MANUFACTURING

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MANUFACTURING
A System Within a System
Max Newbold May 2004
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TRAFFIC CONDITIONS
ETHNIC GROUPS
GOVERNMENT
MARKET DEMAND
PRODUCT DESIGN
POLUTION
SOCIAL EXPECTATIONS
ALL THING THAT AFFECT SOCIETY AFFECT MANUFACTURING
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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
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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
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UNDERSTANDING THE PROCESS
From a manufacturing perspective two factors that
have an impact on the system efficiency are
MARKET DEMAND PRODUCT STRUCTURE
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THE MARKETS INFLUENCE ON MANUFACTURING
BEHAVIOUR Predictability Variability Volume of
Demand
UNCERTAINTY
COMPETITION Delivery Speed Delivery
Reliability Cost Quality
TO STAY IN BUSINESS
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THE PRODUCTS INFLUENCE ON MANUFACTURING
STRUCTURE BOM Width BOM Depth BOM Shape Total
Number of Parts STABILITY Number of Changes
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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
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BASIC CONFLICT
REDUCING COSTS Increase labour
utilisation Increase machine utilisation Increas
e batch size
INCREASE SEVICE Decrease labour
utilisation Decrease machine utilisation
REDUCE THE NEED FOR LABOUR AND MACHINES
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WHAT IS WORK
Ineffective Time Management
Design Defect
Wrong Methods
Ineffective Time Worker
Basic Work Content
Total Work Content
Total Operational Time
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UNCERTAINTY
THE MARKET Variability Predictability Interact
to create uncertainty in manufacturing
MANUFACTURING Quality Machine
Reliability Labour Loading Batch Sizes
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IMPORTANCE OF UNCERTAINTY
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
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BUFFERING TO PROTECT SYSTEM
BUFFERING WITH STOCK WIP Finished
Goods BUFFERING WITH TIME Increasing 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
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RESPONSIVE MANUFACTURE
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.
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RESPONSIVE MANUFACTURE

• FACTORS THAT AFFECT RESPONSIVENESS
• Batch Sizing
• Machine Process flexibility
• Labour Flexibility Ability to move people
• Part commonality
• Plant structure
• Capacity Utilisation

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RESPONSIVE OR BUFFER
THE LEVEL OF UNCERTAINTY WILL INFLUENCE THE CHOICE
THE
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PLANT DEFINITION
The plant can be defined by its 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
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MPC SYSTEM DEFINITION
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.
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EACH SOLUTION CREATES AN ADDITIONAL PROBLEM
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