Chapter 1

Introduction

Chapter Contents
1.1 Production Systems
1.1.1 Facilities
1.1.2 Manufacturing Support Systems
1.2 Automation in Production Systems
1.2.1 Automated Manufacturing Systems
1.2.2 Computerized Manufacturing Support Systems
1.2.3 Reasons for Automating
1.3 Manual Labor in Production Systems
1.3.1 Manual Labor in Factory Operations
1.3.2 Labor in Manufacturing Support Systems
1.4 Automation Principles and Strategies
1.4.1 The USA Principle
1.4.2 Ten Strategies for Automation and Process Improvement
1.4.3 Automation Migration Strategy
1.5 About This Book

The word manufacturing derives from two Latin words, manus (hand) and factus (make),
so that the combination means made by hand. This was the way manufacturing was accom-
plished when the word first appeared in the English language around 1567. Commercial
goods of those times were made by hand. The methods were handicraft, accomplished in
small shops, and the goods were relatively simple, at least by today’s standards. As many
years passed, factories came into being, with many workers at a single site, and the work
had to be organized using machines rather than handicraft techniques. The products

1
2 Chap. 1 / Introduction

became more complex, and so did the processes to make them. Workers had to special-
ize in their tasks. Rather than overseeing the fabrication of the entire product, they were
responsible for only a small part of the total work. More up-front planning was required,
and more coordination of the operations was needed to keep track of the work flow in the
factories. Slowly but surely, the systems of production were being developed.
The systems of production are essential in modern manufacturing. This book is all
about these production systems and how they are sometimes automated and computerized.

1.1 Production Systems

A production system is a collection of people, equipment, and procedures organized to

perform the manufacturing operations of a company. It consists of two major compo-
nents as indicated in Figure 1.1:

1. Facilities. The physical facilities of the production system include the equipment,
the way the equipment is laid out, and the factory in which the equipment is located.
2. Manufacturing support systems. These are the procedures used by the company to
manage production and to solve the technical and logistics problems encountered
in ordering materials, moving the work through the factory, and ensuring that prod-
ucts meet quality standards. Product design and certain business functions are in-
cluded in the manufacturing support systems.

In modern manufacturing operations, portions of the production system are

a­utomated and/or computerized. In addition, production systems include people.
People make these systems work. In general, direct labor people (blue-collar workers)

Manufacturing
systems
Facilities
Factory and
plant layout

Production
system Product design

Manufacturing
planning
Manufacturing
support systems
Manufacturing
control

Business
functions

Figure 1.1 The production system consists of

facilities and manufacturing support systems.
Sec. 1.1 / Production Systems 3

are responsible for operating the facilities, and professional staff people (white-collar
­workers) are responsible for the manufacturing support systems.

1.1.1 Facilities

The facilities in the production system consist of the factory, production machines and
tooling, material handling equipment, inspection equipment, and computer systems that
control the manufacturing operations. Facilities also include the plant layout, which is
the way the equipment is physically arranged in the factory. The equipment is usually
organized into manufacturing systems, which are the logical groupings of equipment and
workers that accomplish the processing and assembly operations on parts and products
made by the factory. Manufacturing systems can be individual work cells consisting of a
single production machine and a worker assigned to that machine. More complex manu-
facturing systems consist of collections of machines and workers, for example, a produc-
tion line. The manufacturing systems come in direct physical contact with the parts and/or
assemblies being made. They “touch” the product.
In terms of human participation in the processes performed by the manufacturing
systems, three basic categories can be distinguished, as portrayed in Figure 1.2: (a) man-
ual work systems, (b) worker-machine systems, and (c) automated systems.

Manual Work Systems. A manual work system consists of one or more workers
performing one or more tasks without the aid of powered tools. Manual material handling
tasks are common activities in manual work systems. Production tasks commonly require
the use of hand tools, such as screwdrivers and hammers. When using hand tools, a work-
holder is often employed to grasp the work part and position it securely for processing.
Examples of production-related manual tasks involving the use of hand tools include
• A machinist using a file to round the edges of a rectangular part that has just been
milled
• A quality control inspector using a micrometer to measure the diameter of a shaft
• A material handling worker using a dolly to move cartons in a warehouse
• A team of assembly workers putting together a piece of machinery using hand tools.
Worker-Machine Systems. In a worker-machine system, a human worker oper-
ates powered equipment, such as a machine tool or other production machine. This is
one of the most widely used manufacturing systems. Worker-machine systems include

Periodic worker
Hand tools Machine attention

Worker Worker Automated machine

Process Process Process

(a) (b) (c)

Figure 1.2 Three categories of manufacturing systems: (a) manual work

system, (b) worker-machine system, and (c) fully automated system.
4 Chap. 1 / Introduction

combinations of one or more workers and one or more pieces of equipment. The workers
and machines are combined to take advantage of their relative strengths and attributes,
which are listed in Table 1.1. Examples of worker-machine systems include the following:

• A machinist operating an engine lathe to fabricate a part for a product

• A fitter and an industrial robot working together in an arc–welding work cell
• A crew of workers operating a rolling mill that converts hot steel slabs into flat plates
• A production line in which the products are moved by mechanized conveyor and
the workers at some of the stations use power tools to accomplish their processing
or assembly tasks.

