4.

Selection of Product and Process Technologies

Raw Material

Equipment

Tooling
Production Product

Labour Process
Byproduct
Energy

Waste

Fig 4.1

The principal function in the manufacturing process is to take inputs and convert them into
products. There may be several ways to manufacture a given product. Selection process should
ensure that product can get competitive edge in the market.

Choice of process has several implications:

 Response to its markets

 Manufacturing capabilities and characteristics
 Investment required
 Unit cost
 Control and style of management

Manufacturing processes can be broadly classified into five basic types:

1. Project
2. Jobbing
3. Batch
4. Line
5. Continuous
Fig A

Fig B
Fig C
Fig D

Choice of Process Related to Volume

Project Civil Eng

Jobbing Purpose built Equipment,

Components

Batch
Engineering and Mould

Line
Motor Vehicles

Continuous Petrochemicals
Processing
Low High

Volume (Qty x Work content/unit)

Volume on the horizontal axis refers to order-quantity size.

 Volume = Quantity x Work Content

A. Project

Large scale, one-off (unique) complex products belong to this category. Here the product
manufactured is unique. Inputs are large scale. Product is made on a stationary location. Resources
are brought into the location. If project is selected as the appropriate process based on two criteria

 The product is one off and customized in nature.

 The product is too large in nature, and difficult or cannot be moved.

It may be possible to make part of the product out of the location and another part to be made
onsite. These decisions have to be made based on several factors such as technological factors, cost
factors, Quality factors etc., some components of projects can be manufactured using other
processes.

Eg: Air Craft manufacturing (Fig B), New house, New bridge construction, New Power Plant

B. Jobbing

This process is selected in cases where one off customized products to be made. For example
consider the case of manufacturing a shaft or gear wheel of a machine made in a mechanical
workshop to replace the damaged component. A high degree of workman skill is required to
interpret customer requirements into finished products. A one-off product means that it will not be
required again for a long period of time or not at all.
 C. Batch

When there is a requirement for similar items on a repeat basis and in large volumes, then the
selected process should be batch production. This type of process covers large volumes from a given
product. In batch production, manufacturing task is divided into a series of operations on completion
of which the product is made. The reason to do this is to minimize product cost and achieve higher
volumes. Investment has to be made on Jigs and toolings to ease the product flow from one task to
the next.

At the commencement of order, first step of the process is undergone by entire batch of
components. After completion of that step entire batch is set up for the next step. Like wise entire
batch complete the production in the final step. Eg: Injection moulding machine, where from a
particular mould a product quantity is made. After which mould is removed and another mould is
fixed. Then a different batch of components can be made. The batch of components first made move
to the next process. A distinctive feature of batch processing, is process has to be stopped and reset
upon completion of operations for one batch. Manufacturing is continuous for one batch but for
different batches of products there will be waiting and setup times.

D. Line

When the volumes are further increased dedicated production lines are used. Investment has to be
carefully made considering width of the product range. For a single product or a small range of
products the same line can be used.

In a line operation the products are manufactured by sequentially passing through a certain
operations. In the line each and every product passes through the same identical operations. There
can be semi-automated operations where manual inputs to the products can take place depending
on the requirements. The product manufactured in a line is considered standard in nature and it is
very difficult to carry out changes to a product within the line.

If the degree of flexibility of a line is to be increased due to a customer requirement, then the
investment required for the line increases.
 E. Continous

Continuous manufacturing is usually associated with natural material such as petroleum, sugar cane,
phosphate, salt, Graphite, etc.,. Basic material is passed through successive operations of refining or
processing into one or more products. The choice of process is based on two features:

a) Very high volume demand

b) Materials can be moved easily from one part of the process to another.

Continuous processing plants need very high investments. But very high demand of products justifies
high investment. The processes are designed to run 24/7 basis with minimum shutdowns due to high
costs and time associated with startup and shut down processes. Usually product range is narrow
and in some instances it is purposely narrowed to get volume increased in demand.

In continuous processing the materials will be transferred automatically (because of flowing nature
of material) from one part of the process to the next. People (Labour) will be required to monitor
and control the product quality automatically. Manual inputs to the product will be minimum in
continuous processing.

Selection of Processes for a Business

The five processes described above are discrete in nature and makes it easier to analyze and take
measures during operations. However, most businesses have to select two or more processes to
manufacture their products due to practically complex nature of product manufacturing process and
associated tasks involved. In order to manufacture them and sell them in competitive markets
minimizing cost and increasing profit, careful selection of manufacturing process (or processes) is
very essential.

