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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, interconnected 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 3.25


and sells bread

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