1. INNOVATIONS IN MANUFACTURING: Part 4
Summary and Discussions
“Principles of Manufacturing”
The Next Manufacturing Paradigm

2. Summary Importance of manufacturing to a nation’s economy and wealth
Today’s mantra in manufacturing is “responsiveness”
Select principles for manufacturing system
In this session, I will summarize what we have discussed in the previous three modules, and synthesize what we learned into a few principles of manufacturing, then finally discuss what the next paradigm will be for manufacturing.
We understand now manufacturing is one of the few industries that truly create wealth. It provides high quality jobs and through these jobs, distribute the wealth.
To compete in a global environments, manufacturers must be responsive, responsive in developing products, and develop responsive manufacturing systems for these products.
Now I want to see if we can synthesize a few principles of manufacturing. Some of you may think such

3. Discussion Principles of Manufacturing Systems
Economy of scale vs. economy of scope
Interchangeability
Delaying differentiation
Reducing complexity
Continuous improvement
Economy of scale for mass production: as the volume increases, piece cost goes down because tools, equipment etc are considered fixed cost.
In mass customization, assembly has very high variety and the scope of the products are broad. Economy of scale is achieve at the component level.
In mass production, interchangeability allowed the mass production and moving assembly line.
In mass customization, interchangeability is at the module level. Modular design of the assembly is a necessity for mass customization.
Delaying differentiation: common components and assembly should be done first, with the differentiating features added as late as possible. This allow sharing of the common modules in the WIP, reducing inventory cost. Delaying differentiation also make the system more responsive, i.e., changes in customer orders can be made at the last moment.
Management of complexity is very important when the number of variety is high. Proper sequencing of the assembly operations, commonization of components and tools all help reduce complexity.
Finally, continuous improvement: reduction of variation is a never ending process. We must continue to work on the product design, making it robust, and working on process variation reduction.

4. The Next Paradigm

5. The Next Paradigm Volume per model Variety 1955 Lean MFG 1980 Mass
production
customization
Mass
The next Paradigm???
1913
Craft production
1850
Variety

6. Model-T Production (Highland Park:~1910)
Mass Production
Model-T Production (Highland Park:~1910)
Turn of the Century Ford and the car
Pre-1912
20-30 per day
1913
100 per day
1914
1000 per day
1915
3000 per day
Interchangeable parts
Moving assembly lines
Division of labor/Scientific management
Vertical integration
Let’s revisit a few paradigms of manufacturing in terms of
Role of the consumer in design and manufacturing?
What is the enabling manufacturing system
Cost variety benefits?
What is the role of the consumer? No much except in the buying process. Manufacturers design and manufacture the products in large quantity and consumers buy them at cost effective prices.
What is the enabling manufacturing system? Dedicated manufacturing system.

7. Mass Customization
Mass customization is the production of customized products at near-mass production cost.
In mass customization, manufacturer defines architecture, modules and variants. Consumers choose combination.
Total # of build combinations
2×3×5×2×126×126×2×2×5
= 19,051,200
Role of the consumer in design and manufacturing?
What is the enabling manufacturing system
Cost variety benefits?
How is mass customization achieved?
Through combinations.
What is the role of the consumer?
What types of manufacturing systems enable mass customization? Reconfigurable manufacturing systems
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8. Personalization
A new paradigm of creating and realizing innovative products tailored to the individual needs and preferences of consumers.
Consumers drive the conceptualization, design, manufacturing and assembly of personalized products.
Personalization requires new responsive manufacturing systems.

9. Enabling Technologies for Personalization
Personalization Design:
Design for consumers
Design by consumers – “everyone is a designer”
Cyber-Physical Systems to support Personalization
Integration of virtual and physical models
Collaboration
Personalization Production Systems

10. Comparison of Paradigms
Craft Production
Mass Production
Mass Customization
Personalization
Open Product Architectures? No
Yes
Individual Consumer Influences Design?
Reasonable Cost for the “masses”?
Production System
Manual
Dedicated Systems
Reconfigurable Systems
Personalized-Production Systems
Weakness
Strength