcesses.pptx

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

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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

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Types of Firms

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Make-to-Stock

Assemble-to-Order

Make-to-Order

Engineer-to-Order

Serve customers from finished goods inventory

Combine a number of preassembled modules to meet a customer’s specifications

Make the customer’s product from raw materials, parts, and components

Work with the customer to design and then make the product

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.

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Assemble-to-Order

A primary task is to define a customer’s 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.

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Make-to-Order/Engineer-to-Order

Boeing’s 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.

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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

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Product–Process Matrix: Framework Describing Layout Strategies

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Production System Design

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Project Layout

The product remains in a fixed location.

Workcenter

A high degree of task ordering is common.

A project layout may be developed by arranging materials according to their assembly priority.

Most common approach to developing this type of layout is to arrange workcenters in a way that optimizes the movement of material.

Sometimes is referred to as a department and is focused on a particular type of operation.

Optimal placement often means placing workcenters with large interdepartmental traffic adjacent to each other.

Production System Design

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Manufacturing Cell

Formed by allocating dissimilar machines to cells that are designed to work on similar products (shape, processing, etc.)

Assembly Line and Continuous Layout

Designed for the special purpose of building a product by going through a series of progressive steps

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

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