Processes and Technology

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 Process Technology
• At the most basic level, the types of
processes technology can be
categorized as follows:
• Conversion process. production method that
creates goods by combining supplies,
ingredients or raw materials using a formula
or recipe. It is frequently used in industries
that produce bulk quantities of goods, such
as food, beverages, refined oil, gasoline,
pharmaceuticals, chemicals and plastics.
The production process often requires a
thermal or chemical conversion, such as with
heat, time or pressure. As a result, a product
created through process manufacturing
cannot be disassembled into its constituent
parts. 6-2
 Process Technology
• Fabrication process. Fabrication is the process of
making something from semi-finished or raw materials
rather than from ready-made components. In other
words, it is the process of making something from
scratch rather than assembling something.
Fabrication has a great deal to do with manufacturing.
Fabrication is an industrial term that refers to the
manipulation of raw materials (such as steel) for the
making of machines and structures. Steel and other
metals are cut and shaped during the fabrication
process. Fabrication is a very hands-on part of the
manufacturing process. Although a fabrication shop
and a manufacturing plant can work independently, it
is unlikely that you will find a manufacturing
establishment that does not at least have close ties to
a fabrication shop. Most manufacturers have
fabricators in-house simply because of the frequency
that most manufacturing processes need the services
of a fabrication shop.
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 Process Technology
• Assembly process. he Assembly process is a
way of manufacturing a product where parts or
materials are added in a sequence by various
workers. For instance, A can put an engine in the
car and send it to B, who can fix the doors. Then,
B sends it to C for applying the wheels. Every
worker has her/his post; the unfinished good
comes to every worker by turn. The process
makes it possible for the workers to put together
more goods at a time, e.g. instead of putting
together a car at one time, the workers can apply
their skills on several cars the whole day. The
Ford Motor Company developed this process at
the beginning of the 20th Century. It started the
automobiles’ mass production.
Video the 4th Industrial Revolution 6-4
Important factors needed to be considered in
designing process.
1) Product variety – Is the product highly
standardized, or is the product highly customized?
2) Volume of output – Is the business created to
produce large volumes or a small amount of
output?
3) Is the technology to be used general purpose or
specialized? Is it capital intensive?
4) The skill level of employees, it is very high or
low?
5) What is the expected duration?

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6-6
It is useful to categorize processes as either make-to-order
or make-to-stock.
• In a make-to-order business, the customer’s order is not
manufactured until the order is received. This allows
customization to the exact specifications that the
customer requires. It may also be referred to as build-to-
order. This type of production is considered a pull type
system. The work is “pulled” through the process when
customer demand is present.
• The disadvantage of this type of system is that it takes
time for the firm to acquire any materials and needed
components, and then to schedule and produce the
customers order. Goods are made in small amounts, and
may be more expensive.

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• The advantage of this type of process is that
inventory is lower than in a typical make-to-stock
system. There is not any uncertainty about what
the customer desires and there is no obsolete
stock to be disposed of. Dell Computer has
utilized this type of system to produce personal
computers very successfully.

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• In a make-to-stock process, goods are
produced in anticipation of customer demand,
usually from a sales forecast. These products are
generally made in larger amounts and put into
storage to wait for customer orders. Although the
unit cost may be lower due to large production
volumes, there may be losses due to forecast
error, excess inventory, obsolescence and theft.
Lead times however are short because goods
are available when the customer places the
order. These goods are not customized, but
standardized.

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Manufacturing environments (process types)

• Most manufacturing environments fit into one of

five general categories or process types. Project,
job shop, batch, repetitive, and continuous.

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Manufacturing environments (process types)
cont.
Project
• A one-time event, such as construction of an apartment
building, implementation of a new ERP system, or writing
a book, would all be considered a project type of process.
Each of these projects have a high degree of
customization, substantial use of resources, and a
complex set of related activities. There is only a single
output at the end of the project.

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Manufacturing environments (process types)
cont.
Job Shop
• Many businesses have a job shop type of process. This is
most commonly used when the product being produced is
unique for each customer. It is a make-to-order type of
business where production is intermittent (i.e. rather than one
entire product being completed at a time, work will continue on
multiple products as time permits). Often the product has
unique characteristics for each customer. The workers in this
type of business are very highly skilled in their craft or trade.
Often they are referred to as craftsmen or makers. The volume
of output is low in a job shop. The equipment used is quite
general purpose. Examples include a small bakery that
produces beautiful custom wedding cakes, or a business that
makes custom guitars or bicycles based on the customers
measurements and preferences of materials and components.

