SCM 300 ? Module 03 Study Packet Module 03: Make It (Manufacturing Strategy, Facilities Location, Mfr Layout, Line Balancing and Capacity) While many people have a reasonable grasp on purchasing and logistics concepts, they tend to overlook issues that fall into the category of manufacturing. Everything we buy is produced, manufactured, and/or assembled in its own unique way and thus each item requires its own manufacturing strategy. Each item must be manufactured or assembled somewhere, and much to the surprise of most people, choosing a facility?s location based only on where low cost labor is available is simply ridiculous. As far as the inner workings of production facilities are concerned, most business students need to have at least a rudimentary grasp of typical layout strategies as well as an understanding of manufacturing constraints. Following completion of this module, students should understand enough about manufacturing/assembly that they can at least ask the appropriate purchasing and logistics questions. Reading Assignments: EARTH 6-11, 16-17, 20-26 Concepts Terms and Lists Layouts 6-11 4 Questions about Layout Planning 5 Cycle Time (CT or c) 20-23 Line Balancing 20-23 Flexible flow layout 6-7 TM 20-23 Line-Flow Layout 7 Idle Time 20-23 Hybrid Layout 7-11 Work elements 20-23 Examples Fixed-position layout 8 Immediate predecessors 20-23 Rivertown Crossings 3-4 Performance criteria 8-9 Precedence diagram 20-23 Example 3 21 OWMM cells 9-10 Pacing 23 Example 4 22 GT cells 10-11 "Other Considerations" 23 Solved Problem 2 25-26 Warehouse layouts 16-17 Mixed Model line 23 Additional Practice problems in Earth Textbook (Not Required) Page 29 - #7 90 sec/unit 4.611 ( 5 Five workstations - ACE---B---GD---HFI---JK Efficiency = 92.2% Page 29 - #8 60 sec/unit and 4.556 ( 5 Six workstations - A---C---BF---DG---IEH---J Efficiency = 91.33% New Product Development ? Slides 03-06 What are the primary differences between strategic, design, and operating decisions? What does the company need to consider when designing new products? Why? How do design decisions impact the management and the effectiveness of the supply chain? Be able to recall the examples discussed in lecture. Facilities Location Considerations - Slides 08-11 What are some of the key issues companies must consider in choosing a location for manufacturing? Why is each of those considerations important? Be able to recall the examples discussed in lecture. What are some of the more complex considerations related to labor? What does it mean to have established channels of distribution and an established supplier base? What are hypercompetitive markets? Give some very common examples of this. Manufacturing and Layout Strategies - Slides 13-29 Divide as much information as possible into three lists: A. Line Flow - Assembly Line, Continuous Flow, Fast, Standardized, Make-to-Stock, etc. B. Flexible Flow - Job shop, High Performance, Slower, Customized, Make-to-Order, etc. C. Hybrid Systems - Batch, GT(Cellular), Moderate speed, Moderate Customization Things to include in your lists - What is a Flex Flow or Line Flow system? Strengths and weaknesses of each system? When should each be utilized? Any special characteristics associated with each? Other names for these systems? How can you grade whether or not your layout is effective, efficient, and adaptable? Line Balancing and Capacity Issues - Slides 31-48 Do you understand the basics of the Theory of Constraints discussed in lecture? How do create an efficient assembly line to help you achieve your organizational goals. What is a bottleneck? What are the trade-offs that must be considered in developing a balanced line? Be able to complete line balancing problems: A. What is Cycle Time? What does it dictate? What is effective CT? Why is each important? How does it relate to capacity? B. Understand all required calculations. C. What is Line Balancing? What are the goals? How do you balance a line? D. Be able to tell whether or not a line is balanced. E. What are the ?CT rule? and the ?Precedence rule?? Be able to tell whether or not a line solution is adhering to precedence rules and/or cycle time rules. Understanding Module 03 These questions are intended to help you see if you understand how this module?s topics all tie together. Look around the room, what was manufactured? What was assembled? What type of facility do you think was used to make that item? Where do you think that item produced? Where were the components produced? Think of a major item. How would you produce that item on an assembly line? What value could you add to the item by utilizing a Flexible Flow or Hybrid system? Choose 4 US cities. What would be the key considerations associated with locating a factory in each city? Do the same for 4 different international cities/countries. While you are unlikely to ever balance an assembly line on your own, what are some lessons that you can take away from line balancing that might be useful to you in starting your own business? Practice Questions on Text Material: Are you understanding the text? This may help answer that question. While this may be useful for some students, please understand that some exam questions are very likely going to be much more difficult. Which of the following is a type of manufacturing layout? Project layout Flexible Flow layout Patient layout All of the above Which of the following is an example of a Flexible Flow layout? Job shop Incremental layout Fixed position layout Project layout When groups of dissimilar machines are brought together in a work cell to perform tasks on a family of products that share common attributes, is it called what? Fixed position layout Line Flow layout Flexible Flow layout Group technology Which of the following best describes a layout in which the product being produced remains stationary and the processes are brought to it? Centralized layout Fixed position layout Stationary layout Line Flow layout What is the minimum number of workstations given the following: the sum of all task times is 360 seconds, the cycle time is 60 seconds, and the output per day is 480. 8 stations 6 stations .16666 stations 2 stations Which of the following might be made on an assembly line? Customized birthday cake Children?s toys Hand Crafted wood carvings All of the above 5 15 A B 25 10 15 E F D 10 20 C D If the cycle time is 30 seconds, which of the following would NOT be acceptable as the first workstation? Use the above precedence diagram. AC ADC DB CD If the cycle time is 40 seconds, what would be the theoretical minimum number of workstations? Use the above precedence diagram. 2 Workstations 3 Workstations 4 Workstations 5 Workstations Answer Key: 1.B 2.A 3.D 4.B 5.B 6.B 7.C 8.B
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