Chapter         8

Manufacturing Systems

8.1 Introduction
Manufacturing systems consist of all the processes, technology and resources required for
converting the raw materials into finished goods. It consists of all the resources required to
transform the material from its raw form to finished form. The resources involved in this
transformation process may be men, materials, money, machines, management, energy, etc.
A manufacturing system’s components may be broadly categorized as:
(a) Production machines, tools, jigs, fixtures, etc.
(b) Material handling systems
(c) Computer systems
(d) Human resources
Production machines, tools, fixtures and other related hardware: In manufacturing systems,
the term ‘workstation’ refers to a location in the factory where some well-defined operations are
accomplished by men or/and machines. The machines used in manufacturing or assembly can
be classified as:
• Manually operated machines
• Semi-automated machines
• Fully automated machines
Manually operated machines: In manually operated machines, the machines only provide the
power for operations, but the control of operations is totally with operators. An operator is
required to be at machine continuously during operation.
Semi-automated: A semi-automated machine performs a portion of the work cycle under some
form of program/automated control, and a worker tends to the machine for the remainder of the
cycle. Typical worker tasks include loading and unloading parts.
Fully automated: A fully automated machine operates for extended periods (longer than one
work cycle) without involvement of worker in the operations.
Material Handling System
The main objectives of a material handling system are to load the job at each workstation, position
the job at each workstation, unload the job at each workstation, transport the job between stations
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in multi-station manufacturing systems and store the finished jobs into the storage. Material
handling systems are discussed in detail in Chapter 9.
Computer Systems
A computer system is required to control the functions of the machines and to participate in the
overall coordination and management of the manufacturing system. The objectives of a computer
system are to give instructions to workers, transform part programs to machine language, control
the material handling system, schedule production, monitor safety measures, control the quality
of job to be produced, etc.
Human Workers
Two types of labours are involved in a manufacturing system: direct labours and indirect labours.
Direct labours perform some or all of the value-added work that is accomplished on the job. They
directly add the value to the job by performing manual work on it or by controlling the machines
that perform the work. While indirect labours manage or support manufacturing activities without
directly involvement in job processing. All the administrators, marketing personals, financial
managers, human resource managers are indirect labours.

8.2 Flexible Manufacturing System

Flexible manufacturing system (FMS) is a highly automated group technology (GT) machine
cell, consisting of a group of processing stations (usually computer numerical control (CNC)
machine tools), interconnected by an automated material handling and storage system, and
controlled by an integrated computer system. It can process different part style in the non-batch
mode. It can accommodate changes in production schedules and new part designs. It can respond
to equipment malfunction and machine breakdowns.

8.2.1 FMS Components

Usually, FMS consists of processing workstations, material handling devices and control
software. These components of FMS are discussed below as:
1. Processing stations (numerical control (NC) machine tools, CNC, direct numerical
control (DNC)): These are the programmable workstations and able to accommodate
the changes in the design of the product without losing the time. New product design
can be easily accommodated for processing on these work centres.
2. Automated material handling and storage system (AMHSS)
• Automated guided vehicles (AGVs)
• Conveyors
• Automated storage and retrieval systems (AS/RS)
• Industrial robots
These are the material handling devices used to transfer the components from one work
station to another. This is also used for loading and unloading of the components on the
work centres.
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3. Control software: Control software is the computer program which is used to control
the entire operation in the systems.
4. Human workers: Human workers are used to control the entire activity, including
alterations in the computer programs.
FMS workstations: FMS workstations consist of the following facilities:
1. Machining centres
2. Head changers
3. Head indexers
4. Milling modules
5. Turning modules
6. Assembly workstations
7. Inspection stations
8. Sheet metal processing machines
9. Forging stations

8.2.2 FMS Layout Configurations

1. In-line: There are two types of arrangement in in-line layout, in the first type parts move
in only one direction. Parts enter from one side and out from the other side after being
processed on various workstations as shown in Figure 8.1. But, in the second type of the
arrangement, parts may flow in both the directions as shown in Figure 8.2.
Conveyor
Part in Part out

Automated Automated Automated Automated Automated

workstation workstation workstation workstation workstation

Figure 8-1: In-line arrangement for unidirectional flow of the parts

Conveyor
Part in/out

Automated Automated Automated Automated Automated

workstation workstation workstation workstation workstation

Figure 8-2: In-line arrangement for flow of the parts in both directions
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2. Loop: In the loop arrangement, the parts enter at one point in the loop and they move
in the loop as the machines are arranged in the loop for the processing and finally, it
leaves the loop after complete processing as shown in Figure 8.3.
3. Ladder: Workstations are arranged in the ladder form and parts move in the same
fashion as shown in Figure 8.4.
4. Open field: In the open-field arrangement, the layout of the workstations is slightly
complex and parts are transferred using AGVs. The path of movement is already
programmed. The arrangement is shown in Figure 8.5.

