NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY

DEPARTMENT OF MECHANICAL ENGINEERING

MPMEC19: COMPUTER INTEGRATED MANUFACTURING
Unit-1: Introduction to CIM and GT
• Introduction: Objectives of a manufacturing system- identifying business
opportunities and problems classification, Production systems- linking manufacturing
strategy and systems analysis of manufacturing operations.
• Group Technology (GT): Introduction of part families, parts classification and
cooling, group technology machine cells, benefits of Group Technology.
Introduction
• Computer Integrated Manufacturing (CIM) encompasses the entire range of product
development and manufacturing activities with all the functions being carried out
with the help of dedicated software packages.
• The data required for various functions are passed from one application software to
another in a seamless manner.
• For example, the product data is created during design
• This data has to be transferred from the modeling software to manufacturing software
without any loss of data.
• CIM uses a common database wherever feasible and communication technologies to
• Integrate design,
• Manufacturing and associated business functions that combine the automated
segments of a factory or a manufacturing facility.
• This methodological approach is applied to all activities from
• the design of the product to customer support in an integrated way,
• using various methods, means and techniques in order to achieve
• production improvement,
• cost reduction,
• fulfillment of scheduled delivery dates,
• quality improvement and
• total flexibility in the manufacturing system.
• CIM requires all those associated with a company to involve totally in the process of
product development and manufacture.
CIM Includes
• total quality management (TQM),
• business process reengineering,
• concurrent engineering,

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING
• workflow automation,
• enterprise resource planning (ERP) and
• flexible manufacturing Systems (FMS).
Challenges Before Manufacturing Engineers

CIM has several software tools to address the above needs

• Manufacturing engineers are required to achieve the following objectives to be
competitive in a global context.
• Reduction in inventory
• Lower the cost of the product
• Reduce waste
• Improve quality
• Increase flexibility in manufacturing to achieve immediate and rapid response to:
• Product changes
• Production changes
• Process change
• Equipment change
• Change of personnel
CIM technology is an enabling technology to meet the above challenges to the
manufacturing.
EVOLUTION OF COMPUTER INTEGRATED MANUFACTURING
• Computer Integrated Manufacturing (CIM) is considered a natural evolution of the
technology of CAD/CAM which by itself evolved by the integration of CAD and
CAM.

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING
• Massachusetts Institute of Technology (MIT, USA) is credited with pioneering the
development in both CAD and CAM.
• The need to meet the design and manufacturing requirements of aerospace industries
after the Second World War necessitated the development these technologies.
• The manufacturing technology available during late 40's and early 50's could not meet
the design and manufacturing challenges arising out of the need to develop
sophisticated aircraft and satellite launch vehicles.
• This prompted the US Air Force to approach MIT to develop suitable control systems,
drives and programming techniques for machine tools using electronic control.
• Manufacturing engineers also started using computers for such tasks like
• inventory control,
• demand forecasting,
• production planning and control etc.
• CNC technology was adapted in the development of co-ordinate measuring machine's
(CMMs) which automated inspection.
• Robots were introduced to automate several tasks like machine loading, materials
handling, welding, painting and assembly.
• All these developments led to the evolution of flexible manufacturing cells and
flexible manufacturing systems in late 70's.
CIM HARDWARE AND CIM SOFTWARE
• CIM Hardware comprises the following:
1. Manufacturing equipment
2. Computers,

Manufacturing equipment in CIM

• CNC machines or computerized work centers,
• robotic work cells,
• DNC/FMS systems,
• work handling and tool handling devices,
• storage devices,
• sensors,
• shop floor data collection devices,
• inspection machines etc.

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING
Computers in CIM
• controllers,
• CAD/CAM systems,
• workstations / terminals,
• data entry terminals,
• bar code readers,
• RFID tags, printers,
• plotters and other peripheral devices, modems, cables, connectors etc.,
CIM software comprises computer programmes to carry out the following functions:
• Management Information System • Inventory Control
• Sales • Shop Floor Data Collection
• Marketing • Order Entry
• Finance • Materials Handling
• Database Management • Device Drivers
• Modeling and Design • Process Planning
• Analysis • Manufacturing Facilities Planning
• Simulation • Work Flow Automation
• Communications • Business Process Engineering
• Monitoring • Network Management
• Production Control • Quality Management
• Manufacturing Area Control
• Job Tracking

NATURE AND ROLE OF THE ELEMENTS OF CIM SYSTEM

Nine major elements of a CIM system are as
follows:
• Marketing
• Product Design
• Planning
• Purchase
• Manufacturing Engineering
• Factory Automation Hardware
• Warehousing
• Logistics and Supply Chain Management
• Finance
• Information Management

