Module-1

1 Automa on in Produc on Systems

Some components of the firm’s production system are likely to be automated, whereas
others will be operated manually or clerically. The automated elements of the production
system can be separated into two categories
(1) automation of the manufacturing systems in the factory
(2) computerization of the manufacturing support systems

1.1 Automated Manufacturing Systems

Automated manufacturing systems operate in the factory on the physical product. They
perform operations such as processing, assembly, inspection, and material handling, in
many cases accomplishing more than one of these operations in the same system. They are
called automated because they perform their operations with a reduced level of human
participation compared with the corresponding manual process. In some highly automated
systems, there is virtually no human participation. Examples of automated manufacturing
systems include:
• Automated machine tools that process parts
• Transfer lines that perform a series of machining operations
• Automated assembly systems
• Manufacturing systems that use industrial robots to perform processing or assembly
operations
• Automatic material handling and storage systems to integrate manufacturing
operations
• Automatic inspection systems for quality control.

Automated manufacturing systems can be classified into three basic types: (1) fixed
automation, (2) programmable automation, and (3) flexible automation
Fixed Automation. Fixed automation is a system in which the sequence of processing (or
assembly) operations is fixed by the equipment configuration. Each operation in the sequence
is usually simple, involving perhaps a plain linear or rotational motion or an uncomplicated
combination of the two, such as feeding a rotating spindle. It is the integration and
coordination of many such operations in one piece of equipment that makes the system
complex. Typical features of fixed automation are
(1) high initial investment for custom-engineered equipment
(2) high production rates,
(3) inflexibility of the equipment to accommodate product variety.
Programmable Automation. In programmable automation, the production equipment is
designed with the capability to change the sequence of operations to ac-commodate different
product configurations. The operation sequence is controlled by a program, which is a set of
instructions coded so that they can be read and interpreted by the system. New programs can
be prepared and entered into the equipment to produce new products. Some of the features
that characterize programmable automation include
(1) high investment in general-purpose equipment
(2) lower production rates than fixed automation
(3) flexibility to deal with variations and changes in product configuration,
(4) high suitability for batch production.
Flexible Automation. Flexible automation is an extension of programmable automation. A
flexible automated system is capable of producing a variety of parts or products with virtually
no time lost for changeovers from one design to the next. There is no lost production time
while reprogramming the system and altering the physical setup (tooling, fixtures, machine
settings). Accordingly, the system can produce various mixes and schedules of parts or
products instead of requiring that they be made in batches. What makes flexible automation
possible is that the differences between parts processed by the system are not significant, so
the amount of changeover between designs is minimal. Features of flexible automation
include
(1) high investment for a custom-engineered system
(2) continuous production of variable mixtures of parts or products
(3) medium production rates
(4) flexibility to deal with product design variations. Examples of flexible automation are
flexible manufacturing systems that perform machining processes.
1.2 Computerized Manufacturing Support Systems
Automation of the manufacturing support systems is aimed at reducing the amount of manual
and clerical effort in product design, manufacturing planning and control, and the business
functions of the firm. Nearly all modern manufacturing support systems are implemented
using computers. Indeed, computer technology is used to implement automation of the
manufacturing systems in the factory as well. Computer-integrated manufacturing (CIM)
denotes the pervasive use of computer systems to design the products, plan the production,
control the operations, and perform the various information-processing functions needed in a
manufacturing firm. True CIM involves integrating all of these functions in one system that
operates throughout the enterprise. Other terms are used to identify specific elements of the
CIM system; for example, computer-aided design (CAD) supports the product design
function. Computer-aided manufacturing(CAM) is used for functions related to
manufacturing engineering, such as process plan-ning and numerical control part
