Page 104 - DMGT501_OPERATIONS_MANAGEMENT

Operations Management

Notes 2. System flexibility: System flexibility consists of parameters like:
(a) Volume flexibility which is a measure of the system's capability to be operated profitably
at different volumes of the existing part types;

(b) Expansion flexibility is the ability to build a system and expand it incrementally;
(c) Routing flexibility is a measure of the alternative paths that a part can effectively
follow through a system;
(d) Process flexibility measures the volume of the set of part types that a system can
produce without incurring any setup; and
(e) Product flexibility which is the volume of the set of part types that can be manufactured
in a system with minor setup.

3. Aggregate flexibility: This comprises of:
(a) Program flexibility which is the ability of a system to run for reasonably long periods
without external intervention;
(b) Production flexibility is the volume of the set of part types that a system can produce
without major investment in capital equipment; and
(c) Market flexibility that determines the ability of a system to efficiently adapt to changing
market conditions.
Flexibility issues are important in considering additional investment in plant or equipment.
Selection of methods to improve flexibility should reflect how the firm competes. Each type of
flexibility generates value differently, so a firm should emphasize categories of flexibility that
customers value most. It should be understood that no firm can excel on all dimensions of
flexibility.

Task Enlist the types of businesses that use self-service, product selection and
partnerships with customers. Give examples of brands.

4.3 Computer Integrated Manufacturing (CIM)

Computer Integrated Manufacturing, known as CIM, is the phrase used to describe the complete
automation of a manufacturing plant, with all processes functioning under computer control
and digital information tying them together. It was promoted by machine tool manufacturers in
the 1980's and the Society for Manufacturing Engineers (CASA/SME). Quite often it was mistaken
for the concept of a "lights out" factory. It includes computer-aided design/computer-aided
manufacturing, CAPP, computer-aided process planning, CNC, computer numerical control
machine tools, DNC, direct numerical control machine tools, FMS, flexible machining systems,
ASRS, automated storage and retrieval systems, AGV, automated guided vehicles, use of robotics
and automated conveyance, computerized scheduling and production control, and a business
system integrated by a common data base.
The heart of computer integrated manufacturing is CAD/CAM. Computer-aided Design and
Computer-aided Manufacturing systems are essential to reducing cycle times in the organization.
CAD/CAM is a high technology integrating tool between design and manufacturing. CAD
techniques make use of group technology to create similar geometries for quick retrieval.
Electronic files replace drawing rooms. CAD/CAM integrated systems provide design/drafting,
planning and scheduling, and fabrication capabilities. CAD provides the electronic part images,
and CAM provides the facility for tool path cutters to take on the raw piece.

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