18 PNE 049

Production / Manufacturing (earlier days):

• Transformation of materials into something useful (products / services) by a series of energy

appllications each of them does defined changes in the physical and chemical characteristics
of the material (Dan, 1966)

Production / Manufacturing (Modern days):

• Manufacturing : “Conversion of design into finished products”- “Production of tangible

goods”

• Manufacturing should be recognised as a series of productive activities: Planning, Design,

Procurement, Production, Inventory, Marketing, Distribution, Sales, Management… etc.

• Production : “Physical act of making products”

Manufacturing Systems:

• A collection or arrangement of operations and processes used to make a desired product or

component. It includes the actual equipments for composing the processes and the
arrangement of those processes

• Set of machines, transportation elements,computers, storage, people and other items are
used together for manufacturing
 MANUFACTURING SYSTEMS
Manufacturing Systems:

Resources of Production for

Manufacturing Systems

1. 2.
Production Prodution
Objects Means

3. 4.
Producive Production
Labours Information
 • Materials on which activities (a) Primary Materials :

1. •
of Production are performed
Get Change and are
Converted into Products
through the Production
consumed during Production Process
Production (b) Auxiliary Materials: Added to
the Primary Materials (Paint,
Objects Electricity, Lubricant Oil, Light,
Air Conditioning, Labour…)

• Media in which the Raw (a) Direct Production Means

2. Materials are converted into / Production Facilities:
products Directly work on Raw
Prodution • Can be utilised repeatedly Materials (Machines,
during a length of time Equipments, Jigs & Tools,
Means Mateirials Handling
Equipment, etc
(b) Indirect Production
Means: Do not directly run
Productive activities (Land,
Road, Buildings,
Warehouses…)

• Human ability ---

• Including the Physical,
Spiritual and Mental ability
3. of an individual worker with
which Production activities
Producive are performed

Labours

• Knowledge / Intelligence / (a) Production Technology:

Know-How to impelment Follows Objective Engineering
effective function of Laws & Empirical Rules
4. Productive Process (b) Production Techniques:
Subjective Skills gained
Production training of individual
Information (Experience & Intuition)
(c ) Production Knowledge-
Base : Expert System based
upon the Production rules
 A Firm acquires Personnel, Materials, Machines, Money
and Methods from the Labour Market, Goods Market,
Money Market and the Information Market, then
produced Goods / Services are sold as commodities at
the Commodities Market

Labour
MAN
Market

Goods MACHINE GOODS &

FIRM
Market MATERIALS… SERVICES

Money
MONEY
Market

Information COMMODITY
METHOD
Market MARKET
(SALES)

Competitive Manufacturing Capabilities:

COST:

• All manufacturers are concerned to some degree with cost

• Manufacturers’ choices about how they pursue marginal decreases in cost are generally
technological in that they involve tradeoffs among capital, overhead, labor, and/or materials

• Advanced manufacturing technologies, including hardware, software, and management

techniques, have changed the nature of tradeoffs for manufacturers. These changes have
occurred primarily through “set up” efficiencies, which reduce the cost penalty of
manufacturing short runs of customized products relative to long runs of standardized
products.

• New manufacturing technologies have made the pursuit of scale economies through
production of standard products less attractive by reducing the manufacturing cost premium
associated with less standardized products.

QUALITY:

• Manufacturing traditionally focuses on the conformance dimension of quality

• Each of the other dimensions of quality also represent possible bases of competition

• The most essential capability possessed by a manufacturer is producing at a high

level of conformance quality. Low cost manufacturing requires the elimination of wasted time and
material associated with excessive inspection, scrap, and rework attributable to nonconforming
products

DELIVERY PERFORMANCE:

• The two main dimensions of delivery performance are reliability and speed

• Delivery reliability is the ability to deliver according to a promised schedule.( Here the
business unit may not have the least costly nor the highest quality product but is able to
compete on the basis of reliably delivering products when promised)

• For some customers, delivery reliability is not enough, delivery speed is also necessary to
win the order

• Long run success requires that promises of speedy delivery be kept with a high degree of
reliability.

