SRSD 4042: PRODUCTION MANAGEMENT FOR

INDUSTRIAL DESIGN

TOPIC 2: INTRODUCTION TO
MANUFACTURING ENGINEERING

ASSOC. PROF. SALLEHUDDIN MUHAMAD

FACULTY OF INFORMATICS AND TECHNOLOGY RAZAK

sallehuddin.kl@utm.my
 Manufacturing Engineering

• Manufacturing Engineering is the branch of engineering that

is concerned with understanding, analysing and improving
complex industrial, manufacturing and infrastructure
systems.
• Manufacturing Engineering takes ideas from concept
generation right through to working products.
 Sequence of Processes to Make a
Product

Steps to design the process sequence:

• Define product structure and specifications
• Assessing producibility of each component.
• Listing component manufacturing processes that can be
used.
• Determining the cost of each alternative manufacturing
process.
• Sequencing the manufacturing operations.
• Documenting the process.
 Product Structure and Specifications

A. Product Structure
Concept:
• Chart hierarchically all subassemblies, components and
raw materials to make a product.
• Separate the components into one subassembly unit at
different levels. Example: Level 0 for the finished product,
the sub-assemblies that make up the finished product are
placed at Level 1 while the components that make up the
sub-assemblies are placed at Level 2, 3… n.
• Detailed information for each item is shown in the Bill of
Materials (BOM).
 Product Structure and Specifications

Example:
Product
PXS

(3) (1)

Subassembly Subassembly
S1 S2

(2) (4) (3)

Sub- Sub-
Su-subassembly
subassembly subassembly
SS1 SS3
SS2

(1) (1) (4) (1) (1) (1) (1)

Component Component Component Component Component Component Component

C1 C2 C1 C1 C2 C4 C5

(2) (1) (6) (2) (1) (3) (2) (2)

Subcomponent Subcomponent Subcomponent Subcomponent Subcomponent Subcomponent Subcomponent Subcomponent

R2 R3 R4 R2 R3 R4 R5 R6

How many C2 components are needed to form a PXS finished product unit?
 Product Structure and Specifications

Solution:
Component C2 is located on Level 3 at the S1 and S2 branches.
On branch S1: On branch S2:
1C 2 2SS1 3S1 6C 2 1C 2 4 SS 2 1S1 4C 2
x x = x x =
SS1 S1 1PXS 1PXS SS 2 S1 1PXS 1PXS

Thus, 10 units of C2 components needed to produce a unit of

product PXS.
If it is estimated that 1,000 units of PXS products need to be
delivered to customers; a total of 10,000 units of C2
components need to be produced.
 Product Structure and Specifications
• A bill of materials (BOM) is a comprehensive inventory of
the raw materials, assemblies, subassemblies, parts and
components, as well as the quantities of each, needed to
manufacture a product.
• Example: Skateboard
 BOM - example

Bill of Material
Product Description: Bookcase, metal, 3 shelves
Stock number: 1
Component Quantity
Source
Stock No. Description Required
2 shelf 3 Manufacturing
3 leg 4 Manufacturing
4 Inserts 8 Purchasing
5 Screws 12 Purchasing
 Product Structure and Specifications
Bill of Material
Product Description: Shelf
Stock number: 2
Component
Quantity Required Source
Stock No. Description
6 Sheet metal 3 square feet Purchasing

Bill of Material
Product Description: Leg
Stock number: 3
Component
Quantity Required Source
Stock No. Description
7 Metal Hollow bar 16 feet Purchasing
 Product Structure and Specifications

B. Product specifications
• Specifications are the details design of a component
whether it is purchased or manufactured.
• Examples of product specifications are material type,
size, surface finish, voltage, power etc.
• Product specification information can be obtained from:
 Production drawings
 List of components
 Assembly drawings
 Prototype and mock-up
Production Drawing
List of Components
Assembly Drawing
 Assessing Producibility

