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Computer Integrated Manufacturing


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Title: Computer Integrated Manufacturing

PowerPoint Slides for Advanced Manufacturing
Computer Integrated Manufacturing
Computer Numerical Control
Design and Quality Control
Computer Control and Automation
Lasers and Sensors
Commonwealth of Virginia Department of
Education Office of Career and Technical
Education Services
Slide Index
Beginning Slide for Each Concept/Duty Area
What Is Advanced Manufacturing Systems? DTE8427.00
1 Basic CIM Functions DTE8427.006 Typical Team
Briefing Agenda DTE8427.009 Early Industrial
Development DTE8427.014 What Is
Economics? DTE8427.017 Planning for Production
Business Plan DTE8427.023 Engineering, Business,
Manufacturing DTE8427.028 Cause-and-Effect
Chart DTE8427.031 What Is the Supply
Chain? DTE8427.036 What Is Green
Engineering? DTE8427.042 Manufacturing
Careers DTE8427.047
Task/Competency DTE8427.001
What Is Advanced Manufacturing Systems?
  • Advanced Manufacturing Systems refers to a
    manufacturing environment committed to
    excellence, product quality, and customer
  • Advanced Manufacturing Systems combines the study
    of business concepts and technical applications
    as they relate to the manufacturing environment.

Task/Competency DTE8427.001
The Primary Characteristic of Advanced
Manufacturing Systems
The ability to add value through the integration
of technology into products and processes
  • Research suggests that about a quarter of all
    manufacturing fits this definition of advanced
  • CIT, 1997

Task/Competency DTE8427.001
Additional Characteristics of Advanced
Manufacturing Systems
  • Generates good jobs
  • Acts as an economic catalyst
  • Is an integral part of a technology-driven
  • Generates wealth
  • Anchors regional economics
  • Demands excellence

CIT, 1997
Task/Competency DTE8427.001
Six Characteristics of Advanced Manufacturing
  • Quality is the number one priority.
  • Customers are the focus of everything the company
  • Continuous improvement is a companys most
    formidable competitive weapon.
  • Employee participation is a way of life.
  • Suppliers, distributors, and the surrounding
    community are partners.
  • Integrity is never compromised.

Task/Competency DTE8427.001
? 2000
Task/Competency DTE8427.001
Source NAM/Fortune Manufacturing Index ? 2000
Task/Competency DTE8427.003
Manufacturing in Virginia
  • Manufacturing employment declined between 1991
    and 1996, with preliminary figures for 1996 at
    about 398,500down from 412,000 in 1991.
  • Virginias manufacturing base is diverse, with
    heavy reliance on defense and traditional
    industries such as apparel, textiles, and
  • Virginias manufacturing promise is in
    information age electronics.

CIT, 1997 Source Grant Thornton, Society of
Manufacturing Engineers, 1999.
Task/Competency DTE8427.003
A Typical Virginia Manufacturer
  • More than 90 of Virginia manufacturers employ
    fewer than 250 workers, which earns the
    classification of small business.
  • Almost all of these manufacturers fabricate
    discrete parts, ranging from simple
    consumer-oriented products to the more
    sophisticated computer-based machinery.
  • Manufacture of this type of product is much more
    prevalent than continuous manufacturing, which
    produces commodities such as petrochemicals,
    flour, and steel. For that reason, the focus will
    be on the needs of small- to medium-sized
    manufacturers of discrete parts.
  • CIT, 1997

Task/Competency DTE8427.003
Hierarchical Organization
Distribution Manager
Advertising Director
Task/Competency DTE8427.003
Dynamic Organization
Human Resources
Task/Competency DTE8427.006
Basic CIM Functions
  • Product design
  • Process planning, scheduling, and control
  • Dynamic simulation of FMS
  • Equipment selection
  • Quality assurance
  • Facility layout

Task/Competency DTE8427.006
Computer Integrated Manufacturing (CIM)
Task/Competency DTE8427.009
Typical Team Briefing Agenda
1. Outline of major items to be presented 2. Key
top-down information The key messages and
information being communicated from top
management down to every employee (according to
chief executive's current standard briefing
requirements) 3. Questions 4. Information on
and overview of the organization's current
performance and activities, e.g., recent
statistics, new programs and activities, staff
news, (based on wider sources of information,
e.g., briefings of divisional heads) 5. Questions
Task/Competency DTE8427.009
Typical Team Briefing Agenda, continued
6. Information specific to the particular team
from team leader/briefer detailed look at past
month, including performance/achievement and
other indicators, new initiatives, forthcoming
activities and work program, organizational
changes 7. Questions 8. Personnel issues usually
initiated by central human resources/personnel
unit changes in arrangements or conditions,
information on national and organization's
negotiations of pay and conditions, industrial
relations information, new procedures, welfare
issues 9. Questions 10. Miscellaneous, e.g.,
congratulations on team member successes in
professional or voluntary work, private life, and
other items
Task/Competency DTE8427.009
A Successful Team Player
  • Shares responsibilities of the entire group
  • Shares information with others
  • Listens while others are speaking
  • Respects others opinions
  • Compromises to resolve conflicts
  • Contributes ideas to brainstorming
  • Contributes a fair share of work and uses group
    time effectively
  • Encourages and motivates others
  • Follows written and verbal instructions
  • Follows group norms and rules

Task/Competency DTE8427.009
A conference technique by which a group attempts
to find a solution for a specific problem by
amassing all the ideas spontaneously contributed
by its members
Task/Competency DTE8427.009
Brainstorming Strategy
  • Generate ideas.
  • Record ideas.
  • Eliminate weak ideas.
  • Arrange remaining ideas in logical order.
  • Transfer ideas to finding a solution.