FLEXIBILITY:

• The dimensions of flexibility most commonly pursued by manufacturers are related to

product mix, volume, and changeover
 • The essential ingredient of manufacturing flexibility is reducing the time and effort involved
in “setting up” for production of a different product

• Manufacturing flexibility has traditionally been achieved at a high cost by using general
purpose machinery instead of more efficient special purpose machinery and by deploying
more highly skilled workers than would otherwise be needed. When properly implemented,
advanced manufacturing technologies have reduced the cost of achieving flexibility

Interdependencies among Manufacturing Strategies, Competitive Strategies, Structure and

Environment:

Environment:

• Firms face changes from customers, competitiors and society… (Rapid and unpredictable)

• The relatively small and simple organisations have to promote AGILITY needed to adapt
quickly to the changes in customer demand, market changes…

Structure:

• Simple Structure – dictates a powerful central authority in making decisions

• Being a “Niche” – doesnot require more specialists

• Can provide quick responses to environmental changes…

Competitive Strategy:

• Product Differentiation

• Focus on Niche Market

• Avoid Direct Competition with Large Companies

• Avoid unncecessary investments in inventory etc…

• Pursue Narrow Segment, Product, Technology, Customer…etc.

Manufacturing Strategy:

• Very flexible production arrangements

• Maintain flexibility to accommodate environmental changes in customer demand and

competitior behaviour

• May practice customized prodcut / service strategy

• Process Technology

• Facilities

• Inventory

• Workforce policies….

• Organisations need to consider the following before making the final decision onn designing
the processes :

 whether the firm should automate

 If so, to what degree

 the type of automation that should be used…

Automation:

• “Using Machinery to perform work without human operators”

• Can be a single machine or an entire factory

• Has both advantages and disadvantages

 AUTOMATION IN MANUFACTURING
Automated Material Handling:

• Early days : Conveyors to move the products

(Belts / Chains)

• At Present : Today’s material handling devices can

read bar codes - that tell them which location to go
to and which are capable of moving in many
directions.

Automated Guided Vehicle (AGV):

• Small , Battery – driven truck that moves materials from one location to the other

• Not operated by a human and takes its directions from either an onboard or central
computer

• The older models followed a cable that was installed under the floor

• The newer models follow optical paths and can go any where there

• One of the biggest advantages of AGVs is that they can pretty much go anywhere, as
compared to traditional conveyor belts
Automated Storage and Retrival System (AS/RS):

• Are basically automated warehouses

• AS/RSs use AGVs to move material and also computer-controlled racks and storage bins

• The storage bins can typically rotate like a carousel, so that the desired storage bin is
available for either storage or retrieval

• All this is controlled by a computer that keeps track of the exact location and quantity of
each item and controls how much will be stored or retrieved in a particular area

• AS/RSs can have great advantages over traditional warehouses

• Though they are much more costly to operate, they are also much more
efficient and accurate.

Just Refer the following Links to understand much :

• https://www.youtube.com/watch?v=Ob7gnbfulww
• Honestbee, Singapore

• IKEA Automated Warehousing:

• https://www.youtube.com/watch?v=KKA98_vKs8A

• Witron’s OPM Technology

• https://www.youtube.com/watch?v=bn5jjVKhFUs

• Amazon’s Warehouse and OPM:

• https://www.youtube.com/watch?v=Ox05Bks2Q3s
Flexible Manufacturing System (FMS):

• “A type of automated system, that combines the flexibility of intermittent operations with
the efficiency of continuous operations”

• It’s a system of automated machines, not just a single machine

• An FMS consists of groups of computer-controlled machines and/or robots, automated

handling devices for moving, loading, and unloading, and a computer-control center

• Based on the instructions from the computer-control center, parts and materials are
automatically moved to appropriate machines or robots

• The machines perform their tasks and then the parts are moved to the next set of machines,
where the parts automatically are loaded and unloaded

• The routes taken by each product are determined with the goal of maximizing the efficiency
of the operation

• Also, the FMS “knows” when one machine is down due to maintenance or if there is a
backlog of work on a machine, and it will automatically route the materials to an available
machine.

