CAD vs CAM

CAD and CAM are important tools in designing and manufacturing. Before the advent of computers and especially PC in the eighties, draftsmen performed important role in designing in companies. But computers changed the scenario completely. Their affordability and versatility allowed engineers to do drafting on their own. Today hand drafting for designing has become obsolete and the days of compasses and protractors are virtually over. CAD and CAM are important terms in the field of design and manufacture and refer to Computer Aided Design and Computer Aided Manufacture respectively. CAD CAD is the use of computers for designing in simple language. It is also known as CADD, which stands for computer aided design and drafting. In CAD, a wide range of computer based tools are used to assist engineers, architects and other design professionals in their design activities. Originally CAD referred to computer aided drafting as it was a replacement of traditional drafting board. But today it is called designing to reflect the fact that much more can be done with the help of computers besides just drafting. CAD is usually employed when simple drafting is not able to do the job such as in design of automobiles, airplanes, ships and other industrial designs. CAM CAM is the use of computer based tools that assist engineers, tool and die makers and CNC machinists in the manufacture and prototyping of product components. While CAD has many functions that do not necessarily involve CAM, the same cannot be said about CAM, and in general, CAM is heavily dependent upon CAD. Difference between CAD and CAM CAD and CAM are both part of an over all important process that is referred to as computer aided engineering (CAE). CADS and CAM have similar advantages and they render items in 2D or 3D. Both CAD and CAM help in quick processing and production of any design that is conceptualized by a scientist. Most of the CAM machines have inbuilt CAD software. The major difference between CAD and CAM lies in the end user. While CAM software is mostly used by an engineer, CAM is used by a trained machinist. These machinists are highly skilled and are equivalent to a computer engineer. Summary CAD refers to Computer Aided Design, while CAM stands for Computer Aided Manufacture. CAD and CAM have revolutionized the way things are designed and manufactured. CAD and CAM are heavily dependent upon each other.

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Standardization is the process of developing and implementing technical standards. The goals of standardization can be to help with independence of single suppliers (commoditization), compatibility, interoperability, safety, repeatability , or quality. In social sciences, including economics, the idea of standardization is close to the solution for a coordination problem, a situation in which all parties can realize mutual gains, but only by making mutually consistent decisions. Standardization is defined as best technical application consentual wisdom inclusive of processes for selection in making appropriate choices for ratification coupled with consistent decisions for maintaining obtained standards. This view includes the case of "spontaneous standardization processes", to produce de facto standards.
Contents
[hide]

1 Usage 2 Techniques 3 Other uses 4 Types 5 Further reading 6 See also 7 References

[edit]Usage Standardization is the process of establishing a technical standard, which could be a standard specification, standard test method, standard definition, standard procedure (or practice), etc. The existence of a published standard does not necessarily imply that it is useful or correct. Just because an item is stamped with a standard number does not, by itself, indicate that the item is fit for any particular use. The people who use the item or service (engineers, trade unions, etc) or specify it (building codes, government, industry, etc) have the responsibility to consider the available standards, specify the correct one, enforce compliance, and use the item correctly. Validation of suitability is necessary. Standardization is implemented greatly when companies release new products to market. Compatibility is important for products to be successful; many devices

coming out have USB, Ethernet, or other standard types of connection. This allows consumers to use their new items along with what they already own. By using standardization, groups can easily communicate through the set guidelines, in order to maintain focus. The method is made to facilitate processes and tasks; this is why it interlocks with lean manufacturing. [edit]Techniques There are typically four different techniques for standardization

Simplification or variety control Codification value engineering / value analysis Statistical process

[edit]Other

uses

In statistics, standardization refers to conversion to standard scores. In test theory, standardization refers to measurements or assessments conducted under exact, specified, and repeatable conditions. In supply chain management, standardization refers to approaches for increasing commonality of either part, process, product or procurement. Such change will enable delayed making ofmanufacturing or procurement decisions, thus reducing variability found in having many non-standard components. From a New institutional economics point of view, standardization process starts with a social problem known as "coordination dilemma". Standards, as "voluntary norms", serve to facilitate the resolution of coordination dilemmas and realize mutual gains; then standard refer also to a kind of social dilemma solution.

[edit]Types Types of standardization process:

Emergence as de facto standard: tradition, market domination, etc. Written by a Standards organization:

in a closed consensus process: Restricted membership and often having formal procedures for due-process among voting members in a full consensus process: usually open to all interested and qualified parties and with formal procedures for due-process considerations.

Written by a government or regulatory body Written by a corporation, union, trade association, etc

A bill of materials (sometimes bill of material or BOM) is a list of the raw materials, sub-assemblies, intermediate assemblies, sub-components, components, parts and the quantities of each needed to manufacture an end product. No physical dimension is described in BOM[1][2] It may be used for communication between manufacturing partners,[3] or confined to a single manufacturing plant. A BOM can define products as they are designed (engineering bill of materials), as they are ordered (sales bill of materials), as they are built (manufacturing bill of materials), or as they are maintained (service bill of materials). The different types of BOMs depend on the business need and use for which they are intended. In process industries, the BOM is also known as the formula, recipe, or ingredients list. In electronics, the BOM represents the list of components used on the printed wiring board or printed circuit board. Once the design of the circuit is completed, the BOM list is passed on to the PCB layout engineer as well as component engineer who will procure the components required for the design. BOMs are hierarchical in nature with the top level representing the finished product which may be a subassembly or a completed item. BOMs that describe the sub-assemblies are referred to as modular BOMs. An

example of this is the NAAMS BOM that is used in the automative industry to list all the components in an assembly line. The structure of the NAAMS BOM is System, Line, Tool, Unit and Detail. The first hierarchical databases were developed for automating bills of materials for manufacturing organizations in the early 1960s. At present this BOM is used as a data base to identify the many parts and their codes in automobile manufacturing companies.[4] A bill of materials "implosion" links component pieces to a major assembly, while a bill of materials "explosion" breaks apart each assembly or sub-assembly into its component parts. A BOM can be displayed in the following formats: A single-level BOM that displays the assembly or sub-assembly with only one level of children. Thus it displays the components directly needed to make the assembly or sub-assembly.[5] An indented BOM that displays the highest-level item closest to the left margin and the components used in that item indented more to the right.[1] Modular (planning) BOM A BOM can also be visually represented by a product structure tree, although they are rarely used in the workplace.[1]

