Advanced Production & Operations Management

Unit 15

Unit 15

Uses of Computers in Production and Operations

Structure 15.1 Introduction Objectives 15.2 Manufacturing Information Systems 15.3 Computer Aided Management Applications of CAM Benefits of CAM Disadvantages of CAM 15.4 Integrated Models of Production Systems International Operations content removed 15.5 On-line or Real Time Systems 15.6 Using Modeling Software for Operations Improvement 15.7 Impact of Internet on New Product Development 15.8 Summary 15.9 Terminal Questions 15.10 Answers 15.11 Case Study 15.12 Glossary

15.1 Introduction
By now, you must be familiar with Just-In-Time which is considered to be a philosophy of manufacturing based on the principles of eliminating waste and thereby increasing productivity. This unit familiarises you with the uses of computers in production. There is an increase in the use of information technology in manufacturing in the recent years that has helped organisations at every level. As a result, there is a demand for those related to the manufacturing industry to understand the nature of the technology and the way it can be used to increase profit. A manufacturing information system helps in reaching higher levels of financial performance. A badly designed and tuned information system hurts the plants ability to serve the companys goal of sustaining and increasing the benefits. The manufacturing plant control consists of many tactical and operational functions that are manufacturing-related
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operations. There are functions that range from the reception of raw material to the shipping of finished products, from production to equipment maintenance, through stock movements and material quality tests, and from customer order lines to work dispatching which includes the control of manufacturing operations. These functions come under different responsibilities even though they have to operate collaboratively under effective business management directions. Learning Objectives After studying this unit, you will be able to: Discuss the importance of manufacturing information systems Analyse the applications, benefits and problems of CAM Elucidate the importance of international operations and online real time operations Explain the importance of internet on new product

15.2 Manufacturing Information Systems

Inter-organisational information systems are the prime facilitators of new collaboration among different businesses. But current research shows that they are not used frequently to support manufacturing networks of small and medium-size enterprises that get together to compete through joint learning, resource sharing, technology transfer, marketing or production. There are many smaller businesses that lack technical expertise. Different system support is provided for co-marketing and co-production depending on the needs from other networks such as resource and learning networks. There are network brokers or sponsors who can help network members to incorporate technology that eases information access and communication in all networks and provide collaborative support to give information exchange and shared databases for joint marketing and production efforts. When computer is used as an information system, then Material Requirements Planning Systems (MRP), Reorder Point Systems (ROP), and Just-In-Time (JIT) systems are also included. MRP system consists of software that helps in calculating and estimating the requirements of the production materials, their quantities and the date on which they are needed. Here, the production managers do not have to wait till the reorder
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points. This is because the orders are placed well before the reorder points at the estimated date calculated by the computer, based on the MRP systems. In ROP systems, computer based systems are used to manage the task of the firms inventory. In this, a reactive approach is followed where the items balance reaches a particular level called Reorder Point (ROP). This initiates a purchase order. The formula for calculating Reorder Point is R= L* U + S, where, R is the Reorder point, L is the Supplier lead time which is the amount of time the supplier needs to fill the order, U is the Usage Rate which is the number of units sold per day and S is the safety stock level which is the precautionary stock in the units. In Just-In-Time approach systems, attempts are made to reduce the inventory costs by producing smaller quantities. Here, the ideal lot size is one. In this, the single unit moves from various workstations of production until the production is completed. In JIT systems, the supply of raw materials arrive from the supplier just before a production run is scheduled to start. Manufacturing Information Systems are now possible with the integrated computer technology. In Manufacturing Information Systems, manufacturing management uses the computer, both as a Physical system and a Conceptual system. The computer as part of Physical system consists of Computer Aided Design (CAD), Computer Aided manufacturing (CAM) and Robotics. Computer-Aided Design In Computer-Aided Design, the design engineer can use a visual display terminal along with a light pen as an input device to create designs. This software helps in refining drawings and helps the engineer to perform various virtual tests on the design so that defects can be detected. Using this software, moving part of the design can be simulated to show real movements, which is closer to practical situations. The CAD software can prepare detailed specifications that are required for manufacturing product and storing them in a design database. Computer-Aided Manufacturing In Computer-Aided Manufacturing, computers are used in the production process. This helps in controlling production machines such as drills, lathes
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etc used to produce products according to the specifications obtained from the design database. As present production machines have built-in microprocessors, the control of several production machines are possible using a single minicomputer. Robotics In Robotics, robots help firms to minimise costs and achieve high levels of quality and also perform risky tasks. This also includes the use of Industrial Robots (IR) that automatically performs the manufacturing process.