• Flexible manufacturing systems are still fairly limited in the variety of products that they
handle

• Usually they can only produce similar products from the same family

• For this reason, and because of their high cost, flexible manufacturing systems are not very
widespread

• A decision to use an FMS needs to be long-term and strategic, requiring a sizable financial
outlay.
Robotics:

• A robot in manufacturing is usually nothing more than a mechanical arm with a power
supply and a computer-control mechanism that controls the movements of the arm

• The arm can be used for many tasks, such as painting, welding, assembly, and loading and
unloading of machines

• Robots are excellent for physically dangerous jobs such as working with radioactive or toxic
materials.

• Also, robots can work 24 hours a day to produce a highly consistent product

• Some robots are fairly simple and follow a repetitive set of instructions

• Other robots follow complex instructions, and some can be programmed to recognize
objects and even make simple decisions

Numeric Control Machines(NC)

• NC machines are controlled by a computer

• Can do a variety of tasks such as drilling, boring, or turning parts of different sizes and
shapes

• Factories of the future will most likely be composed of a number of robots and NC machines
working together

• The use of robots has not been very widespread in U.S. firms

• This is an area that can provide a competitive advantage for a company

• Cost justification should consider not only reduction in labor costs but also the increased
flexibility of operation and improvement in quality

• The cost of robots can vary greatly and depends on the robots’ size and capabilities

• Robots can be used to improve operations of almost any business

• Robots have been used to perform certain medical surgeries (Robotic Surgical System :
Robot surgery to repair human heart in NY, and in China, India…)

• https://www.youtube.com/watch?v=n4-Cxe9m4w0

CAD / CAM / CAE:

(Computer Aided Design / Computer Aided Manufacturing / Computer Aided Engineering)

• “A system that uses computer graphics to design ew

products”
• Today’s powerful desktop computers combined with graphics software allow the designer to
create drawings on the computer screen and then manipulate them geometrically to be
viewed from any angle

• CAD the designer can rotate the object, split it to view the inside, and magnify certain
sections for closer view

• Engineering design calculations can be performed to test the reactions of the design to
stress and to evaluate strength of materials - This is called Computer-Aided Engineering
(CAE)

• Ex: the designer can test how different dimensions, tolerances, and materials respond to
different conditions such as rough handling or high temperatures

• The designer can use the computer to compare alternative designs and determine the best
design for a given set of conditions

• The designer can also perform cost analysis on the design, evaluating the advantages of
different types of materials

• Another advantage of CAD is that it can be linked to manufacturing

• Through CAD this integration is made easy.

• Computer-Aided Manufacturing (CAM) is the process of controlling manufacturing through

computers

• Efficiencies of various machine choices and different process alternatives can be computed

• CAD can dramatically increase the speed and flexibility of the design process

• Designs can be made on the computer screen and printed out when desired

• Electronic versions can be shared by many members of the organization for their input

• Also, electronic versions can be archived and compared to future versions

Computer Integrated Manufacturingg (C I M):

• “A term used to describe the integration of product design, process planning, and
manufacturing using an integrated computer system”

• Simple systems might integrate computer-aided design (CAD) with some numerically
controlled machines (NC machines)

• The key element of CIM is the integration of different parts of the operation process to
achieve greater responsiveness and flexibility
Recap:

• Automation a technique that can be used to reduce costs and / or to improve quality.
Automation can increase manufacturing speed, while reducing cost. Automation can lead to
products having cosistent and good quality

• Automation is a technlogy concerned with application of Mechnical, Electronic and

Computer based systems to operate and control system

….Recap: Automation System utilizes,

• Automatic Assembly Machines

• Automation Machine Tools

• Industrial Robots

• Automation Material Handling and Storage System

• Feedback Control and computer Process Control

• Computer system for Planning, Data Collection, and Decision Making to support
Manufacturing activities…
 …AUTOMATION IN MANUFACTURING
….Recap: Automation in Day-to-Day Life:
Industry: Day to Day Life:
• Robot painting in • ATM
automobile industry • Vending Machines
• Automating Assembly • Car Wipers
Machines • Motors
• Automation Filling & • Chip based
Paking Machines… Cars…

Advantages:

• Product consistency (With automated equipment, the last part made in the day will be
exactly like the first one made)

• Ability to efficiently produce large volumes of product

• Brings consistency, quality tends to be higher and easier to monitor

• Un-interrupted Production flow throughout the day, without breaks for lunch, and there is
no fatigue factor….

