1 chapter 6 operations technologies. 2 overviewoverview l introduction l types of manufacturing...

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Chapter 6Chapter 6Chapter 6Chapter 6

Operations TechnologiesOperations Technologies

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OverviewOverviewOverviewOverview

IntroductionIntroduction Types of Manufacturing AutomationTypes of Manufacturing Automation Automated Production SystemsAutomated Production Systems Software Systems for AutomationSoftware Systems for Automation Automation in ServicesAutomation in Services Automation IssuesAutomation Issues Deciding Among Automation AlternativesDeciding Among Automation Alternatives Wrap-Up: What World-Class Companies DoWrap-Up: What World-Class Companies Do

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IntroductionIntroductionIntroductionIntroduction

In the past, automation meant the replacement of In the past, automation meant the replacement of human effort with machine effort, to save labor costs.human effort with machine effort, to save labor costs.

Today, Today, automationautomation means integrating a full range of means integrating a full range of advanced information and engineering discoveries advanced information and engineering discoveries into operations processes for strategic purposes.into operations processes for strategic purposes.

Today, automation is applied not only for labor cost Today, automation is applied not only for labor cost savings, but also for:savings, but also for: Improved qualityImproved quality Faster production and delivery of products/servicesFaster production and delivery of products/services Increased flexibilityIncreased flexibility

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Types of Manufacturing AutomationTypes of Manufacturing AutomationTypes of Manufacturing AutomationTypes of Manufacturing Automation

Machine AttachmentsMachine Attachments Inexpensive add-ons to machinesInexpensive add-ons to machines Represent oldest technology in automationRepresent oldest technology in automation Typically perform one or a few simple operationsTypically perform one or a few simple operations Examples:Examples:

Strip feedersStrip feeders Quick centering and grasping devicesQuick centering and grasping devices

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Numerically Controlled (N/C) MachinesNumerically Controlled (N/C) Machines Have a control system that receives/reads Have a control system that receives/reads

instructions and translates them into machine instructions and translates them into machine operationsoperations

N/C machines have evolved:N/C machines have evolved: CN/C – computer numerically controlledCN/C – computer numerically controlled DN/C – direct numerically controlled (several DN/C – direct numerically controlled (several

machines controlled by a single computer)machines controlled by a single computer) Examples:Examples:

Weaving machinesWeaving machines LathesLathes

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RobotsRobots Human-like machines performing production tasksHuman-like machines performing production tasks Brain of these machines is a microcomputerBrain of these machines is a microcomputer Have grippers (vacuum, magnetized, adhesive)Have grippers (vacuum, magnetized, adhesive) Have sensors (tactile, proximity, vision/optical)Have sensors (tactile, proximity, vision/optical) Can operate in environments hostile to humans Can operate in environments hostile to humans

(heat, noise, dust, darkness, skin irritants, …)(heat, noise, dust, darkness, skin irritants, …) Perform precisely and repeatedly without fatiguePerform precisely and repeatedly without fatigue Weld, assemble,paint, inspect, transport, …..Weld, assemble,paint, inspect, transport, …..

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Automated Quality Control InspectionAutomated Quality Control Inspection Take physical dimensions of partsTake physical dimensions of parts Compare measurements to standardsCompare measurements to standards Determine if parts conform to specificationsDetermine if parts conform to specifications Also check performance (ex. - electronic circuits)Also check performance (ex. - electronic circuits) Making 100% inspection economically feasibleMaking 100% inspection economically feasible

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Automatic Identification Systems (AIS)Automatic Identification Systems (AIS) Sense and input data into computersSense and input data into computers Use bar codes, radio frequencies, magnetic stripes, Use bar codes, radio frequencies, magnetic stripes,

optical character recognition, machine visionoptical character recognition, machine vision Data read from products, documents, parts, and Data read from products, documents, parts, and

containerscontainers Used in warehouses, factory floors, retailing, Used in warehouses, factory floors, retailing,

wholesalingwholesaling Example – scanner at grocery store checkoutExample – scanner at grocery store checkout

