MANUFATURING PROCESS

SELECTION AND DESIGN

Submitted to :
Submitted by :
Mrs. Hima Gupta
Sugandha Tiwari (15609015)
Ekta
Chaturvedi (15609029)
S.Shradha (15609018)
Mukesh Gauniyal (15609034)

Sachin
Dominic (15609022)

CONTENT

1. Product Development Process

2. Process Selection
3. Process Flow Structure
4. Product- Process Matrix
5. Break Even Analysis
6. Manufacturing Process Flow Design
7. Process Analysis based on Honda
company
8. Technologies in Manufacturing
9. Summary
10. Bibliography

PRODUCT DEVELOPMENT PROCESS

1. Standardization
2. Simplification
3. Specialization
4. Diversification
Standardization means fixing of some appropriate size, shape,
quality, manufacturing process, weight and other characteristics which
are standards to manufacturing a product of desired variety and utility.
Simplification in an enterprise signifies the elimination of excessive,
undesirable or marginal lines of product to take out waste and to attain
economy coupled with the main objective of improving quality
,reducing costs and prices which will lead to increased sales.
Specialization refers to expertise in some particular area or field.
Specialization implies reduction in the variety of products
manufactured by the organisation.
Diversification refers to the policy of producing different types of
products by an enterprise. Diversification is adopted for the purpose of
utilisation of idle/surplus resources.

PROCESS SELECTION
Process selection is the strategic decision of selecting which kind of
production process to have in manufacturing plant.
For eg. If the volume is very low in case of maruti plant, then we can
have a worker manually assembling each part and if the volume is very
high then we can have assembly process.

TYPES OF PROCESS

CONVERSION PROCESS
TESTING PROCESS

FABRICATION PROCESS
ASSEMBLY PROCESS

CONVERSION PROCESS includes examples like changing iron

sheets into steel sheets or converting all the raw material of
toothpaste into a toothpaste.
FABRICATION PROCESS means changing raw material into a
end product likemaking steel metal into a car fender.
ASSEMBLY PROCESS includes examples such as assembling a
fender to a car,putting toothpaste tubes in atooth box.
TESTING PROCESS are not fundamental process but it is a
standalone major activity that are necessary for completeness.p

Production process in automobile industry.

PROJECT
Project technology deals with one-of-a kind products that are made
according to the unique requirements of each customer. Since the
product cannot be standardized, the conversion process should be
flexible in its equipment capabilities, human skills, and procedures.

INTERMITTENT SYSTEM
Intermittent system is a system in which the goods are manufactured
especially to fulfill orders made by customers rather than for stock. In
this, the flow of material is intermittent. Intermittent production system

is one where the production facilities are flexible to use a large variety
of products and sizes.

PROCESS FLOW STRUCTURE

A process flow structure refers to how a factory organises material
flow using one or more of product technologies.
1. JOB SHOP: Production of small batches of a large no. of different
products most of which require different sets or sequences of
processing steps. Job shop technology is appropriate for producers
of small batches of many different products, each of which is
custom designed and, consequently, requires its own unique set of
processing steps, or routing, through the production process. For
example, printing shop, restaurant, etc.

2. BATCH SHOP: It is a standardized job shop . Such a structure is

applied when a business has a stable line of products, each of
which is produced in periodic batches either to customer order or
for inventory. Most of these items follow the same pattern of
through the plant such as heavy equipment, electronic devices
and specialty chemicals. This process is adopted when batches or
lots of items are to be produced using the same set of machines in
the same sequence. For example, Bakery, Chemical industry,

Printing press, etc.

3. ASSEMBLY LINE: It means production of discrete parts moving

from one workstation to another at a controlled rate, following the
sequence needed to build the product. Such as manual assembly
of toys and appliances, and automatic assembly(called insertion)
of components on a printed circuit board. Standardization is the
fundamental characteristic of this system. Standardization is there
w.r.t. materials and machines. Uniform and uninterrupted flow of
material is maintained through predetermined sequence of
operations required to produce the product.

4. CONTINUOUS FLOW: Conversion or further processing of

undifferentiated materials such as petroleum,chemicals or beer.

