INDUSTRIAL SYSTEMS

SYSTEM means order and arrangement. More simply, a system is a collection of interacting
components.
A system is a designed set of interdependent components/variables aimed at achieving some
desired objectives.
Simply, a system is a purposeful collection of people, objects, and procedures for operating within
an environment.
So, a production system is a design process by which elements (inputs) are transformed into
useful products.

So, an industrial production system must have INPUTS (resources-capital, materials,

machines/equipment, facilities, men, supplies, information and time), a TRANSFORMATION
PROCESS (alteration, transportation, storage, inspection), and OUTPUT/RESULTS
(product/services).

Inputs Transformation
• Materials Conversion processes,
• Manpower • Alteration
Outputs
• Machine • Transportation
• Energy • Storage
• Goods and
• Customer • Inspection interfacing
• Services
orders and interactive (revenue)
• Economic relationships
indicators
• Prices (fixed costs)
(var. costs)

A dynamic system must have feedback mechanism. And to be an open system, that we would like
to discuss, must be interacting with the ENVIRONMENT. The environment means, those
elements that affect the operations function but cannot be controlled within it -- Technology,
Customers, Competitors, Economy, Government regulations, International change, Suppliers,
Political and organization issues, and what not!

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 Suppliers ENVIRONMENT Economy International
Technology
• Goods • Goods • Goods • Goods
• Goods • Services • Services • Services • Services
• Services Transformation
(revenue) (revenue) (revenue)
Inputs
(revenue)
(revenue)
• Materials Conversion processes,
• Manpower • Alteration
• Transportation Outputs
• Machine
• Storage
• Energy • Goods
• Inspection
• Customer interfacing and • Services
orders (revenue) Monitor
interactive
• Economic relationships
indicators
• Prices (fixed costs)
(var. costs)

Customer Govt. regulations Competitors ENVIRONMENT

• Goods • Goods • Goods • Goods

• Services • Services • Services • Services
Terminology
(revenue)and Definitions
(revenue) (revenue) (revenue)
• System - a set of components or subsystems related by some form of interaction, acting
together to achieve some common purpose.
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• Components - the individual parts, or elements, that collectively constitute a system.
• Subsystem - elements of hierarchical levels involved in a particular system, lower level
elements are called subsystems. Parts of the subsystems are called components.
• Relationship - functional or logical dependency between components of a system.
• Interaction - mutual interplay between two or more system elements operating concurrently
(say, human-machine interaction)
• Purpose - the fundamental reason for the system’s existence.
• Function - a purposeful action performed by a system (say, information processing..)
• Attribute - a characteristic or property of a system component that is pertinent to the system
of interest (say, tolerance..)
• Environment - a set of all object
• ts, within specified limits, that may have influence on, or to be influenced by, the operation of
the system of interest.
• Boundary - a specified demarcation that prescribes a limit within which the components,
attributes, and their relationships are sufficiently explained.
• Open system - a system that regularly exchanges across its boundary materials, energy, or
information with its environment.
• Closed system - no interchange of material, energy, or information with its boundary
(theoretically).
• Input - That which passes from the environment, across the boundary, into the system during
the time frame f interest.
• Output - That which passes from the system proper, through the boundary, into the
environment.
• Throughput - That which passes into a system, is usually modified in some way, and then
passes out of the system.
• Process - The set of system components, their attributes, and interrelationships required to
produce a given result.
• Transformation - The changing of inputs into outputs. In manufacturing firms its results
added economic value.
• Constraint - A limit imposed upon the system.
• Feedback - Information relative to the output of the process that is returned to the source of
the process controller, such that the actual output may be compared with the desired output, and
any appropriate corrective action determined prior to subsequent operation of the process.
Feedback exists in a system when a closed sequence of cause-and-effect relationships between
system elements.
• Control - that which guides, directs, regulates, or constrains, with the particular control action
determined from feedback.
• System state - the condition of the system at any instant, indicated by the values of the system
variables.
• Dynamic system - a system whose behavior varies with time.
• Total system - The set of all subsystems, components attributes and relationships necessary to
achieve the basic purposes of a system given its constraints.