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING
Definition of CIM
• Joel Goldhar, Dean, Illinois Institute of Technology gives CIM as a computer system
in which the peripherals are robots, machine tools and other processing equipment.
• Dan Appleton, President, DACOM, Inc. defines CIM is a management philosophy,
not a turnkey product.
• Jack Conaway, CIM Marketing manager, DEC, defines CIM is nothing but a data
management and networking problem.
• The computer and automated systems association of the society of Manufacturing
Engineers (CASA/SEM) defines CIM is the integration of total manufacturing
enterprise by using integrated systems and data communication coupled with new
managerial philosophies that improve organizational and personnel efficiency.
CIM is recognized as Islands of Automation.
1. CAD/CAM/CAE/GT
2. Manufacturing Planning and Control.
3. Factory Automation
4. General Business Management
CIM Wheel

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING
Conceptual model of manufacturing
• The computer has had and continues to have a dramatic impact on the development of
production automation technologies.
• Nearly all modern production systems are implemented today using computer
systems.
• The term computer integrated manufacturing (CIM) has been coined to denote the
pervasive use of computers to
• design the products,
• plan the production,
• control the operations, and
• perform the various business related functions needed in a manufacturing firm.
• CAD/CAM (computer-aided design and computer-aided manufacturing) is
another term that is used almost synonymously with CIM.
Relationship between Automation and CIM
• In a manufacturing firm, the physical activities related to production that take place
in the factory can be distinguished from the information-processing activities, such as
• product design and
• production planning, that usually occur in an office environment.
• The physical activities include
• all of the manufacturing processing,
• assembly,
• material handling, and
• inspections that are performed on the product.
• These operations come in direct contact with the product during manufacture. They
touch the product.

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING
The relationship between the physical activities and the information processing activities in
the model
AUTOMATION DEFINED
Automation is a technology concerned with the application of mechanical, electronic, and
computer-based systems to operate and control production. This technology includes:
• Automatic machine tools to process parts
• Automatic assembly machines
• Industrial robots
• Automatic material handling and storage systems
• Automatic inspection systems for quality control
• Feedback control and computer process control
• Computer systems for planning, data collection, and decision making to support
manufacturing activities
Examples of Automation
Day to Day life
• ATM
• Vending machines
• Starting of the vehicle
• Car wipers
Industry
• Automation in Production Systems
• Automated Manufacturing Systems
• Painting Robots in the automobile mfg industry
• Soldering Machines
• Automatic capping machines
• Automatic filling machines

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING

Automation in Production Systems

Automated Manufacturing Systems

• 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.
Example: Car painting, Cars manufacturing, Soldering & brazing machine, Bottle filling &
capping, Packaging

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING

Examples of Automation Home Automation

What is Manufacturing?
• The word manufacturing derives from two Latin words, manus (hand) and factus
(make), so that the combination means made by hand.
• Commercial goods of those times were made by hand. The methods were handicraft,
accomplished in small shops, and the goods were relatively simple, at least by today’s
standards.
Manufacturing Systems
• A manufacturing system is a collection of people, equipment, and procedures
organized to perform the manufacturing operations of a company.
• It consists of two major components
1. Facilities
2. Manufacturing Support systems
• In modern manufacturing operations, portions of the production system are
automated and/or computerized.
• In addition, production systems include people. People make these systems work.
• In general, direct labor people (blue-collar workers) are responsible for operating the
facilities, and professional staff people (white-collar workers) are responsible for the
manufacturing support systems.

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING

Figure 1 The production system consists of facilities and manufacturing support systems.
Facilities
• The facilities in the production system consist of
• the factory,
• production machines and tooling,
• material handling equipment,
• inspection equipment, and
• computer systems that control the manufacturing operations.
• Facilities also include the plant layout, which is the way the equipment is physically
arranged in the factory.
• The equipment is usually organized into manufacturing systems, which are the
logical groupings of equipment and workers that accomplish the processing and
assembly operations on parts and products made by the factory.
Basic Categories of Manufacturing Systems
(a) Manual work systems: Ex.:Filing, inspection, unit movement, assembly

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING
(b) worker-machine systems: Machinist, Robo welding, Rolling mill, mechanized conveyor
(c) automated systems: Ex.: Semi-automated, fully automated

Figure Three categories of manufacturing systems: (a) manual work system, (b) worker-
machine system, and (c) fully automated system.
Manufacturing support systems
• To operate the production facilities efficiently, a company must organize itself to
design the processes and equipment, plan and control the production orders, and
satisfy product quality requirements.
• These functions are accomplished by manufacturing support systems—people and
procedures by which a company manages its production operations.
• Most of these support systems do not directly contact the product, but they plan and
control its progress through the factory.
Sequence of activities of Manufacturing Support systems
• The activities consist of four functions that include much information flow and data
processing:
(1) business functions,
(2) product design,
(3) manufacturing planning, and
(4) manufacturing control.

