SCM Mod 3 Study Guide
1. Key issues, Manufacturing Layout
a. Manufacturing Layout Considerations
i. Financial Responsibility: Meet demand, maximize sales and profits
ii. Materials, People, Space/Area: Convenience, Utilization, Efficiency
iii. Information Flow and Communication
iv. Work Safety and Security
2. Established channels of distribution
a. Represent the chain of organizations that help bring a product into the hands of the
end user
3. Established supplier base
a. Is the collection of companies from which an organization presently purchases
products and/or services
4. Hypercompetitive markets
a. This can refer to an industry that is heavily concentrated in a particular region, where
the companies compete fiercely
5. New Product Development Considerations
a. Designers
b. Engineers
c. Supply Chain – Parts, Labor, Assembly line equipment
d. Finance – Acquiring capital, Return on investment
e. Marketing – Consumer base, Competition
6. Outsourcing Considerations
a. Location
i. Cost – Parts, Labor, Materials, Transportation, Storage, taxes/Tariffs
ii. Labor Issues – Quality of the Workforce, Labor laws, Unions, Ethics, Wages,
Management Style, Cultural, Quality of Life
iii. Location of Partners and Customers
iv. Established supplier base and Established channels of distributions
v. Infrastructure, Temperature, Geography
vi. Hypercompetitive markets
vii. Relationship Management, Relationship Opportunities
b. Infrastructure
c. Process design and management
d. Materials
e. Services
f. Human elements
g. Finance and Accounting
7. Relationship…Marketing, Design, SCM
a. Marketing identifies a target market, while designers and engineers work to develop
products that satisfy the needs of the target market
b. Supply chains must then buy parts, manufacture hundreds or thousands of those
end items and then deliver them into the hands of the customer
8. Strategic, Design, Operating Decisions
a. Strategic Decisions are typically decisions made at the highest levels of the
organization. They provide direction for the company by identifying target markets,
business models and potential product or service categories in which the company
would like to compete. These decisions typically provide the organization and its
primary functional areas long-range goals
b. Design Decisions are decisions that seek to satisfy a target market in a particular
product or service category. They provide a more specific roadmap to satisfying
strategic goals
c. Operating Decisions are ones that impact the organization in the short-term. They
are typically operating decisions related to the daily operations that are daily
operations that are performed in a company on a routine basis
9. Line Flow
a. Strategy
i. Demand: Standard Items, High Volumes, Static Industry
ii. Layout: Product Focused/Line Flow Layouts
iii. Manufacturing system: Assembly Lines, Continuous Flow Systems
iv. Make-to-stock systems
b. Assembly Lines – Can be interrupted
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i. Honda Auto Assembly Plant, Office Furniture Manufacturer
ii. Hanes T-Shirt Manufacturer, Tombstone’s Frozen Pizza
iii. These line flow systems can typically be stopped at any time without
compromising the inventory flowing through the system
c. Cam take on Numerous Shapes – S, U, L Shape
d. Continuous Flow System – Must be run to completion
i. Oil Refinery, Hershey’s Kisses, Oreo Cookies
ii. These line flow systems must run to completion once the process has been
started
e. Line Balancing
i. Goal
1. Meet demand (quantity and speed)
2. Consider the future (growth, fatigue…)
3. Be efficient (Limited resources)
ii. Consider the input of Designers, Engineers, Manufacturing, and Marketing
1. Engineering and Design: List of the Basic Tasks in the process
a. Break down the manufacturing process to it’s most basic steps
2. Manufacturing: Precedence Relationships
a. Example: When doing the laundry, always wash the clothes
before drying the clothes
3. Marketing: Desired Output Rate
a. What is the expected demand? This year? Next year? At
Christmas?
iii. Basics
1. Cycle Time (c)
a. Maximum Time allowed for work on one unit at each station
b. Time it takes for one unit to come off the assembly line
c. IF CT = 30 seconds THEN ONE unit comes off the production
line every 30 seconds. You could make 120 items/hour
2. Total Task Time (t) or Sum of task times
a. Add ALL the work element times together
b. Total amount of work time that went into one end time
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c. It does not mean that it would take “t” minutes for the item to
be completed, though
d. Do not confuse Cycle Time with Sum of Task Times!!!
