MANUFACTURING SYSTEMS

IM1029

Instructor:
LE PHUOC LUONG (PhD)

Lecturer’s Info
EDUCATION BACKGROUND
LÊ PHƯỚC LUÔNG (Ph.D.)  2007 Bachelor of Arts – Industrial
Management (HCMUT)
Email: lpluong@[Link]  2012 Master of Business Administration
Production & Operations Management Dept. - (Umea University, Sweden)
School of Industrial Management  2020 Doctor of Applied Engineering in
Supply chain (Quebec University,
Canada)
Consultant hour:
Monday: 9:00 – 12:00 AM
Room 106B10
INDUSTRIAL EXPERIENCES
 2007 Sales supervisor at Kimberly –
Clark
Research Interests: Supply chain  2014 Process improver at Thien Tu call
management, Lean production, center
Operations management.  2020 Purchasing & inventory manager at
Innocar Canada
 2025 Trainer at SMC, Toyomi, Toàn
Phát, Saigon Hoa

Course Objective
This course enables learners to understand the contemporary production system of
industrial production in Vietnam as well as advanced industrial nations. This course also
helps learners acknowledge the modern production system and approach to the
production reality.

Learning Outcomes
1. Acquire knowledge of the
functional areas of manufacturing
COURSE ASSESSMENT
systems  Group assignment: 30%
2. Identify and analyze the principles  Quiz - Attendance in class (AIC): 10%
of the manufacturing system,
monitoring system and managers’  **Exams (multiple-choice & written)
roles  Mid-exam: 50’ (chapters 1,2,3): 20%
3. Conduct quantitative skills in  Final Exam: 80’ (chapters 4,5,6,7,8):
decision making of the
manufacturing system
40%
** 1 cheat sheet (2-side handwritten A4 paper) is
4. Communicate and work in team allowed.
effectively

1
 Course Schedule

Week Lesson Activities

35, 36, 37 Course introduction & Chapter 1 Quiz in class
38 Chapter 2
39 Chapter 3
40 Chapter 4
41, 42 Chapter 5
43 Mid-term exam
44 Chapter 5 (continued) Quiz in class
45 Chapter 6
46 Chapter 7
47, 48 Chapter 8 Quiz in class
49, 50 Group presentation

Group assignment: 30%

 Each team (see the team list in the Excel file) prepares a report (MS
Word) and presentation (PowerPoint) for:
 Choose one of the chapters of the course (chapters 2-8)
 Choose a manufacturing firm and describe its manufacturing
systems in accordance with the theories of the chosen chapter.
 Analyze the strengths and weaknesses of the above systems.
 Present the similarities and differences between the systems in
practice and the theories mentioned in the chosen chapter.
 Recommend possible solutions to improve the systems.
Note: If your group chooses and visits a real manufacturing firm,
please show the photos (with the members in the photos) to get
a 0.5-point bonus for your group assignment.

 Remark: 10 minutes per team for presentation, all members have to be

present, at week 49 as scheduled. Submit your report and presentation
files on LMS at least 1 day before the date you present.

2
 RULES
1. NO MOBILE PHONES IN CLASS.
2. NO MORE THAN 15 MINUTES LATE
3. GET A BONUS FOR BEING ACTIVE IN CLASS
DISCUSSION (+0.5 POINT). THE BONUS IS APPLIED FOR
THE GROUP ASSIGNMENT AND MID-TERM EXAM.
4. YOU ARE NOT ALLOWED TO TAKE THE FINAL EXAM IF
YOUR SCORE ON IN-CLASS QUIZZES IS EQUAL TO 0.

Part 1 – Fundamental Concepts

Chapter 1

INTRODUCTION TO MANUFACTURING SYSTEM

8/59

Contents:

1.1 Manufacturing industries.

1.2 Types of production.

1.3 Function in manufacturing.

1.4 Organization and information processing

1.5 Automation strategies

1.6 Advanced manufacturing charactreistics

1.7 Production concepts and mathematical models

9/59

3
1.1 Manufacturing industries

Basis industries in general: Manufacturing or Service?

Advertising
Aerospace
Auto-motive (cars, trucks, buses)
Beverages
Building materials
Cement
Chemicals
Clothing
Drugs, soaps, cosmetics

10/59

1.1 Manufacturing industries

Basis industries in general: Manufacturing or Service?

Equipment/machinery
Financial (Banks, investment companies, loans)
Foods
Health care service
Hotels / restaurants
Insurance
Transportation (railroad, Airline, trucking,...)