Figure Sequence of information-processing activities in a typical manufacturing firm.

Basic Functions
(1) an order to manufacture an item to the customer’s specifications,

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING
(2) a customer order to buy one or more of the manufacturer’s proprietary products, or
(3) an internal company order based on a forecast of future demand for a proprietary product.
Product Design
• If the product is manufactured to customer design, the design has been provided by
the customer, and the manufacturer’s product design department is not involved.
• If the product is to be produced to customer specifications, the manufacturer’s product
design department may be contracted to do the design work for the product as well as
to manufacture it.
Manufacturing planning
• process planning,
• master scheduling,
• material requirements planning, and
• capacity planning.
Manufacturing Control
• shop floor control,
• inventory control, and
• quality control
Automation in Production Systems

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING
Figure Opportunities for automation and computerization in a production system.
Automated Manufacturing systems
• Automated manufacturing systems operate in the factory on the physical product.
• They perform operations such as
• Processing,
• Assembly,
• Inspection, and
• Material handling,
• They are called automated because they perform their operations with a reduced level
of human participation compared with the corresponding manual process.
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.
Classifications of Automated manufacturing systems
(1) Fixed automation,
(2) Programmable automation, and
(3) Flexible automation.
Fixed automation
Typical features of fixed automation are
(1) high initial investment for custom-engineered equipment,
(2) high production rates, and
(3) inflexibility of the equipment to accommodate product variety.
Examples of fixed automation include machining transfer lines and automated assembly
machines.

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING

Typical features of programmable automation are

(1) high investment in general-purpose equipment,
(2) lower production rates than fixed automation,
(3) flexibility to deal with variations and changes in product configuration, and
(4) high suitability for batch production.
Examples of programmable automation include numerically controlled (NC) machine tools,
industrial robots, and programmable logic controllers.
Features of flexible automation are
(1) high investment for a custom-engineered system,
(2) continuous production of variable mixtures of parts or products,
(3) medium production rates, and
(4) flexibility to deal with product design variations.
Examples of flexible automation are flexible manufacturing systems that perform machining
processes.
Computerized Manufacturing support systems
• Automation of the manufacturing support systems is aimed at reducing the amount of
manual and clerical effort in product design, manufacturing planning and control, and
the business functions of the firm.
• Nearly all modern manufacturing support systems are implemented using computers.
• Computer-integrated manufacturing (CIM) denotes the pervasive use of computer
systems to

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING
• Design the products,
• Plan the production,
• Control the operations, and
• Perform the various information- processing functions needed in a
manufacturing firm.
• True CIM involves integrating all of these functions in one system that operates
throughout the enterprise.
for example,
• Computer-aided design (CAD) supports the product design function.
• Computer-aided manufacturing (CAM) is used for functions related to manufacturing
engineering, such as process planning and numerical control part programming.
• Some computer systems perform both CAD and CAM, and so the term CAD/CAM is
used to indicate the integration of the two into one system.
Automation and Computer-Integrated Manufacturing
Reasons
1. Increase labour productivity
2. Reduce labour cost
3. Mitigate effects of labour shortages
4. Reduce or eliminate routine manual and clerical tasks
5. Improve worker safety
6. Improve product quality
7. Reduce manufacturing lead time
8. Accomplish process that cannot be dome manually
9. Avoid the high cost of not automating
Manual labor in Factory operations
• Certainly one of the current economic realities in the world is that there are countries
whose average hourly wage rates are so low that most automation projects are
difficult to justify strictly on the basis of cost reduction.
• These countries include China, India, Mexico, and many countries in Eastern Europe,
Southeast Asia, and Latin America.
• With the passage of the North American Free Trade Agreement (NAFTA), the North
American continent has become one large labor pool.
• the use of manual labor a feasible alternative to automation.

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING
• Humans possess certain attributes that give them an advantage over machines in
certain situations and certain kinds of tasks
Table 1 Relative Strengths and Attributes of Humans and Machines

Manual labor is preferred over automation

• Task technologically too difficult to automate
(1) problems with physical access to the work location,
(2) adjustments required in the task,
(3) manual dexterity requirements, and
(4) demands on hand–eye coordination.
Examples include automobile final assembly lines where many final trim operations are
accomplished by human workers, inspection tasks that require judgment to assess quality, and
material handling tasks that involve flexible or fragile materials.
• Short product life cycle
• Customized product
• Ups and downs in demand
• Need to reduce risk of product faulire
• Lack of capital
Labor in Manufacturing support systems
• Computer-aided design systems are used in product design.
• The human designer is still required to do the creative work.
• The CAD system is a tool that augments the designer’s creative talents.
• Computer-aided process planning systems are used by manufacturing engineers to
plan the production methods and routings.