Models of Production Systems

A model is an abstraction or a part of the real world. It represents the essential
characteristics of a process - relationship between cause and effect, objectives and
constraints.
• Physical model: physical images, magnified for investigation.
• Schematic model : schematic charts or templates. Examples are symbolic charts for activities,
maps of routings, graphics for price fluctuations, flow process charts, bar charts, etc.
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• Mathematical model: Quantitative expressions, the most abstract models, and the most useful.
Formulas and equations. Provides a powerful study tool; easy to manipulate and clearly shows the
effect of interacting variables. Need strong assumptions.
Model formulation is often subject to satisficing, means a sacrifice of reality for the sake of
workability, but essential characteristics of the system must be retained in the model.

Systems thinking: logical relationship between/among the interacting parts/activities and

making/generating the easier way of doing/performing.

TWO levels of I.E. systems

1. Human Activity System : concerned with physical environment.
2. Management Control System: procedures for planning, measuring, and controlling activities.
1. Human Activity System
- the production process itself
- machines and equipment
- methods
- facility layout and specification of material handling
- material handling eqpt. and procedure
- workplace design
- storage space size and location
- data recording procedure
- maintenance and housekeeping
- safety measures

2. Management Control System

- planning system
- forecasting
- budgeting and economic analysis
- wage and salary plans
- incentive plans
- employee relations system
- inducting, training, and placement of employees
- MRP
- inventory management and control
- production scheduling
- dispatching
- progress and status reporting
- corrective action procedures
- quality control system
- cost control and reduction
- resource allocation
- organizational design
- decision support systems (DSS)
- overall information system

System Classifications
• Natural or God Created Systems
• Man-made Systems
• Static and Dynamic Systems
• Physical and Abstract systems

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Manufacturing Systems
• # Flexible Manufacturing System (FMS)
• Manufacturing facilities that could quickly be modified to meet rapidly changing customer
demand.
• # Expert system
• Replace traditional information technology when the solution to a problem relies
exclusively on know-how that replicates the behavior of human experts. Artificial
intelligence (AI) and Knowledge Based System (KBS).
• # Manufacturing Resources Planning (MRPII)
• Methods for master production scheduling, detail shop floor scheduling, and shop floor
corrective action.
• # Just-in-time (JIT)
• Just in time production according the demand of the customer (What, When, and How
much??).

Computer-Integrated Manufacturing (CIM)

Total integration of product design and engineering, process planning, and manufacturing by
means of complex computer systems. But it is the factory of the future.

Technologies that comprise CIM are:

• CAM: design production process, control m/s tools and material flow.

• CAD: design new parts/products or altering existing ones. Store, retrieve and classify data.

• CAD/CAM: integrate the design and manufacturing functions, giving detailed m/c instructions.

• NC M/cs: large m/c tools preprogrammed to produce small-to-medium sized batches of

intricate products/parts

• CNC m/c: programmable automation controlled by own microcomputers.

• Industrial robots: glamorous than NC workhorses. Computer controlled and versatile in use.
Various movement and can do the job where human approach is very risky (handling
radioactive mat.)

• Automated material handling: moving, handling and storing a part/product. Not value adding.
Automate and reduce costs. Position strategy: product focus (repeatability) automation is easy;
process focus (little repeatability) workers must move mat.
AGVs (automated guided vehicles): small, driverless, battery-driven, takes instruction from a
central computer or on-board; cable installed (older), optical path follower (newer).
AS/RS (automated storage and retrieval system): computer controlled storing and retrieval
technique using racks, bins and stackers. No aid of manpower.

