Process Strategies

Summary

The video script explores various manufacturing processes, highlighting how companies like BP and Honda select processes based on product variety and volume demand. It discusses continuous processes for standardized products, assembly lines for mass production, batch processing for lower volume products, and job shops for highly customized items. The goal is to balance efficiency and flexibility for high-quality, cost-effective production.

Takeaways

• 😀 Manufacturing processes are chosen based on product variety and volume of demand.
• 🔍 Gasoline is a standardized product with little variety, suitable for continuous production processes.
• 👓 Eyeglasses are custom-made, requiring a job shop process with high flexibility and individual customization.
• 🏭 BP refines crude oil into various products using continuous processes, operating 24/7 to meet constant demand.
• 🚗 Honda uses an assembly line (mass production) for making cars, allowing some customization within a repetitive process.
• 🏗️ Caterpillar employs batch processing for producing a variety of construction and agricultural equipment in lower volumes.
• 🛠️ The product process matrix helps manufacturers find the most efficient production methods based on variety and volume.
• 🌐 Continuous processes are highly automated and require specialized equipment, making them ideal for high-volume, standardized products.
• 🏗️ Batch processing allows for flexibility in equipment and production, suitable for lower-volume, varied products.
• 👨‍🏫 Skilled workers using general-purpose tools are crucial in job shops, where each product is unique and requires customization.
• 🔄 Hybrid manufacturing processes are becoming common, combining elements of continuous, batch, and job shop methods to meet diverse product needs.

Q & A

What are the two main considerations for selecting a manufacturing process?

The two main considerations for selecting a manufacturing process are the variety of the product and the volume of demand. Variety refers to how much the product changes from customer to customer, while volume refers to the amount of product needed by consumers.

Why is gasoline considered a standardized product?

Gasoline is considered a standardized product because, although there may be a small variety between different blends, the product remains consistent within each blend.

What is the significance of the product process matrix?

The product process matrix is a graphical representation that helps in determining the most efficient production or manufacturing processes. It uses variety and volume as the vertical and horizontal axes, respectively, and the most efficient processes are found along the diagonal points on the graph.

Why is a continuous process the best manufacturing choice for a very standardized product needed in large volumes?

A continuous process is the best manufacturing choice for a very standardized product needed in large volumes because it uses highly specialized equipment with very little flexibility and is almost completely automated, ensuring cost-effectiveness and high output.

How does BP's refinery process impact its profitability and cost-effectiveness?

BP's refineries operate 24/7 to maintain cost-effectiveness and match output to demand. Stopping production for just a few days can undermine a plant's profitability for an entire year due to the large capacity and high cost of shutdown.

What is the role of chemical engineers in the refining process at BP's refineries?

Chemical engineers determine the mix of products added during the conversion and treatment stages of the refining process. They also monitor elements such as the water used in the refinery to ensure it's safe to return to the environment.

How does Honda of America's assembly line process differ from a continuous process?

Honda's assembly line process, also known as mass production, involves a connected workflow where the product moves along a conveyor system past a series of workstations. Unlike a continuous process, workers interact with tools more and much of the work such as welding is performed through automation.

What is the advantage of using batch processing in manufacturing?

Batch processing allows for the creation of products in small lots or batches, which is suitable for manufacturing a variety of products at relatively low volume with flexible equipment. It is ideal for situations where a high degree of customization is required.

How does the job shop process differ from other manufacturing processes?

The job shop process is characterized by creating highly specialized products in very low volumes based on individual customer orders. It involves using general-purpose tools in a variety of ways, with a focus on customization and flexibility.

What are the challenges faced by manufacturers in achieving mass customization?

Achieving mass customization involves creating high-quality products with the efficiency of a continuous process while building in as much flexibility as possible to allow for more customization. Manufacturers must understand the dynamics of the product process matrix to balance these requirements.

Why is flexibility important in manufacturing processes?

Flexibility in manufacturing processes allows manufacturers to adapt to varying product requirements and customer demands. It enables the production of a variety of products, customization, and the ability to respond quickly to changes in the market.

Outlines

00:00

🛠️ Selecting the Right Manufacturing Process

Consumers purchase a wide variety of products, from standardized commodities like gasoline to custom-made items like eyeglasses. Companies must choose a manufacturing process that best matches the product based on two main considerations: variety and volume. Gasoline, a standardized product, is continuously produced in large volumes, while eyeglasses are custom-made to order. The flexibility of the equipment used is also important. The product process matrix shows the relationship between variety and volume, indicating the most efficient manufacturing processes. Continuous processes are ideal for standardized products in large volumes, exemplified by BP's gasoline production, which operates 24/7 and refines crude oil into various consumer products.