Disadvantages:

• Automation is typically very costly - These costs can be justified only by a high volume of
production

• Automation is typically not flexible in accommodating product and process changes.

• Automation would probably not be good for products in the early stages of their life cycle or
for products with short life cycles

• Automation needs to be viewed as another capital investment decision & Financial payback
is critical

For all these reasons, automation is typically less present in intermittent than in repetitive
operations.
 1. Power Sources
(To Operate)

2. Program Instructions
(To Direct the process)

3. Control System
(To Actuate the instructions)

1. Power Sources: To perfom the tasks and

to drive both and control (Ex : Elcetric
Power…)
2. Program Instructions: To perform set of
tasks accomplished by an Automatiion
System
3. Control System: To execute the program
instruction and make the process to carry
out the manufacturing operations
 1. Power Sources:

• Widely available at moderate cost

• Can be converted into various forms (Mechanical. Thermal, Light…)

• Less power can be used for Data Processing, Communication…

• Can be also stored in Long-Life Batteries

1. Power Sources:

(for the Process ):

• To Drive the Process

• To Load and Unload the Work Unit

• Transport between operations

(for the Automation ):

• To the Controller Unit

• To Actuate the Control Signals

• Data acquisition & Information Processing

2. Program Instructions:

• Set of commands that specify the sequence of steps in the work cycle and the details of each
step

• Example: CNC Program

• During each step, there are one / more activities involving changes in one / more process
parameters (Temperature setting, Axis position, On/off of Motor…)

3. Control Systems:

(a) Closed- Loop (Feedback)

Control System:

• A system in which the output variable is compared with an input parameter

 3. Control Systems:

(b) Open – Loop Control System

• A system operates without the Feedback Loop

• Simple & Less Expensive

• Risk when the Actuator will not have the intended efect

• One normally associates automation with the individual production machines - however, the
production machine itself made up of subsystems that may themselves be automated.

• The concept of automated systems can be applied to various levels of factory operations

• Identify Five possible levels (Hierarchy) of Automation in a production plant :

 …LEVELS OF AUTOMATION IN
FACTORY OPERATIONS
• Identify Five possible levels (Hierarchy) of
Automation in a production plant :
Corporate
Level5. ENTERPRISE LEVEL information System

Production System
Level4. PLANT LEVEL
Manufacturing
Level3. CELL / SYSTEM LEVEL System – Group of
Machines

Level2. MACHINE LEVEL Individual

Machines

Level1. DEVICE LEVEL Sensors, Actuators

& Other Hardware
Elements

1. DEVICE LEVEL:

• This is the lowest level in our automation hierarchy

• It includes the actuators, sensors, and other hardware components that comprise the
machine level

• The devices are combined into the individual control loops of the machine; Example, the
feedback control loop for one axis of a CNC machine or one joint of an industrial robot.

2. MACHINE LEVEL:

• Hardware at the device level is assembled into individual machines

• Example include CNC machine tools and similar production equipment, industrial robots,
powered conveyors, and automated guided vehicles

Control functions at this level include performing the sequence of steps in the program of
instructions in the correct order and making sure that each step is properly executed

3. CELL / SYSTEM LEVEL:

• This is the manufacturing cell or system level, which operates under instructions from the
plant level

• A manufacturing cell or system is a group of machines or workstations connected and

supported by a material handling system, computer and other equipment appropriate to the
manufacturing process
 • Production lines are included in this level

• Functions include part dispatching and machine loading. coordination among machines and
material handling system, and collecting and evaluating inspection data..

