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STRATEGIES
SHENG MA
Submitted in Partial Completion of the Requirements of
IEM 5303
Advanced Manufacturing Systems Design
Fall 2000
Page i
Table of Contents
shenG mA.............................................................................................................................i
INTRODUCTION TO cim.................................................................................................1
History............................................................................................................................ ...........1
The Need for CIM........................................................................................................2
Benefits of CIM...........................................................................................................2
Background.........................................................................................................................3
Implementing CIM...........................................................................................................5
COnclusion.......................................................................................................................14
Bibliography......................................................................................................................14
List of Figures
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INTRODUCTION TO CIM
HISTORY
For much of the twentieth century, U.S. manufacturers were unchallenged in an
environment in which conservative approaches to both process technology and
managerial techniques produced successful results. Foreign competition was minimal.
Companies modified strategies and processes in minor ways in response to shifting
economic circumstances. During 1950s and 1960s, the America enjoyed a golden era of
manufacturing and the emphasis in manufacturing was on providing substantial
additional plant capacity that was needed just to keep up with market growth. Since
manufacturers had their hands full simply adding capacity of a know type, they saw no
need to add new process technologies at the same time, quality and cost were ignored.
Many U.S. firms spent incremental dollars on product technology and very little on new
process technology. Beginning in the early 1970s, the rate of growth slowed. By the
beginning of 1980s, U.S. manufacturing has the slowest growth compare to major
competitors like Japan, West German, U.K. and France. Also, U.S. manufacturer has the
highest labor cost. At the mean time, foreign manufacturer like Japan, are providing
much better quality and much cheaper products by adopting new process technologies
and new management concepts. With continuing cost and quality pressure from global
competitors, top management beginning to search ways to improve production processes
other than 1970s automation activities. One development is the concept of CIM. CIM
has been defined as the deliberate integration of automated system into the processes
producing a product. The CIM concept has taken hold in U.S. manufacturing and
companies are putting vast sums of money into automating their operations. However,
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the implementation of CIM was not successful at the early stage. Companies have failed
in the implementation of CIM in as many different ways as there are companies (3).
This lack of was partially attributed to the fact that the great majority of the senior
managers fail to understand and promote the implementation of CIM, also the lack of
success was due to lack of cooperation between computer and control vendors. By this
time, strategic approach of implementing CIM is realized.
Benefits of CIM
Many of the firms that are currently using CIM have reported a number of
improvement (5):
• 15-30% reduction in engineering design costs
• 30-60% reduction in overall lead times
• 40-70% gain in overall production
• 200-500% gain in product quality
• 30-60% reduction in work-in process.
While CIM programs have reported large gains for manufacturing firms, CIM can
be costly and difficult to implement. CIM implementations require large capital
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expenditures, a strong commitment from top management, organizational flexibility and
partnership.
BACKGROUND
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for the firm. People at different levels of the firm should understand specific factors in
favor of a specific CIM concept for each firm. Among these factors:
• Marketing demands (products, quality, delays…);
• Technical and economic objectives of the company (reduction of
manufacturing costs, improvement of material flow, information
flow...)
• Degrees of computerization and networking (type of hardware
and software, network implementation, size of network,
distributed architectures…)
• Factors specific to the manufacturing conditions (formation,
personnel, and types of machines, types of technologies,
production strategy, size of company…).
CIM overall is a specific strategy embracing all the components above to help
achieve companies long term objectives.
MANUFACTURING SYSTEMS
Manufacturing maybe defined as a series of interrelated activities and operations
involving the design, selection of materials, planning, production, quality assurance,
management, and marketing of discrete consumable and durable goods. The interaction
among these activities and operations form a total manufacturing system. A system is an
organized collection of human resources; machines, tools, and equipment resources;
financial resources; and methods required to accomplish a set of specific function. A
typical manufacturing enterprise can be viewed as representing a conceptual system
whose major functions are business, engineering, human resources, and production.
Manufacturing phases can be summarized as follows:
• Early planning and product support.
Typical of such activities are forecasting, product selection and
contracts, advanced engineering and research, business and
product support planning, and operational research. Teams
from the major functions work together during this phase.
• Engineering and product design.
Design engineers analyze, synthesize, design, and cultivate the
product to meet a set of design specifications. If the product as
designed meets the specifications, engineering management
approves it.
