KOMBOLCHA POLYTECHNIC COLLEGE

Department Of Metal Manufacturing

 Module Title: - Managing Competitive Manufacturing

Process
 Module code: MNF MTM5 01 0311
 Nominal duration: 120Hours
By Muluneh N 04/10/2024 1
This module covers the units :

1. Analyze the existing manufacturing process.

2. Draft a virtual flow process.
3. Prepare proposals for process redesign.
4. Implement the plan.

By Muluneh N 04/10/2024 2
Learning Outcomes (Objectives):-
 At the end of this module the trainees will be able to:
1. Analyze the existing manufacturing process.
2. Draft a virtual flow process.
3. Prepare proposals for process redesign.
4. Implement the plan.

By Muluneh N 04/10/2024 3
1.1 Introduction:- Manufacturing

 Manufacturing is the process of converting raw

materials into products.
 It includes the design and production of goods using

various production methods and techniques.

 IT involves activities in which the manufactured

product itself used to make other products.

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What is Manufacturing process?
The manufacturing process is a process in which it results in
commercial product
Manufacturing process is that part of the production process
which is directly concerned with the change of form or
dimensions of the part being produced.
• The end result should be a product that meets high quality
standards and expected service requirements-and that also
economical to produce.
By Muluneh N 04/10/2024 5
The broad categories of manufacturing process for
materials are:
a) Casting (expendable and permanent mold).
b) Forming and shaping ( rolling , forging ,extrusion , drawing ,sheet
forming ,powder metallurgy , and molding)
c) Machining ( turning , boring , drilling , planning ,shaping, broaching,
grinding, ultrasonic machining; and chemical , electrical and
electrochemical; and high energy beam machining) .
d) Joining ( welding , brazing , soldering , diffusion bonding ,adhesive
bonding and mechanical joining).
e) Finishing operations (honing, lapping, polishing, burnishing, de-burring,
surface treating, coating and plating).

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PRODUCTION PROCESS
It is the process followed in a plant for converting semi-
finished products or raw materials into finished products or
raw materials ..
The art of converting raw material into finished goods with
application of different types of tools, equipment’s, machine
tools,
Both Manufacturing setups and manufacturing processes, is
known as production.

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 There are three basic types of production system .
.


1) Job production:- it comprises of an operator or group of

operators to work upon a single job and complete it before
proceeding to the next job.
2) Batch production :- Manufacturing of products (less in
number say 200 to 800) with variety of similar parts .
3) Mass production:- production of large number of identical
products (say more than 50000) that needs line layout type of
plant layout which is highly rigid type and involves
automation and huge amount of investment .
By Muluneh N 04/10/2024 8
 1.2 Process Justification and Quality

Process validation is defined as the collection and

evaluation of data, from the process design stage through
commercial production,
Effective process validation contributes significantly to
assuring quality.
The basic principle of quality assurance is that a product
should be produced that is fit for its intended use

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Three stages of Process validation.
1) Process Design: The commercial manufacturing process is
defined during this stage
2) Process Qualification: the process design is evaluated to
determine if the process is capable of reproducible
commercial manufacturing.
3) Continued Process Verification: Ongoing assurance is gained
during routine production that the process remains in a state of
control

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 1.3. Processing steps for customer orders.
What is customer order?
It is a formal order from the customer which provides details of the
amount and due date for a customer's need of the product..
It is a written document specifying the orders made by the customer.
it states the amount of money to be paid, the due date on which the
funds can be expected, and the quantity of the product delivered.
It is mainly used in business to help customers get their products

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.
There are two types of it: purchase
orders and sales orders.
1) A purchase order is an agreement between buyer and
seller for the future delivery of goods or services at a
predetermined price.
2) a sales order provides information about the current
availability of specific items with no commitment to
purchase

