INTRODUCTION TO

AUTOMATION

1
 INTRODUCTION
Production system: A production system
refers to the combination of resources,
processes, and activities used to transform
inputs into desired outputs (goods or
services).

Production system is a structured approach

to transforming inputs into valuable outputs.

It encompasses everything required to

produce a product or provide a service,
including raw materials, machinery, labor,
and management. 2
 Components of a Production
System
Inputs: Raw materials, components, labor,
energy, capital, and information.
Processes: The sequence of operations and
transformations applied to inputs to create
outputs.
Includes manufacturing, assembly, inspection,
and quality control.
Outputs: Finished goods, services, or products
that meet customer requirements. Also
includes by-products, waste, and emissions.
Control Systems: Systems for monitoring and
adjusting production processes to ensure
quality, efficiency, and cost-effectiveness.
3
 Classification of a Production
System
Job Shop Production: Customized production of
unique items or small orders (e.g., prototypes,
tools).Focused on high customization and
flexibility.
Batch Production: Produces a specific quantity of
a product in batches (e.g., clothing, bakery
items).Offers flexibility for producing multiple
types of products.
Mass Production: High-volume production of
standardized products using automated
systems (e.g., cars, electronics).
Continuous Production: Used for mass
production of standardized products (e.g., food,
chemicals).Involves a continuous process with
minimal interruptions.
4
 INTRODUCTION
Production system: Manufacturing
support systems and facilities.

Mfg Support Facilities

System (Factory
Equipments)

5
 INTRODUCTION… cont.
• Manufacturing Support System
- procedures used to manage production
and to solve logistics & technical
problems.
• Facilities
- the equipment in factory and the way
the equipment is organized. It includes
machines, tooling, material handling
equipment, inspection equipment, comp.
& plant layout.
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Structure of Production
System

7
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 INTRODUCTION… cont.
• Industrial Automation:
• The technology by which a process or
procedure is accomplished without
human assistance.
• A technique that can be used to reduce
costs and/or to improve quality.
• Can increase manufacturing speed,
while reducing cost.

9
 INTRODUCTION…cont.

• Can lead to products having consistent

quality, perhaps even consistently good
quality
• It is implemented using a program of
instructions combined with a control
system that executes the instructions.

10
 INTRODUCTION…cont.

• To automate a process, power is

required, both to drive the process
itself and to operate the program and
control system.
• Automated processes can be
controlled by human operators, by
computers, or by a combination of the
two.

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 Definition 1
• Automation is a technique that can be used to
reduce costs and/or to improve qual­ity.
Automation can increase manufacturing speed,
while reducing cost. Automation can lead to
products having consistent quality, perhaps even
consistently good quality.

Definition 2
• Automation is a technology concerned with
application of mechanical, electronic and
computer-based system to operate and
control system. This technology includes;
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• Automatic assembly machines
• Automation machine tools to
process parts
• Industrial robots
• Automatic materials handling and
storage system
• Automatic inspection system and
quality control
• Feedback control and computer
process control
• Computer system for planning, data
collection and decision making to
support manufacturing activities
13
 INTRODUCTION…cont.

• If a human operator is available to

monitor and control a manufacturing
process, open loop control may be
acceptable.
• If a manufacturing process is automated,
then it requires closed loop control,
also known as feedback control.
• example of open loop control and closed
loop control.
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Example of open loop control system

15
 Example of closed loop control

Temperature
instruction
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 Arguments in favor of
Automation
• Automation is the key to shorter work week –
working hours per week reduces and , allowing
more leisure hours and a higher quality of life.
• Automation brings safer working conditions for
workers.
• Automated production results in lower prices and
better products

17
 Arguments in favor of
Automation
• Automation is the key to shorter work week –
working hours per week reduces and , allowing
more leisure hours and a higher quality of life.
• Automation brings safer working conditions for
workers.
• Automated production results in lower prices and
better products

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Arguments against Automation

• It result in the subjugation of human being by a

machine – reduces the need for skilled labor
• There will be reduction in the labor force –
resulting un employment.
• Automation will reduce purchasing power-
markets will become saturated with products that
people cannot afford to purchase.

