Reviewer in IE-IMAP

Lesson 1: Production Facilities PLANT LOCATION

PRODUCTION FACILITY  The main aim of any business (manufacturing
or services) is to maximize the profits and to
 Production Facilities and Systems are the
minimize the cost (efficiency).
important aspects of the production
 In this the plant location play the important
management.
role. The location selected should be such that
 Production Facilities allows the smooth
it enables the business to achieve its objectives
transformation of the inputs into the outputs
efficiently.
i.e. manufacturing process with all the
 FACTORS:
required machinery tools manpower etc.
- Nearness to the raw material
 While Production Systems ensures that there is
- Land and labor cost
the proper methods, arrangements, procedure
- Transportation
is adopted to produce different types of goods
- Nearness to related and ancillary
or services.
industries etc.
 Before starting of any production process the
organisation has to decide about the facilities
to produce the same.
PLANT LAYOUT
 Facilities has to be installed on the basis of the
requirement and the availability of the  Layout means arrangement of facilities in a
resources to the organization. particular unit to ensure the smooth and
proper flow of production
 Plant layout refers to the arrangement of
DETERMINANTS OF PRODUCTION FACILITIES machines, handling equipment, storerooms
and tool-racks required for the process of
o Production facilities required by the
production in the plant or factory
organisation is decided by the following:
(manufacturing unit).
- Types of product
 FACTORS:
- Production quantity
- Products
- Market
- Production system
- Product demand
- Purchase and inventory policy
- Competitors for the product
- Safety and personnel policies etc.
- Location
- Product variety
PRODUCTION SYSTEM

FACTORS INVOLVED IN FACILITIES  Production system can be defined as "The

methods, procedure or arrangement which
- Machines and Equipment
includes all functions require to accumulate
- Tools
(gather) the inputs, process or reprocess the
- Technology
inputs and delivers the marketable outputs
- Inspection aid
(goods).
- Process details
- Operating personnel
- Production volume
TYPES OF PRODUCTION SYSTEM orders or are based on the demand forecasts.
Here, the production of items takes place in
 Intermittent production system
lots or batches. A product is divided into
 Continuous production system
different jobs.
 CHARACTERISTICS:
- Made and stocked until demand
INTERMITTENT PRODUCTION
- General purpose machines
 Intermittent means something that starts - Needs production planning and control
(initiates) and stops (halts) at irregular - Possibility of large work-in-progress
(unfixed) intervals (time gaps).
 In the intermittent production system, goods
are produced based on customer's orders. CONTINUOUS PRODUCTION SYSTEM
These goods are produced on a small scale.
 Continuous means something that operates
The flow of production is intermittent
constantly without any irregularities or
(irregular).
frequent halts.
Types of Intermittent Production System  In the continuous production system, goods
are produced constantly as per demand
A. PROJECT PRODUCTION SYSTEM
forecast. Goods are produced on a large scale
 Here, in project production flows, company
for stocking and selling. They are not
accepts a single, complex order or contract.
produced on customer's orders.
The order must be completed within a given
period of time and at an estimated cost. Types of Continuous Production System
 CHARACTERISTICS:
A. MASS PRODUCTION
- Requirement of resources varies
 Here, company produces different types of
- Many agencies are involved
products on a large-scale and stock them in
- Delays takes place Scheduling takes time
warehouses until they are demanded in the
market.
 The goods are produced either with the help of
B. JOB SHOP PRODUCTION
a single operation or uses a series of
 Here, in jobbing production flows, company
operations.
accepts a contract to produce either one or
 CHARACTERISTICS:
few units of a product strictly as per
- Continuous production on market demand
specifications given by the customer. The
- Less work-in-progress Supervision is easy
product is produced within a given period and
- No manual material handling
at a fixed cost. This cost is fixed at the time of
- Continuous flow of material
signing the contract.
 CHARACTERISTICS:
- Production in small lots
B. PROCESS PRODUCTION
- Production according to
 Here, a single product is produced and stocked
- Disproportionate manufacturing cycle
in warehouses until it is demanded in the
time
market. The flexibility of these plants is almost
- Skilled labour
zero because only one product can be
produced.
 CHARACTERISTICS:
C. BATCH PRODUCTION SYSTEM
- High mechanized system Skilled
 In batch production flows, the production
technicians
schedule is decided according to specific
 - Very-less work-in-progress  Utilization: Is the ratio of the time that a
- Production planning and scheduling pre- resource is actually activated relative to the
decided Whole system for one item time that it is available for use

