Handbook of Production Management Methods Episode 3 pot

50 Handbook of Production Management Methods Step 3 . Assign weights to classes (user defined) M = 4; P = 3; S = 5; T = 5; X = 1 Step 4 . Filter Table 4.1 to obtain only columns of required objectives. This step results in Table 4.3.1. Step 5 . Remove from the filtered table all methods that have one or more column blank (i.e. the method does not meet that objective). See table 4.3.2. Step 6 . Convert the methods grades from alphabetical to numerical using conversion factors as follows: a = 6; b = 4; c = 3; d = 1 Table 4.3.1 ( Continued ) Method number Class Objective 236713 83 M c b 84 S c d c c 85 M b 86 P c d c 87 P d d 88 P c d c 89 M 90 S b c 91 X b c 92 S c d 93 M c d 94 M cbbb c 95 S c b 96 M Table 4.3.2 Method number Class Objective 2367 13 9Mcbbbc 14 X b c b b c 20 S c d d b b 37 X c c b b b 38 X d c c b c 39 S b b b b b 43 M c b b b c 50 P b c c c b 68 T b c b b c 94 M c b b b c 98 M d b b c c Method number Class Objective 236713 97 P d b d 98 M dbbc c 99 M d d 100 P c 101 M b b 102 S b d 103 M c b c b 104 S b d 105 P dbdb 106 T b c 107 P c c c 108 M d 109 M c b a a 110 P c c 0750650885-ch004.fm Page 50 Friday, September 7, 2001 4:57 PM Decision-making – method selection 51 The conversion is shown in Table 4.3.3. Step 7 . Multiply the weight (column) grades by the method grade (row) and replace the result in the grade location as shown in Table 4.3.4. Step 8 . For each method (row) sum the replaced grade values and list them in an additional column (method weight) for each row, as shown in Table 4.3.5. Step 9 . Multiply the values in the additional column by the class weights and place the results in the final column (Total value) of Table 4.3.5. The highest total value is 760 and it recommended that method 39 (ERP) be used. 4.3.2 Example of selection of methods to meet several functions Step 1 . The company requires a manufacturing method to: Focus on line management (processing, shop floor, production planning, etc.) – 1.3 Focus on production planning – 2.3 Focus on processing – 2.4 Focus on meeting delivery dates – 3.5 Step 2 . Assign weights to the functions (user defined) Function 1.3 weight 1 Function 2.3 weight 1 Function 2.4 weight 1 Function 3.5 weight 1 Step 3 . Assign weights to the classes (user defined) M = 1; P = 1; S = 1; T = 1; X = 1 (See chapter 2 for definition of classes.) Step 4 . Filter from Table 4.2 the columns of required functions. Table 4.3.3 Method number Class 2367 13 9 M 3444 3 14 X 4344 3 20 S 3114 4 37 X 3344 4 38 X 1334 3 39 S 4444 4 43 M 3444 3 50 P 4333 4 68 T 4344 3 94 M 3444 3 98 M 1443 3 0750650885-ch004.fm Page 51 Friday, September 7, 2001 4:57 PM 52 Handbook of Production Management Methods Step 5 . Remove from the filtered table all methods that have one of the columns blank (i.e. the method does not support that function). Step 6 . Convert the method grades from alphabetical to numerical using conversion factors as follows: a = 6; b = 4; c = 3; d = 1 Table 4.3.4 Table 4.3.5 Method number Class Objective Objective 236713236713 Weight Weight 108866 108866 9 M 3 4443 3032322418 14 X 4 3 4 4 3 40 24 32 24 18 20 S 3 1144 308 8 2424 37 X 3 3 4 4 4 30 24 32 24 24 38 X 1 3 3 4 3 10 24 24 24 18 39 S 4 4 4 4 4 40 32 32 24 24 43 M 3 4 4 4 3 30 32 32 24 18 50 P 4 3 3 3 4 40 24 24 18 24 68 T 4 3 4 4 3 40 24 32 24 18 94 M 3 4 4 4 3 30 32 32 24 18 98 M 1 4 4 3 3 10 32 32 18 18 Method number Class Objective 2 3 6 7 13 Method weight Class weight Total value Weight 10 8 8 6 6 9 M 30 32 32 24 18 136 4 544 14 X 40 24 32 24 18 138 5 138 20 S 30 8 8 24 24 94 5 470 37 X 30 24 32 24 24 134 1 134 38 X 10 24 24 24 18 100 1 100 39 S 40 32 32 24 24 152 5 760 43 M 30 32 32 24 18 136 4 544 50 P 40 24 24 18 24 130 3 390 68 T 40 24 32 24 18 138 5 690 94 M 30 32 32 24 18 136 4 544 98 M 10 32 32 18 18 110 4 440 0750650885-ch004.fm Page 52 Friday, September 7, 2001 4:57 PM Decision-making – method selection 53 The results are shown in Table 4.3.6. Steps 7 to 9 will not change the total value sequence, as all weights are 1. Examining the table for the highest total value reveals that there are three methods (50, 72, 84) with total value 16 and one method (73) with total value 15. The difference is very small and method 73 should also be considered. Thus the user has to exercise judgement in making the decision. In a real situ- ation, one might also consider methods with total value 14. One has to remember that the mathematical maximum score cannot guarantee an ideal, optimum manufacturing method. The four recommended methods are: 1. Global manufacturing system – method 50 2. Material resource planning II – method 72 3. Matrix shop floor control – method 73 4. Production information and control system (PICS) – method 84 4.3.3 Example of selection of method to meet several functions and objectives The decision table method has thus far been demonstrated for cases of objective needs and function needs separately. However, the same method may be used for any combination of requirements. In this section the company needs are of a mixed nature as below: 1.3 Focus on line management (processing, shop floor, production plan- ning, etc.) 2.3 Focus on production planning 2.4 Focus on processing 3.5 Focus on meeting delivery dates 2 Reduce production costs Table 4.3.6 Method Class Function 1.3 2.3 2.4 3.5 1.3 2.3 2.4 3.5 Total 14 X bcbc434314 16 P bdbc414312 22 P bdbc414312 39 S cbbc344314 50 P bbbb444416 51 M bcbd434112 68 T bcbc434314 71 S b b c c 4 4 3 3 14 72 S bbbb444416 73 P bbcb4434 15 84 S bbbb444416 0750650885-ch004.fm Page 53 Friday, September 7, 2001 4:57 PM 54 Handbook of Production Management Methods 3 Rapid response to market demands – product design 6 Progress toward zero inventory – increase inventory turnround 7 Improve management knowledge and information – enterprise com- munication 13 Improve enterprise integration – improving supply chain globally The solution may be carried out manually or using a spreadsheet. The weight of the needs are: Function 1.3 weight 8 Function 2.3 weight 10 Function 2.4 weight 10 Function 3.5 weight 9 Objective 2 weight 8 Objective 3 weight 6 Objective 6 weight 7 Objective 7 weight 7 Objective 13 weight 8 Step 3 . Assign weights to classes (user defined) M = 5; P = 5; S = 4; T = 3; X = 1 Step 4 . In order to filter the required needs Table 4.3.7 is constructed to include objectives and functions (Table 4.1 and Table 4.2) as one table. Table 4.3.7 Method number Class Function Objective 1 2 3 4 12345678910111213141516 123456123456123456123456 1Sb b b c c d c 2M c c d dbc d 3 M bb c c cccccb bc cc 4 X c bbb cc b c c ccb c c 5Pbc cc c cb 6M b b b c bcbcc 7Sc bb bbc b ccb cb 8P bc c bcc ccccdc dd ccc 9 M b cbbcbbccc ccbb bbbb b b c 10 S bcb c abba bb c b b c b 11 M b c c c c b d c b c b c c 12 T d d b c b b c c 13 M d b c c c c c b d c c d b c c 14 X b c b c c c c b b c c d b b c 15 T c b c b d b c b 16 P b d b c b c c c b b c 17 P b c c b b c c b c 18 M b b b d d b d b c c 19 S c b c c b b c c 0750650885-ch004.fm Page 54 Friday, September 7, 2001 4:57 PM Decision-making – method selection 55 20 S b c c c b c c b c c d c d d b c b 21 S c c c b c d d b c d c c 22 P b d b d c c c c d b b d 23 P b d b c d c c c b c b c d d d 24 S cb bbd cbcc bc d dc c c 25 P c c c b c b c c d d c c c c b d 26 M b b d c b d d 27 P b b c c c c b c c c b c b c c 28 S b c b b b c c c c c c c b b c c b 29 P d c c b c b c c b d c b c c 30 P bcbbd c cd bc b c cb b c b b 31 S d b c c c c d b c d b c c b b c c b 32 S a b bbbbbb bbbbbba aa ab c 33 S c c c c c d d b c 34 S b c b d d c c c c c b c c b c 35 P b b c b b b b a a c b c a 36 S b c b c c b b b 37 X d b b b c c c c c b b b b b b b c 38 X b b c c c d d c c c b c c 39 S bcccc bb cdc cb cbbc bb b c b 40 P b c b b b c c b 41 P b c c b b d b c c 42 X c bbb cc b c c ccb c c 43 M b c b b