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 Reasons for
automating
1.To increase tat-or productivity
2.To reduce labor cost
3.To mitigate the effects of labor shortages
4.To reduce or eliminate routine manual and clerical/asks.
5.To improve worker safety.
6.To improve product quality.
7.To reduce manufacturing lead lime.
8.To accomplish processes that cannot be done manually;
9.To avoid the high cast of not automating.
 Automation in production
systems
The automated elements of the production system can be separated into
two categories:
(1)Automation of the manufacturing systems in the factory.
(2)Computerization of the manufacturing support systems.
.
 Automated manufacturing
systems
Automated manufacturing systems operate in the factory on the physical
product.

They perform operations such as processing, assembly, inspection, or

material handling, in some cases accomplishing more than one of these
operations in the same system.

They are called automated because they perform their operations with a
reduced level of human participation compared with the corresponding
manual process.

In some highly automated systems, there is virtually no human

participation.
 Automated manufacturing
systems
Examples of automated manufacturing systems include:
•Automated machine tools that process parts
•Transfer lines that perform a series of machining operations
•Automated assembly systems
•Manufacturing systems that use industrial robots to perform processing
or assembly operations
•Automatic material handling and storage systems to integrate
manufacturing operations
•Automatic inspection systems for quality control
Automated manufacturing systems can be classified into three basic types:
(1)Fixed automation.
(2)Programmable automation, and
(3)Flexible automation.
 Main
Categories of
Automation
 Main
Categories of
Automation
 Main
Categories of
Automation

https://www.youtube.com/watch?v=WAXnftiVGko
1.Fixed Automation
• Also known as Hard Automation, Fixed Automation involves the
employment of specific-purpose equipment to automate a repetitive
sequence of tasks, processing or assembly operations.
• Generally, the operational sequence is not complex, involves
fundamental functionalities like rotational or plain linear motion, or
an incorporation of both.
• The advantages of fixed automation are improved rate of production,
low cost of the unit, and the automation of the material handling process.
• If the automation repeats the same tasks with identical units, it is
Fixed Automation.
• The most notable limitation, here, is that Hard Automation units must be
replaced when new tasks need to be completed.
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1. Fixed Automation
Typical features of fixed automation are:
•high initial investment for custom-engineered
equipment
•high production rates
•relatively inflexible in accommodating product variety
Advantages of Fixed Automation are:
•Fixed automation has high production rates.
•Manufacturing cost per unit is lower.
•Uniform quality output.
Limitations of Fixed automation are:
•High Initial investment is required.
•Difficult to adapt to changes.
2.Programmable Automation
• Programmable Automation allows for fresh programs to
be designed and deployed to the system to implement
new processes.
• Programmable Automation allows for reprogramming
for different tasks after a batch of one type is complete.

• The main advantage of the programmable automation is

greater flexibility to deal with the variation of designs.
• While it is the best-fit for batch production of a variety of
designs, it produces fewer units than both Fixed and
Flexible Automation because of the changeover-time
between functions.
2.Programmable Automation
Some of the feature, that characterize programmable
automation includes:
•high investment in general purpose equipment
•lower production rates than fixed automation
•flexibility to deal with variations and changes in product
configuration
•most suitable for batch production
Advantages of Programmable Automation are:
•Programmable automation is best suited for batch production.
•There is flexibility to accommodate product change.
Limitations of Programmable automation are:
•Initial cost is high.
•Lower production level as compared to fixed automation.
•Reprogramming is time consuming.
3.Flexible Automation
This automation type is an extension of programmable
automation that has the capacity to produce a spectrum of
products with next-to-zero downtime and no complicated
change-over manual procedure, which means greater
production rate.
Because there is no need for complex reprogramming, Flexible
Automation can switch between tasks. In manufacturing,
because there is no need for batch production, tasks can be
completed on demand.
Flexible Automation enables automatic and rapid changes to
programmed sequences, such as production of design
variations, with virtually no down-time.
In short, Flexible Automation allows for a variety of
procedure outcomes and high output.
3.Flexible Automation
The features of flexible automation can be summarized as
follows:
•High investment for a custom-engineered system
•Continuous production of variable mixtures of products
•Medium production rate,
•Flexibility to deal with product design variations
Advantages of Flexible Automation are:
•No time is lost while changes are made.
•Easier to adapt to changes in product.
•It is faster than programmable automation as no time is past
in
making the changes.
Limitations of Flexible automation are:
•Higher cost of equipment/machinery.
•Manufacturing cost per unit is higher.
 MANUAL LABOR IN PRODUCTION
SYSTEMS
• Number of situations can be listed in which
manual labor is preferred over automation
• Task is too technologically difficult to
automate.
• Reasons for the difficulty include
• (1) problems with physical access to the
work location,
• (2) adjustments required in the task,
• (3) manual dexterity requirements
• (4) demands on hand–eye coordination. 36
 MANUAL LABOR IN PRODUCTION
SYSTEMS

