5 -making_products

Alex Hill and Terry Hill

Making productsAlex Hill and Terry Hill

Learning objectives

• Recognise the TECHNICAL and BUSINESS requirements to be met when making products

• Define the different TYPES of manufacturing process

• Identify the APPROPRIATE manufacturing process to use for different production volumes

• Identify the CATEGORIES of product and TYPES of manufacturing process

• Understand the business IMPLICATIONS of investing in alternative types of manufacturing process

• Explain why HYBRID processes may be introduced

Lecture outline

• INTRODUCTION

• Factors affecting MANUFACTURING PROCESS design

• DESIGNING the manufacturing process

• HYBRID processes

• Critical REFLECTIONS

• SUMMARY

Factors affecting manufacturing process design

•STEPS required to

- Turn INPUTS- Into OUTPUTS

TECHNICALREQUIREMENTS

•VOLUMES•MARKET- ORDER-WINNERS- QUALIFIERS

BUSINESSREQUIREMENTS

> KEY IDEAManufacturing processes need to meet bothTECHNICAL and BUSINESS requirements

Factors affecting manufacturing process designCategories of product

Factors affecting manufacturing process designTypes of manufacturing process

Developing a strategyUnderstanding customer requirements

Process type

Product Process

Project

Jobbing

Batch

Line

Continuous processing

• Made ON-SITE • Resources BOUGHT TO SITE

• SPECIAL, non-repeat

• ONE PERSON or SMALL GROUP

• STANDARD, repeat low to high volume

• Has to be RESET for each batch of products made

• MASS, repeat high volume

• DOES NOT have to be reset for different products

• MASS, repeat very high volume

• Process runs CONTINUOUSLY and never stops

Designing the manufacturing processProcess choices

> KEY IDEA

Use the words FLEXIBLE and AGILE with care as they have many DIFFERENT MEANINGS and, therefore, can be misleading

Designing the manufacturing processImplications of process design

CASE 5.1

OLD AND NEWCAR PLANTS

1.Why does Ford use a LINE manufacturing process?

2.Why is this process INFLEXIBLE?

CASE 5.1

Question Answer

Line process

Inflexible

• MASS products• NARROW product range• VERY HIGH VOLUME• NOT RESET for different products

OLD AND NEW CAR PLANTS

• Narrow PRODUCT range• Narrow VOLUME range

Hybrid processesCells

Hybrid processesCells

•Less WAITING time•Lower INVENTORY•Easier to

SCHEDULE

ADVANTAGES

DISADVANTAGES

•Less FLEXIBLE•Lower equipment

UTILISATION

> KEY IDEA

CELLS are a commonly usedHYBRID PROCESS

Car RestaurantBird

Making productsProduct category and process type

A Bug’s Life

(1998)

Gung Ho

(1986)

Dinner Rush

(2000)

Film clip Pit Stop

FilmTitleDirector (year)

A Bug’s LifeJohn Lasseter and Andrew Stanton (1998)

ClipStartFinish

00:47:0000:51:22

What clip showsThe bugs decide that they want to build a bird to protect their community

Key learning objective

The characteristics of a project processHow an operation transforms inputs into outputs


Film clip Factory


Gung HoRon Howard (1986)

ClipStartFinish

01:33:1301:34:31

What clip shows Cars being manufactured on a production line


The characteristics of a high-volume batch processHow an operation transforms inputs into outputs


Film clip Restaurant


Dinner RushBob Giraldi (2000)

ClipStartFinish

00:58:5801:02:44

What clip showsThe chef producing a special one-off dish for a restaurant critic who is having dinner in the restaurant


The characteristics of a low-volume batch process How an operation transforms inputs into outputs (and the difference between services and manufacturing)


Question Bird Car Restaurant

PRODUCT category

PROCESS type

• Made on-site• Special

• Mass• Standard

• Project• Resources

moved to site

• Line• High volume• Don’t reset

• Special• One-off

• Jobbing• Small group


Critical reflections

• MANUFACTURING PROCESSES must be:- ALIGNED to its market ORDER-WINNERS and

QUALIFIERS- REFLECT its internal BUSINESS requirements

• Each PROCESS has a different set of TRADE-OFFS

• Although DEMAND CHANGES over time, most businesses will NOT RE-INVEST in a different process

• Choosing the RIGHT PROCESS for the life of a product will have a significant impact on its SALES REVENUE and PROFIT

Summary

• Manufacturing processes must SUPPORT

- Technical and business requirements

• TECHNICAL requirements- The product specification

• BUSINESS requirements- Volumes and market order-winners and

qualifiers

• Each process type has a different set of TRADE-OFFS

Revision questions

1 Which of the following is an example of a special product:

a) Automobile

b) Oil tanker

c) Ocean-going yacht

Revision questions

2 The essential difference between a batch and line process is:a) A line process is always straightb) When changing from one product to

another, a batch process has to be stopped and reset whereas a line process does not

c) A batch process can be stopped, but a line process cannot be stopped

Revision questions

3 The differentiating feature of a continuous process is: a) The processes are laid out sequentiallyb) It is another name for a line processc) It is very expensive to stop and restart

hence it runs continuously

Revision questions

4 Which of the following is a definition of flexibility:a) Handling a range of products

b) Meeting demand peaks

c) Both a) and b)

Revision questions

5 Which of the following is true:a) Process investments tend to be

inexpensive to changeb) Companies choose a process with the

intention of not changing it in the near future

c) Both a) and b)

Revision questions

6 The essential difference between cells and batch manufacturing is that:a) In cells, processes are allocated to the

sole use of a group of productsb) In cells, similar processes are grouped

togetherc) In cells, equipment utilisation tends to be

higher than in batch

Revision questions

7 Potential cause(s) of non-alignment between a company’s markets and its operations’ capabilities are: a) The company is trying to meet the

differing demands of several markets with a single process

b) The needs of the market have changed over time

c) Both a) and b)

CASE FOR TUTORIAL

PRET A MANGER

5 -making_products

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