Unit 10 (Commercial Production) Flashcards
Distinguish between JIT and JIC production strategies (2)
Just In Time- manufacturers respond to market needs as the need arises (goods are made to order when requested)
Just In Case- manufacturers focus on creating products in anticipation of market demand (goal to reduce costs by taking advantage of economies of scale)
List the advantages and disadvantages of JIC (3 + 3)
Just In Case
ADVANTAGES
- fast distribution of parts available/ easily capable of meeting need
- buffer (reserve) of items in case of issue/ delay
- lower capital cost (less dependent on complex ICT)
DISADVANTAGES
- higher capital costs for space
- higher wastage due to spoilage (items expiring)
- risk of changing market could leave manufacturer with unsellable goods
List the advantages and disadvantages of JIT (2 + 2)
Just In Time
ADVANTAGES
- low waste due to lack of over-production
- lower costs (no inventory to manage)
DISADVANTAGES
- delay between ordering and delivery (longer wait compared to JIC)
- Manufacturers cannot take advantage of same economies of scale as JIC, since they purchase smaller quantities of materials
Distinguish between a push and pull manufacturing strategy (2)
PUSH- supply, wait for demand
PULL- wait for demand, supply
Define lean production (1)
the aim to minimise waste and maximise the value of a product (based on consumer perspective).
name the five steps of lean production (5)
1) specify the value from the customer’s perspective
2) map all the steps to bring product to customer
3) establish the continuous flow of production
4) implement pull market system
5) continue to eliminate waste, continuously improve system
List the advantages of lean production (6)
continuous improvement –>
increased productivity
increased quality of product
cost reductions (increased profits)
improved working conditions for workers
competitive advantage
reduced environmental impact
List the disadvantages of lean production (4)
- high capital costs due to investments in JIT and IT
- difficult to implement changes in production system (resistance from existing process)
- dependent on a highly integrated system (issues can break down entire complex system)
- lack of inventory –> difficult to respond to sudden changes in demand
List the characteristics of lean production (4)
- JIT system/ supplies
- highly trained, multi-skilled workers
- zero defects
- quality control, constant improvement
Define value stream mapping (1)
tool used to analyse current/ future production and delivery, in order to identify areas of improvement
List the advantages of a product family (4)
- reduced overall manufacturing costs (shared processes)
- reduced R&D costs
- attract a wider range of customers
- reduction in waste (can be used to make another product)
Define Kaizen (1)
Kai = change
Zen = good
a philosophy of continual improvement, central to lean production
(emphasises the workforce as the most important part of the manufacturing system, empowers them to identify and make changes in system)
List the 5S (5)
- Sort (the required tools/ resources)
- Set in order (the work environment)
- Shine (a clean work environment)
- Standardise (responsibilities, habits)
- Sustain (maintain and review)
List the 8 wastes in lean manufacturing (7)
WITUDOM
- waiting (time)
- inventory (space)
- transport (time + costs)
- unused knowledge
- defects (time + resources)
- over production (time + resources)
- motion (time)
Define CIM (1)
Computer integrated manufacturing is the integration of IT into all aspects of production for the aim of optimisation.
Combines JIT principles and lean manufacturing approach.
List the elements of CIM (7)
IMP DP CD
INVENTORY CONTROL
computerised system manages re-ordering supplies, tracking materials on the production line, and keeping up with JIT principles
MANUFACTURING
using CAD/ CAM technologies and automated manufacturing systems, closely monitored and interlinked with IT processes
PLANNING
generation of a production plan, taking into account all variables
DISTRIBUTION
management and organisation of raw materials, finished products and shipping of the products to clients
PURCHASING
coordination of purchasing materials and parts, while keeping inventory at a minimum (JIT principles)
COST ACCOUNTING
tracking of costs, payments, investment, to ensure efficiency
DESIGN
implementation of CAD/ CAM technology to design, prototype and iterate a design
Why is small scale production unfavourable for CIM systems? (1)
high initial investment and low economy of scale make CIM ineffective
List the advantages and disadvantages of CIM when applied to batch/ mass production (2 + 2)
PROS
- fully automated system cost effective at larger economies of scale
- maintenance can be monitored and managed
CONS
- high initial cost of investment + training (operation + maintenance)
- job loss due to automation
Define tolerance (1)
the allowable amount of variable within a particular quality (eg. the weight tolerance of a bike frame, ±100g from 2kg set weight).
Define destructive testing (1)
testing a product in a manner that destroys/ physically deforms the part, eg. heat resistance, compression, toughness
Define non-destructive testing (1)
testing a product in a manner that does not damage or change its properties, eg. weight, colour, size
Define inspection (1)
the checking of qualities at different stages in the production process
List the advantages and disadvantages of CIM when applied to mass customisation (3 + 2)
PROS
- greater range of choice for clients, easier to meet unique needs
- fully automated system cost effective at larger economies of scale
- maintenance can be monitored and managed
CONS
- high initial cost of investment + training (operation + maintenance)
- job loss due to automation
Define the goal of quality control (1)
to product the same part repeatedly with a minimum or no waste
Define SPC
Statistical Process Control
a statistical tool that ensures a process operates efficiently- goal to reduce waste, increase productivity and discover abnormalities
eg. airlines collecting data on delays, lost luggage and customer satisfaction in order to identify inefficiencies
Define QA
Quality Assurance
the goal to reduce or avoid errors or defective products being delivered to the customer
eg. testing raw materials for suitability before beginning production
Distinguish between the Manufacturers Suggested Retail Price (MSRP), the wholesale price, and the typical manufacturing price (3)
MSRP
price suggested by the manufacturer for retailers, in order to keep prices consistent across regions (retailers do not always follow)
WHOLESALE
cost of product sold by wholesaler, typically twice the manufacturer’s price, while still lower than retailers.
TYPICAL MANU. PRICE
cost of product sold direct from manufacturer (fixed costs + variable costs + profit margin)
Distinguish between price-minus and price-plus pricing (2)
PRICE-MINUS
research –> max price consumers willing to pay is determined –> manufacture designed based on constraint
PRICE-PLUS
manufacture designed –> cost calculated –> profit margin added on
Outline how to calculate ROI (1)
Return On Investment
(profit on unit) / (total cost of unit) = % efficiency
Define sales volume (1)
number of products sold within a specific time
Define financial return (1)
profit gained from an investment in the product life cycle (eg. manufacturing, transport, marketing, etc)