Task/Competency DTE8427.009
Fishbone Technique Topic Web
Brainstorming Tools
Task/Competency DTE8427.010
Executive Summaries
These are short reports that are meant to convey
the essential points of an issue. Key parts are
  • Background information to help reader understand
    the problem or issue
  • Main conclusions of the problem or issue
  • Recommendations you wish to make about the
    problem or issue

Task/Competency DTE8427.010
Seven Steps to an Executive Summary
1. Read the entire article or document. 2.
Underline, circle, or highlight the main ideas
and information that support the main ideas. 3.
List the main ideas. 4. Add supporting
information to each main idea. 5. Link your main
ideas together. 6. Read the summary again. 7.
Look at the final summary.
Task/Competency DTE8427.010
Presentation Skills
  • Know your audience.
  • Familiarize yourself with the environment for
    your presentation.
  • Demonstrate good people skills to achieve a
    positive first impression.
  • Prepare your message.
  • Be prepared to answer questions.
  • Evaluate your presentation.

Task/Competency DTE8427.011
What Is Workplace Communication?
  • Workplace communication involves the entire
    workplaceamong managers, supervisors, workers,
    union representatives, and customers. Both the
    workforce and the company benefit from effective
    workplace communication.
  • Workplace communication is central to changes
    that are being made in the workplace and is at
    the core of improved quality and productivity. If
    you review the list below of key concepts that
    are commonly connected with restructuring, and
    consider how these might be achieved in practice,
    you begin to realize the important role
    communication plays in the workplace.

Task/Competency DTE8427.011
Key Concepts Used to Describe the New Workplace
  • Working in teams
  • Demonstrating collaborative quality management
  • Using multi-skills
  • Taking up the challenge of new technologies
  • Participating in industrial relations
  • Engaging in new ways of learningboth on-the-job
    and/or off-the-job

Task/Competency DTE8427.011
Downward Communication
Important in ensuring that decisions taken by
senior management result in consistent action by
employee, and also aims to build greater
commitment and improvement in standards of
  • Traditional hierarchical communication written
    and verbal instructions move downward from the
    boss to groups, and to the employee
  • Formalized employee participation rights
  • General staff information by means of notices,
    staff bulletins, newspapers, annual reports,
    training programs (this now includes radio,
    video, and computer bulletin board systems)
  • Building company spirit and loyalty
    family-friendly policies, health/wellness center,
    and recreational opportunities

Task/Competency DTE8427.011
Downward Communication, continued
  • Informal cascade systemsthe grapevine
  • Formal cascade systems, e.g., group meetings,
    information, and team-building conferences and
  • Team briefings
  • Managers walking the job checking on
    effectiveness of communication and penetration
    of essential information
  • Total Quality Management systems

Task/Competency DTE8427.011
Upward Communication
Important in helping management to understand and
be alert to employee concerns and problems,
provides information necessary for good
decision-making, and improves motivation
  • Staff suggestion and complaints procedures
  • Formalized employee participation rights
  • Staff attitude surveys
  • Staff meetings, either direct or through trade
    union structure
  • Managers walking the job informal discussions
    with workers
  • Quality circles of work teams

Task/Competency DTE8427.011
Effective Communication Techniques
  • Situation
  • Communication between management and employees
    related to work matters
  • Communication in meetings
  • Information on technical procedures
  • Training
  • Communication to clients and customers
  • Types of Written Document
  • Notices, memos, policy documents, forms, reports
  • Minutes, agendas
  • Instructions, standard operating procedures,
    technical reports
  • Manuals, notices, tests
  • Letters, notices, forms

related to work matters
Notices, memos, policy
documents, forms, reports
Communication in meetings
Minutes, agendas
Information on technical
Instructions, standard operating
procedures, technical reports
Manuals, notices, tests
Communication to clients and
Letters, notices, forms
Task/Competency DTE8427.011
Who Is Responsible for Identifying and Developing
Plans and Strategies for Meeting Workplace
Communication Needs?
  • Managers and employees are responsible for
    identifying workplace communication needs and
    developing workplace- and industry-specific plans
    and strategies to improve communication.
  • Organizations often use consultative committees
    to coordinate the tasks. Effective consultative
    committees are comprised of management, union
    representatives, and employees, working in
    cooperation to achieve common objectives.
  • If a consultative committee has not been
    established in your workplace, consider forming a
    committee to examine workplace communication.

Task/Competency DTE8427.011
How Do You Identify Workplace Communication
The main purpose of the consultative committee is
to determine how oral and written information is
communicated and if it is effective for everyone.
Task/Competency DTE8427.011
Breakdowns in Workplace Communication
  • Breakdowns refer to problems with language and
    literacy skills or to the way information is
    constructed and disseminated. For example, poorly
    written instructions are unlikely to be followed.
  • Communication must be assessed for clarity and
  • Identifying employees who need to improve their
    language and literacy skills is the first step to

Task/Competency DTE8427.011
Four-Step Process Step 1 What types of written
communication are used?
Collect samples of written communication that the
workforce is expected to read, write, and act on.
Examples include
Workplace handbooks Equipment manuals
Memos Workplace forms Instructions
Quality reports Meeting agendas, minutes,
and Customer service reports reports (for
example, from Warning and safety
signs management, quality, shift, and safety
Task/Competency DTE8427.011
Step 2 How effective are these communications?
  • Examine examples of workplace handbooks, manuals,
    shift reports, workplace forms, safety signs, and
    job sheets.
  • Ask for suggestions, from those who are using the
    written communication, about ways to improve
  • Is the purpose of the communication evident?
  • Does the communication clearly tell you what to
    do and how to do it?
  • Does the document tell you what you need to know
    and what is expected of you?
  • Are abbreviations and acronyms defined in the
  • Do you understand the technical words/terms?