Automated Automated Automated Auto. workstation

workstation workstation workstation

Auto. workstation
Part out

Part in

Auto. workstation

Automated Automated Automated Part in Part out

workstation workstation workstation

Figure 8-3: Loop arrangement of workstations Figure 8-4: Ladder arrangement of workstations

Part out

AGV
Part in

AGV

AGV

Figure 8-5: Open-field arrangement of workstations

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5. Robot-centred cell: In robot-centred cell, parts are loaded and unloaded and also
transferred from one workstation to another with the help of robot as shown in Figure 8.6.
Robot

Auto. workstation Auto. workstation

Figure 8-6: Robot-centred cell

8.2.3 Functions of Computer in FMS

The following are functions of computer in FMS:
1. Control of each workstation
2. Distribution of control instruction to workstations
3. Production control
4. Traffic control
5. Shuttle control
6. Work handling system monitoring
7. Tool control
8. System performance and monitoring

8.2.4 FMS Data Files

FMS data files consist of the following files.
Part program file: It consists of part programs for each workstation.
Routing file: It consists of a number of alternate route sheets.
Part production file: It consists of production rates for various machines, in-process inventory,
and inspection required and so on.
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Pallet reference file: It consists of the record of the part which requires pallet fixtures.
Station tool file: It consists of the tool records for different workstations.
Tool life file: It keeps the record of the tool life for the different cutting tools.

8.2.5 FMS Planning

FMS planning is influenced by the following factors:
1. The volume of the work to be produced by the system.
2. Variations in process routings.
3. Physical characteristics of the working parts.
4. Part families defined according to product commonality.
5. FMS manpower requirement.
6. Appropriate production volume range.
7. Minimum number of machines per FMS.
8. Minimum normal tolerance at work in an FMS.

8.2.6 FMS Benefits

The following are benefits of FMS:
1. Higher machine utilization.
2. Reduced work in progress.
3. Lower manufacturing lead time.
4. Greater flexibility in production scheduling.
5. Higher labour productivity.

8.3 CAD/CAM
Computer-aided design and computer-aided manufacturing (CAD/CAM) involves the use of the
computer to accomplish certain functions in design and manufacturing. CAD is concerned with
the use of the computer to support the design functions; and CAM is concerned with the computer
to support manufacturing functions. The combination of CAD and CAM in the symbolic form is
represented as CAD/CAM to integrate design and manufacturing functions in a firm.

8.3.1 Computer-aided Design

CAD can be defined as any design activity that involves the effective use of computer to create,
modify and document an engineering design. There are four phases of CAD:
• Synthesis (Geometric modelling).
• Analysis and optimization (Engineering analysis).
• Evaluation (Design review and evaluation).
• Presentation (Automated drafting).
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Geometric modelling is concerned with the mathematical description of the geometry of an

object. The mathematical description, called a model, is fed into computer memory. The image
is displayed on a graphics terminal to perform certain operations on the model. There are various
types of geometric models in CAD: wire frame and solid models, coloured and animation, two
dimensional and three dimensional.
The second phase is engineering analysis, which includes the stress–strain calculations,
heat transfer analysis, dynamic simulation and optimization. The CAD system increases the
designer’s analysis ability.
The third phase is design evaluation and review procedures. Some CAD features which are
helpful evaluating and reviewing a proposed design include:
(a) Automatic dimensioning routines.
(b) Interference checking routings.
(c) Kinematics routines.
The fourth phase where CAD is useful in the design process is presentation and documentation.
The CAD system can be used as automated drafting machines to prepare highly accurate
engineering drawing quickly. It is estimated that a CAD system increases productivity in the
drafting function by five times the manual preparation of the drawing.
Objectives of CAD system: The objectives of CAD system are to increase the productivity of
the designer, improve the quality of the design, improve the design documentation, create a
manufacturing database.

8.3.2 Computer-aided Manufacturing

CAM is mainly used for manufacturing planning and manufacturing control. In manufacturing
planning computer is used indirectly to provide information for the effective planning and
management of production activities. The computer is used for following planning activities:
1. Cost estimating.
2. Computer-aided process planning (CAPP).
3. Computer-assisted NC part programming.
4. Development of work standards.
5. Computer-aided line balancing.
6. Production and inventory planning.
Manufacturing control: It is concerned with managing and controlling the physical operations in
the factory to implement the manufacturing plans. Mainly three types of controls are required in
manufacturing as discussed below:
Shop-floor control: It is concerned with the problem of monitoring the progress of processing,
assembling, and inspection of the products in the factory.
Inventory control: It is concerned with the demand fulfilment and also to reduce the inventory
to eliminate the wastage and extra money investment. Thus, the optimum inventory size is
maintained based on accurate demand forecasting.
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Quality control: The purpose of the quality control is to assure that the quality of the product and
its components meet the standards specified by the product designer. To accomplish its mission,
quality control depends on the inspection activities performed in the factory at various times
throughout the manufacture of the product.