• Number of situations can be listed in

which manual labor is preferred over
automation
• Short product life cycle.
• Customized product.
• To cope with ups and downs in demand.
• To reduce risk of product failure.
• Lack of capital.
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 BASIC ELEMENT OF AN
AUTOMATED SYSTEM
• Consists of 3 basic elements:
1) The actuator (which does the work)
• Controlled by the controller.
• The actuator in a automated
process may in fact be several
actuators, each of which
provides an output that drives
another in the series of
actuator.

38
 Labor in Manufacturing
Support Systems
• many of the routine manual and clerical
tasks can be automated using computer
systems.
• Certain production planning activities are
better accomplished by computers than
by clerks. Material requirements planning
(MRP)
• CAD/CAM/Process Planning using
computers
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 Labor in Manufacturing
Support Systems
• Equipment maintenance
• Programming and computer operation
• Engineering project work
• Plant management

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 Automation Principles
and Strategies
Automation is not always the right
answer for a given production
situation
There are three approaches for dealing with
automation projects:
•(1) USA Principle
•(2) Ten Strategies for Automation and Process
Improvement
•(3) Automation Migration Strategy.
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 USA Principle
• The USA Principle is a commonsense approach to
automation and process improvement projects.
• Similar procedures have been suggested in the
manufacturing and automation trade literature,
but none has a more captivating title than this
one. USA stands for
• (1) Understand the existing process
• (2) Simplify the process,
• (3) Automate the process.
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 USA Principle
• A statement of the USA Principle appeared in an
article published by the American Production and
Inventory Control Society.
•

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 USA Principle -Understand the
Existing Process.
1.Understanding the Current Process
1. Comprehend the process in full detail.
2. Identify inputs, outputs, and the transformations from input to
output.
3. Determine the function of the process and how it adds value to
the product.

2.Process Context
1. Evaluate the upstream and downstream operations in the
production sequence.
2. Assess whether these operations can be combined with the
current process.

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Flow Process Chart:
1.Metal panels cut to shape (5 minutes).
2.Hinges attached with fasteners (3 minutes).
3.Weather seals installed (2 minutes).
4.Painting and drying (30 minutes).
5.Inspection (5 minutes).
6.Transportation to assembly line (2 minutes).

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 USA Principle -Understand the
Existing Process.
• Charting Tools
• Use industrial engineering tools like operation
charts and flow process charts.
• These tools help model the process, identify steps,
inspections, moves, delays, and storage times.
• Analysis of the Process
• Examine the process model for weaknesses and
strengths.
• Quantify steps, inspections, moves, and delays in
the process.

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 USA Principle -Understand the
Existing Process.
• Mathematical Modeling:
• Develop mathematical models to show relationships between input
parameters and output variables.
• Identify critical output variables and how they are influenced by:
• Raw material properties.
• Process settings.
• Operating parameters.
• Environmental conditions.
• Feedback and Control:
• Determine the output variables that need to be measured for feedback.
• Formulate algorithms for automatic process control based on this data.
 Simplifying a process
• It involves analyzing it thoroughly and identifying
areas where improvements can be made.
1.Break down the process step-by-step to understand
its purpose and function.
2.Ask Key Questions
1. What is the purpose of this step or transport?
2. Is this step necessary?
3. Can this step be eliminated?
4. Does this step use the most appropriate technology?
5. How can this step be simplified?
6. Are there unnecessary steps that can be removed without
affecting functionality?