15.3 Computer Aided Manufacturing

Computer Aided Manufacturing or CAM helps firms to manufacture quality products according to customer demands in a short time and also to meet the increasing competition level in a short time. By using CAM systems in manufacturing processes important changes can be brought about in the firms performance measurement systems. The general approach in performance measurement systems is based on theoretical frame that, different manufacturing environments need to sort different types of measures to assess organisational performance. Accordingly, many labour-intensive manufacturing environment cannot show synchronisation with CAM. These measures lead to hiding the reality about the effectivity and the productivity of production, to rule out the profits of investment. It is important to improve the performance of the measurement systems multi-dimensionally. This helps in giving the performance measurement systems an opportunity to chase the business in CAM. This also provides managers and employees the opportunity for value creation. On the contrary to traditional systems, in CAM, the non-financial performance measures have an important status today. This is due to the fact that importance is given customer satisfaction, competence, innovation and also to labour productivity. CAM is also considered to be a numerical control programming tool, where two-dimensional (2-D) or three-dimensional (3-D) models are generated using CAD software which can then be used to generate G-code1 to drive

G-code, a programming language that understands numerically controlled machine tools.

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Computer Numerically Controlled (CNC) machine tools. CAM does not eliminate the need for skilled professionals such as manufacturing engineers, NC programmers or machinists. CAM requires the most skilled manufacturing professionals to work on advanced productivity tools and also build the skills of new professionals through visualisation, simulation and optimisation of tools. The areas of concern in CAM are: Machining at high speed, including streamlining of tool paths

Multi-functioning machines Multi axis machining Identifying and machining feature Machining automation process Using it with ease

The attenuation of CAM is given both by providers of niche solutions and by high-end solutions. This occurs in three primary areas: Easy usage Complications in manufacturing PLM integration and enterprise extension Easy usage For beginners, using CAM is very easy. CAMs out-of-box capabilities provide process wizards, templates, libraries, machine tool kits, automated feature. This is based on machining and job function specific customisable user interface which helps in building the users confidence and increase the speed of the learning curve. User confidence can be built on 3D visualisation through a closer integration with 3D CAD environment that includes error-avoiding simulations and optimisations. Manufacturing complications The manufacturing environment has become increasingly complex. Demand for CAM and PLM tools by manufacturing engineer, NC programmer or machinist is similar to the computer assistance needed by modern aircraft pilots. CAM systems support a full range of machine tools that includes turning, five axis machining and wire Electrical Discharge Machining. The present CAM users can easily generate streamlined tool paths, optimised tool axis tilt used for higher feed rates and optimised Z axis depth cuts as
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well as driving non-cutting operations such as the specification of probing motions. PLM integration and enterprise extension Present competitive and successful companies use PLM to integrate manufacturing with enterprise operations using the concept of field support of the finished product. To enable easy usage of appropriate user objectives, modern CAM solutions can be scalable from stand-alone CAM systems to fully integrated multi-CAD 3D solution sets. These solutions are created to meet all the needs of manufacturing personnel including part planning, documentation of shop, management of resource and management and exchange of data. 15.3.1 Applications of CAM Computer-Aided Manufacturing helps in bridging the gap between the conceptual design and the manufactured finished product. Previously designs developed using CAD software had to be manually converted into drafted paper drawing, detailing instructions for its manufacture but now with the use of CAM software it has become possible to convert data directly into a set of manufacturing instructions. CAM software allows conversion of the 3D models generated in CAD into a set of basic operating instructions written in G-code. G-code is a programming language that can be understood by numerically controlled machine tools like industrial robots that instruct the machine tool to manufacture a large number of items with perfect precision as per the CAD design. Numerically controlled modern machine tools can be connected into a cell, a collection of tools where each performs a particular task in the manufacturing the product. The product gets passed along the cell in the manner of a production line, where each machine tool like the welding and milling machines, drills, lathes etc perform a single step of the process. A single computer controller can drive all the tools into a single cell. G-code instructions can be given to this controller and it runs the cell with minimal input from human supervisors. 15.3.2 Benefits of CAM For manufactures, the ideal state of affairs for manufacturing process can be entirely automated. Along with CAD, CAM allows manufactures to reduce
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the costs of producing goods by reducing the involvement of human operators. In CAM, apart from lower running costs there are several additional benefits. By removing the need to convert CAD models into manufacturing instructions through paper drafts it now allows manufactures to make quick changes to the product design, give updated instructions to machine tools and also see instant results. There are many CAM software packages which have the ability to manage simple tasks such as re-ordering of parts, further reducing human involvement. Although numerical controlled machine tools have the ability to sense errors and automatically shut down, many may actually send a message to their human operators through phones or email, informing them of the problem and awaiting further instructions. CAM software represents a trend to make manufacturing completely automated. While CAD removed the need to keep a team of drafters to design new products, CAM removed the need for skilled and unskilled workers. These resulted in lower operational cost, lower end product prices and increased profits for manufacturers. 15.3.3 Problems with CAM In CAM, there are several limitations. The infrastructure set up can be extremely expensive. CAM requires not only numerically controlled machine tools but also an extensive suite of CAD/CAM software and hardware to develop the design models and to convert them into manufacturing instructions along with trained operators to run them. The field of CAM is filled with inconsistency. All numerically controlled machine tools operate with the help of G-code as there is no global standard for the code. Also, since there is such a wide variety of machine tools that use the code, it tends to be the case that manufacturers create their own codes to operate their machinery. The lack of standardisation may not be a problem but can become a problem when the time comes to convert 3D CAD designs into G-code. CAD systems tend to store data in their own format, so it can often be a challenge to transfer data from CAD to CAM software and then into the G-code the manufacturer employs.

