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Introduction to Manufacturing Logistics & Simulation - Coggle Diagram
Introduction to Manufacturing Logistics & Simulation
Introduction- Making a product
ore (raw material) to steel bar(final product), its value increases by 153%
Every additional process(smeling,refining) process add values.
The final product(steel bar) is more VALUEABLE and USEFUL product to customer
Product and Services Realization
Human Resource
Manage people
Manager/Engineer/buyers
Others- finance, transportation
Production worker, supervisor
Materials
Machine or Processes
Example
Ore(raw material)
Process(remove impurities & add carbon)
Steel(finished Goods)
Get BEST Value out of a resource
Production PROCESS must be
designed
to
make products most efficiently
Once processes exist, operation are managed, so that they
produce goods the most economically
.
The major way in which management plans and controls operation is
through flow of material
Managing Operations
means
planning for and controlling resource used in the processes: labour, material, capital
If right material
in the right quantities are
not available
at the right time, process cannot produce as it should
Labours and machines will be poorly utilized
. The profitability of a company will be threatened
Operating Environment
Factors affecting Operating Environment
Government Regulation
Global Trade, Safety, Taxation, Product Liability
Economy
Recession/bull market, aging population, birth rate
Competition(WorldWide)
Communication, transport & movement, fierce competition
Customer Expectation
Fair price, higher quality, delivery lead time, pre/post sales service, product and volume flexibility
Quality
fair price, higher quality, delivery lead time, pre/post sales service, product and volume flexibility
Order Winner versus Order Qualifier
Order Qualifier
Customer needs & requirement
(price, quality & feature others.)
Order Winner
Product and Service Characteristics
that persuade customer to buy
Must strive to be the
Order Winner
Must strive to reach the
minimum requirement of Order Qualifier
Order Winner & Order Qualifier are dynamic in nature because of dynamic change in technology, competitor, customer need
Manufacturing Strategy
Creating order winner & qualifier
Order Winner versus Order Qualifier
Order Qualifier
Customer needs & requirement
(price, quality & feature others.)
Order Winner
Product and Service Characteristics
that persuade customer to buy
Must strive to be the
Order Winner
Must strive to reach the
minimum requirement of Order Qualifier
Order Winner & Order Qualifier are dynamic in nature because of dynamic change in technology, competitor, customer need
Product lifecycle adnd manufacturing strategy
Product Lifecycle & Winning Strategies
3.Growth
Quality & Delivery
is increasingly
more important
4.Maturity
Price & Delivery
become
more important (Order Winner)
2.Introduction
Design & Availability of product
is more important
than
Price
5.Decline
1.Development
Graph depicts the 5 stages of Product Lifecycle
Strategy for Highly Market Oriented Company
1.Its operations
must have a strategy
that allows it to supply the
needs of marketplace
and provide fast
on-time delivery
Its focuses on
meeting or exceeding customer expectation
and
on order winner
it ensures
all functions
of a company must
contribute
toward a
winning strategy
. Manufacturing Strategy
Customers want
lead time
to be
as short as possibe
Manufacturer must
determine the best strategy to meet customer want
Engineer-To-Order
Longest Lead Time
Product specification requires
engineering design and customization
(Design(First Left Box) & Purchase(in yellow))
2.Purchase Parts(Yellow) only when needed for manufacturing
Extra Lead Time
includes product
design & purchasing
lead time
Make-To-Order
1.Start
making
product upon
confirmed customer order
2.
No or little design
components that keep as inventory(Blue Box)
Little Design Time
required and
part inventory readily available
(Blue Box)
Start to
manufacture
after received customer order
Configure-To-Order
Allow customers to
configure features and options
Little design time for components; options and features are readily available
Customers involve in
selecting & option
Starts to
assemble
to according to customer order
Assemble-To-Order
Assemble
according to customer order
Use
standard parts
that not require design or customization.