The most important aspect to consider when selecting process for manufacturing, is the product
volume (Qty x work content). This means it is a choice between demand for the product and
investment required for the selected process.
Eg I : Manufacture of Rubber slipper

Strap

Components

 Base of Slipper
 Strap

Base

Base and Strap manufactured separately using batch production. Assembly operation carried out on
a line.
Eg II: Manufacture of Plug Top

Components:  Neutral / Live Pin holder

 Brass contacts for fuse
 Top Cover
 Fuse
 Bottom Cover
 Screws for pin holder
 Neutral Pin
 Screws for wire cord straps
 Live Pin
 Earth Pin
 Wire cord Strap
 Screw to hold top and bottom cover
together
 Component Process

 Top Cover Batch

 Bottom Cover Batch
 Live Pin Line
 Neutral Pin Line
 Earth Pin Line
 Wire cord Strap Batch
 Screw to hold top and bottom cover Line / Continuous
together
 Neutral / Live Pin holder Line
 Brass contacts for fuse Line
 Fuse Outsource
 Screws for pin holder Line / Continuous
 Screws for wire cord straps Line / Continuous
Eg III Crude Oil Processing

Refer Table 4.1 for summarization of selected business implications of process choice.
Hybrid Processes

Many companies adopt hybrid processes to meet market requirements. Some of the more
important hybrid processes are shown in below figure.

Project

Dedicated use of Gen

Jobbing Purpose machine
NC
mcs
Batch Mix mode Trf
Assy Lines
Machining
Line Centres

FMS
GT
Continuous
Processing
Low High
Volume

Hybrid format consist of a mix of two process types. But classification will be done belonging
to one or the other (Eg: Batch related or Line related) which is the root process. In hybrid
processes features trade offs described in table 4.1 will be altered. Some aspects will
improve while some get worse. Still the overall result for the company is a positive one by
using hybrid system than using a single process – the benefits should justify the additional
investment required for a hybrid process.
Batch related developments and hybrids

a) NC machines : automatically perform set of operations based on a coded program

b) Machining Centres : combine many NC operations into one machine thus increasing
product range and flexibility
c) Flexible manufacturing systems: Incorporate automated material handling into a
machine or machining centres
d) Group Technology: gets benefits of volume and line processes into batch processing
e) Linked Batch: is a hybrid of batch and line process. But cannot incorporate more
than 2 or 3 sequential processes.
f) Dedicated use of general purpose equipment: when the volume of product is
sufficiently high a dedicated machine can be used while retaining flexibility and other
characteristics of a general purpose machine are retained.

NC machine CNC Machining Centre

Parts can be manuctured by CNC machine (Examples)
Aluminium component of an Air craft seat

FMS: Flexible Manufacturing System

Line related developments and hybrids

a) Mix mode assembly lines : Product range of a line can be broaden with higher
investment so that line can continue from one product to the next without stopping
b) Transfer lines : Transfer lines are hybrid between line and continuous processing.
But root process will be still line because it can be stopped without major costs being
involved.

Advancements in computer technology have made rapid changes in the manufacturing

world increasing flexibility and responsiveness. Advance Manufacturing Technologies (AMT)
have made it possible to manufacture components and products from one country and
assembly of components in another country location.

Bill of Materials (BOM)

Bill of Material, also known as product structure, product recipe or BOM, is a comprehensive
list of items required for the manufacture of the end product, containing details of raw
materials required, components, assemblies that are required either to construct or
manufacture a product and which is used as the communication medium of manufacturing
team with stores team.

Explanation

Now let’s start with the explanation part. Say, I need to have a pizza on my plate now. Rather
than buying it from a restaurant, I am curious to prepare it myself. There are so many
questions involved in making the pizza ready for service. The first and foremost questions
arise “what ingredients are required for making the base, sauce, and toppings?”. After every
component is ready, “what should be the ideal heat to bake it?”. Now, shifting from pizza to
our topic of discussion, what specific items are required for manufacturing the end product?
The bill of the material revolves around this question.
  The bill of materials contains the specification of every item required to manufacture the
end products. Hence, not only the raw materials but also subassemblies, subcomponents,
sub-parts, and consumables are enlisted therein.
 The top level of BOM represents the finished product. Further, it is broken down into parts
to define the requirements.