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING
In these examples, humans are integral components in the operation of the manufacturing
support functions, and the computer-aided systems are tools to increase productivity and
improve quality. CAD and CAM systems rarely operate completely in automatic mode.
People will be needed to do
• the decision making,
• learning,
• engineering,
• evaluating,
• managing, and
• other functions for which humans are much better suited than machine
Need for the following kinds of work to be performed by humans:
• Equipment maintenance
• Programming and computer operation
• Engineering Project work
• Plant management
The Automation Principle: The USA Principle
USA stands for
(1) Understand the existing process,
(2) Simplify the process, and
(3) Automate the process.
Understand the existing process.
• What are the inputs?
• What are the outputs?
• What exactly happens to the work unit between input and output?
• What is the function of the process?
• How does it add value to the product?
• What are the upstream and downstream operations in the production sequence, and
can they be combined with the process under consideration?
Simplify the process
This often involves a checklist of questions about the existing process.
• What is the purpose of this step or this transport?

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING
• Is the step necessary?
• Can it be eliminated?
• Does it use the most appropriate technology?
• How can it be simplified?
• Are there unnecessary steps in the process that might be eliminated without detracting
from function?
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 discussed in
the following section.
• An automation migration strategy might be implemented for a new product that has
not yet proven itself.
Ten strategies for automation and process Improvement
1. Specialization of operations
2. Combined operations
3. Simultaneous operations
4. Integration of operations
5. Increased flexibility
6. Improved material handling storage
7. Online inspection
8. Process control and optimization
9. Plant operations control
10. Computer-integrated manufacturing(CIM)

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING

Automation Migration strategy

Figure 6 A typical automation migration strategy.

Phase 1: manual production with single independent workstations.
Phase 2: automated production stations with manual handling between stations.
Phase 3: automated integrated production with automated handling between stations.
Key: Aut = automated workstation.

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING

Figure 7 The six major categories of CIM related to production systems

Manufacturing System

Figure : Alternative definitions of manufacturing:

(a) as a technological process and (b) as an economic process

Application of Physical and /or

Chemical processes to alter the geometry,
Properties, and/or appearance of a given starting
Material to make parts or products.
Ex.:

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING
Iron ore-steel
Sand-glass
Petroleum-plastic
Manufacturing Industries
• Industry consists of enterprises and organizations that produce and/or supply goods
and/or services.
• Industries can be classified as primary, secondary, and tertiary.
• Primary industries are those that cultivate and exploit natural resources, such as
agriculture and mining.
• Secondary industries convert the outputs of the primary industries into products.
Manufacturing is the principal activity in this category, but the secondary industries
also include construction and power utilities.
• Tertiary industries constitute the service sector of the economy.

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING
TABLE 2 Specific Industries in the Primary, Secondary, and Tertiary Categories, Based
Roughly on the International Standard Industrial Classification (ISIC) Used by the
United Nations
Manufacturing Operations
• Production operations in the process industries and the discrete product industries can
be divided into continuous production and batch production.
• There are certain basic activities that must be carried out in a factory to convert raw
materials into finished products.
• For a plant engaged in making discrete products, the factory activities are
(1) processing and assembly operations,
(2) material handling,
(3) inspection and test, and
(4) coordination and control.

Figure Continuous and batch production in the process and discrete manufacturing
industries, including (a) continuous production in the process industries, (b) continuous
production in the discrete manufacturing industries, (c) batch production in the process
industries, and (d) batch production in the discrete manufacturing industries. Key: Proc =
process.
TABLE 3 Manufacturing Industries Whose Products Are Likely to Be Produced by the
Production Systems

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING

Figure Classification of manufacturing processes

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING
Processing and assembly operations
• A processing operation transforms a work material from one state of completion to a
more advanced state that is closer to the final desired part or product. It adds value by
changing the geometry, properties, or appearance of the starting material.
• In general, processing operations are performed on discrete work parts, but some
processing operations are also applicable to assembled items, for example, painting a
welded sheet metal car body.
• An assembly operation joins two or more components to create a new entity, which
is called an assembly, subassembly, or some other term that refers to the specific
joining process
Other Factory Operations
• Material handling and storage,
• Inspection and testing, and
• Coordination and control.

How time is spent by a typical part in a batch production machine shop

Production Facilities
• A manufacturing company attempts to organize its facilities in the most efficient way
to serve the particular mission of each plant.
• One of the most important factors that determine the type of manufacturing is the type
of products that are made.
• The quantity of parts and/or products made by a factory has a very significant
influence on its facilities and the way manufacturing is organized.

