Manufacturing Systems IV

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© Dr. C.Hicks, MMM EngineeringUniversity of Newcastle upon Tyne

Manufacturing Systems IV

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Topics

• Strategy• Identifying IT requirements, system

selection and implementation• Computer Aided Production

Management (CAPM) Systems

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Information Technology in Manufacturing

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References• Checkland P.B. (1981), “Systems

Theory, Systems Practice”, John Wiley and Sons Ltd.

• Cutts G. (1991),” Structured Systems Analysis and Design Methodology”, Blackwell, England, ISBN 0-632-02831-9

• Howe D.R. (1983),”Data Analysis for Database Design”, Edward Arnold ISBN 0-7131-3481-X

• Hutchinson G.K. (1975),Introduction to the Use of Activity Cycle Diagrams as a Basis for Systems Decomposition and Simulation, Simuletter 7(1) pp15-23

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References (cont.)

• Johnson G. and Scholes (1998), “Exploring Corporate Strategy: Fifth Edition”, Prentice Hall Europe, ISBN 0-13-808739-0

• Monniot J.P., Rhodes D.H., Towill J.G and Waterlow J.G. (1987), Report of a Study of Computer Aided Production Management in UK Batch Manufacturing, Int. J. Op. Prod, Man. 7(2) pp2-57

• Ross D.T. (1977), Structured Analysis (SA): A Language for Communicating Ideas, IEEE Transactions on Software Engineering, Vol. SE3(1)

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Strategy

• Strategic decisions are concerned with or affect the long-term direction of an organisation

• Strategic decisions are about trying to achieve competitive advantage for an organisation

• The scope of an organisation determines the boundaries of the business in terms of the type of product, mode of service and geographical spread

• Strategic fit is the matching of the activities of an organisation to the environment in which it operates

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Strategy (cont)

• Strategy can be seen as building on or “stretching” an organisations resources and competencies to create opportunities or to capitalise on them

• Strategies may require major resource changes e.g. need for capital, balance of resources needed

• Strategic decisions affect operational decisions.

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Levels of Strategy

• Corporate strategy, concerned with the overall purpose and scope of an organisation to meet the expectations of owners and major stakeholders and to add value to the different parts of the enterprise

• Strategic Business Unit is a part of the organisation for which there is a distinct external market

• Business unit strategy how to compete successfully in a particular market

• Operational strategy concerned with how the component parts of the organisation deliver the business and corporate level strategic direction

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In this context, Manufacturing Strategy and Information Technology Strategy are operational strategies.

Information Technology can be seen as infrastructure that supports the various operational strategies within the organisation.

In these lectures, we will focus particularly on how IT can support manufacturing strategy

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Identifying IT requirements, selecting systems and IT

implementation

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Assumptions

• Competitive criteria are known and understood in terms of qualifying, order winning and losing criteria. Remember profile analysis?

• Basis of competition is known e.g. product excellence, operational excellence, customer intimacy

• Manufacturing strategy is determined in terms of make/buy, processes, technology, focus and organisation.

• IT support and infrastructure is to be reviewed.

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Feasibility Study• Ensure commitment from top

management• Planning phase

– Estimate required budgets– Produce programme plan– Identify milestones– Estimate manpower requirements– Define management input– Identify key decision points– Estimate required contact with staff

• Do not be optimistic, things will often take longer than expected and be more expensive!

• Confirm management commitment

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Managing the Process

• Identify project leader– Champion responsible for “selling”

project– Managing budget– Monitoring and controlling progress– Reporting to management

• Identify business process improvement teams (representing the various business processes).

• Organise management and reporting structures for teams

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Steps:• Understand existing systems• Model existing systems• Redefine systems to streamline them

and ensure that they support operational, business and corporate strategies

• Produce models of proposed system• Develop a Functional Specification that

defines requirements

Identifying IT Requirements

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Selecting systems and IT implementation

• Select a package that satisfies Functional Specification

• Purchase package• Implement package• Identify training requirements for all

staff• Develop training material and training

plans• Carefully manage change over to new

system• Develop operational procedures to

ensure successful continued operation

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Understand Existing System

• Meetings with business process improvement teams

• Identify information flows through organisation

• Identify role / purpose / objectives of business processes / job functions

• Identify information requirements of each job function in terms of data inputs, data outputs and reporting requirements

• Identify way in which data is processed and decisions are made

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Understand Existing System (cont.)

