NC1801 -

PRODUCTION AND
OPERATIONS MANAGEMENT
MODULE V - MODERN PROJECT MANAGEMENT TOOLS
MODULE V - MODERN PROJECT MANAGEMENT TOOLS

 Computer Integrated Manufacturing - Computer Aided Design, Computer Aided

Manufacturing,
 Flexible Manufacturing Systems
 JIT
 Six Sigma
 Lean manufacturing and
 SCM

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Computer Integrated Manufacturing

 Computer-integrated manufacturing (CIM) is the manufacturing approach of

using computers to control the entire production process.
 “CIM is the integration of the total manufacturing enterprise through the use of
integrated systems and data communications coupled with new managerial
philosophies that improve organizational and personnel efficiency . ”
 CIM is not a product that can be purchased and installed.
 It is a way of thinking and solving problems
 This integration allows individual processes to exchange information with each
other and initiate actions.

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Subsystems in computer-integrated manufacturing

 CAD (Computer-Aided Design) involves the use of computers to create design

drawings and product models.
 CAE (Computer-Aided Engineering) is the broad usage of computer software to
aid in engineering tasks .
 CAM (Computer-Aided Manufacturing) is the use of computer software to control
machine tools and related machinery in the manufacturing of work pieces.
 CAPP (Computer-Aided Process Planning) is the use of computer technology to
aid in the process planning of a part or product, in manufacturing

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Subsystems in computer-integrated manufacturing

 CAQ (Computer-Aided Quality Assurance) is the engineering application of

computers and computer controlled machines for the inspection of the quality of
products.
 PPC (Production Planning and Control) A production (ormanufacturing) planning
and control (MPC) system is concerned with planning and controlling all aspects
of manufacturing, including materials, scheduling machines and people, and
coordinating suppliers and customers
 ERP (Enterprise Resource Planning) systems integrate internal and external
management information across an entire organization, embracing
finance/accounting, manufacturing, and sales and services

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Computer-aided design (CAD)

 Computer-aided design (CAD) is the use

of computers (or workstations) to aid in the creation,
modification, analysis, or optimization of a design
 CAD software is used to increase the productivity of
the designer, improve the quality of design, improve
communications through documentation, and to
create a database for manufacturing.
 CAD output is often in the form of electronic files for
print, machining, or other manufacturing operations.

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Computer-aided design (CAD)

 CAD is used as follows:

 To produce detailed engineering designs through 3-D and 2-D drawings of the
physical components of manufactured products.
 To create conceptual design, product layout, strength and dynamic analysis of
assembly and the manufacturing processes themselves.
 To prepare environmental impact reports, in which computer-aided designs are used
in photographs to produce a rendering of the appearance when the new structures
are built.

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Computer Aided Manufacturing (CAM)

 Computer Aided Manufacturing (CAM) is the use of software

and computer-controlled machinery to automate a
manufacturing process.
 Based on that definition, you need three components for a
CAM system to function:
 Software that tells a machine how to make a product by
generating tool paths.
 Machinery that can turn raw material into a finished product.
 Post Processing that converts tool paths into a language
machines can understand.
 These three components are glued together with tons of
human labour and skill
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Computer Aided Manufacturing (CAM)

 CAM software prepares a model for machining by working through several

actions, including:
  Checking if the model has any geometry errors that will impact the manufacturing
process.
 Creating a toolpath for the model, which is a set of coordinates the machine will
follow during the machining process.
 Setting any required machine parameters including cutting speed, voltage,
cut/pierce height, etc…
 Configuring nesting where the CAM system will decide the best orientation for a part
to maximize machining efficiency.

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Flexible manufacturing system

 A flexible manufacturing system (FMS) is a manufacturing system in which there

is some amount of flexibility that allows the system to react in case of changes,
whether predicted or unpredicted
 A flexible manufacturing system (FMS) is designed up front to be readily adapted
to changes in the type and quantity of goods being produced.
 Production is largely automated, reducing overall labor costs.
 An FMS system is, however, more expensive to design and put in place and
requires skilled technicians to keep it running.

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Classification of FMS

 Flexible manufacturing systems can be distinguished according to the number of

machines in the system.
 The following are typical categories
 Single machine cell
 Flexible manufacturing cell
 Flexible manufacturing system

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Basic components of FMS

 Workstations
 Automated Material Handling and Storage systems
 Computer Control System

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Application of FMS

 Metal-cutting machining
 Metal forming
 Assembly
 Joining-welding (arc , spot), gluing
 Surface treatment
 Inspection
 Testing

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Advantages of FMS

 To reduce set up and queue times

 Improve efficiency
 Reduce time for product completion
 Utilize human workers better
 Improve product routing
 Produce a variety of Items under one roof
 Improve product quality
 Serve a variety of vendors simultaneously
 Produce more product more quickly