[edit]

Getting Started: BOM Procedure

The ABC Lamp Company product line example from Fogarty, Blackstone, and Hoffmann (1991) illustrates the basic features of PROC BOM. The Part Master data set,PMaster0, displayed in Figure 2.1, contains the part master records for all items in the company. Each master record contains the part number (denoted by the Partvariable) and the part description (denoted by the Desc variable) for an item. It also contains data on unit of measure (denoted by the Unit variable) for the item. The Product Structure data set, ParComp0, displayed in Figure 2.2, contains all product structure records in the company. Each product structure defines a parent-component relationship. The Parent variable contains the part number for the parent item and the Component variable contains the part number for the component. The QtyPer variable contains the quantity per assembly for the parent-component relationship. The values for the Parent and Component variables are linked by the value of the Part variable in the Part Master data set to define the parent-component relationship. For example, in the 11th observation of the data set ParComp0 (as displayed in Figure 2.2), the value '1100' for the Parent variable is linked to the first observation of the data set PMaster0 (as displayed in Figure 2.1), which provides the part description and unit of measure for the parent item. Similarly, the value of '2100' for the Componentvariable is linked to the eighth observation of the part master file providing the master data for the component. Therefore, the parent-component relationship that is represented in the 11th observation of the product structure data set, ParComp0, should be interpreted as: each finished shaft uses 26 inches of 3/8 steel tubing.

ABC Lamp Company

Part Master Data Set

Obs 1 2 3 4 5

Part 1100 1200 1300 1400 1500

Desc Finished shaft 6-Diameter steel plate Hub 1/4-20 Screw Steel holder

Unit Each Each Each Each Each

6 7 8 9 10 11 12 13 14

1600 1700 2100 2200 2300 A100 B100 LA01 S100

One-way socket Wiring assembly 3/8 Steel tubing 16-Gauge lamp cord Standard plug terminal Socket assembly Base assembly Lamp LA Black shade

Each Each Inches Feet Each Each Each Each Each

Figure 2.1: Part Master File (PMaster0)

ABC Lamp Company

Product Structure Data Set

Obs 1 2 3

Parent LA01 LA01 LA01

Component B100 S100 A100

QtyPer 1 1 1

4 5 6 7 8 9 10 11 12 13 14

B100 B100 B100 B100 A100 A100 A100 1100 1500 1700 1700

1100 1200 1300 1400 1500 1600 1700 2100 1400 2200 2300

1 1 1 4 1 1 1 26 2 12 1

Figure 2.2: Product Structure File (ParComp0)

The following code invokes PROC BOM to produce the indented bill of material for the product 'LA01' and the summarized parts list for the production plan in which 1 unit of'LA01' is planned in the current planning period (period 1).
/* Create the indented BOM and summarized parts list */ proc bom data=ParComp0 pmdata=PMaster0 out=IndBOM0 summaryout=SumBOM0; structure / part=Part parent=Parent component=Component quantity=QtyPer id=(Desc Unit); run;

The Indented BOM data set, IndBOM0, is displayed in Figure 2.3. This data set contains the indented bill of material for the product 'LA01'. Each record or observation in this data set contains product structure data: the part number for the parent item is contained in

the _Parent_ variable, the part number for the component is contained in the _Part_ variable, and the quantity per assembly is contained in the QtyPer variable. It also contains the part master data (Desc and Unit variables) from the Part Master data set for the component identified by the _Part_ variable. If a component is used in more than one parent item, it appears in multiple records. For example, the item 1/4-20 Screw (part number '1400') is used in both Base assembly (part number 'B100') and Steel holder (part number '1500'); this item occurs in records identified by the values 6 and 10 for the variable Part_ID.

ABC Lamp Company

Indented Bill of Material, Part LA01

_Lev el_ 0

_Pare nt_

_Pa rt_ LA0 1

Desc

Qty Per .

Qty_P rod 1

Unit

Paren _ID .

Part _ID 0

_Pro d_ LA01

Lamp LA Base asse mbly Finish ed shaft 3/8 Steel tubing 6Diame ter steel plate Hub

Eac h Eac h

LA01

B10 0

LA01

B100

110 0

Eac h

LA01

1100

210 0

26

26

Inch es

LA01

B100

120 0

Eac h

LA01

B100

130 0

Eac h

LA01

B100

140 0 S10 0 A10 0

1/4-20 Screw Black shade Socke t asse mbly Steel holder 1/4-20 Screw Oneway socket Wiring asse mbly 16Gaug e lamp cord Stand ard plug termin al

Eac h Eac h Eac h

LA01

LA01

LA01

LA01

LA01

A100

150 0 140 0 160 0

Eac h Eac h Eac h

LA01

1500

10

LA01

A100

11

LA01

A100

170 0

Eac h

12

LA01

1700

220 0

12

12

Feet

12

13

LA01

1700

230 0

Eac h

12

14

LA01

Figure 2.3: Indented Bill of Material (IndBOM0)

As discussed in the section "Overview: BOM Procedure", each indented bill of material can be illustrated by a family tree. In fact, each record in the Indented BOM data set corresponds to a node in this tree. Figure 2.4 displays the tree diagram for the indented bill of material in the IndBOM0 data set. Each tree node or record is uniquely identified by a sequence or ID number that is assigned to it by the procedure. The Part_ID variable contains this ID number for each record. The Paren_ID variable contains the sequence number for the parent node or parent record. A parent record for a given record is the record that defines the parent node of the node defined by the given record. For example, the parent record of record 6 in the data set IndBOM0 is record 1, while record 9 is the parent record of record 10. Record 0 has no parent record.

