Unit 1

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Unit 1 
Introduction to CIM Technology
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Rehg Kraebber Chapter 1The Manufacturing
Enterprise

• Introduction
• Manufacturing is a collection of interrelated
  activities that includes product design and
  documentation, material selection, planning,
  production, quality assurance, management, and
  marketing of goods
• The fundamental goal of manufacturing is to use
  these activities to convert raw materials into
  finished goods on a profitable basis

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Introduction

• The lessons learned in the 1970s and 1980s
  resulted in changes across U.S. industries
• As a result of improved manufacturing practices,
  U.S. industries reclaimed a leadership role by
  the mid-1990s and will continue that leadership
  role in the next millennium

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Three Stages of Manufacturing Retreat

• Emergence of small electronic consumer goods
  during the Vietnam War
• 2. Japanese practice of copying successful U.S.
  products
• 3. Offshore companies and rapid product
  development in the late 1980s

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Return to Power of the United States
Manufacturing Industry

• Was as a result of the following factors
• Economic factors
• Business factors
• Political factors

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Return to Power

• Economic factors
• Deregulations of energy and communications
  markets
• Low inflation as a result of downward pressures
  on wages, the price of raw materials, and the
  deregulated energy markets
• Falling interest rates during the last decade
• The collapse of Asian economy owing to the
  excesses of financial institutions in managing
  real-estate portfolios and corporate loans

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Return to Power

• Business factors
• Consolidation of competitive companies and
  companies with complementary products in most
  markets
• Restructuring of corporate America
• New and expanding technological leadership
• Partnership between the United States and
  offshore companies
• Adoption of CIM concepts in many industry groups
• Increased productivity as a result of
  consolidations, restructuring, technology, CIM,
  and better labor-management relations.

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Return to Power

• Political factors
• The consolidation of European Union
• Pressure to open closed markets

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Product Versus Process Goals

• The success of U.S. manufacturers following WW II
  was due largely to the technology and industrial
  base spawned by the war and the captive market
  associated with the postwar economy
• The main reason other countries beat the U.S in
  the 1970s/80s was because they spent time
  developing their war-torn manufacturing base
  after the war.
• To be successful, a manufacturer must meet two
  challenges external and internal challenges

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External Challenges Result from

• Niche market entrants, traditional competition,
  suppliers, partnerships and alliances, customers,
  global economy, cost of money, and the Internet

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Internal Challenges Result in

• A plan, process, or manufacturing strategy that
  forces congruence between the corporate
  objectives and marketing goals and production
  capability of a company

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Order-winning Criteria are

• Price
• Quality
• Delivery speed
• Innovation ability

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Product Life Cycle Curve
Sales Introduction Growth
Maturity Decline/Commodity
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Changing the Product Life Cycle

• Kaizen or improvement of current model
• Leaping or developing a new product similar to
  the initial product
• Innovation or using genuine new product invention
  to identify follow-up merchandise

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Order-winning Versus Order-Qualifying Criteria

• Market share is increased when the order-winning
  criteria are understood and executed better than
  the competition

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Meeting the Internal Challenges

• Analyze every product and agree on the
  order-qualifying and order-winning criteria for
  the product at the current stage in its life
• Project the order-winning criteria for the future
  stages in every products life
• Determine the fit between the required process
  capability and the existing capability in
  manufacturing
• Change/modify the marketing goals, or upgrade the
  manufacturing processes and infrastructure to
  force internal consistency

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World-class Order-winning Criteria

• Setup time or time required to get a machine
  ready for production
• Quality or of defective parts produced or of
  total sales
• Manufacturing space ratio or a measure of how
  efficiently manufacturing space is utilized
• Inventory Velocity/residence time

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World-class Order-winning Criteria

• Flexibility or a measure of the number of
  different parts that can be produced on the same
  machine
• Distance or total linear feet of a parts travel
  through the plant from raw material in receiving
  to finished products in shipping
• Uptime or of time a machine is producing to
  specifications compared to total time that
  production can be scheduled

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The Problem and a Solution

• Cost of doing nothing
• A solution

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CIM has Different Definitions for Different Users

• i. Shop communications
• ii. Recurring processes
• iii. Non-recurring processes
• iv. Engineering/manufacturing communication
• v. Other users
• vi. Improving communication through CIM

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Computer Integrated Manufacturing