• Identify which decisions are totally delegated and those that require authorisation

• Identify appropriate measures of performance associated with each business process / job function

• Confirm with business process improvement teams.

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Modelling Systems

• Process maps to define data flow• Functional model - decomposes a

complex system using a hierarchical top down approach - provides a means of understanding activities and their inter-relationships

• Information model - enables the structure of information required to be understood

• Dynamic model - shows changing behaviour over time

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Process Map Examples

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Check stockposition on shop

floor

Customer Phones

Enq

uiry

SalesCheck typeof Enquiry

Check with MrRathi for

manufacturingcapability

Credit Check ViaNMB - Heller

Limited

Fill CreditApplication Form

New Product

New

Cus

tom

er

Regret Enquiry

No

Good

Regret Enquiry

Set up new Account

Bad

John Schofieldworks out delivery

date

Customer notifiedof delivery date &

price list sent

Sufficient

Order RawMaterials

Insufficient

Custom er Enquiry

Customer mustconfirm order in

writing

Different

Customer

Order

Existing Rawmaterial

Check

Yes

Insufficient

Sufficient

Price ListAgreed with

Sales &GeneralManager

Adequate

Sales (Dorothy)Check quantity

against price list

Amend topredefined

requirements

Check orderrequirements

Make out OrderConfirmation &send to relevant

parties

Rachelchecks O/C

beforesending

John W atsonDespatches

Manager

JohnSchofield

W orksManager

Customer Checks Order

confirmation details

Sales Agent (Derek Freeson)Sales Manager (Mike Day)

or General Manager (Mr Rathi)

Reply within3 days

No ReplyOrder

confirmedautomatically

Sales Dept.Filing Cabinet

Customer informedabout New Account

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JohnSchofield

Production

Extrusion LineOperator Selects requiredCopper & PVC

A sheet

Machine set tospecified

instructions

Remove W astefrom Machine

ColourChange

Cut sample ofinsulation & check

for concentricity

Ensure marksettings are

correctly positionedand are marking

correctly

Ensure cable ismanufactured to

correct size

Lasermikediameter control

data on cablesizes

check

Use handmicrometers

Surfacefinish ofcable by

sight & feel

Good

check

Cut & tie label ontodrum

Label shows, batch/drum number, cable typeand amount, position ofany spark faults, clock

number.

Bad

Complete

Samplefrom each batch

Supervisor fortesting

W inding

A sheet completed

Quantity madeLine Operator No.Manufactuer of Copper & Q.C. No.Manufacturer of PVCPVC Compound type & Batch No.Masterbatch type & Batch No.

Supervisor

A Sheet

Check

Production scheduleBook

for temperature settingsof compounds

Check

Twisting

SheathingComplete samplefrom each batch

QC for testing

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Results logged inrecord book

Supervisor

Twisting

Produce Reel Labels

Cable typespecification lengthjob numberwinders number

Core Test

a. Markingb. Conductor resistancec. Concentricity of conductor/cored. Overall dimensions - insulatione. Minimum thicknessf. Overall dimensions - sheathg. Minium thickness - sheath

Pass

Pass

Twisting

SheathingSame process as

Extrusion forcores

W inding

New A sheet forsheathing from J.

SchofieldCompleteA sheet

Test cableDimensionconductor

Twisting Intrsuctions

J. Schofield setsQTYsize No. of CoresLength

Twist to cable tospecified

instructions

Label Drum

QC No.No. of Cores

HT No.Length

Complete recordBook for HT No.s Cable wound

tospecification

Label Reels &Store on pallets

Complete samplefrom each batch

QC forTesting

A Sheet

A sheet completed

Size of ReelNo. of Reels wound

Total LengthOperator No.