11/59

1.1 Manufacturing industries

Manufacturing industry vs Process industry

Industries Representative companies

Aerospace Boeing,…
Car General Motors, Toyota, Mitsubishi…
Beverage Coca-Cola, Pepsi-cola, Tribeco,…
Building materials US. Gypsum, Southern steel,…
Cement Sao mai, Hà tiên,..
Chemicals EI. Du pont, Nippon,
Clothing Hanes-Corp., V. Thắng, Thắng lợi,…
Soaps, cosmetic,... Proctor&Gambles, Unilever, Kao,…

12/59

4
1.1 Manufacturing industries

Classification: Manufacturing industries:

Produce discrete items: cars, mobile, TV, clothes,...

13/59

1.1 Manufacturing industries

Classification: Manufacturing industries:

Produce discrete items: cars, mobile, TV, clothes,...

14/59

1.1 Manufacturing industries

Classification: Process industries:

Produce continuous items: liquid, pure water,
beverage, beer, milk

Petro processing Paint processing

15/59

5
1.1 Manufacturing industries

Classification: Process industries:

Produce continuous items: liquid, pure water,
beverages, beer, milk

16/59

1.1 Manufacturing industries

Three classifications in manufacturing industries:

a. Basic producer: transforms natural resources into raw

materials (for others industrial firms)

b. Converter: intermediate link in the chain (semi-

products or components).

c. Fabricator: final products assembly to market.

17/59

1.1 Manufacturing industries

Yarn Co.: basis producer

Input: silk-worm,...
Output: thread,...

Textile Co.: converter

Input: thread,...
Output: clothing,

Garment Co.: fabricator

Input: clothing, button,
thread,...
Output: shirts, clothes

18/59

6
1.1 Manufacturing industries

Tires M. Co.: converter

Input: rubber,...
Output: inner tubes & tires,...

Plastic Co.: converter

Input: raw materials,...
Output: plastic components,

Honda Co.: fabricator

Input: moto-bike
components,...
Output: Airblade, Wave,
Vision, Future,...

19/59

1.2 Types of production

1. Jobbing / Project Production: very small volume

2. Batch Production: small volume

3. Mass Production: large volume

20/59

1.2 Types of production

1. Jobbing / Project Production: very small volume

21/59

7
1.2 Types of production

1. Jobbing / Project Production: very small volume

22/59

1.2 Types of production

1. Jobbing / Project Production: very small volume

23/59

1.2 Types of production

1. Jobbing / Project Production: very small volume

24/59

8
1.2 Types of production

2. Batch Production: small volume

25/59

1.2 Types of production

2. Batch Production: small volume

26/59

1.2 Types of production

3. Mass Production: large volume

27/59

9
1.2 Types of production

3. Mass Production: large volume

28/59

1.2 Types of production

Mass production
Batch production
Jobbing
Volume/quantity
Production rate
Worker skills level
Multi-functional Equipment single-functional

Special tools

Process focus Plant Layout Product focus

29/59

1.3 Functions in manufacturing

1. Processing
Raw 2. Assembly Items
materials 3. Materials handling
4. Inspection and test

5. Process control

30/59

10
1.3 Functions in manufacturing

1. Processing

a. basic processes: raw material to initial form  make

initial sharp of product

b. secondary processes: initial form to final desired

geometry  final sharp

c. Operations to enhance physical properties:

improved all product functions  value added.

d. finishing operations: final process performed 

smooth, attractive to customers
31/59

1.3 Functions in manufacturing

2. Assembly operations: assembly/joining process 

make/combine all components to final products.

3. Material handling: moving & storing materials,

components for next processing and assembly
operations  materials/components available to
production planning.

32/59

1.3 Functions in manufacturing

4. Inspection and test: generally considered part of

quality control  to test/confirm for items’
qualification to customers

5. Control process: both regulations for individual jobs

& assembly operations, and the management of
plant-level activities

33/59

11
1.4 Organization & Information processing

1. Business functions:
Customer negotiation:

a/. Make to order contracts (specific orders);

b/. Meet customers’ demand from stock (make to

stock contracts);

c/. Forecasting demand contracts (based on forecast

information/data).

34/59

1.4 Organization & Information processing

2. Product/item design:

Including some documents as follows:

- Specific product design drawings,

- Product characteristics and materials requirement

35/59

1.4 Organization & Information processing

3. Production planning:
Production planning and implementation based on:
+ final design of item,
+ technology process/facilities requirements,
+ and production/implementation,…

4. Production control:
Inspection and test/monitoring (product, job,
process, machines,…).

36/59

12
1.5 Automation strategies (10)

1. Specialization of operations.

2. Combined operations.

3. Simultaneous operations.

4. Integration operations.

5. Increased flexibility.

37/59

1.5 Automation strategies (10)

6. Improved material handling and storage.

7. Online inspection.

8. Process control and optimization.

9. Plant operations control.

10. Computer integrated manufacturing - CIM.

38/59

1.6 Advanced manufactuirng characteristics (9)

1. Top managers pay more attention to their

production.

