Max Newbold: May 2004

MANUFACTURING SYSTEM GOVERNMENT TRAFFIC CONDITIONS MARKET DEMAND POLUTIONSOCIAL EXPECTATIONS PRODUCT DESIGN ETHNIC GROUPS ALL THING THAT AFFECT SOCIETY AFFECT MANUFACTURING

WITHIN THE MANUFACTURING SYSTEM Plant and Equipment Operators and Assembly Staff QA and QC Maintenance Planning (MPC System) Manufacturing Engineering OUTSIDE THE MANUFACTURING SYSTEM The Market The Design Process Other Social Environmental Factors

PURPOSE OF THE MANUFACTURING SYSTEM To support the demand made on the business unit by the market BY MEETING THE COMPETATIVE FACTORS THE MARKET DEMANDS Quality of Manufacture Delivery Reliability Delivery Speed Cost of Manufacture

From a manufacturing perspective two factors that have an impact on the system efficiency are: MARKET DEMAND PRODUCT STRUCTURE

THE MARKET’S INFLUENCE ON MANUFACTURING BEHAVIOUR Predictability Variability Volume of Demand COMPETITION Delivery Speed Delivery Reliability Cost Quality UNCERTAINTY TO STAY IN BUSINESS

THE PRODUCT’S INFLUENCE ON MANUFACTURING STRUCTURE BOM Width BOM Depth BOM Shape Total Number of Parts STABILITY Number of Changes

THE MARKET THE PRODUCT SETS THE DEMAND ON THE MANUFACTURING SYSTEM

COMPETITION BASED ON COST OR SEVICE? Delivery Speed Vs Price (Porter 1980) Within a Market Segment Price is a Competitive Issue (Schoeder et al 1995) COST IS A MAJOR MANUFACTURING CONCERN

REDUCING COSTS Increase labour utilisation Increase machine utilisation Increase batch size INCREASE SEVICE Decrease labour utilisation Decrease machine utilisation

Basic Work Content Design Defect Wrong Methods Ineffective Time Management Ineffective Time Worker A BCD Total Work Content Total Operational Time

THE MARKET Variability Predictability Interact to create uncertainty in manufacturing MANUFACTURING Quality Machine Reliability Labour Loading Batch Sizes

Materials do not arrive on time: Market and Internal Lost machine and labour time Creation of a lumpy flow Resources mis-directed: Market Making product that may not be needed RESULT: Lower Service Level: Reliability and Speed of Delivery Higher Manufacturing Costs

BUFFERING WITH STOCK WIP Finished Goods BUFFERING WITH TIME Increasing Lead-time REDUCE PART COMPLEXITY As uncertainty increases then buffering can create increased uncertainty. Part Complexity needs managing if it is not to increase uncertainty

MANUFACTURING TO RESPOND TO UNCERTAINTY Organisations that manufacture to order (MTO) or where the product mix is large with respect to volume buffering with stock is either impossible or uneconomically. Moving to a responsive manufacturing system also has economic benefits from lower finished and WIP stocks.

FACTORS THAT AFFECT RESPONSIVENESS 1.Batch Sizing 2.Machine & Process flexibility 3.Labour Flexibility: Ability to move people 4.Part commonality 5.Plant structure 6.Capacity Utilisation

Variability Low High Predictability Low High Uncertain environment System must be responsive to conditions Certainty Exists Choice between a responsive system or buffering Stable Environment LEVEL OF UNCERTAINTY IN SYSTEM Developed from Newman & Sriharam (1995) Integrated Manufacturing Systems vol.6 no.4 pages THETHE THE LEVEL OF UNCERTAINTY WILL INFLUENCE THE CHOICE

Market Definition 1Behaviour 2Competitive Factors Product Definition 1Complexity 2Stability Determines Demand on the Manufacturing System Plant Definition 1Flow Type 2Layout Type MPC System Definition 1Planning 2Scheduling 3Control Decision Variables: Batch Sizing; Labour Flexibility; Maintenance Policy, Quality and Rework Methods Inter-Relationship Model

The plant can be defined by it’s structure and flow FLOW: Continuous: The flow is an unbroken line of discrete or non-discrete product Intermittent: Product is accumulated processed in defined batches or lots. STRUCTURE: Flow Lines: The machines or work stations are set out according to a pre-determined path. Functional: The machines or work centres are grouped according to the activity performed

Up to seven different levels of the MPC can be defined from the texts. However from a practical point three levels are required. PLANNING: This consists of the MPS (Master Production Schedule), which plans the capacity requirement, raw materials, stock levels and timing of supplies and sub- assemblies. SCHEDULING / SEQUENCING: This is a detailed plan of the time of the release of material to the plant or specific work centre CONTROL: Ensuring the stated schedule and stock targets are being met.

THE SOLUTION CAN ONLY BE FOUND BY: ANALYSIS OF:THE MARKET THE PRODUCT THIS DETERMINES THE MPC SYSTEM AND PLANT REQUIREMENTS DECEASE LABOUR AND MACHINE REQUIREMENTS TO DECREASE COST AND IMPROVE SERVICE LEVELS