Chapter 3

What is likely the most common type of manufacturing process?

Batch manufacturing

Product family

In group technology, a set of products with very similar manufacturing requirements.

Downstream

In the context of manufacturing customization, activities that occur at or after the point of customization

Upstream

In the context of manufacturing customization, activities that occur prior to the point of customization

Flexible manufacturing systems (FMS)

Highly automated batch processes that can reduce the cost of making groups of similar products.

What is the main emphasis in a job shop?

Meeting a customer's unique requirements.

Despite many changes in manufacturing over the years, there is a basic truth. What is it?

No manufacturing process can be best at everything.

Takt time

In a production line setting, the available production time divided by the required output rate. Sets the maximum allowable cycle time for a line.

Assemble-to-order (ATO) / finish-to-order

Products that are customized only at the very end of the manufacturing process. example a tshirt with a customers name on i

Engineer-to-order (ETO) products

Products that are designed and produced from the start to meet unusual customer needs or requirements. They represent the highest level of customization.

Make-to-stock (MTS) products

Products that require no customization. Typically generic products and are produced in large enough volumes to justify keeping a finished goods inventory. Typically bought "off the shelf"

Make-to-order (MTO) products

Products that use standard components but have customer specific final configuration of those components.

Onstage actions

Provide a point of direct interaction with the customer.

Law of variability

Roger Schmenner and Morgan Swink The greater the random variability either demanded of the process or inherent in the process itself or in the items processed, the less productive the process it is. This law is relevant to customization because completing upstream activities offline helps isolate these activities from the variability caused by either the timing or the unique requirements of individual customers.

Back room

The part of a service operation that is completed without direct customer contact.

Front room

The physical or virtual point where the customer interfaces directly with the service organization

Hybrid manufacturing process

A general term referring to a manufacturing process that seeks to combine the characteristics, and hence advantages, of more than one of the classic processes. Examples include flexible manufacturing systems, machining centers, and group technology

Group technology

A type of manufacturing process that seeks to achieve the efficiencies of a line process in a batch environment by dedicating equipment and personnel to the manufacture of products with similar manufacturing characteristics. Group technology cells typically follow a cellular layout

Job shop

A type of manufacturing process used to make a wide variety of highly customized products in quantities as small as one. Job shops are characterized by general-purpose equipment and workers who are broadly skilled.

Production line

A type of manufacturing process used to produce a narrow range of standard items with identical or highly similar designs. Follows a product-based layout

Batch manufacturing

A type of manufacturing process where items are moved through the different manufacturing steps in groups or batches.

3D printing

An additive manufacturing process that creates a physical object from a digital design.

Job shops typically follow a ___ layout.

functional

Production lines excel when production volumes are ___, products are standard rather than ___, and cost is ___.

high, customized, important

In a job shop, the product design is ___ standardized.

not

The greater the emphasis on intangible activities...

the more critical are the training and retention of skilled employees and the development and maintenance of the firm's knowledge assets.

The greater the emphasis on physical activities...

the more management's attention will be directed to capital expenditures, material costs, and other tangible assets.

As the degree of customization decreases,

the service package becomes more standardized

According to Professor Frei, what are the five distinct forms of customer-introduced variability?

1. Arrival variability. Customers arrive when they desire service. 2. Request variability. Customers demand and expect different services outcomes, even from the same provider. 3. Capability variability. Some customers are capable of performing many service tasks themselves, while others require substantial hand holding. 4. Effort variability. Even if they are capable of performing certain tasks, customers can differ from one another with regard to the amount of effort they are willing to apply to these tasks. 5. Subjective preference. Different customers can perceive the same service outcome differently.

What happens when customization occurs early in the supply chain?

1. Flexibility in response to unique customer needs will be greater. 2. Lead times to the customer will tend to be longer. 3. Products will tend to be more costly

What happens when customization occurs late in the supply chain?

1. Flexibility in response to unique customer needs will be limited. 2. Lead times to the customer will tend to be shorter. 3. Products will tend to be less costly.

What are the two drawbacks of production lines?

1. High volumes are required to justify the required investment in specialized equipment and labor. 2. Lines are inflexible with regard to products that do not fit the design characteristics of the production line.

What are the four levels of product customization, from least to greatest customization?

1. Make-to-stock (MTS) 2. Assemble-to-order (ATO) / finish-to-order 3. Make-to-order (MTO) 4. Engineer-to-order (ETO)

What are a few general principles to keep in mind when selecting and implementing a manufacturing process?

1. Selecting an effective manufacturing process means much more than just choosing the right equipment. More components are required. 2. Different manufacturing processes have different strengths and weaknesses. Some are best suited to making small numbers of customized products, while others excel at producing large volumes of standard items. 3. The manufacture of a particular item might require many different types of manufacturing processes, spread over multiple sites and organizations in the supply chain.

Why is a continuous flow process less flexible than a production line?

1. The nature of the product tends to make shutdowns and start-ups expensive, discouraging flexibility and encourages product standardization. 2. The highly technical nature of many continuous flow processes means that specialists are needed to control operations. 3. Continuous flow processes tend to be highly capital-intensive and very inflexible with respect to changes in output levels.

Why are manufacturing and service process decisions very important to firms?

1. They are expensive and far reaching. A decision to implement a production line influences types of workers needed, products made, and information systems required. 2. Process decisions deserve extra attention because different processes have different strengths and weaknesses.

Service package

A package that includes all the value-added physical and intangible activities that a service organization provides to the customer.

Line balancing

A technique used in developing product-based layouts, as would be found in a production line or a group technology work cell. Assigning tasks to a series of linked workstations in a manner that minimized the number of workstations and minimizes the total amount of idle time for all stations for a given output level.

Cellular layout

A type of layout typically used in group technology settings in which resources are physically arranged according to the dominant flow of activities for the product family.

Product-based layout

A type of layout where resources are arranged sequentially, according to the steps required to make a product.

Functional layout

A type of layout where resources are physically grouped by function

Fixed-position layout

A type of manufacturing process in which the position of the product is fixed. Materials, equipment, and works are transported to and from the product.

Continuous flow process

A type of manufacturing process that closely resembles a production line process. The main difference is the form of the product, which usually cannot be broken into discrete units. Examples include yarns and fabric, food products, and chemical products such as oil or gas.

Machining center

A type of manufacturing process that completes several manufacturing steps without removing an item from the process. Usually found in batch manufacturing environments.

Support processes

Do not occur as a result of any particular customer's actions.

Cycle time

For a line process, the actual time between completions of successive units on a production line.

Backstage actions

Take place in direct response to a customer action, but the customer does not see these activities carried out.