8.3.3 Computer-aided Process Planning

Process planning is concerned with the preparation of rout sheets which list the sequence of
operations and work centres required to produce the product and its components. CAPP is
available today to prepare these route sheets. The route sheet typically lists the production
operations, machine cells or workstations where each operation is performed, fixtures and tooling
required, and the standard time for each task. There are two approaches of CAPP systems:
1. Retrieval or Variant CAPP systems.
2. Generative CAPP system.
Retrieval CAPP systems: Retrieval CAPP systems are based on GT and part classification and
coding system. In this method, a search is made of the part family file to determine if a standard
route sheet exists for the given part code. If the file contains a process plan for the part, it is
retrieved and displayed for the user. The standard process plan is examined to determine whether
any modifications are required. It might be possible that the new part has the same code number,
there are minor differences in the process required to make the part. The user edits the standard
plan accordingly. Thus, the capacity to alter an existing process plan that gives the retrieval
system its other name: variant CAPP system.
If the file does not contain a standard process plan for the given code number, then the user
may search the computer file for a similar or related code number for which a standard route
sheet does exist. Either by editing an existing process plan, or by starting from scratch, the user
writes the route sheet for the new part. This route sheet becomes the standard process plan for
the new part code number.
Generative CAPP system: A generative CAPP system creates the process plan based on logical
procedures a human planner would use. The design of generative CAPP is based on the artificial
expert system. An artificial expert system is a computer program that is capable of solving complex
problems that normally require a human being who has years of education and experience. There
are several ingredients in this system. First, technical knowledge of manufacturing and the logic
that is used by successful process planners must be captured and coded into a computer program.
The second ingredient is a computer-compatible description of the part like geometric model
of CAD system of the part and GT code number of the part that defines the part feature in
detail. The third ingredient is the capability to apply the process knowledge and planning logic
contained in the knowledge base to a given part description.
Advantages of CAPP
There are following advantages of CAPP:
1. Process rationalization and standardization which results in a low cost of production
with high quality of product.
2. Increased productivity of process planners.
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3. Reduced lead time for process planning.

4. Improved legibility.
5. Incorporation of other application program.

8.3.4 Numerical Control

Numerical control (NC) can be defined as a form of programmable automation in which the
machining process is controlled by numbers, letters and symbols. NC technology has been
applied to a wide variety of operations, but principal application is in machining operations. An
operational NC system consists of the following three basic components:
(a) Program of instruction.
(b) Controller unit.
(c) Machine tools.
The program of instruction consists of details of the sequence of operations in symbolic, numeric,
or alphanumeric form on any medium like tape, which can be interpreted by the controller unit.
The controller unit consists of the electronics and hardware that read and interpret the program of
instructions and convert it into mechanical actions of the machine tool. The typical elements of the
conventional NC controller unit include the tape reader, a data buffer, signal output channels to
the machine tool, feedback channels from the machine tool, and the sequence control to coordinate
the overall operation of the forging element. Machine tool is the part of NC system which performs
useful work. It also includes the cutting tools, work fixtures and other auxiliary equipment needed
in the machining operation. The three components of NC system are shown in Figure 8.7.

Program Machine Processing

control unit equipment

Figure 8-7: NC components

Limitations/drawbacks of the Conventional NC System

There are following limitations/drawbacks of the conventional NC system:
• Part programming mistakes in punched tape are common.
• Short life of punch tape due to wear and tear.
• Less reliable tape reader component.
• Less flexible hardwired controller unit.
• Non-optimal speed and feed.

8.3.5 Computer Numerical Control

The structure of a CNC system is almost similar to NC system, but the way of using the program
is different. In a conventional NC system, the punched tape is cycled through the tape reader for
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each work part in the batch. The machine control unit reads in a block of instructions on the tape,
executing that block before proceeding to the next block. In CNC, the entire program is entered
once and stored in computer memory. The machining cycle for each part is controlled by the
program contained in memory rather than from the tape itself. The general configuration of CNC
system is shown in Figure 8.8.

Computer
Tape reader Microcomputer
NC program hardware
for program (Software
storage interface and
entry function)
servo system Processing
equipment

Figure 8-8: Components of CNC systems

The following features are associated with CNC system:

1. Storage of more than one program.
2. Use of floppy/discs.
3. Program editing on the machine tool site.
4. Fixed cycles and programming subroutines.
5. Interpolation.
6. Positioning features for set-up.
7. Cutter length compensation.
8. Diagnostics.
9. Communication Interface.

Advantages of CNC System

There are following advantages of CNC system:
1. The part program tape and tape reader are used only once to enter the program into the
memory.
2. Tape can be edited at the machine site.
3. Greater flexibility.
4. Metric conversion.
5. Compatible with total manufacturing information system.

8.3.6 Comparison of NC and CNC Machines

NC machines offered a reliable way of producing machine parts using pre-programmed commands.
These commands consisted of alphanumeric characters defined by the RS233 IEEE code. These
characters were coded on punch paper tape in formats specifically planned for a certain machine
tool. These programs (punched tape) would then read into the NC control using a paper tape
reader. If during testing a program error were detected, the paper tape would have to be edited. This
process meant duplicating a tape up to the incorrect character(s), retyping the correct characters,
 Manufacturing Systems  159

and then continuing with the duplication process. This was a time consuming process. During
the running of NC programs, if a tool would begin to wear causing part dimensions to approach
tolerance limits, the operator would have to stop and adjust the tool(s) to compensate for this wear.
In CNC machines, data for the control are still coded using either RS233 or the newer, more
acceptable RSxyz ASCII code (American Standard Code for Information Interchange). Entire
CNC programs may be loaded into the memory of the CNC control enabling the programmer
or machine operator to edit the programs at the machine. If program changes are required, many
CNC machines have built-in paper tape punch machines that allow for the generation of a new
tape at the control. Tool wear is handled by adjusting program data in memory or calling in from
a tool register one of several pre-programmed tool offsets.
As the implementation of microprocessors expanded, OEM’s (Original Equipment
Manufacturer’s) of NC/CNC machines began using them in the construction of controls. By the
late 1970s, nearly all NC/CNC manufacturers were using microprocessors (computers) in their
controls. Today the phrase NC is commonly used when referring to CNC machines because the
need to differentiate the two no longer exists. Today, ALL modern NC machines are in fact CNC
machines.