programming. Some computer systems perform both CAD and CAM, and so the term
CAD/CAM is used to indicate the integration of the two into one system.Computer-integrated
manufacturing involves the information-processing activities that provide the data and
knowledge required to successfully produce the product. These activities are accomplished to
implement the four basic manufacturing support functions identified earlier:
(1) business functions,
(2) product design
(3) manufacturing planning,
(4) manufacturing control.
Reason for Automation
2 Principles and Strategies of Automation
The preceding section leads one to conclude that automation is not always the right answerfor
a given production situation. A certain caution and respect must be observedin applying
automation technologies. This section offers three approaches for dealing with automation
projects:1 () the USA Principle, (2) Ten Strategies for Automation and ProcessImprovement,
and (3) an Automation Migration Strategy.
2.1 USA principle
2.2 Ten Strategies for Automa on and Process Improvement
Applying the USA Principle is a good approach in any automation project. As suggested
previously, it may turn out that automation of the process is unnecessary or cannot be
cost justified after the process has been simplified.
1. Specialization of operations. The first strategy involves the use of special-purpose
equipment designed to perform one operation with the greatest possible efficiency.
This is analogous to the specialization of labor, which is employed to improve labor
productivity.
2. Combined operations. Production occurs as a sequence of operations. Complex
parts may require dozens or even hundreds of processing steps. The strategy
of combined operations involves reducing the number of distinct production
machines
or workstations through which the part must be routed. This is accomplished
by performing more than one operation at a given machine, thereby
reducing
the number of separate machines needed. Since each machine typically
involves a setup, setup time can usually be saved by this strategy. Material handling
effort, nonoperation time, waiting time, and manufacturing lead time are all
reduced.
3. Simultaneous operations. A logical extension of the combined operations strategy is
to simultaneously perform the operations that are combined at one workstation. In
effect, two or more processing (or assembly) operations are being performed simultaneously
on the same work part, thus reducing total processing time.
4. Integration of operations. This strategy involves linking several workstations together
into a single integrated mechanism, using automated work handling devices
to transfer parts between stations. In effect, this reduces the number of separate
work centers through which the product must be scheduled. With more than one
workstation, several parts can be processed simultaneously, thereby increasing the
overall output of the system.
5. Increased flexibility. This strategy attempts to achieve maximum utilization of equipment
for job shop and medium-volume situations by using the same equipment for
a variety of parts or products. It involves the use of programmable or flexible automation
(Section 1.2.1). Prime objectives are to reduce setup time and programming
time for the production machine. This normally translates into lower manufacturing
lead time and less work-in-process.
6. Improved material handling and storage. A great opportunity for reducing nonproductive
time exists in the use of automated material handling and storage systems.
Typical benefits include reduced work-in-process, shorter manufacturing lead
times, and lower labor costs.
7. On-line inspection. Inspection for quality of work is traditionally performed after
the process is completed. This means that any poor-quality product has already
been produced by the time it is inspected. Incorporating inspection into the manufacturing
process permits corrections to the process as the product is being made.
This reduces scrap and brings the overall quality of the product closer to the nominal
specifications intended by the designer.
8. Process control and optimization. This includes a wide range of control schemes
intended to operate the individual processes and associated equipment more efficiently.
By this strategy, the individual process times can be reduced and product
quality can be improved.
9. Plant operations control. Whereas the previous strategy is concerned with the control
of individual manufacturing processes, this strategy is concerned with control
at the plant level. It attempts to manage and coordinate the aggregate operations
in the plant more efficiently. Its implementation involves a high level of computer
networking within the factory.
10. Computer-integrated manufacturing (CIM). Taking the previous strategy one level
higher, CIM involves extensive use of computer systems, databases, and networks
throughout the enterprise to integrate the factory operations and business functions.

