Process Choice and Layout Decisions in Manufacturing and Services

19 important questions on Process Choice and Layout Decisions in Manufacturing and Services

Managers face a plethora of choices when deciding on a speific process. What are a few general principles to keep in mind when selecting and implementing a manufacturing process?

1) Selecting an effective manufacturing process means much more than just choosing the right equipment. Manufacturing process also includes people, facilities and physical layouts, and information systems.
2) different manufacturing process have different strengths and weaknesses. Some are best suited to making small numbers of customized products, while others excel manufacturing processes support the overall business strategy.
3) The manufacture of a particular item might require many different types of manufacturing processes, spread over multiple sites and organizations in the supply chain.

What has changed in manufacturing over the past 20 years?

High quality is no longer a way for manufactures to differentiate themselves from competitors but rather a basic requirement of doing business.

What is the continuous flow process (manufacturing process)?

Continuous flow processes closely resemble production line processes in that they produce highly standardized products using a tightly linked, paced sequence of steps. (food processing, chemicals, etc)
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What are Flexible manufacturing systems (FMSs)?

Highly automated batch processes (discussed later) that can reduce the cost of making groups of similar products.

What is a production line?

A type of manufacturing process used to produce a narrow range of standard items with identical or highly similar designs.
they follow first a Product-based layout  where resources are arranged sequentially according to the steps required to make a product

What is batch manufacturing (manufacturing process)?

When items are moved through the different manufacturing steps in groups, or batches.

e.g. 50 engines are build by the same machine. After all engines went through the machine, the entire batch will be moved to the next machine, etc.

low batch is less than 500 units
high batch is more then 500 units

What are two drawbacks of product lines?

1) high volumes are required to justify the required investment in specialized equipment and labour.
2) lines are inflexible with regard to products that do not fit the design characteristics of the production line

What is the continuous flow processes?

A type of manufacturing process that closely resembles a production line process. The main difference is the form of the product, which usually cannot be broken into discrete units.

Appart from that job shops must be very flexible in their planning. Job shops typically follow a functional layout what is this?

A type of layout where resources are physically grouped by function

What is a hybrid manufacturing process?

A general term referring to a manufacturing process that seeks to combine the characteristics, and chance advantages, of more than one of the classic processes.

What are the machining centres?

A type of manufacturing process that completes several manufacturing steps without removing an item form the process

What is the level of customer contact?

The degree of customer contact determines the relative importance of front-room and back-room operations in a service process.

as the degree of customer contact increases -> more of the service package is provided in the front room. Decreases -> more are provided by back-room operations.

What is group technology?

A type of manufacturing process that seeks to achieve the efficiencies of a line process in a batch environment by dedicating equipment and personnel to the manufacture of products with very similar manufacturing characteristics. Group technology cells typically follow a cellular layout.

What is the front- and back room about?

Front room = point (physical or virtual) where the customer interfaces directly with the service organization. (sales floor, help desk, etc.)

Back room = part of a service operation that is completed without direct customer contact. (package sorting ad FedEx, testing medicine, etc)

What is a product family?

In group technology, a set of products with very similar manufacturing requirements.

One of the most interesting developments in manufacturing in recent years is 3D printing what is 3D printing?

An additive manufacturing process that creates a physical object form a digital design.

What are the four levels of customizaiton and what does it mean?

Make-to-stock (MTS) products= products that require no customization. They are typically generic products and are produced in large enough volumes to justify keeping a finished goods inventory.
assemble-to-order (ATO) or finished-to-order products= products that are customized only ate the very end of the manufacturing process.
make-to-order (MTO) products= products that use standard components but have customer-specific final configuration of those components
Engineer-to-order (ETO)= products that are designed and produced from the start to meet unusual customer needs or requirements. They represent the highest  level of customization.

What are downstream activities?

In the context of manufacturing customization, activities that occur at or after the point of customization

Completing activities offline has two advantages what are those?

1) it reduces lead time to the customer, as only the downstream activities remain to be completed.
2) law of variability, -> according to roger schmenner and Morgan Swink, 'the greater the random variability either demanded of the process or inherent in the process itself or in the items processed, the less productive the process is.' This law is relevant to customization because competing activities offline helps isolate these activities from the variability caused by either the timing or the unique requirements of individual customers

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