This document discusses various topics related to product and process life cycle management including:
1) It describes the different stages of a product life cycle from design and development to maturity and decline and how sales, costs and profits change at each stage.
2) It outlines different production planning techniques used such as CAD/CAM and lean practices that are suited to different life cycle stages.
3) It discusses factors like facility layouts, push-pull boundaries, and production processes that vary depending on where a product is in its life cycle.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online from Scribd
This document discusses various topics related to product and process life cycle management including:
1) It describes the different stages of a product life cycle from design and development to maturity and decline and how sales, costs and profits change at each stage.
2) It outlines different production planning techniques used such as CAD/CAM and lean practices that are suited to different life cycle stages.
3) It discusses factors like facility layouts, push-pull boundaries, and production processes that vary depending on where a product is in its life cycle.
This document discusses various topics related to product and process life cycle management including:
1) It describes the different stages of a product life cycle from design and development to maturity and decline and how sales, costs and profits change at each stage.
2) It outlines different production planning techniques used such as CAD/CAM and lean practices that are suited to different life cycle stages.
3) It discusses factors like facility layouts, push-pull boundaries, and production processes that vary depending on where a product is in its life cycle.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online from Scribd
This document discusses various topics related to product and process life cycle management including:
1) It describes the different stages of a product life cycle from design and development to maturity and decline and how sales, costs and profits change at each stage.
2) It outlines different production planning techniques used such as CAD/CAM and lean practices that are suited to different life cycle stages.
3) It discusses factors like facility layouts, push-pull boundaries, and production processes that vary depending on where a product is in its life cycle.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online from Scribd
Download as ppt, pdf, or txt
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OPM 08E: Operation Transformation Management
Instructor: K. S. Thyagaraj
Product and Process Life Cycle
Design & Development Introduction Growth Maturity Decline
Sales Costs Profits
high negative
low high negative few price, quality
rising high small few price, quality
peak low high many quality, delivery dependability product variety (but to a lesser extent than in Growth Stage), price
Competitors few Principle Order Qualifier Principle Order Winner -
design & performance, delivery lead time
product variety, delivery lead time
price (only successful products retained)
Product and Process Life Cycle
Design & Development Introduction Growth Maturity Decline
Production Planning Techniques
CAD/CAM, CIM Concurrent Engineering, FMEA, DFSS
finite scheduling using MRP-II, managing bottleneck using OPT/TOC. Design changes (if any) are incorporated. Less popular designs discarded.
finite scheduling using MRP-II, incorporating flexible, lean production practices with JIT final assembly
take advantage of economies-ofscale, and learning curve to reduce cost
take advantage of learning curve and reduced product variety to reduce cost
Product and Process Life Cycle
Design & Development Push-Pull boundary -
Introduction
Growth
Maturity
Decline
end-product made-to-order, components made-to-stock. Less of push more of pull.
end-product made-toorder, components made-tostock. More of push Less of pull.
end-products and components both made-tostock. All of Push
end-products and components both made-to-stock. All of Push
Product and Process Life Cycle
Design & Development Production Process -
Introduction
Growth
Maturity
Decline
fabrication is process focused with general purpose machines while assembly is product focused . Machines are preferably NC.
fabrication using Group Technology with general purpose machines Assembly is product focused. Machines are preferably NC
fabrication using Group Technology with special purpose machines with product focused assembly. Machines are preferably Hard Automated .
fabrication using Group Technology with special purpose machines with product focused assembly. Machines are (manually operated or NC) or Hard Automated if sufficient volume exists
Product and Process Life Cycle
Design & Development
Facility layout Job Breadth proportional to workers job satisfaction
Master Production Schedule- amount and need dates of specific end-items. MPS exploded- gives parts and sub-assemblies requirements offset by lead times- backward scheduled thus load on individual work centers is obtained assuming infinite capacity, based on one unit of average product in a product family, and std. hrs obtained using performance measurement. 10-20% of lead time is comprised of set-up and run-time remaining 80-90% of lead time the job spends waiting to be moved, being moved or in queue.
Medium Term Capacity Planning: Improve standard lead-time
Reduce set-up time(SMED/OTED)
Improve job movement improve workplace layout - waiting to be moved, being moved . For functional or process layout Computerized Relative Allocation of Facilities (CRAFT) Combination layout Process Layout for Fabrication and Product Layout for assembly GT (Cellular) Layout- parts requiring similar operations grouped together and undergo operations in a cell - machines arranged usually in U shape minimal no. of workers Assure Quality (TQM) Reduce WIP inventory- queue in front of work centers- improve scheduling, Reliability Centered Maintenance (RCM).
