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Chapter 5

The document discusses production ramp-up, which refers to increasing a firm's production in anticipation of higher demand. It describes how manufacturing companies prepare for and manage ramping up production of new products. Some key aspects of ramp-up covered include completing testing and qualification, ensuring supply chain readiness, addressing engineering changes, and improving production performance through organizational learning and rapid problem solving. Ramp-up is a complex phase that requires careful planning and management of factors like processes, personnel, logistics, and production volume/quality.

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26 views23 pages

Chapter 5

The document discusses production ramp-up, which refers to increasing a firm's production in anticipation of higher demand. It describes how manufacturing companies prepare for and manage ramping up production of new products. Some key aspects of ramp-up covered include completing testing and qualification, ensuring supply chain readiness, addressing engineering changes, and improving production performance through organizational learning and rapid problem solving. Ramp-up is a complex phase that requires careful planning and management of factors like processes, personnel, logistics, and production volume/quality.

Uploaded by

gideykibrom80
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Chapter 5

Production Ram-up
Production ram-up
• Ramp up is a term used
in economics and business to describe an
increase in firm production ahead of
anticipated increases in product demand.
• Alternatively, ramp up describes the period
from completed initial product development
to maximum capacity utilization, characterized
by product and process experimentation and
improvements
• A new facility will aim to ram-up for fulfilling
the capacity and achieve the company’s usual
quality as much as possible
• Accomplishing full production volume in-time,
in-quality and in-cost
• Manufacturing companies speak about a ‘ramp-
up’ when a new series product or a major
product change is to be produced and brought
to market.
• Strictly speaking, the ramp-up starts with the
first unit produced and ends when the planned
production volume is reached.
• However, in order to manage such a ramp-up
with a high degree of precision, a fairly long
preparation period is usually necessary, starting
near or after finalization of the engineering
design of the product, i.e. the design freeze.
Generic Phase/Gate Process
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
Concept System-Level Detail Testing and Production
Development Design Design Refinement Ramp-up

Production Ramp-up: complete documentation,


complete final qualification testing, all parts and
components available for production volumes,
production tooling complete, build first
production runs, and release documentation to
production.

Fall 2009 5
Ramp-Up Curve
Maturity problems at ramp-up/SOP have significant impact on
profitability
Activities and Tasks during the various Phases.
Ram-up strategies
• Production downtime
• Ram-up delays
• Loss of production
Problems and Challenges during Ramp-Up

• Unlike the steady-state production phase,


during which the production lines are balanced,
the flows of hardware and paperwork are
smooth, and no major changes in product
design are assumed
• The ramp-up phase is complicated by many
factors that cause more frequent production
problems and a more complicated managerial
decision-making process.
• The production challenges combined with the
previously mentioned characteristics of the ramp-up
phase might produce production problems, such as
machine breakdowns, process stops , a long setup time
,mismatch between the new product characteristics
and the production process and more frequent
production disturbances
• In addition, engineering changes are critical issue that
interrupt ramp-up and hinder efforts to reduce the
time that it takes
• These changes aim to align the product design with the
production process to guarantee the manufacturability
of new products
• Less accurate capacity forecasting
• Less than optimal decisions
• Poor cooperation and information exchange
• Miscommunication between employees from
different disciplines and supply delay, and
• Material quality problems
Importance of Enhancing Ramp-Up
Performance
• Faster market penetration,
• broader market acceptance,
• an earlier start in accumulating experience
with high-volume production, and
• quicker freeing up of resources to support
other development projects.
• A source of competitive advantage
• maintaining a leading market position
Characteristics of the Ramp-Up Phase
• Many features that characterize the ramp-up period can be
directly connected to performance indicators, such as
– production volume,
– product quality,
– yields,
– time, and
– costs.
• The production volume and total production time are functions
of the cycle time, which is typically reduced in a constant
manner over time during the ramping up of the production
• However, this contributes to the difficulty of output rate
prediction (Sturm et al., 2003). Constant cycle time reduction,
along with other factors, leads to increased production rates.
In the triangle the base is quality since without quality the
volume is only a waste, since end consumers will not accept
a product without the essential quality that is demanded by
the customer.
Product
Developme
nt System of
High-
Performing
Volume
Producers
Various factors that influence ramp-up
performance
1. Product development: Which is the level of innovation as
compared to already existing products
2. Production processes: This involves the measure of process
strength, suppleness and newness
3. Organization and personnel: It is the measure of
qualification and responsibility transparency
4. Logistics: Which is considered as the general term for the
accessibility and quality of the various parts and
subassemblies
5. Networks and cooperation: Is characterized by the
information flow and information clearness
6. Methods and tools: Involves project management as well as
transformation management practices
7. Workers skills: Broad skills created by different task assignments in
assembly as well as a diverse product mix are a major factor for ramp-up
advantage.
8. Rapid organizational learning: Fast learning in ramp-up depends on
effective real-time communication, continuity of the production system,
exposure of the product during pilot as well as working on the skills at
working level of problem solving. It is also essential for the supervisors
to circulate around the company while discussing problems and
solutions with the workers.
9. Continues improvement (kaizen) is, although effective in increasing the
output of the production, not enough for the radical increase that a
serious ramp-up in production may demand. Here more radical changes
are demanded (kaikaku) and as an example in an American company the
problem solving of ramp-up was accomplished by a team of engineers
consisting of totally 250 employees assigned to the task on a project
basis.
10. Rapid prototype cycles as well as fast die manufacturing cycles can
create great advantages in overall lead-time as well as quality of design.

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