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Manufacturing environments (process types)
cont.
Job Shop

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Manufacturing environments (process types)
cont.
Batch
• Some businesses are in the situation where they make groups
of identical products on a regular basis. These groups are
referred to as a batch. The batch will progress through a set of
steps to be completed from the start to the end. An
organization may have multiple batches at different stages
coming through the process. This type of processing is also
intermittent. (start, stop, start) There is less variety in this type
of business (compared to a job shop) and the equipment used
will be relatively general purpose and suited to the industry
that they are in. Employees need to be skilled and
experienced at operating that equipment and producing these
products. Examples of products made using batch production
are baked goods, aircraft parts, clothing, and vaccines. An
important decision by these firms is how big the batch should
be.
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Manufacturing environments (process types)
cont.
Batch

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Manufacturing environments (process types)
cont.
Repetitive
• This type of business produces products that are more
standardized in nature. Usually the output is high. Since the
goods are quite standardized, the equipment used tends to be
quite specialized and often highly customized for that process.
The skill level of the employees is usually low because the
steps are highly standardized. Although these types of jobs
may not require a trade or extensive experience, they often do
require skills such as multi-tasking, concentration, problem
solving, and teamwork. Often, these processes use flexible
automation that allows for customization such as the addition
of upgraded features. Examples of a repetitive process include
assembly lines such as assembling automobiles or electronics,
a carwash, or a cafeteria line.

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Manufacturing environments (process types)
cont.
Repetitive

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Manufacturing environments (process types)
cont.
Continuous
A continuous process is when a very high volume of standardized
product is produced. The type of product being made is
described as non-discrete. This means that these businesses do
not produce individual products, rather a product that is often a
liquid or a product such as sugar, gasoline, or steel. An example
of this type of process is an oil refinery. There are not separate
individual workstations, rather the product flows from one step to
the next within the system. The equipment in this type of process
is highly complex and designed solely for that product at that
facility. There are very few workers except for those that are
responsible for process monitoring, maintenance, and cleaning.

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Manufacturing environments (process types)
cont.
Continuous

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Manufacturing environments (process types)
cont.
Hybrids
There are many firms using mixtures of process types. One such
common exception is the Mass Customization model of
production. In mass customization, a company combines low-
cost high volume of output, but each and every customer order
is customized to the customers specifications. Usually the use of
computer-aided manufacturing systems is what permits this
customization. Examples include furniture makers who wait to
produce the exact model of sofa based on the customers
dimensions and fabric choice, or the vehicle manufacturer that
has dozens of customization packages and paint options such
that each vehicle is custom for the purchaser. A key requirement
for successful mass customization is a modular design to allow
fast seamless change from each product to the next.

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Product-Process flow Matrix

(repetitive)

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 Types of Process flows
job Repetitive
PROJECT CONT.
shop/batch (Mass)

Type of Made-to- Made-to-

Unique order stock Commodity
product
(customized) (standardized )

One-at-a- Few
Type of Mass Mass
customer time individual
market market
customers

Product
demand Infrequent Fluctuates Stable Very stable

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 Types of Processes
Repetitive
job
PROJECT (Mass) CONT.
shop/batch

Demand Low to
Very low High Very high
volume medium

No. of Infinite
different Many, varied Few Very few
products variety

Repetitive, Continuous,
Production Long-term Discrete, job
system assembly process
project shops
lines industries

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 Types of Processes
Repetitive
job
PROJECT (Mass) CONT.
shop/batch

Varied General- Special- Highly

Equipment
purpose purpose automated

Mixing,
Primary type Specialized
of work Fabrication Assembly treating,
contracts
refining

Experts, Limited
Worker skills Wide range Equipment
crafts- range of
of skills monitors
persons skills

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 Types of Processes
Repetitive
job
PROJECT (Mass) CONT.
shop/batch

Efficiency, Highly efficient,

Custom work, Flexibility,
Advantages latest technology quality
speed, large capacity,
low cost ease of control

Capital
Non-repetitive, Costly, slow, Difficult to change,
Dis- investment;
small customer difficult to far-reaching errors,
advantages lack of
base, expensive manage limited variety
responsiveness
Machine shops, Automobiles,
Construction, print shops, televisions, Paint, chemicals,
Examples shipbuilding,
bakeries, computers, foodstuffs
spacecraft
education fast food

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 Process Selection With
Break-Even Analysis
• Study cost trade-offs based on demand volume
• Cost
• Fixed costs
• constant regardless of the number of units produced
• Variable costs
• vary with the volume of units produced
• Revenue
• price at which an item is sold

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 Process Selection With
Break-Even Analysis
• Total revenue
• price times volume sold
• Profit
• difference between total revenue and total cost

