Lecturer’s Info
MANUFACTURING SYSTEMS
IM1029
LÊ PHƯỚC LUÔNG
EDUCATION BACKGROUND
Email: lpluong@hcmut.edu.vn

Production & Operations Management Dept. School of Industrial Management

Consultant hour:

Monday: 9:00 – 12:00 AM
Room 106B10
Instructor:
LE PHUOC LUONG (PhD)
INDUSTRIAL EXPERIENCES
Research Interests: Supply chain
management, Lean production,
Operations management.



Course Objective
This course enables learners to understand the contemporary production system of
industrial production in Vietnam as well as advanced industrial nations. This course also
helps learners acknowledge the modern production system and approach to the
production reality.
Learning Outcomes
1.
Acquire
knowledge
of
the
functional areas of manufacturing
systems
2.
Identify
and
analyze
a
the
principles of the manufacturing
system, monitoring system and
managers’ roles
3.
Conduct quantitative
decision
making
manufacturing system
4.
Communicate and work in team
effectively
skills
in
of
the
COURSE ASSESSMENT



Group assignment: 30%
Quiz - Attendance in class (AIC): 10%
**Exams (multiple-choice & writing)

Mid- exam: 40’ (chapters 1,2,3): 20%

Final Exam: 60’ (chapters 4,5,6,7,8):
40%
** 1 cheat sheet (2-side handwritten A4 paper) is
allowed.
2007 Bachelor of Arts – Industrial
Management (HCMUT)
2012 Master of Business Administration
(Umea University, Sweden)
2020 Doctor of Applied Engineering in
Supply chain (Quebec University,
Canada)
2007 Sales supervisor at Kimberly –
Clark
2014 Process improver at Thien Tu call
center
2020 Purchasing & inventory manager at
Innocar Canada
Group assignment: 30%
Course Schedule
Week
Lesson
36
Course introduction & Chapter 1
37, 38
Chapter 1 (continued)
39
Chapter 2
40
Chapter 3
Dr. Luong
41
MID-TERM EXAM
Dr. Luong
42
Chapter 4
43, 44, 45
Chapter 5
46
Chapter 6
47
Chapter 7
48, 49
Chapter 8
50
Group presentation
Activities
Instructor

Dr. Luong
Quiz in class
Choose one of the chapters of the course (chapters 2-8)
Choose a manufacturing firm and describe its manufacturing systems in accordance
with the theories of the chosen chapter.

Analyze the strengths and weaknesses of the above systems.

Present the similarities and differences between the systems in practice and theories
mentioned in the chosen chapter.

Recommend possible solutions to improve the systems.
Note: If your group chooses and visits a real manufacturing firm, please show the
photos (with the members in the photos) to get a 1-point bonus for your group
assignment.


Dr. Luong
Dr. Luong
Dr. Luong
Quiz in class
Each team (see the team list in Excel file) prepares a report (MS Word) and
presentation (PowerPoint) for:
Dr. Hung
Dr. Luong
Dr. Luong
Quiz in class
Dr. Hung