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Uses of customer order

 It can help businesses drive sales and revenue by allowing

customers to purchase goods or services.
 used as a tool for tracking inventory levels and forecasting
demand,
 Used to measure customer satisfaction and loyalty, allowing
businesses to better understand their customers’ needs and
preferences.
 it can provide valuable insights into market trends and
opportunities, which can inform business decisions
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Steps of Customer Order Processing
1. Customer order :- the customer browses through the products enlisted by the
company, and upon liking, one places an order.
2. Acceptance of order :- The customer order must be accepted by the company to
enter into a transactional relationship.
3. Delivery :-The company organizes all items per instructions and manages all
packaging and transfer-related issues with expertise. Now it is time to deliver the
shipment to the proper location.
4. Payment :- The payment might be immediately followed by the shipment, or it
might have been done in advance.
5. Service/ facility :- not cut off all ties with the customer after selling the product, but
need to provide servicing and maintenance of the sold products for may be six
months, or till the guarantee period.
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1.4 Competitive manufacturing strategy
1.4.1 Operations Management ( OP)
Operations management is defined as the design,
operation, and improvement of the systems that create and
deliver the firm’s / company’s primary products and
services.

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OM concerns with
1) PLANNING
 Activities that establishes a course of action and guide future decision-making is
planning.
 The operations manager defines the objectives for the operations subsystem of the
organization,.
 It also involves product planning, facility designing and using the conversion
process.
1) ORGANIZING
 Activities that establishes a structure of tasks and authority.
 Operation managers establish a structure of roles and the flow of information
within the operations subsystem.

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3 CONTROLLING
 Activities that assure the actual performance in accordance with planned
performance.
 To ensure that the plans for the operations subsystems are accomplished,
the operations manager must exercise control by measuring actual
outputs and comparing them to planned operations management.
Controlling costs, quality, and schedules are the important functions here.
 BEHAVIOUR
 Operation managers are concerned with how their efforts to plan,
organize, and control affect human behavior. Their interest lies in
decision-making behavior.

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Objectives of Operations Management:

1. customer service : The first objective of operating systems is

the customer serivce to the satisfaction of customer wants.
Therefore, customer service is a key objective of operations
management. Thus, primary objective can be satisfied by
providing the ‘right thing at a right price at the right time’.
2. resource utilization :- Another major objective of operating
systems is to utilise resources for the satisfaction of customer
wants effectively, i.e., customer service must be provided with
the achievement of effective operations through efficient use of
resources...
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The Key of OM Concepts

 Efficiency - Doing something at the lowest possible

cost
 Effectiveness - Doing the right things to create the most
value for the organization
 Value - Quality divided by price

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 The “Factory Services” are basic things that
customers want from products when they purchase
them.
 Quality
 Flexibility
 Speed
 Price (or production cost

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Production
 Production is defined as “the step-by-step
conversion of one form of material into another
form through chemical or mechanical process
to create the product to the user.
 Production as ‘a process by which goods and
services are created’
 Some examples are: manufacturing custom-made
products like, boilers with a specific capacity,
constructing flats, some structural fabrication works for
selected customers, etc., and
 Manufacturing standardized products like, car, bus,
motor cycle, radio, television, etc.
By Muluneh N 04/10/2024 21
By Muluneh N 04/10/2024 22
PRODUCTION SYSTEM
 The production system of an organization is that part, which
produces products of an organization
Production systems can be classified as
1) Job Shop,
2) Batch,
3) Mass and
4) Continuous Production systems.

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JOB SHOP PRODUCTION

 Job shop production are characterized by

manufacturing of one or few quantity of products
designed and produced as per the specification of
customers within prefixed time and cost.
 The distinguishing feature of this is low volume
 and high variety of products.

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BATCH PRODUCTION

 Batch production is defined by American

Production and Inventory Control Society
(APICS) “as a form of manufacturing in which
the job passes through the functional
departments in lots or batches and each lot
may have a different routing.” It is
characterised by the manufacture
 of limited number of products produced at

regular intervals and stocked awaiting sales

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MASS PRODUCTION


Manufacture of discrete parts or assemblies using a

continuous process are called mass production.
This production system is justified by very large
volume of production. The machines are arranged
in a line or product layout. Product and process
standardisation exists and all outputs follow the
same path.

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CONTINUOUS PRODUCTION


Production facilities are arranged as per the sequence

of production operations from the first
operations to the finished product. The items are
made to flow through the sequence of operations
through material handling devices such as conveyors,
transfer devices, etc.

