Section B: Manufacturing Design, Planning, & Control

Question 1

Manufacturing process

Answer 1

Manufacturing process : The series of operations performed upon material to convert it from the raw material or a semi-finished state to a state of further completion. Manufacturing processes can be arranged in a process layout, product layout, cellular layout, or fixed-position layout. Manufacturing processes can be planned to support make-to-stock, make-to-order, assemble-to-order, and so forth, based on the strategic use and placement of inventories.

Question 2

Manufacturing philosophy

Answer 2

Manufacturing philosophy : The set of guiding principles, driving forces, and ingrained attitudes that helps communicate goals, plans, and policies to all employees and that is reinforced through conscious and subconscious behavior within the manufacturing organization.

Question 3

Describe the Manufacturing process types in the Volume-Variety Matrix.

Answer 3

Manufacturing Process Types: (in order from hi variety/low vol –> low variety/hi vol) -Project -Work Center (Intermittent) -Batch (Intermittent) -Line (Flow) -Continuous (Flow)

Question 4

Describe the Manufacturing process layouts in the Volume-Variety Matrix.

Answer 4

Manufacturing Process Layouts: (in order from hi variety/low vol –> low variety/hi vol) -Fixed Position -Functional -Cellular -Product-based

Question 5

Describe the Manufacturing environments in the Volume-Variety Matrix.

Answer 5

Manufacturing Process Types: (in order from hi variety/low vol –> low variety/hi vol) -ETO (Engineer-to-order) -MTO (Make-to-order) -ATO (Assemble-to-order) -MTS (Make-to-stock)

Question 6

What other trends happen in the direction from high variety/low vol –> low variety/high vol?

Answer 6

Customer lead time tends to be very long for high variety, low volume production. Tasks are diverse and complex at the high variety, low volume end, as one might expect in building unique items or items in small batches. Tasks at the low variety, high volume end tend to be repetitive and are divided up into efficient groupings.

Question 7

Delivery Lead Time

Answer 7

Delivery Lead Time The time from the receipt of a customer order to the delivery of the product.

Question 8

Supplier lead time

Answer 8

Supplier lead time : The amount of time that normally elapses between the time an order is received by a supplier and the time the order is shipped.

Question 9

Procurement lead time

Answer 9

Procurement lead time : The time required to design a product, modify or design equipment, conduct market research, and obtain all necessary materials. Lead time begins when a decision has been made to accept an order to produce a new product and ends when production commences.

Question 10

Purchasing lead time

Answer 10

Purchasing lead time : The total lead time required to obtain a purchased item. Included here are order preparation and release time; supplier lead time; transportation time; and receiving, inspection, and put-away time.

Question 11

Manufacturing lead time

Answer 11

Manufacturing lead time : The total time required to manufacture an item, exclusive of lower-level purchasing lead time. For make-to-order products, it is the length of time between the release of an order to the production process and shipment to the final customer. For make-to-stock products, it is the length of time between the release of an order to the production process and receipt into inventory. Included are order preparation time, queue time, setup time, run time, move time, inspection time, and put-away time.

Question 12

Engineer-to-Order (examples)

Answer 12

Engineer-to-Order: Products whose customer specifications require unique engineering design, significant customization, or new purchased materials. Each customer order results in a unique set of part numbers, bills of material, and routings. *The manufacturing environment with the longest lead time.

Question 13

Make-to-Order (examples)

Answer 13

Make-to-Order: A production environment where a good or service can be made after receipt of a customer’s order. The final product is usually a combination of standard items and items custom-designed to meet the special needs of the customer. Where options or accessories are stocked before customer orders arrive, the term assemble-to-order is frequently used.

Question 14

Assemble-to-Order (ATO) (& examples)

Answer 14

Assemble-to-Order (ATO) : A production environment where a good or service can be assembled after receipt of a customer’s order. The key components (bulk, semi-finished, intermediate, subassembly, fabricated, purchased, packing, and so on) used in the assembly or finishing process are planned and usually stocked in anticipation of a customer order. Receipt of an order initiates assembly of the customized product. This strategy is useful where a large number of end products (based on the selection of options and accessories) can be assembled from common components.

Question 15

Components

Answer 15

Components: The raw material, part, or sub-assembly that goes into a higher-level assembly, compound, or other item. This term may also include packaging materials for finished items.

Question 16

Modularization

Answer 16

Modularization: In product development, the use of standardized parts for flexibility and variety. Permits product development cost reductions by using the same item(s) to build a variety of finished goods. This is the first step in developing a planning bill of material process.