8.3.7 Direct Numerical Control

Direct numerical control (DNC) can be defined as a manufacturing system in which a number of
machines are controlled by computer through direct connection and in real time. The tape reader
is omitted in the DNC, thus relieving the system of its least reliable component. Instead of using
the tape reader, the part program is transmitted to the machine tool directly from the computer
memory. In principle, one computer can be used to control up to 256 machine tools. When the
machine needs control commands, they are communicated to it immediately.
The DNC system consists of following four components as shown in Figure 8.9.
1. Central computer.
2. Bulk memory, storage of NC part programs.
3. Telecommunication lines.
4. Machine tools.

Central Bulk memory

computer NC programs

Telecommunication lines

Workstation 1 Workstation 2 Workstation 3 Workstation 4 Workstation 5

Figure 8-9: General configuration of DNC

160  Industrial Engineering and Management

Advantages of DNC System

There are following advantages of DNC system:
(a) Time saving due to control of more than one machine by a single computer.
(b) Greater computational capability for such functions as circular interpolation.
(c) The remote computer location is a safe environment.
(d) Elimination of tapes and tape reader at the machine for improved reliability.
(e) Elimination of hardware controller unit on some systems.
(f) Programs stored as cutter location data can be post processed for whatever suitable
machine is assigned to process the job.

8.4 Lean Manufacturing

Lean manufacturing is a management philosophy coined by the Toyota Motor Company.
The concept of lean manufacturing is derived from the Toyota Production System (TPS).
Lean manufacturing is a philosophy that considers the expenditure of resources for any ­non-­
value-added process is a waste and it has to be eliminated. Lean manufacturing incorporates a
number of management tools, such as just in time, total quality management, total productive
maintenance, Kaizen, etc. Lean production is interchangeably used with the TPS; the main
aim of lean production is to reduce the seven categories of wastes: defects, overproduction,
transportation, waiting, inventory, motion and processing. Some of the major lean tools applied
in the manufacturing industry are identified as in their paper on a lean supply chain, the 15 tools
identified by them were: planning, just-in-time (JIT)/pull systems, Kaizen, Kanban, Poka-Yoke,
research and development (R & D), safety practices, six sigma, statistical process control (SPC),
total productive maintenance (TPM), total quality management (TQM), TPS, value stream
mapping (VSM) and 5S.

8.4.1 The 3 M’s of Lean (Muda, Mura and Muri)

Muda
Lean manufacturing is a Japanese method focused on 3 M’s. These M’s are: muda (waste),
mura (inconsistency) and muri (unreasonableness). Muda specifically focuses on activities to be
eliminated. There are different categories of wastes in manufacturing industry. Waste is broadly
defined as anything that adds cost to the product without adding value to it. Generally, muda
(or waste) can be grouped into the following categories:
1. Overproduction and early production: Overproduction may cause waste because it
captures resources too early and retains the value that is added to the product until it is
used or sold. The production of a product well before its use means there is chance to
obsolete the product even if a perfectly good product is produced. Producing a product
simply to keep a production resource busy is a wrong practice and that must be avoided.
2. Delays: Various delays, such as delay in supply of raw materials or components result in the
underutilization of resources and increased delivery time. Raw materials and component
parts should be completed at the right time. Too early is not good, but late is even worse.
 Manufacturing Systems  161

3. Movement and transport: Unnecessary movement and transportation must be avoided.

Material handling is required in all the manufacturing operations, when possible, the
handling should be integrated with the process; and the transport distances should be
minimized.
4. Poor process design: A poorly designed process results in the misuse/waste of
manufacturing resources. A single process may not be the perfect process. Process
improvements are made continuously with new efficiencies embedded within the
process. Continuous process improvement is very important part of lean manufacturing.
5. Over inventory: Over inventory increases the inventory costs. It is common practice for
a manufacturer to store a supplier’s product on the production site. The supplier, right up
until the time that they are drawn from inventory, owns the materials. In many ways this
is advantageous to both the user and supplier. The supplier stores his material off-site,
and the user does need to commit capital to a large ‘safety stock’ of material.
6. Inefficient performance of a process: Insufficient (or poor) process performance may
result in the over utilization of manufacturing resources. There is no single optimal
process that can always be better than the other process. Many processes operate far
below the desired efficiency. Continuous process improvement is necessary for a
manufacturing firm to remain competitive. Excess material and human movements
must be avoided in the process of waste elimination.
7. Making defective items: Poor quality is never desirable. The production of defective
items always results in labour and material waste. Furthermore, the cost of rework
increases the price of the product. A process should be run as fast as possible without
sacrificing acceptable quality.
Thus, waste in any form must be eliminated from the systems. Waste always results in inefficiency
and high costs.
Mura
The second ‘M’ is used for mura or inconsistency. Inconsistency is responsible for the variability
in manufacturing parameters. Mura can be observed in all manufacturing activities. Due to lack
of consistency, there may be variation in dimensions and specifications of the product, which
may be treated as scrap or may require rework.
Muri
The final ‘M’ is used for muri or unreasonableness. Muri applies to a variety of manufacturing
and management activities. An example of being unreasonable by blaming someone for problems
rather than looking at resolution of problems. It is unreasonable to blame rather than mitigate
issues. To develop a new culture for eliminating the blaming practice, following points must be
considered as the management tool:
1. Problems are recognized as opportunities.
2. It is okay to make legitimate mistakes.
3. Problems are exposed because of increased trust.
4. People are not problems – they are problem-solvers.
5. Emphasis is placed on finding solutions instead of ‘who did it’.
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Much of lean manufacturing is applying ‘common sense’ to manufacturing environments.