05:03

🚗 Mass Production and Assembly Lines

Manufacturers often use assembly lines to produce large volumes of consumer goods with some customization. Honda's Marysville, Ohio plant exemplifies this, producing about 20,000 Civic cars monthly. The assembly line process involves a connected workflow where the product moves along a conveyor, with parts added at each station. Workers are trained in multiple tasks to avoid fatigue and maintain quality. The process includes some flexibility for different model options. Honda aims to further enhance flexibility, while Caterpillar's Aurora, Illinois plant already produces multiple models in smaller volumes using batch processing, which involves a disconnected workflow and flexible equipment.

10:06

👓 Job Shops for Custom Products

Highly specialized, low-volume products like eyeglasses are produced using job shops. Each pair of glasses is custom-made, with steps such as selecting the correct lens strength, cutting lenses to fit frames, and adjusting frames to fit the customer's head. The process involves flexible, general-purpose tools and skilled workers. This customization requires equipment that can adapt to each new task. While job shops focus on producing unique items, some products, like eyeglasses, involve multiple processes. The product process matrix helps manufacturers balance efficiency and customization, striving for mass customization where high-quality, flexible production meets market demands.

Keywords

💡Manufacturing Process

The manufacturing process refers to the methods and techniques used to produce goods. In the video, it is emphasized that selecting the right manufacturing process is crucial for creating high-quality products efficiently and cost-effectively. The process is determined by the product's variety and volume of demand, as seen in the examples of gasoline and eyeglasses. Gasoline is a standardized product with a large demand, suitable for a continuous process, while eyeglasses are custom-made, indicating a need for a more flexible process.

💡Variety

Variety in the context of the video refers to the degree of customization or standardization of a product. It is one of the key considerations in selecting a manufacturing process. For instance, gasoline is a standardized product with little variety, making it suitable for a continuous manufacturing process. In contrast, eyeglasses require customization for each individual user, indicating a need for a more flexible manufacturing approach.

💡Volume of Demand

Volume of demand is the amount of a product that consumers require, which influences the choice of manufacturing process. The video uses gasoline as an example of a product with a large and constant demand, necessitating a continuous process to meet this demand. Conversely, products like eyeglasses, which are custom-made, have a lower volume of demand and thus a different manufacturing approach is required.

💡Product Process Matrix

The product process matrix is a conceptual tool used to determine the most efficient manufacturing processes based on the variety and volume of a product. The video describes this matrix as a graph with variety and volume as axes, where the diagonal points represent the most efficient production processes. It helps manufacturers understand which process to use for different types of products.

💡Continuous Process

A continuous process is a manufacturing approach where production is ongoing without interruptions. It is highlighted in the video as the best choice for standardized products with high demand, such as gasoline. BP's refineries, which process crude oil into gasoline, operate continuously to meet the constant demand for their products, demonstrating the efficiency of this process.

💡Assembly Line

An assembly line is a manufacturing process where products are assembled in a step-by-step manner as they move along a conveyor system. The video mentions Honda's use of an assembly line in their Marysville plant to produce a large number of Civic cars. This process allows for mass production with some degree of customization, highlighting the balance between efficiency and variety.

💡Batch Processing

Batch processing is a manufacturing method where products are made in small lots or batches. The video discusses how Caterpillar uses this process to produce a variety of construction and agricultural equipment in relatively low volumes. This method allows for flexibility in equipment and production, accommodating a range of products with different specifications.

💡Job Shop

A job shop is a manufacturing process used for creating highly specialized products in very low volumes, often based on individual customer orders. The video uses the example of eyeglasses, which are made to suit a specific customer's vision and head shape, illustrating the need for customization and the use of general-purpose tools in this process.

💡Mass Customization

Mass customization is a manufacturing approach that combines the efficiency of mass production with the flexibility to offer a wide range of customization options. The video mentions that manufacturers aim to achieve this by understanding the dynamics of the product process matrix, allowing them to produce high-quality products efficiently while accommodating customer preferences.

