Course Structure

Introduction to OTM;
Managing the Overview
Transformation Process

Process Types; Advanced Recognizing

Operations Technologies;

DAO2703 OTM
Process Flow Analytics the Plant
Aggregate

Week 2
Production Planning Planning for
the Plant;
Inventory Material Require- Operations PP&C Cycle
Management ments Planning Scheduling
Operations Processes Just-In-Time Improving the
and Technologies
Theory of
Systems Constraints Plant
Strategic
Operations Strategic
Considerations
Supply Chain
Management
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Process Selection Types of Operations Processes

Process selection A continuum (of) in terms of volume and flexibility
refers to deciding on the way Job Shop
production of goods or Low volume; high variety
services will be organized Batch (production)
Has major implications for Mid volume; mid variety
Capacity planning Repetitive (production)
Layout of facilities High volume; low variety
Equipment Continuous (production)
Design of work systems Very high volume; very little variety
Project (management)
Nonroutine; one of a kind

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Job Shop Job Shop

A job shop is used when a low volume of high-variety goods or
services are needed
Most highly customized goods and consumer services are
produced/provided in a ‘job shop’ setting
Not arranged according to a particular production/service sequence
Organizes similar skills, activities, and technologies into separate steps
with products/customers moving from one step to another with flexibility
Process focus; processing is intermittent; work using general-purpose
equipment and skilled workers
Can handle various processing requirements
Can also do jobs of same requirements in batches
Examples:
Manufacturing: A machine shop producing parts/components for machinery
Service: A vet clinic, treating different animals with different injuries/diseases
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Major challenges
Assigning workers to steps/tasks/activities/machines
Sequencing jobs (e.g., customer orders) to meet delivery requirements
Tools used in scheduling (e.g., assigning and sequencing)
Analytical tools in optimization
Heuristics: trial-and-error, rule of thumb
Trade-off
Flexibility vs. cost (e.g., idle time, labor skills, inventory)
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 Batch Batch
Batch processing is used when a moderate volume of goods Major challenges
and services is desired, and it can handle a moderate variety in Balance between variety and volume (batch size)
products or services Reduce changeover/setup times
Batch production involves the production of identical products made in Tools
batches (group)
Optimized batch size
The equipment need not be as flexible as in a job shop, but processing
is still intermittent Product & process technology innovation
The skill level of workers does not need to be as high as in a job shop Trade-off
due to lesser variety in the jobs being processed Variety (batch size) vs. cost (e.g., batch size decides the economy of
Examples: scale and inventory)
Manufacturing: Automotive spare-part manufacturers, bakeries; paint
manufacturers
Service: Airlines, movie theaters

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Repetitive Repetitive
A repetitive processing is used when higher volumes of more Major challenge
standardized goods or services are needed Activity design
Most consumer goods are made from a repetitive production line (e.g., Line can be balanced
assembly line) Cycle time can be optimized
It is normally arranged according to a particular production step Tools to balance the line
sequence (e.g., based on the product and process technology
requirements) Analytics using optimization tools
It can produce high quantity of a single (or low variety) product at high Heuristics: trial-and-error, rule of thumb
speed; only slight flexibility of equipment is needed Trade-off
Repetitive focus; skills of workers is generally low Speed vs. cost (e.g., inventory)
It can either be worker-paced or machine-paced line (a conveyor belt)
Examples:
Manufacturing: An automobile manufacturer; an electronics manufacturer
Service: Cafeteria lines; tickets collectors at concerts or sports events
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Continuous Types of Processing

A continuous system is used when a very high volume of
nondiscrete, highly standardized output is desired Job Shop Batch Repetitive/Assembly Continuous
Product-focus; almost no variety in output; no need for equipment flexibility Description Customized goods Semi-standardized Standardized goods or Highly
Depending on the complexity of the system and the expertise needed, or services goods or services services standardized goods
workers’ skill requirements range from low to high or services
Advantages Able to handle a Flexibility; easy to Low unit cost, high volume, Very efficient, very
Major challenge wide variety of add or change efficient high volume
To ensure continuous maintenance and supply work products or
services
Petroleum processing
Steel making Disadvantages Slow, high cost per Moderate cost per Low flexibility, high cost of Very rigid, lack of
unit, complex unit, moderate downtime variety, costly to
Tool planning and scheduling change, very high
scheduling complexity cost of downtime
Process and product technology breakthrough
Recycling and process technology advancement in steel making has cut energy
consumption by at least 50%
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 Process and Product Layouts
Product-Process Matrix Process layout
Layout that can handle varied processing requirements
Product Variety / Equipment Flexibility
Dept. A Dept. C Dept. E
Used for Intermittent processing
High Moderate Low Very Low Job Shop or Batch
Dept. B Dept. D Dept. F
Job Shop
Low/Very Low (Process focus) Product layout
Layout that uses standardized processing operations to achieve
Volume