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING
Production quantity
• Production quantity refers to the number of units of a given part or product produced
annually by the plant. The annual part or product quantities produced in a given
factory can be classified into three ranges.
1. Low production: Quantities in the range of 1 to 100 units
2. Medium production: Quantities in the range of 100 to 10,000 units
3. High production: Production quantities are 10,000 to millions of units
• Hard product variety
• Soft product variety

Figure 2.5 Relationship between product variety and production quantity in discrete product
manufacturing
Types of plant layout
(a) Fixed position layout,
(b) process layout,
(c) cellular layout, and
(d) product layout.

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING

Figure 7 :Types of facilities and layouts used for different levels of production quantity and
product variety.
PRODUCT/PRODUCTION RELATIONSHIPS
• Companies organize their production facilities and manufacturing systems in the most
efficient manner for the particular products they make.
• It is instructive to recognize that there are certain product parameters that are
influential in determining how the products are manufactured.

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING
Consider the following parameters:
(1) production quantity,
(2) product variety,
(3) product complexity (of assembled products), and
(4) part complexity.
Production Quantity and Product Variety
• The symbols Q and P can be used to represent these important parameters,
respectively.
• Q refers to the number of units of a given part or product that are produced annually
by a plant, both the quantities of each individual part or product style and the total
quantity of all styles.
• Let each part or product style be identified using the subscript j,
so that Qj = annual quantity of style j.
Then let Qf = total quantity of all parts or products made in the factory (the subscript f refers
to factory).
Qj and Qf are related as

where P = total number of different part or product styles, and j is a subscript to identify
products, j = 1, 2, c, P.
• The parameter P can be divided into two levels, as in a tree structure. Call them P1
and P2 .
• P1 refers to the number of distinct product lines produced by the factory, and
• P2 refers to the number of models in a product line. P1 represents hard product variety
and P2 soft variety. The total number of product models is given by

EXAMPLE 1 Product Lines and Product Models

A company specializes in home entertainment products. It produces only TVs and audio
systems. Thus P1 = 2. In its TV line it offers 15 different models, and in its audio line it offers

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING
5 models. Thus for TVs, P2 = 15, and for audio systems, P2 = 5. The totality of product
models offered.
Solution

Product and Part Complexity

• How complex is each product made in the plant?
• Product complexity is a complicated issue.
• It has both qualitative and quantitative aspects.
• For an assembled product, one possible quantitative indicator of product complexity is
its number of components—the more parts, the more complex the product is.
TABLE 4 Typical Number of Separate Components in Various Assembled Products

TABLE 5 Typical Number of Processing Operations Required to Fabricate Various Parts

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING
• Complexity of an assembled product can be defined as the number of distinct
components;
• let np = the number of parts per product. And processing complexity of each part can
be defined as the number of operations required to make it;
• let no = the number of operations or processing steps to make a part.
• three different types of production plant can be identified on the basis of np and no:
• parts producers,
• pure assembly plants, and
• vertically integrated plants.
• Several relationships can be developed among the parameters P, Q, np, and no that
indicate the level of activity in a manufacturing plant.
• Assuming that the products are all assembled and that all component parts used in
these products are made in the plant (no purchased components), the total number of
parts manufactured by the plant per year is given by

where npf = total number of parts made in the factory, pc/yr;

Qj = annual quantity of product style j, products/yr; and
npj = number of parts in product j, pc/product.

• If all parts are manufactured in the plant, then the total number of processing
operations performed by the plant is given by

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING

• where
• nof = total number of operation cycles performed in the factory, ops/yr; and nojk =
number of processing operations for each part k, summed over the number of parts in
product j, npj.
• Parameter nof provides a numerical value for the total level of part processing activity
in the factory.
• the total number of product units produced by the factory is given by

where P = total number of product styles,

Qf = total quantity of products made in the factory and the average Q value is given
by the following

• The total number of parts produced by the factory is given by

where the average np value is given by the following:

• The total number of manufacturing operations performed by the factory is given by

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING

where the average no value is given by the following:

EXAMPLE 2 A Production System Problem

• Suppose a company has designed a new product line and is planning to build a new
plant to manufacture this product line. The new line consists of 100 different product
types, and for each product type the company wants to produce 10,000 units annually.
The products average 1,000 components each, and the average number of processing
steps required for each component is 10. All parts will be made in the factory. Each
processing step takes an average of 1 min. Determine (a) how many products, (b) how
many parts, and (c) how many production operations will be required each year, and
(d) how many workers will be needed in the plant, if each worker works 8 hr per shift
for 250 days/yr (2,000 hr/yr)?