In implementing Lean, 5 S’s are frequently used to assist in the organization of manufacturing.
The 5 S’s concepts are discussed in detail in Chapter 12 of this book.

8.4.2 Toyota Production Systems

Toyota is a renowned company in automobile manufacturing industry and also, for the world-
famous TPS (Toyota Production System, i.e., Lean manufacturing). Founder of Toyota motors,
Kiichiro Toyoda was forced to develop the most cost-efficient strategies in order to keep the
company competitive. Taiichi Ohno, principal inventor of the concept Toyota Production
Systems (TPS), has been quoted a very useful sentence as ‘Having no problem is the biggest
problem of all.’
Following are the principles of lean manufacturing.
1. To cut lead time, cut out all the activities that do not add value.
2. A line must stop if there is a problem.
3. Deal with defects only when they occur, and less staff will be needed.
4. Ask yourself ‘Why?’ five times.
5. Train people to follow rules and standards as if second nature.
6. Find where a part is made cheaply and use that price as a benchmark.
7. Develop people who can come up with unique ideas.

Jidoka: The principle of Jidoka requires the production line to stop when something goes wrong.
If something goes wrong at station 1, the operator presses a button on and on a display board
of all workstations. All work stops, and everyone pitches in to solve the problem. The line has
stopped here because of a specific reason.

8.4.3 Evolution of Toyota Motor and Concept of Lean

Manufacturing
Taiichi Ohno, considered to be the creator of the Toyota Production System and the Father
of the Kanban System, joined the Toyoda Automatic Loom Works after graduating from the
Nogoya Technical High School in 1932. Early in his career, he expanded upon the JIT concepts
developed by Kiichito Toyoda to reduce waste, and started experimenting with and developing
methodologies to produce needed components and subassemblies in a timely manner to support
final assembly. During the chaos of World War II, the Loom Works was converted into a Motors
Works and Taiichi Ohno made the transition to car and truck parts production. The war resulted in
the levelling of all Toyoda Group Works production facilities, but under the management of Eiji
Toyoda, the plants were gradually rebuilt and Taiichi Ohno played a major role in establishing the
JIT principles and methodologies developed in the Loom manufacturing processes.
At the reconstructed Toyoda Group Automotive Operations, Taiichi Ohno managed the
machining operations under severe conditions of material shortages as a result of the war.
Gradually he developed improved methods of supporting the assembly operations. Two other
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gentlemen who helped shape the Toyota Production System were Shigeo Shingo, a quality
consultant hired by Toyota, who assisted in the implementation of quality initiatives; and Edward
Deming who brought statistical process control to Japan.

8.4.4 The Concept of the JIT System

The JIT concept states ‘nothing is to be produced until it is required.’ According to the JIT
system, the finished goods are assembled just before they are sold, the sub-assemblies are made
just before the products are assembled and the components are fabricated just before the sub-
assemblies are made. Here, the work-in-progress inventory is always kept at a low level, thus
reducing the production lead times. The firms should achieve and maintain high performance
levels in all their operational areas to facilitate the smooth flow of materials in the JIT Systems.
The JIT System involves the active participation, involvement, and cooperation of all its
employees. The JIT manufacturing system is based on the concept of continuous improvement,
which includes the two mutually supporting components of people involvement and total quality
control.
People involvement: The human resources management plays an important role in the
implementation of the JIT manufacturing system. The successful implementation of a JIT
program requires teamwork, discipline and supplier involvement.
Team work: Team work involves activities like suggestion programs, brainstorming and quality
circle programs which enable employees to actively participate. Suggestion and brainstorming
programs are conducted to encourage the employees to their ideas on how to improve a process.
In quality circles, people working in similar types of operations meet at regular intervals and
discuss ways of improving the quality of their processes.
Supplier involvement: Firms can involve suppliers in design review and to suggest new designs
and methods for improving product quality or productivity. JIT firms make strategic relationship
with their suppliers instead of inviting competitive bids from a set of suppliers. The JIT firm can
share its production plans and schedule with its suppliers so that they can plan their business
and capacity requirements beforehand. The suppliers should devote their schedules to the JIT
firm’s needs as they contribute to the improvement of the firm’s manufacturing operations.
The maintenance of linear production schedules requires the identification and elimination of
production bottlenecks, a balance in the production system, and a reduction in setup time.
Total quality control: A firm can produce high-quality products only through the combined
efforts of all the departments including the purchase department, quality control department, and
personnel department. The concept of ‘immediate customer’ helps the firms achieve the required
quality levels.
Concept of immediate customer: A JIT uses the concept of ‘immediate customer’ where each
worker in the firm considers the next worker who continues the production process as the
customer. Therefore, it is the responsibility of the worker to ensure that the product is processed
to meet specifications and quality requirements before passing it on to the next worker. Only
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items of acceptable quality are delivered to the immediate customer. In case a worker delivers
a defective item or an improperly finished item to his/her immediate customer, the worker who
identifies the defect is authorized to stop the process and take necessary actions thereafter.