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Figure 2.4: Tree Diagram for the Bill of Material for LA01

The IndBOM0 data set contains other data: The _Level_ variable denotes the indenture level number for each node or record. The root node with the sequence number 0 is at level 0, and the level numbers increase as you look down the tree. The _Prod_ variable contains the part number of the end item. The Qty_Prod variable contains thequantity per product, that is, the quantity of the component identified by the _Part_ variable required to make one unit of

the end item 'LA01'. Note that in this particular example, the values of the Qty_Prod variable are identical to the values of the QtyPer variable. This is because the quantities per assembly for all the parent-component relationships are 1, except for relationships 'B100'-'1400', '1100''2100', '1500'-'1400', '1700'-'2200'. The components ('1400', '2100', and '2200') of these parent-component relationships do not have any subcomponents themselves. Figure 2.3, as well as Figure 2.4, shows that the Indented BOM data set lists all the records in depth-first order. This scheme lists tree nodes from top to bottom and from left to right. For example, item '1100' is listed directly after its parent, 'B100', and before items 'S100' and 'A100' (the right siblings of item 'B100'). Similarly, item '2100' is listed directly after item '1100' and before items '1200', '1300', and '1400'. Refer to Aho, Hopcroft, and Ullman (1983) for details about depth-first ordering. See the section"Indented BOM Data Set" for details regarding the records in this data set.

ABC Lamp Company

Summarized Parts List, Period 1

_Part_ 1100

Low_Code 2

Gros_Req 1

On_Hand 0

Net_Req 1

Desc Finished shaft 6Diameter steel plate Hub 1/4-20 Screw Steel holder One-way socket Wiring assembly

Unit Each

1200

Each

1300 1400

2 3

1 6

0 0

1 6

Each Each

1500

Each

1600

Each

1700

Each

2100

26

26

3/8 Steel tubing 16Gauge lamp cord Standard plug terminal Socket assembly Base assembly Lamp LA Black shade

Inches

2200

12

12

Feet

2300

Each

A100

Each

B100

Each

LA01 S100

0 1

1 1

0 0

1 1

Each Each

Figure 2.5: Summarized Parts List (SumBOM0)

The Summarized Parts data set, SumBOM0, is displayed in Figure 2.5. This data set, which has been sorted by the _Part_ variable, has a record for each item in the ABC Lamp Company's product line. Each record contains the part master data from the Part Master data set, PMaster0. The _Part_, Desc, and Unit variables contain the part number, part description, and unit of measure, respectively, for each item. It also contains some other data: The Low_Code variable denotes the low-level code of the item. The low-level code for an item is a number that indicates the lowest level in any bill of material at which this item appears. For example, item '1400' appears at levels 2 and 3 in this example; thus, its low-level code is 3. The low-level codes are necessary to make sure that the net requirement for a given item is not calculated until all the gross requirements have been calculated down to that level. The On_Hand variable contains the quantity of the item currently on hand. Since the part master file (as shown in Figure 2.1) does not contain any quantity on hand information, the procedure assumes that this variable is 0 for all items. The Gros_Req and Net_Req variables contain the gross and net requirements,

respectively. Again, since the PMaster0 data set does not provide any production plan information, PROC BOM assumes that the final product, 'LA01', is the only master schedule item and the gross requirement for this item is 1 unit. The net requirement for item 'LA01' is the gross requirement (1) minus the quantity on hand (0). The gross and net requirements of the other items are then calculated sequentially: 'B100' Base assembly (1 per lamp) Gross requirement (= net requirement of 'LA01' Quantity on hand Net requirement 1 quantity per assembly)

'1100' Finished shaft (1 per base assembly) Gross requirement (= net requirement of 'B100' Quantity on hand Net requirement 1 quantity per assembly)

'2100' 3/8 Steel tubing (26 inches per shaft) Gross requirement (= net requirement of '1100' Quantity on hand Net requirement 26 quantity per assembly)

If an item (such as item '1400' in this example) is used in more than one assembly, the gross requirement is the total needed in all assemblies where it is used. See the section "Summarized Parts Data Set" for details about determining the gross and net requirements. Recall that the Part Master data set (as shown in Figure 2.1) does not contain any quantity on hand and requirement information, and item 'LA01' is the only final product. Thus, in this example, the summarized parts list (as displayed in Figure 2.5) is actually the same as the

summarized bill of material for item 'LA01', with the gross (or net) requirement representing the total usage of each item.

TYPES OF PRODUCTION SYSTEM

The production system varies from factory to factory and from product to product. However, one of the most important issues is production volume. The most common type of production systems are:
1. 2. 3.

Job shop production Batch production Mass production

Further, a particular type of job shop situation is project production. Similarly, the mass production could be line (or flow production) and continuous production.
Methods of production Production is at the heart of all industry and is the process of using the resources of a firm to convert inputs into outputs, which are products or services desired by customers. Job production Job production is used to create one-off orders or jobs especially made for the purpose. This might be a relatively small job such as bespoke suit or a sandwich made to order in a caf, or it could be a massive job such as a cruise liner or the Arsenals new stadium. Job production helps ensure that the product or service matches the customers exact needs, as closely as the firm is able, because it is literally custom-made. In many cases, skilled or specialised staff make products of very high quality, or which have individual character that might have less appeal if they were mass-produced. Job production is a relatively expensive process because it requires specialised and

skilled staff who concentrate on the individual job or project. It is therefore labour intensive, although some projects such as the cruise liner may also need a lot of expensive capital equipment. Small businesses that are built on the skills of the owner, such as a window cleaner or a hairdresser, use job production techniques.

