CPIM Module 1. Manufacturing
Strategies, KPIs, and Metrics
Manufacturing Process - answer The series of operations performed upon material to
convert it from the raw material or a semi finished state to a state of further completion.
Manufacturing processes can be arranged in a process layout, product layout, cellular
layout, or fixed-position layout. They can be planned to support MTS, MTO, ATO, and
so forth based on strategic use and placement of inventories.
Manufacturing Philosophy - answerThe set of guiding principles, driving forces, and
ingrained attitudes that helps communicate goals, plans, and policies to all employees
and that is reinforced through conscious and subconscious behavior within the
manufacturing organization.
Components - answerThe raw material, part, or subassembly, compound, or other item.
This term may also include packaging materials for finished items.
Modularization - answerIn product development, the use of standardized parts for
flexibility and variety. Permits product development cost reductions by using the same
item(s) to build a variety of finished goods. This is the first step in developing a planning
bill of material process.
Remanufacturing - answer1) An industrial process in which worn-out products are
restored to like-new condition. In contrast, a repaired product normally retains its
identity, and only those parts that have failed or are badly worn are replaced or
serviced. 2) The manufacturing environment where worn-out products are restored to
like-new condition.
Mass Customization - answerThe creation of a high-volume product with large variety
whose manufacturing cost is low due to the large volume, allowing customers to specify
an exact model out of a large volume of possible end items. An example is a personal
computer order in which the customer specifies processor speed, memory size, hard
disk size and speed, removable storage device characteristics, and many other options
when PCs are assembled on one line and at low cost.
Postponement - answerA product design, or supply chain strategy that deliberately
delays final differentiation of a product (assembly, production, packaging, tagging, etc.)
until the latest possible time in the process. This shifts product differentiation closer to
the consumer to reduce the anticipatory risk of producing the wrong product. The
practice eliminates excess finished goods in the supply chain. Sometimes referred to as
delayed differentiation.
, Package-to-Order (PTO) - answerA production environment in which a good or service
can be packaged after receipt of a customer order. The item is common across many
different customers; packaging determines the end product.
Supplier Lead Time - answerThe amount of time that normally elapses between the
time an order is received by a supplier and the time the order is shipped.
Procurement Lead Time - answerThe time required to design a product, modify or
design equipment, conduct market research, and obtain all necessary materials. Lead
time begins when a decision has been made to accept an order to produce a new
product and ends when production commences.
Purchasing Lead Time - answerThe total lead time required to obtain a purchased item.
Included here are order preparation and release time; supplier lead time; transportation
time; and receiving, inspection, and put-away time.
Manufacturing Lead Time - answerThe total time required to manufacture an item,
exclusive of lower-level purchasing lead time. For make-to-order products, it is the
length of time between the release of an order to the production process and shipment
to the final customer. For make-to-stock products, it is the length of time between the
release of an order to the production process and receipt into inventory. Included are
order preparation time, queue time, setup time, run time, move time, inspection time,
and put-away time.
Flow Processing - answerIn process systems development, work flows from one
workstation to another at a nearly constant rate and with no delays. When producing
discrete (geometric) units, the process is called repetitive manufacturing; when
producing non-geometric units over time, the process is called continuous
manufacturing.
Flow Shop - answerA form of manufacturing organization in which machines and
operators handle a standard, usually uninterrupted, material flow. The operators
generally perform the same operations for each production run.
Discrete Manufacturing - answerThe production of distinct items such as automobiles,
appliances, or computers.
Repetitive Manufacturing - answerThe repeated production of the same discrete
products or families of products. This method minimizes setups, inventory, and
manufacturing lead times by using production lines, assembly lines, or cells. Work
orders are no longer necessary; production scheduling and control are based on
production rates. Products may be standard or assembled from modules. It is not a
function of speed or volume.
Assembly Line - answerAn assembly process in which equipment and work centers are
laid out to follow the sequence in which raw materials and parts are assembled.