Manufacturing Metrics and Economics

• Manufacturing metrics can be divided into two basic categories:

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING
(1) production performance measures and
(2) manufacturing costs.
• Metrics that indicate production performance include
• production rate,
• plant capacity,
• equipment availability (a reliability measure), and
• manufacturing lead time.
• Manufacturing costs that are important to a company include
• labor and material costs,
• overhead costs,
• the cost of operating a given piece of equipment, and
• unit part and product costs.
• The logical starting point is the cycle time for a unit operation, from which the
production rate for the operation is derived.
• These unit operation metrics can be used to develop measures of performance at the
factory level:
• production capacity,
• utilization,
• manufacturing lead time, and
• work-in-process.
• For a unit operation, the cycle time Tc is the time that one work unit1 spends being
processed or assembled.
• It is the time interval between when one work unit begins processing (or assembly)
and when the next unit begins.
• Tc is the time an individual part spends at the machine, but not all of this is processing
time.
• where Tc = cycle time, min/pc;
To = time of the actual processing or assembly operation, min/pc;
Th = handling time, min/pc; and
Tt = average tool handling time, min/pc, if such an activity is applicable.
Production Rate

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING
• The production rate for a unit production operation is usually expressed as an hourly
rate, that is, work units completed per hour (pc/yr)
• How the production rate is determined based on the operation cycle time for the three
types of production: job shop production, batch production, and mass production.
• In job shop production, quantities are low (1 <= Q <= 100). At the extreme low end of
the range, when quantity Q = 1, the production time per work unit is the sum of setup
and cycle times:

• where Tp = average production time, min/pc;

Tsu = setup time to prepare the machine to produce the part, min/pc; and
Tc = cycle time from Equation. The production rate for the unit operation is simply
the reciprocal of production time, usually expressed as an hourly rate:

where Rp = hourly production rate, pc/hr;

Tp = production time from Equation , and
the constant 60 converts minutes to hours.
When the production quantity is greater than one, the analysis is the same as in batch
production.
Production Capacity and Utilization
• It is defined as the maximum rate of output that a production facility (or production
line, or group of machines) is able to produce under a given set of assumed operating
conditions.
• Quantitative measures of plant capacity can be developed based on the production rate
models derived earlier.
• Let PC = the production capacity of a given facility, where the measure of capacity
is the number of units produced per time period (e.g., week, month, year).
• The simplest case is where there are n production machines in the plant and they all
produce the same part or product, which implies quantity-type mass production.
• Each machine is capable of producing at the same rate of Rp units per hour, as
defined by Equation.
• Each machine operates for the number of hours in the period.

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING
• These parameters can be combined to calculate the weekly production capacity of the
facility,

where PC = production capacity, pc/period;

n = number of machines; and
Hpc = the number of hours in the period being used to measure production
capacity (or plant capacity).
Example 3.1 production Capacity
• The automatic lathe department has five machines, all devoted to the production of
the same product. The machines operate two 8-hr shifts, 5 days/week, 50 weeks/year.
Production rate of each machine is 15 unit/hr. Determine the weekly production
capacity of the automatic lathe department.
Solution

Example 3.2 Weekly production Rate

• A small machine shop has two machines and works 40 hr/wk. During a week of
interest, four batches of parts were processed through these machines. Batch
quantities, batch times, and operation sequences for the parts are given in the table
below. Determine (a) weekly production output of the shop and (b) whether this
represents the weekly plant capacity.

Utilization

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING
• Utilization is the proportion of time that a productive resource (e.g., a production
machine) is used relative to the time available under the definition of plant capacity.
Expressing this as an equation

where Ui = utilization of machine i, and

fij = the fraction of time during the available hours that machine i is processing part
style j.
• An overall utilization for the plant is determined by averaging the Ui values over the
number of machines:

Manufacturing lead time and Work-In-process

• MLT is defined as the total time required to process a given part or product through
the plant, including any time due to delays, parts being moved between operations,
time spent in queues, and so on.
• Production usually consists of a sequence of unit processing operations. Between the
unit operations are these nonproductive elements, which typically consume large
blocks of time.
• Thus, production activities can be divided into two categories, unit operations and
nonoperation times.
Reasons why non-operation time occurs between unit operations are the following:
1. Time spent transporting batches of parts between operations,
2. Buildup of queues of parts waiting before each operation,
3. Buildup of queues of parts after each operation waiting to be transported to the next
operation,
4. Less than optimal scheduling of batches,
5. Part inspections before and/or after unit operations,
6. equipment breakdowns resulting in lost production time, and
7. Workload imbalances among the machines that perform the operations required for a
given part or product style, with some machines being 100% utilized while others
spend much of the time waiting for work.