Moderate Batch
smooth, rapid, high-volume flow

High Repetitive
Used for Repetitive Processing
Repetitive or Continuous
Continuous
Very High (Product focus)
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Processes vs. Activities/Functions

Project Process
Activity/Function Job Shop Batch Repetitive Continuous Projects
A project is used for work that is nonroutine, with a unique set
of objectives to be accomplished in a limited time frame Cost estimation Difficult Somewhat routine Routine Routine Simple to complex

Often a once-in-a-lifetime process management normally not repeated Cost per unit High Moderate Low Low Very high

Equipment flexibility and worker skills range from low to high Equipment used General purpose General purpose Special purpose Special purpose Varied
Examples: Fixed costs Low Moderate High Very high Varied
Manufacturing: Building a bridge/custom home/dam, publishing a book,
Variable costs High Moderate Low Very low High
Service: Making a movie, new product/service launching, consulting
Major challenge Labor skills High Moderate Low Low to high Low to high

Promote capabilities;
To achieve all the project goals within the given constraints Marketing Promote capabilities semi-standardized
Promote standardized Promote standardized Promote
goods and services goods and services capabilities
goods and services
Tools Complex, subject
Scheduling Complex Moderately complex Routine Routine
CPM (Critical Path Method) to change

PERT (Program Evaluation Review Technique) Work-in-process

inventory
High High Low Low Varied
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Technologies Technologies
Technology and technological innovation often have a major Automation is machinery that has sensing and control devices
influence on business processes that enable it to operate automatically
Technology (both physical and information) refers to applications of Three kinds of automation
scientific knowledge to the development and improvement of goods and
services and/or the processes that produce or provide them Fixed automation (aka hard automation) uses high-cost, specialized
equipment for a fixed sequence of operations
Hard technology: Equipment/devices that perform a variety of tasks in the
creation and delivery of goods and services. E.g., actuators, computers, An automated production facility in which the sequence of processing
microprocessors, optical switches, satellites, sensors, etc. operations is fixed by the equipment configuration
Soft technology: Application of the Internet, computer software, and information Suitable for products that are made in large volumes
systems that helps provide data, information, and analysis to facilitate the Limitation: minimal variety and high cost of making major changes in either
creation and delivery of goods and service. E.g., database systems, artificial product or process
intelligence programs, and voice-recognition software Examples: machining transfer lines in the automotive industry, automatic
Technological innovation (a competitive necessity) refers to the bottle-filling system in the beverage industry, automatic car parking system,
discovery and development of new or improved products, services, or etc.
processes for producing or providing
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 Technologies
Programmable automation (aka soft automation) involves the use of
general-purpose equipment controlled by a computer program that
provides both the sequence of operations and specific details about
each operation
Products are made in batch quantities ranging from several dozen to several
thousand units at a time
For each new batch, the production equipment must be reprogrammed and
changed over to accommodate the new product style -- a period of
nonproductive time followed by a production run for each new batch
Production rates are generally lower than in fixed automation -- designed to
facilitate product changeover rather than for product specialization
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Programmable Automation
Has the capability to produce a wide variety of low-volume products in
small batches economically
Computer-Aided Design (CAD)
Provides high resolution interactive graphics
Assists in development of product designs
Computer-Aided Engineering (CAE)
Provides computational engineering analysis of designs generated through CAD
Can complete thousands of analytical simulations, equivalent to thousands of
computing hours, speeding up production process
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CAPP: a Bridge between CAD & CAM
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Technologies
Flexible automation uses equipment that is more customized than that of
programmable automation
An extension of programmable automation
Variety of products is sufficiently limited so that the changeover of the
equipment can be done very quickly and automatically
Reprogramming of the equipment in flexible automation is done off-line -- the
programming is accomplished at a computer terminal without using the
production equipment itself
No need to group identical products into batches; instead, a mixture of different
products can be produced one right after another
Advantage: requires significantly less changeover time relative to
programmable automation; allows almost continuous operation of equipment
and product variety without the need to produce in batches
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Programmable Automation
Computer-Aided Manufacturing (CAM)
Use of computers directly to control processing or material handling equipment
Indirectly to support operations (Capacity Planning, Scheduling, Purchasing,
Inventory Control, MRP, etc.)
Computer-Aided Process Planning (CAPP)
Use of computer technology to aid in the process planning of a part or product, in
manufacturing
Determines processing steps required to make a part; CAPP programs develop
process plans or route sheets
Significant link between CAD and CAM
CAD-CAM Integration
Design specifications translated to manufacturing specifications electronically and
automatically
Evaluates designs in terms of functionality and manufacturability
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Programmable Automation
Benefits of CAD/CAM
Design flexibility
Improvement in productivity
Shorter manufacturing lead times; shorter time to market
Fast and accurate drawing; better product quality
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 Programmable Automation Programmable Automation
Numerical Control (NC) machine is Direct (Distributed) Numerical Control (DNC) machines are linked to a remote
used in metal fabrication process central computer that supplies instructions to each machine
Milling, drilling, boring, sanding and
sawing, punch presses and thermal
cutting machines
Controlled by a set of instructions in
the form of numbers, letters, and
symbols called a program
Does not have memory of its own