4. PLANT LEVEL:

• This is the factory or production systems level

• It receives instructions from The corporate Inforrnation System (IS) and translates them into
operational plans for production

• Likely functions include: Order Processing, Process Planning, Inven tory Control, Purchasing,
Material Requirements Planning, Shop Floor Control, and Qualiry Control….

5. ENTERPRISE LEVEL:

• This is the highest level consisting of the Crporate Information System

• It is concerned with all of the functions necessary to manage the company: Marketing and
Sales, Accounting, Design, Research, Aggregate Planning, and Master Production
Scheduling….

You may also refer : https://petrowiki.org/Levels_of_automation

• https://www.ergonomicsblog.uk/levels-of-automation/

• https://blog.commerceiq.ai/the-five-levels-of-automation

• Software, which automate the process of keeping a manufacturing line supplied with
materials to meet incoming orders.

• “ERP is a suite of applications including financial, manufacturing, human resources and

other modules, that together automate the back-office business administration functions
of an enterprise.”

• Leading ERP Vendors: SAP, Oracle, Peoplesoft and JD Edwards

• The purpose of ERP is to facilitate the flow of information between all business functions
inside the boundaries of the organization and manage the connections to outside
stakeholders
• The term ERP derived as an extension of Material Requirements Planning (MRP), later
Manufacturing Resource Planning and Computer- Integrated Manufacturing(CIM)in earlier
days
• By the mid–1990s ERP systems addressed all core functions of an enterprise

Major Application Components of

ERP

Production
Planning

Integrated
Sales Distribution, Customer / Logistics
Order
Employee
Management

Human Accounting &

Resources Finance

ERP - Functional Areas:

The following are common functional areas

covered in an ERP System:
• Financial Accounting : General Ledger, Fixed Asset, Payables, Receivables, Cash
Management, Financial Consolidation…
• Management Accounting : Budgeting, Costing, Cost Management, Activity Based Costing …
• Human Resources: Recruiting, Training, Payroll, Benefits, Retirement, Separation …

• Manufacturing: Bill of Materials, Work Orders, Scheduling, Capacity, Workflow Management,

Quality Control, Manufacturing Process, Manufacturing Projects, Manufacturing Flow,
Product Life Cycle Management…
• Supply Chain Management: Supply Chain Planning, Supplier Scheduling, Purchasing,
Inventory, Product Configuration…
• Project Planning: Resource Planning, Project Costing, Work Break Down Structure, Billing,
Time and Expense, Performance Units, Activity Management …
• Customer Relationship Management: Sales and Marketing, Commissions, Service, Customer
Contact, Call Center Support …
• Data Services: Various "self–service" interfaces for customers, suppliers and/or
employees …
• Access Control: Management of user privileges for various processes…
 Benefits of ERP:
• Quality & Efficiency: ERP integrates & improves companies internal business process
• Decreased Cost: Transaction Processing Cost
• Decision Support: ERP provides Cross-Functional Information on business performance
• Enterprise Agility: ERP Creates more flexible and adaptive (Agile) organization & workforce

Costs of Implementing ERPs:

Hardware
12 %

Re- Software
Engineer
ing 43 % 15 %
Training
&
Data Change
Conver Mgt.
sion 15 %
15 %
ERP Failures:

• Complexity of Planning, Development & Training - needed to prepare for new ERP

• Non – Participation of employees in Planning, Development & Change Management

Program

• Too much too fast conversion process

• No enough Tests , Data Conversions , sufficient training with the new tasks

• Overreliance of the company on IT Vendors…

Trends in ERP Applications – Evolution:

• Stage I : 1990s – Inflexible – Modified as Flexible - product – Made easier to

integrate with other application programs

 Stage II:Growth of Internet, Intranet, Extranet forces IT companies to enable web based
design of applications; Web enabled links to Customers, Suppliers, Distributors…

 Stage III: Internal facing ERP applications

 Stage IV: Some ERP suites disassemble ERP components and assemble with other modules,
instead of separate applications for each function