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING
Manufacturing lead time for a given batch is defined as

where MLT j = manufacturing lead time for a batch of part or product j, min;
Tsuij = setup time for operation i on part or product j, min;
Qj = quantity of part or product j in the batch being processed, pc;
Tcij = cycle time for operation i on part or product j, min/pc;
Tnoij = nonoperation time associated with operation i, min; and i indicates the
operation sequence in the processing, i = 1, 2,c, noj.
• The average manufacturing lead time over the number of batches to be averaged is
given by the following

where MLT = average manufacturing lead time, min, for the

nb batches (parts or products) over which the averaging procedure is carried out, and
MLT j = lead time for batch j
• In the extreme case in which all of the parts or products are included in the averaging
procedure, nb = P, where P = the number of different part or product styles made by
the factory.
• To simplify matters and enhance conceptualization of this aspect of factory
operations, properly weighted average values of batch quantity, number of
operations per batch, setup time, operation cycle time, and nonoperation time
can be used for the nb batches being considered. With these simplifications,

• where MLT = average manufacturing lead time for all parts or products in the plant,
min; and the terms Q, no, Tsu, Tc, and Tno are all average values for these parameters.
Example 3.3 Manufacturing lead Time

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING
• A certain part is produced in batch sizes of 100 units. The batches must be routed
through five operations to complete the processing of the parts. Average setup time is
3.0 hr/batch, and average operation time is 6.0 min/pc. Average nonoperation time is
7.5 hr for each operation. Determine the manufacturing lead time to complete one
batch, assuming the plant runs 8 hr/ day, 5 days/wk

Work-in-process
• A plant’s work-in-process (WIP, also known as work-in progress) is the quantity of
parts or products currently located in the factory that either are being processed or are
between processing operations.
• WIP is inventory that is in the state of being transformed from raw material to
finished part or product

where WIP = work-in-process in the plant, pc;

Rpph = hourly plant production rate, pc/hr, and
MLT = average manufacturing lead time, hr
Example 3.4 Work-In-process
• Assume that the part style in Example 3.3 is representative of other parts produced in
the factory. Average batch quantity = 100 units, average setup time = 3.0 hr per batch,
number of operations per batch = 5, and average operation time is 6.0 min per piece
for the population of parts made in the plant. Nonoperation time = 7.5 hr. The plant
has 20 production machines that are 100% utilized (setup and run time), and it
operates 40 hr/wk. Determine (a) weekly plant production rate and (b) work-in-
process for the plant.

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING

Manufacturing costs
• Manufacturing costs can be classified into two major categories:
1. Fixed costs and
2. Variable costs.
Fixed Cost
• Fixed cost is one that remains constant for any level of production output.
Example: the cost of the factory building and production equipment, insurance, and property
taxes.
• All of the fixed costs can be expressed as annual amounts. Expenses such as insurance
and property taxes occur naturally as annual costs.
• Capital investments such as building and equipment can be converted to their
equivalent uniform annual costs using interest rate factors.
Variable Cost
• A variable cost is one that varies in proportion to production output. As output
increases, variable cost increases.
Example: direct labor, raw materials, and electric power to operate the production equipment.
• The ideal concept of variable cost is that it is directly proportional to output level.
Total Annual Cost

where TC = total annual cost, ₹/yr;

Cf = fixed annual cost, ₹/yr;

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING
Cv = variable cost, ₹/pc; and
Q = annual quantity produced, pc/yr.

Figure 3 Fixed and variable costs as a function of production output for manual and
automated production methods.
Example 3.5 Manual versus automated production
• Two production methods are being compared, one manual and the other automated.
The manual method produces 10 pc/hr and requires one worker at ₹ 15.00/hr. Fixed
cost of the manual method is ₹ 5,000/yr. The automated method produces 25 pc/hr,
has a fixed cost of ₹ 55,000/yr, and a variable cost of ₹ 4.50/hr. Determine the break-
even point for the two methods; that is, determine the annual production quantity at
which the two methods have the same annual cost. Ignore the costs of materials used
in the two methods.
Solution: The variable cost of the manual method is
Cv = (₹ 15.00/hr)/(10 pc/hr) = ₹ 1.50/pc
Annual Cost of the manual method is TCm = 5,00 + 1.50Q
The variable cost of the automated method is
Cv = (₹4.50/hr)/(25 pc/hr) = ₹0.18/pc
Annual cost of the automated method is TCa = 55,000 + 0.18Q
At the break even point TCm = TCa
5,000 + 1.50Q = 55,000 + 0.18Q
1.50Q – 0.18Q = 1.32Q = 55,000 – 5,0000 = 50,000
1.32Q = 50,000Q = 50,000/1.32 = 37,897 pc
Direct labor, Material, and overhead
• Fixed versus variable are not the only possible classifications of costs in
manufacturing.
• An alternative classification separates costs into

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING
(1) Direct labor Cost: Direct labor cost is the sum of the wages and benefits paid to the
workers who operate the production equipment and perform the processing and assembly
tasks.
(2) Material Cost: Material cost is the cost of all raw materials used to make the product.
(3) Overhead Cost: Factory overhead consists of the costs of operating the factory other than
direct labor and materials, such as the factory expenses. Corporate overhead is the cost not
related to the company’s manufacturing activities
• This is often a more convenient way to analyze costs in production.