Strategies, KPIs, and Metrics
Manufacturing Process - answer The series of operations performed upon material to
convert it from the raw material or a semi finished state to a state of further completion.
Manufacturing processes can be arranged in a process layout, product layout, cellular
layout, or fixed-position layout. They can be planned to support MTS, MTO, ATO, and
so forth based on strategic use and placement of inventories.
Manufacturing Philosophy - answerThe set of guiding principles, driving forces, and
ingrained attitudes that helps communicate goals, plans, and policies to all employees
and that is reinforced through conscious and subconscious behavior within the
manufacturing organization.
Components - answerThe raw material, part, or subassembly, compound, or other item.
This term may also include packaging materials for finished items.
Modularization - answerIn product development, the use of standardized parts for
flexibility and variety. Permits product development cost reductions by using the same
item(s) to build a variety of finished goods. This is the first step in developing a planning
bill of material process.
Remanufacturing - answer1) An industrial process in which worn-out products are
restored to like-new condition. In contrast, a repaired product normally retains its
identity, and only those parts that have failed or are badly worn are replaced or
serviced. 2) The manufacturing environment where worn-out products are restored to
like-new condition.
Mass Customization - answerThe creation of a high-volume product with large variety
whose manufacturing cost is low due to the large volume, allowing customers to specify
an exact model out of a large volume of possible end items. An example is a personal
computer order in which the customer specifies processor speed, memory size, hard
disk size and speed, removable storage device characteristics, and many other options
when PCs are assembled on one line and at low cost.
Postponement - answerA product design, or supply chain strategy that deliberately
delays final differentiation of a product (assembly, production, packaging, tagging, etc.)
until the latest possible time in the process. This shifts product differentiation closer to
the consumer to reduce the anticipatory risk of producing the wrong product. The
practice eliminates excess finished goods in the supply chain. Sometimes referred to as
delayed differentiation.
, Package-to-Order (PTO) - answerA production environment in which a good or service
can be packaged after receipt of a customer order. The item is common across many
different customers; packaging determines the end product.
Supplier Lead Time - answerThe amount of time that normally elapses between the
time an order is received by a supplier and the time the order is shipped.
Procurement Lead Time - answerThe time required to design a product, modify or
design equipment, conduct market research, and obtain all necessary materials. Lead
time begins when a decision has been made to accept an order to produce a new
product and ends when production commences.
Purchasing Lead Time - answerThe total lead time required to obtain a purchased item.
Included here are order preparation and release time; supplier lead time; transportation
time; and receiving, inspection, and put-away time.
Manufacturing Lead Time - answerThe total time required to manufacture an item,
exclusive of lower-level purchasing lead time. For make-to-order products, it is the
length of time between the release of an order to the production process and shipment
to the final customer. For make-to-stock products, it is the length of time between the
release of an order to the production process and receipt into inventory. Included are
order preparation time, queue time, setup time, run time, move time, inspection time,
and put-away time.
Flow Processing - answerIn process systems development, work flows from one
workstation to another at a nearly constant rate and with no delays. When producing
discrete (geometric) units, the process is called repetitive manufacturing; when
producing non-geometric units over time, the process is called continuous
manufacturing.
Flow Shop - answerA form of manufacturing organization in which machines and
operators handle a standard, usually uninterrupted, material flow. The operators
generally perform the same operations for each production run.
Discrete Manufacturing - answerThe production of distinct items such as automobiles,
appliances, or computers.
Repetitive Manufacturing - answerThe repeated production of the same discrete
products or families of products. This method minimizes setups, inventory, and
manufacturing lead times by using production lines, assembly lines, or cells. Work
orders are no longer necessary; production scheduling and control are based on
production rates. Products may be standard or assembled from modules. It is not a
function of speed or volume.
Assembly Line - answerAn assembly process in which equipment and work centers are
laid out to follow the sequence in which raw materials and parts are assembled.