• Refers to the technology, tool or method used to
  improve entirely the design and manufacturing
  process and increase productivity, to help people
  and machines to communicate. It includes CAD
  (Computer-Aided Design), CAM (Computer- Aided
  Manufacturing), CAPP (Computer-Aided Process
  Planning, CNC (Computer Numerical Control Machine
  tools), DNC (Direct Numerical Control Machine
  tools), FMS (Flexible Machining Systems), ASRS
  (Automated Storage and Retrieval Systems), AGV
  (Automated Guided Vehicles), use of robotics and
  automated conveyance, computerized scheduling and
  production control, and a business system
  integrated by a common database. (Houston Cole
  Library)

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Computer Integrated Manufacturing

• Is the process of automating various functions
  in a manufacturing company (business,
  engineering, and production) by integrating the
  work through computer networks and common
  databases. CIM is a critical element in the
  competitive strategy of global manufacturing
  firms because it lowers costs, improves delivery
  times and improves quality. (Amatrol)

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Computer-integrated Manufacturing Defined

• CIM is the integration of the total manufacturing
  enterprise through the use of integrated systems
  and data communications coupled with new
  managerial philosophies that improve
  organizational and personal efficiency

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SME New Manufacturing Enterprise Wheel
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What is CIM?

• C I M
• C Computer
• i. Enabling tool
• ii. Information flow
• iii. Information management

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What is CIM?

• I Integrated
• i. Integration vs. interfacing
• ii. Shared information
• iii. Shared functionality
• M Manufacturing
• i. Production control
• ii. Production scheduling
• iii. Process design
• iv. Product design
• v. Manufacturing enterprise

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Learning CIM Concepts

• Process segments such as these

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Going for the Globe

• The CIM process Step 1 (assessment of the
  enterprise in technology, human resources, and
  systems)
• The CIM process Step 2 (simplification or
  elimination of waste)
• The CIM process Step 3 (implementation with
  performance measures)
• Managing the resources

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Manufacturing Today

• Off-shoring and job loss issues
• Free market economy defined
• Production-oriented activities in a free market
  economy
• The centrality of manufacturing
• Recommendations

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Off-Shoring Job Loss Issues

• Some operations moved overseas
• Companies move to find market cheap resources
• Off-shoring affects large companies more
• Small companies are doing well
• New startups in the US need manufacturing

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Free Market Economy Defined

• An economic system in which the production and
  distribution of goods and services is not
  controlled by the government, but rather takes
  place through the mechanism of free markets which
  is guided by a free price system

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Production-Oriented Activities In A Free Market
Economy

• Sales and marketing
• Design
• Production engineering
• Manufacturing

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The Centrality of Manufacturing in a
Market-Oriented Economy

• Production System triad

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Recommendations

• Manufacturing personnel should be flexible and
  mobile
• There is a need to learn cultures that are
  different from ours
• Localitys manufacturing programs should be more
  functional relative to areas needs
• Employ an interdisciplinary approach to make
  programs more agile and adaptable

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Chapter 2 Manufacturing Systems

• Manufacturing system classifications
• Project
• Job shop
• Repetitive
• Line
• Continuous

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Production Strategy Classification

• Relative to customer lead time
• Relative to manufacturing lead time
• Manufacturing lead time and customer lead time
  must be matched

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Production Strategies Used to Match Customer and
Manufacturing Lead Times

• Engineer to order (ETO)
• Make to order (MTO)
• Assemble to order (ATO)
• Make to stock (MTS)

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Product Development Cycle

• New product development
• Existing product changes

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Product Development Cycle
1. Market Research
2. Management Review
3. Design Engineering
4. Production Engineering
5. Manufacturing
6. Customer Use
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Enterprise Organization

• A successful CIM implementation requires an
  understanding of the functions performed by each
  block of an enterprise, including
• Sales and promotion
• Finance and management
• Product/process definition
• Manufacturing planning and control
• Shop floor
• Support organizations

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Manual production operations

• Activity enters system as either a design or
  request for engineering action
• Product design uses CAD to make the drawing
• The product definition group lists the different
  parts of the drawing as BOM
• The manufacturing definition group separates the
  BOM into those to be purchased and those to be
  manufactured inside
• Manufacturing process planning determines the
  type of machines and process sequences required
  to process the parts
• The business production planning produces the
  production schedule

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CIM-Oriented Operations

• Implementing a CIM system enhances and automates
  the above manual production operations

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Potential Benefits of CIM

• Shorter time to market with new products
• Increase in manufacturing productivity
• Shorter customer lead times
• Improved quality
• Improved customer service

• Shorter vendor lead times
• Reduced inventory levels
• Greater flexibility and responsiveness
• Lower total cost
• Great long - term flexibility