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 Process Selection With
Break-Even Analysis
Total cost = fixed cost + total variable cost
TC = cf + vcv
Total revenue = volume x price
TR = vp
Profit = total revenue - total cost
Z = TR – TC = vp - (cf + vcv)

cf = fixed cost
V = volume (i.e., number of units produced and sold)
cv = variable cost per unit
p = price per unit

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Process Selection With
Break-Even Analysis

TR = TC
vp = cf + vcv
vp - vcv = cf
v(p - cv) = cf
cf
v= p-c
v

Solving for Break-Even Point (Volume)

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 Break-Even Analysis

Fixed cost = cf = $2,000

Variable cost = cv = $50 per unit
Price = p = $100 per unit

Break-even point is
cf 2000
v= p-c = = 40 units
v 100 - 50

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Break-Even Analysis: Graph

Dollars

$3,000 — Total
cost
line

$2,000 —

$1,000 —

Total
revenue
line
40 Units
Break-even point

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Process Selection – Multiple Processes
Process A Process B
$2,000 + $50v = $10,000 + $30v
$20v = $8,000
v = 400 units

Below or equal to 400, choose A

Above or equal to 400, choose B

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 Process Plans (Process Flow Design)
• Process flow design focuses on the specific processes that raw
material, parts, and subassemblies follow as they move trough the
plant.
• The most common management tools used in planning the process
flow are:
• Assembly drawing
• assembly charts
• Operations and Route sheets
• Flow Process Charts

Process planning:-
converts designs into workable
instructions for manufacture or
delivery

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 Assembly Drawing

 Shows exploded
view of product
 Details relative
locations to
show how to
assemble the
product
 Assembly Chart
Bottom

Sesame seed
Top

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 Assembly Chart
R 209 Angle
1
Left
2
R 207 Angle SA bracket A1
1 assembly
Identifies the point of
3
Bolts w/nuts (2) production where
R 209 Angle components flow into
4
Right subassemblies and
R 207 Angle SA bracket
5 2 assembly
A2 ultimately into the
6
Bolts w/nuts (2) final product
Bolt w/nut
7
R 404 Roller
8 A3
Lock washer Poka-yoke
9 inspection
Part number tag
10 A4
Box w/packing material
11 A5
Operations and Route Sheet for Plastic Part

Part name Crevice Tool

Part No. 52074
Usage Hand-Vac
Assembly No. 520

Oper. No. Description Dept. Machine/Tools Time

10 Pour in plastic bits 041 Injection molding 2 min
20 Insert mold 041 #076 2 min
30 Check settings 041 113, 67, 650 20 min
& start machine
40 Collect parts & lay flat 051 Plastics finishing 10 min
50 Remove & clean mold 042 Parts washer 15 min
60 Break off rough edges 051 Plastics finishing 10 min

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 Route Sheet
Lists the operations and times required
to produce a component
Setup Operation
Process Machine Operations Time Time/Unit
1 Auto Insert 2 Insert Component 1.5 .4
Set 56
2 Manual Insert Component .5 2.3
Insert 1 Set 12C
3 Wave Solder Solder all 1.5 4.1
components
to board
4 Test 4 Circuit integrity .25 .5
test 4GY
Flow Process Chart Symbols

Operation
Inspection
Transportation
Delay
Storage

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Flow Process Chart of Apple Processing

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 Process Analysis
• Detailed process planning entails planning the steps of the
process itself. A process usually consists of:
• A set of tasks
• A flow of material and information that connect the set of tasks, and
• Storage of material and information
• Systematic study of all aspects of a process is needed:
• make it faster
• more efficient
• less costly
• more responsive
• Basic tools
• process flowcharts
• diagrams
• Maps
Process analysis involves adjusting the capacities and balance
among different parts of the process to maximize output or
minimize the costs with available resources.
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 Principles for Redesigning Processes

• Remove waste, simplify, and consolidate similar

activities
• Link processes to create value
• Let the swiftest and most capable enterprise
execute the process
• Flex process for any time, any place, any way
• Capture information digitally at the source and
propagate it through process

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 Principles for Redesigning Processes

• Provide visibility through fresher and richer

information about process status
• Fit process with sensors and feedback loops that
can prompt action
• Add analytic capabilities to the process
• Connect, collect, and create knowledge around
process through all who touch it
• Personalize process with preferences and habits
of participants

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 Technology Decisions

• Financial justification of technology

• Purchase cost
• Includes add-ons to make technology work
• Operating Costs
• Visualize how the technology will be used
• Annual Savings
• Better quality and efficiency save money
• Revenue Enhancement
• New technology can enhance revenue

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 Technology Decisions

• Financial justification of technology

• Replacement Analysis
• When to upgrade to new technology
depends on competitive environment
• Risk and Uncertainty
• It is risky to invest and risky not too
• Piecemeal Analysis
• Make sure new and existing technology are
compatible

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Components of e-Manufacturing

Cyber manufacturing (e-Manufacturing) is transformative

concept that involves the translation of data from
interconnected systems into predictive and prescriptive
operations to achieve resilient performance. It intertwines
industrial big data and smart analytics to discover and
comprehend invisible issues for decision making. With
the advent of Internet-of-Things (IoT) and smart,
predictive analytics technologies, companies have been
building a networked data-rich environment, which calls
for a systematic methodology to transform raw data into
meaningful and actionable operations.