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Activity 1 SAS systems is a manufacturing organisation and there is a newly acquired manufacturing project. They have to develop designs for the same. Which is the best method to use? What are the uses and limitations of using the same? Self Assessment Questions 1. In manufacturing information system the computer can be used as both ______ systems and _______ systems. 2. CAD stands for __________________________. 3. CAM is considered as _____________________. 4. R = __ *___+____. 5. ________ is a programming language.

15.4 Integrated Models of Production Systems

In Integrated models of production systems, computer is used to increase the speed of manufacturing. Computer-Integrated Manufacturing (CIM) is a manufacturing approach where computers are used to control the entire production process. It is defined as the integration of information technology with manufacturing systems and processes, with the goal of manufacturing products more efficiently and effectively. This integration enables processes to exchange information with each other that helps to initiate actions. It also makes manufacturing faster and less error-prone and the main advantage is the ability to create automated manufacturing processes. CIM banks on closed-loop control processes based on real-time input from the sensors. This is also known as flexible design and manufacturing. The functional areas such as design, analysis, planning, purchasing, cost accounting, inventory control and distribution are connected through the computer with factory floor functions such as materials handling and management, providing direct control and monitoring of all process operations. There are three components that distinguish CIM from other manufacturing methodologies and are as follows:
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It is used for data storage, retrieval, manipulation, and presentation It uses mechanisms for sensing the state and modifying the processes It uses algorithms for uniting the data processing component along with
the sensor/modification component In CIM systems, there are three major challenges faced in the development which are as follows:

Component integration from different suppliers: Different machines,

such as CNC, conveyors and robots use different types of communications protocols. In the case of Automated Guided Vehicles (AGV), the problems are caused because of the differing lengths of time used for charging.

Integration of data: The integrity of the data used to control the

machines becomes more critical when the degree of automation becomes higher. While the CIM system saves on the labour of operating the machines, it uses extra human labour in ensuring that the safeguards used are proper for the data signals which are used to control the machines.