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By Muluneh N 04/10/2024 28
Productivity:-
 Productivity indicators show output quantity generated
per input used.
 Productivity is a measure of economic performance that
compares the amount of goods and services produced
(output) with the amount of inputs used to produce those
goods and services.
 Mathematically,

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By Muluneh N 04/10/2024 30
 Productivity Improvement
Productivity Improvement (PI) is the result of managing
and intervening in transformation or work processes.
PI will occur if:

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Measuring Productivity (Continued}

 Partial-Factor: Uses a single “I” factor;

e.g., output/labor-hour, sales/employee
 Multi-Factor: Uses more than one “I”
factor; e.g. output/direct costs (labor,
materials, and overhead).
 Total-Factor: Uses all “I” factors.
(Note: Total-Factor captures “trade-offs”
between input factors.)

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Application of Productivity Measures

1) Individual level
2) Group level
3) Department level
4) Corporate level
5) National level
6) Global level

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Global-Level Productivity Measures

 GDP per capital (labor productivity * fraction of

people who work) is widely regarded as the best
measure.
A common currency is used to measure the
GDP(Gross Domestic Product ).

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Factors Affecting Productivity Improvement
at Global Level.
 Education
 Technology
 Macroeconomic policies
 Social and culture environments
 Foreign aids
 Foreign investments
 Industry Industry policies & competition

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Why is National Productivity Important?

 Competing on Productivity

At the national level, growing productivity

leads to a higher standard of living
holds inflation in check
enhances international competitiveness.

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Other Measures Affecting Productivity
1) Efficiency:

Measures the resources expected to be consumed to the

resources actually consumed.
it focuses on the input side of the system. (To what degree
did the system utilize the “right” things.)
2) Effectiveness
 Measures what the system sets out to accomplish (objective)
 Effectiveness is an output measure. (Is the output “right” - right

quality, right quantity, on time, etc.)

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3. Quality
 Degree to which the outputs (products and services) from the
system conform to requirements or meet customer
expectations. The focus is on quality attributes
4. Quality of Work Life
 Measures the way that employees in a system respond to the
socio-technical aspects of that system.
5) Innovation
 Measures the applied creativity of the system.
 Relates to the design and development of improved products,
services, and processes.
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B/ Production Management
Production management is a process of planning, organizing,
directing and controlling the activities of the production
function.
The objective of the production management is ‘to produce goods services of
right quality and quantity at the right time and right manufacturing cost’.
1. RIGHT QUALITY
The quality of product is established based upon the customers needs. The
right quality is not necessarily best quality. It is determined by the cost of the
product and the technical characteristics as suited to the specific requirements.

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.
2 . RIGHT QUANTITY
The manufacturing organization should produce the
products in right number. If they are produced in excess
of demand the capital will block up in the form of
inventory and if the quantity is produced in short of
demand, leads to shortage of products

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 3. RIGHT TIME
Timeliness of delivery is one of the important
parameter to judge the effectiveness of
production department. So, the production
department has to make the optimal utilization
of input resources to achieve its objective.
 4. RIGHT MANUFACTURING COST

Manufacturing costs are established before the

product is actually manufactured. Hence, all
attempts should be made to produce the
products at pre-established cost, so as to
reduce the variation between actual and the
standard (pre-established) cost.

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C. The Six sigma :- What Is Sigma?

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• A term (Greek) used in statistics to represent standard
deviation from mean value, an indicator of the degree
of variation in a set of a process.
• Sigma measures how far a given process deviates from
perfection. Higher sigma capability, better performance

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What is Six Sigma ?
• A highly disciplined process that enables organizations
deliver nearly perfect in products and services.
• The figure of six arrived statistically from current average
maturity of most business enterprises
• A philosophy and a goal: as perfect as practically possible.
• A methodology and a symbol of quality.
 A statistical concept that measures a process in terms of
defects

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Six Sigma is not:

 A standard
 A certification
 Another metric like percentage

But It is Rather!
 It is a Quality Philosophy and the way of improving
performance
 Methodology to measure and improve company’s
performance, practices and systems
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The goal of Six Sigma is to increase profits by
eliminating variability, defects and waste that undermine
customer loyalty.
Six Sigma emerged as a natural evolution in
business to increase profit by eliminating
defects.
Six Sigma has been around for more than 20 years and
heavily influenced by TQM (total quality management)
and Zero Defect principles

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PHASES:- Phases of Six Sigma are: DMAIC

1) Define specific goals to achieve outcomes, consistent

with customers demand and business strategy
2) Measure reduction of defects
3) Analyze problems ,cause and effects must be considered
4) Improve process on bases of measurements and analysis
5) Control process to minimize defects

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Sigma level
Sigma Level ( Process Defects per Million

Capability) Opportunities

2 308,537

3 66,807

4 6,210

5 233
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Benefits of six sigma
 Generates sustained success
 Sets performance goal for everyone
 Enhances value for customers
 Accelerates rate of improvement
 Promotes learning across boundaries
 Executes strategic change

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C/Lean and Six Sigma
 LEAN = Improvement principles focused on
dramatically improving process speed and eliminating
the eight deadly wastes.

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.
• SIX SIGMA = Breakthrough Process, Design,
or Improvement Teams focused on eliminating
chronic problems and reducing variation in
processes

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Lean Project Attributes/Aspects

Simply stated: “Lean is about moving the Mean.” It

focuses on efficiency.
 Lean reduces average cycle time.
 Lean reduces excess inventory.
 Lean improves average response time

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Six Sigma Attributes

Simply stated: “Six Sigma is about Reducing Variation.”

It focuses on Effectiveness. The mean will most likely
also be improved.
 Decrease defect rate
 Increase Process Yield

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Which Technique to Begin With?
 It is often advantageous to begin with Lean projects.
– These are easier to understand and implement.
 Begin with streamlining/reorganize processes and Rapid
Improvement Events.
 This gets the operation in good order.
 Chronic problems are now easier to deal with.
 “Low Hanging Fruit” is eaten.
 Lean attacks obvious waste.
 Next, select Six Sigma projects

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 C/Just In Time(JIT): Concept
 Is production attempts to smooth the flow of materials from the
suppliers to the customers, thereby, enhancing the speed of the
manufacturing process.
 is an inventory strategy companies employ to increase efficiency
and decrease waste by receiving goods on time,
 Cost-effective production and delivery of only the necessary
quantity of parts of the right quality, at the right time and place,
 To have only the right materials, parts and products in the right
place at the right time. By Muluneh N 04/10/2024 55
JIT as a Philosophy
1) Waste of overproduction: Overproduction is the
production of goods more than what are immediately needed.
2) : A material waiting in queue is a waste. An operator
waiting for material or instruction and having no productive
work to do is a waste.
3) Waste of movement: Poor plant layout results in materials
having to be moved extra distances and cause unnecessary
material handling costs.

By Muluneh N 04/10/2024 56
.
4/ Waste of inventories: Inventory causes costs of interest, space, record
keeping, and obsolescence. Inventory is not an asset; it is a waste!
5/ Waste of motion: Improper methods of performing tasks by the operators
cause wasted motions.
6/ Waste of making defects: The cost of scraps is a waste. Defects interrupt
the smooth flow of materials in the production line..

7/ Waste of process itself: Bad process design is a waste. E,g.

wrong type or size of machines, wrong tools, and wrong fixtures
are wastes.

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JIT Action Areas…
1. Develop people - increase skills, productivity, morale
2. Eliminate waste in all areas
3. Optimize materials handling and production flow
4. Control Tooling
5. Increase quality
6. Improve continuously!

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 E/ Supply Chain Management

A supply chain is a sequence of organizations - their facilities,

functions and activities - that are involved in producing and
delivering a product or service.
A supply chain is dynamic and involves the constant
flow of information, product, and funds between
different stages.

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Con.
Supply chain management deals with linking the
organizations within the supply chain in order to meet
demand across the chain as efficiently as possible..
The supply chain includes not only the manufacturer
and suppliers, but also transporters, warehouses,
retailers, and even customers themselves

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.
 Why is supply chain management so
important?
 To gain efficiencies from procurement,
distribution and logistics
 To make outsourcing more efficient
 To reduce transportation costs of inventories

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A typical supply chain may involve a variety of
stages, including the following.