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Automated Process ControlsAutomated Process Controls Use sensors to obtain measures of performanceUse sensors to obtain measures of performance Compare measures to standardsCompare measures to standards Might use “expert system” to determine if/what Might use “expert system” to determine if/what

process adjustment is necessaryprocess adjustment is necessary If necessary, change settings of processIf necessary, change settings of process Long used in chemical processing, petroleum Long used in chemical processing, petroleum

refining, paper productionrefining, paper production

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Automated Production SystemsAutomated Production SystemsAutomated Production SystemsAutomated Production Systems

Automation technology becoming more sophisticatedAutomation technology becoming more sophisticated Focus has shifted away from individual machinesFocus has shifted away from individual machines More common are whole systems of automated More common are whole systems of automated

machines linked together for broader purposesmachines linked together for broader purposes

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Automated Flow LinesAutomated Flow Lines In-line, automated processing machines linked by In-line, automated processing machines linked by

automated material transferautomated material transfer Perform without need for human attendancePerform without need for human attendance Used to produce an entire componentUsed to produce an entire component Also called Also called fixed automationfixed automation or or hard automationhard automation Used when product demand is high and stableUsed when product demand is high and stable

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Automated Assembly SystemsAutomated Assembly Systems Automated assembly machines linked by Automated assembly machines linked by

automated material transferautomated material transfer Operations are component insertion and joiningOperations are component insertion and joining Produce major assemblies or complete productsProduce major assemblies or complete products Often use standard (lower cost) robotsOften use standard (lower cost) robots Product design appropriate for assembly by Product design appropriate for assembly by

humans is not fitting for automated assemblyhumans is not fitting for automated assembly

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Redesigning Products for Automated AssemblyRedesigning Products for Automated AssemblyRedesigning Products for Automated AssemblyRedesigning Products for Automated Assembly

Reduce the amount of assembly requiredReduce the amount of assembly required Reduce the number of fasteners requiredReduce the number of fasteners required Design components to be automatically delivered and Design components to be automatically delivered and

positionedpositioned Design products for layered assembly and vertical Design products for layered assembly and vertical

insertion of partsinsertion of parts Design parts so that they are self-aligningDesign parts so that they are self-aligning Design products into major modules for productionDesign products into major modules for production Increase component quality to avoid machine jamsIncrease component quality to avoid machine jams

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Flexible Manufacturing Systems (FMS)Flexible Manufacturing Systems (FMS) Kits of materials/parts for a product are loaded on Kits of materials/parts for a product are loaded on

the materials-handling systemthe materials-handling system Code is entered into computer identifying product Code is entered into computer identifying product

and its location in the sequenceand its location in the sequence Each production machine (without a worker):Each production machine (without a worker):

Receives settings/instructions from computerReceives settings/instructions from computer Automatically loads/unloads required toolsAutomatically loads/unloads required tools Carries out its processing instructionsCarries out its processing instructions

Product automatically transferred to next machineProduct automatically transferred to next machine

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Flexible Manufacturing System (FMS)Flexible Manufacturing System (FMS)Flexible Manufacturing System (FMS)Flexible Manufacturing System (FMS)

Machine 1Machine 1

ToolsTools

X X

Machine 2Machine 2

ToolsTools

X X

Machine 3Machine 3

ToolsTools

X X

ComputerComputer

WorkerWorker

X

X

X

X

X

X

X

UnloadUnloadLoadLoad

PalletPalletTransferTransferSystemSystem

PartsParts

Pallet withPallet withworkpieceworkpieceattachedattached

WorkpieceWorkpiecein queuein queue

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Automated Production SystemsAutomated Production Systems Automated Production SystemsAutomated Production Systems

Automated Storage & Retrieval Systems (ASRS)Automated Storage & Retrieval Systems (ASRS) Receive orders for materials from anywhere in Receive orders for materials from anywhere in

operationsoperations Collect the materials from locations in warehouseCollect the materials from locations in warehouse Deliver the materials to workstations in operationsDeliver the materials to workstations in operations Three major elements of ASRS are:Three major elements of ASRS are:

Computers and communication systemsComputers and communication systems Automated materials handling/delivery systemsAutomated materials handling/delivery systems Storage and retrieval systems in warehouseStorage and retrieval systems in warehouse

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Automated Storage & Retrieval Systems (ASRS)Automated Storage & Retrieval Systems (ASRS) Main benefits of ASRS are:Main benefits of ASRS are:

Increased storage capacityIncreased storage capacity Increased system throughputIncreased system throughput Reduced labor costsReduced labor costs Improved product qualityImproved product quality

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Software Systems for AutomationSoftware Systems for AutomationSoftware Systems for AutomationSoftware Systems for Automation

Three “complex” computer-based systemsThree “complex” computer-based systems Computer-Aided Design and Computer-Aided Computer-Aided Design and Computer-Aided

Manufacturing (CAD/CAM)Manufacturing (CAD/CAM) Computer-Integrated Manufacturing (CIM)Computer-Integrated Manufacturing (CIM) Enterprise Resource Planning (ERP)Enterprise Resource Planning (ERP)

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Computer-Aided Design and Computer-Aided Computer-Aided Design and Computer-Aided Manufacturing (CAD/CAM)Manufacturing (CAD/CAM) CAD/CAM is a merger of two systems, CAD and CAD/CAM is a merger of two systems, CAD and

CAM (described next)CAM (described next) It is the automation of the transition from product It is the automation of the transition from product

design to manufacturingdesign to manufacturing

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Computer-Aided Design (CAD)Computer-Aided Design (CAD) Concerned with the automation of certain phases Concerned with the automation of certain phases

of product designof product design Use of computer in interactive engineering Use of computer in interactive engineering

drawing and storage of designsdrawing and storage of designs CAD systems are installed to:CAD systems are installed to:

Increase designers’ productivityIncrease designers’ productivity Improve the quality of designsImprove the quality of designs Improve product standardizationImprove product standardization Improve design documentationImprove design documentation Create a manufacturing databaseCreate a manufacturing database

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Computer-Aided Manufacturing (CAM)Computer-Aided Manufacturing (CAM) CAM capability progressing slower than CADCAM capability progressing slower than CAD Concerned with automating the planning and Concerned with automating the planning and

control of production:control of production: Plan productionPlan production Prepare product routingsPrepare product routings Generate N/C programsGenerate N/C programs Fix the settings of machineryFix the settings of machinery Prepare production schedulesPrepare production schedules Control the operationControl the operation

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Computer-Integrated Manufacturing (CIM)Computer-Integrated Manufacturing (CIM) ““All of the firm’s operations related to production All of the firm’s operations related to production

are incorporated in an integrated computer system are incorporated in an integrated computer system to assist, augment, or automate the operations.”to assist, augment, or automate the operations.”

Covers the chain of events from sales order to Covers the chain of events from sales order to product shipmentproduct shipment

Output of one activity becomes the input to the Output of one activity becomes the input to the next activitynext activity

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Computer Integrated Manufacturing (CIM)Computer Integrated Manufacturing (CIM)Computer Integrated Manufacturing (CIM)Computer Integrated Manufacturing (CIM)

Incorporates all manufacturing-related functionsIncorporates all manufacturing-related functions

ProcessProcessControlsControls

MRP IIMRP II

ASRSASRS

CAD/CAMCAD/CAM

AutomatedAutomatedAssemblyAssembly

GTGTSystemsSystems

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Enterprise Resource Planning (ERP)Enterprise Resource Planning (ERP) A complex set of software programsA complex set of software programs Integrates most of the business functions in an Integrates most of the business functions in an

organizationorganization AccountingAccounting Human resourcesHuman resources PurchasingPurchasing ProductionProduction LogisticsLogistics E-BusinessE-Business … … and moreand more

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Enterprise Resource Planning (ERP)Enterprise Resource Planning (ERP) Five leading ERP software companies are:Five leading ERP software companies are:

SAP ( their “R/3” software is top seller)SAP ( their “R/3” software is top seller) OracleOracle J.D. EdwardsJ.D. Edwards PeopleSoftPeopleSoft BaanBaan