2.3 Automa on Migra on Strategy

Owing to competitive pressures in the marketplace, a company often needs to introduce a
new product in the shortest possible time. As mentioned previously, the easiest and least
expensive way to accomplish this objective is to design a manual production method,
using a sequence of workstations operating independently.
Phase 1: Manual production using single-station manned cells operating independently.
This is used for introduction of the new product for reasons already
mentioned: quick and low-cost tooling to get started.
Phase 2: Automated production using single-station automated cells operating
independently. As demand for the product grows, and it becomes clear
that automation can be justified, then the single stations are automated
to reduce labor and increase production rate. Work units are still moved
between workstations manually.
Phase 3: Automated integrated production using a multi-station automated system
with serial operations and automated transfer of work units between
stations.
When the company is certain that the product will be produced
in mass quantities and for several years, then integration of the singlestation
automated cells is warranted to further reduce labor and increase
production rate.
3 Basic Elements of an Automated System

An automated system consists of three basic elements: (1) power to accomplish the
process
and operate the system, (2) a program of instructions to direct the process, and
(3) a control system to actuate the instructions.

[For question about control system write open loop and closed loop with example]

Power to Accomplish the Automated Process

An automated system is used to operate some process, and power is required to drive the
process as well as the controls. The principal source of power in automated systems is
electricity.
Electric power has many advantages in automated as well as nonautomated processes:
• Electric power is widely available at moderate cost. It is an important part of the
industrial infrastructure.
• Electric power can be readily converted to alternative energy forms: mechanical,
thermal, light, acoustic, hydraulic, and pneumatic.
• Electric power at low levels can be used to accomplish functions such as signal
transmission, information processing, and data storage and communication.
• Electric energy can be stored in long-life batteries for use in locations where an
external
source of electrical power is not conveniently available.
Power for the Process. In production, the term process refers to the manufacturing
operation that is performed on a work unit.
Loading and unloading the work unit. All of the processes listed in Table 4.1 are
accomplished on discrete parts.
Material transport between operations. In addition to loading and unloading at a given
operation, the work units must be moved between operations.
Power for Automation. Above and beyond the basic power requirements for the
manufacturing operation, additional power is required for automation.
The actions performed by an automated process are defined by a program of instructions.
Program of instruction
Whether the manufacturing operation involves low, medium, or high production, each part or
product requires one or more processing steps that are unique to that part or product.
Work Cycle Programs. In the simplest automated processes, the work cycle consists
of essentially one step, which is to maintain a single process parameter at a defined level, for
example, maintain the temperature of a furnace at a designated value for the duration of a
heat-treatment cycle. (It is assumed that loading and unloading of the work units into and
from the furnace is performed manually and is therefore not part of the automatic
cycle, so technically this is not a fully automated process.) In this case, programming simply
involves setting the temperature dial on the furnace. This type of program is set-point
control,
in which the set point is the value of the process parameter or desired
value of the controlled variable in the process (furnace temperature in this example). A
process parameter is an input to the process, such as the temperature dial setting, whereas a
process variable is the corresponding output of the process, which is the actual temperature
of the furnace
Work cycle programs are usually much more complicated than in the furnace Example
described. Following are five categories of work cycle programs, arranged in approximate
order of increasing complexity and allowing for more than one process parameter in the
program:
• Set-point control, in which the process parameter value is constant during the work cycle
(as in the furnace example).
• Logic control, in which the process parameter value depends on the values of other
variables in the process.
• Sequence control, in which the value of the process parameter changes as a function of
time. The process parameter values can be either discrete (a sequence of step values) or
continuously variable. Sequence control, also called sequencing.
• Interactive program, in which interaction occurs between a human operator and the control
system during the work cycle.
• Intelligent program, in which the control system exhibits aspects of human intelligence(e.g.,
logic, decision making, cognition, learning) as a result of the
work cycle program.

Control System
The control element of the automated system executes the program of instructions. The
control system causes the process to accomplish its defined function, which is to perform
some manufacturing operation. A brief introduction to control systems is provided here.
The following chapter describes this technology in more detail.
The controls in an automated system can be either closed loop or open loop. A closedloop
control system, also known as a feedback control system, is one in which the output
variable is compared with an input parameter, and any difference between the two is used
to drive the output into agreement with the input. A closed-loop control system consists of six
basic elements: (1) input parameter, (2) process,(3) output variable, (4) feedback sensor, (5)
controller, and (6) actuator.

4 Advanced Automated Function

In addition to executing work cycle programs, an automated system may be capable of
executing advanced functions that are not specific to a particular work unit. In general,
the functions are concerned with enhancing the safety and performance of the equipment.
Advanced automation functions include the following: (1) safety monitoring,
(2) maintenance and repair diagnostics, and (3) error detection and recovery.
4.1 Safety Monitoring
One of the significant reasons for automating a manufacturing operation is to remove
workers from a hazardous working environment. An automated system is often installed
to perform a potentially dangerous operation that would otherwise be accomplished manually
by human workers. However, even in automated systems, workers are still needed
to service the system, at periodic intervals if not full time. Accordingly, it is important that
the automated system be designed to operate safely when workers are in attendance. In
addition, it is essential that the automated system carry out its process in a way that is not
self-destructive. Thus, there are two reasons for providing an automated system with a
safety monitoring capability: (1) to protect human workers in the vicinity of the system,
and (2) to protect the equipment comprising the system.

4.2 Maintenance and Repair Diagnostics

Modern automated production systems are becoming increasingly complex and
sophisticated, complicating the problem of maintaining and repairing them.
Maintenance and repair diagnostics refers to the capabilities of an automated system
to assist in identifying the source of potential or actual malfunctions and failures of the
system. Three modes of operation are typical of a modern maintenance and repair diagnostics
subsystem:

4.3 Error Detection and Recovery

In the operation of any automated system, there are hardware malfunctions and unexpected
events. These events can result in costly delays and loss of production until the
problem has been corrected and regular operation is restored. Traditionally, equipment
malfunctions are corrected by human workers, perhaps with the aid of a maintenance and
repair diagnostics subroutine.
4.3.1 Error Detection. The error detection step uses the automated system’s available
sensors to determine when a deviation or malfunction has occurred, interpret the sensor
signal(s), and classify the error. Design of the error detection subsystem must begin with
a systematic enumeration of all possible errors that can occur during system operation.
The errors in a manufacturing process tend to be very application-specific. They must be
anticipated in advance in order to select sensors that will enable their detection.
errors occur as a result of the normal stochastic nature of the process.These errors occur when
the process is in statistical control
In analyzing a given production operation, the possible errors can be classified intoone of
three general categories: (1) random errors, (2) systematic errors, and (3) aberrations.
Random