Remark: 10 minutes per team for presentation, all members have to be
present, at week 50 as scheduled. Submit your report and presentation files
on BKEL at least 1 day before the date you present.
RULES
1. NO MOBILE PHONES IN CLASS.
2. NO MORE THAN 15 MINUTES LATE
3. GET A BONUS FOR YOUR ATTENDANCE OF ALL CLASSES
(+0.5 POINT), AND BEING ACTIVE FOR CLASS
DISCUSSION (+0.5 POINT). THE BONUS IS APPLIED FOR
GROUP ASSIGNMENT AND MID-TERM EXAM.
4. YOU ARE NOT ALLOWED TO TAKE THE FINAL EXAM IF
YOU ARE ABSENT FOR MORE THAN 3 CLASSES.
Part 1 – Fundamental Concepts
Chapter 1
INTRODUCTION TO MANUFACTURING SYSTEM
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Contents:
1.1 Manufacturing industries
1.1 Manufacturing industries.
Basis industries in general: Manufacturing or Service?
Advertising
Aerospace
Auto-motive (cars, trucks, buses)
Beverages
Building materials
Cement
Chemicals
Clothing
Drugs, soaps, cosmetics
1.2 Types of production.
1.3 Function in manufacturing.
1.4 Organization and information processing
1.5 Automation strategies
1.6 Advanced manufacturing charactreistics
1.7 Production concepts and mathematical models
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1.1 Manufacturing industries
1.1 Manufacturing industries
Basis industries in general: Manufacturing or Service?
Manufacturing industry vs Process industry
Industries
Equipment/machinery
Aerospace
Car
Beverage
Building materials
Cement
Chemicals
Clothing
Soaps, cosmetic,...
Financial (Banks, investment companies, loans)
Foods
Health care service
Hotels / restaurants
Insurance
Representative companies
Boeing,…
General Motors, Toyota, Mitsubishi…
Coca-Cola, Pepsi-cola, Tribeco,…
US. Gypsum, Southern steel,…
Sao mai, Hà tiên,..
EI. Du pont, Nippon,
Hanes-Corp., V. Thắng, Thắng lợi,…
Proctor&Gambles, Unilever, Kao,…
Transportation (railroad, Airline, trucking,...)
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1.1 Manufacturing industries
1.1 Manufacturing industries
Classification: Manufacturing industries:
Classification: Manufacturing industries:
Produce discrete items: cars, mobile, TV, clothes,...
Produce discrete items: cars, mobile, TV, clothes,...
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1.1 Manufacturing industries
1.1 Manufacturing industries
Classification: Process industries:
Classification: Process industries:
Produce continuous items: liquid, pure water,
beverage, beer, milk
Petro processing
Produce continuous items: liquid, pure water,
beverages, beer, milk
Paint processing
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1.1 Manufacturing industries
1.1 Manufacturing industries
Three classifications in manufacturing industries:
Yarn Co.: basis producer
Input: silk-worm,...
Output: thread,...
a. Basic producer: transforms natural resources into raw
materials (for others industrial firms)
Textile Co.: converter
Input: thread,...
Output: clothing,
b. Converter: intermediate link in the chain (semiproducts or components).
Garment Co.: fabricator
Input: clothing, button,
thread,...
Output: shirts, clothes
c. Fabricator: final products assembly to market.
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1.1 Manufacturing industries
1.2 Types of production
Tires M. Co.: converter
Input: rubber,...
Output: inner tubes & tires,...
Plastic Co.: converter
Input: raw materials,...
Output: plastic components,
Honda Co.: fabricator
Input: moto-bike
components,...
Output: Airblade, Wave,
Vision, Future,...
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1. Jobbing / Project Production: very small volume
2. Batch Production: small volume
3. Mass Production: large volume
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1.2 Types of production
1.2 Types of production
1. Jobbing / Project Production: very small volume
1. Jobbing / Project Production: very small volume
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1.2 Types of production
1.2 Types of production
1. Jobbing / Project Production: very small volume
1. Jobbing / Project Production: very small volume
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1.2 Types of production
1.2 Types of production
2. Batch Production: small volume
2. Batch Production: small volume
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1.2 Types of production
1.2 Types of production
3. Mass Production: large volume
3. Mass Production: large volume
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1.2 Types of production
1.3 Functions in manufacturing
Mass production
Batch production
Jobbing
Raw
materials
Volume/quantity
1. Processing
2. Assembly
3. Materials handling
4. Inspection and test
Items
Production rate
Worker skills level
Multi-functional
Equipment
single-functional
5. Process control
Special tools
Process focus
Plant Layout
Product focus
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1.3 Functions in manufacturing
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1.3 Functions in manufacturing
1. Processing
a. basic processes: raw material to initial form  make
initial sharp of product
b. secondary processes: initial form to final desired
geometry  final sharp
2. Assembly operations: assembly/joining process 
make/combine all components to final products.
3. Material handling: moving & storing materials,
components for next processing and assembly
operations  materials/components available to
production planning.
c. Operations to enhance physical properties:
improved all product functions  value added.
d. finishing operations: final process performed 
smooth, attractive to customers
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1.3 Functions in manufacturing
