ME6005 PROCESS PLANNING AND COST

ESTIMATION
Syllabus
Aims and objectives
define the manufacturing activity;
• Define the manufacturing activity
9 state the main goals of a manufacturing organization;
9 define the Principle of Added Value;
• State the main9 define
goalsa manufacturing
of a manufacturing
system; organization
9 identify and describe the common manufacturing systems and
• Define the Principle of Added Value
their operational
• Define a manufacturing
characteristics;
system
9 identify and describe the main processing strategies and relate
• Identify and describe
them to
the common manufacturing systems and their
the common manufacturing systems;
operational characteristics
9 identify and describe the main roles and responsibilities of a
manufacturing
• Identify and describe
engineer. the main processing strategies and relate them
to the common 1.3manufacturing
What is systems
• Identify and describe the main roles and responsibilities of a
manufacturing?
manufacturing engineer
What is manufacturing?

The making of products from raw materials using various processes,

equipment, operations and manpower according to a detailed plan that

is cost-effective and generates income through sales

What is manufacturing system?

An integrated combination of processes, machine systems, people,

organizational structures, information flows, control systems and

computers whose purpose is to achieve economic product manufacture

and internationally competitive performance

Inputs and outputs of a manufacturing systems
Common characteristics of a manufacturing
system
• All systems will have specific business objectives to meet in the most
cost-effective manner
• All systems consist of an integrated set of sub-systems, usually based
on functions, which have to be linked according to the material
processing
• All systems must have some means of controlling the sub-systems and
the overall system
• To operate properly, all systems need a flow of information and a
decision-making process
Manufacturing system
Developing a
manufacturing
strategy

• Marketing strategy
• Manufacturing strategy
The manufacturing strategy can be defined as a long range plan to use
the resources of the manufacturing system to support the business
strategy and in turn meet the business objectives. This in turn requires
a number of decisions to be made to allow the formulation of the
manufacturing strategy.
Six basic decision categories
• Capacity decisions
• Process decisions
• Facility decisions
• Make or buy decisions
• Infrastructure decisions
• Human resource decision
Typical functions in a manufacturing
organization
• Sales and marketing
to ensure a steady flow of orders
consolidate and expand the organization's share of the market
 forecasting, order processing, market research, servicing and distribution
• Engineering
product design, research and development (R&D) and the setting of
specifications and standards
• Manufacturing
Production planning
Quality assurance
Plant maintenance
Industrial engineering
Manufacturing engineering
Production/materials control
Production
• Human resources
• Finance and accounts
• Purchasing
Three basic organizational structures
employed in manufacturing
• Functional structure
• Product structure
• Matrix structure
Functional structure
Product structure
Matrix structure
Organizational management levels
• Strategic level
 This level is usually associated with senior management. This involves the
setting of short- and long-term business objectives that will give the
organization a competitive advantage over other similar organizations.
• Tactical level
 This level is associated with middle management. The main function of this
level is to develop the plans by which the business objectives can be met
using the organization's resources.
• Operational level
 This level is the frontline management and the main function of this level is to
ensure the everyday operations are planned and monitored.
Categories of
manufacturing system
There are two basic categories of manufacturing system:
• Discrete parts manufacturing
Project manufacture
Jobbing shop manufacture
Batch manufacture
Mass/flow manufacture
Cellular manufacture
• Continuous process manufacturing
Summary table of characteristics of
traditional manufacturing systems
Processing strategies
• make to stock (MTS);
• assemble to order (ATO);
• make to order (MTO);
• engineer to order (ETO).
Comparison of MTS, ATO and MTO/ETO
Facilities decision
Plant layout
• Plant layout is about the physical arrangements of departments,
workgroups within departments, workstations, machines and stock-
holding points within a manufacturing facility
Inputs to plant layout
• Specification of the objectives and criteria used to evaluate the layout
design. Typical examples are the required space and the distance
travelled between centres;
• Estimates of product demand on the system;
• Processing requirements in terms of the number of operations and
amount of flow between the elements in the layout;
• Space available within the facility, or if a new facility, the building
configuration.
Layout can improve how an organization
meets its objective by
• Facilitating the flow of materials and information
• Increasing the efficient utilization of labour and equipment
• Reducing hazards to employees
• Improving employee morale
• Improving communication
Types of plant layout
• Fixed position layout
• Process layout
• Product layout
• Cellular layout
Process layout
Advantages of a process layout when
compared to a product layout include:
• resources are general purpose and thus less expensive;
• it is more flexible as it is less vulnerable to changes in products;
• equipment utilization is higher as processes are used across a high
variety of products;
• employee supervision can be more specialized which is important due
to the high skill factor of personnel.
Disadvantages of process layout:
• processing rates tend to be slower;
• production time is lost due to set-up due to frequent product changeover;
• high inventory required to keep workstations busy;
• lead times tend to be long and variable;
• too much material handling;
• the numerous routings and flows across the shop floor necessitate the use
of simple carrying devices such as carts;
• production planning and control is more difficult;
Product focussed layout
Advantages of product layout over process
layout
• high production rates;
• low work-in-progress inventory;
• minimizing material handling;
• minimizing lost production time due to changeovers;
• ease of production planning and control.
Disadvantages for product layout
• as product designs change, so too must the product layout. This is a
problem for organizations that manufacture products with short life
cycles;
• as the layout is based on the product it is less flexible;
• process breakdowns can halt an entire production line;
• the capacity of the line is determined by the bottleneck work centre;
• poor use of resources for low-volume products.
Fixed position layout
Hybrid layout
Advantages of hybrid layout
• higher process equipment utilization;
• less material movement than process layouts;
• offers benefits from both process and product layouts.
Disadvantages of hybrid plant layout
• often requires multi-skilling of cell members;
• dependent on balancing flow through cells to avoid high work-in-
progress;
• has some of the disadvantages of both process and product layouts.
Industrial engineering
• Methods analysis
• Work measurement
• Plant layout
• Material handling
• Plant maintenance
• Manufacturing systems development
• Process development
• Process evaluation
• Process planning