c b b c c c c c b b b b b b b b c 44 P b c c c c b b d c b b d c c c c c 45 T b bc b a aa ab c 46 P bc c b cc c cccdc dd c c c 47 X cccc cc cc db cccccd c d c 48 P bc c b cc c cccdc dd c c c 49 X b b b b c c c 50 P dcb bbc dcb bbb bbcbdcc b c b d 51 M b d c c b c c c d b b b b b d c b c 52 P bc c b cc c cccdc dd c c c 53 P b c c c c b b d c b b d c c c c c 54 M c d b d c b d c b c c b 55 M b c b d b d b 56 M c b d d b d b c d b b c c b d c 57 P b cbcccccccccccccccccc cbc bbb c b 58 M bcbccc cbc c c cdbcb cc c d b 59 M bb bc b c ccc b c b 60 M b b b c c c c d c b c d 61 X c bbb cc b c c ccb c c 62 M bbbbcc bbbb bcbb c bc b ccbbbc cb b 63 P b c b b b c c b 64 P b c b b b c c b 65 P b c b b b c c c b 66 P b cccccc bB b cccbb b b b 67 P b c b c c c c c b c c c b c b c 68 T b c b c c c c b b c c d b b c 69 M b d b b c d b c b d c 70 M bcd d c cb bc bb bcbc b d c c d 71 S c b c b c c c d b c c b c c 72 S c b c b b c b c b c c b c c 73 P bbc bc b bb c cbcdb dd b c c 74 P b b c c b b c b d 75 X b b c c c b b c c 76 P c b d b c c b c d c d c b c c 77 M ddb bbc cb bb cbc c d 78 S c b c c c c 0750650885-ch004.fm Page 55 Friday, September 7, 2001 4:57 PM 56 Handbook of Production Management Methods Filtering the required objectives and function reduces table 4.3.7 to four rows (methods) as shown in Table 4.3.8. Table 4.3.7 ( Continued ) Method number Class Function Objective 1 2 3 4 12345678910111213141516 123456123456123456123456 79 M d c d b c c b b c d c c b c d b c 80 P c c b c c d d c c b b c 81 M b b a a b a b c b b 82 S c d c b c c c d c c d b c d b d c d 83 M db b c bd c c ccd b b d ccc 84 S c b c b b d b b c d d c c c 85 M c d b d c b d c b c c b 86 P b c c b c c c c c c d c d d c c c 87 P b d b c d b d c d 88 P b c c b c c c c c c d c d d c c c 89 M b b c b c c c b b 90 S c c c b c d d b c d c c 91 X b b c b c c c 92 S d b b d c c d b b 93 M c b b c c c d c b b c d 94 M b cbbcbbccc ccbb bbbb b b c 95 S d b b d c c b b b 96 M c b d b b b c 97Pdbbddcbdcb d 98 M d d b b c b c b c d b b b c b d c c 99 Mbbbcc bbdb d bdcb c b 100 P b b b c c b c 101 M c c b c b b c b b d 102 S b c b c c c b c c b d c 103 M b c c c c b c c c b c c b c c b b c 104 S b c b c c c b c c b d c 105 P c d c b c c c d c c d b c d b d c d 106 T b c b c c c b c c 107 P b b c d b c c b c c c d d b c c 108 M b b b c c c d b 109 M b d d b b b b b c c b a a 110 P bcddc cccc c bccc ccccc d b c d Table 4.3.8 Method number Class Function Objective 1 2 3 4 12345678910111213141516 123456123456123456123456 14 T b cbc c c c bbccdbb c 39 S bcccc bb cdc cb cbbc bb bc b 50 P dcb bbc dcb bbb bbcbdcc b c b d 68 T b cbc c c c bbccdbb c 0750650885-ch004.fm Page 56 Friday, September 7, 2001 4:57 PM Decision-making – method selection 57 Filtering out the unwanted columns results in Table 4.3.9. Step 6 . Convert the method grades from alphabetical to numerical using conversion factors as follows: a = 6; b = 4; c = 3; d = 1. Step 7 . Multiply the weight (column) grades by the method grades (row) and replace the result in the grade location. Table 4.3.10 shows the results of steps 6 and 7. Step 8 . Compute subtotals for each method. The class weights are M = 5; P = 5; S = 4; T = 3; X = 1. Step 9 . Multiply the subtotals by the class weights. The results are shown in Table 4.3.11. The highest total is for method 50 – global manufacturing system and this is the recommended method. This recommendation is in line with the desire to implement a philosophical and modern management method. For a practical method supported by software, method 39 – enterprise resource planning – ERP, is recommended. Table 4.3.9 Method number Class Function Objective 1.3 2.3 2.4 3.5 2 3 6 7 13 14 T b c b c b c b b c 39 S c b b c b b b b b 50 P b b b b b c c c b 68 T b c b c b c b b c Table 4.3.10 Method number Class Function Objective Function Objective 1.22.32.43.52367131.22.32.43.5236713 Weight 810109 86778 14 T 4 3 4 3 4 3 4 4 3 32 30 40 27 