Establishing Control Systems

1. Establishing Control Systems Chapter 23 Exploring Manufacturing Textbook

2. After studying this chapter, you will be able to: • Name the four phases involved in developing and using a resource control system. • List the major resources used to manufacture a product. • Discuss the three major factors that affect labor costs. • Name and discuss the two tasks in a total quality control system.

3. Resource control • Resource Control: making sure that resources are being fully utilized, and not sitting idle or being wasted. • Machines that the company owns must be used as much as possible. • People need to be kept busy doing productive work. • Materials should not be wasted. • The outputs of the system must also be controlled. • Waste, scrap, and pollution must be kept down. • Product quality must be assured, too.

4. Control Systems • Planning Activities • Measuring Performance • Evaluating Performance • Corrective Action

5. Planning Activities • There are two basic types of manufacturing plans: • Long-range • Short-term

6. Long-Range Plans • Long-range plans are usually three to five year projections (forecasts or guesses). • They direct overall business activities. • Long-range product development, marketing, and finance plans are common. • Long-range plans are general in nature. They only give guidelines for policy decisions.

7. Short-Term Plans • Short-term plans are more concrete (real). • They outline performance goals (work to be done) for a set period. • Short-term plans can be for a day, week, month, or year. They provide directions for daily activity. • Typical short-term plans include production schedules, budgets, and sales quotas. (A quota is a goal or amount to be done.) Goals guide day-to-day operations. • Manufacturing activities are guided by short-term plans. • They include plans for using labor, materials, and machines. • Also included are plans for controlling product quality.

8. Measuring Performance • Manufacturing activities are controlled. • Their performance is measured . • Some method is used to record the use of machines, labor, and material. • Records are kept of time worked, products produced, and material used. • These measurements provide the basis for management decisions.

9. Evaluating Performance • Manufacturing performances is also rated against some base. • This base is often the company’s plan. • The number of products produced is measured against production plans. • Product quality and worker output (amount of work done) are always measured. • Product function, reliability, and appearance are evaluated.

10. Corrective Action • Such measurement and evaluation often point out shortcomings. • Management must decide what action to take. • A number of things could be done. • Operations may need to be changed. • Manufacturing engineers may redesign the task. • The work station could be made more efficient. • These actions could increase the worker’s efficiency. • Scrap rates could go down. • Productivity could rise. • Materials may be changed. • Another standard size could provide better cuts. • The size of scrap at the ends of the material could be reduced. • A different material may work better. • Whatever the corrective action, product quality must be maintained.

11. Phases of a control system. Develop Plan Correct Plan/Performance Control System Measure Performance Evaluate Plan/Performance

12. Factors to Control • Everything a company does is controlled. • Sales are controlled. • Raw materials and finished goods inventories (stores) are controlled. • Income and expenses are controlled. • Control is the basis for success. • Two major concerns of any company are: • Use of resources • Quality of its products.

13. Controlling Use of Resources • The major resources used to make products are: • Human labor. • Machine time. • Materials. • These resources must be managed. • They must be used efficiently.

14. Controlling Human Labor • Each job takes time to do. • There is a labor cost for the job. • This cost adds to the total product cost. • The actual labor cost is affected by several things. These include: • How well the operations are planned. • Worker efficiency. (How well the workers do their job). • Wage rate paid to the workers.

15. Operations • Manufacturing engineers can study flow and operation process charts. • Operations can be simplified and combined. • Product design changes can do away with some assembly steps. • New technology may make manufacturing more efficient. • Any of these actions can reduce labor costs.

16. Worker Efficiency • The task can be made more efficient. • Machines can be modified (changed) to make them easier to use. • Tooling can be improved. • Machine controls can be located for greater convenience. • The amount of reaching can be reduced by handier location of materials. • Often, the efficient use of labor is improved by automation. • Routine jobs are given to machines, robots, and computers.

17. Wage Rate • The final item in labor cost is wage rates. • Wage rates: what the worker is paid. • Labor cost and worker skill are related. • Difficult jobs require skilled workers. • Skills take time and ability to learn • This ability and training is rewarded with higher wage rates. • Labor costs can be controlled by deskilling (making the job simpler). • The total skill of any operation includes: • Skill built into the machine. • Skill of the worker. • Manufacturing engineers always try to build skill into the machine. They do this in several ways: • Better tooling • Easier-to-use or self-adjusting controls • The operator needs less skill to run the machine. • She or he can be hired at a cheaper wage.

18. Measuring Labor • There are three major measurements used to control labor costs. These are: • Time Worked • Products Produced • Productivity

19. Time Worked • The simplest measure for labor is time worked. • Workday: the time span in which employees record the times they start and end work. • Time Clock: a device that automatically prints the employee’s starting and ending times on a card. At the end of the week, total time worked is added together.