Question 17

Make-to-Stock (& examples)

Answer 17

Make-to-Stock: A production environment where products can be and usually are finished before receipt of a customer order. Customer orders are typically filled from existing stocks, and production orders are used to replenish those stocks.

Question 18

Mass Customization

Answer 18

Mass Customization: The creation of a high-volume product with large variety whose manufacturing cost is low due to the large volume, allowing customers to specify an exact model out of a large volume of possible end items. An example is a personal computer order in which the customer specifies processor speed, memory size, hard disk size and speed, removable storage device characteristics, and many other options when PCs are assembled on one line and at low cost.

Question 19

Postponement

Answer 19

Postponement: A product design, or supply chain strategy that deliberately delays final differentiation of a product (assembly, production, packaging, tagging, etc.) until the latest possible time in the process. This shifts product differentiation closer to the consumer to reduce the anticipatory risk of producing the wrong product. The practice eliminates excess finished goods in the supply chain. Sometimes referred to as delayed differentiation.

Question 20

Package-to-Order

Answer 20

Package-to-Order: A production environment in which a good or service can be packaged after receipt of a customer order. The item is common across many different customers; packaging determines the end product.

Question 21

VATI analysis

Answer 21

VATI analysis: In the theory of constraints, a procedure for determining the general flow of parts and products from raw materials to finished products (logical product structure)… Once the general parts flow is determined, the system control points (gating operations, convergent points, divergent points, constraints, and shipping points) can be identified and managed.

Question 22

V-plants

Answer 22

V-plants. A basic raw material (the bottom of the V) is split off into two or more products that diverge rather than being interrelated later. “A V logical structure starts with one or a few raw materials, and the product expands into a number of different products as it flows through divergent points in its routings.” For example, an organization that harvests trees might make various types of lumber.

Question 23

A-plants

Answer 23

A-plants. Various raw materials are transformed in their own production processes and converge (at the top of the A) into one or more final materials, for example, complex products assembled from multiple subcomponents. “The shape of an A logical structure is dominated by converging points. Many raw materials are fabricated and assembled into a few finished products.”

Question 24

T-plants

Answer 24

T-plants. Raw materials are transformed using a single logical flow production line, but at some point, a limited number of basic units can be configured into many different end products (at the top of the T). “A T logical structure consists of numerous similar finished products assembled from common assemblies, subassemblies, and parts.”

Question 25

I-plants

Answer 25

I-plants. This is a basic linear flow for operations that use a production line or continuous flow process to produce one type of end product. “An I logical structure is the simplest of production flows, where resources are shared between different products and the flow is in a straight line sequence (e.g., an assembly line).”

Question 26

Product Life Cycle

Answer 26

Product Life Cycle 1) The stages a new product goes through from beginning to end (i.e., the stages that a product passes through from introduction through growth, maturity, and decline). 2) The time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) The period of time during which a product can be produced and marketed profitably.

Question 27

Introduction (Product Life Cycle Phase)

Answer 27

Introduction. Organizations usually need to spend a lot on marketing to raise awareness of the product. Design can be a differentiator, and ensuring availability may be an issue for distribution. Sales are very low during this phase, and the organization generally incurs losses rather than making a profit. Many products fail before they get to the next stage, highlighting the importance of needing good information on customer requirements and demand.

Question 28

Growth (Product Life Cycle Phase)

Answer 28

Growth. Successful products gain market share rapidly, for example, as retailers start carrying the product. This phase puts a lot of stress on manufacturing and distribution to scale upward or downward quickly if demand differs from what was projected during development, and quality or delivery service levels could suffer. If economies of scale can be generated, unit costs drop rapidly and high profits result, at least until competitors enter the market and force prices down. However, other competitors exit the market if their designs are proven less scalable. Thus product designs tend to stabilize during this phase.

Question 29

Maturity (Product Life Cycle Phase)

Answer 29

Maturity. The product is no longer new, and many customers have already bought it. Or the market may be saturated with competitors, further reducing profit margins. Sales can still be steady for a long period. When sales volumes are sufficient, products might be enhanced to keep them profitable for longer or to allow time for replacement products to be developed. This could take the form of price reductions or additional services such as faster or more reliable delivery.

Question 30

Decline (Product Life Cycle Phase)

Answer 30

Decline. The product is no longer in demand, or demand may be falling at a steady or increasing rate. This may be due to new alternatives or changing tastes. Profits might still be made in this phase, but this usually requires changing to a less expensive production environment such as make-to-order. There may be an ongoing need for spare parts or service. Other products must be phased out and replaced with new or improved products, and an exit strategy may be needed (in some versions of the life cycle, phase out might be shown as a separate phase).