Automated Systems. An automated system is one in which a process is per-

formed by a machine without the direct participation of a human worker. Automation
is implemented using a program of instructions combined with a control system that
­executes the instructions. Power is required to drive the process and to operate the pro-
gram and control system (these terms are defined more completely in Chapter 4).
There is not always a clear distinction between worker-machine systems and
­automated systems, because many worker-machine systems operate with some degree
of automation. Two levels of automation can be identified: semiautomated and fully
­automated. A semiautomated machine performs a portion of the work cycle under some
form of program control, and a human worker tends to the machine for the remainder
of the cycle, by loading and unloading it, or by performing some other task each cycle.
A fully automated machine is distinguished from its semiautomated counterpart by its
capacity to operate for an extended period of time with no human attention. Extended
period of time means longer than one work cycle; a worker is not required to be present
during each cycle. Instead, the worker may need to tend the machine every tenth cycle,
or every hundredth cycle. An example of this type of operation is found in many injection
molding plants, where the molding machines run on automatic cycles, but periodically the
molded parts at the machine must be collected by a worker. Figure 1.2(c) depicts a fully
automated system. The semiautomated system is best portrayed by Figure 1.2(b).
In certain fully automated processes, one or more workers are required to be present
to continuously monitor the operation, and make sure that it performs according to the
intended specifications. Examples of these kinds of automated processes include complex

Table 1.1   Relative Strengths and Attributes of Humans and Machines

Humans Machines
Sense unexpected stimuli Perform repetitive tasks consistently
Develop new solutions to problems Store large amounts of data
Cope with abstract problems Retrieve data from memory reliably
Adapt to change Perform multiple tasks
simultaneously
Generalize from observations Apply high forces and power
Learn from experience Perform simple computations
quickly
Make decisions based on Make routine decisions quickly
incomplete data
Sec. 1.1 / Production Systems 5

chemical processes, oil refineries, and nuclear power plants. The workers do not actively
participate in the process except to make occasional adjustments in the equipment set-
tings, perform periodic maintenance, and spring into action if something goes wrong.

1.1.2 Manufacturing Support Systems

To operate the production facilities efficiently, a company must organize itself to design
the processes and equipment, plan and control the production orders, and satisfy prod-
uct quality requirements. These functions are accomplished by manufacturing support
­systems—people and procedures by which a company manages its production operations.
Most of these support systems do not directly contact the product, but they plan and
­control its progress through the factory.
Manufacturing support involves a sequence of activities, as depicted in Figure 1.3.
The activities consist of four functions that include much information flow and data
processing: (1) business functions, (2) product design, (3) manufacturing planning, and
(4) manufacturing control.

Business Functions. The business functions are the principal means by which the
company communicates with the customer. They are, therefore, the beginning and the
end of the information-processing sequence. Included in this category are sales and mar-
keting, sales forecasting, order entry, and customer billing.
The order to produce a product typically originates from the customer and proceeds
into the company through the sales department of the firm. The production order will be in
one of the following forms: (1) an order to manufacture an item to the customer’s specifica-
tions, (2) a customer order to buy one or more of the manufacturer’s proprietary products,
or (3) an internal company order based on a forecast of future demand for a proprietary
product.

Product Design. If the product is manufactured to customer design, the design

has been provided by the customer, and the manufacturer’s product design department is
not involved. If the product is to be produced to customer specifications, the manufactur-
er’s product design department may be contracted to do the design work for the product
as well as to manufacture it.
If the product is proprietary, the manufacturing firm is responsible for its develop-
ment and design. The sequence of events that initiates a new product design often origi-
nates in the sales department; the direction of information flow is indicated in Figure 1.3.
The departments of the firm that are organized to accomplish product design might include
research and development, design engineering, and perhaps a prototype shop.

Order to Business Manufacturing Manufacturing

Product design
produce functions planning control

Product to
Starting materials Factory operations
customer

Figure 1.3 Sequence of information-processing activities in a typical

­manufacturing firm.
6 Chap. 1 / Introduction

Manufacturing Planning. The information and documentation that constitute the

product design flows into the manufacturing planning function. The information-­processing
activities in manufacturing planning include process planning, master scheduling, material
requirements planning, and capacity planning.
Process planning consists of determining the sequence of individual processing and
assembly operations needed to produce the part. The manufacturing engineering depart-
ment is responsible for planning the processes and related technical details such as tool-
ing. Manufacturing planning includes logistics issues, commonly known as production
planning. The authorization to produce the product must be translated into the master
production schedule, which is a listing of the products to be made, the dates on which
they are to be delivered, and the quantities of each. Based on this master schedule, the
individual components and subassemblies that make up each product must be scheduled.
Raw materials must be purchased or requisitioned from storage, parts must be ordered
from suppliers, and all of these items must be planned so they are available when needed.
The computations for this planning are made by material requirements planning. In
­addition, the master schedule must not list more quantities of products than the factory
is capable of producing each month with its given number of machines and manpower.
Capacity planning is concerned with determining the human and equipment resources
of the firm and checking to make sure that the production plan is feasible.