32 18 28 28 24 39 S 3 4 4 3 4 4 4 4 4 24 40 40 27 32 24 28 28 32 50 P 4 4 4 4 4 3 3 3 4 32 40 40 36 32 18 21 21 32 68 T 4 3 4 3 4 3 4 4 3 32 30 40 27 32 18 28 28 24 0750650885-ch004.fm Page 57 Friday, September 7, 2001 4:57 PM 58 Handbook of Production Management Methods 4.4 Summary This chapter presents a methodic technique for selecting the best manufactur- ing method to meet specified needs. The user must be aware that although the method incorporates mathemat- ical procedures, it should be treated with caution and human judgement should be applied to the conclusions. It is recommended that before making any commitment to install the recom- mended method, the user should read carefully the method description, some of the bibliography, and if possible consult with other plants that are using the recommended method. Table 4.3.11 Method number Class Function Objective 1.2 2.3 2.4 3.5 2 3 6 7 13 Methods subtotal Class weight Total Weight 81010986778 14 T 32 30 40 27 3218282824 259 3 777 39 S 24 40 40 27 3224282832 275 4 1100 50 P 32 40 40 36 3218212132 272 5 1360 68 T 32 30 40 27 3218282824 259 3 777 0750650885-ch004.fm Page 58 Friday, September 7, 2001 4:57 PM 5 110 manufacturing methods 5.1 Introduction to manufacturing methods This chapter is the main part of the book, in which 110 manufacturing methods are briefly described, and a large number of bibliographical references are given. The heading of each manufacturing method includes its number and full name, and the grading each method was assigned in Chapter 3 follows the name before the text. Bibliographical references follow the text for each manufacturing method. 5.2 Brief descriptions of the 110 manufacturing methods Activity-based costing – ABC S- 2c; 7c; 11d; 14c; * 1.2b; 3.2b; 4.3b Activity-based costing is an information system that maintains and processes data on a firm’s activities and products/ services. It identifies the activities performed, traces costs to these activities, and then uses various cost drivers to trace the cost of activities to the final products/services. Cost drivers are factors that create or influence cost and reflect the consumption of activities by the products/services. An ABC system can be used by management for a variety of purposes relating to both activities and products/services. In conventional cost accounting systems, direct costs such as the costs of specific services are billed directly to the product. However, indirect costs or overhead for the entire plant operation (including individual departments) are typically accumulated and divided by the total number of employees to deter- mine the additional hourly rate. In this system, overhead cost per hour is the same irrespective of the job type. However, not all overhead costs vary on a job basis. For instance, overhead costs relating to order processing do not vary with the amount of processing time that it takes to produce the order. Also, the cost per hour is not the same across all departments and job types. 0750650885-ch005.fm Page 59 Friday, September 7, 2001 5:00 PM [...]... Manufacturing, 9 (3) , pp 217–226 Borderless corporation M – 1c; 2c; 3b; 4b; 6b; 7b; 8b; 9b; 10b; 11b; 13c; * 2.4b; 3. 2c; 3. 3b; 3. 4b; 3. 5c; 3. 6b; 4.1b; 4.2c; 4.3c; 4.4c See Supply chain management 0750650885-ch005.fm Page 77 Friday, September 7, 2001 5:00 PM 110 manufacturing methods 77 Business intelligence and data warehousing S – 6b; 7b; 9c; 10b; 11b; 13c; 16b; * 1.1b; 1.2c; 1.3b; 3. 3c; 4.1a; 4.2b; 4.3b; 4.4a... Page 75 Friday, September 7, 2001 5:00 PM 110 manufacturing methods 75 14 Scheer, A.W., 1992: Architecture of Integrated Information Systems SpringerVerlag, Berlin 15 Watson, H.G., 19 93: Strategic Benchmarking, John Wiley and Sons, pp 3 39 Bionic manufacturing system P – 1c; 2c; 3d; 4c; 8d; 9d; 13c; 14c; 16c; * 1.3b; 1.4c; 2.4c; 3. 3b; 3. 5c; 3. 