1)Customers
2) Retailers
3)Wholesalers/distributors
4) Manufacturers
5)Component/raw material suppliers

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THE OBJECTIVE OF A SUPPLYCHAIN

 to maximize the overall value generated called Supply

Chain Surplus .
Supply Chain Surplus is difference between what the
value of the final product is to the customer and the costs
the supply chain incurs in filling the customer’s request.
Supply Chain Surplus = Customer Value – Supply
Chain Cost

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Cycle View of Supply Chain Processes

 Given the five stages of a supply chain all supply chain

processes can be broken down into the following four
process cycles, Each cycle occurs at the interface between
two successive stages of the supply chain
A) Customer order cycle
B) Replenishment cycle
C) Manufacturing cycle
D) Procurement cycle

By Muluneh N 04/10/2024 64
.

By Muluneh N 04/10/2024 65
 E/A value chain management framework

Is established with
 a strategy process on the strategic level,
 a planning process on the tactical level and

operations processes on the operational level.

Value chain as a term was created by Porter (1985)
A value chain “disaggregates a firm into its strategically
relevant activities in order to understand the behavior of
costs and the existing and potential sources
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Porter’s value chain consists of a “set of activities that are
performed to design, produce and market, deliver and support
its product”.
Porter distinguishes between
 Primary activities: inbound logistics, operations, outbound
logistics, marketing and sales, service in the core value
chain creating directly value
 Support activities: procurement, technology development,
human resource management, firm infrastructure supporting
the value creation in the core value chain
By Muluneh N 04/10/2024 67
 F/Total Quality Management
 TQM is a management approach used to
achieve quality improvement and long-term
success through customer satisfaction.
 TQM involves all members of the
organization, and is meant to improve the
quality of all processes, products, services,
operations, and corporate and culture.

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Con.
TQM -The way of managing organization to achieve
excellence
 Total – everything
 Quality – degree of excellence
 Management – art, act or way of organizing,
controlling, planning, directing to achieve certain
goals

By Muluneh N 04/10/2024 69
con
TQM activities follow a plan-do-check-action (PDCA) cycle to
improve the quality.
 `Plan’ step:- the problem is defined, the symptoms are explained,
 ‘Do’ step :- the cause of the symptoms is identified.
 ‘Check’ step : - the effectiveness of the proposed approach is
observed by using the performance measures.
 ‘Action’ step - the results are studied to determine what was
learned and what can be predicted.

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TQM Six Basic Concepts

1. Leadership
2. Customer Satisfaction
3. Employee Involvement
4. Continuous Process Improvement
5. Supplier Partnership
 Performance Measures

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By Muluneh N 04/10/2024 72
Total productive maintenance (TPM)

 is a maintenance program, which involves a newly

defined concept for maintaining plants and
equipment.
 The goal of the TPM program is to markedly
increase production while, at the same time,
increasing employee morale and job satisfaction.

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Objectives can be achieved by TPM.

 Avoid wastage in a quickly changing economic

environment.
 Producing goods without reducing product quality.
 Reduce cost.
 Produce a low batch quantity at the earliest possible time.
 Goods send to the customers must be non-defective.

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The differences between TQM and TPM are summarized below

Category TQM TPM

Quality (Output and Equipment (Input and

Object effects) cause)

Mains of Systematize the Employees

attaining management. participation and it is

goal It is software hardware oriented

Target oriented Elimination of losses

Quality for PPM and wastes.

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G/ The Balanced Scorecard

The Balanced Scorecard is a management tool that provides

stakeholders with a comprehensive measure of how the organization
is progressing towards the achievement of its strategic goals.
• Balances financial and non-financial measures
• Balances short and long-term measures
Balances performance drivers (leading indicators) with outcome
measures
• Leads to strategic focus and organizational alignment.