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 Simplifying a process
Use Improvement Strategies:
1.Combine steps where possible.
2.Perform steps simultaneously if feasible.
3.Integrate steps into a manually operated
production line when appropriate.
4.Apply strategies like error-proofing,
standardization, and automation to refine the
process.

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 Automate the process
• Once the process has been reduced to its
simplest form, then automation can be
considered.

• The possible forms of automation include

those listed in the ten strategies.

• An automation migration strategy might be

implemented for a new product that has not
yet proven itself.
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 Ten Strategies for
Automation and Process
Improvement
• Applying the USA Principle is a good
approach in any automation project.
• As suggested previously, it may turn out
that automation of the process is
unnecessary or cannot be cost justified
after the process has been simplified.
• If automation seems a feasible solution to
improving productivity, quality, or other
measure of performance, then the
following ten strategies provide a road
map to search for these improvements.
51
 Ten Strategies for
Automation and Process
Improvement
• 1. Specialization of operations.
• The first strategy involves the use of
special-purpose equipment designed to
perform one operation with the greatest
possible efficiency.
• This is analogous to the specialization of
labor, which is employed to improve
labor productivity.

52
 Ten Strategies for
Automation and Process
•
Improvement
2. Combined operations.
• Production occurs as a sequence of operations.
• Complex parts may require dozens or even
hundreds of processing steps.
• It involves reducing the number of distinct
production machines or workstations through
which the part must be routed.
• This is accomplished by performing more than one
operation at a given machine, thereby reducing
the number of separate machines needed.
53
 Ten Strategies for
Automation and Process
•
Improvement
2. Combined operations.
• Production occurs as a sequence of operations.
• Complex parts may require dozens or even
hundreds of processing steps.
• It involves reducing the number of distinct
production machines or workstations through
which the part must be routed.
• This is accomplished by performing more than one
operation at a given machine, thereby reducing
the number of separate machines needed.
54
 Ten Strategies for
Automation and Process
•
Improvement
3. Simultaneous operations.
• A logical extension of the combined operations
strategy is to simultaneously perform the
operations that are combined at one
workstation.
• In effect, two or more processing (or assembly)
operations are being performed simultaneously
on the same work part, thus reducing total
processing time.

55
 Ten Strategies for
Automation and Process
Improvement
• 4. Increase in Flexibility.
• The increased flexibility strategy focuses on
maximizing equipment utilization in job shop
or medium-volume production environments.
• It uses programmable or flexible automation
to enable the same equipment to produce a
variety of parts or products.
• This reduces setup time, programming time,
and manufacturing lead time, while also
minimizing work-in-process (WIP).
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 Ten Strategies for
Automation and Process
•
Improvement
5. Integration of operations.
• The integration of operations strategy
involves combining multiple workstations
into a single, unified production system.
• This is often achieved using automated
material handling systems that transfer
parts seamlessly between workstations,
reducing manual intervention and
improving throughput.
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 Ten Strategies for
Automation and Process
•
Improvement
6. Improved material handling and
storage.
• A great opportunity for reducing non-productive
time exists in the use of automated material
handling and storage systems.
• Typical benefits include reduced work-in-
process, shorter manufacturing lead times, and
lower labor costs

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 Ten Strategies for
Automation and Process
•
Improvement
7. On-line inspection.
• Incorporating inspection into the manufacturing
process permits corrections to the process as
the product is being made.
• This reduces scrap and brings the overall
quality of the product closer to the nominal
specifications intended by the designer

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 Ten Strategies for
Automation and Process
•
Improvement
8. Process control and optimization.
• This includes a wide range of control schemes
intended to operate the individual processes
and associated equipment more efficiently.
• By this strategy, the individual process times
can be reduced and product quality can be
improved