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Components of e-Manufacturing

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 Product Technology

• Computer-aided design (CAD)

• Creates and communicates designs electronically
• Group technology (GT)
• Classifies designs into families for easy retrieval and
modification
• Computer-aided engineering (CAE)
• Tests functionality of CAD designs electronically
• Collaborative product commerce (CPC)
• Facilitates electronic communication and exchange of
information among designers and suppliers

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 Product Technology

• Product data management (PDM)

• Keeps track of design specs and revisions for the life
of the product
• Product life cycle management (PLM)
• Integrates decisions of those involved in product
development, manufacturing, sales, customer service,
recycling, and disposal
• Product configuration
• Defines products “configured” by customers who have
selected among various options, usually from a Web
site

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 Process Technology

• Standard for exchange of product model data (STEP)

• Set standards for communication among different CAD vendors;
translates CAD data into requirements for automated inspection and
manufacture
• Computer-aided design and manufacture (CAD/CAM)
• Electronic link between automated design (CAD) and automated
manufacture (CAM)
• Computer aided process (CAPP)
• Generates process plans based on database of similar requirements
• E-procurement
• Electronic purchasing of items from e-marketplaces, auctions, or
company websites

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 Manufacturing Technology

• Computer numerically control (CNC)

• Machines controlled by software to perform a range of operations
with the help of automated tool changers; collects processing
information and quality data
• Flexible manufacturing system (FMS)
• A collection of CNC machines connected by an automated
material handling system to produce a wide variety of parts
• Robots
• Programmable manipulators that can perform repetitive tasks;
more consistent than workers but less flexible
• Conveyors
• Fixed-path material handling; move items along a belt or chain;
“reads” package labels and diverts them to correct destination

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 Manufacturing Technology

• Automatic guided vehicle (AGV)

• Driverless trucks that move material along a specified path;
directed by wire or tape embedded in floor or by radio frequencies
• Automated storage and retrieval system (ASRS)
• An automated warehouse; items placed in a storage system and
retrieved by fast-moving stacker cranes; controlled by computer
• Process Control
• Continuous monitoring of automated equipment; makes real-time
decisions on ongoing operation, maintenance, and quality
• Computer-integrated manufacturing (CIM)
• Automated manufacturing systems integrated through computer
technology; also called e-manufacturing

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 Information Technology
• Business – to –Business (B2B)
• E-transactions between businesses usually via the Internet
• Business – to –Consumer (B2C)
• E-transactions between businesses and their customers usually via
the Internet
• Internet
• A global information system of computer networks that facilitates
communication and data transfer
• Intranet
• Communication networks internal to an organization; can also be
password (i.e., firewall) protected sites on the Internet

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 Information Technology

• Extranet
• Intranets connected to the Internet for shared access with select
suppliers, customers, and trading partners
• Bar Codes
• Series of vertical lines printed on packages that identify item and other
information
• Radio Frequency Identification tags (RFID)
• Integrated circuit embedded in a tag; can send and receive information; a
“twenty-first century bar code” with read/write capabilities
• Electronic data interchange (EDI)
• Computer-to-computer exchange of business documents over a proprietary
network; very expensive and inflexible

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 Information Technology

• Extensible markup language (XML)

• A markup language that facilitates computer–to–computer communication
over the Internet by tagging data before its is sent
• Enterprise resource planning (ERP)
• Software for managing key functions of an enterprise, including sales,
marketing, finance, accounting, production, materials management & human
resources
• Supply chain management (SCM)
• Software to manage flow of goods and information among a network of
suppliers, manufacturers and distributors
• Customer relationship management (CRM)
• Software to manage interactions with customers; compiling and analyzing
customer data

Amazon
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 Information Technology

• Decision support systems (DSS)

• Information system to help managers make decisions; includes
quantitative modeling components and interactive components for what-if
analysis
• Expert systems (ES)
• A computer system that uses the knowledge of experts to diagnose or
solve a problem
• Artificial intelligence (AI)
• Field of study replicating elements of human thought and natural
processes in software; includes expert systems, genetic algorithms,
neural networks, and fuzzy logic

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