Task/Competency DTE8427.011
Step 3 What are some ways to communicate orally?
  • Informal networks
  • Formal meetings

Task/Competency DTE8427.011
Step 4 Can workers participate fully in all
areas of spoken and written communication?
  • When the kinds of communication that occur in
    your workplace have been identified, find out if
    the employees can use the information to do their
    jobs effectively.

Note Seeking guidance from language/education
experts may be necessary.
Task/Competency DTE8427.011
Workplace Communication Is Effective and
Meeting Information 1. Meetings are used to
exchange information and to make decisions. One
way to check the effectiveness of meetings is to
examine agendas, minutes, and reports from a
variety of meetings. Use this checklist as a
  • Do all meetings have agendas?
  • Does the meeting agenda have start and finish
  • Does the agenda list meeting topics?
  • Are minutes produced after each meeting?
  • Do the minutes include actions to be taken as a
    result of the meeting?

Task/Competency DTE8427.011
Meeting Information, continued
2. Ask people who have attended a range of
meetings to assess them. Use these questions as a
  • How useful are meetings to you in performing your
  • In what ways are they useful?
  • How can meetings be improved?
  • Are meetings your preferred source of
    information? (If not, what is your preferred
  • Do you receive sufficient notice of meetings?
  • Do meeting agendas let you know clearly what is
    expected of you at meetings?
  • Are you given the opportunity to have input at

Task/Competency DTE8427.011
Ask the Workforce.
Ask a number of people in the workplace how well
they understand what to do at work and how to do
it, especially with regard to safety
requirements, meetings, and company training
sessions. Use these questions as a guide
  • Do you understand the instructions about your job
    from your supervisor?
  • Do you think your managers understand you when
    you give them information?
  • Can you read the machine manual?
  • Can you read the instructions on the job sheet?
  • Can you answer the questions your supervisor asks
    about your job?
  • Do you rely on someone else to talk for you?

Task/Competency DTE8427.011
Ask the Workforce., continued
  • Can you read and understand safety signs in your
  • Can you fill in the accident report form?
  • Do you rely on someone else to fill in workplace
    forms for you?
  • Do you understand discussions at safety meetings?
  • Can you follow written materials given out in
    training sessions?
  • Can you understand a trainer's spoken
  • How do you find out about changes in the
  • How would you like to find out about changes in
    the workplace?
  • Do your customers tell you that they don't
    understand your workplace documents (letters,
    notices, instructions, delivery notes)?

Task/Competency DTE8427.011
What Do You Do Next to Implement Improvements in
Workplace Communication? What Are Your
Decisions can be made after meeting information,
workplace communications, and feedback have been
examined. You may find that the only problem in
your workplace is that meeting agendas are
distributed too late for participants to prepare
for meetings. This is an easy problem to solve.
Task/Competency DTE8427.011
What Do You Do Next to Implement Improvements in
Workplace Communication? What Are Your
Priorities?, continued
More likely, the committee will determine that
meeting minutes, workplace forms, shift reports,
oral instructions, and workplace training manuals
are not understood. This may be due to poor
writing or inadequate reading skills. Some
workers may have non-English speaking backgrounds
or may be poorly educated.
Task/Competency DTE8427.011
Where to Start
To respond to this, the committee needs to ask
the following
  • What are the priorities for improvement?
  • What results do you want?
  • What changes need to be made to achieve these
  • How will these results help the business
    accomplish its objectives?
  • How will these results help the business carry
    out its strategies?
  • What is it costing us not to make any
    improvements to workplace communication?

Task/Competency DTE8427.011
Where to Start, continued
The answers to these questions can lead to
information relevant to a Project Brief.
Following are some operational questions to ask.
  • How much time can we spend on improving workplace
  • Is training required?
  • Who needs to be trained?
  • What sort of training is required?
  • What are the implications for managers and
  • What needs to be done to support those being
  • How much will it cost?
  • How much money can we spend?
  • Is government funding available, and is there
    anyone else with whom we should discuss this?
  • What are the processes and procedures in the
    workplace for policy approval and implementation?

Task/Competency DTE8427.011
Where to Start, continued
  • Who will make the decisions?
  • How will we know when we have achieved the result
    we want?
  • What are the likely costs in
  • Staff time
  • Time away from existing duties
  • Staff travel
  • Printing
  • Postage/telephone/fax
  • Internal copying
  • Production costs
  • Consultant costs
  • Training costs

Task/Competency DTE8427.014
Early Industrial Development
  • Abraham Darby smelts coal in England to start
    Industrial Revolution.
  • The Industrial Revolution spreads through Europe
    and to America through immigration.
  • The Industrial Revolution is based on cottage
    industry, which consists of home-based
  • The first successful American factory is a
    cotton-spinning mill in 1790.

Task/Competency DTE8427.014
Industrial Revolution to 1900
  • Duryea brothers begin producing gasoline-powered
  • Eastern Kodak is founded.
  • Scientific studies and inventions are applied to
    change production processes for textiles and
  • Milling of grain and its subsidiary products
    become the largest manufacturing industry.
  • Vast quantities of natural resources are
    available for manufacturing.
  • Capital available for investment industry
    increases, making abundant resources and low
    interest rates, which encourages manufacturing
    companies to invest in machinery and expansion.
  • Increases in technology enable companies to
    manufacture products more efficiently, implement
    major changes, and develop new inventions.