60
 Ten Strategies for
Automation and Process
•
Improvement
9. Plant operations control.
• This strategy is concerned with control at the
plant level.
• It attempts to manage and coordinate the
aggregate operations in the plant more efficiently.
• Its implementation involves a high level of
computer networking within the factory.
• Ex: Manufacturing Execution System (MES)-to manage
production schedules, machine statuses, and inventory
levels.
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 Ten Strategies for
Automation and Process
•
Improvement
10. Computer-integrated manufacturing
(CIM).
• Taking the previous strategy one level higher,
CIM involves extensive use of computer
systems, databases, and networks throughout
the enterprise to integrate the factory
operations and business functions.

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63
 BASIC ELEMENT OF AN
AUTOMATED SYSTEM…cont.
• Some actuators can only be on
and off. Other actuators respond
proportionally with the signal
they receive from a controller
• Actuators can be selected for the
types of inputs they require,
either DC or AC.

64
 BASIC ELEMENT OF AN
AUTOMATED SYSTEM…cont.
2)The controller (which ‘tells’ the
actuator to do work)
• A controlled system either
may be a simple digital
system or an analog system.
• Digital and analog
controllers are available ‘off
the shelf’ so that systems can
be constructed inexpensive
and with little specialized
knowledge required.
65
 BASIC ELEMENT OF AN
AUTOMATED SYSTEM…cont.
3) The sensor (which provides feedback to the
controller so that it knows the actuator is doing
work)

• Obviously, controlled
automation requires devices to
sense system output.
• Sensors also can be used so that
a controller can detect and
respond to changing conditions
in its working environment.

66
 BASIC ELEMENT OF AN
AUTOMATED SYSTEM…cont.
• Switches and transducers are
another name for sensors.
• Switches can detect when a
measured condition exceeds a pre-
set level. Examples, closes when a
work-piece is close enough to work
on.
• Transducers can describe a
measured condition. Examples,
output increased voltage as a
work-piece approaches the
working zone. 67
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Relationship between product variety
& quantity

Low

Medium

High
100 10000 1,000,000
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Relationship of fixed, programmable and
flexible automation

70
REASON FOR AUTOMATING

• To increase labor productivity

• To reduce labor cost
• To improve worker safety
• To improve product quality
• To mitigate the effects of labor shortages
• To reduce/eliminate routine manual &
clerical tasks.

71
 REASON FOR AUTOMATING…
cont.

• To reduce mfg lead time

• To accomplish processes that cannot be done
manually
• To avoid the high cost of not automating

72
 MANUAL LABOR IN PROD.
SYSTEM

There are situations which manual labor

is usually preferred over automation:
• Task is too technologically difficult to
automate.
• Short product life cycle
• Customized product
• To cope with ups and downs in demand
• To reduce risk of product failure
73
 PRINCIPLES AND STRATEGIES

American Prod. And Inventory Control

Society(APICS) gives three principles:
• Understand the existing process
• Simplify the process
• Automate the process
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STRATEGIES FOR AUTO./PROD SYSTEM

• Specialization of operation
• Combined operations
• Simultaneous operations
• Integration operations
• Increased flexibility
• Improved material handling and storage
• On-line inspection
75
 STRATEGIES FOR AUTO./PROD
SYSTEM… cont.
• Improved material handling and storage
• On-line inspection
• Process control and optimization
• Plant operations control
• Computer-integrated manufacturing

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 AUTOMATION CONTROL

• Usually implies a sequence of

mechanical steps.
• A camshaft is an automation controller
because it mechanically sequences the
steps in the operation of an internal
combustion engine.

77
 AUTOMATION CONTROL… cont.

• Manufacturing processes are often

sequenced by special digital
computers, known as programmable
logic controller (PLC).
• PLC can detect and can switch
electrical signals on and off.