8.4.5 Objective of JIT

JIT Manufacturing tries to smooth the flow of materials from the suppliers to the customers,
thereby increasing the speed of the manufacturing process. The objective of JIT is to change the
manufacturing system gradually rather than drastically including the following points:
1. To be more responsive to customers,
2. To have better communication among departments and suppliers,
3. To be more flexible,
4. To achieve better quality,
5. To reduce product cost.

8.4.6 Advantages of JIT System

The advantages of JIT System to firms are given below as:
1. Increased utilization of machinery and equipment,
2. Reduced investment in inventory,
3. Improvement in the quality of product or service,
4. Reduction in space requirements of the firm,
5. Reduction in production cycle time,
6. Zero inventory storage and maintenance costs,
7. Closer relationship with suppliers,
8. Reduced formal paper work, and
9. Higher involvement of employees as they are responsible for producing good-quality
goods.
The advantages of JIT Systems to suppliers are long-term guaranteed contract for supply of
materials, steady and continuous demand for their materials, less expenditure on promotional
activities, and timely payment of materials supplied.

8.4.7 Kanban Control in Lean Manufacturing

A lean manufacturing system is one that meets high throughput or service demands with very
little inventory. Despite its significant success, Kanban control is not a perfect mechanism to
control a lean system. Kanban control uses the levels of buffer inventories in the system to
regulate production. When a buffer reaches its preset maximum level, the upstream machine is
told to stop producing that part type.
This is often implemented by circulating cards, the kanbans, between a machine and the
downstream buffer. The machine must have a card before it can start an operation. It can then
pick raw materials out of its upstream (input) buffer, perform the operation, attach the card to
the finished part, and put it in the downstream (output) buffer. The number of cards circulating
 Manufacturing Systems  165

determines the buffer size, since once all cards are attached to parts in the buffer, no more parts
can be made. When the machine picks up the raw materials to perform an operation, it also
detaches the card that was attached to the material. The card is then circulated back upstream
to signal the next upstream machine to do another operation. This way, a demand for a unit of
finished goods percolates up the supply chain.

Buffer Buffer Finished

Machine Machine Machine parts

Figure 8-10: Kanban control

In Figure 8.10, movement of parts shown by thick arrow, circulation of Kanban by thin
arrow. Machines are shown as circles and buffers as triangles. The last buffer is the finished parts
inventory. Kanban control ensures that parts are not made except in response to a demand. The
analogy is to a supermarket; only the goods that have been sold are restocked on the shelves.
However, it has a major drawback as it uses the parts themselves as carriers of information.
A machine is told to stop production when its output buffer is full. This requires that a number of
parts sit in the buffer without serving any apparent purpose but to block the upstream machine.
That’s not quite right, though. The parts waiting in a buffer do serve a purpose; they act as a buffer
inventory, partially decoupling the operation of downstream machines from any interruptions of
upstream production. If a machine fails, the machine downstream of it, can continue production
by consuming the parts that are already in the buffer. With luck, the upstream machine will be
repaired before the buffer is empty, and the failure will not affect the downstream machine (or the
customer at the downstream end of the chain).

Benefits of Kanban System

Some common benefits realized by warehouse, shipping, and logistics managers using Kanban
are given below as:
• Lowers overhead costs
• Standardizes production goals
• Increases efficiency
• Reduces obsolete inventory
• Gives work area personnel more control
• Improves flow
• Prevents over production
• Provides manager’s progress reports
• Improves responsiveness to changes in demand
• Improves teamwork
• Kanban can reduce inventories by 75 per cent in some industries
166  Industrial Engineering and Management

8.5 Agile Manufacturing

Agility is a tool to respond rapidly to continuous and unpredicted changes in the market driven
by customer designed products and services. The concept of flexible and more responsive
manufacturing led to the new concept of agile manufacturing system (AMS) (Gunasekaran and
Yusuf 2002). The concept of agile manufacturing was first time launched in 1991 at Lehigh
University. Agile manufacturing is a combination of flexible and responsive manufacturing
systems. Flexible manufacturing shows the ability to change the entire systems as per changes
in customer requirements. Agility should not be confused with leanness. Lean manufacturing is
focused on the elimination of waste and large inventories. Lean leads to high productivity and
quality, but it does not necessarily imply being responsive. But, lean manufacturing reduces the
cost of production by eliminating the waste. There is equal importance of cost and responsiveness
for AMS.