Batch production As the name suggests, products are produced in small or large batches. This process is useful to a firm that makes a number of different variations of basically similar products. Examples would include; a bakery, a car exhaust pipe factory or a toothpaste manufacturer. If the sandwich shop mentioned above wanted to speed up production, instead of making sandwiches to order, it might be able to benefit by making the days sandwiches in batches of all the different types and have them available for sale, pre-packed. A toothpaste manufacturer will set its weekly batches of production of each product according to the orders from the supermarkets and wholesalers. The same machinery is used for each product but the ingredients, packaging an/or size is changed for each batch as required. It is crucial that the machinery can be quickly cleaned and re-configured for each new batch to minimise unproductive time. In a factory that uses flow production (see below), it is quite common for component parts to be made in batches enough for a weeks production.

Flow production This is a production line method, where product is continuously produced, flowing from one stage of production to the next. Workers and, increasingly robots, carry out individual repetitive tasks aiming to work as quickly as possible without loss of quality. This is the method pioneered by Henry Ford for his Model T car, and the efficiencies he gained enabled him to produce large numbers of cars at low cost. Any product made in high volumes will almost certainly be made on a flow production line. This approach to production has close links with FW Taylor and his Scientific school of management Taylors motivational theories were all about creating the

workplace and forms of reward to maximise efficiency. This in turn led to very boring work and contributed to industrial unrest over the years where workers interests were overlooked. More modern, lean production techniques have at least partly recognised the fact that this type of work can be extremely boring, and ideas such as cell production and quality circles can help improve the workplace as workers become multi-skilled, take more responsibility for quality and can contribute their ideas for improvements. Flow production systems are typically capital intensive and it is important to keep them running smoothly with high levels of capacity utilisation, so that these high overhead costs are spread over as many units as possible. Once set up properly, flow production lines can in some cases produce millions of consistently high quality products. Cell production This is a form of flow production in which the line is separated into a number of sections, each looked after by a group of workers called a cell. Cells take responsibility for work in their area, such as quality, job rotation, training and so on. See notes on Lean Production for more detailed discussion of Cell Production.

PLANT LOCATION
Selecting the location of a facility is of strategic importance for any organization as it acts as the basis for determining the production technology and cost structure. For example, a manufacturing facility that is located in a less developed country will use a labor-intensive process, to cash in on the low cost labor and will have a different cost structure than the one located in a developed country. In the case of a developed country, the cost of labor will be high because the manufacturing process will be more capital intensive. Second, location decisions require huge financial investments and are not easily reversible in the short term. Third, the location of the facility affects the company's ability to serve customers quickly and conveniently. Major factors that influence plant location decisions are: Market proximity. Integration with other parts of the organization. Availability of labor and skills. Availability of amenities. Availability of transport. Availability of inputs. Availability of services. Suitability of land and climate.

Regional regulations. Room for expansion. Safety requirements. Site Cost. Political, Cultural and Economic Situation. Regional taxes, special grants and import/export barriers.

Major functions of production planning and control

A ll of the four basic phases of control of manufacture are easily identified in production planning and control. The plan for the processing of materials through the plant is established by the functions of process planning, loading, and scheduling. The function of dispatching puts the plan into effect; that is, operations are started in accordance with the plant. Actual performance is then compared to the planned performance, and, when required, corrective action is taken. In some instances re-planning is necessary to ensure the effective utilization of the manufacturing facilities and personnel. Let us examine more closely each of these functions. Major Functions of Production Planning and Control:
o o o o o o o

Loading Scheduling Combining Functions Dispatching Reporting or Follow up Corrective Action Re-planning

LESSON 8 PRODUCTION PLANNING AND CONTROL Abha Kumar STRUCTURE 8.0 Introduction 8.1 Objectives

8.2 Production management 8.3 Product design 8.4 Design of production system 8.4.1 Types of production system 8.5 Manufacturing process 8.5.1 Types of manufacturing process 8.5.2 Factors affecting the choice of manufacturing process 8.6 Production planning and control 8.6.1 Benefits to small entrepreneur 8.6.2 Steps of production planning and control 8.7 Summary 8.8 Glossary 8.9 Self-Assessment Questions 8.10 Further Readings 8.0 INTRODUCTION After taking decisions about the type of business, its location, layout etc. the entrepreneur steps into the shoe of production manager and attempts to apply managerial principles to the production function in an enterprise. Production is a process whereby raw material is converted into semi finished products and thereby adds to the value of utility of products, which can be measured as the difference between the value of inputs and value of outputs. Production function encompasses the activities of procurement, allocation and utilization of resources. The main objective of production function is to produce the goods and services demanded by the customers in the most efficient and economical way. Therefore efficient management of the production function is of utmost importance in order to achieve this objective. 115 8.1 OBJECTIVES

After studying this lesson, you should be able to Describe the production function and its component Define production management Analyze various factors, which are crucial for designing the production Explain the design of production system and manufacturing process List out the factors influencing the choice of production process Discuss the benefits, which a small entrepreneur can reap by having properly designed production planning, and control system 8.2 PRODUCTION MANAGEMENT Production system is a system whose function is to convert a set of inputs into a set of desired outputs. Production system is depicted under with help of chart