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Disadvantages & Challenges of FMS

 Disadvantages
 Expensive.
 Substantial pre-planning activity

 Challenges
 Determining if FMS the best production system for your company
 Possible expansion costs associated with implementing FMS

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Just In Time (JIT)

 Just-in-time manufacturing is a strategy used in the business manufacturing

process to reduce costs by reducing the in-process inventory level.
 This means that stock levels of raw materials, components, work in progress and
finished goods can be kept to a minimum.
 This requires a carefully planned scheduling and flow of resources through the
production process.
 Modern manufacturing firms use sophisticated production scheduling software
to plan production for each period of time, which includes ordering the correct
stock

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Just In Time (JIT)

 Supplies are delivered right to the production line only when they are needed.
 For example, a car manufacturing plant might receive exactly the right number
and type of tyres for one day’s production, and the supplier would be expected
to deliver them to the correct loading bay on the production line within a very
narrow time slot

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Some Key Elements of JIT

 1. Stabilize and level the MPS with uniform plant loading 

 2. Reduce or eliminate setup times: aim for single digit setup times (less than 10
minutes)
 3. Reduce lot sizes (manufacturing and purchase)
 4. Reduce lead times (production and delivery)
 5. Preventive maintenance
 6. Flexible work force
 7. Require supplier quality assurance and implement a zero defects quality program

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Advantages of JIT

 Lower stock holding means a reduction in storage space which saves rent and
insurance costs
 As stock is only obtained when it is needed, less working capital is tied up in stock
 There is less likelihood of stock perishing, becoming obsolete or out of date
 Avoids the build-up of unsold finished product
 Less time is spent on checking and re-working the product of others as the
emphasis is on getting the work right first time

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Disadvantages of JIT

 High reliance on suppliers, whose performance is generally outside the purview

of the manufacturer
 The organization would not be able to meet an unexpected increase in orders
due to the fact that there are no excess finish goods
 Transaction costs would be relatively high as frequent transactions would be
made.
 Just-in-time manufacturing may have certain detrimental effects on the
environment due to the frequent deliveries that would result in increased use of
transportation, which in turn would consume more fossil fuels

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Six Sigma

 Six Sigma is a disciplined, statistical-based, data-driven approach and continuous

improvement methodology for eliminating defects in a product, process or
service.
 In other words, it is a methodology to achieve 3.4 defects per million
opportunities.
 It can also be used to bring breakthrough improvements in the process.
 It focuses on the bottom-line and is a proven methodology for problem solving.
 It was developed by Motorola and Bill Smith in the early 1980’s based on quality
management fundamentals

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Goals of Six Sigma

 To reduce variation
 To reduce defects /rework
 To improve yield /productivity
 To enhance customer satisfaction
 To improve the bottom-line

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Six Sigma methodologies

 There are two very important methodologies for executing a Six Sigma initiative:
 Six Sigma DMAIC
 Define, Measure, Analyze, Improve, Control
 Used to correct a process that already exists
 Six Sigma DMADV.
 Define, Measure, Analyze, Design, Validate
 Used to create a new process

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Advantages and disadvantages of Six Sigma

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Lean manufacturing (Lean production)

 Lean manufacturing is a methodology that focuses on minimizing waste within

manufacturing systems while simultaneously maximizing productivity
 The Lean approach is based on thoroughly evaluating your process to find what
you’re doing right and remove or adapt all steps that may be possibly generating
waste.
 This waste is called muda and encompasses anything that doesn’t add value to
the end product

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Types of waste

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Supply Chain Management

 Supply Chain Management can be defined as the management of flow of

products and services, which begins from the origin of products and ends at the
product’s consumption.
 It also comprises movement and storage of raw materials that are involved in
work in progress, inventory and fully furnished goods

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Supply Chain Management –Goals

 Collaborative Efficiency
 Higher Quality
 Enable Financial Success
 Stability
 Change Management

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Advantages of Supply Chain Management

 1. Supply Chain Management helps to increase savings in labour and procurement

costs.
 2. Supply Chain Management helps to achieve better inventory control.
 3. Supply Chain Management is used to get better control over suppliers.
 4. Supply Chain Management can increase market visibility.
 5. Chances of product failure rate can be reduced by Supply Chain Management.
 6. Supply Chain Management is used to provide  better information on customer needs,
tastes etc.,
 7. Supply Chain Management is used to achieve higher revenues.

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Disadvantages of Supply Chain Management 

 1. Sometimes Supply Chain Management can be very expensive to implement.

 2. Competitors can easily copy the strategy of Supply Chain Management.
 3. For better Supply Chain Management, proper skills and experience is required
to achieve success.
 4. Sometimes in Supply Chain Management various functions may be difficult to
manage.
 5. In Supply Chain Management there may be staff resistance.

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