Process of controlling: Computers are used to help human operators

in the manufacturing facility. For this, there must be a capable engineer on hand to handle situations which could not be foreseen by the designers of the control software. CIM is an ideal example of the implementation of Information and Communication Technologies (ICTs) in manufacturing. CIM indicates that there are at least two computers exchanging information, example: the controller of an arm robot and a micro-controller of a CNC machine. Some factors that must be considered in a CIM implementation are the volume, the experience of the company or personnel to make the integration, the level of the integration into the product itself and the integration of the production processes. CIM is useful when a high level of ICT is used in the company or facility, such as CAD/CAM systems, where the process planning and its data are available. Subsystems in computer-integrated manufacturing There are different types of sub-systems available in CIM for operation and the different types of Computer-Aided techniques are as follows:
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Computer-Aided Design (CAD) Computer-Aided Engineering(CAE) Computer-Aided Manufacturing(CAM) Computer-Aided Process Planning(CAPP) Computer-Aided Quality Assurance(CAQ) Production Planning and Control(PPC) Enterprise Resource Planning(ERP) A business system integrated by a common database

Devices and equipment used are Computer Numerical Controlled machine tools (CNC), Direct Numerical Control machine tools (DNC), Programmable Logic Controllers (PLCs), robotics, computers, software, controllers, networks interfacing and monitoring equipment. The technologies used are Flexible Manufacturing System (FMS), Automated Storage and Retrieval System (ASRS), Automated Guided Vehicle (AGV), robotics and automated conveyance systems.

15.5 On-line or Real Time Systems

In on-line or real time systems, the processing time available is highly limited and should be processed in synchronisation with other external process. A Real-Time Operating System (RTOS) is a multitasking operating system designed for real-time applications and the applications include embedded systems, industrial robots, scientific research equipment and others. RTOS makes the creation of real-time applications easy, but does not guarantee the final result as this requires good software. RTOSs use specialised scheduling algorithms to provide real-time applications. An RTOS can respond more quickly and/or predictably to an event compared to other operating systems. The main feature of RTOS includes minimal interrupt latency and a minimal thread switching latency. There are two basic designs for RTOS. They are: Event-driven or priority scheduling designs: In this design, the task gets switched only when an event of higher priority needs service which is known as pre-emptive priority.
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Time-sharing designs: In this design, the task gets switched when there
is a clock interrupt and also on the events called round robin.

15.6 Using Modeling Software for Operations Improvement

Today, information technology has advanced so much in hardware and software that it is possible to create software for operations improvement used in both academics and small business environments. Basically, the problem solving environments should address the following five key competitive advantages: Process analysis and waiting line management improves process and customer service Time management and process analysis improves response time Statistical process control and acceptance to sampling improves Quality management Inventory modelling and material requirement planning improves Supply chain management Forecasting and aggregate planning improves Capacity management. Special features of the software used for operations management are:

Process analysis: Process analysis is considered to be the heart of

Operations Management. It gives an insight into product cost and flow time. Service guarantees cannot be crafted without remedy to such analysis. It addresses capacity management, which is considered to be the starting point for any operations analysis.

Waiting line Management: The waiting line packages available for

educational or small business allows users to make distributional assumptions about the inter-arrival time and service times. The interarrival pattern can be Exponential, Erlang (of any degree), General (where only the first two moments of the distribution are specified), or Empirical. When the distribution is experimental and the users can input observed frequencies, the service time distribution can correspondingly be Exponential, Erlang, General or Empirical. In waiting line environment, the queue-joining disciplines can include Random, Shortest Line, Jockey and Cyclic. The job selection criteria can be the popular First Come First Serve or the Shortest Processing Time rule.
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Project Management: Program Evaluation Review Technique (PERT)

and CPM are the two of the most commonly used techniques in Operations Management. The PERT module has a built-in simulator to determine the completion time distribution as well as the criticality indices of activities. The standard output consists of early and late start information, slack and Gantt chart.

Forecasting: The forecasting module is the hardest module to design

because of the availability of variety of techniques and user options. There are many trade-offs that need to be made with respect to aspects of the forecast offered as a default option and also to decide on how to allow (in what sequence) changes in the options.

Inventory: The inventory management module can be divided into

models for independent demand inventory management and models for dependent demand inventory management.

Aggregate Planning: One of the classic applications of the optimisation

techniques in Operations Management is involved in developing production plans over the medium term horizon. The costs due to lost sales, subcontracting or backorders can be specified, along with cost of over time, different amounts of available hours in different periods, safety stocks, along with starting and ending inventories.