Task/Competency DTE8427.014
Manufacturing 1900 to 1950
  • President Roosevelt, working with U.S.
    manufacturers, pursues improvements in naval
  • Henry Ford founds the Ford Motor Company.
  • American companies become world leaders in
  • A strong internal waterway system reduces
    transportation costs and increases the level of
    operational efficiency.
  • Operational efficiency level of outputs
    produced exceed the level of inputs required in
    the production process.

Task/Competency DTE8427.014
Manufacturing Innovation and Experimentation
  • World War I leads to U.S. manufacturing
  • The invention of the airplane saves time, labor,
    and distribution costs, allowing companies to
    become more productive and efficient.
  • Electricity offers a cheap source of energy for
    powering production facilities and distribution
    centers, reducing costs, providing more money to
    go toward research and development.
  • The invention of the assembly line by Ford allows
    larger quantities to be produced at lower costs.
    Ford also increases wages to build loyalty and
    increase his consumer market.

Task/Competency DTE8427.014
The Labor Force and the Workers Rights
  • Davis Bacon Act determines wage rates and fringe
    benefits and establishes the standard 8-hour
  • Social Security Act of 1935 establishes
    retirement benefits, disability benefits, old
    age, and survivors insurance.
  • The Fair Labor Standards Act of 1938 defines
    minimum wage, maximum hours, overtime
    compensation, and restrictions on child labor.

Task/Competency DTE8427.014
Advanced Manufacturing 1950 to Present
  • Space race produces greatest period of U.S.
    manufacturing and technology transfer.
  • The market share held by the U.S. manufacturing
    companies begins to decline.
  • The major energy crisis in the 1970s causes
    higher production costs for manufacturers and
    higher gasoline prices for consumers, which leads
    to a decline in U.S. manufacturing.
  • Americans start buying foreign products,
    therefore causing many American companies to go

Task/Competency DTE8427.014
Advanced Manufacturing 1950 to Present, continued
  • The economic recession in 1982 puts additional
    pressure on U.S. manufacturers. High unemployment
    rates mean that people are not working and have
    less money to spend. This further decreases the
    profits of American companies.
  • U.S. manufacturing companies begin to reassess
    their production and distribution methods as well
    as research and development. Many begin to enter
    into joint ventures with foreign producers.
  • Today, U.S. manufacturers continue to seek
    changes that allow them to produce and distribute
    high-quality profits in the most efficient way.

Task/Competency DTE8427.017
What Is Economics?
  • A social science that studies the production,
    distribution, and consumption of commodities
  • The study of how societies make decisions about
    the use of their resources for the production of
    goods and services

Task/Competency DTE8427.017
Two Branches of Economics
  • Macroeconomics
  • Microeconomics

Task/Competency DTE8427.017
  • Is concerned with the study of the market system
    on a small scale
  • Considers individual markets that make up the
    market system and is concerned with the choices
    made by small economic unitsindividuals,
    consumers, firms, or governments

Task/Competency DTE8427.017
  • Is concerned with the study of the market system
    on a large scale
  • Considers the aggregate performance of all
    markets in the market system and is concerned
    with the choices made by the large subsectors of
    the economythe household, business, and

Task/Competency DTE8427.017
Economic Policy
A course of action that is intended to influence
or control the behavior of the economy
Task/Competency DTE8427.017
Goals of Economic Policy
  • Economic growth
  • Economic growth means that the incomes of all
    consumers and firms (after accounting for
    inflation) are increasing over time.
  • Full employment
  • The goal of full employment is that every
    member of the labor force who wants to work is
    able to find work.
  • Price stability
  • The goal of price stability is to prevent
    increases in the general price level known as
    inflation, as well as decreases in the general
    price level known as deflation.

Task/Competency DTE8427.017
The Market Economy
  • This is the total of all markets.
  • Allocation of decisions is made through price
    signals emanating from interaction of supply and
  • Majority of economic decisions are made according
    to market forces rather than tradition or

Task/Competency DTE8427.017
Non-Market Alternatives
  • Command Economy
  • Most important decisions are made by government
    and imposed by force or law.
  • Traditional
  • Household markets make up this economy.
  • Mixed Economy
  • This has features of public/private and
    command/market economies.

Task/Competency DTE8427.018
Economic Systems
  • Traditional Economy has no formal system and
    usually consists of barter systems and sharing.
  • Pure Market Economy has no authoritative figure.
    Everyone must be consumer or supplier prices
    play a central role.
  • Command Economy is total control by the
  • Mixed Economy is when consumers, suppliers, and
    the government all play a crucial role in
    answering what, how, and for whom.

Task/Competency DTE8427.018
Nature of the Economic System
  • Efficiency
  • (allocated
  • w/o waste)
  • vs.
  • Equity
  • (distribution
  • of wealth)
  • Shelter
  • Food
  • Work
  • Health
  • Inputs
  • Factors of Production
  • Labor
  • Land
  • Materials
  • Equipment
  • Money
  • Scarce
  • resources

How to allocate? Public or private?
Task/Competency DTE8427.019
Four Basic Elements of a Market
  • A single group of like products or services
  • A good is a tangible thing consumers use.
  • A service is an intangible consumable that
    requires the interaction with buyers to provide
  • Interaction of buyers and sellers determines
    prices and quantities produced.
  • Buyers and sellers compete with one another.
  • There is capacity for exchange
  • money
  • information
  • goods and services distribution

Task/Competency DTE8427.019
What Is a Market?
  • A market is a homogenous group of goods or
    services, for which the quantities supplied and
    prices sold are determined by competition between
    buyers and sellers.
  • Markets require a capacity for exchange.