1.4 Organization & Information processing
4. Inspection and test: generally considered part of
quality control  to test/confirm for items’
qualification to customers
1. Business functions:
Customer negotiation:
a/. Make to order contracts (specific orders);
5. Control process: both regulations for individual jobs
& assembly operations, and the management of
plant-level activities
b/. Meet customers’ demand from stock (make to
stock contracts);
c/. Forecasting demand contracts (based on forecast
information/data).
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1.4 Organization & Information processing
1.4 Organization & Information processing
2. Product/item design:
3. Production planning:
Including some documents as follows:
- Specific product design drawings,
- Product characteristics and materials requirement
Production planning and implementation based on:
+ final design of item,
+ technology process/facilities requirements,
+ and production/implementation,…
4. Production control:
Inspection and test/monitoring (product, job,
process, machines,…).
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1.5 Automation strategies (10)
1.5 Automation strategies (10)
1. Specialization of operations.
6.
Improved material handling and storage.
2. Combined operations.
7.
Online inspection.
3. Simultaneous operations.
8.
Process control and optimization.
4. Integration operations.
9.
Plant operations control.
5. Increased flexibility.
10. Computer integrated manufacturing - CIM.
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1.6 Advanced manufactuirng characteristics (9)
1.6 Advanced manufactuirng characteristics (9)
1. Top managers pay more attention to their
production.
6. Old/disadvantage mass production tools are
troublesome to develop.
2. Quality problems consideration.
7. Mechanization consideration.
3. Human resources consideration.
8. Application of Computer and software in
production and operations management.
4. Cost factors consideration.
9. Application of useful theories.
5. Specialization consideration.
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1.7 Production concepts & mathematical model
1.
1.7 Production concepts & mathematical model
If total times spending at each Work station (WS) are equivalent, then
Manufacturing Lead Time - MLT
TMLT = n (Ts + QTp + Tn)
MLT includes all processing time at each machine/work station
(2)
+ For jobbing case (Q=1)
m
TMLT =  (Ts + QTp + Tn )i
(1)
TMLT = n (Ts + Tp + Tn)
i =1
(3)
+ For mass production (with one machine case)  Q is very high.
where: i: machine order in process
TMLT = QTp
m: number of machines that products will be processed
or
TMLT = Tp
(1 item) (4)
+ For flow line (including n machines)
Q: product volume/batch;
Ts: set up time/machine
Tn: none-operating time;
Tp: unit processing/service time
TMLT = Q(Tt + max[Tp])i
Or
TMLT = (Tt + max[Tp])i
(5)
(1 item)
(5’)
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1.7 Production concepts & mathematical model
Example: one order includes 50 items to produce over
8 work stations in a factory. The set-up time (everage)
for each WS is 3 hours, the processing time (everage)
is 6 munites / 1 item / 1 WS. The none-productive
time (everage) is 7 hours / 1 WS.
Determine the completion time of this order (days),
given that working time is one shift (7 hours) per day.
Hint: manufacturing
formula (2)
lead
time
is
calculated
as
1.7 Production concepts & mathematical model
2. Production rate – Rp
Production rate of a production line/machine is
product quantity produced per hour (hourly rate)
+ For batch production, processing time at kth WS:
(Tb)k = (Ts + QTp)k
(6)
If the processing time at each WS is equivalent, then
processing time is calculated as follow:
TMLT = 8x(3 + 50x0.1 + 7) = 120 (hours)
Required days:
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(Tb)m = (Ts + QTp)m
120 / 7 = 17.14 (days)
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(7)
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1.7 Production concepts & mathematical model
2. Production rate – Rp
2. Production rate – Rp
If defective rate is q then required volume is Q/(1–q)
(Tb)m = (Ts + QTp /[1-q])m
1.7 Production concepts & mathematical model
(7’)
For jobbing, Q = 1, manufacturing lead time: (Ts+Tp )
(9’)
Rp = 1/(Ts + Tp)m
The average processing time per unit as follow:
(Tp) = (Tb)m /Q
For mass production, processing time: (TMLT = Tp )
(8)
(9’’)
Rp = 1/(Tp)
So production rate of certain WS as follow:
Rp = 1/(Tp) = Q/(Tb)m
(9)
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1.7 Production concepts & mathematical model
3. Capacity – Ca
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1.7 Production concepts & mathematical model
3. Capacity – Ca
Capacity – Ca is total quantity of items
Capacity
Weekly/monthly
produced in a consideration time 
Units
week/month !
Total items in factory
 Capacity and productivity are the same
vs
Productivity
Hourly
Units
Total items in machine
dimensions (unit of product/certain period).
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1.7 Production concepts & mathematical model
3. Capacity – Ca
1.7 Production concepts & mathematical model
3. Capacity – Ca
Example: a factory has 6 machines (lathe) that can
Denoted that:
produce a certain item, production manager said that
+ W: number of WS (No. of machines) in factory;
this factory runs 10 shifts each week, with realistics
+ Rp: productivity (in consideration time – hour)
operating time is 6,4 hours per shift, and equipment
+ H: time per shift (in hours)
productivity is 17 items per hour. Determine the
