WEEK 04C – PROCESSES AND TECHNOLOGY (CH 6) Process types and selection, automation, line balancing SJSU Bus David Bentley1

Outsourcing Decision What business do you want to be in? Vertical integration Horizontal integration Focused factories Proprietary concerns Concerns about capacity, quality, timing, expertise Make or buy analysis Choose lowest BEP between alternatives SJSU Bus David Bentley2

Make or Buy Analysis Q BEP = c f / (p – c v ) where c f = fixed cost p = unit price c v = variable cost Example: c f = $5,000/mo, p = $9, c v = $7 Q BEP = 5000 / (9 – 7) = 2500 units SJSU Bus David Bentley3

Process Selection Production environment (or type of operations or process types) Project Batch (or Job or Process or Intermittent) Mass (Repetitive or Assembly) Continuous (Flow or Product) Volume, mix, flexibility considerations SJSU Bus David Bentley4

Process Design Tools Process plans Specifications, assembly charts, BOMs, routings, drawings Process analysis Use of process flowcharts (from Ch 2) See text for steps SJSU Bus David Bentley5

Why Automate? SJSU Bus David Bentley6

Why Automate? 1. Reduce or eliminate labor cost??  Maybe 2. Apply only to high volume operations??  Not necessarily 3. Keep up with other CEOs at the Rotary Club??  No! 4. See ad and say: “Wow, I’ve got to have that!”??  No! SJSU Bus David Bentley7

Why Automate? 5. Quality Assures consistency, low variability 6. Rapid change Shortens setups and changeovers Reduces time to turnaround prototypes 7. Lower tooling cost Eliminates specialized tools and dies 8. Reduced labor cost SJSU Bus David Bentley8

Automation Concepts - 1 Machine control NC – numerical control CNC – computerized numerical control DNC – direct numerical control FMS – flexible manufacturing system CAM – computer aided manufacturing SJSU Bus David Bentley9

Automation Concepts - 2 Production scheduling CAS – computer aided scheduling Service CAI – computer aided instruction Warehousing AS/RS – automated storage and retrieval systems SJSU Bus David Bentley10

Automation Concepts - 3 Robotics (Industrial robots) Heavy use in auto industry Described in terms of number of axes of motion (up to 6) Arm sweep Shoulder swivel Elbow extension Pitch (wrist) Yaw (wrist) Roll (wrist) SJSU Bus David Bentley11

Automation Concepts – 4 CIM – computer integrated manufacturing Integrates all the preceding concepts MAP – manufacturing automation protocol Major development in U.S. auto industry SJSU Bus David Bentley12

Line Balancing Definitions Line balancing Balance work among production lines, or Balance tasks among workstations on 1 line Cycle time Materials Management: time from beginning of first operation until completion of last operation, or Industrial Engineering: time between completion of 2 units of product, or Line Balancing: Maximum time allowed at each workstation SJSU Bus David Bentley13

Line Balancing Tools Cycle time calculation Output capacity ( OC = OT / CT ) Where OT = Operating Time per day, CT = Cycle Time Cycle time ( CT = OT/D ) Where D = Desired output rate Precedence diagrams Similar to network diagram Measures of effectiveness Balance delay (% of idle time) Efficiency SJSU Bus David Bentley14