Manufacturing Control. Manufacturing control is concerned with managing and

controlling the physical operations in the factory to implement the manufacturing plans.
The flow of information is from planning to control as indicated in Figure 1.3. Information
also flows back and forth between manufacturing control and the factory operations.
Included in this function are shop floor control, inventory control, and quality control.
Shop floor control deals with the problem of monitoring the progress of the prod-
uct as it is being processed, assembled, moved, and inspected in the factory. Shop floor
control is concerned with inventory in the sense that the materials being processed in
the factory are work-in-process inventory. Thus, shop floor control and inventory control
overlap to some extent. Inventory control attempts to strike a proper balance between
the risk of too little inventory (with possible stock-outs of materials) and the carrying cost
of too much inventory. It deals with such issues as deciding the right quantities of materi-
als to order and when to reorder a given item when stock is low. The function of quality
control is to ensure that the quality of the product and its components meet the standards
specified by the product designer. To accomplish its mission, quality control depends on
inspection activities performed in the factory at various times during the manufacture of
the product. Also, raw materials and component parts from outside sources are some-
times inspected when they are received, and final inspection and testing of the finished
product is performed to ensure functional quality and appearance. Quality control also
includes data collection and problem-solving approaches to address process problems re-
lated to quality, such as statistical process control (SPC) and Six Sigma.

1.2 Automation in Production Systems

Some components of the firm’s production system are likely to be automated, whereas
others will be operated manually or clerically. The automated elements of the produc-
tion system can be separated into two categories: (1) automation of the manufacturing
Sec. 1.2 / Automation in Production Systems 7

Manufacturing
Automation
systems
Facilities
Factory and
plant layout

Production
system Product design

Manufacturing
Computerization
planning
Manufacturing
support systems
Manufacturing
control

Business
functions

Figure 1.4 Opportunities for automation and computerization

in a production system.

systems in the factory, and (2) computerization of the manufacturing support systems.
In modern production systems, the two categories are closely related, because the auto-
mated manufacturing systems on the factory floor are themselves usually implemented
by computer systems that are integrated with the manufacturing support systems and
management information system operating at the plant and enterprise levels. The two
categories of automation are shown in Figure 1.4 as an overlay on Figure 1.1.

1.2.1 Automated Manufacturing Systems

Automated manufacturing systems operate in the factory on the physical product. They
perform operations such as processing, assembly, inspection, and material handling, in
many cases accomplishing more than one of these operations in the same system. They
are called automated because they perform their operations with a reduced level of human
participation compared with the corresponding manual process. In some highly automated
systems, there is virtually no human participation. Examples of automated manufacturing
systems include:

• Automated machine tools that process parts

• Transfer lines that perform a series of machining operations
• Automated assembly systems
• Manufacturing systems that use industrial robots to perform processing or assembly
operations
• Automatic material handling and storage systems to integrate manufacturing
operations
• Automatic inspection systems for quality control.
8 Chap. 1 / Introduction

Product variety
Programmable
automation
Flexible
automation

Fixed
automation

1 100 10,000 1,000,000

Production quantity

Figure 1.5 Three types of automation relative

to production quantity and product variety.

Automated manufacturing systems can be classified into three basic types: (1) fixed
automation, (2) programmable automation, and (3) flexible automation. They generally
operate as fully automated systems although semiautomated systems are common in
programmable automation. The relative positions of the three types of automation for
different production volumes and product varieties are depicted in Figure 1.5.

Fixed Automation. Fixed automation is a system in which the sequence of pro-

cessing (or assembly) operations is fixed by the equipment configuration. Each operation
in the sequence is usually simple, involving perhaps a plain linear or rotational motion or
an uncomplicated combination of the two, such as feeding a rotating spindle. It is the inte-
gration and coordination of many such operations in one piece of equipment that makes
the system complex. Typical features of fixed automation are (1) high initial investment
for custom-engineered equipment, (2) high production rates, and (3) inflexibility of the
equipment to accommodate product variety.
The economic justification for fixed automation is found in products that are made
in very large quantities and at high production rates. The high initial cost of the ­equipment
can be spread over a very large number of units, thus minimizing the unit cost relative
to alternative methods of production. Examples of fixed automation include machining
transfer lines and automated assembly machines.

Programmable Automation. In programmable automation, the production

equipment is designed with the capability to change the sequence of operations to ac-
commodate different product configurations. The operation sequence is controlled by a
program, which is a set of instructions coded so that they can be read and interpreted by
the system. New programs can be prepared and entered into the equipment to produce
new products. Some of the features that characterize programmable automation include
(1) high investment in general-purpose equipment, (2) lower production rates than fixed
automation, (3) flexibility to deal with variations and changes in product configuration,
and (4) high suitability for batch production.
Sec. 1.2 / Automation in Production Systems 9

Programmable automated systems are used in low- and medium-volume produc-

tion. The parts or products are typically made in batches. To produce each new batch of
a different item, the system must be reprogrammed with the set of machine instructions
that correspond to the new item. The physical setup of the machine must also be changed:
Tools must be loaded, fixtures must be attached to the machine table, and any required
machine settings must be entered. This changeover takes time. Consequently, the typical
cycle for a given batch includes a period during which the setup and reprogramming take
place, followed by a period in which the parts are produced. Examples of programmable
automation include numerically controlled (NC) machine tools, industrial robots, and
programmable logic controllers.