Continuous production system is the specialized manufacture of

identical products on which the machinery and equipment is fully
engaged. The continuous production is normally associated with
large quantities and with high rate of demand.
The product is highly standardized, as are all of the manufacturing
procedures, the sequence of product buildup, materials, and
equipment. Continuous flow technology affords high-volume,
around-the-clock operation with capital-intensive, specialized
automation.For example, Oil refineries, Cement factory,Sugar
factory etc.

PRODUCT PROCESS MATRIX

The relationship between process structure and volume requirements is
often depicted on a product process matrix.
IN THE FOLLOWING MATRIX as the volume increases and the
product line narrows,(horizontal dimension) specialised equipment and
standardised material flows(vertical dimension) become economically
feasible because this evolution process structure is frequently related
to the product life cycle stage it is very useful in linking marketing and
manufacturing stratergies.
The industries listed within the matrix are presented as ideal types that
have found their structural niche. It is certainly possible for an industry
member to choose another position on the matrix , however .

For example, the opening vignette describes Honda Motor Companys

redesign of its assembly lines so that any model can be produced.
Honda recognises that with the more flexible lines , it will not be able to
produce at the high volumes common at ford or general motors . This
recognition of lower volume paired with the production of a higher
variety of products corresponds to a horizontal move from stage iii to
stage ii. From the product process matrix, one might also think that
Honda would move from a pure assembly line to a batch process
structure. In case of Honda, cars will still be made using a modified
assembly-line structure , but batches of each model will be made ;
atleast that is what our framework would suggest.

BREAK-EVEN ANALYSIS
A standard approach to choose among alternative processes or
equipment is break-even analysis. A break-even chart visually presents

alternative profits and losses due to the number of units produced or

sold. The choice obviously depends on anticipated demands. This
method is most suitable when processes and equipments involve a
large initial investment and fixed cost and when variable costs are
proportional to the number.

PRACTICAL EXAMPLE OF BREAK-EVEN

ANALYSIS
Suppose a producer has identified the following options for obtaining a
machined part : It can buy the part at Rs. 200 per unit (including
materials); it can make the part on a numerically controlled
semiautomatic lathe at Rs. 75 per unit (including materials); or it can
make the part on a machining center at Rs. 15 per unit (including
materials). There is negligible fixed cost if the item is bought ; a
semiautomatic lathe costs Rs. 80,000 and a machining center costs Rs.
2,00,000.
The total cost for each option is

Purchase cost = Rs. 200 x demand

Produce-using-lathe cost = Rs.80,000 + Rs.75 x demand
Produce-using-machining-center cost = Rs. 2,00,000+ Rs.15 x demand

Solution:
The break-even point A calculation is
Rs. 80,000 + Rs. 75 x demand = Rs. 2,00,000 + Rs.15 x
demand
Demand (point A) = 1,20,000/60 = 2,000 units.

The break-even point B calculation is

Rs. 200 x demand = Rs. 80,000 + Rs.75 x demand
Demand (point B)= 80,000/125 = 640 units.

Consider the effect of revenue, assuming the part sells for Rs. 300
each. As exhibit 6.4 shows , profit (or loss) is the distance between the
revenue line and the alternative process cost. At 1,000 units, for
example, maximum profit is the difference between the Rs. 3,00,000
revenue (point C) and the semiautomatic lathe cost of Rs. 1,55,000
(point D). For this quantity the semiautomatic lathe is the cheapest
alternative available. The optimal choices for both minimizing cost and
maximising profit are the lowest segments of the lines; origin to B , to
A and to the right side of given figure.

MANUFACTURING PROCESS
FLOW DESIGN
Manufacturing process flow design is a method to evaluate the specific
processes that raw materials, parts, and subassemblies follow as they
move through the plant. The most common management tools used in
planning & designing the process flow are assembly drawings,
assembly charts, route sheets, and flow process charts. Each of these

charts is useful diagnostic tool and can be used to improve operations

during the steady state of the productive system. The standard first
step in analysing any production system is to map the flows and
operations using one or more of these techniques. These are the
organisational charts of the manufacturing system.
An assembly drawing as shown in the diagram below is simply an
exploded view of the product showing its component parts.