• Producibility is a measure of the difficulty of producing a product within

a given tolerance. Producible designs are lower risk, more cost-effective
and repeatable; which enhances product reliability and supportability.
• Designed products need to consider the capabilities of the existing
manufacturing process and use materials that are readily available
without sacrificing their functionality.
• The use of components and size of existing standard tools can reduce
manufacturing costs and time.
 Avoid designing holes that are not the same size as standard drill
points.
 In general, the tighter the tolerance, the higher the manufacturing
cost.
 Determining the Product
Manufacturing Process

• The process can be determined after considering the product

specifications and capabilities of various manufacturing processes.
• Factors to be considered are:
 Suitability of materials and processes.
 The ability of the process to produce components within the
required tolerances.
 Possibility to redesign components to facilitate production.
 Process availability.
 Hardware and others necessary to make components.
 Determining the Cost of Each Process

• Each process involves two types of costs namely Fixed Cost (FC) and
Variable Cost (VC)
• Fixed Cost (FC) does not depend on the number of product units
produced. Example: building costs, rent, overhead and machinery.
• Variable Cost (VC) is the cost that changes directly according to the
number of units of product produced. Example: cost of raw materials,
fuel, labour, consumables.
• Thus, Total Cost = Fixed Cost + (Variable Cost x number of product units)
TC = FC + (VC x Q)
 Continue…

Example 1:

Fixed cost and variable cost data for three different processes to produce
product M are given in the following table:
Process Fixed Cost(FC) Variable Cost (VC)
A RM0 RM8
B RM2,000 RM6
C RM8,000 RM4

Determine the production range of each process so that production costs are
economical.
 Continue…

Solution:

RM A B C

8,000

2,000

0
Q1 Q2 Q3 Q
 Continue…

Point Q1 (Process A & B):

Solve the equation of total costs for process A and B
TCA = TCB
0 + (8 x Q1) = 2000 + (6 x Q1)
Q1 = 1,000 unit

Point Q2 (Process A &C)

Solve the equation of total costs for process A and C
TCA = TCC
0 + (8 x Q2) = 8000 + (4 x Q2)
Q2 = 2,000 unit
 Continue…

Point Q3 (Process B & C)

Solve the equation of total costs for process B and C
TCB = TCC
2000 + (6 x Q3) = 8000 + (4 x Q3)
Q3 = 3,000 unit

 The range of economic quantity for each process are:

Process A: less than 1,000 units
Process B: 1,001 to 3,000 units
Process C: more than 3,000 units
 Continue…

Example 2:
For a manufacturing process:
Fixed Cost (FC) = RM100,000
Variable Cost (VC) = RM100 per unit
Sale Price = RM200 per unit
a. Calculate the break-even point and plot the break-even chart.
b. What is the quantity of product that needs to be sold to make a profit of
RM20,000
c. If the Fixed Cost increases to RM125,000 and the Variable Cost
decreases to RM90, determine a new break-even point.
 Continue…
Solution:
RM TR = Rev *Q
a. At the break-even point,
Total Cost = Total Revenue
FC + VC *Q = Rev * Q TC
Q= FC
100
Rev – VC
= 100,000
100k
200 – 100
= 1,000 unit

b. The quantity to be sold for a profit of RM20,000

Q = FC + SP Q BEP
Rev – VC
= 100,000 + 20,000
200 – 100
= 1,200 unit
 Continue…
Solution:

c. If Fixed Cost increases to RM125,000 while Variable Cost decreases to

RM90;
Q= FC
Rev – VC
= 125,000
200 – 90
= 1,137 unit
 Determining the Sequence of
Operations
• The sequence of operations is developed based on:
i. Minimize material handling to avoid cross or double movement.
ii. Ensure the next process does not damage the previous process.
iii. Perform as many operations as possible on the same machine so
that tolerances and quality can be maintained.
 Document the Process

• Selected processes need to

be maintained so that this
information can be used in
the production space.

• One way to record the

process is to use the
Operating Process Chart.
The symbols used in this
chart are shown here.
Continue…