Flexible Automation. Flexible automation is an extension of programmable

automation. A flexible automated system is capable of producing a variety of parts or
products with virtually no time lost for changeovers from one design to the next. There
is no lost production time while reprogramming the system and altering the physical
setup (tooling, fixtures, machine settings). Accordingly, the system can produce vari-
ous mixes and schedules of parts or products instead of requiring that they be made
in batches. What makes flexible automation possible is that the differences between
parts processed by the system are not significant, so the amount of changeover between
designs is minimal. Features of flexible automation include (1) high investment for a
custom-engineered system, (2) continuous production of variable mixtures of parts or
products, (3) medium production rates, and (4) flexibility to deal with product design
variations. Examples of flexible automation are flexible manufacturing systems that
perform machining processes.

1.2.2 Computerized Manufacturing Support Systems

Automation of the manufacturing support systems is aimed at reducing the amount of

manual and clerical effort in product design, manufacturing planning and control, and
the business functions of the firm. Nearly all modern manufacturing support systems are
implemented using computers. Indeed, computer technology is used to implement auto-
mation of the manufacturing systems in the factory as well. Computer-integrated manu-
facturing (CIM) denotes the pervasive use of computer systems to design the products,
plan the production, control the operations, and perform the various information-­
processing functions needed in a manufacturing firm. True CIM involves integrating all
of these functions in one system that operates throughout the enterprise. Other terms
are used to identify specific elements of the CIM system; for example, computer-aided
design (CAD) supports the product design function. Computer-aided manufacturing
(CAM) is used for functions related to manufacturing engineering, such as process plan-
ning and numerical control part programming. Some computer systems perform both
CAD and CAM, and so the term CAD/CAM is used to indicate the integration of the
two into one system.
Computer-integrated manufacturing involves the information-processing activities
that provide the data and knowledge required to successfully produce the product. These
activities are accomplished to implement the four basic manufacturing support functions
identified earlier: (1) business functions, (2) product design, (3) manufacturing planning,
and (4) manufacturing control.
10 Chap. 1 / Introduction

1.2.3 Reasons for Automating

Companies undertake projects in automation and computer-integrated manufacturing

for good reasons, some of which are the following:

1. Increase labor productivity. Automating a manufacturing operation invariably in-

creases production rate and labor productivity. This means greater output per hour
of labor input.
2. Reduce labor cost. Increasing labor cost has been, and continues to be, the trend
in the world’s industrialized societies. Consequently, higher investment in au-
tomation has become economically justifiable to replace manual operations.
Machines are increasingly being substituted for human labor to reduce unit
product cost.
3. Mitigate the effects of labor shortages. There is a general shortage of labor in many
advanced nations, and this has stimulated the development of automated opera-
tions as a substitute for labor.
4. Reduce or eliminate routine manual and clerical tasks. An argument can be put forth
that there is social value in automating operations that are routine, boring, fatigu-
ing, and possibly irksome. Automating such tasks improves the general level of
working conditions.
5. Improve worker safety. Automating a given operation and transferring the worker
from active participation in the process to a monitoring role, or removing the
worker from the operation altogether, makes the work safer. The safety and physi-
cal well-being of the worker has become a national objective with the enactment
of the Occupational Safety and Health Act (OSHA) in 1970. This has provided an
impetus for automation.
6. Improve product quality. Automation not only results in higher production rates
than manual operation, it also performs the manufacturing process with greater
consistency and conformity to quality specifications.
7. Reduce manufacturing lead time. Automation helps reduce the elapsed time be-
tween customer order and product delivery, providing a competitive advantage to
the manufacturer for future orders. By reducing manufacturing lead time, the man-
ufacturer also reduces work-in-process inventory.
8. Accomplish processes that cannot be done manually. Certain operations cannot
be accomplished without the aid of a machine. These processes require precision,
miniaturization, or complexity of geometry that cannot be achieved manually.
Examples include certain integrated circuit fabrication operations, rapid prototyp-
ing processes based on computer graphics (CAD) models, and the machining of
complex, mathematically defined surfaces using computer numerical control. These
processes can only be realized by computer-controlled systems.
9. Avoid the high cost of not automating. There is a significant competitive advan-
tage gained in automating a manufacturing plant. The advantage cannot always be
demonstrated on a company’s project authorization form. The benefits of automa-
tion often show up in unexpected and intangible ways, such as in improved quality,
higher sales, better labor relations, and better company image. Companies that do
not automate are likely to find themselves at a competitive disadvantage with their
customers, their employees, and the general public.
Sec. 1.3 / Manual Labor in Production Systems 11

1.3 Manual Labor in Production Systems

Is there a place for manual labor in the modern production system? The answer is yes.
Even in a highly automated production system, humans are still a necessary component of
the manufacturing enterprise. For the foreseeable future, people will be required to man-
age and maintain the plant, even in those cases where they do not participate directly in
its manufacturing operations. The discussion of the labor issue is separated into two parts,
corresponding to the previous distinction between facilities and manufacturing support:
(1) manual labor in factory operations and (2) labor in manufacturing support systems.