💡Hybrid Processes

Hybrid processes are manufacturing methods that combine elements of different production processes to meet specific product requirements. The video notes that many products depend on several processes for their creation, such as the steel used in cars, which is produced through a continuous process, while specialized stereo equipment might be produced through batch processing.

💡Centralized Control Room

A centralized control room is a location where operators monitor and adjust manufacturing processes from a single point. The video describes how chemical engineers in a refinery determine the mix of products added during conversion and treatment stages, while others monitor elements like water used in the refinery, all from a centralized control room, illustrating the importance of centralized monitoring in continuous manufacturing processes.

Highlights

The importance of selecting a manufacturing process that matches the product for efficiency and cost-effectiveness.

Two main considerations for process selection: product variety and volume of demand.

Gasoline as an example of a standardized product with consistent demand.

Eyeglasses as an example of a custom-made product with high variety.

The concept of the product process matrix with variety and volume as axes.

Continuous process as the best manufacturing choice for standardized products in large volumes.

BP's refineries as an example of continuous production for gasoline.

The cost implications of shutting down large-scale continuous production plants.

The role of chemical engineers in determining product mix during conversion and treatment stages.

Mass production or assembly line process for consumer goods with some customization.

Honda's use of a repetitive process in their car manufacturing plant.

The benefits of worker rotation in assembly lines to maintain quality and avoid fatigue.

Batch processing for low-volume, high-variety products like Caterpillar's machinery.

Job shop process for creating highly specialized, low-volume products like eyeglasses.

The use of general-purpose tools in job shops for custom-made products.

The challenges of fitting products neatly into one process and the rise of hybrid processes.

The goal of manufacturers to combine efficiency with flexibility for mass customization.

Understanding the dynamics of the product process matrix for effective manufacturing strategies.