Question 31

Project Management

Answer 31

Project management The use of skills and knowledge in coordinating the organizing, planning, scheduling, directing, controlling, monitoring, and evaluating of prescribed activities to ensure that the stated objectives of a project, manufactured good, or service are achieved.

Question 32

Gantt Chart

Answer 32

Gantt chart The earliest and best-known type of planning and control chart, especially designed to show graphically the relationship between planned performance and actual performance over time. Named after its originator, Henry L. Gantt, the chart is used for (1) machine loading, in which one horizontal line is used to represent capacity and another to represent load against that capacity; or (2) monitoring job progress, in which one horizontal line represents the production schedule and another parallel line represents the actual progress of the job against the schedule in time.

Question 33

Intermittent Production

Answer 33

Intermittent Production is a form of manufacturing in which the jobs pass through the functional departments in lots, and each lot may have a different routing.

Intermittent process types are useful when there are many product design variants that have different process requirements and therefore have unbalanced workflows between work centers. Both equipment and workers need to be flexible enough to perform this varied type of work. In other words, general purpose equipment is often needed instead of specialized units. Order quantities are also typically variable, meaning that some job runs will be longer than others. Examples –> Work Center, Batch

Question 34

Work Center (a type of intermittant manufacturing)

Answer 34

The work center process type, also called job shop or intermittent manufacturing, is organized around similar processes and usually involves smaller lots or batches. Work centers are production areas that are grouped by function, such as all lathes in one area and all sanding in a different work area. Products are routed between work centers in odd patterns depending on what process needs to be done next. The emphasis in planning is to have fast changeovers with skilled, flexible labor.

Question 35

Batch (a type of intermittant manufacturing process type)

Answer 35

The batch process type, also called batch flow or lot manufacturing, is a version of intermittent manufacturing for higher production volume. Lots or batches are larger, and the flow between the chain of activities is optimized to minimize distances traveled between workstations. The emphasis in planning is to have longer production runs and fewer changeovers.

Question 36

Flow Processing

Answer 36

Flow processing In process systems development, work flows from one workstation to another at a nearly constant rate and with no delays. When producing discrete (geometric) units, the process is called repetitive manufacturing; when producing non-geometric units over time, the process is called continuous manufacturing. A physical-chemical reaction takes place in the continuous flow process.

Two types of flow processes include line and continuous.

Question 37

Flow shop

Answer 37

Flow shop A form of manufacturing organization in which machines and operators handle a standard, usually uninterrupted, material flow. The operators generally perform the same operations for each production run. A flow shop is often referred to as a mass production shop or is said to have a continuous manufacturing layout. The plant layout (arrangement of machines, benches, assembly lines, etc.) is designed to facilitate a product “flow.” Some process industries (chemicals, oil, paint, etc.) are extreme examples of flow shops. Each product, though variable in material specifications, uses the same flow pattern through the shop. Production is set at a given rate, and the products are generally manufactured in bulk.

Question 38

Line Process Type

Answer 38

The line process type, also called repetitive flow or line flow, is used when the products being produced are discrete units, like cans of soda or cars.

Question 39

Discrete manufacturing

Answer 39

Discrete manufacturing : The production of distinct items such as automobiles, appliances, or computers.

Question 40

Repetitive Manufacturing

Answer 40

Repetitive Manufacturing is the repeated production of the same discrete products or families of products. Repetitive methodology minimizes setups, inventory, and manufacturing lead times by using

production lines, assembly lines, or cells. Work orders are no longer necessary; production scheduling and control are based on production rates. Products may be standard or assembled from modules. Repetitiveness is not a function of speed or volume.

Question 41

Assembly line

Answer 41

Assembly line : An assembly process in which equipment and work centers are laid out to follow the sequence in which raw materials and parts are assembled.

Question 42

Production Plan

Answer 42

The agreed upon plan that comes from the production planning (sales and operations planning) process, specifically the overall level of manufacturing output planned to be produced, usually stated as a monthly rate for each product family (group of products, items, options, features, and so on).

Question 43

Continuous Production

Answer 43

Continuous Production is a production system in which the productive equipment is organized and sequenced according to the steps involved to produce the product.

This term denotes that material flow is continuous during the production process. The routing of the jobs is fixed and setups are seldom changed.

Question 44

Fixed Position Manufacturing Layout

Answer 44

Fixed Position Manufacturing Layout is similar to project manufacturing, this type of manufacturing is mostly used for large, complex projects where the product remains in one location for its full assembly period or may move from location to location after considerable work and time are spent on it.

Examples of fixed-position manufacturing include shipbuilding or aircraft assembly, for which the costs of frequent movement of the product are very high.

