AMERICAN UNIVERSITY IN CAIRO ENGR 541 Fall 2002 Copyright, 1996 © Dale Carnegie & Associates, Inc....

AMERICAN UNIVERSITY

IN CAIRO ENGR 541 Fall 2002

Copyright, 1996 © Dale Carnegie & Associates, Inc.

Dr. Lotfi K. Gaafar

Sherif Masoud

Mass Customization & Flexible Manufacturing

Systemsby

ENGR 541 Fall 2002 Dr. Lotfi K. Gaafar


SystemsSherif Masoud

AUC

Introduction

•MC Overview •MC at HP•FMS Overview•FMS at MATC•Summary•References

Purpose: This presentation sheds light on the existence of Mass Customization and Flexible Manufacturing Systems in the real world.

Technique: First, every topic is introduced. Second, a published case study, on very topic, is presented after recasting it in a structure that facilitates understanding and analyzing.

Result: More understanding of discussed topics.




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From Mass Production Mass production as the manufacturing

‘miracle’ Economies of scale: the larger the

better Breakdown of mass production: 60s,

70s, 80s, 90s,… Heterogeneous American society:

customers do not like standardized products any more

Globalization: the rest of the world too





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To Mass Customization Mass Customization(MC): only means

to satisfy diverse needs, keeping production costs low

Goal: to deliver customized products at price of comparable mass-produced items

Companies now are trying hard to customize

Customers have plenty of choices MC is for both production of goods

and provision of services





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Increasing Product Customization

Item Early 70s Late 90sVehicle models 140 260

Bicycle types 8 31

TV screen sizes 5 15

Bottled H2O brands 16 50

Milk types 4 19

Magazine titles 339 790

Source:Cox, M. C.; Alm, R. 1998. “The Right Stuff: America’s Move to Mass Customization.” Federal Reserve Bank of Dallas, 1998 Annual Report. @http://www.dallasfed.org/htm/pubs/pdfs/anreport/arpt98.pdf.





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Examples & Economies of Scope

Newspapers: The Wall Street Journal and others can now be customized and sent via email

Jeans: Tailored Levi’s jeans with little extra time and money

Economies of scope: the more diverse the output and the less the costs, the better

Engineering today tries to achieve this objective such that the constraint is satisfied





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Origin & Significance Alvin Toffler anticipated MC in his 1970

book, Future Shock. In 1987, Stan Davis delineated MC and

also coined the term in his book Future Perfect.

MC has been attracting increasing attention from academic and industrial communities.

Articles Books Engineering Master’s Thesis at PSU MCPC 2003





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Implementation Gilmore and Pine II identify four

distinct approaches that clearly and logically describe how to achieve MC

Generic set: one or more can be applied in any industry of goods or services

Collaborative Adaptive Cosmetic Transparent





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Collaborative What first comes to one’s mind when

thinking about MC A dialogue helps:

articulate needs identify precise offering that fully

satisfies those needs make customized products





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Collaborative Example Paris Miki’s company: a digital system

takes a picture of the customer’s face and statements about how he/she wants to look

recommends a distinctive lens size and shape

displays the lenses on the digital image of the customer’s face.

Customer and optician collaborate to adjust the shape and size of lenses





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Collaborative Example Customers select from a number of

options for nose bridge, hinges, and arms in order to complete the design.

Then they receive a photo of themselves with the proposed eyeglasses on.

Finally, a technician grinds the lenses and assembles the eyeglasses in the store in an hour or less.





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Adaptive Manufacturers offer one standard but

customizable product that is designed so that users can alter it themselves

This is needed, for instance, when customers want a product to function differently in different occasions

It is possible when technology makes it easy for them to change the product easily on their own.





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Cosmetic Companies present a standard

product differently to different customers.

Standard offering is packaged specially for each customer.

T-shirts or sweatshirts are personalized by placing customers’ names or initials on them.

Peanut packages come in different sizes to match all wants.





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Transparent Companies provide individual

customers with unique goods or services without letting them know explicitly that those products or services have been customized specially for them.

Customers’ behavior is observed without interaction and then offerings are customized within a standard package.

This type of customization is good to apply with repeat customers.





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Four Faces


Transparent

Cosmetic

Collaborative

No change Change

No change

Change

Source: Gilmore, J.H.; PineII, B.J. 1997. “The Four Faces of Mass Customization.” Harvard Business Review, v75, n1. P91-101.

Adaptive

Representation

Product




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MC at HP

Hewlett-Packard (HP) is an industry leader that deals with computers, printers, and medical products among others.

HP faces the challenge of mass customizing its products, delivering them rapidly, and at the same time reducing costs.

Three real case studies show how HP deals with these challenges.

•MC Overview•MC at HP•FMS Overview•FMS at MATC•Summary•References

Source: Feitzinger, E.; Lee, H.L. 1997. “Mass Customization at Hewlett-Packard: The Power of Postponement.” Harvard Business Review, v75, n1. P116-121.




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LaserJet Printers Problem: The core engine has a

dedicated power supply which is either 110 or 220 volts.

This forces differentiating by end user as soon as production begins in Japan.