TOYOTA PRODUCTION SYSTEM PROCESS FLOWCHARTING

 The Toyota Production System (TPS) is an  Process flowcharting is the use of a diagram to
integrated socio-technical system, developed present the major elements of a process
by Toyota that comprises its management  The basic elements can include tasks or
philosophy and practices. The system was operations, flows of materials or customers,
developed between 1948 and 1975. The decision points, and storage areas or queues
techniques that were introduced in Toyota  It is an ideal methodology by which to begin
production system are: analyzing a process
- Poke-yoke
- JIDOKA
- Just-in-time FLOWCHART SYMBOLS
- Kanban-cards
Tasks or operations Examples: Giving an
admission ticket to a
customer, installing a
JUST IN TIME engine in a car, etc.
 Just-in-time (JIT) means right parts needed in
the assembly line reaches the assembly at the Decision Points Examples: How much
change should be
right time and right amount.
given to a customer,
 Just in time (JIT) is a production strategy that which wrench should
strives to improve a business return on be used, etc.
investment by reducing in- process inventory
and associated carrying costs. Storage areas or Examples: Sheds, lines
queues of people waiting for a
BENEFITS OF JIT
service, etc.
 Product cost
 Quality
 Design Flows of materials or Examples: Customers
 Productivity and flexibility customers moving to a seat,
 Administrative efficiency mechanic getting a
tool, etc.

Lesson 2: Process Analysis

Process Analysis Terms TYPES OF PROCESS

 Process: Is any part of an organization that o Single-stage Process

takes inputs and transforms them into outputs
 Cycle Time: Is the average successive time Stage 1
between completions of successive units
o Multi-stage Process  Only activated in response to an actual order
 Both work-in-process and finished goods
Stage 1 Stage 2 Stage 3 inventory kept to a minimum
o Make-to-stock:
 Process activated to meet expected or forecast
demand
 Customer orders are served from target
stocking level
o Multi-stage Process with Buffer
 A buffer refers to a storage area between PROCESS PERFORMANCE METRICS
stages where the output of a stage is placed ¿ O peration time=Setup time+ Run time
prior to being used in a downstream stage
¿ Throughput time=Average time for a
Buffer Stage 2
Stage 1 unit ¿ move throughthe system
Throughput time
¿ V elocity=
Value−added time
Other Process Terminology ¿ Cycle time=Average timebetween
o Blocking: completion of units
 Occurs when the activities in a stage must
1
stop because there is no place to deposit the ¿ Throughput rate=
Cycle time
item just completed.
 If there is no room for an employee to place a Actual output
¿ Efficiency=
unit of work down, the employee will hold on Standard Output
to it not able to continue working on the next
Output
unit ¿ Productivity=
Input
o Starving:
 Occurs when the activities in a stage must stop Time Activated
¿ Utilization=
because there is no work Time Available
 If an employee is waiting at a work station
and no work is coming to the employee to
process, the employee will remain idle until the Cycle Time Example
next unit of work comes  Suppose you had to produce 600 units in 80
o Bottleneck: hours to meet the demand requirements of a
 Occurs when the limited capacity of a process product. What is the cycle time to meet this
causes work to pile up or become unevenly demand requirement?
distributed in the flow of a process
 If an employee works too slowly in a multi- Answer: There are 4,800 minutes (60
stage process, work will begin to pile up in minutes/hour x 80 hours) in 80 hours. So the
front of that employee. In this is case the average time between completions would have to
employee represents the limited capacity be: Cycle time = 4,800/600 units = 8 minutes.
causing the bottleneck.
o Pacing
 Refers to the fixed timing of the movement of Process Throughput Time Reduction
items through the process Perform activities in parallel
o Make-to-order: Change the sequence of activities
 Reduce interruptions equipment that is supervised by human
workers