Date

STOCK &DISPATCH AREA

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Common Methodologies

• Functional model– Structured Systems Analysis and

Design Methodology (Cutts 1991)

– SADT (Ross 1977), IDEF0, ....

• Information View– Entity- relationship diagrams (Howe

1983),IDEF1

• Dynamic view*

– Activity cycle diagram (Hutchinson 1975), IDEF2

* Mainly used in simulation

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Structured Systems Analysis and Design

Methodology (SSADM) Examples

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C om pany X - C ontext D iagramH igh Leve l

C om pany X

ITT

Tender

ContractAwarded

aC ustom er

aC ustom er

ProgressReport

bS upp lie r

bS upp lie r

QuoteITT Order

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D ata F low D iagram - H igh Leve l

Tendering1

P repareTende r

ITT

C ustom er

Tender

D1 ITT & Tender

ITT (copy)

Engineering2

D es ign fo rTende r

ITT (copy)

D2 Supplier Deta ils

Suppliers& Costing

Q uote

Q uality3

P repareC Q A R

ITT (copy)

CQ AR

Designs, TPS, PPRecom m end Suppliers

Projects5

Plan & CoordinateProject

ContractF ile

Engineering6

Conceptual &Detailed Design

ContractF ile (copy)

7 Purchasing

Supplier Selection,O rdering &Expediting



ProgressReport

ProjectPlan

ProgressReport

ProgressReport

ProgressReport

Drawings,M anuals

DrawingsDrawings

M3 Contract F ile

D/M4 Client Corresp

Approv eP.O .

8 Q uality

ITP & SupplierApproval

ITP

Update

S upplie r

S upp lie r

Q uote

SupplierApprov al

PurchaseO rder Expedite

Inspectionreport

SupplierApprov al

M5 Pref. Suppliers

Supplier

M6 Historic Designs

Designs

M5 Pref. Suppliers

M6 Historic Designs

Supplier

Designs

M/D7 Suppliers

Supplier

D8 Prev ious Suppliers

ContractAwarded

G en. M anager4

A pprova l O fTende r Tender

G.M

B R R

9ProjectReport

Action

Q uote

New DesignsSupplier

PurchaseO rder(copy)

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D ata F low D iagram - Low Leve l :Supp lie r Se lection , O rdering & Exped iting

Purchasing7.1

G enera te B illo f M a te ria ls

D8 Prev ious Suppliers

P ro jects7 . Supplier Selection,Ordering & Expediting

Drawings

Purchasing7.2

S e lec tS upp lie r(s )

Purchasing7.3

O rderC om ponen t

Purchasing7.4

E xped ite

ContractF ile (Copy)

Com ponents(grouped)

Possible Supplier

S upplie r

Q uote

P ro jects

Project P lan(Delivery Date)

PurchaseO rder

Project ProgressCheck

E ngineeringApprov eSupplier

Approv eO rder

M/D7 Supplier Literature

NewSupplier

Supplier Selected

PurchaseO rder(Copy)

S upplie rProgress

SupplierDetails

Agreed DeliveryDate, Location

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Other Functional Modelling Methods

• SSADM• GRAI• Checkland “soft systems models”

provides a way of seeing patterns in diffuse problems and allows different views to be represented

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Entity-Relationship Modelling

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Entity-Relationship Modelling

• Describes data structures for database systems

• An entity is an object which one wants to describe in terms of data

• An entity type describes some class of object

• An instance describes particular objects.

Example:

A payroll system may use an entity type EMPLOYEE, with each particular person being an instance of that type.

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Relationships

• Different entities will have relationships between them

• For example in manufacturing there would be people and machines. The relationship may define which people are capable of operating which machines.

• Relationships are also defined in terms of type and instances

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Attributes

• Entities and relationships have attributes

Example: Employees have the attributes:• Name• Address• National insurance number• Date of birth• Sex• Salary etc.