78
 PROCESS CONTROL

• Usually implies that the product is

produced in a continuous stream.
• Often, it is a liquid that is being
processed.
• Early process control system consisted
of specially-designed analog circuitry
that measured a system’s output ( e.g.,
the temperature of liquid leaving a
tank),
79
 PROCESS CONTROL… cont.

and changed that input ( e.g.,

changing the amount of cool liquid
mixed in) to force the output to stay
at a preset value.
• Now, process control is accomplished
using digital computers.

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 MANUFACTURING

Manufacturing – the application of

physical and chemical processes to
alter the geometry, properties and
/or appearance of a given starting
material to make parts/product
- includes the joining of multiple
parts to make assembled products

81
 MANUFACTURING… cont.

• Economic viewpoint- the

transformation of material into items of
greater value…
• Eg: iron converted into steel, sand
transformed into glass, petroleum
transforms into plastic etc.

82
 MANUFACTURING… cont.
Machinery
Tools
Power
Labor

Starting Complete part

Mfg. Process
Material

Waste
As a technological process

83
 MANUFACTURING… cont.

Mfg. Process

•
•
• Value Added
• Starting material complete
part

• Material in Processing

• As an Economic process
84
 MANUFACTURING… cont.

• Basic activities to convert raw material

into finished products:
i. Processing and assembly operations
ii. Material handling
iii. Inspection and test
iv. Coordination and control

85
 Processing and assembly
operations

• Processing operation transform a work

material from one state of completion to
a more advanced state that is closer to
the final desired part/product. materials
is fed into the process, energy is apply by
the machinery and tooling to transform
the material into finished products.
• Assembly operations – two or more
components combined to form a new
entity eg: welding, soldering, screws,
rivets etc.
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 Material handling & storage

• Moving and storing materials between

processing and/or assembly operations.

Inspection and test

• Both are quality control activities to
determine whether products meet the
design std. and spec.

87
 Coordination and control

• includes at process and plant levels

• Process level – manipulating input and
parameters of the process.
• Plants level – labor, maintenance,
costing, shipping, scheduling etc.

88
 PRODUCT/PRODUCTION
RELATIONSHIPS

• 4 keys parameters:
i. Quality
ii. Variety
iii. Complexity of assembled
products
iv. Complexity of individual parts.

89
 Quantity and variety

Consider: Q= prod. Quantity, P=prod.

Variety
: Qj=annual quantity of prod j
: Qf= total quantity of all part

p
Qf = Qj, where P = total no. of diff.
j=1 part, j = 1,2,3,
…

90
 Product and Part complexity

• Complexity refer to the no.of

components used to produce a product-
the mere parts, the more complex.
• Let, np = the no. of part per product
no = the no. of operation/pros. Steps

The total no. of parts manufactured/year:

npf=total no.of part/yr
p
npf = Qjnpj Qj = annual quantity/yr
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n = no. of parts/prod
Product and Part complexity… cont.

• The total no. of processing operations performed in

the plant:
p npj
nof = Qjnpj nojk
j=1 k=1

Where; nof= total no. ofoperation cycles

nojk= no of processing operation for each part k
npj = no.of parts in product
92
Product and Part complexity… cont.

Conceptualize:
Consider P = no. of product design
Q = quantities
So, the total no. of product produced,
Qf = PQ
the total no. of parts produced,
npf = PQnp
the total no. of mfg operation performed,
nof = PQnpno
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 Example

P=100 different product, each product

produced 10,000 unit/yr, each consist of 1000
components, average processing
step=10/component, each processing
step=1min. Determine:
- how many product
- how many part
- how many prod. operation
- how many workers needed

94
 Solution

i. Total no. of unit produced, Qf = PQ

100 x 10,000 = 1,000,000 prod./yr
ii. Total no of part produced = npf = PQnp 1.000.000 x
1000 = 1,000,000,000 parts/yr
iii. Prod. operation = nof =PQnpno
iv. Total time = 1,000,000,000 x 1/60=166,666,667 hr
v. Workers= 1666,6666,661/2000=83,333 workers

95
 Production rate

• Normally expressed as an hourly rate.