Figure 8.1: Production System Production management involves the managerial decisions regarding design of the product and design of the production system i.e. determination of production processes and production planning and control. 8.3 PRODUCT DESIGN Product design is a strategic decision as the image and profit earning capacity of a small firm depends largely on product design. Once the product to be produced is decided by the entrepreneur the next step is to prepare its design. Product design Inputs Conversion Process Outputs Land Building machines

labour capital management material other Goods services Control 116 consists of form and function. The form designing includes decisions regarding its shape, size, color and appearance of the product. The functional design involves the working conditions of the product. Once a product is designed, it prevails for a long time therefore various factors are to be considered before designing it. These factors are listed below: (a) Standardization (b) Reliability (c) Maintainability (d) Servicing (e) Reproducibility (f) Sustainability (g) Product simplification (h) Quality Commensuration with cost (i) Product value (j) Consumer quality (k) Needs and tastes of consumers. Above all, the product design should be dictated by the market demand. It is an important decision and therefore the entrepreneur should pay due effort, time, energy and attention in order to get the best results. 8.4 DESIGN OF PRODUCTION SYSTEM

Production system is the framework within which the production activities of an enterprise take place. Manufacturing process is the conversion process through which inputs are converted into outputs. An appropriate designing of production system ensures the coordination of various production operations. There is no single pattern of production system which is universally applicable to all types of production system varies from one enterprise to another. 8.4.1 TYPES OF PRODUCTION SYSTEM Broadly one can think of three types of production systems which are mentioned here under: (a) Continuous production (b) Job or unit production (c) Intermittent production (a) Continuous production: - It refers to the production of standardized products with a standard set of process and operation sequence in anticipation of demand. It is also known as mass flow production or assembly line production. This system ensures less work in process inventory and high product quality but involves large investment in machinery and equipment. The system is suitable in 117 plants involving large volume and small variety of output e.g. oil refineries reform cement manufacturing etc. (b) Job or Unit production: - It involves production as per customer's specification each batch or order consists of a small lot of identical products and is different from other batches. The system requires comparatively smaller investment in machines and equipment. It is flexible and can be adapted to changes in product design and order size without much inconvenience. This system is most suitable where heterogeneous products are produced against specific orders.

(c) Intermittent Production: Under this system the goods are produced partly for inventory and partly for customer's orders. E.g. components are made for inventory but they are combined differently for different customers. . Automobile plants, printing presses, electrical goods plant are examples of this type of manufacturing. 8.5 MANUFACTURING PROCESS The nature of the process of production required by these three different types of production system are distinct and require different conditions for their working. Selection of manufacturing process is also a strategic decision as changes in the same are costly. Therefore the manufacturing process is selected at the stage of planning a business venture. It should meet the basic two objectives i.e. to meet the specification of the final product and to be cost effective. 8.5.1 TYPES OF MANUFACTURING PROCESS The manufacturing process is classified into four types. (i) Jobbing production (ii) Batch production (iii) Mass or flow production (iv) Process Production (i) Jobbing Production: - Herein one or few units of the products are produced as per the requirement and specification of the customer. Production is to meet the delivery schedule and costs are fixed prior to the contract. (ii) Batch Production: - In this, limited quantities of each of the different types of products are manufactured on same set of machines. Different products are produced separately one after the other. 118 (iii) Mass or flow production: Under this, the production run is conducted on a set of machines arranged according to the sequence of operations. A huge quantity of same product is manufactured at a time and is stocked for sale. Different product

will require different manufacturing lines. Since one line can produce only one type of product, this process is also called as line flow. (iv) Process Production: Under this, the production run is conducted for an indefinite period. 8.5.2 FACTORS AFFECTING THE CHOICE OF MANUFACTURING PROCESS Following factors need to be considered before making a choice of manufacturing process. a) Effect of volume/variety: This is one of the major considerations in selection of manufacturing process. When the volume is low and variety is high, intermittent process is most suitable and with increase in volume and reduction in variety continuous process become suitable. The following figure indicates the choice of process as a function of repetitiveness. Degree of repetitiveness is determined by dividing volume of goods by variety.

One Figure 8.2: Types of Production Processes b) Capacity of the plant: Projected sales volume is the key factor to make a choice between batch and line process. In case of line process, fixed costs are substantially higher than variable costs. The reverse is true for batch process thus Jobbing Batching Line Process Degree of repetitiveness Quantity

Many 119 at low volume it would be cheaper to install and maintain a batch process and line process becomes economical at higher volumes. c) Lead time: - The continuous process normally yields faster deliveries as compared to batch process. Therefore lead-time and level of competition certainly influence the choice of production process. d) Flexibility and Efficiency: - The manufacturing process needs to be flexible enough to adapt contemplated changes and volume of production should be large enough to lower costs. Hence it is very important for entrepreneur to consider all above mentioned factors before taking a decision regarding the type of manufacturing process to be adopted as for as SSI are concerned they usually adopt batch processes due to low investment. 8.6 PRODUCTION PLANNING AND CONTROL Once the entrepreneur has taken the decisions regarding the product design and production processes and system, his next task is to take steps for production planning and control, as this function is essentially required for efficient and economical production. One of the major problems of small scale enterprises is that of low productivity small scale industries can utilise natural resources, which are otherwise lying. Small scale sector can play an important role, similar to the one played by small scale industries in other developed countries. Planned production is an important feature of the small industry. The small entrepreneur possessing the ability to look ahead, organize and coordinate and having plenty of driving force and capacity to lead and ability to supervise and coordinate work and simulates his associates by means of a programme of human relation and organization of employees, he would be able to get the best out of his

small industrial unit. Gorden and Carson observe production; planning and control involve generally the organization and planning of manufacturing process. Especially it consists of the planning of routing, scheduling, dispatching inspection, and coordination, control of materials, methods machines, tools and operating times. The ultimate objective is the organization of the supply and movement of materials and labour, machines utilization and related activities, in order to bring about the desired manufacturing results in terms of quality, quantity, time and place. 120 Production planning without production control is like a bank without a bank manager, planning initiates action while control is an adjusting process, providing corrective measures for planned development. Production control regulates and stimulates the orderly how of materials in the manufacturing process from the beginning to the end. 8.6.1 BENEFITS TO SMALL ENTREPRENEUR Production planning and control can facilitate the small entrepreneur in the following ways (1) Optimum Utilisation of Capacity: With the help of Production Planning and Control [PPC] the entrepreneur can schedule his tasks and production runs and thereby ensure that his productive capacity does not remain idle and there is no undue queuing up of tasks via proper allocation of tasks to the production facilities. No order goes unattended and no machine remains idle. (2) Inventory control: Proper PPC will help the entrepreneur to resort to just- in- time systems and thereby reduce the overall inventory. It will enable him to ensure that the right supplies are available at the right time. (3) Economy in production time:

PPC will help the entrepreneur to reduce the cycle time and increase the turnover via proper scheduling. (4) Ensure quality: A good PPC will provide for adherence to the quality standards so that quality of output is ensured. To sum up we may say that PPC is of immense value to the entrepreneur in capacity utilization and inventory control. More importantly it improves his response time and quality. As such effective PPC contributes to time, quality and cost parameters of entrepreneurial success. 121 8.6.2 STEPS OF PRODUCTION PLANNING AND CONTROL Production Planning and Control (PPC) is a process that comprises the performance of some critical; functions on either side, viz., planning as well as control. See figure 8.3. Figure 8.3: PPC Process Production planning: Production planning may be defined as the technique of foreseeing every step in a long series of separate operations, each step to be taken at the right time and in the right place and each operation to be performed in maximum efficiency. It helps entrepreneur to work out the quantity of material manpower, machine and money requires for producing predetermined level of output in given period of time. Routing: Under this, the operations, their path and sequence are established. To perform these operations the proper class of machines and personnel required are also worked out. The main aim of routing is to determine the best and cheapest Production Planning and control Production Planning Production Control

Planning Routing Scheduling Loading Dispatching Following up Inspection Corrective 122 sequence of operations and to ensure that this sequence is strictly followed. In small enterprises, this job is usually done by entrepreneur himself in a rather adhoc manner. Routing procedure involves following different activities. (1) An analysis of the article to determine what to make and what to buy. (2) To determine the quality and type of material (3) Determining the manufacturing operations and their sequence. (4) A determination of lot sizes (5) Determination of scrap factors (6) An analysis of cost of the article (7) Organization of production control forms. Scheduling: It means working out of time that should be required to perform each operation and also the time necessary to perform the entire series as routed, making allowances for all factors concerned. It mainly concerns with time element and priorities of a job. The pattern of scheduling differs from one job to another which is explained as below: Production schedule: The main aim is to schedule that amount of work which can easily be handled by plant and equipment without interference. Its not independent decision as it takes into account following factors. (1) Physical plant facilities of the type required to process the material being

scheduled. (2) Personnel who possess the desired skills and experience to operate the equipment and perform the type of work involved. (3) Necessary materials and purchased parts. Master Schedule: Scheduling usually starts with preparation of master schedule which is weekly or monthly break-down of the production requirement for each product for a definite time period, by having this as a running record of total production requirements the entrepreneur is in better position to shift the production from one product to another as per the changed production requirements. This forms a base for all subsequent scheduling acclivities. A master schedule is followed by operator schedule which fixes total time required to do a piece of work with a given machine or which shows the time required to do each detailed operation of a given job with a given machine or process. Manufacturing schedule: It is prepared on the basis of type of manufacturing process involved. It is very useful where single or few products are manufactured repeatedly at regular intervals. Thus it would show the required quality of each product and sequence in which the same to be operated Scheduling of Job order manufacturing: Scheduling acquires greater importance in job order manufacturing. This will enable the speedy execution of job at each center point. 123 As far as small scale industry is concerned scheduling is of utmost importance as it brings out efficiency in the operations and s reduces cost price. The small entrepreneur should maintain four types of schedules to have a close scrutiny of all stages namely an enquiry schedule, a production schedule, a shop schedule and an arrears schedule out of above four, a shop schedule is the most important most suited to the needs of small scale industry as it enables a foreman to see at a glance.

1. The total load on any section 2. The operational sequence 3. The stage, which any job has reached. Loading: The next step is the execution of the schedule plan as per the route chalked out it includes the assignment of the work to the operators at their machines or work places. So loading determines who will do the work as routing determines where and scheduling determines when it shall be done. Gantt Charts are most commonly used in small industries in order to determine the existing load and also to foresee how fast a job can be done. The usefulness of their technique lies in the fact that they compare what has been done and what ought to have been done. Most of a small scale enterprise fail due to non-adherence to delivery schedules therefore they can be successful if they have ability to meet delivery order in time which no doubt depends upon production of quality goods in right time. It makes all the more important for entrepreneur to judge ahead of time what should be done, where and when thus to leave nothing to chance once the work has begun. Production control: Production control is the process of planning production in advance of operations, establishing the extract route of each individual item part or assembly, setting, starting and finishing for each important item, assembly or the finishing production and releasing the necessary orders as well as initiating the necessary follow-up to have the smooth function of the enterprise. The production control is of complicated nature in small industries. The production planning and control department can function at its best in small scale unit only when the work manager, the purchase manager, the personnel manager and the financial controller assist in planning production activities. The production controller directly reports to the works manager but in small scale unit, all the three functions namely material control, planning and control are often performed by