These parts can be inventoried
Require
shorter lead time
Postponement
Another application
Assemble-To-Order
Shift product differentiation closer to consumer
by
postponing identity change
to the
last possible supply chain location
Example
Shipped in bulk using cheapest transportation ocean mode to Singapore
Shipper Distibution Center/Warehouse
Australia, Thailand, Indonesia & Malaysia customer placed orders
Value-added processed
Thailand
Malaysia
Australia
Customization- add ram, paper, software, etc...
Indonesia
Male-To-Stock
Shortest Lead Time
Supplier manufacturers the goods and sells a
finished good inventory
Manufacturing Strategy Types
Red Lines represent Lead Times
4 Manufacturing Strategy
Supply Chain
Critical issues & focus
Flow
and
sharing of information
inventory level
material
flow
customer order
inventory
part
inventory, etc..
Flow
of
material
material flow
through
supply chain
Transfer
of
fund
Revenue
collection and
payment
payment methods
Suppliers
Manufacturers
Distribution System
Customers
Deliver
product and services
to
customers
Phase 3(Before Distribution System) - Physical Distribution
Add value
through
further processing
Phase 2(before manufacturers) - Manufacturing,Planning & Control
Raw Materials
components/parts
Phase 1(After Suppliers)- Physical Supply
Maximize profit through 4 main objectives
Lowest
distribution cost
(At 3rd of the supply chain
(Distribution System)
)
Lowest
Inventory Investment
(At
Suppliers
&
Distribution System
)
Provide
best customer service
(At 4th of the supply
(Customers)
)
Lowest Production Cost(
Manufacturing
)
These
4 objectives
create
conflicts
among
marketing
,
finance
and
production
departments
due to
individuals
goals and objectives
Marketing
Aims
to
improve revenue
by
providing the BEST customer services
-
being responsive
to
market needs
, meeting
marketing 4Ps
High Level Inventory
products
readily
available
-
High level of inventory
in
each store
,
shop
,
warehouse
, etc
High mixed-model manufacturing capability
non-conventional models
can be
made quickly
to
meet various customers needs
Create
extensive distribution system
Responsive
to
market
or
customers
Build warehouse and distribution logistics
closer to
market/customers
Use the
fast and extensive transportation mode
(air transportation) to
ship products
to
customers
Finance
Aim
to
improve cost efficiency
as to
keep investment
and
cost low
2.
Decrease
number of
plants
and
warehouses
Keep
overhead cost low
(
factory and warehouse overheads
-
electricity
,
maintenance
, etc...)
1.
Reduce inventory
Keep
inventory cost low
(
warehousing
,
storage
,
managing
,
equipment handling cost
)
Produce large quantity
using
single model
and
long production run
,
minimizing manufacturing cost
by
taking advantages
of the
economy
of
scale
Manufacture only to customer orders
; thus,
reduce inventory in stock
Production
Make long product runs
of
relatively few products
(
Minimizing Model Change
)
b) Because
model change
incurs
downtime
,
learning curve
, and
specialization equipment
, and
others
.
c)
Lesser Model Change
allow
deployment of specialization equipment
and
process
that
help to reduce cost
a)
Capitalize
on
economy of scale
during
production
Maintain
high inventories
of
raw materials
and
work-in-progress
to
prevent production shortages
Ensure
no production disruption
due to
shortages of these materials
It tries to
improve
and
lower operating cost
and
meet production rate
and
schedule
by:
Resolution
Balance
conflicting objectives
through
Optimizing
overall cost (
cost effectiveness
)
Maximizing
overall customer servic (
responsiveness
)
Have a
balanced integrated approaches
that are
responsible
for
supply
,
production
and
distribution
Provide
Material
or
Supply Chain Management
that
is able to
Closely coordinate
among
supply chain activities
to
meet priorities & capacity
Introduction
A)
Maximize Cost Efficiency
&
Cost Effectiveness
B)
Optimize responsiveness
to
customer needs
shortest lead time
from
received order
until
customer receives the product
2) It
includes all parties directly
or
indirectly
involved in
fulfilling customer request/report
3) It tries to
maximize overall value created
by providing
efficient planning
for
material
and
information flows
along
each chain
1) Objectives of Supply Chain
5
Important Supply Chain Factors
3)
Supply Chain
can have a
few number
of
intermediaries
(distributors, wholesalers, warehouse, retailer)
4)
Any company
can be
link
to any
supply chain
2)
A customer
can
become a supplier
to
another customer
it
can have a number
of
supplier customer relationship
5)
Design & Demand information flows
from
customer to supplier
Production & Services information flow
from
suppliers to customers
It
includes all activities & processes
to
supply product & services
to
final customers
Concept
&
Trends
Int the past
,
organisation
is an
internal focus
.