• Also called operation cycle time, Tc.
Tc is defined as the time that one work unit
spends being processed/assembled.
Tc = To + Th + Tth
where Tc = operation cycle time (min/pc)
To = time of actual processing/assemb.
Th = handling time (min/pc)
Tth= tool handling time(min/pc)

96
 Production capacity

• Is defined as the max. rate of o.p that the

production facilities is able to produce
under a given set of assumed operation
cond.( num. of shift/day).
• Let PC = prod. Capacity, n = num. of m/c
Rp = prod. Rate, H = hr/shift, S =num. of
shift/week.
PC = n SH Rp

97
 Production capacity… cont.

• If no = num. of distinct operation through which work

units are routed.

PC = n SH Rp / no
• To increase/decrease prod. Capacity:
i. Short term:
 changes of S and H will increase prod. Capacity
ii. Long term
 to increase capacity, change n, increase R p and reduce
no.

98
 MANUFACTURING OPERATION
COSTS

• Mfg costs – fixed and variable costs.

• Fixed costs-remains constant for any
level of prod.
• Variable costs-varies in proportion to
the level of prod.
• Let TC = total annual costs (RM/yr),
FC = fixed annual costs (RM/yr),
VC= variable costs (RM/pc) and Q =
annual quantity produced (pc/yr).
99
MANUFACTURING OPERATION
COSTS… cont.

TC = FC + VC(Q)

10
0
 MANUFACTURING OPERATION
COSTS… cont.
• Costs also depend on labor, materials and
overhead.
• Labor costs- paid to workers
• Materials costs- cost of raw materials to
produce product.
• Overhead costs- factory and corporate over
head
- factory over head to operate the factory
- corporate over head to run the factory

10
1
MANUFACTURING OPERATION
COSTS… cont.

10
2
MANUFACTURING OPERATION
COSTS… cont.

10
3
 MANUFACTURING OPERATION COSTS…
cont.

• J.T Black.

10
4
MANUFACTURING OPERATION COSTS…
cont.

• Overhead rate (burden) to be calculated

and to used in the following year to allocate
overhead costs.
FOHR = FOHC / DLC
Where FOHR = factory overhead rate
FOHC = annual factory overhead

costs
DLC = annual direct labor costs

10
5
 MANUFACTURING OPERATION
COSTS… cont.

• Corporate overheat rate,

COHR = COHC /DLC
where COHR = annual corporate
overhead rate,
COHC = annual corporate
overhead costs, DLC = annual direct
labor costs
DLC = annual direct labor costs
10
6
 MANUFACTURING OPERATION
COSTS… cont.

• Eg:

determine a) FOHR for each plant

b) COHR
10
7
 MANUFACTURING OPERATION COSTS…
cont.

Solution:
a) FOHR1 = 2,000 / 800,000 = 250%
FOHR2 = 1,100,000 / 400,000 = 275%

b) COHR = 72,000 / 1,200,000 = 600%

10
8
 Limitations and
Capabilities of a
Manufacturing Plant
• (1) Technological processing capability
• (2) Physical size and weight of product
• (3) Production capacity

10
9
 PRODUCTION CONCEPTS AND
MATHEMATICAL MODELS

• Production concepts are quantitative

• The purpose of this section is to define some of
these concepts.
• The models developed in this section are ideal.
• For example, our models do not include the effect
of scrap rates.
• In some manufacturing operations, the
percentage of scrap produced is high enough to
adversely affect production rate, plant capacity,
and product costs
11
0
 Production Concepts
 Production rate Rp
 Production capacity PC
 Utilization U
 Availability A
 Manufacturing lead time
MLT
 Work-in-progress WIP

11
1
 Operation Cycle time

• Operation cycle time Tc is defined as the

time that one work unit spends being
processed or assembled.
• Typical cycle time for a production
operation:
• Tc = To + Th + Tth
• where Tc = cycle time, To = processing
time for the operation, Th = handling time
11
(e.g., loading and unloading the 2

production machine), and Tth = tool

 Production rate

Batch production: batch time Tb = Tsu + QTc

Average production time per work unit Tp
= Tb/Q Production rate Rp = 1/Tp
Job shop production:
For Q = 1, Tp = Tsu + Tc
For quantity high production:
Rp = Rc = 60/Tp since Tsu/Q  0
11
3
 Production Capacity
Plant capacity for facility in which parts are
made in one operation (no = 1):
PCw = n Sw Hs Rp
where PCw = weekly plant capacity, units/wk
Plant capacity for facility in which parts
require multiple operations (no > 1):

