# Manufacturing Processes

## Presentation on theme: "Manufacturing Processes"— Presentation transcript:

Manufacturing Processes
Chapter 7 Manufacturing Processes

Basic work flow structures
7-2 Basic work flow structures Project layout – fixed position; construction, movie lots Workcenter (job shop) – similar equipment grouped together; machine shop Manufacturing cell – similar set of processes for a limited range of products; Assembly Line – discrete parts move through workstations; toys, appliances, cars Continuous process – flow vs discrete, flows a set sequence of steps; oil, rubber, chemicals 11

Product-Process Matrix
7-3 Product-Process Matrix

7-4 Break-Even Analysis A standard approach to choosing among alternative processes or equipment Model seeks to determine the point in units produced (and sold) where we will start making profit on the process or equipment Model seeks to determine the point in units produced (and sold) where total revenue and total cost are equal 14

Break-Even Analysis (Continued)
7-5 Break-Even Analysis (Continued) Break-even Demand= Purchase cost of process or equipment Price per unit - Cost per unit or Total fixed costs of process or equipment Unit price to customer - Variable costs per unit This formula can be used to find any of its components algebraically if the other parameters are known 14

Break-Even Analysis (Continued)
7-6 Break-Even Analysis (Continued) Example: Suppose you want to purchase a new computer that will cost \$5,000. It will be used to process written orders from customers who will pay \$25 each for the service. The cost of labor, electricity and the form used to place the order is \$5 per customer. How many customers will we need to serve to permit the total revenue to break-even with our costs? Break-even Demand: = Total fixed costs of process or equip. Unit price to customer – Variable costs =5,000/(25-5) =250 customers 14

Manufacturing Process Flow Design
7-7 Manufacturing Process Flow Design A process flow design can be defined as a mapping of the specific processes that raw materials, parts, and subassemblies follow as they move through a plant The most common tools to conduct a process flow design include assembly drawings, assembly charts, and operation and route sheets 15

Example: Assembly Chart (Gozinto) – Plug Assembly
7-8 Example: Assembly Chart (Gozinto) – Plug Assembly From Exhibit 7.4 A-2 SA-2 4 5 6 7 Lockring Spacer, detent spring Rivets (2) Spring-detent A-5 Component/Assy Operation Inspection 16

Example: Process Flow Chart
7-9 Example: Process Flow Chart No, Continue… Material Received from Supplier Inspect Material for Defects Defects found? Yes Return to Supplier for Credit 4

7-10 Question Bowl What is the break-even in demand for a new process that costs \$25,000 to install, will generate a service product that customers are willing to pay \$500 per unit for, and whose labor and material costs for each unit is \$100? 400 units 250 units 100 units 62.5 units None of the above Answer: d units (25,000/( )=62.5) 7