4.3.2 Error Recovery. Error recovery is concerned with applying the necessary corrective
action to overcome the error and bring the system back to normal operation.
The problem of designing an error recovery system focuses on devising appropriate
strategies and procedures that will either correct or compensate for the errors
that can occur in the process. Generally, a specific recovery strategy and procedure
must be designed for each different error. The types of strategies can be classified as
follows:

5 Levels of Automation
Automated systems can be applied to various levels of factory operations. One normally
associates automation with the individual production machines. However, the production
machine itself is made up of subsystems that may themselves be automated. For example,
one of the important automation technologies discussed in this part of the book is computer
numerical control.
Device level. This is the lowest level in the automation hierarchy. It includes the actuators,
sensors, and other hardware components that comprise the machine level. The
devices are combined into the individual control loops of the machine, for example, the
feedback control loop for one axis of a CNC machine or one joint of an industrial robot.
Machine level. Hardware at the device level is assembled into individual machines.
Examples include CNC machine tools and similar production equipment, industrial
robots, powered conveyors, and automated guided vehicles. Control functions at
this level include performing the sequence of steps in the program of instructions in
the correct order and making sure that each step is properly executed.
Cell or system level. This is the manufacturing cell or system level, which operates
under instructions from the plant level. A manufacturing cell or system is a group
of machines or workstations connected and supported by a material handling system,
computer, and other equipment appropriate to the manufacturing process.
Production lines are included in this level. Functions include part dispatching and
machine loading, coordination among machines and material handling system, and
collecting and evaluating inspection data.
Plant level. This is the factory or production systems level. It receives instructions from
the corporate information system and translates them into operational plans for production.
Likely functions include order processing, process planning, inventory control,
purchasing, material requirements planning, shop floor control, and quality control.
Enterprise level. This is the highest level, consisting of the corporate information
system. It is concerned with all of the functions necessary to manage the company:
marketing and sales, accounting, design, research, aggregate planning, and master
production scheduling. The corporate information system is usually managed using
Enterprise Resource Planning

Production
Economics:

6 Methods of Evaluating Investment Alternatives

There are several methods of evaluating and comparing investment proposals, including the
following:

1. Payback period method

2. Present worth (PW) method
3. Uniform annual cost (UAC) method
4. Rate-of-return method
6.1 Payback method
The payback method uses the simple concept that the net revenues derived from an
investment should pay back the investment in a certain period of time (the payback
period). Let us refer to the net revenue in a given year as the net annual cash How
(NACF). If the revenues exceed costs for the year, the NACF is positive. If costs exceed
revenues, the NACF is negative.
Assuming for the moment that the net annual cash flows are positive and equal
from one year to the next, the payback period can be defined as follows :

where IC is the initial cost of the investment project, and n is the payback period
(expressed in years).

6.2 Present worth method

The PW method uses the equivalent present value of all current and future cash
flows to evaluate the investment proposal. The future cash flows are convened into
their present worths by using the appropriate interest factors. Accordingly, some
interest rate must be used in the factors. This interest rate is decided in advance and
represents the rate-of-retum criterion that the company is using to evaluate its
investment opportunities. If the aggregate present worth of the project is positive,
the retum from the project exceeds the rate-of-return criterion. If the present worth
of the project is negative, the project does
not meet the rate-of-return criterion.

6.3 Uniform annual cost method

The UAC method converts all current and future cash Hows to their equivalent
uniform annual costs using the given rate of retum. As with the present worth
method, a positive aggregate unifonn annual cost means that the project exceeds
the criterion.

6.4 Rate-of-return method

The rate-of-return method, also called the return-on-investment (ROI) method, goes
slightly beyond the PW and UAC methods by actually calculating the rate of return
that is provided by the investment. lf the calculated rate is greater than the criterion
rate of return, the investment is acceptable.
To determine the retum on investment, an equation must be set up with the rate of
return as the unknown. Either the PW method or the UAC method can be used to
establish the equation. Then the value of the interest rate i that drives the aggregate
PW or UAC to zero is determined.
7 Costs in Manufacturing

Manufacturing costs are the costs incurred during the production of a product. These costs include
the costs of:

 Direct Material - This refers to the primary raw materials used in the construction of a
final product.
 Direct Labor - It is that portion of the labor cost of the production process that is assigned
to a unit of production. Thus, all the staff who have a hand in the refining, assembly, and
manufacturing of your products are included here.
 Manufacturing Overheads - These are costs that are applied to units of production based
on a variety of possible allocation systems, such as by direct labor hours or machine hours
incurred. It includes all the indirect materials and labor costs that have a secondary or
support role.