2. Quality problems consideration.

3. Human resources consideration.

4. Cost factors consideration.

5. Specialization consideration.

39/59

13
1.6 Advanced manufactuirng characteristics (9)

6. Old/disadvantage mass production tools are

troublesome to develop.

7. Mechanization consideration.

8. Application of Computer and software in

production and operations management.

9. Application of useful theories.

40/59

1.7 Production concepts & mathematical model

1. Manufacturing Lead Time - MLT

MLT includes all processing time at each machine/work station

m
TMLT   (Ts  QTp  Tn )i (1)
i 1

where: i: machine order in process

m: number of machines that products will be processed

Q: product volume/batch; Ts: set up time/machine

Tn: none-operating time; Tp: unit processing/service time

41/59

1.7 Production concepts & mathematical model

If total times spending at each Work station (WS) are equivalent, then

TMLT = n (Ts + QTp + Tn) (2)

+ For jobbing case (Q=1)

TMLT = n (Ts + Tp + Tn) (3)

+ For mass production (with one machine case)  Q is very high.

TMLT = QTp or TMLT = Tp (1 item) (4)

+ For flow line (including n machines)

TMLT = Q(Tt + max[Tp])i (5)

Or TMLT = (Tt + max[Tp])i (1 item) (5’)
42/59

14
1.7 Production concepts & mathematical model
Example: one order includes 50 items to produce over
8 work stations in a factory. The set-up time (average)
for each WS is 3 hours, the processing time (average)
is 6 munites / 1 item / 1 WS. The none-productive
time (average) is 7 hours / 1 WS.

Determine the completion time of this order (days),

given that working time is one shift (7 hours) per day.

Hint: manufacturing lead time is calculated as

formula (2)
TMLT = 8x(3 + 50x0.1 + 7) = 120 (hours)
Required days: 120 / 7 = 17.14 (days)
43/59

1.7 Production concepts & mathematical model

2. Production rate – Rp
Production rate of a production line/machine is
product quantity produced per hour (hourly rate)

+ For batch production, processing time at kth WS:

(Tb)k = (Ts + QTp)k (6)
If the processing time at each WS is equivalent, then
processing time is calculated as follow:
(Tb)m = (Ts + QTp)m (7)
44/59

1.7 Production concepts & mathematical model

2. Production rate – Rp
If defective rate is q then required volume is Q/(1–q)
(Tb)m = (Ts + QTp /[1-q])m (7’)

The average processing time per unit as follow:

(Tp) = (Tb)m /Q (8)

So production rate of certain WS as follow:

Rp = 1/(Tp) = Q/(Tb)m (9)

45/59

15
1.7 Production concepts & mathematical model

2. Production rate – Rp

For jobbing, Q = 1, manufacturing lead time: (Ts+Tp )

Rp = 1/(Ts + Tp)m (9’)

For mass production, processing time: (TMLT = Tp )

Rp = 1/(Tp) (9’’)

46/59

1.7 Production concepts & mathematical model

3. Capacity – Ca

Capacity – Ca is total quantity of items

produced in a consideration time 
week/month !

 Capacity and productivity are the same

dimensions (unit of product/certain period).

47/59

1.7 Production concepts & mathematical model

3. Capacity – Ca

Capacity vs Productivity

Weekly/monthly Hourly

Units Units

Total items in factory Total items in machine

48/59

16
1.7 Production concepts & mathematical model

3. Capacity – Ca

Denoted that:

+ W: number of WS (No. of machines) in factory;

+ Rp: productivity (in consideration time – hour)

+ H: time per shift (in hours)

+ S: No. of shifts (in consideration time – week/month)

Ca = W x SxH x Rp (10)

49/59

1.7 Production concepts & mathematical model

3. Capacity – Ca

Example: a factory has 6 machines (lathe) that can

produce a certain item, production manager said that
this factory runs 10 shifts each week, with realistics
operating time is 6,4 hours per shift, and equipment
productivity is 17 items per hour. Determine the
weekly capacity of this factory?

Ca = 6 x 10x6,4 x 17 = 6528 (items/week)

50/59

1.7 Production concepts & mathematical model

3. Capacity – Ca
If products required N machines ( production line
includes N machines) to finish N jobs (work
elements), then Ca can be calculated as follows:

Ca = (W x SxH x Rp)/N (11)

So the (W/N) is number of lines in factory

51/59

17
1.7 Production concepts & mathematical model

3. Capacity – Ca
If factory can produce some types of product, then
we denoted i as product’s kinds.
Ca can be calculated each type of product separately
as follows :

Cai = (W/N)i x SxH x Rpi (11’)

So the (W/N)i is number of lines produce item i.