Lesson 3: Manufacturing Industry

Manufacturing-Technological
o Application of physical and chemical processes
Importance of Manufacturing
to alter the geometry, properties, and/or
 Making things has been an essential human appearance of a starting material to make
activities since before recorded history. parts or products
 Manufacturing is important aspect in every
country and most other developed and
developing nations.
- Technologically
- Economically

Technological Importance
Technology - the application of science to provide
society and its members with those things that are Manufacturing-Economic
needed or desired
o Transformation of materials into items of
 Technology provides the products that help greater value by one or more processing
our society and its members live better and/or assembly operations
 What do these products have in common?
- They are all manufactured
 Manufacturing is the essential factor that
makes technology possible

What is Manufacturing?
 The word manufacture is derived from two
Latin word manus (hand) and factus (make);
the combination means “made by hand”
Manufacturing Industries
 “Made by hand” accurately described the
fabrication methods that were used when the Industry consists of enterprises and organizations
English word “manufacture” was first coined that produce or supply goods and services
around 1567 A.D.
Industries can be classified as:
 Most modern manufacturing operations are
accomplished by mechanized and automated
1. Primary industries- cultivate and exploit  The number of different product types made
natural resources e.g., agriculture, mining, each year in a factory can be counted
forestry, fishing, livestock, petroleum  When the number of product types made in
2. Secondary industries - take the outputs of the factory is high, this indicates high product
primary industries and convert them into variety
consumer and capital goods e.g., aerospace,  Although P is quantitative, it is much less exact
construction, food processing, publishing than Q because details on how much the
3. Tertiary industries - service sector e.g., designs differ is not captured simply by the
banking, education, health and medical, real number of different designs
estate, restaurant  Soft product variety-small differences between
products, e.g., between car models made on
the same production line, with many common
Manufactured Products parts
 Hard product variety-products differ
 Final products divide into two major classes:
substantially, e.g., between a small car and a
1. Consumer goods - products purchased
large truck, with few common parts (if any)
directly by consumers (Cars, clothes, TVs,
tennis rackets) Manufacturing Capability
2. Capital goods - those purchased by
 A manufacturing plant consists of processes
companies to produce goods and/or provide
and systems (and people) to transform a
services (Aircraft, computers, communication
certain limited range of materials into
equipment, medical apparatus, trucks,
products of increased value
machine tools, construction equipment
 The three building blocks - materials,
processes, and systems - are the subject of
modern manufacturing
Product Quantity Q
 Manufacturing capability includes:
 The quantity of products Q made by a factory 1. Technological processing capability
has an important influence on the way its 2. Physical product limitations
people, facilities, and procedures are 3. Production capacity
organized
 Annual quantities can be classified into three
ranges:
Technological Processing Capability
Production range Annual Quantity Q
Low production 1 to 100 units  The set of available manufacturing processes
Medium production 100 to 10,000 units in the plant (or company)
High production 10,000 to millions of  Certain manufacturing processes are suited to
units certain materials, so by specializing in certain
processes, the plant is also specializing in
certain materials
Product Variety  Includes not only the physical processes, but
also the expertise of the plant personnel
 Product variety P refers to different product - A machine shop cannot roll steel
types or models produced in the plant - A steel mill cannot build cars
 Different products have different features
- They are intended for different markets
- Some have more parts than others
Physical Product Limitation
 Given a plant with a certain set of processes,
there are size and weight limitations on the
parts or products that can be made in the
plant
 Product size and weight affect:
- Production equipment
- Material handling equipment
 Production, material handling equipment, and
plant size must be planned for products that
lie within a certain size and weight range

Product Capability
 Defined as the maximum quantity that a plant
can produce in a given time period (e.g.,
month or year)under assumed operating
conditions
 Operating conditions refer to number of shifts
per week, hours per shift, direct labor
manning levels in the plant, and so on
 Usually measured in terms of output units,
such as tons of steel or number of cars
produced by the plant
 Also called plant capacity