8.5.1 Variables of AMS

There are many variables of agile manufacturing; some important of them are: (i) manufacturing
flexibility; (ii) strategic production planning; (iii) concurrent engineering; (iv) automation in
manufacturing; (v) rapid prototyping (RP); (vi) integrated information system; (vii) multi-
functional workforce; (viii) rapid partnership and supplier development (ix) virtual enterprise
formation; (x) product decision; (xi) market information system; (xii) product mix; (xiii) product
postponement and; (xiv) AMS. The brief discussions about these enablers are given below:
Manufacturing flexibility: Manufacturing flexibility can be defined as the ability of manu­
facturing system to adapt its capabilities to produce quality products timely and cost effective
manner to respond to changing product characteristics, material supply, and demand, or to
employ technological process enhancements. Avittathur and Swamidass (2007) worked on the
manufacturing flexibility from concept development to supplier buyer integrations.
Strategic production planning: There are a number of uncertainties related to production
activities such as fluctuation in demand, the introduction of new products or customization of
existing products. To respond the demand uncertainties, a manufacturer should have multiple
options such as outsourcing, subcontracting, overtime production, daily wages workers,
expansion of plants, etc. To introduce new products into the market within short notice, there
is requirement of generic machines and multi-skilled personals with advanced technologies
and strong research and development department. For customization of existing products, the
decoupling point in the manufacturing or assembly should be shifted to last stage.
Concurrent engineering: Concurrent engineering also called simultaneous engineering was
coined in the United States in 1989. It means a way of work where the various engineering
activities in the product development, process development and field support development
are integrated and performed as much as possible in parallel rather than in sequential order.
Multifunctional team and emerging techniques such as CAD/CAM, computer-aided engineering
(CAE), CAPP, design for manufacturing (DFM), design for assembly (DFA) and quality function
deployment (QFD) play an important role in concurrent engineering.
 Manufacturing Systems  167

Automation in manufacturing: Automation is an integration of knowledge of various fields such

as mechanical, electronics, computer and information technology. It is very helpful to reduce
production lead time, improve quality and lower the manufacturing cost. Some of the important
technologies which have been frequently used are FMS, GT, cellular manufacturing, computer-
aided quality control (CAQC), CNC, DNC, AGV, AS/RS, etc.
Rapid prototyping: Rapid prototyping (RP) is a combination of technology, which converts
directly a design file into a prototype, which is used in analysis during the design development
phase with the least time. RP is able to produce a prototype in shorter lead time with less
material wastage. This valuable benefit of the technology makes it worth for agile manufacturing.
Prototyping is a process of analysis of product design before putting it into real use. RP has been
used in the production of three-dimensional object by stereo-lithography.
Integrated information system: Information system’s flexibility can be defined as the ability of an
organization’s collective information system to adapt and support changing requirements of the
business functions such as product development, sourcing, manufacturing and logistics, and other
strategic goals. Sethi and King (1994) developed a concept called CAPITA (competitive advantage
provided by and information technology application), which measures the firm’s competitive
benefits gained through the use of a single information technology application (Kumar et al. 2007).
Multi-functional workforce: The need for frequent changing in roles and responsibilities
shows the requirement of multi-functional workforce so that during new demand or in changing
circumstances existing workforce can be employed in any work due to time constraints.
It is considered as people flexibility, and its components are employee skill flexibility, skills
replaceability and employee skills utilization.
Rapid partnership and supplier development: A single manufacturing organization cannot be an
expert of all the business activities such as supply chain, government policy, trade regulations and
legislation, legal formalities and competitor’s action. Thus, strategic alliances have become a need
for manufacturers in today’s business environment. Rapid partnership with these service providers
has become an influencing factor for agility (Gunasekaran 1998). Integrated-sourcing flexibility in
supply chain management improves the organization’s ability to deliver products and services in a
timely and effective manner. Sourcing flexibility is the ability to change sourcing decisions such
as the number of suppliers per part and delivery schedule. Sourcing flexibility facilitates a faster
response when there is uncertainty; therefore, it has a positive impact on manufacturing flexibility.
Sourcing flexibility may support the arms-length relationship with suppliers, but strategic partnership
with flexibility is more beneficial to cover various uncertainties in the supply chain. Manufacturers
always try to find the reliable suppliers and establish strategic relationships with them.
Virtual enterprise formation: Virtual enterprise is a temporary integration of organizations on
the basis of core competencies having a focus on speed to market, cost reduction and quality.
An organization may not be successful alone to respond rapidly to changing market. Therefore,
the temporary alliance based on core competencies can help to achieve improved flexibility and
responsiveness of organizations. Three important factors for partnership are: pre-qualifying
partners, evaluation of product design and capability of potential partners, selecting the optimal
number of partners for manufacturing of a particular product.
168  Industrial Engineering and Management