 Some examples of manufacturing overheads are-

1. Salaries and wages for quality assurance, industrial engineering, factory management,
materials handling, and equipment maintenance personnel.
2. Equipment repair parts and supplies
3. Factory utilities
4. Factory-related insurance and property taxes
5. The reduction in the value of an asset year over year

7.1 Direct Costs

Direct costs refer to everything that is spent on the bulk of the manufacturing process. This could be
material costs (for example, raw materials) and time costs (for example, staff wages). For any costs
to be considered as direct costs, they must play a physical role in assembly or production.

7.2 Indirect Costs

Indirect costs in your manufacturing process do not come from raw materials or labor primarily
used in manufacturing. Instead, these costs include:

 Maintenance costs
 Utility bills
 Salary of the non-manufacturing staff
 maintenance, repair, and operations inventory

8 Break- Even Analysis

Break-even analysis is a method of assessing the effect of changes in production
output on costs, revenues, and profits. lt is most commonly conceptualized in the form
of a break-even chart. To construct the break~even chart, the manufacturing costs are
divided into fixed costs and variable costs. The sum of these costs is plotted as a
function of production output. To plot the total cost, the variable cost per unit change
in output must be determined. Revenues can also be plotted on a break-even chart as a
function of production output.
Break-even analysis can be used for either of two main purposes :
1. Profit analysis. In this case the break-even chart shows the effect of changes in
 output on costs and revenues. This gives a picture of how profits (or losses) will vary
for different output levels. The break-even point is the output level at which total costs
equal revenues and the profit is zero. Fig 3.2
2. Production method cost comparison. In this case the break-even chart shows the
effect of changes in output level on the costs of two (or more) different methods of
production. The break-even point for this chart is the output level at which the costs
for the two production methods are equal, (When more than two production methods
are plotted on the same chart. there will be a break-even point for each pair of
production methods.). Fig 3.3

9 Unit cost of production

The automated method outproduced the manual method, which is often the case in
comparing automation against manual production. To help decide between the
alternatives, it is often useful to determine the unit cost of production for the two (or
more) methods under consideration. The unit cost for a certain operation is the total
cost of production divided by the number of units produced. The total cost of
production includes both fixed and variable costs. Accordingly, because of the Fixed
portion of the cost of production, the unit cost will varies a function of annual output
Q. As the annual output increases, the unit cost decreases.

[Theory about the graph unit cost in

manual production and Automated
production]

For Small number of productions the

unit cost will be less in Manual
production.

For Larger production unit cost will be

less in Automated production.
10 Cost of Manufacturing Lead time and Work-in process
One of the considerations that is often overlooked in an automation proposal is the
effect that the automated method will have on manufacturing lead time and in-
process inventory. Automation will often result in dramatic reductions in both of
these factors by comparison to previous conventional manufacturing methods. In
this section we present a method for evaluating the cost of these factors.

An operation time is required for each step, and that time has an associated cost.
There is also a time between each operation, at least for most manufacturing
situations. which we have referred to as the non operation time, The non operation
time includes material handling, inspection, and storage. There is also a cost
associated with the non operation time. These time, and costs for a given part can be
illustrated graphically as shown in Figure.
The nonoperation costs (e.g., inspection, material handling, etc.).

The cost for each step is shown in Figure as a vertical line, suggesting no time lapse.
This is a simplification in the graph, since the time between operations spent waiting
and in storage is generally much greater than the time for processing, handling, and
inspection.
The total cost that has been invested in the part at the end of all operations is the
sum of the material cost and the accumulated processing, inspection, and handling
costs.
In addition to the costs shown in Figure (and approximated in next Figure), there are
two other sources of costs that should be accounted for. These are the cost of
investing in work-in-process and the cost of storing the work-in-process. Both are
related to the time that the parts spend in the factory. The investment cost results
because the company must pay its operating costs before receiving payment from
the customer for the parts. This investment cost is the accumulated cost of the part
(multiplied by the rate of net sum or interest rate, i, used by the company).
The storage cost results because work-in-process takes up space in the factory. In
some plants, WIP is placed in a special storage facility (e.g., an automated storage
system) between processing steps. In either case, there is a cost of storing the WIP.
The magnitude of ~the cost is generally related to the size of the part and how much
space it occupies.

Figure (Right side) shows the effect of adding the holding cost to the material,
operation, and non operation costs of a part or product during production in the
plant.