Product life cycle

Economy of Scale and Economy of Scope

• Economy of Scale
• Definition: Reduction in cost per unit resulting from increased
production, realized through operational efficiencies. Economies of
scale can be accomplished because as production increases, the
cost of producing each additional unit falls.
• Economy of Scope
• Definition: The situation that arises when the cost of being able to
manufacture multiple products simultaneously proves more
efficient than that of being able to manufacture single product at a
time
What is economies of scale?

• The lower average cost of production

• Extra profit to gain

• Benefits of a business.

• none
 Economy of Scope
• Economy of scope arises in several sectors of manufacturing, but
perhaps the most predominantly in electronic product
manufacturing where complete product life cycle, from
conception to market, are executed in a matter of months, if not
weeks.
• Therefore, to shrink the time to market drastically use of
automated tools is mandated in all phases of the product life
cycle.
• Additionally, since a wide variety of products need to be
manufactured within the life period of a factory, rapid
programmability and reconfigurability of machines and
processes becomes a key requirement for commercial success.
Which one of the following groups do economies of scale not help?
A. Small businesses.
B. Large production companies
C. Consumers
D. Society at large
 Point to Ponder: 8
• A. You give an example of an industry where economy of scope is more
significant than the economy of scale?
• Ans: One such example would a job shop which manufactures custom
machine parts by machining according to customer drawings. Another
example would be a factory to manufacture Personal Computer
components
• B. Can you give an example of an industry where economy of scale is
more significant than the economy of scope?
• Ans: One such example would be a Power plant. Another one would be a
Steel Plant.
 Types of production systems
• Continuous flow process: Manufactured product is in
continuous quantities i.e., the product is not a discrete
object. Moreover, for such processes, the volume of
production is generally very high, while the product variation
is relatively low. Typical examples of such processes include
Oil Refineries, Iron and Steel Plants, Cement and Chemical
Plants.

• Mass Manufacturing of Discrete Products: Products are

discrete objects and manufactured in large volumes. Product
variation is very limited. Typical examples are Appliances,
Automobiles etc.

• Batch Production: In a batch production process the product

is either discrete or continuous. However, the variation in
product types is larger than in continuous-flow processes.
The same set of equipment is used to manufacture all the
product types. However for each batch of a given product
type a distinct set of operating parameters must be
established. This set is often referred to as the “recipe” for
the batch. Typical examples here would be Pharmaceuticals,
Casting Foundries, Plastic moulding, Printing etc.

• Job shop Production: Typically designed for manufacturing

small quantities of discrete products, which are custom
built, generally according to drawings supplied by
customers. Any variation in the product can be made.
Examples include Machine Shops, Prototyping facilities etc.
Iron and Steel Plants plant comes under
which production system

A. continues flow
B. batch production,
C. mass manufacturing
D. job shop production
Casting foundry industry used which type of
production systems

A. continuos flow

B. batch production,

C. mass manufacturing

D. job shop production

Bottom of Form
Oil Refineries industry used which type of production systems

A. continuos flow

B. batch production,

C. mass manufacturing

D. job shop production

Parameters Fixed Manufacturing Programmable Flexible Integrated
Systems Manufacturing Manufacturing Manufacturing
Systems Systems Systems

Salient • High Volume •Changeable •Frequent Change of •To control the whole
Features • Fixed Efficient Operation Sequence of operators (GUI) factory
•Dedicated Equipment operation •Computer controlled •Adv optimizing
•Electronic Controls •Prog. Material •Computer
Handling Communication
•Productivity
Management
Factory Type •Continuous Flow •Batch Process •Job Shops •All types
•Discrete Mass Production •Mass Production •Batch Process •Large factories

Examples • Process Automation •NC Machines •CNC M/C Centers •Chemical Process
• Conveyors •Assembly Robots •Automatic Guided Automation
•Paint Shops Vehicles •Plant-wide CIM
•Transfer Line
•Car Design M800
Types of Automation Systems

• Fixed Automation: It is used in high volume production with dedicated

equipment, which has a fixed set of operation and designed to be efficient
for this set. Continuous flow and Discrete Mass Production systems use this
automation. e.g. Distillation Process, Conveyors, Paint Shops, Transfer lines
etc. A process using mechanized machinery to perform fixed and repetitive
operations in order to produce a high volume of similar parts.

• Programmable Automation: It is used for a changeable sequence of

operation and configuration of the machines using electronic controls.
However, non-trivial programming effort may be needed to reprogram the
machine or sequence of operations. Investment on programmable
equipment is less, as production process is not changed frequently. It is
typically used in Batch process where job variety is low and product volume
is medium to high, and sometimes in mass production also. e.g. in Steel
Rolling Mills, Paper Mills etc
• Flexible Automation: It is used in Flexible Manufacturing Systems (FMS) which
is invariably computer controlled. Human operators give high-level commands in
the form of codes entered into computer identifying product and its location in the
sequence and the lower level changes are done automatically. Each production
machine receives settings/instructions from computer. These automatically
loads/unloads required tools and carries out their processing instructions. After
processing, products are automatically transferred to next machine. It is typically
used in job shops and batch processes where use Multi purpose CNC machines,
Automated Guided Vehicles (AGV) etc.