Quality management: The quality management module implements

both statistical process control as well as acceptance sampling. The acceptance-sampling module can be used to plot the Operating Characteristic (OC) Curve and even to find out a sampling plan.

15.7 Impact of Internet on New Product Development

Different activities involved in the New Product Development (NPD) process that match the requirements include speed, convenience, interactivity and the world wide coverage of the internet. NPD involves uncertainties and risks and also requires the firms to take into account the views of the customers and also to introduce new products to market. Recent researches have consistently shown that a high-quality process is one of the most crucial success factors in NPD. Even though different firms have adopted different types of NPD process, the typical process generally consists of

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discrete and identifiable stages such as preliminary investigation, detailed investigation, development, testing and validation, and market launch. Activities at every stage are undertaken by cross-functional teams and are conducted both sequentially and simultaneously. Throughout these phases, strategic decisions are made about whether to go ahead with a new project, to modify it or to close it. Following is a detailed explanation about these phases and explains how the internet can be used at each step to improve the effectiveness of the NPD process, along with some limitations associated with it at each stage. Preliminary Investigation True market, technical and financial assessments of new product ideas are done at the preliminary investigation stage. In this stage, the initial evaluation of the new product ideas and preliminary assessment of the other possible factors that might affect the success of the new product ideas are considered. Every new idea begins with an idea, and companies at this stage generate as many new ideas as possible. In fact, numerous experiments have shown that online idea-generation sessions create more exceptional and quality ideas compared to the face-to-face sessions and also that the participants are more satisfied with this type of meeting. The internet can thus offer a workable platform for electronic idea generation by individuals in different parts of the world and companies are using internet for this purpose. Example, a company called Polaroid Corp. used internet-based methodologies to develop its highly popular i-Zone which could print miniphotos that could be stuck anywhere. The company asked the representatives of its target population to visit a private online research site and gather their ideal i-Zone with different features that they valued. The results showed that the respondents viewed the product as a fashion accessory and wanted different styles. These characteristics of i-Zone were totally unpredictable with the features that some Polaroid engineers originally envisioned. The internet helped the company to understand its customers better and design the product the way they wanted. Even though the internet can help generate new ideas effectively and efficiently, firms still worry that people who take part in online generation
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sessions may not represent the target customers. However, if the potential buyers of a new product do not fit into such a profile then the firms may not be able to learn their opinions. In fact, even Polaroid Corp. had to use other more traditional market research techniques along with the internet in order to get better representative sample and also to validate the results of the online idea generation. In the preliminary investigation stage, the internet allows companies to collect market intelligence and also to identify market trends. This investigation helps in assessing the feasibility of the new product ideas more effectively before making substantial commitments on developing the ideas. Organisation can surely generate ideas by searching the web sites of their competitors and other related firms. However, it should be kept in mind that such ideas do not always work and that the industries and companies realities may not be comparable. For example, rival companies can visit Dell computers website and try to learn about their business models, prices and products as this information does not automatically lead to successful ideas for their firms. Detailed Investigation In the detailed investigation stage, the organisations can conduct a more complete study to build a business case for the new product idea so that it can be developed further. Activities in the detailed investigation phase may consist of detailed financial and business analyses. A key activity in this stage involves identification of suppliers for the new product ideas. The internet helps in locating a suitable supplier within a short period of time. Example, Dynacut Inc., a producer of diamond saws, abrasive saws and cutting systems, wanted to find a source for a high-speed and high-precision aircraft aluminium rotary seal housing, which would have a tolerance of 0.0005 inch for its new prototype. As the organisation failed to find a local supplier, it used the Internet to search for a supplier and get a price quote. This way, it was able to receive four quotes from qualified suppliers within a week. Without the help of Internet, the company would have had to spend two months identifying the local suppliers and also would have had to wait for a few more weeks to receive a price quotation. In addition, as soon as it received the price quotations through the Internet, it started to collaborate