Transcripts

everyday consumers around the world

purchase a variety of products these

Goods range from standardized

commodities such as gasoline and motor

oil all the way to items which are made

to order like eyeglasses and many

services in order to create a high

quality product while being efficient

and cost effective any company must

select a manufacturing process that best

matches the product as a rule the

product being created determines the

appropriate process process selection is

based on two considerations the first

consideration is variety or how much the

product changes from customer to

customer gasoline is a very standardized

product although there may be a small

variety between different blends within

each blend the product remains

consistent eyeglasses on the other hand

must be custom-made for every individual

user the second consideration is volume

of demand there is a large and constant

need for gasoline so operators refine

and distribute it as quickly as possible

glasses are custom-made to order

matching a prescription and cannot be

made in advance a third consideration

the flexibility of the equipment used to

create the product is determined by the

product being created and is often

determined by the first two these two

main factors variety and volume may be

seen as the vertical and horizontal axes

of a graph

the result is called the product process

matrix the most efficient production or

manufacturing processes are found along

the diagonal points on the graph when a

very standardized product is needed in

very large volumes a continuous process

is the best manufacturing choice this

process uses highly specialized

equipment with very little flexibility

and is almost completely automated

gasoline manufacturer BP refines crude

oil into premium fuel in refineries

across the globe there is a constant

need for its product so production is

continuous in fact it's refineries in

the United States process 1.5 million

barrels of crude oil every day these

plants operate 24 hours a day 365 days a

year in order to maintain

cost-effectiveness and match output to

demand from consumers because of the

large capacity of the operations it is

very expensive to shut down such a plant

stopping production for just a few days

can undermine a plant's profitability

for an entire year

bp's facilities refine crude oil into a

number of consumer products each barrel

of oil contains 42 US gallons which is

refined into nineteen point four gallons

of gasoline nine point seven gallons of

heating oil and diesel fuel four point

three gallons of jet fuel and a host of

other products

the first step in refining is separating

the crude oil into these various

components refineries have the

flexibility to manufacture both gasoline

and heating oil but within the plant

each piece of equipment performs a very

specific function the process is

automated so operators spend much of

their time monitoring and adjusting

processes from a centralized control

room chemical engineers determine the

mix of products added during the

conversion and treatment stages of the

process

others monitors such elements as the

water used in the refinery to ensure

that it's safe to return to the

environment the workers at the plant

represent a wide range of specialized

skills without much overlap for a global

petroleum producer like BP continuous

production is the most effective process

choice in many cases though consumers

demand some degree of customization in

order to deliver a high volume of output

and still offer some variety

manufacturers turn to a repetitive

process called an assembly line this is

also referred to as mass production most

consumer goods are mass-produced Honda

of America uses a repetitive process in

their operating plant in Marysville Ohio

at this plant

Honda produces a large number of only a

few different models of their popular

Civic line of cars in fact this plant

alone produces an average of 20,000 cars

every month nearly 250,000 for each

model year

the production process utilizes a

connected workflow in which the product

moves along a conveyor system past a

series of work stations

at each station parts are brought to the

line to be added or assemble until the

product is finished in traditional

assembly lines workers complete the same

task over and over at honda workers are

trained in a variety of tasks they

rotate workstations regularly to avoid

fatigue and to maintain quality because

each station is designed for a specific

task there is little need for flexible

equipment workers interact with tools

more than in a continuous process but

much of the work such as welding is

performed through automation still there

is enough flexibility at each

workstation to offer a variety of

options on the model being produced in

repetitive processing variety is created

by combining individual modules engines

for example are created separately from

the main assembly line allowing engines

with different specifications to go into

the same model body color and interior

features and plug-in items such as

stereos and accessories are examples of

other modules that create variety within

the steady repetitive flow while this

process is so structured that each line

produces only one type of product the

line that produces the Civic for example

cannot build an Acura Honda is seeking

to change that at its Ohio plant for

example workers are trained on the next

season's model of cars while they are

still building the current model

industrial engineers meanwhile are

looking for ways to redesign the

assembly line building in so much

flexibility that it could produce any

model the company makes in Aurora

Illinois caterpillar is already doing

what Honda hopes to accomplish this

plant produces twenty four different

models of wheel loaders compactors

excavators and agricultural tractors all

in the same facility caterpillar

produces four families of construction

and agricultural equipment but all in

relatively low volumes because the

volume of products they manufacture is

lower than Honda's and the variety of

machine is greater Kanna pillar makes

use of batch processing this process

creates products in small lots or

batches in much smaller volume than

Honda unlike repetitive processing which

depends on a connected workflow batch

processing involves a disconnected

production line processing is

intermittent with workers coming to the

machine rather than the product coming

to them a variety of products produced

at relatively low volume with flexible

equipment characterize a batch

manufacturing process sometimes products

are created in batches as small as one

when a highly specialized product is

needed in a very low volume based on an

individual customer order the process

which matches the product is often

referred to as a job shop eyeglasses are

made using such a job shop process

each pair is made to suit a specific

customers vision and head shape so each

pair must be created individually at AED

vision optician Jim Bracken has been

making glasses for more than 20 years he

stocks lens blanks which have already

been ground to a specific prescription

strength after choosing the proper

strength lens Jim uses a bevel edger to

custom cut the lens to the specific

frames the customer has chosen

he then uses a hand edger to grind out

any imperfections the lenses are fitted

by hand to the frames finally he

fine-tunes the fit of the frame to the

size and shape of the clients head

although many of these same steps go

into the creation of every set of

glasses fitting the lens to the frame

and the frame to the customer is unique

every time outside of the bevel edger

none of the equipment jim uses is

specific to his industry standard table

salt in a pan on a hot plate serves as a

heat source to soften plastic frames for

bending

a nearby pan of water cools the frames

standard flexible tools such as a

screwdriver and pliers are used to fit

metal frames this is typical of many job

shops where a small set of general

purpose tools are used in a variety of

ways because every product is

custom-made the equipment must be

flexible enough to change with each new

task and since volume is small the

process can be geared to providing an

exact custom product highly skilled

workers using general purpose tools to

produce a small volume of very

specialized products is typical of the

job shop production processes the

product process matrix illustrates the

general rules of manufacturing or

production processes finding and using

the appropriate process is necessary to

ensure quality and keep cost low enough

to match the market demand and volume it

is unusual however that a product will

fit so neatly into one process for

another and many products depend on

several processes for their creation

these hybrid processes are becoming more

and more common the steel which goes

into Honda's cars and caterpillars heavy

equipment for example is created through

a continuous process

if you order specialized stereo

equipment for your car it may be

produced through batch processing

although the eyeglasses created at a IDI

are built in a job shop the frames may

have been created on an assembly line

and the glass blank for the lenses

through a continuous process for many

manufacturers the goal is to create

high-quality products with the

efficiency of a continuous process while

building in as much flexibility as

possible in order to allow for more and

more customization at the same time

small volume producers search for

methods to produce greater volume of

specialized products at lower prices in

order to achieve this mass customization

manufacturers must understand the

dynamic of the product process matrix