20. Products Produced • Work completed at each station is another way to measure labor. • The time worked is important to the worker. Time is the basis for many people’s pay. • The number of good products made is the important measure for a company. • Profits are made by producing quality products. • Production records are often kept.

21. Productivity • Productivity: a measure of the output per unit of labor. • It is measured in terms of products per worker hour (one person working one hour) or worker day (one person working one day).

22. Controlling Machine Time • Proper use of machines has an important effect on cost of production. • Machines must be carefully scheduled for use. • Production planners must see that machines are not idle for long. • Similar operations should be scheduled on the same machine. This reduces set-up and tear-down times. • Long runs should be scheduled whenever possible. • Efficiency rises as the length of the run increases. • All machine operations have at least three phases: • Loading parts or materials into the machine. • Processing the parts or materials. • Unloading parts or materials from the machine. • Loading and unloading time should be kept to a minimum. • Correct machine speeds and feeds should be used. • Drilling a hole at a speed slower than required is wasteful.

23. Controlling Material Use • Inventory control: controlling the amount of material on hand. • There are several materials that can be controlled. • Raw materials – materials that will be processed during manufacture. • Purchased parts – hardware and parts bought from other companies. They will become part of the product. • Work-in-process – products that are being built but are not finished. • Finished products – completed products ready for shipment to customers. • Supplies – materials, such as abrasives or paint, that are used up in the manufacture of the product.

24. Controlling Material Use • These inventories are carefully kept. • Computers are used to help keep the records. • The record will list material by six categories: • On order – items ordered but not yet received. • Received – items received since the last update of the records. • On hand – items in storage. • Issued – items released from the stockroom to production or shipping. • Allocated – items being held that are marked for production or shipping. • Available – items in inventory that are available for use.

25. Controlling Quality • Quality is everybody’s business. • Customers want products that work. • Retailers want to sell good products. • Sales can be lost by creating dissatisfied customers. • The success of a company will depend on its image. • It must be seen by customers as a quality manufacturer. • The key to producing a quality product is quality control. • It ensures that the product meets standards. • This function of a company has two tasks: • Motivating workers to produce quality products. • Inspecting products to remove substandard items.

26. Motivation • Posters are used to encourage quality production. • Foreign competition has changed workers’ minds. • The automotive and steel industries were seriously hurt by the image of poor quality. • Workers were asked to join quality circles, these are voluntary groups that meet often to discuss ways to improve the company and its operations. New production methods, management activities, and other ideas are discussed. • The goal of quality circles is to improve quality of both products and work life. • Workers who join these groups tend to feel they are important. • They can help the company improve and compete.

27. Inspection • Inspection: a process that ensures only quality products leave the plant. • Inspection includes checking: • Materials entering the plant. • Purchased parts. • Work-in-progress. • Finished products. • They are often tagged to indicate the condition. • Good items receive an “accepted” tag. • Other parts are marked for either rework or scrap. • Rework corrects defects. Parts are then inspected again before they leave the plant. • Inspectors also prepare inspection reports. • They report on their activity for a set period of time (hourly, daily, etc.). • They record the number of parts: • Inspected • Accepted • Rejected and the reason. • This information will identify problems in the manufacturing system. Managers can then take proper corrective action.

28. Summary • Resources must be used wisely. • Materials must not be wasted. • Machines must be used efficiently. • People need to be assigned to appropriate work. • They must be busy producing products. • Production planners must schedule the use of these resources. • They then need to evaluate their use. • Product quality must also be maintained. • Employees need to understand their importance. • Each worker should know that his or her job contributes to quality products. • Everyone must be motivated to produce good products. • Inspection activities must remove defective items. • Materials and purchased parts must meet standards. • The product must also meet standards. • It must be inspected to ensure quality. • Only through control of resources and quality can a company compete.

29. Name the four phases involved in developing and using a resource control system. • Planning Activities • Measuring Performance • Evaluating Performance • Corrective Action

30. Phases of a control system. Develop Plan Correct Plan/Performance Control System Measure Performance Evaluate Plan/Performance

31. List the major resources used to manufacture a product. • The major resources used to make products are: • Human labor. • Machine time. • Materials.

32. Discuss the three major factors that affect labor costs. • There are three major measurements used to control labor costs. These are: • Time Worked • Products Produced • Productivity

33. Name and discuss the two tasks in a total quality control system. • Total quality control system has two tasks: • Motivating workers to produce quality products. • Inspecting products to remove substandard items.

34. Any Questions??