• Integrated Automation: It denotes complete automation of a manufacturing plant,

with all processes functioning under computer control and under coordination
through digital information processing. It includes technologies such as computer-
aided design and manufacturing, computer-aided process planning, computer
numerical control machine tools, flexible machining systems, automated storage
and retrieval systems, automated material handling systems such as robots and
automated cranes and conveyors, computerized scheduling and production
control. It may also integrate a business system through a common database. In
other words, it symbolizes full integration of process and management operations
using information and communication technologies. Typical examples of such
technologies are seen in Advanced Process Automation Systems and Computer
Integrated Manufacturing (CIM)
 The Functional Elements of Industrial
Automation

• An Industrial Automation System consists of numerous elements that perform

a variety of functions related to Instrumentation, Control, Supervision and
Operations Management related to the industrial process. These elements
may also communicate with one another to exchange information necessary
for overall coordination and optimized operation of the plant/factory/process.
Below, we classify the major functional elements typically found in IA systems
and also describe the nature of technologies that are employed to realize the
functions.
Sensing and Actuation Elements

• These elements interface directly and physically to the process

equipment and machines. The sensing elements translate the
physical process signals such as temperature, pressure or
displacement to convenient electrical or pneumatic forms of
information, so that these signals can be used for analysis, decisions
and finally, computation of control inputs. These computed control
inputs, which again are in convenient electrical or pneumatic forms
of information, need to be converted to physical process inputs such
as, heat, force or flow-rate, before they can be applied to effect the
desired changes in the process outputs. Such physical control inputs
are provided by the actuation elements.
Industrial Sensors and Instrument Systems
• The physical medium refers to the object where a • The
physical phenomenon is taking place and we are
interested in the measurement of some physical
variable associated with the phenomenon.
• The sensing element is affected by the
phenomenon in the physical medium either through
direct or physical contact or through indirect
interaction of the phenomenon in the medium with
some component of the sensing element.
of
signal-conditioning element serves the function
altering the nature of the signal generated by the
sensing element. Since the method of converting the
nature of the signal generated in the sensor to
another suitable signal form (usually electrical)
depends essentially on the sensor, individual signal
conditioning modules are characteristic of a group of
sensing elements.
• The signal processing element is used to process the
signal generated by the first stage for a variety of
purposes such as, filtering (to remove noise),
diagnostics (to assess the health of the sensor),
linearisation (to obtain an output which is linearly
related with the physical measurand etc. Signal
processing systems are therefore usually more
general purpose in nature.
• The target signal-handling element may perform a
variety of functions depending on the target
application. It may therefore contain data/signal
display modules, recording or/storage modules, or
simply a feedback to a process control system.
Examples include a temperature chart recorder, an
instrumentation tape recorder, a digital display or an
Analog to Digital Converter (ADC) followed by an
interface to a process control computer.
 Industrial Actuator Systems
Actuation systems convert the input signals computed by
the control systems into forms that can be applied to the
actual process and would produce the desired variations in
the process physical variables.
The non-electrical power conversion elements are used to
amplify power further, if necessary, typically using hydraulic
or pneumatic mechanisms.

The non-electrical variable conversion elements may be

The electronic signal-processing element accepts the used further to tranform the actuated variable in desired
command from the control system in electrical form. The forms, often in several stages. Typical examples include
command is processed in various ways. For example it may motion-to-flow rate conversion in flow-valves, rotary to
be filtered to avoid applying input signals of certain linear motion converters using mechanisms, flow-rate to
heat conversion using steam or other hot fluids etc.
frequencies that may cause resonance. Many actuators are
themselves closed feedback controlled units for precision
of the actuation operation. Therefore the electronic signal- Other Miscellaneous Elements such as Auxiliaries for
processing unit often contains the control system for the Lubrication/Cooling/Filtering, Reservoirs, Prime Movers etc.,
actuator itself. sensors for feedback, components for display, remote
operations, as well as safety mechanisms since the power
The electronic power amplification element sometimes handling level is significantly high.
contains linear power amplification stages called servo-
amplifiers. In other cases, it may comprise power electronic
drive circuits such as for motor driven actuators.
The variable conversion element serves the function of
altering the nature of the signal generated by the electronic
power amplification element from electrical to non-
electrical form, generally in the form of motion. Examples
include electrohydraulic servo valve, stepper/servo motors,
Current to Pneumatic Pressure converters etc.
The Architecture of Elements: The
Automation Pyramid
• Various components in an industrial automation system can be
explained using the automation pyramid as shown above. Here, various
layers represent the wideness ( in the sense of no. of devices ), and
fastness of components on the time-scale.
• Sensors and Acuators Layer: This layer is closest to the proceses and
machines, used to translate signals sothat signals can be derived from
processes for analysis and decisions and hence control signals can be
applied to the processes. This forms the base layer of the pyramid also
called ‘level 0’ layer.
• Automatic Control Layer: This layer consists of automatic control and
monitoring systems, which drive the actuators using the process
information given by sensors. This is called as ‘level 1’ layer.
• Supervisory Control Layer: This layer drives the automatic control
system by setting target/goal to the controller. Supervisory Control
looks after the equipment, which may consis of several control loops.
This is called as ‘level 2’ layer.
• Production Control Layer: This solves the decision problems like
production targets, resource allocation, task allocation to machines,
maintenance management etc. This is called ‘level 3’ layer.
• Enterprise control layer: This deals less technical and more commercial
activities like supply, demand, cash flow, product marketing etc. This is
called as the ‘level 4’ layer.
Benefits