Question 45

Functional layout (a type of process layout)

Answer 45

Functional layout : A facility configuration in which operations of a similar nature or function are grouped together; an organizational structure based on departmental specialty (e.g., saw, lathe, mill, heat treat, press).

The advantage to a functional layout is that equipment can handle a wide variety of products. Capital costs are lower for a process layout (than a product layout).

Question 46

Job Shop

Answer 46

Job shop : 1) An organization in which similar equipment is organized by function. Each job follows a distinct routing through the shop. 2) A type of manufacturing process used to produce items to each customer’s specifications. Production operations are designed to handle a wide range of product designs and are performed at fixed plant locations using general-purpose equipment.

Question 47

Cellular manufacturing

Answer 47

Cellular manufacturing : A manufacturing process that produces families of parts within a single line or cell of machines controlled by operators who work only within the line or cell.

Question 48

Work cell

Answer 48

Work cell : Dissimilar machines grouped together into a production unit to produce a family of parts having similar routings.

Question 49

Nesting

Answer 49

Nesting : The act of combining several small processes to form one larger process.

Question 50

U-lines

Answer 50

U-lines are production lines shaped like the letter “U.” The shape allows workers to easily perform several nonsequential tasks without much walk time. The number of workstations in a U-line is usually determined by line balancing. U-lines promote communication.

Question 51

Product layout

Answer 51

Product layout is another name for flow process layout. A system that is set up for a limited range of similar products. Focused-factory production is also considered to be in this category.

Question 52

Manufacturing planning and control (MPC)

Answer 52

Manufacturing planning and control (MPC) is basically a method of determining how to prioritize the use of available resources to best satisfy customer demand. These resources include materials and available equipment and worker capacity.

Question 53

Manufacturing Planning and Control (MPC)

Answer 53

Manufacturing Planning and Control (MPC) is a closed-loop information system that includes the planning functions of production planning (sales and operations planning), master production scheduling, material requirements planning, and capacity requirements planning. Once the plan has been accepted as realistic, execution begins. The execution functions include input-output control, detailed scheduling, dispatching, anticipated delay reports (department and supplier), and supplier scheduling.

Question 54

Master Planning

Answer 54

A group of business processes that includes the following activities: demand management (which includes forecasting and order servicing); production and resource planning; and master scheduling (which includes the master schedule and the rough-cut capacity plan).

Question 55

Advanced Planning and Scheduling (APS)

Answer 55

Techniques that deal with analysis and planning of logistics and manufacturing during short, intermediate, and long-term time periods. APS describes any computer program that uses advanced mathematical algorithms or logic to perform optimization or simulation on finite capacity scheduling, sourcing, capital planning, resource planning, forecasting, demand management, and others. These techniques simultaneously consider a range of constraints and business rules to provide real-time planning and scheduling, decision support, available-to-promise, and capable-to-promise capabilities. APS often generates and evaluates multiple scenarios. Management then selects one scenario to use as the “official plan.” The five main components of APS systems are (1) demand planning, (2) production planning, (3) production scheduling, (4) distribution planning, and (5) transportation planning.

Question 56

Enterprise Resources Planning (ERP)

Answer 56

Enterprise Resources Planning (ERP) is the framework for organizing, defining, and standardizing the business processes necessary to effectively plan and control an organization so the organization can use its internal knowledge to seek external advantage.

An ERP system provides extensive databanks of information including master file records, repositories of cost and sales, financial detail, analysis of product and customer hierarchies, and historic and current transactional data.

Question 57

Closed Loop MRP

Answer 57

A system built around material requirements planning that includes the additional planning processes of production planning (sales and operations planning), master production scheduling, and capacity requirements planning.

Question 58

Manufacturing Resource Planning (MRP II)

Answer 58

Manufacturing Resource Planning (MRP II) is a method for the effective planning of all resources of a manufacturing company. Ideally, it addresses operational planning in units and financial planning in dollars, and has a simulation capability to answer what-if questions.

It is made up of a variety of processes, each linked together: business planning, production planning (sales and operations planning), master production scheduling, material requirements planning, capacity requirements planning, and the execution support systems for capacity and material. Output from these systems is integrated with financial reports such as the business plan, purchase commitment report, shipping budget, and inventory projections in dollars. Manufacturing resource planning is a direct outgrowth and extension of closed-loop MRP.

Question 59

Electronic Data Interchange (EDI)

Answer 59

The paperless (electronic) exchange or trading documents, such as purchase orders, shipment authorizations, advanced shipment notices, and invoices, using standardized document formats.

Question 60

Data governance

Answer 60

Data governance is the overall management of data’s accessibility, usability, reliability, and security. Used to ensure data record accuracy.