6c; 4.4c; 4.6c (See also Self-organizing manufacturing method;... P.B.B., 1990: What is the scope of activity-based costing? Journal of Cost Management, 3( 4), 40–42 Agent-driven approach M – 3d; 4b; 7c; 13d; * 2.3c; 3. 3c; 4.3d Agent-driven manufacturing systems are designed to solve shop floor control problems in manufacturing systems The objective of the agent-driven approach is to design a factory information system with the capabilities of computer integrated manufacturing... survey, The International Journal of Flexible Manufacturing Systems, 2, pp 289 32 8 15 Singh, M.P., 1998: Agent communication languages: Rethinking the principles, IEEE Computer, 31 (12), 40–47 16 SMART http:l/smart.npo.org/ Agile Manufacturing M – 2c; 3c; 4b; 7b; 8c; 13c; 14c; * 1.2b; 1.3b; 3. 3c; 3. 6c; 4.3c; 4.5c; 4.6c Agile manufacturing can be defined as the capability of reacting quickly to changing... Intelligent-Enterprise, 1(2), 38 –9, 41, 44, 46 14 Stein, T., 1998: ERP’s future linked to E-supply chain Information Week, 705, 1.20, 1.22 15 Teece, D.J., Pisano, G and Shuen, A., 1997: Dynamic capabilities and strategic management, Strategic Management Journal, 18, 509– 533 Business process re-engineering (BPR) M – 7b; 8c; 9b; 13c; 14c; * 1.2b; 2.5c; 3. 2c; 3. 3c; 4.1c; 4.2b; 4.3d; 4.6c The goal of business process... PM 66 Handbook of Production Management Methods Flexible production technologies and flexible management enable the workforce of agile manufacturing enterprises to implement the innovations they generate There can be no algorithm for the conduct of such an enterprise The only possible long-term agenda is providing physical and organizational resources to support the creativity and initiative of the... organizations provide access to increasing numbers of employees nearly all members of the organization will become consumers of business intelligence information 0750650885-ch005.fm Page 78 Friday, September 7, 2001 5:00 PM 78 Handbook of Production Management Methods Bibliography 1 Auditore, P.J., 2000: The future of BI, Enterprise Systems Journal, 15(2), 53 55 2 Blackburn, J.D., 1991: Time-Based Competition:... Proceedings of Workshop on SupplyChain Management in Agribusiness, Vitoria (ES) Brazil, pp 451–460 0750650885-ch005.fm Page 64 Friday, September 7, 2001 5:00 PM 64 Handbook of Production Management Methods 13 Rabelo, R.J and Camarinha-Matos, L.M., 1994: Negotiation in multi-agent based dynamic scheduling, Journal on Robotics and Computer Integrated Manufacturing, 11(4), 30 3 31 0 14 Sethi, A.K and Sethi, S.P.,... Manufacturing Chapman & Hall, pp 4 13 424 3 Okino, N., 1992: A prototyping of bionic manufacturing system In Proceedings of ICOOMS’92, pp 297 30 2 4 Okino, N., 19 93: Bionic manufacturing systems In J Peklerik (ed.), Flexible Manufacturing Systems, Past, Present, Future, Ljubljana, Slovenia, pp 73 95 5 Bradshaw, J (ed.), (1997) Software Agents, AAAI Press / The MIT Press 6 Tonshoff, H.K., Winkler, M and Aurich,... concept of an autonomous production cell is characterized by the high availability of planning, control, handling and machining functions directly on the machine Compared to currently available monitoring systems this allows for enhanced methods of process monitoring and disturbance management within a production system A module for the analysis of the process state uses a model-based comparison of cutting . 2424 37 X 3 3 4 4 4 30 24 32 24 24 38 X 1 3 3 4 3 10 24 24 24 18 39 S 4 4 4 4 4 40 32 32 24 24 43 M 3 4 4 4 3 30 32 32 24 18 50 P 4 3 3 3 4 40 24 24 18 24 68 T 4 3 4 4 3 40 24 32 24 18 94 M 3 4. Objective 1.22 .32 . 43. 5 236 7 131 .22 .32 . 43. 5 236 7 13 Weight 810109 86778 14 T 4 3 4 3 4 3 4 4 3 32 30 40 27 32 18 28 28 24 39 S 3 4 4 3 4 4 4 4 4 24 40 40 27 32 24 28 28 32 50 P 4 4 4 4 4 3 3 3 4 32 40 40 36 32 18. 18 138 5 138 20 S 30 8 8 24 24 94 5 470 37 X 30 24 32 24 24 134 1 134 38 X 10 24 24 24 18 100 1 100 39 S 40 32 32 24 24 152 5 760 43 M 30 32 32 24 18 136 4 544 50 P 40 24 24 18 24 130 3 390 68