Session 1: Intro to Manufacturing

Wealth creation and Value to the Customer.

The worth of an item, good, or service. And what the customer is willing to pay for.

• 1 human rights
• 2 labor practices
• 3 environment
• anti-corruption

• human rights
• non-compllicity in human rights abuses
• freedom of association and unions
• eliminate slavery
• abolish child labor
• eliminate discrimination
• environmental challenges
• greater environmental responsibility
• environmentally friendly technologies
• work against corruption

• 1 defining products and customers
• 2 designing products and processes
• 3 managing material flow
• 4 providing customer service and support

• 1 choice of manufacturing environment
• 2 choice of manufacturing process

• 1 meet customer needs and provide value
• 2 be cost effective
• 3 provide quality
• 4 be build of provided efficiently
• 5 accommodate planning parameters

• 1 material acquisition
• 2 manufacturing
• 3 distribution

• 1 scheduling
• 2 production

Products returned from customers to suppliers from the purpose of repair, recycling, or remanufacturing.

• 1 understanding customer desires 
• 2 two-way communication (Hp vs IBM IM pop-up)
• 3 working with customers to solve problems

customer relationship management.

• Global competition
• Economic, government, and regulatory influences
• Customer expectations
• Corporate social responsibility

Operating environment.

• Cost (price)
• Quality
• Speed (order lead time)
• Dependability
• Flexibility (product and volume)

• Engineer-to-order (ETO)
• Make-to-order (MTO)
• Assemble-to-order (ATO)
• Make-to-stock (MTS)
• Mass customization

Production environment and manufacturing strategy.

• Lead time expectations (ETO)
• Product design input from customers
• Product volume and variety (MTS)
• Product life cycle

Mass customization.

• ETO * Introduction
• MTO * Growth
• MTS * Maturity
• MTO * Decline
• NONE * Phase-out

• Intermittent
• Flow
•      - repetitive/line
•      - continuous
• Project

A setup that only makes things once or infrequently, like a "job shop", or "machine shop".

• Intermittent lot or batch production
• Work moves only to required stations
• Many different parts processed at workstations
• General-purpose machinery
• Relatively easy to change product or volume
• Complex and expensive production and inventory control
• High WIP inventory levels; long lead time

• Equipment and operations are grouped together by functional specialty
• There are similar types of skills and equipment in each department
• Volume is not high enough to justify assembly line

• Process layout
• Functional layout
• Job shop layout

• Workstations are in the sequence needed to make the product
• Work flows at a nearly constant rate
• There is little WIP inventory

• Layout is called product layout
• There are fixed routings and dedicated machinery
• The process is capital intensive
• There are two types of flow: repetitive (line) and continuous
• Repetitive produces discrete unites, such as cell phones and automobiles
• Continuous produces non-discrete products, such as liquids
• There is a limited range of similar products
• High product volumes occur

• Little WIP inventory
• Short througput and manufacturing lead times
• Lower unit cost

Repetitive (or line) and continuous.

A process that involves transforming raw materials into products such as gasoline, flour, sugar, and steel by the use of mixing, chemicals, heating, cooling, or pressure.

• Used for large, complex projects
• Project remains in one location for assembly
• Product made at one site
• Avoids cost of moving the product

• suppliers
• producers or manufacturers
• distributors
• retailers
• consumers
• flow of information, cash, and goods and services

• Purchasing
• Production
• Distribution

• Develop products and services
• Manage procurement
• Produce products
• Manage distribution
• Perform marketing and sales

How well the processes operate depends on how well the interests and performance measures of each of the functional players are balanced in the interests of the organization at large.

How well the processes operate depends on how well the interests and performance measures of each of the functional players are balanced in the interests of the organization at large.

A cross-functional view.

The value chain.

Processes that technically are not primary value-adding processes, but nonetheless are very important.

• Sales and operations planning
• Clear responsibility for the materials management function
• Productivity systems such as lean, quality systems, and theory of constraints

Key performance indicators.

• Strategic
• Tactival
• Operational

• Customer perspective
• Business process perspective
• Financial perspective
• Innovation and learning perspective

They measure the long-term goals of a business.

• profitability
• market share
• growth
• productivity

They measure intermediate-term goals and objectives to support the organization's strategic plan.

• adherence to production plans and budgets
• percentage of on-time delivery
• inventory turns

They measure daily work routines.

• work-center cycle times
• utilization
• efficiency

An organizational tool for assessing performance against KPIs for a certain time period.

• Manufacturing Planning and Control (MPC)
• Physical Supply and Distribution.

Managing the purchasing and control of production materials, controlling WIP, and controlling the storage, shipping, and distribution of the finished product.

Chain manager and logistics manager.

• What are we going to make?
• What does it take to make it?
• What do we already have?
• What must we get and when?

• PRODUCING THE RIGHT GOODS:
• of the right quality
• in the right quantities
• at the right time
• at the right price

The MPC Hierarchy Chart.

• Recognize demand
• Plan the resources required
• Execute and control production

MRP establishes the priority plan for the due dates and order quantities for the components of end items.

The needs of the production and purchasing departments.