the entrepreneur himself production control starts with dispatching and ends up with corrective actions. Dispatching: Dispatching involves issue of production orders for starting the operations. Necessary authority and conformation is given for: 1. Movement of materials to different workstations. 2. Movement of tools and fixtures necessary for each operation. 3. Beginning of work on each operation. 4. Recording of time and cost involved in each operation. 124 5. Movement of work from one operation to another in accordance with the route sheet. 6. Inspecting or supervision of work Dispatching is an important step as it translates production plans into production. Follow up: Every production programme involves determination of the progress of work, removing bottlenecks in the flow of work and ensuring that the productive operations are taking place in accordance with the plans. It spots delays or deviations from the production plans. It helps to reveal detects in routing and scheduling, misunderstanding of orders and instruction, under loading or overloading of work etc. All problems or deviations are investigated and remedial measurer are undertaken to ensure the completion of work by the planned date. Inspection: This is mainly to ensure the quality of goods. It can be required as effective agency of production control. Corrective measures: Corrective action may involve any of those activities of adjusting the route, rescheduling of work changing the workloads, repairs and maintenance of machinery or equipment, control over inventories of the cause of deviation is the poor performance of the employees. Certain personnel decisions like training, transfer, demotion etc. may have to be taken. Alternate methods may be suggested to handle peak loads.

CHECK YOUR PROGRESS Activity 1: Circle the key words, which do not belong to this lesson. Dispatching Plant Layout Inspection Productivity Index Loading Marketing Mix Activity 2: Match the following Routing Working out of time that should be required to perform each operation Scheduling To assign the work to the operations at machines or work place Loading To determine the best and cheapest sequence of operations Activity 3: Explain the meaning of following key words in your own words (a) Production planning (b) Production control (c) Routing (d) Scheduling 125 8.7 SUMMARY Small-scale industries have a challenge to manufacture products at economical prices. They need to embrace management principles surrounding production processes, which are effective for the products manufactured by them. An upfront planning and study of the critical factors of the manufacturing processes will not only help the small scale entrepreneurs to understand the steps they need to take in selecting the most appropriate manufacturing process but also help them identify areas of risk so that necessary control procedures are put in place. This will eventually help the small entrepreneur to eliminate the wastages and increase the production, productivity and profits. 8.8 GLOSSARY Inventory Stock of raw material, WIP or finished goods

Lead time Time lag between placing an order or getting deliveries Personnel Team of persons who work for organization 8.9 SELF-ASSESSMENT QUESTIONS 1. Discuss with examples various manufacturing processes? 2. What factors affect the choice of manufacturing process? 3. Write short notes on a. Production planning b. Relationship between production planning and control 4. What do you understand by production planning and control? Discuss its elements in brief. 5. State the requirements for an effective system of production planning and control? 6. What benefits can small scale enterprises can derive by installing an effective system of production planning and control?

Definition of MRP: "a time phased priority planning technique that calculates material requirements and schedules supply to meet changing demand across all products and parts in one or more plants" MRP is used to derive the master schedule from the forecast, the sales order or both. The master schedule is the foundation of all the operations, with MRP handling all the ordering and scheduling of the inventory (raw materials, components, etc). One big advantage of MRP is that it analyses and plans your future needs for all dependant demand items. If an item is not needed, you don't plan for it any more.

Components of an MRP system

The bills of material in tabular form show the product structure, which basically lists all the different component parts and sub-assemblies that make up product, showing the lead times and relationships between each components. The BOM diagrams show the same information as the bills of material but are represented in a diagrammatical sense. The MRP calculations are derived from the bills of material and the BOM diagrams. This tabular data represents the quantity of each component of the final product that is required and the current period of time that it is required for.

The MRP system outputs a variety of information that can be used by the company, both for the planning side and the management side of the factory operations. These outputs include order release notices for the placement of orders that may have been planned by the MRP simulator system. The capacity and master schedule need to be managed correctly to help reduce the workload and maximise the effectiveness. Management has a big responsibility in this and how they choose to plan ahead and how effective they are, will in turn effect their decisions on the right approach and how effective the MRP system is. If certain areas become stressed and overloaded, jobs may end up being pushed back past their due date and end up being late. Planning is very important to help the company become more efficient, reduce costs and increase profits. Information systems are a competitive tool when running along side traditional stock control systems. A computerised MRP system is reliant on the fact that the demand for low-level components is brought about from the production of an end product of which the production level is planned. The system itself will make it easy to put together the production schedule saving vast amount of money that would otherwise be spent on labour time to do the same activity. MRP does not take into account the level of capacity of what can or cannot be handled by the shop floor. MRP is best used in manufacturing companies with

products that have lots of assemblies and is based on what is to be sold, working backwards from a delivery date, using the just in time concept (JIT). If the MRP system is controlled and designed well, inventory levels can be reduced, by reducing the amount of work-in-progress (WIP). An MRP system improves customer service by reducing the amount of late orders, creates higher levels of productivity, and helps the company respond to changes in demand much quicker. If MRP is implemented correctly it has many benefits that will help improve productivity etc continuously. Here is a summary of the benefits below:

Reduced Inventory with fewer (none) shortages Improved Customer Service Improved Direct Labour Productivity Reduced Purchasing Cost Reduced Traffic Cost Reduced Obsolescence Reduced Overtime Having the numbers to run the business Having accountability throughout the organisation Improved Quality of Life