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with the suppliers on part designs, ask questions and seek advice from other experienced professionals through the online message boards. Online auctions are a special case of identifying suppliers through the Internet. Here, the organisations can place a request for quotes for the items necessary to develop their new products in such auctions, so that they can estimate the costs of the items and also determine suitable suppliers of the items. With online trade auctions, buyers can place their requests for quotes and the suppliers can respond with bids in a short period of time that helps in speeding up the NPD decision-making process. Online trade auctions have become popular. But, one problem with them is that companies may not be aware of the suppliers and so will have to worry about their reliability. So, online auction companies use a rating system that identifies the integrity and credit worthiness of the suppliers involved. Also, companies using online trade auctions for their NPD activities have to follow certain guidelines to take full advantage of the offerings of such auctions. For example, Procter & Gamble make use of these auctions to purchase items such as, bottles, packaging materials and ingredients for their new and existing products. It uses the auctions only when there are a number of suppliers whose capabilities can be interchangeable and the suppliers understand the specific requirements of the order, the details of the auction and the benefits of participating in the auctions. Activity 2 ACB is an American based company and is planning to globalise their operations. They want to set up companies in India, China and Canada. What are the steps that the company will have to perform international operations? Self 6. 7. 8. Assessment Questions CIM stands for ___________. Define CIM. _________ and __________ are the commonly used techniques in operations management. 9. OC curve can be plotted using ___________. 10. NPD stands for __________________.
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15.8 Summary
Computers can be used as manufacturing information systems. Here, the manufacturing management uses the computer both as a Physical system and Conceptual system. The computer as part of Physical System consists of Computer Aided Design (CAD), Computer Aided manufacturing (CAM) and Robotics. Computer Aided Manufacturing or CAM helps the firms to manufacture quality products according to customer demands in a short time and also to meet the increasing competition level in a short time. Computer-Integrated Manufacturing is the manufacturing approach where computers are used to control the entire production process. The special features of the software used for operations management includes process analysis, waiting line management, project management, forecasting, inventory, aggregate planning and quality management. New Product Development (NPD) processes that match the requirements include speed, convenience, interactivity and the world wide coverage of the internet.

15.9 Terminal Questions

1. Describe Computer-Aided Manufacturing. 2. What are the three major challenges faced by Computer Integrated Manufacturing? 3. Define RTOS. Name and explain the two basic designs for RTOS. 4. What are special features of the software used for operations management? 5. Explain the impact of internet on new product development.

15.10 Answers
Answers to Self Assessment Questions 1. Physical and Conceptual 2. Computer-Aided Design 3. Numerical Control programming tool 4. R= L*U+S 5. G-code 6. Computer Integrated Manufacturing 7. CIM is defined as the integration of information technology with manufacturing systems and processes, with the goal of manufacturing products more efficiently and effectively
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8. Pert and CPM 9. Acceptance sampling module 10. New product development Answers to Terminal Questions 1. Refer section 15.3 2. Refer section 15.4 3. Refer section 15.6 4. Refer section 15.7 5. Refer section 15.9

15.11 Case Study

RCB is a new manufacturing company. It wants to adopt new manufacturing process to cope up with uncertainty. For this the manufacturing management wants to opt for new equipment in order to reduce long run, troublesome uncertainties which can be done at the expense of introducing considerable short run uncertainty associated with innovation. The company has developed ideas by exploring and comparing how four firms in different countries adopted and integrated manufacturing systems (CIM). Some rounds of qualitative interview have been done with managers at different hierarchical levels and in different functions got them answers to the following questions: 1. What were the reasons to adopt CIM? 2. What strategies were employed in order to facilitate the introduction of CIMs into the firm? 3. What were the significant implementation problems that were encountered?

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15.12 Glossary
Term Conveyors Description A mechanical apparatus consisting of a continuous moving belt that transports materials or packages from one place to another with the help of endless loop of flexible material between two rotating shafts or pulleys. A company's merchandise, raw materials and finished and unfinished products which have not yet been sold. These are supposed to be the liquid assets as they can be converted into cash quite easily Use of a computer-generated system to represent the dynamic responses and behaviour of a real or proposed system. These are used to study the behaviour of objects or systems that cannot be easily or safely tested in real life. Examples are weather patterns or a nuclear blast Latency is a measure of time delay experienced in a system, the precise definition of which depends on the system and the time being measured.

Inventory

Simulations

Latency

References 1. Computer-aided management by Noman Sanders 2. Computer-aided management by Sanjeev Gupta, Shameena Gupta 3. Integrated models in production planning by M.A Rahim, Mohamed BenDaya

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