52/59

1.7 Production concepts & mathematical model

3. Capacity – Ca
If we replace (weekly) capacity by (weekly) demand
then we have an other formula to control demand
satisfation as follow:

WxSxH = DxN/Rp (12)

 Three factors affect the factory capacity that

satisfies weekly demand.

53/59

1.7 Production concepts & mathematical model

3. Capacity – Ca

WxSxH = DxN/Rp (12)

With multi-product cases, right hand size (RHS) is

total demand.

With a certain product i, RHS is demand of i product

and formula can be rewritten as follow:

WixSxH = DixNi/Rpi (12’)

54/59

18
1.7 Production concepts & mathematical model

3. Capacity – Ca
Example: 3 types of items are produced at some
similar WS, the information (past data) is given in the
below table:
Item Weekly demand Productivity (item/hour)
1 600 10
2 1000 20
3 2200 40
Determine number of similar WS to meet all the
above demand, given that this factory runs 10 shifts
per week, and the operating time is 6,5 hours / shift,
No. of machine in each WS is N = 1.
55/59

1.7 Production concepts & mathematical model

3. Capacity – Ca
Hint:

item 1: D1/RP1 = 600/10 = 60 hours,

item 2: D2/RP2 = 1000/20 = 50 hours,

item 3: D3/RP3 = 2200/40 = 55 hours,

Total required time: (60+50+55) = 165 hours,

Total required time for each WS: 10x6.5 = 65 hours,

Min. No. of WS: 165/65 = 2.54 Work stations,

 The minimum No. of WS is 3 to meet all product demand.

56/59

1.7 Production concepts & mathematical model

4. Utilization – U

U is resource using ratio (equipment, lines,

machines,...

+ relative to using planning/production planning;

+ [operating time] / [available time]

+ [realistic volume] / [capacity]

57/59

19
1.7 Production concepts & mathematical model

4. Utilization – U

Example: a production line can run 65 hours/week,

and this line can make 20 units/hour.

This week this production line only produces 1000

units, and the rest time is idle time.

1. Determine the capacity of this line,

2. Determine the last week utilization (U) of this line.

58/59

1.7 Production concepts & mathematical model

4. Utilization – U

Hint:

Capacity of this line: Ca = 65x20 = 1300 units/week,

Utilization of this line: U = 1000/1300 = 76.92%

Real operating time of last week:

TR = 1000/20 = 50 hours

59/59

1.7 Production concepts & mathematical model

4. Utilization – U

+ related to machine operating time (running time of

machine), it is considered as a very useful factor to
control and measure the equipment (such as
reliability of equipment), this parameter indicates
the availability of machines/equipment.

60/59

20
1.7 Production concepts & mathematical model

4. Utilization – U

Denoted: MTBF the average time between 2

consecutive failure (Mean Time Between Failures)

MTTR the average repair time (Mean Time To

Repair)

So, the availability parameter is calculated by formula:

A = (MTBF – MTTR) / MTBF (%) (13)

61/59

1.7 Production concepts & mathematical model

5. Work-in-process – WIP
WIP = (Ca x U) x (TMLT) / (S x H) (11)
where:
Ca: factory capacity in consideration time,
U: utilization of factory equipment,
TMLT: processing time/manufacturing lead time,
S: number of shifts in consideration time,
H: number of hours for real operating in shift,

62/59

1.7 Production concepts & mathematical model

5. Work-in-process – WIP

WIP: number of work in process items/un-finished

items in production line (factory),

WIP = (Ca x U) x (TMLT) / (S x H) (11)

WIP is the ratio of processing time on available time

in factory.

The total none-operating time (95%) O. time (5%)

63/59

21
1.7 Production concepts & mathematical model

5. Work-in-process – WIP
 Number of machine in real operating in factory:
Nm = WxU x QTp /[Ts + QTp] (12)
where:
W: number of machines in factory,
U: utilization
Q: averagre lot size
Ts : the set up time of machine,
Tp: the processing time of machine,

64/59

1.7 Production concepts & mathematical model

5. Work-in-process – WIP

WIP ratio in processing is the ratio of WIP and real

operating machines in factory, can be calcultaed as
follow:

WIPR = WIP / Nm (13)

Ideal WIPR is 1:1  each machine makes one WIP at

a period.

65/59

1.7 Production concepts & mathematical model

5. Work-in-process – WIP

WIP in time ratio is called TIP ratio, can be calculated

as follow:

TIPR = TMLT / (N x Tp) (14)

Ideal ratio is 1:1  difficult.

66/59

22