There are two formats in which a bill of material can be displayed:

1. Explosion Format: It means to explode the end product into its component or parts (i.e., end
to start)
2. Implosion Format: It means to connect the individual parts to form an assembly at the
highest level (i.e., Start to end)

Structure of BOM

#1 – Single-Level

It is simple to prepare and use. However, in case of product failure, it is challenging to

investigate which item requires replacement or repair. Further, such a structure of BOM is
unsuitable for complicated products.

The basic structure has been shown below:

#2 – Multi-Level

Here the data is presented in a detailed tabular format with each column for Part Number,
Part Name, Description, Quantity, Cost, additional specifications, etc.

Elements

Any Bill of Material should serve the purpose of manufacturing the end product without any
hustle on the procurement of even a single item.

Following elements are required to create the same –

1. Quantity: The BOM should specify the number of parts procured or manufactured for each
assembly. Make sure that the optimum purchase order is placed. Quantity is the foremost
requirement of BOM.
 2. Unit of Measurement: Per unit, inches, grams, kilograms, liters, square feet, cubic feet, etc.,
should be specified for each quantity. The purchase cost should be under the budget set for
the project. It ensures that exact quantities are ordered.
3. BOM Level: This helps understand all the elements of the Bill of materials. BOM level
provides the number or ranking for each part. It may be Single-level BOM or Multi-level
BOM.
4. BOM Notes: This provides additional information regarding the bill of material other than
the description of parts.
5. Part Number: This helps track each part. Thus, a unique part number is assigned for each
item for easy referencing.
6. Part Name: The unique name of each item with a specific part number helps identify the
item easily and more effectively.
7. Raw Material: You should know the essential raw material for your end product. BOM
should specify the same quality of raw material required in the manufacturing process.
8. Description: Each part should have an adequate explanation about the part. It helps to
distinguish between similar parts.
9. Images: It’s good to have an image of a thousand words. It helps to cross-verify the BOM
details with the image. Images of the end product help with an easy understanding of each
component.
10. Method of Procurement: The required parts or items may be purchased from an outsider or
manufactured internally. Make sure that optimum discount is availed in bulk purchases of
items from the same vendor.

Types of Bills of Material

There are three types of bills of material.

#1 – Engineering BOM

It defines the design (i.e., drawing) of the end product. The engineering department makes
such a design. The design itself specifies the requirement. It has alternate or substitutes for
part numbers. The dimensions of each sub-assembly are also specified in such BOM. Each
line of BOM specifies the description part, name of the part, part number, unit of
measurement and its size, and other relevant specifications.
#2 – Manufacturing BOM

The requirements herein are specified from the angle of actual manufacturing rather than just
designing. However, engineering BOM aids the manufacturing of BOM. MBOM specifies
the processes which are required at the execution stage and thereby keeping all things ready
for manufacturing activities.

#3 – Sales BOM

It is treated as a sales item rather than just an inventory item. The requirements are specified
in the sales order document.

Bill of Materials Example

A bill of material can be created in tabular or flow chart form. Creating a bill of the material
requires knowledge of that sector. Detailed knowledge is not expected, but you should have a
broad view of the product. As a basic example, we will consider the manufacture of bicycles.
Let’s say there is a demand for 100 bicycles. The question is what
parts/components/assemblies/subassemblies should be required. Well, there are so many
types of bicycles. Deliberately, we consider “Mountain-bike” as complicated products so that
BOM can be understood in a detailed manner.

Details of all significant parts of mountain-bike:

Reasons why the BOMs are Crucial?

1. We cannot imagine a product without its BOM. It is the BOM that specifies all the
components.
2. Preparing a BOM is the most crucial aspect since anything not specified in the BOM will not
be acquired.
3. BOM helps identify the basic cost of components required to manufacture the end product.
4. Once we have the cost of components, we can identify the assemblies we can get from a
vendor instead of manufacturing them ourselves.
5. It also helps to identify wasteful items that can be avoided.
6. BOM helps in better decision-making whether to manufacture or buy it.
7. It makes the manufacturing process a little cost-effective.
8. BOM ensures that an overhaul all the components are considered.
Conclusion

These are the basic requirements of the manufacturing process. It only helps to compute the
cost of purchases. After the BOM is confirmed, other costs, such as labor, manufacturing
overheads, selling overheads, etc., are lined up further to identify the cost of goods sold
(COGS).

A dream does not become reality through magic; it takes sweat,

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