3. Theoretical Number of Workstations ™
4. Actual Number of Workstations (n)
a. Theoretical – Smallest number of workstations according to
formula
b. Actual? Sometimes formula doesn’t take into account all of
the parameters, so the actual number of WS may be higher
than what the formula indicates
10. Flex Flow
a. Strategy
i. Demand: Customized Items, Low Volumes, Dynamic Industry
ii. Layout: Process Focused/Flexible Flow Layouts
iii. Manufacturing system: Job Shops
iv. Make-to-order systems
b. Work Center Location
i. Manager Goals
1. Material Flows
2. Movement
3. Load Moved
4. Inventories
11. Hybrid Strategy
a. Strategy
i. Demand: Moderation (Customization, Changes, Industry)
ii. Layout: Hybrid Layouts
iii. Manufacturing system: Group Technology (Cellular) Layout
iv. Possibly and Assemble-to-order system
b. Layout
i. Processor Selection
ii. Hard Drive Selection
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iii. Monitor Selection
iv. Installation of Drives
v. Package and Deliver
12. Fixed Position Layout
a. This layout type is used for vert large and hard to move items – airplanes, cruise
ships, office buildings. In this case the workers and machines come to the worksite
and move around the item as needed
13. Assembly line challenges
14. Bottlenecks
a. A section of a supply chain that limits the overall output of the assembly line
15. Tasks/Work elements
a. The smallest units of work that must be accomplished to compete an end item on
the assembly line
16. Total Task time
a. The sum of all the tasks on the precedence diagram
17. Precedence diagram
a. An illustration that shows the relationships between all the work elements in an
assembly line process
b. Cycle Time = c = Operating Time/Demand = OT/D
i. = 8 hrs/400 units = 0.02 hr/unit
ii. = [8 hrs (3600 sec/hr)] / 400 units = 72 sec/unit
c. Sum of Task Times = t = Sum of Production Times of all Elements
i. 50+30+20+45+20+25+10+35 = 235 seconds
18. Workstation
a. Controlling cost and movement is key to the long-term efficiency of an assembly line
b. The collection of one or more work elements
19. Cycle Time
a. Assembly lines work to fulfill a given demand during a certain period of work time
(operating time)
b. Cycle time is the pace at which products must move through the assembly line in
order for the assembly line to keep pace with demand
c. Cycle time = Operating time / Demand
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d. c = OT / D
20. Theoretical Min # Workstations
a. TM = t/c
i. Idle Time = [n(c)] – t = [4(72)] – 235 = 53 sec
ii. Efficiency = (t) / [n(c)] = (235)/4(72) = 0.816
b. Small decimal – may be possible
c. Large decimal – Tight fit
21. Actual # of WS
22. How to Balance an Assembly Line
a. Line Balancing – the goals of assembly line balancing is to equitably group
precedence diagram tasks into the fewest number of workstations
b. What’s needed before you begin
i. A list of all assembly line tasks and the time each takes to complete
ii. A precedence diagram illustrating the precedence relationships between all
assembly line tasks
iii. Product demand for a given period of time
23. Line Balancing Rules
a. 1) identify workstation candidates – which elements are eligible to go into a
workstation?
b. 2) Choose one of the candidates for placement into the workstation – some
managers prefer to always choose the largest available, others the smallest available,
and some managers just choose randomly
c. 3) Test viability of candidate chosen
d. Identify workstation candidates
i. NO Predecessors OR…
ii. All Predecessors must be in Workstations
iii. Once a Candidate…It stays a candidate until chosen
e. Choose one of the candidates for placement
i. Biggest, Smallest Candidate, Number of Followers?
ii. Freestyle?
f. Does it fit in the WorkStation?
i. Yes – Place in WS, Go back to the 1st step
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ii. No – Pick another Candidate or move to next Workstation
g. Remember
i. Cycle Time Rule: Is each workstation at or below the prescribed c?
ii. Precedence Rule: Are you washing the laundry before drying it?
24. CT Rule and Precedence Rules
a. Cycle Time Rule: In order for each workstation to be allowable, the workstation must
have a total task time equal to or less the cycle time (c)
b. Precedence Rule: All tasks in the workstation must not violate precedence
relationships illustrated in the precedence diagram
25. Effective cycle time
a. efficiency = t nc
26. Identifying balanced vs unbalanced lines
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