Group Technology (GT)

GT is a manufacturing philosophy in which components are grouped together to form families on the basis of geometrical similarity or manufacturing process.

TYPES OF PRODUCTION

Batch Production :• They are grouped together in such a way that

same process in a single department.• It has large amount of travel for the part.Mass Production :• They are arranged in a sequence in which

operations are carried out and movement will be smooth

• Thus part does not have to travel a lot in the shop.

BATCH PRODUCTION

ADVANTAGES OF GT

• Maximizes the output

• Less lead time

• Less setting time

• Reduced scrap

• Reduced material handling

FLEXIBLE MANUFACTURING SYSTEMS (FMS)

• It is a production system consisting of sets of CNC machine tool, inter-connected by an automated material handling and storage system & controlled by a central computer system.

COMPONENTS OF FMS

• Workstations

• Material Handling & Storage Systems

• Computer Control Systems

• Human Resources

FMS layout

BENEFITS OF FMS

• It has higher avg. utilization than machines in a conventional batch production shop.

• Because of a higher m/c utilization, fewer m/c are required.

•It requires lesser floor area.

•Lower manufacturing lead times

•Reduced direct labour requirements.

SUPPLY CHAIN MANAGEMENT (SCM)

• SCM deals with management of materials, information & financial flows in a network consisting of suppliers, manufacturers, distributors and consumers.

• The objective is to produced & distribute the product in right quantities at right location and at a right time.

EVOLUTION OF SCM

WHY FOCUS ON SCM ???

1. Customer expectations are moving in the direction of

• Increased value addition & cost consciousness.

• Response time & information sensitivity.

• need of reliability.

2. Increased competition forcing industries towards

• Reducing lead times.

• Reduce cost.

3. Change of attitude forcing industry managers

• Need of integration & partnerships.

• Continuous improvement of processes.

SCM INVOLVES 2 STRATERGIES

Pull system

• It is based on actual demand.

• Customer order cycle.

• Objective is to maximize service level.

• Lead time is short.

• It has low complexity.

• Examples are Dell, Compaq, Amazon etc.

Push system

• It is based on forecast.

• Procurement, m/f & replenishment cycles.

• Objective is to minimize the cost.

• Lead time is long.

• It has high complexity.

• Examples are Toyota, Volkswagen, GM etc.

TOP 25 SUPPLY CHAINS

SUPPLY CHAIN FOR BREAD

STAGE OF PRODUCTION VALUE ADDED VALUE OF PRODUCT

Farmer produces & harvests wheat

2.33 2.33

Wheat transported to mill 1.24 3.57

Mill produces floor 2.33 5.90

Floor transported to baker 1.25 7.15

Baker produces bread 8.35 15.50

Bread transported to grocery store

1.25 16.75

Grocery store displays and sells bread

3.25 20.00

Total value-added 20.00

BENEFITS OF SCM

• Inventory reduction

• Productivity improvement

• Cost reduction

• High customer satisfaction

• Increased profit

• On-time delivery fulfillment

• Better cash management

• Better order management