DISCRETE ys PROCESS MANUFACTURING M. Granger, FBPICS and J. Saunders, FBPICS, Bluebird Software Lid. Manufacturing environments can be classified as discrete, repetitive, or process, though combinations of these environ: rents frequently coexist in many companies. Each environ- ‘ment has its own set of operating characteristies and its own special problems. Because of these differences, each type of Manufacturer has a unique set of requirements that Business Management must address. DISCRETE MANUFACTURERS Discrete manufacturers have major requirements in the areas of financial control and measurement, customer service and product distribution, Repetitive /Process ‘CHARACTERISTICS Characteristics ASSEMBLY RATES FOCUSED ‘STANDARD COMPONENTS CONTINUOUS FLOW OPERATION ‘The characteristic that distinguishes discrete businesses is their focus on the individual requirements of customers. Their success depends on responding to volatile customer demand with a wide variety of products, on-time delivery and com- petitive pricing. To attain the highest level of customer service possible, discrete companies develop flexible production facies that allow manufacturing o deal withthe wide range of customer demands. Repetitive /Process Discrete Vs Repetitive/Process DISCRETE — Job or Work Order Driven — Organized Around Work Centres — Long Work in Progress Lead Times’ — Transactions by Operation REPETITIVE/PROCESS Schedule Driven Organized Based on Cells, Short Work in Progress Lead Timés Flow Production Reporting at Pay Points Developing accurate material and capacity plans is essential {or discrete manufacturers to manage their variable demand. In addition, the discrete manufacturer must balance his, commitment to high customer service with a low inventory investment goal Maintaining order profitability is critical for the discrete ‘manufacturer, Accurate manufacturing costs are needed to set prices that are competitive, yet profitable. Reliable costing information also helps the discrete manufacturer identify those areas where expenses must be controlled or reduced 10 femain competitive. Performance measurement of all functional areas is crucial to the discrete manufacturers, ability to identify problems and take corrective action. Labour/Machine utilisation and efficiency, inventory turnover, actual versus planned order cost, cost of rework and scrap and on-time delivery of ‘customer orders are some of the parameters used by discrete ‘companies to measure performance _ Repatitive /Process. PROCESS MANUFACTURING Production which’ Adds Value by: __ MIXING ‘SEPARATING FORMING &/OR. CHEMICAL REACTIONS It may be carried out ‘in either: BATCH _ or CONTINUOUS MODE ° Repetitive /Process PROCESS MANUFACTURING Characteristics % FEW RAW MATERIALS * SHALLOW PRODUCT STRUCTURE %* EXPENSIVE EQUIPMENT PROCESS MANUFACTURING and the difference Process manufacturershavespecial requirements fortheir business planning and control systems. Their products and production methods differ trom thoseot discrete and repetitive manufacturers. For example: @ Products that are liquid, gas, or powder in form, present special storage and inventory control requirements. © Products such as food, which are subject to spoilage and deterioration have significant lot control and shelf life requirements. SCS CONTROL ECEMBER ORRUANUARY Yo» 25The Manufacturing Environment DISCRETE REPETITIVE PROCESS CAPITAL EXPENDITURE LowiMed ‘Medium High DIRECT LABOUR COST ‘High Mediu tow PRODUCTION CONTROL STAFFING | High ‘Medium Low PURCHASE MATERIAL COUNT High ‘Medium tow {SCHEDULE VS ORDERS Orders _| Schedule ‘Schedule WIP. VALUE High = tow Viiow RELIANCE ON FORECASTING Me High’ = High PUSH/PULL SCHEDULING. Push Pull Pull PROCESS/ORDER COSTING. Order Process : Process [DIT PURCHASE SCHEDULE Medium High S High CO:EXISTENT: i : © Manufacturing processes where the exact output may not be determined until the process has been particularly or totally completed present special production planning, control and measurement requirements, © Manufactuting processes that involve testing and grading frequently require system functions that support pla ning and production control for by-products. Repetitive /Process . REPETITIVE MANUFACTURING ==! Production of Discrete Units Planned, and Executed to a Scheduie Usually at High, Speeds and Volimes Material Tends to Move in a Continuouis Flow, During Production, but Different Items may be Produced Sequentially within that Flow Both processes and repetitive manufacturers organise their production facilities into lines or departments, but process manufacturers make significantly larger investments in Specialised, often single purpose, equipment and plant, Recovery of these investments, while keeping product costs down, makes the utilisation of capacity the Key scheduling criteria for process manufacturers. The table below identifies some of the important differences between Process/Repetitive and Discrete environments. SUMMARY To effectively support discrete manufacturers, a software system must provide: © Engineering Support. © Customer Order Processing with status and performance ‘measurement, Fully Integrated Features and Options Capability. ‘Capacity Management. Production Activity Planning, Scheduling and Tracking, Net Change Material Planning. Pre-pick Analysis and Selective Backflushing. ‘Support for Multi-Company and Multi-Plant Processing, Interfaces to support CIM Technologies. To effectively support Process manufacturers, a software system must provide: © Decimalised Inventory Control Lot Tracking, ‘Scheduling Lines : NOT WORK ORDERS. Evaluation Capacity prior to Material. Finite Loading Control Process which Puls or Pushes Material the ‘Automatic Consumption of Material, Labour and Over- hhead based on reported production. Purchasing support for JIT Delivery. Planning and Scheduling support for by-product produc- tion. About the Authors. Malcolm Granger is a product consultant with Bluebird Software which he joined in 198Bafter some 11 yearsin produc tion and inventory management in the toy industry. He has recently become Chairman of the Editorial & Publicity Committee of BPICS, is Chairman of the Electronics Special Interest Group and has been President of the Thames Valley Branch. John Saunders after many years in production management, ‘moved in 1978 into management services to implement an MRPIL system. Having made all the errors, he became a consultant in 1985 and now works for Bluebird Software. He has been President of Southern Region for some years and is a member of Council and of the Editorial & Publicity ‘Committee! aPIS CONTROL DECEMBER 1SRQUAMRARY 1090.27