Chapter 6 Product Design & Process Selection-Manufacturing

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Product Design & Process Selection-Manufacturing

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Presentation transcript:

Chapter 6 Product Design & Process Selection-Manufacturing Types of Processes Process Flow Structures Process Flow Design

Types of Processes Conversion Fabrication Assembly Testing

Process Flow Structures Job shop Batch shop Assembly Line Continuous Flow

IV. Continuous Flow III. Assembly Line II. Batch I. Job Shop Low Volume, One of a Kind Multiple Products, Volume Few Major Higher High Standard- ization Commercial Printer French Restaurant Heavy Equipment Coffee Shop Automobile Burger King Sugar Refinery )

Break-Even Analysis A standard approach to choosing among alternative processes or equipment Model seeks to determine the point in units produced (and sold) where we will start making profit on the process or equipment . 14

Break-Even Analysis (Continued) Break-even Demand= Purchase cost of process or equipment Price per unit - Cost per unit or Total fixed costs of process or equipment Unit price to customer - Variable costs per unit This formula can be used to find any of its components algebraically if the other parameters are known 14

Break-Even Analysis (Continued) Example: Suppose you want to purchase a new computer that will cost $5,000. It will be used to process written orders from customers who will pay $25 each for the service. The cost of labor, electricity and the form used to place the order is $5 per customer. How many customers will we need to serve to permit the total revenue to break-even with our costs? What is Break-even Demand: 14

Manufacturing Process Flow Design A process flow design can be defined as a mapping of the specific processes that raw materials, parts, and subassemblies follow as they move through a plant The most common tools to conduct a process flow design include 15

Virtual Factory Defined A virtual factory can be defined as a manufacturing operation where activities are carried out not in one central plant,

Capacity Capacity - number of units produced per time period If 6 workers are employed for a process with 11 machines and each machine produces 25 parts per hour, what is the weekly capacity for a one shift operation? Answer: