Manufacturing Systems
By Dr Mohammed Arif– licensed under the Creative Commons
Attribution – Non-Commercial – Share Alike License
http://creativecommons.org/licenses/by-nc-sa/2.5/
Manufacturing Systems
Integrating Resources to satisfy
customers and achieve the strategic
goals of the organization
Considerations and Constraints
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Product Complexity
Construction Systems
Delivery Expectations
Market Demand Characteristics
Physical Considerations
Output
Measures
Input
Measures
Utilization
Peak Capacity
Effective Capacity
Capacity Cushions
Timing and Sizing Expansion
Linking Capacity with Other Decisions
Estimate Future
Capacity
Requirements
Identify Gaps
Develop
Alternatives
Evaluate
Alternatives
Dominant
factors
secondary
factors
labour climate
ability to expand
proximity to customers
construction costs
quality of life for employees
proximity to suppliers
proximity to parent
company’s facility
taxes and real estate costs
existing transport
infrastructure
available modes of
transportation
insurance costs
competition for the
workforce
local zoning and
pollution ordinances
attitude of community
towards their kind of
business
political stability
local laws and
regulations
cultural factors
local taxes and
duties
connectivity with the
outside world
weighting the
site criteria
Break-even
analysis
Centre of
gravity method
plan the system
plan the use of
the system
purpose of the
forecast
time horizon
a forecasting
technique
data
Prepare the
forecast
Monitor the
forecast
maintain a level
of customer
satisfaction
minimize the cost
of storing the
inventory
(carrying cost)
Inventory
tracking system
Reliable cost
information
Forecast of
demand and lead
time
Inventory
classification
system
Only one product
is considered in
the model
Demand is
reasonably
constant
Annual demand
requirements are
known in advance
Demand is
reasonably
constant
Lead times are
constant
Each order is
received in
single delivery
Only one item is considered
at a time
Annual demand is certain
and known
The usage rate is
constant
Usage occurs continuously
but the production occurs in
batches
The production rate is
constant
Lead time does not vary and
is known
There are no quantity
discounts
Total cost = Carrying cost + Ordering cost +
Purchasing cost
= (Q/2)H + (D/Q)S + PD
Test yourself
• Manufacturing systems are the glue which holds
together the various components which enable an
enterprise deliver the end items to its ultimate
consumer in a timely manner in conformance with his
or her expectation and at reasonable price. (T/F) Ans.T
• In Manufacturing Systems each company must
consider at least these five factors. (T/F) Ans.T
• There are two types of capacity measure, output
measures and input measures. (T/F) Ans.T
• There are three major capacity strategies. (T/F) Ans.T
• Forecasting process can be divided into six major steps.
(T/F) Ans.T
References
• Ferdows, K., (March-April 1997). “Making the Most of Foreign Factories”,
Harvard Business Review, 73-88.
• Stevenson, W.J., (2004), “Operations Management”, McGraw Hill