Introduction:

 Manufacturing is part of a bigger scheme known

as operations. The term Operations takes in all
systems that involve getting work done. This
includes services as well as manufacture. The
process always involves a transformation of
some raw materials (or inputs) to a finished item
or service. The goal is to create and add value to
the inputs during the transformation.
Introduction:
 Introduction:
 Manufacturing systems themselves can be
thought of in either technical or economic terms.
 Looking at the process purely in technical terms
the main features are those shown below. The
manufacturing process is used to turn raw
material into finished items. The manufacturing
process contributes the technology to bring this
about.
Introduction:
 Introduction:
 However, if we look at manufacturing in terms of
economics then a different picture is apparent. In
this case it is the value that is added to the inputs
(in terms of money) that is important.
Introduction:
 Manufacturing System Needs:
 Manufacturing industries can be grouped into:
 • Primary Industries exploit natural resources e.g. agriculture
or mining
 • Secondary Industries take the output of primary industries
and convert them into consumer goods. Manufacturing is
mostly concerned with this category but construction can also
be included here.
 • Tertiary Industries contribute to the service sector of the
economy. e.g. Banks, insurance, ….
Business Strategy:
 Companies exist to make a profit. Usually
there is more than one company offering a
particular item or service. Therefore
companies compete with one another for a
particular market. In order to be able to
compete, a company needs to have a
Strategy. This keeps the organisation
moving in the right direction and provides a
focus for decision making.
Business Strategy:
 A Strategy consists of four basic steps:
 1. Define a primary task
 2. Assess Core Competencies
 3. Determine order qualifiers and order
winners
 4. Positioning the Firm
Business Strategy:
 Define a primary task:
 The primary task represents the purpose of
the firm i.e. what it is in the business of
doing. It also defines the area in which it will
be competing. This is stated in broad terms.
e.g. Hadapay transportation company
would be in the business of Transportation,
not Railways.
Business Strategy:
 Assess Core Competencies:
 This is what a company does best, better
than any of its competitors. This might be
the ability to provide exceptional service, or
to be first to the market with a new design.
For this reason, a core competence is
rarely a single product or technology as
these are easily copied and replicated – it is
usually based on knowledge or processes.
 Business Strategy:
 Determine order qualifiers and order winners:
 An order qualifier is a characteristic of a product that will
make a consumer consider buying it. An order winner is
the characteristic of a product that will make the consumer
purchase it.
 When buying a car, a person might have a fixed amount of
money available – say LS750,000. Therefore the price
range would be the order qualifier for this person. They
can’t buy a car above this price no matter how good it may
be.
 Within this price range there are a number of models
available. The one with the most features might be the one
chosen –this would be the order-winning characteristic.
 Business Strategy:
 Positioning the Firm:
 A firm should choose one or two important things to
concentrate on and do them extremely well. This
defines how well it will compete in the marketplace
and what unique value it will deliver to the consumer.
The relative strengths of its competitors must be
taken into account when doing this. For example,
Apple computer do not compete with companies
such as Dell for its market – instead they concentrate
on a niche market for innovative products such as the
iPhone, IPod where they are often first to the market.
 Manufacturing Strategy:
 Deciding on the strategy used to produce a
product is a complex one and it involves strategic
decisions by the management.
 There are different ways of offering a product or
service from a company:
 Make to order.
 Make to stock.
 Assemble to order,
 Engineered to order.
 Types of production processes:
 Project or Job.
 Batch production.
 Production lines.
 Continuous production.
Types of production processes:
 Manufacturing Enterprises:
 Manufacturing enterprises can range from very small
companies having just a few people to very large
multinational companies who employ thousands.
 Apart from the very small companies, a modern
manufacturing enterprise usually has a structure like
that shown in the next slide. It can be seen that
manufacturing is just one part of a complex process
that represents the company as a whole.
Manufacturing Enterprises:
Factors of Manufacturing competitiveness:
 Competing on Cost
 Competing on Quality
 Competing on Flexibility
 Competing on Speed
Hence a Manufacturing System can be:
Production systems:
Production system is the collection of people, Equipment, and
procedures organized to accomplish the manufacturing operations
of a company.
Types of plant layout:
Fixed layout (position layout).
Process layout.
Cellular layout.
Product layout.
Production quantity vs product variety:
Production quantity: refers to the number of
units of a given part or product produced
annually by the plant. Production quantity can
be classified into three ranges
1-Low Production (Job Shop)Quantities in the
range of 1 to 100 units per year
2-Medium Production (Batch Production)
Quantities in the range of 100 to 10000 units per
year
3-High Production (Mass Production) Quantities
are 10000 to millions of units per year
Product Variety: refers to the different product
designs or types that are produced in a plant.
(Different products have different shapes and
sizes and styles)
Production quantity vs product variety:
Types of facilities and layouts used for different
levels of production quantities and product variety:
Manufacturing support systems:
(Most of manufacturing support systems do not
directly contact the product, but they plan and
control its progress through the factory.)

Manufacturing support systems (people

and procedures):
Business functions(sales & marketing,
forecasting, order entry, costing & accounting,
customer services.
Design the processes and equipment.
Manufacturing planning.
Plan and control the production orders.
Satisfy product quality requirements.
Manufacturing support systems:
Manufacturing systems:
A manufacturing system is a collection of
integrated equipment and human
resources, whose function is to perform
one or more processing and/or assembly
operations on a starting raw material,
part, or set of parts.
The integrated equipment includes
production machines and tools, material
handling and work positioning devices,
and computer systems.
Manufacturing systems:
Manufacturing systems components:
Production machines plus tools, fixtures
and other related hardware.
Material handling system.
Computer systems to coordinate and/or
control the above components.
Human workers.
Manufacturing systems classification:
By one of the following:
[Link] of operations performed.
[Link] of workstations and system
layout.
[Link] of automation.
[Link] or product variety
Manufacturing systems classification:
Feedback system:
Example: Components of a computer-controlled
system.
Feedback system diagrams(First Jay Forrester tries):
Feedback system diagrams(First Jay Forrester tries):
Feedback system (Casual Loop diagram):
Feedback system (Stock-Flow diagram):
Feedback system (Bull’s Eye diagram):
Feedback system (Sector diagram):