PCw = nSw HsRp

no
where no = number of operations in the
routing
 Utilization and
QAvailability
Utilization: U
PC
=
where Q = quantity actually produced, and PC
= plant capacity
MTBF  MTTR
Availability: A
= MTBF
where MTBF = mean time between
failures, and
MTTR = mean time to repair

©2008 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. This material is protected under all copyright laws as they currently exist.
No portion of this material may be reproduced, in any form or by any means, without permission in writing from the publisher. For the exclusive use of
adopters of the book
Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover.
 Availability -
MTBF and MTTR Defined

©2008 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. This material is protected under all copyright laws as they currently exist.
No portion of this material may be reproduced, in any form or by any means, without permission in writing from the publisher. For the exclusive use of
adopters of the book
Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover.
 Manufacturing Lead Time
(Batch)

MLT = no (Tsu + QTc + Tno)

where MLT = manufacturing lead time, no =

number of operations, Tsu = setup time, Q =
batch quantity, Tc cycle time per part, and
Tno = non-operation time

©2008 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. This material is protected under all copyright laws as they currently exist.
No portion of this material may be reproduced, in any form or by any means, without permission in writing from the publisher. For the exclusive use of
adopters of the book
Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover.
 Work-In-Process
WIP AU  PC MLT 
=
Sw Hsh
where WIP = work-in-process, pc;
A = availability,
U = utilization,
PC = plant capacity, pc/wk;
MLT = manufacturing lead time, hr;
Sw = shifts per week,
Hsh = hours per shift, hr/shift

©2008 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. This material is protected under all copyright laws as they currently exist.
No portion of this material may be reproduced, in any form or by any means, without permission in writing from the publisher. For the exclusive use of
adopters of the book
Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover.
 Costs of Manufacturing
Operations
 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, taxes), VC = variable
costs (e.g., labor, materials, utilities), Q =
©2008 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. This material is protected under all copyright laws as they currently exist.

output level.
No portion of this material may be reproduced, in any form or by any means, without permission in writing from the publisher. For the exclusive use of
adopters of the book
Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover.
 Fixed and Variable Costs

©2008 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. This material is protected under all copyright laws as they currently exist.
No portion of this material may be reproduced, in any form or by any means, without permission in writing from the publisher. For the exclusive use of
adopters of the book
Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover.
 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
©2008 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. This material is protected under all copyright laws as they currently exist.
No portion of this material may be reproduced, in any form or by any means, without permission in writing from the publisher. For the exclusive use of
adopters of the book
Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover.
 Typical Manufacturing
Costs

©2008 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. This material is protected under all copyright laws as they currently exist.
No portion of this material may be reproduced, in any form or by any means, without permission in writing from the publisher. For the exclusive use of
adopters of the book
Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover.
 Overhead Rates

• Overhead rate (burden) to be calculated

and to used in the following year to allocate
overhead costs.
FOHR = FOHC / DLC
Where FOHR = factory overhead rate
FOHC = annual factory overhead

costs
DLC = annual direct labor costs

12
3
 MANUFACTURING OPERATION
COSTS… cont.

• Corporate overheat rate,

COHR = COHC /DLC
where COHR = annual corporate
overhead rate,
COHC = annual corporate
overhead costs, DLC = annual direct
labor costs
DLC = annual direct labor costs
12
4
 MANUFACTURING OPERATION
COSTS… cont.

• Eg:

determine a) FOHR for each plant

b) COHR
12
5
 MANUFACTURING OPERATION COSTS…
cont.

Solution:
a) FOHR1 = 2,000 / 800,000 = 250%
FOHR2 = 1,100,000 / 400,000 = 275%

b) COHR = 72,000 / 1,200,000 = 600%

12
6
12
7