Short Term Capacity Planning: Leveling Load in Process Layout(job shop/batch flow) Overlapping-dont wait for entire lot to be completed - send portion of completed lot to next operation Operation splitting- splits lot and sends to more than one machine Lot splitting-breaking up order and running part of it ahead of schedule Reduce load- reject orders- negotiate longer due dates or acceptance of part shipments. Simulate alternate MPS on resource requirement and obtain feasible MPS. alternate routing, sub-contracting , scheduling overtime, reallocating work force,
Short Term Capacity Planning leveling load in Product Layout(worker/machine paced line flow) Assembly Line balancing
Short Term Capacity Planning in Job Shop
forward schedule- for custom order-delivery ASAP increases WIP backward schedule- assembly reduces WIP. Load Calculation- Gantt Chart Job Shop Loading- each job can be processed at any of the machine center and operation time varies at each machine 1. n jobs/n machines assignment method, and 2. n jobs/m(<n) machines- Index method
Short Term Capacity Planning in Job Shop
Job Sequencing: N jobs-1 machine 1. Priority Rules: (1)First Come First Serve, (2) Shortest Processing Time( best except for variance of job lateness (Slacktime per operation, Earliest Due Date), mean job tardiness (Critical Ratio))
(3)Slack-time per operation( (remaining time till due date -remaining
processing time)/remaining no. of operations), (4) Critical Ratio (remaining processing time/remaining time till due date),
2. Performance Measures: total, mean, and variance - flow time, lateness(+/-), tardiness(+), and waiting time.
Short Term Capacity Planning- Batch Flow-Managing Bottleneck
Load is in excess of capacity at bottleneck: 1. improve utilization 2. reduce variation in standard cycle time 3. reduce standard cycle time, and 4. increase machine availability. (1) and (2) improves efficiency at bottleneck
(3) and (4) increases capacity of bottleneck.
improve bottleneck utilization-see that bottleneck is not idle due to lack of material increase machine availability in short term by scheduling additional shifts and/or overtime, outsourcing part of job, sub-contracting workers. reduce standard run time- reduce set-up time (SMED/ OTED)- use CNC machines. reduce variation in standard run time- use CNC machines
Short Term Capacity Planning- Batch Flow
Job Sequencing: Flow shop 1. N jobs-2 machine in series,
2. N jobs- 3 machines in series,
3. N jobs- M machines in series, 4. N jobs- M identical machines in parallel.
Scheduling Process Industry
Scheduling Process Industryinverted BOM- example Refinery- jet fuel unleaded regular gasoline-unleaded high-octane gasoline- lot-size of each product to produce before changing over production to next product to be determined
Long Term Capacity Planning
Methodology : decision trees to evaluate alternatives 5-10 year decision period Example: Increase machine capacity in long term- by replacing with or adding a faster equipment.
Required number of machines=forecasted sales/(forecasted yield/machine) P(r-c)+(1-P)(-c)>=0, P>c/r
Large capacity increments (money tied up vs. economies of scale) or small capacity increments. Alternative capacity (overtime + multiple shifts postpones tying up money) + small capacity increments or large capacity increments.
Location of Facility and Transportation Design
Logistics cost (inventory, facility cost, and transportation) vs. Responsiveness. Location model: Gravity vs. Network optimization model Modes of transportation-air, package carriers, truck, rail, water, pipeline, intermodal Transportation Design evaluates options in terms of costs and complexity: (i) transportation cost vs. inventory aggregation cost. (ii) transportation cost vs. responsiveness Routing methods: saving matrix method, generalized assignment method.
Service Industry
Performance Standards Performance standards Purpose of labor costing, wage incentive, scheduling and machine loading
Informal-supervisors estimate and past performance data
Work-Time distribution: total standard time=normal time + standard allowance for personal time +
allowances for measured delays normal to the job + fatigue allowances
Performance Rating normal time=actual observed time x performance rating/100.
Work Measurement Work Measurement Systems Stop watch time studies and simultaneous performance rating Work sampling for proportion and non-cyclic pattern of work normal time=(total observed time x work time in decimals x average performance rating in decimals)/total pieces produced Standard data work measurement systems 1. 2. Universal data based on minute elements of motion Standard data based on major elements of job
Wage incentive 1. 2. (return) Piece rate Standard hour plan
SMED/OTED Advantages of small Set-up time: 1. costs less can change set-up more often can produce in smaller batches improved flexibility- reduced lead time 2. Smaller batches doesnt tie up machinery for long produce only what is needed (MTO) 3. Production defects in a batch is identified quickly and can be corrected. 4. WIP is reduced (flow time=WIP/throughput) and flow time is reduced for a given
throughput.
SMED/OTED Internal tasks (stop-time activities)- machine has to be stopped External tasks(run-time activities )- machine can be running.
Stage 1: Identify internal and external activities perform external activities while machine is working on another batch- instead of during the set-up time.
Stage 2: convert as many internal activities to external activities- (takes a number of
months and some expenditure in tooling and equipment) Stage 3: strive to eliminate /improve each elemt of the remaining internal and external activities-(takes 2-3 years or even longer-considerable expenditure)
(return)
Reliability Centered Maintenance
Reliability Centered Maintenance.
Stage 1: what failures might occur, what effect these failures would have, and how critical each would be in respect of both safety and economical consequence (FMEA). Stage 2: for each failure risk identified, deciding what action needs to be taken either to remove the risk of the failure occurring, or to minimize its effects (RCM diagram maximizing safety and obtain best value for money from maintenance activity.)
Reliability Centered Maintenance
FMEA: 1. Define equipment to be analyzed
2. Construct block diagrams
3. Identify failure modes and effects. 4. Determine criticality of each failure mode. 5. Identify failure detection methods. 6. Identify action required. 7. Assess effects of action taken. 8. Documentation RCM diagram: Preparing the RCM maintenance schedules Reducing the maintenance workload