Task/Competency DTE8427.020
Supply and Demand
  • Supply is the behavior of producers of goods and
  • Demand is the behavior of buyers of goods and
  • Quantity Supplied is the amount of goods that a
    seller is willing to sell for a certain price
    during a certain amount of time.
  • Quantity Demanded is the amount of goods that
    buyers are willing to purchase at a certain price
    during a period of time.
  • Supply Curve shows the relationship between the
    quantity supplied and the price of a good.
  • Demand Curve shows the relationship between the
    quantity demanded and the price of a good.

Task/Competency DTE8427.020
Principles of Supply and Demand
  • Demand
  • How much of a good or service buyers want at
    different prices
  • Total quantity consumed

Task/Competency DTE8427.020
Principles of Supply and Demand
  • Supply
  • How much of a good or service sellers are willing
    to provide at different prices

Task/Competency DTE8427.020
Interaction Effects
Price and Quantity f (Elasticity, Substitute
Goods, and Complementary Goods)
Task/Competency DTE8427.020
Supply is constant and demand goes up, what
happens to price? It increases.
Task/Competency DTE8427.020
Demand falls and supply decreases, what happens
to price in the short term? Price will stay the
same or increase.
Task/Competency DTE8427.020
Demand goes up and supply is not constant, what
happens to supply and price?
  • Supply increases.
  • Price, in the short term, will increase, and in
    the long term could increase or decrease.

Task/Competency DTE8427.020
What Is Equilibrium?
Total Quantity Produced Total Quantity Consumed
Task/Competency DTE8427.020
What Is Elasticity?
  • It is how sensitive buyers and sellers are to
    changes in price to goods and services.
  • It is a function of
  • How critical the good or service is to our
  • Sensitivity to income
  • Availability of substitute good

Task/Competency DTE8427.020
What Is a Substitute Good?
  • A good that can be used in place of another good
  • Oil and natural gas
  • CDs and cassettes
  • Metro system and cars

Task/Competency DTE8427.020
What Are Complementary Goods?
  • Goods that rely on one another
  • CD player and CDs
  • Computer and software
  • Cameras and film

Task/Competency DTE8427.021
What Is Meant by Factors of Production?
Resources used to make goods and services
Task/Competency DTE8427.021
What Is Meant by Scarcity?
  • Resources are not infinite.
  • There is limited availability.
  • Some resources are more limited than others.

Task/Competency DTE8427.021
What Is Meant by Resource Allocation?
The process of distributing resources for the
production of goods and services
Task/Competency DTE8427.021
What Is Efficiency?
  • This is when resources are used without
    unnecessary waste, cost, or effort.
  • Since resources are limited, they should be used
    as the best allocation of resources.

Task/Competency DTE8427.021
What Is Equity?
  • Distribution of income, wealth
  • Equality of income distribution
  • Access to basic human needs that money
    buysshelter, food, health, work

Task/Competency DTE8427.021
What Exactly Do firms Do?
  • Produce goods and services
  • Compete (fighting for )
  • Try to maximize profits

Task/Competency DTE8427.021
What Is Competition?
  • Offensive and defensive pressures companies use
    to gain advantage
  • State of rivalry between multiple producers for
    the consumer's money

Task/Competency DTE8427.021
Examples of Competition
  • Performance
  • Quality
  • Price
  • Advertising
  • Marketing strategies
  • Service
  • Features of the product

Task/Competency DTE8427.021
Why Is Competition Good?
  • Efficiency
  • Production without unnecessary waste or effort
  • Increase of profit
  • Lowering of cost

Task/Competency DTE8427.021
Limits to Efficiency
  • Limits take into account externalities (those
    things for which we cannot place a price or
    value, e.g., environmental quality).
  • Efficiency works only under ideal conditions of
    perfect competition.

Task/Competency DTE8427.021
Product Differentiation
Differences in features that distinguish highly
similar goods and services
Task/Competency DTE8427.021
Socially Optimal Mix of Goods and Services
Limitwhat we can afford to buy
  • Consumer spending casts a vote for one product
    over another (e.g., buying a computer over a

Task/Competency DTE8427.021
Assumptions of Perfect Competition
  • No barriers to entry
  • Many suppliers
  • Homogenous products
  • Perfect information flow
  • No single supplier can affect the market

Task/Competency DTE8427.021
Imperfect Competition The Case of Monopoly
  • Monopolistic markets
  • Barriers to entry
  • One company controls one aspect of the production
    of a product.
  • Economy of scalethe more you produce, the lower
    the cost.
  • Monopolistic competition

Task/Competency DTE8427.021
What Is Profit Maximization?
Making the most profit you can
Task/Competency DTE8427.021
What Are Revenues?
  • Income, earnings
  • Price x Quantity Revenues

Task/Competency DTE8427.021
What Are Fixed Costs?
  • Costs of production that do not change with
    amount of products being produced
  • Items that must be paid regardless, such as rent
    of building, professional fees, permits, and

Task/Competency DTE8427.021
What Are Variable Costs?
Costs that change as production is increased or
decreased, such as materials, utilities, wages
Task/Competency DTE8427.021
Logic of Maximization
  • Profit Total Revenuestotal Variable Cost
  • Price x Quality? Quantity

Task/Competency DTE8427.021
Logic of Maximization
  • KeyHow much do I produce and at what cost?
  • You produce as many goods as you can, until you
    can no longer make a profit.
  • MP MC

Task/Competency DTE8427.023
Planning for Production Business Plan
Corporations overall goals defined in general
terms What share of the market do we
want? What is our profit goal?
Task/Competency DTE8427.023
Planning for Production Production Plan
A production plan is a long-term production
strategy that is subject to change in the future.
This includes a recommended annual production
quantity based on
  • The companys capacity for production
  • The companys sales plan for the year
  • Inventory data (including beginning inventory
    quantities and desired year-end quantities)