View suppliers
,
customers
and
distributors
as
adversaries
,
outside entities
.
Try to cut the best deal
In 1970
,
Just-In-Time(JIT)
started by
Toyota
. It
focuses
on
supplier partner
as a
key successes factor
.
It emphasis on supplier partnership
Suppliers
and
customers
had
mutually linked destines
2.
Great Emphasis
was put on
TRUST
and
partnership
with
suppliers
The Result of
Partnership
1.
Incoming Inspection
and
extra quality checks
were
eliminated
Mutual Analysis
for
cost reduction
-
cost savings
are
shared
with
stakeholders
Mutual Product Design
between
Suppliers
and
Firm
4.
Enhanced information flow
with
advancement of technology
Growth
of the
concept
and
trend
Global
competition
Growth
in
technological capabilities
causes
product life cycle
is
shrinking
Technological Advancement
hardware,software, (ERP,APS, etc...)
Supply Chain
Challenges
and
Approaches
Production Control
shaped by
these challenges
Shorter product lifecycle
Vast
amount of
data
Managing
large supply chain
Focus
on
profit
Demanding
Customers
6.
Increase
number of
alternatives
To
maximize cost efficiency
,
effectiveness
,
delivery and flexibility
of
supply chain
Integrated information system
and
set of performance measures
Rapid flow
of
accurate information
Efficiency plan material
and
information flows
Increase organizational flexibility
Understand network of supply chains
,
customers and suppliers
Objective & Conflicts among production, marketing & finance department.
Objective for financing, marketing & production
Conflicts caused by different objectives
Resolution to solve conflicts
Manufacturing Planning & Control
It is
responsible
for
planning
and
control
of
flow of material
through
manufacturing process
. The
primary activities
include:
b)
Implementation
&
Control
c) Inventory Management
Provide buffer
against
difference
between
demand
and
production rate
a) Production Planning
Find the
most productive methods
Ensure
capacity
is able to
meet
the
priority
Meeting Customer Demand
Forecasting
,
Master Planning
,
Master Requirement Plan(MRP)
,
capacity planning
Input
to
Manufacturing Planning
and
Control
B)
Process specifications
Operation
sequence
Equipment
and
accessories
required
Operation
required
Standard
Time
C) Time
Standard
Time
A. Product Description
Describe sub-assemblies
at
various stages
of
manufacturing
Describe components
used
D)
Available
Facilities
know
plant
,
equipment
,
labour available
to
process work
Quantities
required
Customer Orders
MRP. etc
Forecast
Summary
of
Section
B) To achieve the
objective
, it must
make trade-offs
between
level of service
,
cost
of
providing the service
C)
Cost Rise
as
service- level increase
,
a firm
must find a
combination of inputs
and
maximize customer service
and
reduce cost
A) The
objectives
includes
delivering
what
customers wants
,
when and where they want
, and with
minimum cost
D)
Priority
and
Capacity
must be
planned
and
controlled
to
meet customer demand
at
minimum cost
Priority
(What
good
to
make
and
when
)
Capacity
(
ability of a system
to
produce goods
and
services
)