Can take several years and $millions to implement Can take several years and $millions to implement (Chevron spent $160 million over five years)(Chevron spent $160 million over five years)

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Automation in ServicesAutomation in ServicesAutomation in ServicesAutomation in Services

ExampleExample Airlines – air traffic control, passenger reservationAirlines – air traffic control, passenger reservation Banks – ATMs, computerized bank statementsBanks – ATMs, computerized bank statements Gas Stations – automated payment (pay-at-the-pump)Gas Stations – automated payment (pay-at-the-pump) Health Care – MRI system, AGVS for waste disposalHealth Care – MRI system, AGVS for waste disposal Grocery Store – self-service checkout stationsGrocery Store – self-service checkout stations Real Estate – web based house-for-sale tour videoReal Estate – web based house-for-sale tour video

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Automation in ServicesAutomation in ServicesAutomation in ServicesAutomation in Services

Trend developing toward more-standardized services Trend developing toward more-standardized services and less customer contact.and less customer contact.

Service standardization brings trade-offs:Service standardization brings trade-offs: - Service not custom-designed for each customer- Service not custom-designed for each customer + Price of service reduced, or at least contained+ Price of service reduced, or at least contained

Banking industry is becoming increasingly automatedBanking industry is becoming increasingly automated Service firm can have a manual/automated mix:Service firm can have a manual/automated mix:

Manual - “front room” operationsManual - “front room” operations Automated - “back room” operationsAutomated - “back room” operations

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Degree of Customer Contact in ServicesDegree of Customer Contact in Servicesand the Use of Automated Equipmentand the Use of Automated Equipment

Degree of Customer Contact in ServicesDegree of Customer Contact in Servicesand the Use of Automated Equipmentand the Use of Automated Equipment

Degree of Degree of Customer ContactCustomer Contact

CapitalCapitalIntensityIntensity

HighHigh

HighHigh

LowLow

LowLow

Manual OperationsManual Operations

Mechanized OperationsMechanized Operations

AutomatedAutomatedOperationsOperations

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Automation IssuesAutomation IssuesAutomation IssuesAutomation Issues

Not all automation projects are successful.Not all automation projects are successful. Automation cannot make up for poor management.Automation cannot make up for poor management. Economic analysis cannot justify automation of some Economic analysis cannot justify automation of some

operations.operations. Not technically feasible to automate some operations.Not technically feasible to automate some operations. Automation projects may have to wait in small and Automation projects may have to wait in small and

start-up businesses.start-up businesses.

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Automation QuestionsAutomation QuestionsAutomation QuestionsAutomation Questions

What level of automation is appropriate?What level of automation is appropriate? How would automation affect the flexibility of an How would automation affect the flexibility of an

operation system?operation system? How can automation projects be justified?How can automation projects be justified? How should technological change be managed?How should technological change be managed? What are some of the consequences of implementing What are some of the consequences of implementing

an automation project?an automation project?

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Building Manufacturing FlexibilityBuilding Manufacturing FlexibilityBuilding Manufacturing FlexibilityBuilding Manufacturing Flexibility

Manufacturing flexibility has become the cornerstone Manufacturing flexibility has become the cornerstone of operations strategy in the 2000s.of operations strategy in the 2000s.

The ability to improve/maintain market share becauseThe ability to improve/maintain market share because Customer orders can be delivered soon after Customer orders can be delivered soon after

receipt of the orderreceipt of the order Production can quickly be shifted from product to Production can quickly be shifted from product to

productproduct Production capacity can be increased rapidlyProduction capacity can be increased rapidly New products can be developed and introduced New products can be developed and introduced

into production quickly and inexpensivelyinto production quickly and inexpensively

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Justifying Automation ProjectsJustifying Automation ProjectsJustifying Automation ProjectsJustifying Automation Projects

Payback period, NPV, IRR, and other conventional Payback period, NPV, IRR, and other conventional approaches alone are inadequate tools on which to approaches alone are inadequate tools on which to base product/process design/redesign decisionsbase product/process design/redesign decisions