Task/Competency DTE8427.023
Planning for Production Production Plan,
A production plan defines a production rate that
  • Lead time amount of time required to get ready
    to produce the product
  • Queue time amount of time a product must stand
    in line to be produced
  • Backlogs other orders that have not been filled

Task/Competency DTE8427.023
Planning for Production Production Plan,
Production strategies that can be used at the
early stage of planning
  • Vary production rates according to changing
  • Keep production rates constant throughout the
  • Develop some compromise between the first two

Task/Competency DTE8427.024
Production Process
The operation of changing a material or product
into a different material or product, or changing
some type of raw material into a finished output
Task/Competency DTE8427.024
Production Processes Founding
Founding is the initial operation required to
convert raw materials into a basic, rough product.
  • Casting involves pouring a liquid material into a
    prepared mold and allowing the material to
    solidify into a desired shape.
  • Forging is a process used to shape metal by using
    impact or pressure.

Task/Competency DTE8427.024
Production Processes Machining
Machining is a variety of machines used to finish
the basic rough products.
  • Lathes are used to produce a cylindrical,
    conical, or spherical shape.
  • Milling machines create flat or slotted surfaces
    with a cylindrical, rotary cutter.

Task/Competency DTE8427.024
Production Processes Machining, continued
  • Drill presses are the most commonly used machine
    for removing metal.
  • Drilling is a process used to cut a cylindrical
    hole in an object.
  • Reaming is a process used to make an existing
    hole larger.
  • Tapping is a process used to cut threads in an
    existing hole.
  • Boring is a combination of milling and drilling
    to produce a long hole.

Task/Competency DTE8427.024
Production Processes Machining, continued
  • Broaching machines are used to smooth or plane
    the surface of an object.
  • Finishing machines are used to put a very smooth
    surface on objects.
  • Lapping works on the exterior surfaces.
  • Honing smoothes the interior surfaces.
  • Polishing puts a very fine finish on a piece of
  • Grinding smoothes surfaces or removes significant
    portions of material from a part.

Task/Competency DTE8427.024
Production Processes Manufacturing
Manufacturing consists of those operations used
to make components or a product.
  • Stamping involves the pressing of metal between
    two dies.
  • A die is a steel form that contains the shape of
    the desired part.
  • Plastic molding is a process used to make parts
    out of plastic.
  • Welding is a process of using heat to combine two
    or more metals.
  • Final assembly is when all of the components of a
    product are brought together to make a finished

Task/Competency DTE8427.025
Designing the Process
Three questions must be answered to design a
manufacturing process 1. How many people do we
need, and what should they do? 2. What equipment
do we need to do the job? 3. How should the
equipment and people be organized?
Task/Competency DTE8427.025
Three Basic Types of Process Organization
Special Projects are used to produce unique,
one-of-a-kind items such as highways, bridges, or
planes through a series of separate, carefully
planned activities. Advantages
  • One-of-a-kind items can be produced.
  • Quality can be controlled.
  • Costly automated equipment is not required.
  • This allows people to perform several different

  • There are higher labor costs.
  • High level-skills are required.

Task/Competency DTE8427.025
Job Shops
Job Shops produce customized products such as
furniture, clothing, or cabinets on general
purpose machinery.
  • Custom products can be produced.
  • Customer needs or changes can be quickly
  • Quality can be controlled.

  • Workers must be able to operate different types
    of equipment.
  • Labor costs are usually high.
  • Equipment may not be used efficiently.
  • Work-in-process inventories may be too high.

Task/Competency DTE8427.025
Batch Processes
Batch Processes are similar to job shops except
they produce larger volumes of fewer
products. Example electronics equipment, books,
musical instruments, and toys
Task/Competency DTE8427.025
Batch Processes, continued
  • Production capacity is higher than job shops.
  • Production costs are lower.
  • Expensive automation is not required.
  • Labor costs are lower.

  • Workers are less flexible than in job shops.
  • There is less control of quality than job shops.
  • Customer response time is longer.
  • Levels of work-in-process inventory are higher.
  • A work-flow diagram is used.
  • Bottlenecks are backlogs in a process.

Task/Competency DTE8427.025
Plant Organization
Term used to describe how people, equipment, and
process are organized to produce a product
Task/Competency DTE8427.025
Critical Path Method (CPM)
System used for planning project timelines
Task/Competency DTE8427.026
Flow Lines and Continuous Process
Flow lines and continuous process are used to
make high volumes of similar products.
Task/Competency DTE8427.026
Flow Lines
Flow Lines Materials are transported through the
plant on assembly lines or conveyor systems, and
the materials go through a series of different
operations required to make a finished
product. Examples automobiles, calculators, and
ball point pens
Task/Competency DTE8427.026
Continuous Process
Continuous Process Produces higher volumes of
product than flow lines. Example paper,
chemicals, and steel
  • High volumes at low unit costs can be produced.
  • Labor costs are lower.
  • Volume purchases result in lower material costs.
  • Work-in-process inventories are lower.

  • Customer/market changes cannot be responded to
  • There is a high cost of equipment and machinery.
  • Worker satisfaction is lower because of task
  • Controlling quality is more difficult.
  • There are high inventories of raw materials and
    finished goods.

Task/Competency DTE8427.026
Flow Lines and Clusters
Robotic clusters are used to organize the work.
Task/Competency DTE8427.026
Flow Lines and Work Cells
Flow Lines are used when only one product is
being made. Work Cells are used if more than one
product is being made each cell contains all the
different machines and people necessary to make
one product.
Task/Competency DTE8427.026
Flow Lines, continued
  • If you produce a defect, you know it right away
    therefore, quality can be measured at each step
    of the process.
  • Work-in-process inventories are reduced.
  • Expensive storage and transport systems are not
  • Workstations become responsibility centers in
    that people in workstations are responsible for
    their own work.
  • Work cells can be flexible.