1.3.1 Manual Labor in Factory Operations

There is no denying that the long-term trend in manufacturing is toward greater use
of automated machines to substitute for manual labor. This has been true throughout
human history, and there is every reason to believe the trend will continue. It has been
made possible by applying advances in technology to factory operations. In parallel and
sometimes in conflict with this technologically driven trend are issues of economics that
continue to find reasons for employing manual labor in manufacturing.
Certainly one of the current economic realities in the world is that there are coun-
tries whose average hourly wage rates are so low that most automation projects are diffi-
cult to justify strictly on the basis of cost reduction. These countries include China, India,
Mexico, and many countries in Eastern Europe, Southeast Asia, and Latin America.
With the passage of the North American Free Trade Agreement (NAFTA), the North
American continent has become one large labor pool. Within this pool, Mexico’s labor
rate is an order of magnitude less than that in the United States. U.S. corporate execu-
tives who make decisions on factory locations and the outsourcing of work must reckon
with this reality.
In addition to the labor cost issue, there are other reasons, ultimately based on eco-
nomics, that make the use of manual labor a feasible alternative to automation. Humans
possess certain attributes that give them an advantage over machines in certain situa-
tions and certain kinds of tasks (Table 1.1). A number of situations can be listed in which
manual labor is preferred over automation:

• Task is technologically too difficult to automate. Certain tasks are very difficult (ei-
ther technologically or economically) to automate. Reasons for the difficulty include
(1) problems with physical access to the work location, (2) adjustments required in
the task, (3) manual dexterity requirements, and (4) demands on hand–eye coordi-
nation. Manual labor is used to perform the tasks in these cases. Examples include
automobile final assembly lines where many final trim operations are accomplished
by human workers, inspection tasks that require judgment to assess quality, and
material handling tasks that involve flexible or fragile materials.
• Short product life cycle. If a product must be designed and introduced in a short
period of time to meet a near-term window of opportunity in the marketplace, or
if the product is anticipated to be on the market for a relatively short period, then
a manufacturing method designed around manual labor allows for a much sooner
product launch than does an automated method. Tooling for manual production
can be fabricated in much less time and at much lower cost than comparable auto-
mation tooling.
12 Chap. 1 / Introduction

• Customized product. If the customer requires a one-of-a-kind item with unique

features, manual labor has the advantage as the appropriate production resource
because of its versatility and adaptability. Humans are more flexible than any auto-
mated machine.
• Ups and downs in demand. Changes in demand for a product necessitate changes in
production output levels. Such changes are more easily made when manual labor is
used as the means of production. An automated manufacturing system has a fixed
cost associated with its investment. If output is reduced, that fixed cost must be
spread over fewer units, driving up the unit cost of the product. On the other hand,
an automated system has an ultimate upper limit on its output capacity. It cannot
produce more than its rated capacity. By contrast, manual labor can be added or
reduced as needed to meet demand, and the associated cost of the resource is in di-
rect proportion to its employment. Manual labor can be used to augment the output
of an existing automated system during those periods when demand exceeds the
capacity of the automated system.
• Need to reduce risk of product failure. A company introducing a new product to the
market never knows for sure what the ultimate success of that product will be. Some
products will have long life cycles, while others will be on the market for relatively
short periods. The use of manual labor as the productive resource at the beginning
of the product’s life reduces the company’s risk of losing a significant investment in
automation if the product fails to achieve a long market life. Section 1.4.3 discusses
an automation migration strategy that is suitable for introducing a new product.
• Lack of capital. Companies are sometimes forced to use manual labor in their pro-
duction operations when they lack the capital to invest in automated equipment.

1.3.2 Labor in Manufacturing Support Systems

In manufacturing support functions, many of the routine manual and clerical tasks can
be automated using computer systems. Certain production planning activities are bet-
ter accomplished by computers than by clerks. Material requirements planning (MRP,
Section 25.2) is an example. In material requirements planning, order releases are gener-
ated for component parts and raw materials based on the master production schedule
for final products. This requires a massive amount of data processing that is best suited
to computer automation. Many commercial software packages are available to perform
MRP. With few exceptions, companies that use MRP rely on computers to perform the
computations. Humans are still required to interpret and implement the MRP output and
to manage the production planning function.
In modern production systems, the computer is used as an aid in performing virtually
all manufacturing support activities. Computer-aided design systems are used in product
design. The human designer is still required to do the creative work. The CAD system is a
tool that augments the designer’s creative talents. Computer-aided process planning sys-
tems are used by manufacturing engineers to plan the production methods and routings.
In these examples, humans are integral components in the operation of the manufacturing
support functions, and the computer-aided systems are tools to increase productivity and
improve quality. CAD and CAM systems rarely operate completely in automatic mode.
Humans will continue to be needed in manufacturing support systems, even as the
level of automation in these systems increases. People will be needed to do the deci-
sion making, learning, engineering, evaluating, managing, and other functions for which
Sec. 1.4 / Automation Principles and Strategies 13

humans are much better suited than machines, according to Table 1.1. Even if all of the
manufacturing systems in the factory are automated, there is still a need for the following
kinds of work to be performed by humans:

• Equipment maintenance. Skilled technicians are required to maintain and repair the
automated systems in the factory when these systems break down. To improve the reli-
ability of the automated systems, preventive maintenance programs are implemented.
• Programming and computer operation. There will be a continual demand to upgrade
software, install new versions of software packages, and execute the programs. It is an-
ticipated that much of the routine process planning, numerical control part program-
ming, and robot programming may be highly automated using artificial intelligence
(AI) in the future. But the AI programs must be developed and operated by people.
• Engineering project work. The computer-automated and integrated factory is likely
never to be finished. There will be a continual need to upgrade production ­machines,
design tooling, solve technical problems, and undertake continuous improvement
projects. These activities require the skills of engineers working in the factory.
• Plant management. Someone must be responsible for running the factory. There
will be a staff of professional managers and engineers who are responsible for plant
operations. There is likely to be an increased emphasis on managers’ technical skills
compared with traditional factory management positions, where the emphasis is on
personnel skills.

1.4 Automation Principles and Strategies

The preceding section leads one to conclude that automation is not always the right an-
swer for a given production situation. A certain caution and respect must be observed
in applying automation technologies. This section offers three approaches for dealing
with automation projects:1 (1) the USA Principle, (2) Ten Strategies for Automation and
Process Improvement, and (3) an Automation Migration Strategy.

1.4.1 The USA Principle

The USA Principle is a commonsense approach to automation and process improvement

projects. Similar procedures have been suggested in the manufacturing and automa-
tion trade literature, but none has a more captivating title than this one. USA stands for
(1) understand the existing process, (2) simplify the process, and (3) automate the pro-
cess. A statement of the USA Principle appeared in an article published by the American
Production and Inventory Control Society [5]. The article is concerned with implement-
ing enterprise resource planning (ERP, Section 25.7), but the USA approach is so general
that it is applicable to nearly any automation project. Going through each step of the
procedure for an automation project may in fact reveal that simplifying the process is suf-
ficient and automation is not necessary.

1
There are additional approaches not discussed here, but in which the reader may be interested—for
example, the ten steps to integrated manufacturing production systems discussed in J. Black’s book The Design
of the Factory with a Future [1]. Much of Black’s book deals with lean production and the Toyota Production
System, which is covered in Chapter 26 of the present book.
14 Chap. 1 / Introduction

Understand the Existing Process. The first step in the USA approach is to com-
prehend the current process in all of its details. What are the inputs? What are the out-
puts? What exactly happens to the work unit2 between input and output? What is the
function of the process? How does it add value to the product? What are the upstream
and downstream operations in the production sequence, and can they be combined with
the process under consideration?
Some of the traditional industrial engineering charting tools used in methods anal-
ysis are useful in this regard, such as the operation chart and the flow process chart [3].
Application of these tools to the existing process provides a model of the process that can be
analyzed and searched for weaknesses (and strengths). The number of steps in the process,
the number and placement of inspections, the number of moves and delays experienced by
the work unit, and the time spent in storage can be ascertained by these charting techniques.
Mathematical models of the process may also be useful to indicate relationships be-
tween input parameters and output variables. What are the important output variables?
How are these output variables affected by inputs to the process, such as raw material
properties, process settings, operating parameters, and environmental conditions? This
information may be valuable in identifying what output variables need to be measured
for feedback purposes and in formulating algorithms for automatic process control.

Simplify the Process. Once the existing process is understood, then the search
begins for ways to simplify. This often involves a checklist of questions about the existing
process. What is the purpose of this step or this transport? Is the step necessary? Can it
be eliminated? Does it use the most appropriate technology? How can it be simplified?
Are there unnecessary steps in the process that might be eliminated without detracting
from function?
Some of the ten strategies for automation and process improvement (Section 1.4.2)
can help simplify the process. Can steps be combined? Can steps be performed simulta-
neously? Can steps be integrated into a manually operated production line?

Automate the Process. Once the process has been reduced to its simplest form,
then automation can be considered. The possible forms of automation include those
listed in the ten strategies discussed in the following section. An automation migration
strategy (such as the one in Section 1.4.3) might be implemented for a new product that
has not yet proven itself.

1.4.2 Ten Strategies for Automation and Process Improvement

Applying the USA Principle is a good approach in any automation project. As suggested
previously, it may turn out that automation of the process is unnecessary or cannot be
cost justified after the process has been simplified.
If automation seems a feasible solution to improving productivity, quality, or other
measure of performance, then the following ten strategies provide a road map to search
for these improvements. These ten strategies were originally published in the author’s
first book.3 They seem as relevant and appropriate today as they did in 1980. They

2
The work unit is the part or product being processed or assembled.
3
M. P. Groover, Automation, Production Systems, and Computer-Aided Manufacturing, Prentice Hall,
Englewood Cliffs, NJ, 1980.
Sec. 1.4 / Automation Principles and Strategies 15

are referred to as strategies for automation and process improvement because some
of them are applicable whether the process is a candidate for automation or just for
simplification.

