Products and Processes14Introduction to MATERIALS MANA.docx
- 1. Products and Processes 14 Introduction to MATERIALS MANAGEMENT CHAPTER Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive Product Life Cycle Introduction Phase Expensive, risky with low sales volume Growth Phase Rapid increase in sales and profits, unsuccessful designs “forced out” Maturity Phase Sales “flatten”, prices/profits fall due to competition Decline Phase Both sales and profits tend to fall as product nears end of its “life”
- 2. Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive Life Cycle of a Product Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive Product Development Principles Simplification Cut waste by eliminating needless varieties, sizes, and types Remove unnecessary products and variations Standardization Develop a well-defined specification for material, configuration, etc. Many products use modularization – standardized parts for flexibility and variety Specialization – focus of efforts and design Product or market focus – serve a defined customer group Process focus – concentrate on a particular process Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive
- 3. Focused Factory Narrow product mix for niche market Repetiton and concentrated workforce and equipment in one area allow for advantages of specialization “Factory within a factory” An area in an existing factory set aside to specialize in a narrow product mix Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive Other Product Design Issues Product design: responsible for producing a set of specifications that manufacturing can use to make the product Products must be designed to be Functional Designed to perform as specified in the marketplace Capable of low-cost processing Must create design to minimize manufacturing costs Specifications, materials, tolerances, assembly Standardization Environmentally (“green”) sensitive Efficiently use resources Reduce consumption of energy Easily separated for reuse and recycling
- 4. Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive Simultaneous Engineering Concurrent (simultaneous) Engineering Product and process engineering working together for: Optimal functionality in the marketplace Low cost manufacturing Other cross functional engagement Reduced time to market Reduced cost to design Better quality Lower total cost Collaboration with suppliers, customers Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive Process Design Process = means by which operations management reaches objectives of Producing products and services customers want When they want it Required quality Desired cost
- 5. High effectiveness and productivity Nesting Several small processes linked to form a larger process Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive Mass Customization Production of customized products at same cost as mass- produced product Flexible and efficient operations Quick redesign based on customer need Can occur at the final stage of the production stage (Postponement) Combines flexibility, agility, and knowledge of customer need Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive Factors Influencing Process Designs Product design and quality levels needed Process much be capable of achieving the quality level Demand patterns and flexibility needed for fluctuation Quantity and capacity considerations Degree of customer involvement
- 6. Environmental concerns – “green” sensitivity Example: Water-based paints Make or buy decisions Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive Relationship Between Product Design, Process Design, and Relationship Between Product Design, Process Design, and Capacity Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive Reasons to Make In-house Can produce at a lower cost Utilization of existing equipment Maintain control of confidential processes Maintain better quality control Maintain workforce Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e
- 7. Chapman, Arnold, Gatewood, and Clive Reasons to Buy Less requirement for capital investment Rely on specialized expertise of suppliers Allow firm to concentrate on own area of specialization Provide for competitive pricing Can accommodate large volume changes Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive Processing Equipment General-purpose machinery Used for a variety of operations or products Less costly More human input – Quality level more variable Special-purpose machinery Perform specific operations on small number of similar products Less flexible Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive
- 8. Process Systems Flow process Product layout Limited range of similar products flow from workstation to workstation at a nearly constant rate Intermittent processes Goods made at intervals in lots or batches Process (functional) layout Project or fixed position processes Large, complex, unique Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive Process Costing Job Costing Often used with multiple products produced within a time period Labor, material, overhead allocated to the product Process Costing Often used for continuous processes Costs consumed during a period allocated to departments or operations rather then a specific product
- 9. Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive Continuous Process Improvement Improving productivity Better and faster machinery and equipment Designing or improving work methods to maximize productivity Better use of existing resources Removing work content People involvement Maximize potential of flexible, motivated workers Participation of everyone Improvement in methods requiring little capital Team concept Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive Continuous Process Improvement Select the process to be studied Record and collect data in a useful form Analyze the data to generate improved methods Evaluate alternatives and select method Implement as standard practice
- 10. Maintain the new method Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive Continuous Process Improvement Economic considerations Cost of improvement must be justified One to two year payback is most common Job size must justify the time working on it Human factor Governs the success Resistance to change Focus on pleasant or unsafe working conditions Intangible benefits Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive Pareto Analysis: Select problems with the greatest economic impact Determine method of classifying data Select unit of measure Collect data for appropriate time interval
- 11. Summarize data by ranking in descending order Calculate total cost Calculate % of each item Construct bar graph showing % for each item and line graph of cumulative % Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive Pareto Diagram Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive Cause-and-Effect Diagram (Fishbone or Ishikawa)) Identify problem to be studied Generate ideas about main causes Materials Machines People Methods Measurement Environment Brainstorm all possible causes for each main cause Identify most likely root causes
- 12. Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive Cause and effect diagrams – and example Cause-and-Effect Diagram Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive Record Facts Related to Process Process boundaries – starting and ending point Process flow – what happens between start and end Process inputs and outputs Components – resources used in changing inputs to outputs Customers – rates the effectiveness of the output Suppliers – provide the inputs Business environment – internal and external Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive
- 13. Schematic of a process Schematic of Process Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive Process Flow Charts – Classes of Activity Classes of activity Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive Operations Process Chart Record in sequence only the main operations and inspections High level view of the process Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive
- 14. Process Flow Diagram Graphic and sequential representation of the various steps, events and operations that make up a process Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive Analyze Find root cause Questioning attitude Examining total process to define What is accomplished How Why Examining parts of process Value added vs. non-value added activity Analysis of relationship between production rate, item throughput and process inventory Little’s Law Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive
- 15. Little’s Law Can be applied to any process that includes time, inventory and throughput I = RT, where I = inventory in the process R = production processing rate T = throughput time through process Dividing by R, the formula becomes T=I/R Assuming that R is fairly stable, shows that each reduction in inventory is directly related to faster throughput https://www.youtube.com/watch?v=JUszeJViSjU Little’s Law Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive Develop Eliminate all unnecessary work Combine operations wherever possible Rearrange sequence of operations Simply wherever possible Less complex Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive
- 16. Principles of Motion Economy Principles of motion economy Locate materials, tools and workplace within working area Locate work done most frequently within working area and maximum grasp area Arrange work so motions are balanced Reduce conditions contributing to operator fatigue Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive Human and Environmental Factors Job design improvements Job enlargement – expand a worker’s job Job enrichment – add more meaningful tasks Job rotation – perform several different jobs Cross-training Empowerment and self-directed work teams Allow the teams to have more responsibility and decision making authority Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive
- 17. Implement and Maintain Implement the improved actions/changes Equipment, tooling, information and people available Dry run Proper training Learning curve Maintain Be sure new method is being done correctly Evaluate change to be sure benefits are accomplished Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive Sample Learning curve Sample Learning Curve Over time, speed will increase and errors will decrease Copyright © 2017 by Pearson Education, Inc. All Rights Reserved Introduction to Materials Management, 8e Chapman, Arnold, Gatewood, and Clive