Relationships also have attributes

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Primary and secondary keys

• The primary key is an attribute that uniquely identifies a particular instance of an entity

• A secondary key is some combination of attributes that uniquely define a particular instance of an entity

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E M P LO YE E

N ationa l InsuranceN um berS urnam eFirst N am eO ther in itia lsH ouse num berS treetA reaC ityP ost codeS alaryJob function

N am e ofentity type

P rim ary key

O thera ttribu tes

W Entity

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RelationshipW

P K ey 1P K ey 2

+O ther a ttribu tes

P rim ary keys o f en titiesw ith re la tionsh ip

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Entity-Relationship Diagram

Primary key 1Otherattributes

EMPLOYEE

Primary key 2Otherattributes

MACHINE

Primary key 1Primary key 2

Other attributes

Works on

m n

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Redefine Systems

• Produce process maps that define streamlined systems

• Produce functional models that define relationships between subsystems in proposed system

• Produce data models that define data structures for proposed system.

Care should be taken to:• Eliminate redundant processes• Eliminate redundant data

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Develop Functional Specification

Describe system requirements• Process maps• Functional models• Data models• Description of processes to be

supported• Required reports• Description of job functions under new

system• Required performance indicators• Security• Volume of data

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Commercial Issues

• Size, turnover, liquidity, profitability of software vendor

• Package cost and maintenance• Purchase / lease arrangements• Stage payments• Support arrangements• Software / hardware updates• In-house / bought in analysis,

implementation and training support• Trade / bank (beware) references• Trading Period

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Technical Issues

• Platform PC / Workstation / mainframe• Operating systems• Networking Ethernet / token ring• Data storage requirements• Data processing requirements• Backup• Security• Ability to customise• Standard database / bespoke?• Internet / intranet / Email?

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Select Package• Listing of available packages in

Computer Users Yearbook• Identify packages that appear to have

required functionality / features• Obtain annual reports for commercial

analysis• Postal / telephone survey• Generate spreadsheet• Get vendors to demonstrate packages

using your data• Visit test sites with similar

requirements• Visit software company

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Purchase Package• Specify requirements as clearly as

possible - many software houses aim to make money on “extras”

• Make payment in stages• Clearly identify responsibilities• Do not scrimp on training

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Implement Package• Training and involvement is key• Make sure the people who use the

system feel they own it• Ensure staff have plenty of time to

learn new system• During implementation frequently

check the validity of data and identify further training requirements

• Keep backup system during implementation

Approaches:• Implement in stages e.g business by

business or process by process• “Big bang” - avoid if possible

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Making it a Success• Try to satisfy user requirements if it is

not possible explain why - it should be their system

• Ensure that the data model is correct• Continually measure system

performance• Be prepared to make changes.• Ensure that the system is stable

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Computer Aided Production Management

(CAPM) Systems

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Computer Aided Production Management Systems

• “All computer aids supplied to the production manager” (Monniot et al 1987)

• Main information processing activities– specification of tasks– planning and control– recording and reporting

• Information systems– transaction processing– management information– automated decision making

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CAPM System Integration

• Technical integration• Information integration• Strategic integration• Functional integration

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5 Levels of CAPM Integration

• No CAPM• No integration• Partial integration• Full integration• Full integration of manufacturing

systems

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Prerequisites for Success

• Data accuracy• Real time data• Shared data• Networked systems

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Other Important Issues

• CAPM Systems are a component of a manufacturing system

• Many “soft” system elements• Ownership important• Champion required• Time scales

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Identify Manufacturing Characteristics

• Competitive criteria, manufacturing strategy - determines context

• Make to Order / Make to stock - effects Master Production Scheduling, order processing, inventory management and production scheduling

• Product structure, determines nature of procurement, manufacturing and assembly effects procurement, MRP and inventory subsystems

• Uncertainties, environmental / system - refer to MRP parameters covered in Manufacturing Systems 3.

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Identify Manufacturing Characteristics (cont.)

• Relationships with other functions, accounting, marketing

• Make v/s buy - relative importance of procurement / manufacturing subsystems

• Standardised / customised products - links with product development, need for new process plans etc.

These factors help determine the particular characteristics of CAPM subsystems required.

Manufacturing Systems IV

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