1. Specialization of operations. The first strategy involves the use of special-purpose

equipment designed to perform one operation with the greatest possible efficiency.
This is analogous to the specialization of labor, which is employed to improve labor
productivity.
2. Combined operations. Production occurs as a sequence of operations. Complex
parts may require dozens or even hundreds of processing steps. The strategy
of combined operations involves reducing the number of distinct production
­machines or workstations through which the part must be routed. This is ac-
complished by performing more than one operation at a given machine, thereby
­reducing the number of separate machines needed. Since each machine typically
involves a setup, setup time can usually be saved by this strategy. Material han-
dling effort, nonoperation time, waiting time, and manufacturing lead time are all
reduced.
3. Simultaneous operations. A logical extension of the combined operations strategy is
to simultaneously perform the operations that are combined at one workstation. In
effect, two or more processing (or assembly) operations are being performed simul-
taneously on the same work part, thus reducing total processing time.
4. Integration of operations. This strategy involves linking several workstations to-
gether into a single integrated mechanism, using automated work handling devices
to transfer parts between stations. In effect, this reduces the number of separate
work centers through which the product must be scheduled. With more than one
workstation, several parts can be processed simultaneously, thereby increasing the
overall output of the system.
5. Increased flexibility. This strategy attempts to achieve maximum utilization of equip-
ment for job shop and medium-volume situations by using the same equipment for
a variety of parts or products. It involves the use of programmable or flexible auto-
mation (Section 1.2.1). Prime objectives are to reduce setup time and programming
time for the production machine. This normally translates into lower manufacturing
lead time and less work-in-process.
6. Improved material handling and storage. A great opportunity for reducing non-
productive time exists in the use of automated material handling and storage sys-
tems. Typical benefits include reduced work-in-process, shorter manufacturing lead
times, and lower labor costs.
7. On-line inspection. Inspection for quality of work is traditionally performed after
the process is completed. This means that any poor-quality product has already
been produced by the time it is inspected. Incorporating inspection into the manu-
facturing process permits corrections to the process as the product is being made.
This reduces scrap and brings the overall quality of the product closer to the nomi-
nal specifications intended by the designer.
8. Process control and optimization. This includes a wide range of control schemes
intended to operate the individual processes and associated equipment more ef-
ficiently. By this strategy, the individual process times can be reduced and product
quality can be improved.
16 Chap. 1 / Introduction

9. Plant operations control. Whereas the previous strategy is concerned with the con-
trol of individual manufacturing processes, this strategy is concerned with control
at the plant level. It attempts to manage and coordinate the aggregate operations
in the plant more efficiently. Its implementation involves a high level of computer
networking within the factory.
10. Computer-integrated manufacturing (CIM). Taking the previous strategy one level
higher, CIM involves extensive use of computer systems, databases, and networks
throughout the enterprise to integrate the factory operations and business functions.

The ten strategies constitute a checklist of possibilities for improving the production
system through automation or simplification. They should not be considered mutually ex-
clusive. For most situations, multiple strategies can be implemented in one improvement
project. The reader will see these strategies implemented in the many systems discussed
throughout the book.

1.4.3 Automation Migration Strategy

Owing to competitive pressures in the marketplace, a company often needs to introduce a

new product in the shortest possible time. As mentioned previously, the easiest and least
expensive way to accomplish this objective is to design a manual production method,
using a sequence of workstations operating independently. The tooling for a manual
method can be fabricated quickly and at low cost. If more than a single set of worksta-
tions is required to make the product in sufficient quantities, as is often the case, then the
manual cell is replicated as many times as needed to meet demand. If the product turns
out to be successful, and high future demand is anticipated, then it makes sense for the
company to automate production. The improvements are often carried out in phases.
Many companies have an automation migration strategy, that is, a formalized plan for
evolving the manufacturing systems used to produce new products as demand grows. A
typical automation migration strategy is the following:

Phase 1: Manual production using single-station manned cells operating indepen-

dently. This is used for introduction of the new product for reasons al-
ready mentioned: quick and low-cost tooling to get started.
Phase 2: Automated production using single-station automated cells operating
independently. As demand for the product grows, and it becomes clear
that automation can be justified, then the single stations are automated
to reduce labor and increase production rate. Work units are still moved
between workstations manually.
Phase 3: Automated integrated production using a multi-station automated sys-
tem with serial operations and automated transfer of work units between
­stations. When the company is certain that the product will be produced
in mass quantities and for several years, then integration of the single-
station automated cells is warranted to further reduce labor and increase
production rate.