Task/Competency DTE8427.026
All machines or processes of one type are put in
one place. Example All the lathes would be in
one place and all the drilling machines in
Task/Competency DTE8427.026
Clusters, continued
  • People and machines are far away from the
    workstations that send work to them and receive
    work from them.
  • Defects may not be found for days or weeks
    because the work is stored. This creates a time
    separation between when work is done and when it
    is used.
  • People at different workstations cannot see or
    communicate with each other.

Task/Competency DTE8427.026
Unitary Machines
Used in large manufacturing companies because
they are able to perform many different
operations to produce a complete part or
component that is numerically controlled
Task/Competency DTE8427.027
Just-in-Time Production
  • Produce finished goods just in time to be sold.
  • Produce subassemblies just in time for final
  • Produce parts just in time to be put in
  • Purchase raw materials just in time to make
  • Kanban process where products are pulled along
    according to need

Task/Competency DTE8427.027
Just-in-Time Production Advantages
  • Reduces the inventory and carrying charges by
    ordering in smaller lots
  • Reduces setup times by changing machines so they
    are easier to take apart, move, and reassemble
  • Reduces purchasing costs by using fewer suppliers
  • Decreases finished inventory costs by using
    smaller lot sizes
  • Produces higher quality
  • Decreases scrap levels decreases amount of
    wasted materials decreases time and money spent
    to fix bad products
  • Increases worker motivation
  • Hastens market response time

Task/Competency DTE8427.027
Measuring the Process Demings Principles
  • Create constancy of purpose for the improvement
    of product and service.
  • Adopt a new philosophy.
  • Cease dependence on mass inspection.
  • End the practice of awarding business on price
    tag alone.
  • Improve constantly the system of production and
  • Develop leadership.
  • Drive out fear.
  • Break down barriers among staff areas.
  • Eliminate slogans, exhortations, and targets for
    the workforce.
  • Eliminate numerical quotes.
  • Remove barriers to pride in workmanship.
  • Institute vigorous program of education,
    training, and retraining.
  • Implement changes.

Task/Competency DTE8427.027
Demings Seven Deadly Diseases
  • Lack of constancy of purpose
  • Emphasis on short-term profits
  • Evaluation of performance, merit rating, or
    annual review
  • Mobility of top management
  • Running a company on visible figures alone
    (counting the money)
  • Excessive medical costs
  • Excessive costs of warranty, fueled by lawyers
    who work on contingency fees

Task/Competency DTE8427.027
Some Obstacles
  • Neglect of long-term planning and transformation
  • The supposition that solving problems,
    automation, gadgets, and new machinery will
    transform industry
  • Examples of obstacles
  • The attitude that our problems are different
  • Obsolescence in schools
  • Reliance on quality control departments
  • Blaming the workforce for problems
  • Quality by inspection
  • False starts
  • The unmanned computer
  • Meeting specifications
  • Inadequate testing of prototypes
  • The attitude that anyone who tries to help must
    understand all about our business

Task/Competency DTE8427.028
Engineering, Business, Manufacturing
Task/Competency DTE8427.028
What Is CAD?
  • CAD enables the user to design components,
    products, tools, and fixtures.
  • A typical CAD system consists of hardware such as
    workstations, printers, plotters, and the
    software for creating and manipulating images,
    performing design calculations, and design

Task/Competency DTE8427.028, DTE8427.030
What Is CAM?
  • CAM involves programming of numerical control
    (NC) machines and material handling carriers,
    material requirement planning (MRP), and
    production planning and scheduling.
  • The programs for NC machines and material
    handling carriers are generated based on the part
    design produced by the CAD system and the process

Task/Competency DTE8427.028, DTE8427.030
A major feature of CAD/CAM technology is the use
of CAD features such as geometric modeling,
drafting, analysis, and testing into a unified
Task/Competency DTE8427.028, DTE8427.030
CAD/CAM System Allows One to
  • Define sculptured surfaces and other complex
  • Construct color-shaded solid models of components
    and products.
  • Compute the moment of inertia and other physical
  • Animate and study the action of moving parts.
  • Evaluate the overall behavior of a system with
    dynamic simulation.
  • Determine stresses and deflections.
  • Generate NC programs for manufacturing of parts.

Task/Competency DTE8427.029
What Is Meant by Manufacturing Systems?
Task/Competency DTE8427.029
Concurrent Engineering (CE)
CE is a team effort in which professionals
belonging to different disciplines work together
during the development of new products.
Task/Competency DTE8427.029
CE Benefits
  • Reduces product development costs
  • Reduces testing costs
  • Lowers service costs
  • Reduces manufacturing costs
  • Reduces marketing time
  • Improves product quality
  • Improves competitiveness of manufactured products
  • Increases profit margins

Task/Competency DTE8427.029
Group Technology (GT)
Splits orders to transform the functional
structure into group manufacturing, where parts
with similar manufacturing requirements are
processed in their entirety
Task/Competency DTE8427.029
GT Guidelines
  • Group members have equally developed skills and
    thus can substitute for each other.
  • There is joint responsibility for whole sections
    of production and internal autonomy with respect
    to planning and task allocation.
  • Conception and implementation are reintegrated to
    a high degree.

