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Chapter 3 - Lecture Notes

This chapter discusses various mathematical models and metrics used to measure manufacturing performance. It covers production rate, capacity, utilization, availability, manufacturing lead time, and work-in-process. Production rate is calculated based on cycle time and batch size. Capacity depends on resources available. Utilization and availability indicate how close a facility operates to its limits. Lead time and work-in-process track flow through the system. Cost models separate fixed and variable costs. Overhead rates are calculated to allocate indirect expenses. Quantitative metrics help manage operations, identify issues, and improve decision making.

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141 views

Chapter 3 - Lecture Notes

This chapter discusses various mathematical models and metrics used to measure manufacturing performance. It covers production rate, capacity, utilization, availability, manufacturing lead time, and work-in-process. Production rate is calculated based on cycle time and batch size. Capacity depends on resources available. Utilization and availability indicate how close a facility operates to its limits. Lead time and work-in-process track flow through the system. Cost models separate fixed and variable costs. Overhead rates are calculated to allocate indirect expenses. Quantitative metrics help manage operations, identify issues, and improve decision making.

Uploaded by

zaccaro_86
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PDF, TXT or read online on Scribd
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Chapter 3 BEKC4883 Advanced Manufacturing System

CHAPTER 3 MANUFACTURING MODELS & METRICS


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OUTLINES
1. Mathematical Models of Production Performance 2. Manufacturing Costs

Chapter 3 BEKC4883 Advanced Manufacturing System

Manufacturing Models and Metrics


Variety of metrics used by successful manufacturing to help managing companys operations Quantitative metrics used to:
Track performance in successive periods (i.e. months & years) Try out new technologies & new systems to determine companys merits Identify problems with performance Compare alternative methods Make good decisions

Manufacturing Models and Metrics


Manufacturing Metrics can be divided into 2 basic categories: 1) Production Performance Measure (Mathematical Models of Production Performance) 2) Manufacturing Costs

Chapter 3 BEKC4883 Advanced Manufacturing System

Mathematical Models of Production Performance

Production Rate Production Capacity Utilization & Availability

Manufacturing Lead Time (MLT) Work-In Process (WIP)

MMPP: Production Rate


Usually expressed in hourly rate Consider 3 types of production job shop, batch prod & mass productions. Typical cycle time for a production operation:

Tc = To + Th + Tth
where; Tc = cycle time, To = processing time for the operation, Th = handling time (e.g., loading and unloading the production machine) Tth = tool handling time (e.g., time to change tools)

Chapter 3 BEKC4883 Advanced Manufacturing System

MMPP: Production Rate


In batch production, time to process one batch of Q work units is: Batch time, Tb = Tsu + QTc

where;

Tb = batch processing time (min) Tsu = setup time to prepare for the batch (min) Q = batch quantity (pc) Tc = operation cycle time per work unit (min/cycle)
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MMPP: Production Rate


By dividing batch time with batch qty:
Average production time per work unit for the given machine,

Tp = Tb / Q Production rate: Rp = 1 / Tp

The average production rate for the machine, Rp = 60 / Tp


Rp = hourly production rate (pc/hr) Tp = average production time per work unit (min/pc) 60 = constant to convert minutes to hours

Chapter 3 BEKC4883 Advanced Manufacturing System

MMPP: Production Rate


For flow line mass production, the production rate approximates the cycle rate of the production line Operation production time is complicated by interdependence workstations on the line
Usually impossible to divide total work equally among all workstations, thus one station ends up with the longest operation time (can be referred as bottleneck station) Bottleneck station a situation where a station consume the longest operation time that sets the pace of the entire line
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MMPP: Production Rate


In flow line mass production: The cycle time of a production line, Tc is:

Tc = Tr + MaxTo
Tr = time to transfer the work units between stations each cycle time (min/pc) MaxTo = operation time at the bottleneck station (the maximum of the operation times for all stations on the line)

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Chapter 3 BEKC4883 Advanced Manufacturing System

MMPP: Production Rate


For flow mass production: The machine production rate is determined by taking the reciprocal of Tc)

Rc =

60 Tc

Rc = theoretical or ideal production rate / cycle rate (cycles/hr) Tc = ideal cycle time (min/cycle) 60 = constant to convert minutes to hours
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MMPP: Production Capacity


Production Capacity defined as:
Maximum rate of output that a production facility is able to produce under a given set of assumed operating conditions
Usually refers to plant/factory, thus Plant Capacity term is used Assumed operating conditions no. of shifts/day, no. of days in the week/month that the plant operates, employment levels, etc.

Maximum time available in a week: = 24 hr/day, 7 days/wk = 168 hr/wk


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Chapter 3 BEKC4883 Advanced Manufacturing System

MMPP: Production Capacity


Plant capacity for facility in which parts are made in one operation:

PC = nSwHshRp
PC = weekly production capacity of the facility (output units/wk) n = no. of work centers working in parallel producing in the facility Sw = no. of shifts per period (shift/wk) Hs = hr/shift (hr) Rp = hourly production rate of each work center (output units/hr)

Work center manufacturing system in the plant typically consisting of one worker & one machine
It might be an automated machine with no worker or multiple workers working on a production line
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MMPP: Production Capacity


Example 3-1 The turret lathe section has 6 machines, all devoted to the production of the same part. The section operates 10 shifts/wk. The number of hours per shift averages 8.0. Average production rate of each machine is 17 units/hr. Determine the weekly production capacity of the turret lathe section.

