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Manufacturing and Process Selection Design

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Manufacturing and Process Selection Design

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    1. Manufacturing and Process Selection Design Chapter 7

    2. Types of Processes Conversion iron ore into steel Fabrication forming raw material (gold into jewelry) Assembly fastening parts together to create product (bicycle) Testing for quality of products

    3. Process Flow Structures Job shop (or project) Copy center making a single copy of a student term paper Batch (workcenter or cell) Copy center making 10,000 copies of an ad piece for a business Assembly Line Continuous (Flow) Process

    5. Cost-Volume Relationships

    6. Cost-Volume Relationships

    7. Cost-Volume Relationships

    8. Break-Even Problem with Step Fixed Costs

    9. Break-Even Problem with Step Fixed Costs

    10. Breakeven Analysis Breakeven quantity =

    11. Breakeven example Thomas Manufacturing intends to increase capacity by overcoming a bottleneck operation through the addition of new equipment. Two vendors have presented proposals as follows: Proposal Fixed Costs Variable Costs A $ 50,000 $12 B $ 70,000 $10 The revenue for each product is $20 What is the breakeven quantity for each proposal?

    12. Breakeven Solution BEQ =

    13. Breakeven Analysis In the previous example, at what capacity would both plans incur the same cost?

    14. Process Flow Design Defined A process flow ‘design’ can be defined as a mapping/diagramming/documenting of the specific processes that raw materials, parts, and subassemblies follow as they move through a plant . [i.e. product/service as processed /delivered ] The most common tools to conduct a process flow design include assembly drawings, assembly charts, and operation and route sheets.

    15. Process Flow Design Assembly drawing (see Exhibit 7.3) an exploded view of the product Assembly chart (Gozinto) (Exhibit 7.4) defines how parts go together Operation and route sheet (Exhibit 7.5) specifies operations and routing Process flowchart (see Exhibit 7.6) uses standard symbols to show what happens to product as it flows through production process

    17. Example: Assembly Chart (Gozinto)

    18. Example: Process Flow Chart

    19. Operations Technology Hardware Systems Software Systems Computer Integrated Manufacturing Technologies in Services Benefits Risks

    20. Hardware Systems Numerically controlled (NC) machines Machining centers Industrial robots Automated material handling systems Flexible manufacturing systems (FMS) ‘Scope economies’

    21. Software Systems Computer-aided-design (CAD) Automated manufacturing planning and control systems (MP & CS) Enterprise Resource Systems (ERP)

    22. Computer Integrated Manufacturing Product and process design Planning and control The manufacturing process

    23. Technologies in Services Office automation Image processing systems Electronic data interchange (EDI) Decision support systems & expert systems Networked computer systems

    24. Benefits from Adopting New Technologies Labor costs Material costs Inventory costs Transportation or distribution costs Quality costs

    25. Other Benefits…. Increased product variety Improved product features and quality Shorter cycle times

    26. Risks Technological risks Organizational risks Environmental risks Market risks

    27. Global Product Design and Manufacturing Joint Ventures Strategic Suppliers Global Product Design Strategy

    28. Virtual Factory Shift from centralized production to .... .. an integrated network of capabilities local, national, global

    29. “The best engineered part is no part” NCR has achieved or overcome the following: less components less suppliers less assembly time eliminating screws and fasteners faster speed of concept to market lower costs

    30. Product Development in Japan - Benefits Employment throughout the economy easy to make design changes many small innovative companies

    31. Product Development in Japan - weaknesses Very complex structure of companies difficult to understand difficult to control a breakdown in a small company could immobilize a large company like Matsushita.

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