+ S: No. of shifts (in consideration time – week/month)
Ca = W x SxH x Rp
(10)
weekly capacity of this factory?
Ca = 6 x 10x6,4 x 17 = 6528 (items/week)
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1.7 Production concepts & mathematical model
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1.7 Production concepts & mathematical model
3. Capacity – Ca
3. Capacity – Ca
If products required N machines ( production line
includes N machines) to finish N jobs (work
elements), then Ca can be calculated as follows:
If factory can produce some types of product, then
we denoted i as product’s kinds.
Ca can be calculated each type of product separately
as follows :
Ca = (W x SxH x Rp)/N
(11)
Cai = (W/N)i x SxH x Rpi
(11’)
So the (W/N) is number of lines in factory
So the (W/N)i is number of lines produce item i.
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1.7 Production concepts & mathematical model
3. Capacity – Ca
1.7 Production concepts & mathematical model
3. Capacity – Ca
If we replace (weekly) capacity by (weekly) demand
then we have an other formula to control demand
WxSxH = DxN/Rp
(12)
With multi-product cases, right hand size (RHS) is
satisfation as follow:
total demand.
WxSxH = DxN/Rp
(12)
With a certain product i, RHS is demand of i product
and formula can be rewritten as follow:
 Three factors affect the factory capacity that
satisfies weekly demand.
WixSxH = DixNi/Rpi
(12’)
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1.7 Production concepts & mathematical model
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1.7 Production concepts & mathematical model
3. Capacity – Ca
3. Capacity – Ca
Example: 3 types of items are produced at some
similar WS, the information (past data) is given in the
below table:
Hint:
Item
Weekly demand
Productivity (item/hour)
1
2
3
600
1000
2200
10
20
40
item 1:
D1/RP1 =
600/10
=
60 hours,
item 2:
D2/RP2 = 1000/20
=
50 hours,
item 3:
D3/RP3 = 2200/40
=
55 hours,
Total required time: (60+50+55) = 165 hours,
Total required time for each WS: 10x6.5 = 65 hours,
Determine number of similar WS to meet all the
above demand, given that this factory runs 10 shifts
per week, and the operating time is 6,5 hours / shift,
No. of machine in each WS is N = 1.
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Min. No. of WS: 165/65 = 2.54 Work stations,
 The minimum No. of WS is 3 to meet all product demand.
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1.7 Production concepts & mathematical model
4. Utilization – U
U
is
resource
1.7 Production concepts & mathematical model
4. Utilization – U
using
ratio
(equipment,
lines,
machines,...
Example: a production line can run 65 hours/week,
and this line can make 20 units/hour.
+ relative to using planning/production planning;
This week this production line only produces 1000
units, and the rest time is idle time.
+ [operating time] / [available time]
+ [realistic volume] / [capacity]
1. Determine the capacity of this line,
2. Determine the last week utilization (U) of this line.
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1.7 Production concepts & mathematical model
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1.7 Production concepts & mathematical model
4. Utilization – U
4. Utilization – U
Hint:
+ related to machine operating time (running time of
Capacity of this line: Ca = 65x20 = 1300 units/week,
machine), it is considered as a very useful factor to
Utilization of this line: U = 1000/1300 = 76.92%
control
and
measure
the
equipment
(such
as
reliability of equipment), this parameter indicates
the availability of machines/equipment.
Real operating time of last week:
TR = 1000/20 = 50 hours
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1.7 Production concepts & mathematical model
4. Utilization – U
Denoted:
5. Work-in-process – WIP
WIP = (Ca x U) x (TMLT) / (S x H)
MTBF the average time between 2
consecutive failure (Mean Time Between Failures)
MTTR the average repair time (Mean Time To
(11)
where:
Ca: factory capacity in consideration time,
U: utilization of factory equipment,
Repair)
TMLT: processing time/manufacturing lead time,
So, the availability parameter is calculated by formula:
A = (MTBF – MTTR) / MTBF (%)
1.7 Production concepts & mathematical model
(13)
S: number of shifts in consideration time,
H: number of hours for real operating in shift,
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1.7 Production concepts & mathematical model
5. Work-in-process – WIP
5. Work-in-process – WIP
 Number of machine in real operating in factory:
WIP: number of work in process items/un-finished
Nm = WxU x QTp /[Ts + QTp]
items in production line (factory),
WIP = (Ca x U) x (TMLT) / (S x H)
(12)
where:
(11)
W: number of machines in factory,
WIP is the ratio of processing time on available time
in factory.
The total none-operating time (95%)
1.7 Production concepts & mathematical model
U: utilization
Q: averagre lot size
Ts : the set up time of machine,
O. time (5%)
Tp: the processing time of machine,
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1.7 Production concepts & mathematical model
1.7 Production concepts & mathematical model
5. Work-in-process – WIP
5. Work-in-process – WIP
WIP ratio in processing is the ratio of WIP and real
operating machines in factory, can be calcultaed as
follow:
WIP in time ratio is called TIP ratio, can be calculated
as follow:
WIPR = WIP / Nm
(13)
Ideal WIPR is 1:1  each machine makes one WIP at
a period.
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TIPR =
TMLT / (N x Tp)
(14)
Ideal ratio is 1:1  difficult.
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