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Manufacturing Model

Manufacturing models

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Shubham Faujdar
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40 views

Manufacturing Model

Manufacturing models

Uploaded by

Shubham Faujdar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Manufacturing Models

and Metrics
1. Mathematical Models of Production Performance
2. Manufacturing Costs

Production Concepts and


Mathematical Models

Production rate Rp
Production capacity PC
Utilization U
Availability A
Manufacturing lead time MLT
Work-in-progress WIP

Production Rate
Batch production: batch time Tb = Tsu + QTc
Average production time per work unit Tp = Tb/Q
Production rate Rp = 1/Tp
Job shop production:
For Q = 1, Tp = Tsu + Tc
For quantity high production:
Rp = Rc = 60/Tp since Tsu/Q 0
Where Rc = operation cycle rate
For flow line production
Tc = Tr + Max To and Rc = 60/Tc

Production Capacity
Plant capacity for facility in which parts are made in
one operation (no = 1):

PCw = n Sw Hs Rp
where PCw = weekly plant capacity, units/wk
n = number of work centre working in parallel
Sw = number of shifts/wk
Hsh = hr/shift
Rp = Hourly production rate
Plant capacity for facility in which parts require
multiple operations (no > 1):

PCw = nSw Hs R p
no
where no = number of operations in the routing

Operation Cycle Time


Typical cycle time for a production operation:
Tc = To + Th + Tth
where Tc = cycle time, To = processing time for the
operation, Th = handling time (e.g., loading and
unloading the production machine), and Tth = tool
handling time (e.g., time to change tools)

Utilization and Availability


Utilization: U =

Q
PC

where Q = quantity actually produced, and PC = plant


capacity
MTBF MTTR
Availability: A =

MTBF

where MTBF = mean time between failures, and


MTTR = mean time to repair

Availability MTBF and MTTR Defined

Costs of Manufacturing Operations


Two major categories of manufacturing costs:
1. Fixed costs - remain constant for any output level
2. Variable costs - vary in proportion to production
output level
Adding fixed and variable costs
TC = FC + VC(Q)
where TC = total costs, FC = fixed costs (e.g.,
building, equipment, taxes), VC = variable costs (e.g.,
labor, materials, utilities), Q = output level.

Manufacturing Lead Time

Fixed and Variable Costs

MLT = no (Tsu + QTc + Tno)


where MLT = manufacturing lead time, no = number of
operations, Tsu = setup time, Q = batch quantity, Tc cycle
time per part, and Tno = non-operation time

Work-In-Process
WIP =

AU PC MLT
S w H sh

where WIP = work-in-process, pc; A = availability, U =


utilization, PC = plant capacity, pc/wk; MLT =
manufacturing lead time, hr; Sw = shifts per week, Hsh =
hours per shift, hr/shift

Manufacturing Costs
Alternative classification of manufacturing costs:
1. Direct labor - wages and benefits paid to workers
2. Materials - costs of raw materials
3. Overhead - all of the other expenses associated with
running the manufacturing firm
Factory overhead
Corporate overhead

Typical Manufacturing Costs

Overhead Rates
Factory overhead rate:

FOHC

FOHR = DLC
FOHC = annual factory overhead cost
DLC = annual direct cost
Corporate overhead rate:

COHC
COHR =
DLC
COHC = annual corporate overhead cost
where DLC = direct labor costs

Cost of Equipment Usage


Hourly cost of worker-machine system:
Co = CL(1 + FOHRL) + Cm(1 + FOHRm)
where Co = hourly rate, $/hr; CL = labor rate, $/hr; FOHRL
= labor factory overhead rate, Cm = machine rate, $/hr;
FOHRm = machine factory overhead rate

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