• Replacing human operators in tasks that involve hard physical or monotonous

work.
• Replacing humans in tasks performed in dangerous environments such as those
with temperature extremes or radioactive and toxic atmospheres.
• Making tasks that are beyond human capabilities easier. Handling heavy or large
loads, manipulating tiny objects or the requirement to make products very
quickly or slowly are examples of this.
• Production is often faster and labor costs less on a per product basis than the
equivalent manual operations.
• Automation systems can easily incorporate quality checks and verifications to
reduce the number of out-of-tolerance parts being produced while allowing for
statistical process control that will allow for a more consistent and uniform
product.
• Economic improvement. Automation can serve as the catalyst for improvement
in the economies of enterprises or society. For example, the gross national
income and standard of living in Germany and Japan improved drastically in the
20th century, due in large part to embracing automation for the production of
weapons, automobiles, textiles and other goods for export.
Disadvantages

• Technology limits. Current technology is unable to automate all desired tasks. Some tasks cannot be
easily automated, such as the production or assembly of products with inconsistent component sizes or in
tasks where manual dexterity is required. There are some things that are best left to human assembly and
manipulation.

• Economic limits. Certain tasks would cost more to automate than to perform manually. Automation is
typically best suited to processes that are repeatable, consistent and high volume.

• Unpredictable development costs. The research and development cost of automating a process is difficult
to predict accurately beforehand. Since this cost can have a large impact on profitability, it is possible to
finish automating a process only to discover that there is no economic advantage in doing so. With the
advent and continued growth of different types of production lines, however, more accurate estimates
based on previous projects can be made.

• Initial costs are relatively high. The automation of a new product or the construction of a new plant
requires a huge initial investment compared to the unit cost of the product. Even machinery for which the
development cost has already been recovered is expensive in terms of hardware and labor. The cost can
be prohibitive for custom production lines where product handling and tooling must be developed.

• A skilled maintenance department is often required to service and maintain the automation system in
proper working order. Failure to maintain the automation system will ultimately result in lost production
and/or bad parts being produced.
Measurement systems

• Measurement is the assignment of a number to a characteristic of an

object or event, which can be compared with other objects or events
Characteristics of
Instruments
 There are Two types of
characteristics of instruments:-

1.Staticcharacteristics of
instruments
2.Dynamic Characteristics of
instruments.
1.Static Characteristics

 The static characteristics of an

instrument are required to be
considered for the instruments which
measure unvarying process
conditions.
The static characteristics are
defined for the instruments which
measure quantities which do not
vary with time.
1. Accuracy
2. Sensitivity
3. Reproducibility
4. Drift
5. Static error
6. Dead zone
7. Precision
8. Threshold
9. Linearity
10. Stability
11. Range or Span
12. Bais
13. Tolerance
14. Hysteresis
 1. Accuracy
It is the degree of closeness with which an
instrument reading approaches the true value of
the quantity being measured.
The accuracy of a measurement indicates the
nearness to the actual/true value of the quantity.
 2.Sensitivity
 Sensitivity is the ratio of change in output of
an instrument to the change in input.
 The manufactures specify sensitivity as the
ratio of magnitude of the measured quantity
to the magnitude of the response.This ratio is
called as Inverse sensitivity or deflection
factor.
Sensitivity Meter:-
 3.Reproducibility

 Reproducibility is defined as the degree of

closeness by which a given value can be
repeatedly measured.
The reproducibility is specified for a period of
time.
Perfect reproducibility signifies that the given
readings that are taken for an input, do not vary
with time..
 4.Drift