An assembly chart as shown below uses information presented in the

assembly drawing and among other things define how parts go
together, their order of assembly, and often the overall material flow
pattern.

An operations and routine chart as shown below specifies

operations and process routing for a particular part. It conveys such
information as the type of equipment, tooling, and operations required
to complete the part.

A process flow chart as shown below denotes what happens to the

product as it progresses through the productive facility. The focus in
analysing a manufacturing operation should be the identification of
activities that can be minimized or eliminated, such as movement and
storage within the process. As a rule, the fewer the moves, delays, and
storages in the process, the better the flow.

A process usually consists of (1) a set of tasks, (2) a flow of material and
information that connects the set of tasks, and (3) storage of material
and information.
1. Each task in a process accomplishes, to a certain degree, the
transformation of input into the desired output.
2. The flow in a process consists of material flow as well as flow of
information. The flow of material transfers a product from one task to
its next task. The flow of information helps in determining how much of
the transformation has been done in the previous task and what
exactly remains to be completed in the present task.
3. When neither a task is being performed nor a part is being
transferred, the part has to be stored. Goods in storage, waiting to be
processed by the next task, are often called work in process
inventory.
Process analysis involve adjusting the capacities and balance among
different parts of the process to maximize output or minimize the costs
with available resources.

PROCESS ANALYSIS BASED ON HONDA

COMPANY
Honda supplies a component to several large auto producers. This
component is assembled in a shop by 15 workers working an eight hour
shift on an assembly line that moves at the rate of 150 components per
hour. The workers receive their pay in the form of a group incentive
amounting to 30 cents per completed good part. This wage is
distributed equally among the workers. Management believes that it
can hire 15 more workers for a second shift if necessary.
Parts for the final assembly come from two sources. The moulding
department makes one very critical part and the rest come from the
outside suppliers. There are 11 machines capable of molding the one

part done in-house ; but historically, one machine is being overhauled

or repaired at any given time. Each machine requires a full-time
operator. The machine could each produce 25 parts per hour and the
workers are paid on an individual piece rate of 20 cents per good part.
The workers for the molding is flexible; currently, only six workers are
on this job. Four more are available from a labour pool within the
company. The raw materials for each part cost 10 cents per part; a
detailed analysis by the accounting department has concluded that 2
cents of electricity is used in making each part. The parts bought from
the outside cost 30 cents for each final component produced.
This entire operation is located in a rented building costing $ 100 per
week. Supervision, maintenance, and clerical employees receive $
1,000 per week. The accounting department charges depreciation for
equipment against this operation at $ 50 per week.
The process flow diagram just below describes the process. The tasks
have been shown as rectangles and the storage of goods as triangles.
1. Capacity of the entire process
Molding process:
Six workers are employed for the molding process, each working as a
full-time operator for one machine. Hence, only 6 of the 11 machines
are operactional at present.
Molding capacity = 6 machines X 25 parts per hour per machine X 8
hours per day X 5 days per week.
= 6000 parts per week.
Assembly process :
Assembly capacity = 150 components per hour X 8 hours per day X 5
days per week
= 6000 components per week.
They have balanced processes.

2. Cost per unit output.

Item
Raw material for
molding

Calculation
$0.10 per unit X 6000

Cost
600

Parts bought from

outside
Electricity
Molding labour
Assembly labour
Rent
Supervision
Depreciation
Total Cost

$0.30 per component X

6000
$0.02 per part X 6000
$0.20 per part X 6000
$0.30 per part X 6000
$100 per Week
$1000 per week
$50 per week

Cost per unit =

$6670 = $1.11

Total cost per week

1800
120
1200
1800
100
1000
50
$6670

Number of units produced per week

=
6000

TECHNOLOGIES IN
MANUFACTURING
Technological changes have occurred in almost every industry, many
may be unique to an industry. For example a pre-stressed concrete
block is a technological advance unique to the construction industry.
Developments in the designs of automobile will result in cars that are
made from recyclable parts.
Some of the technological advances in recent decades have had a
significant, widespread impact on manufacturing firms in many
industries. These advances, which are part of it are :
Hardware systems & Software Systems.