Product/process technology must be seen as a long-Product/process technology must be seen as a long-term strategic choiceterm strategic choice

Returns on investment include:Returns on investment include: Improved product/service qualityImproved product/service quality Faster order deliveryFaster order delivery Increased flexibilityIncreased flexibility Reduced production costReduced production cost Increased market shareIncreased market share

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Managing Technological ChangeManaging Technological ChangeManaging Technological ChangeManaging Technological Change

Have a master plan for automation.Have a master plan for automation. Recognize the risks in automating.Recognize the risks in automating. Establish a new production technology departmentEstablish a new production technology department Allow ample time for completion of automation.Allow ample time for completion of automation. Do not try to automate everything at once.Do not try to automate everything at once. People are the key to making automation successful.People are the key to making automation successful. Don’t move too slowly in adopting new technology.Don’t move too slowly in adopting new technology.

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Worker Displacement and Training/ RetrainingWorker Displacement and Training/ RetrainingWorker Displacement and Training/ RetrainingWorker Displacement and Training/ Retraining

One result of automation is the elimination of jobsOne result of automation is the elimination of jobs Some say that new jobs are created in engineering, Some say that new jobs are created in engineering,

manufacturing, programming, selling, and servicing manufacturing, programming, selling, and servicing the new-technology productsthe new-technology products

Many firms realize they cannot afford NOT to train Many firms realize they cannot afford NOT to train and retrain their current workersand retrain their current workers

Firms are providing more training than ever beforeFirms are providing more training than ever before Still, US firms spend little on training compared to, Still, US firms spend little on training compared to,

say, German firms (4% of payroll cost on training)say, German firms (4% of payroll cost on training)

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Deciding Among Automation AlternativesDeciding Among Automation AlternativesDeciding Among Automation AlternativesDeciding Among Automation Alternatives

Economic factorsEconomic factors Effect on market shareEffect on market share Effect on product/service qualityEffect on product/service quality Effect on manufacturing flexibilityEffect on manufacturing flexibility Effect on labor relationsEffect on labor relations Amount of time required for implementationAmount of time required for implementation Effect of implementation on ongoing productionEffect of implementation on ongoing production Amount of capital requiredAmount of capital required

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Economic AnalysisEconomic Analysis Economic analysis will always be an important, if Economic analysis will always be an important, if

not a predominant, factor in deciding among not a predominant, factor in deciding among alternativesalternatives

Frequently used approaches are:Frequently used approaches are: Break-even analysisBreak-even analysis Financial analysisFinancial analysis

By using only economic analysis, other important By using only economic analysis, other important factors are ignoredfactors are ignored

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Rating Scale ApproachRating Scale Approach

Automation alternatives are rated using, say, a 5-Automation alternatives are rated using, say, a 5-point scale on a variety of factors such as:point scale on a variety of factors such as:

Economic measuresEconomic measures Effect on market shareEffect on market share Effect on product qualityEffect on product quality Effect on manufacturing flexibilityEffect on manufacturing flexibility Effect on labor relationsEffect on labor relations Amount of time required for implementationAmount of time required for implementation Effect on ongoing productionEffect on ongoing production

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Wrap-Up: World-Class PracticeWrap-Up: World-Class PracticeWrap-Up: World-Class PracticeWrap-Up: World-Class Practice

World-Class companies utilize the latest World-Class companies utilize the latest technologies/practices. For example:technologies/practices. For example: Design products to be automation-friendlyDesign products to be automation-friendly Use CAD/CAM for designing productsUse CAD/CAM for designing products Convert fixed automation to flexible automationConvert fixed automation to flexible automation Move towards smaller batch sizesMove towards smaller batch sizes Plan for automationPlan for automation Build teams to develop automated systemsBuild teams to develop automated systems Justify automation based on multiple factorsJustify automation based on multiple factors

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End of Chapter 6End of Chapter 6

1 chapter 6 operations technologies. 2 overviewoverview l introduction l types of manufacturing...

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