session 3 Flashcards
Process
Series of tasks that transform inputs into outputs of higher value
Manufacturing process
Producing physical goods
Service processes
Delivering services
Make to stock
Producing goods in advance and storing them in inventory
Examples:
Clothing and fashion
Consumer electronics
Packaged food products
Challenges
Inventory management is crucial to avoid stock outs or overstocking.
Trade off for MTS
Keeping high inventory ensures availability but increases cost
Solution for MTS
Companies can invest in lean manufacturing or supply chain to balance costs and service levels.
Companies can achieve higher service levels with having minimal inventory investment
Make to Order MTO
Producing goods only after receiving custom orders
-Example manuf process for commercial aircrafts
Benefits of MTO
No need for large inventories since production is demand driven.
Challenges of MTO
Lead time reduction is a major issue customers must wait longer for the product.
Process layout
The process of determining placement of objectives, workforce within departments, workstation machines, equipment and stock holding points with particular focus on movement of work thru the system.
When do layout designs arise?
- Designing new facilities
-Re designing existing facilities
Project (fixed position layout)
The product remaines fixed, while materials labors and equipment move to it. Used when the product is too large or too heavy.
Examples: Construction, shipbuilding and aircraft manufacturing.
Work center
Best for low volume, high variety production. Machines are grouped by functions (eg.. grinding, drilling and cutting).
Examples
Customised machine parts
Handcrafted products
Manufacturing cell (Cellular layout)
A production area dedicated to a group of similar products.
Combines different machines into cells that produce similar items. Improves efficiency by reducing material movement.
Benefits of Manufacturing cell
Better human relations
Improved expertise
Less inventory and faster production setup
Examples of manufacturing cells
Metal fabrication
Computer chip manufacturing
Smartphones production
Assembly line
A sequential production system where product moves step by step through standardised processes.
Best for high volume production.
Maximizes efficiency and speed.
Examples of assembly line
Consumer goods
Home appliances
Continuous process
Similar to an assembly line but focused on products which flow through the system. Operates 24/7.
High startup and shutdown costs. - difficult to pause operations.
Examples
Oil refining
Electricity generation
Chemical manufacturing