Hardware systems
Numerically controlled (NC) Machines comprise (1) a typical machine
tool used to turn, drill or gring different types of parts and (2) a
computer that control the sequence of processes performed by the
machine. NC machines were first adopted by U.S. aerospace firms in
1960s and they have since proliferated to many industries.
Machining Centers represent an increased level of automation and
complexity relative to NC machines. Machining centers not only provide
automatic control of a machine, they may also carry many tools that

can be automatically changed depending on the tools required for each

opertation.
Industrial Robots are used as substitutes for workers for many
repetitive manual activities and tasks that are dangerous, dull or dirty.
A robot is programmable, multifunctional machine that may be
equipped with an end effector.
Automated Materials handing (AMH) systems improve efficiency of
transportation, storage and retrival of materials.

Software systems
Computer-aided design (CAD) is an approach to product and process
design that utilizes the power of the computer. CAD covers several
automated technologies, such as computer graphics to examine the
visual characteristics of a product and computer-aided engineering
(CAE) to evaluate its engineering characteristics.
Automated manufacturing planning and control systems (MP & CS) are
simply computer-based information systems that help plan, schedule,
and monitor a manufacturing operation. They obtain information from
the factory floor continuously about work status, material arrivals, and
so on. And they release production and purchase orders.

Computer Integrated Manufacturing (CIM)

All the automation technologies are brought together under computerintegrated manufacturing (CIM). CIM is the automated version of the
manufacturing process, where the three major manufacturing functions
Product and process design, planning and control , and the
manufacturing process itself are replaced by the automated
technologies just described. Further, the traditional integration
mechanisms of oral and written communication are replaced by
computer technology. Such highly automated and integrated
manufacturing also goes under other names : total factory automation
and the factory of the future.
All these CIM technologies are tied together using a network and
integrated database.

Benefits of Technological Investments

The technological benefits from adopting new manufacturing

technologies are both tangible and intangible. The tangible benefits
can be used in traditional modes of financial analysis, such as
discounted cash flow, to make sound investment decisions. Specific
benefits are summerized as follows:
COST REDUCTION
Labour cost : Replacing people with robots, or enabling fewer workers
to run semiautomatic equipment.
Material cost : Using existing material more efficiently or enabling the
use of high tolerance materials.
Inventory cost : Fast changeover equipment allowing for Just-in-Time
inventory management.
Quality cost : Automated inspection and reduced variation in product
output.
Maintenance cost : Self adjusting equipment.
OTHER BENEFITS
Increased product variety : Scope economies due to flexible
manufacturing systems.
Improved Product features : Ability to make things that could not be
made by hand.
Short Cycle times: Faster setups and changeovers.

SUMMARY
Designing a customer pleasing product is an art. Building the product is
a science. Moving the product from design to the customer is
management. World-class producers excel at speedy and flexible
integration of these processes. A key to this is teamwork, not only on
the part of marketing, product development, manufacturing and
distribution, but on the part of the supplier and customer as well.

Effective process planning requires clear understanding of what the

factory can and cannot do relative to process structures. Many plants
use a combination of the structures Job shops for some parts, batch
or assembly operations for others. Frequently a choice exists as to
when demand seems likely to favour a switch from one to the other.
Making such decisions also requires understanding the nuances of each
production process to determine if the process really fits new product
specifications. On a day-to-day basis, it requires the ability to
systematically analyse capacity capabilities of each processing step.
Finally, there is the issue of technology. Although the details of
manufacturing process constitute the world of the engineer, awareness
of modern technologies particularly computer-integrated
manufacturing is now seen as an essential part of a business
education.

BIBLIOGRAPHY
1. www.google.com
2. Operations management for competitive advantage by Richard B.
Chase, F. Robert Jacobs, Nicholas J. Aquilano and Nitin K. Agarwal.
3. www.scribd.com

THANK YOU