Product decision: Product decision is based on market information, availability of resources,

product mix and delayed product differentiation. In push-based system, production decision is
based on long-term forecasting while pull-based system is demand driven (Simchi-Levi et al.
2002). There should be strong information channel to know the changing market behaviour.
Market information system: The market information system is a base for AMS. Agility means
dancing to the tune of the market. Therefore, the strong market information system is required to
know the changing customer needs and its behaviour with competitor’s strategies. It is also very
helpful to forecast the demand and to customize the product according to customer requirements.
Product mix: The product mix is a set of similar or dissimilar products of various configurations
and specifications provided by same manufacturer. This may help to satisfy the diversified
demand of customers. The product mix is very helpful to design and produce a new or customized
product with short lead time. For example, Maruti-Suzuki started to produce Marui-800 model
at beginning and now producing a new model of car in every 2–4 years according to requirement
of Indian market.
Product postponement: Product postponement is a delay in time when a product gets its identity.
Using a high level of part commonality at early stages of the manufacturing process can delay
the product differentiation. For example, in an apparel industry, traditionally, the manufacture of
clothing starts with the dyeing of the yarn followed by the knitting of the garment. This process
may result in out of stock of desired colour and over inventory of unpopular colour. In a market
characterized by very short product life cycles, this mismatch of inventory and customer demand
cannot be corrected using a traditional manufacturing approach. The typical result is the end of
season markdown. Benetton uses the bleached yarn and delay dyeing until information on the
preferred colours became available through EDI to reduce the inventory size.

Summary
In this chapter, we have discussed about the manufacturing systems, including the concepts
of FMS, lean manufacturing, and agile manufacturing. Flexible manufacturing is a type of
programmable automation of manufacturing systems in which the changes required may be
easily accommodated. Lean manufacturing is focused on the elimination of different types of the
wastes. The agile manufacturing is focused on the rapid response to the changes required as per
requirement of the market. We have also discussed about the CAD/CAM, NC, CNC and DNC in
brief under the topic FMS.

Multiple-Choice Questions
1. In a manufacturing system, computer system is required
(a) to control the functions of the machines
(b) to participate in the overall coordination
(c) to perform the management of the manufacturing system
(d) all the above
 Manufacturing Systems  169

2. Which of the following is not a part of flexible manufacturing system?

(a) a highly automated group technology machine cell
(b) a group of processing stations
(c) forecasting
(d) an integrated computer system
3. Which of the following is not a part of FMS workstations?
(a) Moulding machines (b) Machining centres
(c) Head changers (d) Milling modules
4. Part program file consists of
(a) alternate route sheets
(b) part programs for each workstations
(c) tool records
(d) record of tool lives
5. Part production file consists of
(a) production rates for various machines
(b) in-process inventory
(c) inspection required
(d) all the above
6. Geometric modelling is concerned with
(a) the mathematical description of the geometry of an object
(b) the stress–strain calculations
(c) interference checking routings
(d) the documentation
7. CAM is mainly used for
(a) Computer-aided process planning
(b) Computer-assisted NC part programming
(c) Computer-aided line balancing
(d) All the above
8. CAPP is used for
(a) preparation of route sheet
(b) determining the sequence of operations
(c) both (a) and (b)
(d) none of these
9. The main difference between retrieval and generative CAPP is
(a) Retrieval CAPP system is based on part family and automated search of route sheet whereas
generative CAPP is based on artificial expert that a human planner would use to generate route
sheet.
(b) generative CAPP is based on part family and automated search of route sheet whereas retrieval
CAPP system is based on logical procedures a human planner would use to generate route sheet.
170  Industrial Engineering and Management

(c) retrieval CAPP is based on the determination of routesheet by an engineer whereas generative

CAPP is based on part family and automated search of route sheet.
(d) none of these
10. DNC system
(a) can control more than one machines simultaneously
(b) generate the program automatically
(c) is used to discharge the product after finishing the operations
(d) dispose off the scrape produced
11. Lean manufacturing is concerned with the minimization of
(a) inventory (b) delays
(c) scrapes (d) all the above
12. The inventor of Toyota production system was
(a) Taiichi Ohno (b) Kiichito Toyoda
(c) Eiji Toyoda (d) Deming
13. Just-In-Time concepts was developed by
(a) Taiichi Ohno (b) Kiichito Toyoda
(c) Eiji Toyoda (d) Deming
14. Who is known as the father of Kanban System?
(a) Taiichi Ohno (b) Kiichito Toyoda
(c) Eiji Toyoda (d) Deming
15. Agile manufacturing is concerened with
(a) flexibility with speed (b) speed
(c) flexibility (d) quality of product

Answers
1. (d) 2. (c) 3. (a) 4. (b) 5. (d) 6. (a) 7. (d) 8. (c) 9. (a)
10. (a) 11. (d) 12. (a) 13. (b) 14. (a) 15. (a)

Review Questions
1. Explain the term ‘manufacturing systems’.
2. What do you mean by flexible manufacturing system (FMS)? What are the components of FMS?
3. Explain the various types of layout configurations used in an FMS.
4. Discuss the advantages of FMS.
5. Write short notes on (a) CAD/CAM, (b) CAPP, (c) CNC and (d) DNC.
6. Explain the concept of lean manufacturing and also discuss the term TPS (Toyota Production System).
7. Write notes on Muda, Mura and Muri.
8. Discuss the concept of just-in-time manufacturing.