Methodology: A power supply that works in all countries is built into the product.

Results and Analysis: total costs of manufacturing, stocking, and delivering are reduced by 5% per year.





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DeskJet Printers Problem: needs to customize its

DeskJet printers that are sold in Europe and Asia to increase competitiveness.

Methodology: printers are customized at local distribution centers rather than at factories.

Results and Analysis: manufacturing costs are slightly higher than when factories customize, but the total manufacturing, shipping, and inventory costs drop by 25%.





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Personal Computers Problem: Inventory clearance sales to

get rid of products at the end of their model lives occurred frequently.

Methodology: HP postponed integrating the PC board, processor, chassis..etc. until orders are received at distribution centers.

Results and Analysis: savings on transportation and duty costs and greatly increased return delivering a customized product more quickly& cheaply than competitors.





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Classification Instance Customization

ClassLaserJet Printers AdaptiveDeskJet Printers

CollaborativePersonal Computers

Collaborative





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FMS Overview


FMS: several machine tools are linked together by a material-handling system & controlled by a central computer.

It can process more than one product style simultaneously

New product styles can be introduced so long as they fall within a certain range that the system is designed to process.

Operational problems deal with decision making on a short-term planning horizon.




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Introduction

This study is a result of an independent study project at Milwaukee Area Technical College.

FMS Cell: Six-axis robot, horizontal sp. mill,vertical sp. mill, gripper change station,lathe, rough part loading area, finished part unloading area.


Source: Musil, D.C.; Akbay, K.S. 1989. “Improve Efficiency of a FMS Cell through Use of a Computer Simulation Model.” IE Magazine, v21, n11. P28-34.




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FMS cell is set up to produce components for a vise: base, jaw, and screw.

Every part is machined on only one particular machine.

The components arrive as rough castings.

Robot: transports, loads, repositions for additional operations on the same machine, and transports finished parts.


Description




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To increase cell output by making only scheduling changes.

To change the sequence of part processing and handling to reduce cycle time.

Cycle time = total time spent in the system to manufacture exactly one unit of each one of the three component parts.


Problem




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Discrete-event simulation

“What if” questions (scenarios) then run the model over 4800 minutes.

Only resource that is shared by more than one component is robot. Change priorities associated with robot.

Statistics focus on how much time a component spends waiting for a particular resource (three machines and robot).


Methodology




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Current policy: B-J-S-B-J-W-J-B-J

Policy 1: B-J-S-J-B-J-B-J

Policy 2: B-J-S-J-B-S-J-B-J

Policy 3: S-J-B-J-W-B-W-J-B-J-S

B=base, J=jaw, S=screw, W=wait

Time spent in system for every part and system output are observed for every policy.


Methodology




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Current policy Pol. 1 Pol. 2 Pol. 3

Time(min)

base 9.62 8.66 8.51 6.49

jaw 10.87 9.91 9.76 7.43

screw 5.13 5.13 6.55 8.79

Syst. out. (cycle) 441 484 491 546

% increase - 9.75 11.33 23.81


Results and Analysis




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A real case study about an FMS scheduling problem.

Solved using simulation.

Results and analysis were highlighted.

It was also implicitly shown how in real life an FMS Cell is used to manufacture a variety of parts simultaneously.


Conclusion




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Summary MC Four Faces MC at HP

LaserJet Printers DeskJet Printers Personal Computers

FMS structure and capabilities FMS at MATC

Real FMS Simulation





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References "Automation." 2002. Encyclopedia Britannica @

http://search.eb.com/eb/article?eu=117180 Cox, M. C.; Alm, R. 1998. “The Right Stuff: America’s Move

to Mass Customization.” Federal Reserve Bank of Dallas, 1998 Annual Report. @

http://www.dallasfed.org/htm/pubs/pdfs/anreport/arpt98.pdf.

Feitzinger, E.; Lee, H.L. 1997. “Mass Customization at Hewlett-Packard: The Power of Postponement.” Harvard Business Review, v75, n1. P116-121.

Gilmore, J.H.; PineII, B.J. 1997. “The Four Faces of Mass Customization.” Harvard Business Review, v75, n1. P91-101.

Levi Strauss & Company Web Site. 2002. @ www.levi.com Lau, R.S.M. 1995. “Mass Customization: The Next Industrial

Revolution.” Industrial Management, v37, n5. P18-19.





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References


Musil, D.C.; Akbay, K.S. 1989. “Improve Efficiency of a FMS Cell through Use of a Computer Simulation Model.” IE Magazine, v21, n11. P28-34.Pine II, B.J. 1993. “Mass Customizing Products and Services.” Planning Review, v22, n4. P6-13. Shaukat, M. 2001. “Modularity, Platforms, and Mass Customization in the Automotive Industry.” The Pennsylvania State University, Masters of Science in Industrial Engineering Thesis @ http://www.ie.psu.edu/research/graddis.htm Singh, N. 1996. Systems Approach to Computer-Integrated Design and Manufacturing. John Wiley &Sons, Inc., New York.




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Thank You for listening

Ready for your questions•MC Overview•MC at HP•FMS Overview•FMS at MATC•Summary•References

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