Task/Competency DTE8427.029
GT Stages
  • Stage 1 Part Family
  • Part with similar manufacturing requirements
    (grouping parts)
  • Stage 2 Manufacturing Facility
  • Equipment needed for completely manufacturing a
    part family (grouping machinery)
  • Stage 3 Working Group
  • Equally skilled workers cooperating to
    completely manufacture a part family by
    appropriate equipment (grouping personnel)
  • Stage 4 Production Insula
  • Integration of design, planning, and controlling
    tasks for complete product of family part
    (organizational grouping)

Task/Competency DTE8427.030
Design for Assembly (DFA)
  • Deals with understanding how product design
    interacts with other parts of the manufacturing
  • Concerned with the design of products with ease
    of assembly in mind

Task/Competency DTE8427.030
DFA Allows One to
  • Analyze all decisions relevant to assembly, and
    point out if there is some fault.
  • Indicate the critical features in the design.
  • Propose possible changes of inappropriate design
  • Suggest examples of design changes and check
    whether a design will affect product

Task/Competency DTE8427.030
Design for Manufacture (DFM)
  • DFM is the integration of design activities with
    other business activities.
  • DFM is concerned with understanding the products
    future manufacturing processes during the design
    phase and then taking appropriate measures.

Task/Competency DTE8427.030
Computer-Aided Process Planning (CAPP)
CAPP determines the sequence of operations and
resources required to manufacture a part.
Task/Competency DTE8427.030
Numerical Control (NC)
NC is the programmable control of manufacturing
machines as directed by a code of numbers,
letters, and other symbols. The code produces a
set of instructions that tells machine controls
what to do.
Task/Competency DTE8427.030
Three Basic Parts of NC Machines
  • Machine Tool
  • This tool is a power-driven machine used for
    shaping, turning, boring, drilling, grinding, or
    polishing solids.
  • Control Unit
  • This unit includes a tape reader and control
  • Program
  • The program is a detailed group of instructions.

Task/Competency DTE8427.030
Direct Numerical Control (DNC)
  • Is first extension of NC
  • Uses a master computer to control a number of
    machine tools
  • Provides operating instruction for each machine
    in the system

Task/Competency DTE8427.030
Computer Numerical Control (CNC)
Control of an individual machine by a computer
that replaced an NC paper tape reader
Task/Competency DTE8427.031
Cause-and-Effect Chart
Identify problems, and organize brainstorming.
Task/Competency DTE8427.031
Graphically displays frequency of occurrence in
bar graph format
Task/Competency DTE8427.031
  • Used to analyze data
  • Determine if there is a cause-and-effect
    relationship between two sets of data.
  • Verify that two data sets are related.
  • Identify the type of relationship that exists
    between two data sets.
  • Indicate the strength of the relationship between
    two data sets.

Task/Competency DTE8427.031
Control Chart Used to measure the process
  • X-Bar and R charts are used with variable data
  • P Charts are used with attribute data

Task/Competency DTE8427.031
What Is Quality?
  • Quality is what we strive for at work and demand
    as customers.
  • The natural selection process of humans directs
    us to look for quality.
  • Continuous improvement leads to better quality.
  • Quality is defined by the customer.
  • Quality is defined by a goal.
  • Quality does not include an inspection process
    it uses a prevention process.

Task/Competency DTE8427.031
Dr. Kaoru Ishakawas Seven Quality Tools
  • Cause-and-Effect Chart used to identify problems
    and organize brainstorming
  • Flowcharts used to describe a process
  • Time-based shows WHEN
  • Organizational-based shows WHO
  • Pareto diagram used to help you prioritize
  • Gather the data using cause-and-effect charts,
    histograms, or check sheets, and a Pareto diagram
    can be used to identify most important needs.

Task/Competency DTE8427.031
Dr. Kaoru Ishakawas Seven Quality Tools,
  • Check Sheet simplest way to collect both
    attributes nominal or ordinal and variable
    (interval or ratio) data
  • Checklists like a things-to-do list
  • Recording Check Sheets typically is COUNT data
  • Location Check Sheets picture form
  • Histogram used to visually display the way that
    data is distributed

Task/Competency DTE8427.031
Dr. Kaoru Ishakawas Seven Quality Tools,
  • Control Chart used to measure the process
  • X-Bar and R charts are used with variable data.
  • P Charts are used with attribute data.
  • Scattergrams used to analyze data
  • Determine if there is a cause-and-effect
    relationship between two sets of data.
  • Verify that two data sets are related.
  • Identify the type of relationship that exists
    between two data sets.
  • Indicate the strength of the relationship between
    two data sets.

Task/Competency DTE8427.031
Seven Quality Tools Are Used in the Workplace to
  • Collect and organize data.
  • Prioritize problems.
  • Assess the status of a process.
  • Describe processes.
  • Display cause-and-effect relationships.
  • Identify relationships between data.
  • Classify sources of variation.

Task/Competency DTE8427.031
Seven New Tools for Quality Management Being
Promoted in the Workplace
1. Affinity Diagram 2. Relations
Diagram 3. Tree/System Diagram 4. Process
Decision Program Chart 5. Matrix
Diagram 6. Matrix Data Analysis 7. Arrow Diagram
Task/Competency DTE8427.031
These Tools Are Used to
  • Organize and categorize large quantities of
    non-numerical data
  • Display relationships between problems and causes
  • Sequence tasks into steps in order to achieve
  • Show relationships that exist between groups of
  • Numerically quantify the strengths of
  • Plan new methods and prevent problems
  • Define plans and connect tasks to complete

Task/Competency DTE8427.032
Measures of Distribution Used to tell how the
data is spread
  • Standard deviation is a measure of how the data
    spreads around the mean.
  • Range tells the distance between the maximum and
    minimum data values.
  • Qu