This strategy is illustrated in Figure 1.6. Details of the automation migration strat-
egy vary from company to company, depending on the types of products they make and
the manufacturing processes they perform. But well-managed manufacturing companies
Sec. 1.4 / Automation Principles and Strategies 17

Phase 1 Manual workstations Manual handling

Starting Completed
work units work units

Worker
Work-in-process

Phase 2
Manual handling
Automated workstations

Aut Aut Aut

Automated integrated
production
Connected stations
Automated
Product demand

production

One-station Phase 3 Automated transfer

cells of work units

Manual
production Aut Aut Aut

One-
station
cells
Phase 1 Phase 2 Phase 3 Time

Figure 1.6 A typical automation migration strategy. Phase 1: manual

production with single independent workstations. Phase 2: automated
production stations with manual handling between stations. Phase 3:
automated integrated production with automated handling between
stations. Key: Aut = automated workstation.

have policies like the automation migration strategy. There are several advantages of
such a strategy:

• It allows introduction of the new product in the shortest possible time, since
production cells based on manual workstations are the easiest to design and
implement.
• It allows automation to be introduced gradually (in planned phases), as demand
for the product grows, engineering changes in the product are made, and time is
provided to do a thorough design job on the automated manufacturing system.
• It avoids the commitment to a high level of automation from the start, because there
is always a risk that demand for the product will not justify it.
18 Chap. 1 / Introduction

1.5 About This Book

The title of this book gives a good indication of its contents, as any textbook title should.
This chapter has provided an overview of production systems, their components, and how
they are sometimes automated and computerized. This overview is summarized in Figure
1.4. An alternative perspective of production systems is presented in Figure 1.7, which
shows six major categories of technical topics related to production systems. The figure
is also a diagram of the book and how it is organized into six parts corresponding to these
categories.
Part I consists of two chapters that survey manufacturing operations and develop
mathematical models to measure performance and costs in manufacturing.
Part II covers automation and control technologies. Whereas this Introduction
­discusses automation in general terms, Part II describes the technologies, which include
industrial control systems, numerical control, industrial robotics, and programmable logic
controllers.
Part III is concerned with material handling and identification used in factories
and warehouses. The technologies involve equipment for transporting materials, storing
them, and automatically identifying them for tracking purposes.
Part IV emphasizes the integration of automation and material handling technolo-
gies into manufacturing systems that operate in the factory. Some of these systems are
highly automated, while others rely largely on manual labor. Chapters include coverage
of single-station work cells, production lines, assembly systems, cellular manufacturing,
and flexible manufacturing systems.
The importance of quality control must not be overlooked in modern production
systems. Part V covers this topic, dealing with statistical process control and inspec-
tion issues. Some of the significant inspection technologies are discussed here, such as
machine vision and coordinate measuring machines. As suggested in Figure 1.7, quality

Manufacturing
support systems
Enterprise level

Quality control
systems

Automation and Material handling

control technologies and identification
Factory level

Manufacturing systems

Manufacturing operations

Figure 1.7 The six major categories of technical

topics related to production systems, corresponding
to the six parts of this book.
Review Questions 19

control (QC) systems are connected to both facilities and manufacturing support sys-
tems. QC is an enterprise-level function, but it has equipment and procedures that work
in the factory.
Finally, Part VI addresses the remaining manufacturing support functions in the
production system. Included is a chapter on product design and how it is supported
by CAD. Other chapters include process planning and design for manufacturing, pro-
duction planning and control, including topics such as material requirements planning
(MRP, mentioned earlier), manufacturing resource planning (MRP II), and enterprise
resource planning (ERP). The book concludes with a chapter on just-in-time and lean
production—approaches that modern manufacturing companies are using to run their
businesses.

References

[1] Black, J. T., The Design of the Factory with a Future, McGraw-Hill, Inc., New York,
NY, 1991.
[2] Groover, M. P., Fundamentals of Modern Manufacturing: Materials, Processes, and Systems,
5th ed., John Wiley & Sons, Inc., Hoboken, NJ, 2013.
[3] Groover, M. P., Work Systems and the Methods, Measurement, and Management of Work,
Pearson/Prentice Hall, Upper Saddle River, NJ, 2007.
[4] Harrington, J., Computer Integrated Manufacturing, Industrial Press, Inc., New York,
NY, 1973.
[5] Kapp, K. M., “The USA Principle,” APICS—The Performance Advantage, June 1997, pp. 62–66.
[6] Spangler, T., R. Mahajan, S. Puckett, and D. Stakem, “Manual Labor—Advantages, When
and Where?” MSE 427 Term Paper, Lehigh University, 1998.

Review Questions

1.1 What is a production system?

1.2 Production systems consist of two major components. Name and briefly define them.
1.3 What are manufacturing systems, and how are they distinguished from production systems?
1.4 Manufacturing systems are divided into three categories, according to worker participation.
Name them.
1.5 What are the four functions included within the scope of manufacturing support systems?
1.6 Three basic types of automation are defined in the text. What is fixed automation and what
are some of its features?
1.7 What is programmable automation and what are some of its features?
1.8 What is flexible automation and what are some of its features?
1.9 What is computer-integrated manufacturing?
1.10 What are some of the reasons why companies automate their operations?
1.11 Identify three situations in which manual labor is preferred over automation.
1.12 Human workers will be needed in factory operations, even in the most highly automated
systems. The text identifies at least four types of work for which humans will be needed.
Name them.