• FMS (Flexible manufacturing systems): a configuration of computer controlled, semi-

independent workstations where materials are automatically handled and m/c loaded. Large
initial investment but virtually unmanned. Its components are:
1. Several computer-controlled workstations: CNC m/cs or robots, performs series of operations.
2. Computer-controlled transport system: AGVs and/or AS/RS
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3. Loading and unloading (L/U) stations

What Flexibility is needed (types):

• Volume flexibility
• Product mix flexibility
• Materials flexibility
• Capacity flexibility
• Lead times flexibility

Why FMS (advantages):

• Synchronize activities and maximize system utilization.
• Avoid bottleneck by changing routing
• Space saving, Speed of response, Low variable cost
• Consistency & Quality
• Minimal labor expense
• Programmed machining instructions

Limitations
• Extremely high initial costs
• May not be successful, Preplanning is essential
• Limited flexibility! Flexibility to what is normally produced.

SUBSYSTEMS
• Complex systems also have smaller systems.
• Each component of a large system could be a system unto itself in a descending order of
simplicity. For instance, most organizations have an office system that supports staff system,
that in turn, support the system that produces the end product.

Subsystems of a system
• Production system
• Inventory control system
• Wage incentive system
• Inspection system
• Information system
• Computer system
• Programming system
• Scheduling system
• Work measurement system
• Accounting & finance system.,
Are they independent? NO! Subset of....

Ex. Think about You. You are an element of “world” education system! You are also an element
of many other systems (family, Masjid/church, social group/club, etc.)

World economy: Economic systems, natural environment, political power, etc.

Subsystems must focus towards the Goal of the organization.

If conflicting (dysfunctional) objectives between subsystems, the organization may not be
operating at its best or optimum level (but sub-optimized system). An action designed to cut costs
in one area could actually decrease total profit. Avoid sub-optimization.
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Insular Sub-optimization: A tendency to focus on the solution to a particular issue at the
expense of wider welfare.
Ex. Decisions to save one ailing product in a product family may poison the other family
members.

Temporal sub-optimization may be illustrated from Make-or-buy decisions. It’s a curse of

shortsighted planners, as it leads to a loss of tactical efficiency through not looking far enough
ahead.

Systems Theory
System control: cybernetics (thermostat example). Feedback, the key to operation (input-output
control).
• Many factors affecting the system
• Impossible to consider all factors
• Factors: controllable & uncontrollable
• Not all decisions are major
• So, no need to deal with all related data.

Systems theory encourages the identification of significant interactions and consideration of their
combined influence on a decision.

System Control

A. Open-loop system

System
Input performance Output

Desired output Controller Signal Proces Actual

response s output

• System is not aware of its performance.

• Past action has no influence on future action(s)
• Possesses no means to provide for its own control
• Output = f(input) but input is not a function of output.

B. Closed-loop system
System
Input performance Output

Feedback

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 Desired
output Correction Signal
Actual
respons Compa Controller Proces output
e rison s

Measurement

• System is aware and influenced by its past performance.

• Senses its performances and automatically makes adjustment.
• Possesses no means to provide for its own control
• Output = f(input), and input = g(output).

Ex. Thermostat monitor-control system.

Feedback and feedforward mechanisms in manufacturing/industrial system

A manufacturing system is an open system which must interact internally as well as externally. A
number of input factors such as raw materials and components, strength of employees, and
equipment conditions determine the output quantities, production rate, quality, etc. Many external
factors like completive position, government regulations, zonal environmental restrictions, and
technology are also involved. These factors are interrelated and over the time dynamic in nature.
Without having some feedback and feedforward mechanism, a manufacturing system cannot be
controlled.

Feedforward
Production plan and
Decision process
• Production rate
• Break-even Quantity
• Hours of operation
Inputs
• Overtime
• Materials
• Outside contract
• Labor Production
• Etc
• Machine process
• Output
Energy • Manufactur
• Customer orders ing parts • Goods &
Yes
• services
Economic indicators • Assembling
• Prices • Scrap
• Pollution
Are results
Determining No
satisfactory
corrective action
to plan? Feedback on actual results