Computer Numerical Control (CNC)

machine
Controlled by a computer program Pro: best used in cases where parts are processed frequently and in small
written in alphanumeric data batches, where part geometry is complex, mistakes are costly, and there is a
Has its own computer memory possibility of frequent changes in design
Higher accuracy and precision Limitations: higher skill levels are needed to program the machines; inability to
detect tool wear and material variation
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Programmable Automation Programmable Automation

Robots 3D Printer: industrial robot that is controlled
using CAD
Mechanical manipulators under computer
control; provide material handling functions 3D printing (additive manufacturing) is a
process that creates a three-dimensional
and actual operations object by adding successive layers of material
Types of robots (See Table 6.4 on page 259 of the textbook)
Robots that follow a fixed set of instructions Materials used in 3D printing:
Programmable robots: repeat a set of Thermoplastics
movements after being led through a Metals
sequence; follow instructions from a computer Resins
Collaborative robots (cobots) are designed to Ceramics
work collaboratively with humans Earliest 3D printing manufacturing equipment
Optimize operations was developed by Hideo Kodama of the
Relieve monotonous stages Nagoya Municipal Industrial Research Institute
in 1981
Relieve stages in the assembly line that are
repetitive and tedious Enable quick and customized product design,
and optimize manufacturing processes
Increase safety
E.g., Ford uses 3D printing is to produce
Take over tasks that were previously automobile parts which are much lighter and
dangerous for human workers to carry out reduce assembly time of vehicles
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Programmable Automation Flexible Automation

Automated Guided Vehicles (AGVs)
Computer guided and controlled carts used to move parts and equipment
Widely used in industries such as automotive, production, packaging, healthcare &
pharmaceutical
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Evolved from programmable automation; uses equipment that is more
customized than that of programmable automation, thus requires
significantly less changeover time
Flexible Manufacturing System (FMS)
A group of machines with programmable controllers linked by an Automated
Material Handling System and integrated through a central computer
Can produce a variety of parts that have similar processing requirements
Automated Storage and Retrieval System (AS/RS)
Computer controlled storage and retrieval of raw materials, components, parts, etc.
Linked to the rest of production system by robots, AGVs and other material handling
systems
Advantages
Faster/lower-cost part changes
Lower direct labor cost
Reduced inventory
Consistent/better quality
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 Flexible Automation CIM System Components
Disadvantages
Limited ability to respond to product or product mix changes
Requires substantial preplanning and capital
Technological problems of exact part positioning and precise timing
Computer Integrated Manufacturing (CIM)
Computer integration of information from core manufacturing activities such as
engineering design, FMS, etc. with information from marketing, order entry,
maintenance, accounting and shipping (share a common database)
Computer Integrated Enterprise (CIE)
Orders; CAD/CAE/CAPP/CAM; FMS (DNC, robots, Planning and Scheduling
Systems); maintenance of machines; shipping of inputs/outputs; accounting and cost
data from workstations
The overall goal of CIM is to link various parts of an organization to achieve rapid
response to customer orders and/or product changes, to allow rapid production, and
to reduce indirect labor costs
Internet of Things (IoT) further enhances connectivity of devices (cell phones,
vehicles, audio and video device, and many more) through internet
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Technologies
Drones
Unmanned aircraft, usually small, and remotely controlled or
programmed to fly to a specific location
Applications:
Military: used as target decoys, for combat missions, research and
development, and for supervision, drones have been part and parcel of the
military forces worldwide
According to data from Globe Newswire, the global military drone market size is
projected to reach $23.78 billion by 2027
Commercial: fertilizing crop fields on an automated basis, monitoring traffic
incidents, surveying hard-to-reach places, or even delivering pizzas
According to Insider Intelligence, the drone services market size is expected to grow
from $4.4 billion in 2018 to $63.6 billion by 2025
Personal: used for film-making, recording, still photography and gaming by
common tech-savvy enthusiasts
Insider Intelligence expects sales of drones to top $12 billion in 2021
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