Figure 4 Breakdown of costs for a manufactured product

• Overhead costs can be allocated according to a number of different bases, including
direct labor cost, material cost, direct labor hours, and space.
• The allocation procedure (simplified) is as follows. For the most recent year (or
several recent years), all costs are compiled and classified into four categories:
(1) direct labor,
(2) material,
(3) factory overhead, and
(4) corporate overhead.
• The factory overhead rate is calculated as then ratio of factory overhead expenses
(category 3) to direct labor expenses (category 1); that is

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING
where FOHR = factory overhead rate, FOHC = annual factory overhead costs, $/yr; and DLC
= annual direct labor costs, $/yr.
• The corporate overhead rate is the ratio of corporate overhead expenses (category 4)
to direct labor expenses:

where COHR = corporate overhead rate, COHC = annual corporate overhead costs,
$/yr; and DLC = annual direct labor costs, $/yr.
• Both rates are often expressed as percentages

Example 3.6 Determining Overhead Rates

Example 3.7 Estimating manufacturing Costs and Establishing Selling price

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING
• A customer order of 50 parts is to be processed through plant 1 of the previous
example. Raw materials and tooling are supplied by the customer. The total time for
processing the parts (including setup and other direct labor) is 100 hr. Direct labor
cost is $15.00/hr. The factory overhead rate is 250% and the corporate overhead rate
is 600%. (a) Compute the cost of the job. (b) What price should be quoted to the
customer if the company uses a 10% markup?

Cost of equipment Usage

• The machine annual cost is the initial cost of the machine apportioned over the life of
the asset at the appropriate rate of return used by the firm. This is done using the
capital recovery factor, as

where UAC = equivalent uniform annual cost, $/yr;

IC = initial cost of the machine, $; and
(A/P, i, N)= capital recovery factor that converts initial cost at year 0 into a series of
equivalent uniform annual year-end values,
where i = annual interest rate and N = number of years in the service life of the equipment.
For given values of i and N, (A/P, i, N) can be computed as follows

• The total cost rate for the machine is the sum of labor and machine costs.
• This can be summarized for a machine consisting of one worker and one machine as
follows:

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING
where Co = hourly rate to operate the machine, $/hr;
CL = direct labor wage rate, $/hr;
FOHRL = factory overhead rate for labor;
Cm = machine hourly rate, $/hr; and
FOHRm = factory overhead rate applicable to the machine.
Example 3.8 Hourly Cost of a machine
• The following data are given for a production machine consisting of one worker and
one piece of equipment: direct labor rate = $15.00/hr, applicable factory overhead rate
on labor = 60%, capital investment in machine = $100,000, service life of the machine
= 4 yr, rate of return = 10%, salvage value in 4 yr = 0, and applicable factory
overhead rate on machine = 50%. The machine will be operated one 8-hr shift, 250
day/yr. Determine the appropriate hourly rate for the machine

Cost of a Manufactured part

• The unit cost of a manufactured part or product is the sum of the production cost,
material cost, and tooling cost.
• overhead costs and profit markup must be added to the unit cost to arrive at a selling
price for the product.
• The total unit cost of the part is the sum of the costs of all unit operations plus the cost
of raw materials. Summarizing,

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 NETAJI SUBHAS UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF MECHANICAL ENGINEERING
MPMEC19: COMPUTER INTEGRATED MANUFACTURING
where Coi = cost rate to perform unit operation i, $/min,
Tpi = production time of operation i, min/pc, and
Cti = cost of any tooling used in operation i, $/pc.
Cpc = cost per piece, $/pc;
Cm = cost of starting material, $/pc; and
the summation includes all of the costs of the no unit operations in the sequence
Example 3.9 Unit Cost of a manufactured part
• The machine in Example 3.8 is the first of two machines used to produce a certain
part. The starting material cost of the part is $8.50/pc. As determined in the previous
example, the cost rate to operate the first machine is $47.66/hr, or $0.794/min. The
production time on the first machine is 4.20 min/pc, and there is no tooling cost. The
cost rate of the second machine in the process sequence is $35.80/hr, or $0.597/min.
The production time on the second machine is 2.75 min/pc, and the tooling cost is
$0.20/pc. Determine the unit part cost.

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