THE FIVE KEY FUNCTIONS OF PRODUCTION/OPERATION MANAGER. 1.*With the Planning & Production Manager, develop, direct the implementation of production business strategies and activities to enable the production to achieve output and quality objectives. 2.*Manage and Control the logistics function to ensure supplies of raw materials, finished goods, parts and accessories are available within required time frames and budgets. 3.*With the R&D Engineering Manager, develop, direct the the research & development/ engineering activities to ensure

products and techniques achieve business needs within the standards set by the market and the regulatory standards bodies. 4.*With the Warehouse and Distribution Manager, develop, direct and control the warehouse and distribution activities to ensure the efficient and economical utilisation of facilities for storing and distributing the finished goods. 5.*Wtih the Manufacturing Services Manager, develop, direct the implementation of manufacturing sustainability strategies/ actions plans and continuous improvement programs. Reporting the Operation/ Production Manager are *Planning/Production Manager, R & D Engineering Manager, Manufacturing Services Manager, Factory Services Manager, Warehousing/ Distribution Manager, &Demand Planning Manager. SCOPE. Primary Objective. *Direct and Control a variety of divergent functional business activities, including Manufacturing, R&D Engineering, Production, Logistics, Demand Planning, Manufacturing Services, Factory Services, to achieve optimum Productivity, Profitability and Effective use of the OPERATION's assets and human resources, within guidelines set by the Managing Director. Direct planning activities and provide leadership and guidance on the OPERATION. SPECIFIC ACCOUNTABILITIES *Manage and Control the logistics function to ensure supplies of raw materials, finished goods, parts and accessories are available within required time frames and budgets. *With the Planning & Production Manager, develop, direct the implementation of production business strategies and activities to enable the production to achieve output and quality objectives. *With the R&D Engineering Manager, develop, direct the the research & development/ engineering activities to ensure products and techniques achieve business needs within the standards set by the market and the regulatory standards bodies. *With the Demand Planning Manager, develop, direct and control

the supply activities to maximise the quality and reliability of raw materials, parts, accessories and finished goods. *With the Warehouse and Distribution Manager, develop, direct and control the warehouse and distribution activities to ensure the efficient and economical utilisation of facilities for storing and distributing the finished goods. *Wtih the Manufacturing Services Manager, develop, direct the implementation of manufacturing sustainability strategies/ actions plans and continuous improvement programs. *Wtih the Factory Services Manager, develop, direct the service operations and the factory warehousing management. MAJOR RESPONSIBILITIES. *Responsible for directing the operation/ PRODUCTION activities to ensure the current and future plans of the organization are met. *Report to the Managing Director on major PRODUCTION /operational issues and results. *Participates in group corporate planning and budgeting workshops. *Responsible for the implementation of Demand Flow Technology and Six Sigma systems. *Responsible for establishing PRODUCTION / operation Organization Structure / Management Process. *Responsible for the Implementation of Policies / Procedures throughout the PRODUCTION / Operation Department. *Responsible for recruitment /selection/orientation/training of senior personnel of the PRODUCTION / operation department. *Responsible for purchase of Capital goods/ PRODUCTION Operation equipments. *Responsible for maintenance of equipments. *Responsible for PRODUCTION /Operation Department Planning/ Budgeting. *Responsible for Cost Control Programs.

*Responsible for O H & S Implementation. *Responsible for Industrial Relations/ Union Negotiation. *Responsible for Security management. *Responsible for Building Maintenance. *Responsible for People Management. Ensure that personnel under his control have been inducted into COMPANY 's OHS induction program. *Take reasonable care for the health, safety and welfare of themselves and others whilst at work.

How to conduct a time study

Five steps for analyzing outpatient flow in your practice.
Jan 1, 2010
VETERINARY ECONOMICS

Consultant Pamela Stevenson, CVPM, says a time study is a great tool for analyzing outpatient flow in your practice. "It's one of the quickest and easiest ways to get a grip on an undefined problem," she says. Here's how to do it: 1. Inform the team. Employees need to know that this isn't a pointless exercise; it's a way to identify problems that keep your practice from offering the best service. What's more, team members' role in recording the data is crucialwithout accurate information, you can't pinpoint the best solutions. 2. Create time sheets. Set up a system for recording each client's reason for visiting the practice, the veterinarian he or she saw, and the time at different stages of the visit. 3. Conduct the study. During a two-week period, record the following for all clients who visit for practice services: the time of arrival, the time they enter an exam room, the time a doctor enters that exam room, the time the doctor leaves, and the time the client checks out. Create a sheet that travels with the client for team members to record these times. 4. Analyze the results. Once the study is complete, enter the data in an Excel spreadsheet, noting any problematic client wait times.

5. Develop a plan. Once you see what (and who) the problems are, gather the team together to brainstorm solutions. Develop target goals for your next time study in six months' time.

FIXED ORDER INTERVAL SYSTEM OR P-SYSTEM Inventory position is monitored at discrete point in time Once an order is placed at time t, another order can not be placed until (t + T), and the second order will not be filled until the lead time period has elapsed, at (t + T + L) Thus safety stock protection is needed for the lead-time L plus the order interval T In the fixed order size system, safety stock is needed only for the lead-time period, because the inventory position is monitored with each transaction In the fixed order size system, a higher than normal demand causes a shorter time between orders whereas in the fixed order interval system, the result would be a larger order size Predetermined inventory level (E) E = S + RT + LR Where S is the safety stock considering demand variation during (T + L) period and (RT + LR) is the average demand during (T + L) period The order interval (T) 2 0== HR FIXED ORDER QUANTITY SYSTEM OR Q-SYSTEM Safety stock is needed to protect against a stockout after the reorder point is reached and prior to receipt of an order This period is usually called lead-time The reorder point B is composed of the mean lead-time demand plus safety stock Average inventory level on hand just before the receipt of a replenishment order is the safety stock. Over many cycles, the inventory level will sometimes be more than the safety stock and sometimes less, but it should average to the safety stock Larger the order quantity, fewer the annual orders, which means the fewer opportunities for stockout to occur Safety stocks are dependent on stockout cost or service level, holding cost, demand variation and lead-time variation Working stock quantity is determined before considering safety stock In the order quantity formulations, it is assumed that the order quantity can be determined by an economic balance of the relevant cost, and that it is independent of the reorder point EOI in years Source(s): http://nitc.ac.in/nitc/bulletin/files/opt_25611_1877152227.pdf