Solution:

PC = n Sw Hs Rp PC = 6 (10) (8.0) (17)


= 8160 output unit/wk
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Chapter 3 BEKC4883 Advanced Manufacturing System

MMPP: Production Capacity


If include the possibility that each work unit is routed through no operations where each operation requires new setup [facility in which parts require multiple operations (no > 1)], thus, Plant Capacity:

PC =

nS w H s R p no

no = no. of distinct operations through which work units are routed Changes that can be made to increase or decrease the PC:
No. of shifts/wk i.e. weekend shifts No. of hours worked / shift i.e. overtime
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MMPP: Utilization and Availability


Utilization = amount of output of a production facility relative to its capacity

U =

Q PC

U = utilization of the facility Q = actual qty produced by the facility during a given time period (i.e. pc/wk) PC = production capacity for the same period (i.e. pc/wk)

Utilization can be assessed for the entire plant/any other productive resources (i.e. labor) It is often defined as the proportion of time that the facility is operating relative to the time available Usually expressed in %

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Chapter 3 BEKC4883 Advanced Manufacturing System

MMPP: Utilization and Availability


Example 3-2 A production machine operates 80 hr/wk (2 shifts, 5 days) at full capacity. Its production rate is 20 unit/hr. During a certain week, the machine produced 1000 parts & was idle the remaining time.
a)

Determine the production capacity of the machine; Assumed 80-hr week; PC = 80 (20) = 1600 units/wk What was the utilization of the machine during the week under considerations? Determine U as the ratio of the no. of parts made by the machine relative to its capacity; U = 1000 / 1600 = 0.625 (or 62.5%)
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b)

MMPP: Utilization and Availability


Availability = a common measure of reliability for equipment Especially appropriate for automated production equipment:

A=

MTBF MTTR MTBF

A = availability (typically in %) MTBF = mean time between failures (hr) MTTR = mean time to repair (hr) MTBF indicates the average length of time between breakdowns of equipment MTTR indicates the average time required to service the equipment & put back into operation when breakdown occurs
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Chapter 3 BEKC4883 Advanced Manufacturing System

MMPP: Utilization and Availability


Example 3-3:
Consider previous Example 3.1, additional data: A = 90%, U= 80%. Determine the expected plant output. PC = Q = AU (n Sw Hs Rp) Q = (0.9)(0.8)(6)(10)(8.0)(17) = 5875 output unit/wk

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MMPP: Manufacturing Lead Time (MLT)


Manufacturing Lead Time, MLT = total time required to process a given part or product through the plant Simplified form:

MLT = n o (Tsu + QT c + Tno )


MLT = average Manufacturing Lead Time for a part/product (min) no = no. of separate operations (machines) Tsu = setup time for operation Q = qty of part/product Tc = operation cycle time Tno = non-operation time

In actual batch production factory, all the above terms would vary by product & by operation
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Chapter 3 BEKC4883 Advanced Manufacturing System

MMPP: Manufacturing Lead Time (MLT)


Example 3-4
A certain part is produced in a batch size of 100 units. The batch must be routed through 5 operations to complete the processing of the parts. Average setup time is 3 hr/operation & average operation time is 6 min (0.1hr). Average non-operation time due to handling, delays, inspections, etc., is 7 hours for each operation. Determine how many days it will take to complete the batch, assuming the plant runs one 8-hr shift/day.

MLT = no (Tsu + QTc + Tno )


= 5 [3 + (100x0.1) + 7) = 100 hours At 8 hr/day, this amounts to 100/8 = 12.5 days
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MLT

MMPP: Work-In Process (WIP)


WIP = qty of parts/products currently located in the factory that are either being processed or are between processing operations WIP inventory; in the state of being transformed from raw material to finished product

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Chapter 3 BEKC4883 Advanced Manufacturing System

MMPP: Work-In Process (WIP)


Approximate measure of WIP:

WIP =

AU ( PC )( MLT ) SwHsh

WIP = work-in-process in the facility (pc) A = availability U = utilization PC = production capacity of the facility (pc/wk) MLT = manufacturing lead time (hr) Sw = no. of shifts per week (shift/wk) Hsh = hours per shift (hr/shift)
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Manufacturing Costs
Two major categories of manufacturing costs: 1. Fixed costs - remain constant for any output level 2. Variable costs - vary in proportion to production output level Adding fixed and variable costs:

TC = FC + VC(Q)
where; TC = total costs FC = fixed costs (e.g., building, equipment, property taxes, etc.) VC = variable costs (e.g., labor, materials, utilities, etc.) Q = output level
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Chapter 3 BEKC4883 Advanced Manufacturing System

Manufacturing Costs
Alternative classification of manufacturing costs:
1. Direct labor - wages and benefits paid to workers 2. Materials - costs of raw materials 3. Overhead - all of the other expenses associated with running the manufacturing firm Factory Overhead

Corporate Overhead

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Manufacturing Costs

Breakdown of costs for a manufactured product


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Chapter 3 BEKC4883 Advanced Manufacturing System

Manufacturing Costs
Factory Overhead Rate:

FOHR =

FOHC DLC

Corporate Overhead Rate:

COHR =

COHC DLC

where DLC = direct labor costs


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Manufacturing Costs
Hourly cost of worker-machine system: Co = CL(1 + FOHRL) + Cm(1 + FOHRm)
where; Co = hourly rate, $/hr CL = labor rate, $/hr FOHRL = labor factory overhead rate, Cm = machine rate, $/hr FOHRm = machine factory overhead rate
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