KR: Supplement B

1. KR: Supplement B Computer-Integrated Manufacturing (CIM)

2. Definition of Automation Automation is a technology with the application of mechanical, electronic, and computer-based systems to operate and control production, this technology includes: • Automatic machine tools to process parts • Automatic assembly machines • Industrial robots • Automatic material handling and storage systems • Automatic inspection systems for quality control • Feedback control and computer process control • Computer systems for planning, data collection, and decision making to support manufacturing activities

3. Types of Automation • Fixed automation • Programmable automation • Flexible automation Fixed Automation Flexible Automation Programmable Automation

4. Number of different parts Programmable automation . Three types of production automation as a function of production volume and product variety. High Production variety Medium Flexible automation Fixed Automation Manual methods Low Parts per year Low Medium High Production volume

5. Basic Components of an NC System. Program Machine control unit Processing equipment FIGURE Basic components of an NC system.

6. Central computer Bulk Memory NC programs Telecommunication lines General configuration of a direct numerical control (DNC) Machine tools

7. General configuration of a direct numerical control (CNC) system Tape Reader for initial program entry NC Program storage Microcomputer (software functions) Computer- hardware interface and servosystem

8. Robot and Its Standard Movements Robot and Its Standard Movements

9. Where Robots Are Better • Hazardous work environment for human beings • Repetitive work cycle • Difficult handling for human beings • Multishift operation • Infrequent changeovers • Part position and orientation are established

10. Possible Objectives for Installing an Automated Storage System in a Factory or Warehouse Increase storage capacity Increase floor space utilization Recover space for manufacturing facilities Improve security and reduce pilferage Reduce labor cost in storage operations Increase labor productivity in storage operations Improve safety in storage function Improve control over inventories Increase stock rotation Improve customer service

11. Flexible Manufacturing Systems • What is an FMS A flexible manufacturing system consists of a group of processing stations (CNC), interconnected by means of an automated material handling and storage system, and controlled by an integrated computer system. • Components of an FMS • Processing stations • Material handling and storage • Computer control system

12. FMS

13. CIM Managerial Issues • Cost-benefit analysis • Advantages • Cost justification • CIM and manufacturing strategy • Organizational and behavioral aspects • Lessons learned

14. Synergistic Effects of a CIM System Benefits of data integration CIM benefits Benefits of each separate technology

15. Advantage of CIM • Higher quality • Shorter lead time • Less inventory • Higher flexibility • Economy of scope • Less floor space • Less material handling

16. CIM and Manufacturing Strategy • Cost leadership vs. differentiation Productivity vs. innovation Efficiency vs. flexibility • Market segmentation • Fixed costs vs. variable costs • Break-even point • Barriers to entry

17. Traditional Technology can be described by: Economy of scale Learning curve Task specialization Work as a social activity Separable variable costs Standardization Expensive flexibility and variety In contrast the CIM Factory is described by: Economy of scope Truncated product life cycle Multimission facilities Unmanned systems Joint costs Variety Profitable flexibility and variety Flexible Manufacturing

18. Centralization Large plants Balanced lines Smooth flows Standard product design Low rate of change and high stability Inventory used as a buffer “Focused factory” as an organizing concept Job enrichment and enlargement Batch systems Decentralization Disaggregated capacity Flexibility Inexpensive surge and turnaround ability Many custom products Innovation and responsiveness Production tied to demand Functional range for repeated reorganization Responsibility tied to reward Flow systems Flexible Manufacturing Leading to factories that exhibit characteristics of: Traditional CIM

19. Taking Advantage of CIM Capabilities To effectively use the capabilities of CIM as a strategic weapon, a firm should: • Invest in flexibility of, not just equipment, but the organization as a whole. • Deliberately truncate the product life cycle by introducing new versions frequently; and thus not giving the competitors a chance to catch up. • Proliferate the range of products to the extent of customizing them one-by-one so that no customer has any reason to go to the competitors. • Deliberately fragment the market into segments so small that they cannot support a conventional production system. • Deliberately complicate the product so that it cannot be copied with the old manufacturing process and technology.

20. Organizational and Behavioral Aspects of CIM • Integration of functions • Flattening the organization structure • Changing role of supervisors • Impact on workers • Shift from direct to indirect workers • Increased skill requirements • Displacement of workers • Retraining and education

21. Lessons Learned • Focus on a flexible business enterprise. • An automated mess is still a mess. • People make flexible automation work. • Provide an adequate funding. • Focus on potentials of new technology. • Understanding the emerging technologies.

22. CIM Examples Toshiba Toshiba’s computer factory in Ome is called an “intelligent works” because a snazzy computer network links office, engineering and factory operations, providing just-in-time information as well as just-in-time parts. Ome workers assemble nine different word processors on the same line and, on an adjacent one, 20 varieties of laptop computers. Usually they make a batch of 20 before changing models, but Toshiba can afford lot sizes as small as ten. Workers on the lines have been trained to make each model but don’t need to rely on memory. A laptop at every post displays a drawing and instructions, which change when the model does. Product life cycles for low-end computers are measured in months these days, so the flexible lines allow the company to guard against running short of a hot model or overproducing one whose sales have slowed, Toshiba’s next goal: to get managers thinking about how to ship small lots fast and cheaply, with quicker feedback from stores, so sales and distribution are as flexible as the factories

23. CIM Examples Fuji Fuji Electric’s investment in FMS and the like soared starting in 1987. Fuji’s goal was to reduce lead time 30%, labor costs 70% , and work in-process inventory 50%. When Fuji gets and order for an electric motor switch, 20% of the time the buyer wants-and gets 24 hour delivery. Another 40% must arrive within two days. Fuji didn’t narrow its product line: Those schedules are for customized work.

24. Variety Is FreeFlexibility Through Manufacturing Technology Ingersoll Milling Machine Company The Ingersoll Co. uses an advanced CIM system that links design with manufacturing and process control. Ingersoll’s state-of-the-art computer-controlled manufacturing system will machine over 25,000 different prismatic parts used for specialized motor controls. Seventy percent of the production will occur in lot sizes of one. Half of the 25,000 will never be used again. Production cost is approximately the same as for a long run of a single standard part.

25. Variety Is FreeFlexibility Through Manufacturing Technology Vought Corporation Vought Corporation’s $10 million flexible machining center began operations during the late 1980s. This advanced production technology allows the aerospace maker to produce some 600 different designs of specialized aircraft parts using the same equipment--even one design at a time in random sequence. It is expected to save Vought over $25 million annually in machine costs for these parts by performing 200,000 hours of work in less than 70,000 hours.