The drift is defined as the gradual shift in the

indication over a period of time where in the
input variable does not change.
Drift may be caused because of environment
factors like stray electric fields, stray magnetic
fields, thermal e.m.fs, changes in temperature,
mechanical vibrations etc.
Drift is classified into three categories:
1.Zero drift
2.Span drift or sensitivity drift
3.Zonal drift
 5. Static error

It is the deviation from the true value of the

measured variable.
It involves the comparison of an unknown
quantity with an accepted standard quantity.
The degree to which an instrument approaches
to its excepted value is expressed terms of error
of measurement.
 6.Dead zone
It is the largest changes of input quantity for
which there is no output.
For e.g. the input that is applied to an
instrument may not be sufficient to overcome
friction. It will only respond when it overcomes
the friction forces.
 7.Precision
It is a measure of the reproducibility of the
measurement that is given a fixed value of
variable.
Precision is a measure of the degree to which
successive measurements differ from each
other.
For example consider an instrument on which
readings can be taken upto 1∕100th of unit.
The instrument has zero adjustment error. So,
when we take a readings, the instrument is
highly precise. However as the instrument has
a zero adjustment error the readings obtained
are precise, but they are not accurate.
Thus, when a set of readings show precision,
the results agree among themselves. However, it
is not essential that the results are accurate.
Precision Measuring instruments
 8.Threshsold

Threshold is the smallest measurable input,

below which no output change can be identified.
While specifying threshold,
manufactures give the first detectable output
change.
 9.Linearity
Linearity is defined as the ability of an
instrument to reproduce its input linearly.
Linearity is simply a measure of the maximum
deviation of the calibration points from the ideal
straight line.
Linearity is defined as,
linearity=Maximum deviation of o/p
from idealized straight line ∕ Actual readings
 10.Stability

The ability of an instrument to retain its

performance throughout its specified storage life
and operating life is called as Stability.
Stability measurement instruments:-
11.Range or Span
The minimum and maximum values of a
quantity for which an instrument is designed to
measure is called its range or span. Sometimes
the accuracy is specified interms of range or
span of an instrument.
 12.Bais
The constant error which exists over the full
range of measurement of an instrument is called
bias. Such a bais can be completely eliminated
by calibration. The zero error is an example of
bais which can be removed by calibration.
 13.Tolerance

 It is the maximum allowable error that is

specified in terms of certain value while
measurement, it is called as tolerance.
It specifies the maximum allowable deviation of
a manufactured device from a mentioned value.
 14.Hysteresis
Hysteresis is a phenomenon which depicts
different output effects while loading and
unloading.
Hysteresis takes place due to the fact that all
the energy put into the stressed parts when
loading is not recoverable while unloading.
When the input of an instrument is varied from
zero to its full scale and then if the input is
decreased from its full scale value to zero, the
output varies. The output at the particular input
while increasing and decreasing varies because
of internal friction or hysteric damping.
 2.Dynamic Characteristics
Instruments rarely respond to the instantaneous
changes in the measured variables.Their response is
slow or sluggish due to mass, thermal capacitance,
electrical capacitance, inductance etc. sometimes, even
the instrument has to wait for some time till, the
response occurs.
These type of instruments are normally used for the
measurement of quantities that fluctuate with time.
The behaviour of such a system, where as the input
varies from instant to instant, the output also varies from
instant to instant is called as dynamic response of the
system.
Hence, the dynamic behaviour of the system is also
important as the static behaviour.
 The dynamic inputs are of two types:
1. Transient
2. Steady state periodic.
Transient response is defined as that part of the
response which goes to zero as the time
becomes large.
The steady state response is the
response that has a definite periodic cycle.
 The variations in the input, that are used
practically to achieve dynamic behaviour are:
I.Step input:-The input is subjected to a finite
and instantaneous change. E.g.: closing of
switch.
II.Ramp input:- The input linearly changes with
respect to time.
III. Parabolic input:- The input varies to the
square of time. This represents constant
acceleration.
IV. Sinusoidal input:- The input changes in
accordance with a sinusoidal function of
constant amplitude.
The dynamic characteristics of a measurement
system are:
1)Speed of response
2)Fidelity
3)Lag
4)Dynamic error
1) Speed of Response
 It is defined as the rapidity with which an
instrument, responds to the changes in the
 2) Fidelity
 It is defined as the degree to which a
measurement system is capable of faithfully
reproducing the changes in input, without any
dynamic error.
3)Lag
Every system requires its own time to respond to
the changes in input. This time is called as lag.
It is defined as the retardation
or delay, in the response of a system to
the changes in the input.
The lags are of two types:
1.Retardation lag:
As soon as there is a changes in the measured
quantity, the measurement system begins to
respond.
2.Time delay:
The response of the measurement system starts
after a dead time, once the input is applied.They
cause dynamic error.
4)Dynamic error
It is the difference between the true value of
the quantity that is to be measured, changing
with time and the measured value, if no static
error is assumed.