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Con.
Balanced Scorecard :- The scorecard measures an
organization’s performance from four perspectives
 Financial
 Customer
 Internal business processes
 Learning and growth

By Muluneh N 04/10/2024 77
1.5 Lead times, through input times and
waiting times
 Lead time is the amount of time that passes from
the start of a process until its conclusion.
 Lead time is a metric that measures the period of

time from the start to the completion of a

production process.
 Or it refers to the amount of time between

starting a process and wrapping it up.

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Lead time types
Lead time is broken down into various types
1) Customer lead time: The waiting period between when a
customer places an order to when they receive it plus any
other customer activities like order customization.
2) Material lead time: Part of material handling, this lead
time is all about your raw materials.
3) Production lead time: focuses on when production begins
to shipping time — when the final product is ready to go.

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4. Cumulative lead time: is basically the total time it takes for a
product to go from "I want it" to "I got it."
It includes everything from ordering, manufacturing, getting it
shipped, and all of the steps in between.
5. Manufacturing lead time: This part of managing
manufacturing inventory combines material lead time,
production time, and the time it takes to move a product
through the production line.
6. Delivery lead time: The time it takes for a product or service
to be delivered from the time an order is placed to the time it is
received by the customer.
By Muluneh N 04/10/2024 80
Lead time calculation
Lead Time = Pre-Processing Time + Processing
Time + Post-Processing Time , For company where,
 The pre-processing time is the procurement stage
where raw materials are sourced and delivered to its
manufacturing headquarters or processing plant.
 The processing time is the manufacturing stage.
 The post-processing time is the stage of processing the
order and delivering the final good to the customer.
By Muluneh N 04/10/2024 81
Many Thanks for
your Attention !

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 Unit Two :-

2.Draft virtual flow process

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Value stream

• A Value Stream is the set of all actions (both value

added and non value added) required to bring a
specific product or service from raw material through
to the customer.
• Whenever there is a product (or service) for
a customer, there is a value stream. The
challenge lies in seeing it.”
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A Value Stream
 Focuses attention on what is important for the customer.
 Identifies all the necessary components to bring a product or
service from conception to commercialization.
 Identifies waste inherent in processes and works to remove it.
 Reduces defects in products and deficiencies in processes.
 Focuses on improving specs and cost

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Enterprise value streams

 Raw Materials to Customer – Manufacturing

 Concept to Launch – Engineering
 Order to Cash - Administrative Functions

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2.2 Levels of a Value Stream

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Con.
Current State Mapping
 Completed in a day
 Performed by a cross functional team of middle
managers responsible for implementing new ideas
 Resulting in a picture (and team observations) of
what we “see” when following the product

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con
Future State Mapping
 Completed in a day with the same team
 Focused on:
 Creating a flexible, reactive system that quickly
adapts to changing customer needs
 Eliminating waste
 Creating flow
 Producing on demand

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Lean Value Stream Management
 Lean Value Stream Management starts with defining
value in terms of products and process capabilities to
provide the customer with what they need at the right
time and at an appropriate price.

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The Eight Wastes are:
1) Overproduction:-making or doing more than is
required or earlier than needed.
2) Waiting:-for information, materials, people,
maintenance, etc.
3) Transport:-moving people or goods around or
between sites.
4) Poor process design:-too many/too few steps, non-
standardization, inspection rather than prevention, etc.
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Con.
5.Inventory:-raw materials, work-in-progress, finished
goods, papers, electronic files, etc.
6. Motion:-inefficient layouts or poor ergonomics at
work-stations or in offices.
7.Defects:-errors, scrap, rework, non-conformance.
8.Underutilized personnel resources and creativity:-
ideas that are not listened to, skills that are not utilized.

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 Unit Three

3. Prepare Proposals For Process Redesign

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.

 .
Q. Prepare a proposals for process redesign in welding assembly of a
handicap wheelchair
1. Identifying Options for the delivery of changes .

2. Planning changes to be implemented, Change implementation

including resource, industrial relations, workforce development and

occupational health and safety considerations and implications
3. Determining the proposed changes and benefit cost ratios
4. Recommendations for change
5. Consulting relevant stakeholders.


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 Unit Four :
4. Implement the plan

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Planning and Implementing

 Don’t Wait!
 You need a plan!
Tie it to your business objectives
Make a VS walking the flow

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.

Many Thanks for

your Attention !

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