• Manufacturing engineering.
Manufacturing engineering, sometimes called production
engineering, develops the production processes by which the
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design is translated into manufactured goods at the lowest
possible cost.
• Production planning.
Production planning may be defined as the systematic
scheduling of workers, materials, and machines by using lead
times, time standards, delivery dates, work loads, and other
similar data.
• Production controls.
This phase involves directing or regulating the movement of
goods through the entire manufacturing cycle from the
requisitioning of raw materials to the delivery of the finished
product.
• Production.
This phase involves the operation of changing the shape,
composition or combination of materials, parts, or
subassemblies to increase their value.
• Product shipment and support.
The final phase is to deliver to the customer quality products
and services in a timely manner. This phase also provides
complete support for the products.
IMPLEMENTING CIM
PREREQUISITE
CIM represents a complex environment, embodying all activities of designing,
making, and marketing a product. All firms need to be computerized to achieve a true
CIM environment.
Hardware
Parallel-processing-based hardware and fifth-generation computers are needed for
CIM to become widespread. Because of the interaction among numerous computers and
other devices, a local area network (LAN) is needed for each geographical location. If
the manufacturing business is carried out at different locations or in different countries,
the LANs must be connected to each other via wide area networks (WANs).
CIM Software
CIM software is an integrated package containing as many individual programs
functionally amalgamated into one as possible. The CIM environment requires
application program that can be easily integrated. Typical CIM software should be able
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to handle all major production tasks in conjunction with other business tasks. It should
be capable of:
• Managing NC programs and their distribution,
• Shop-floor data collection,
• Interface to any NC/CNC system,
• Handling manufacturing management functions such as
prescheduling job flow and saving shop-edited programs,
• Electronic mailing throughout the plant and office,
• Creating database-accessible files using shop-floor data, and
• Working in varies operating environments (Dos, Unix).
CIM Workstations
Workstations are specialized computer systems that have tailored hardware and
software to carry out specific tasks more efficiently. Workstations are fast and have
sufficient memory to handle manufacturing tasks more efficiently.
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the CIM project is principally dependent on the capacities of
the CIM team to overcome complex relations and to build
appropriate representation models close to the CIM strategy.
• Collaboration with partners.
This includes the internal collaboration and the outside
consultants, advisors, and suppliers of CIM components.
Mission Statement
Company’s Objectives
Strategies
Business Plan
Resources Allocation
Implementation Plan
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which outline the best way of achieving the objectives and accomplishing the mission,
given the constraints of the market and the resources of the company, are then set. These
strategies are elaborated upon in a business plan, which shows the specific targets to be
sought at specified points in time (i.e., goals), and an array of prioritized
programs/projects through which the goals are pursued and the strategies implemented.
Finally, funds, personnel, etc are allocated to the programs/projects (i.e., resources
allocation), and an implementation plan is created to ensure their successful
implementation.
Setting the Strategies
To achieve the objectives and accomplish the mission, the company must set three
strategies: the market, the product, and the manufacturing strategy. The manufacturing
strategy must be connected to the market and product strategies – it must be derived from
the latter and at the same time it must support and influence them. The latter must
themselves be closely coupled and their choice must be the results of careful analysis of
the external environment, the company’s objectives, and the strengths and weaknesses of
the company itself.
Developing the Plan
The process of developing and implementing CIM can be described in the
following eight discrete stages.
• Project initiation. During this stage, the overall project
organization and methodologies are established. Personnel are
assigned to the project and trained in specialized techniques for
developing a CIM plan.
• Development of the company’s economic model. The model
shows all the performance measures which can be related to the
critical success factors and their relationships with the factors,
and relationships between the critical success factors and
business metrics such as price and market share.
• “As-is” analysis. Analyses of the company’s current environment
to provide the baseline for further analysis and improvement
efforts.
• Needs analysis. An analysis conducted to identify the business
functions, which could most effectively benefit from new
technologies.
• Selection and evaluation of improvement technologies.
Alternative technologies that support the manufacturing
objectives and are consistent with the manufacturing strategy are
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selected for evaluation against both economic and non-economic
criteria.
• Master plan. The total package of selected technologies with a
specific request for expenditure is then submitted to top
management. Once approved, it is converted into a master plan
for implementation.
• Incremental implementation. The master plan is implemented on
a project-by-project basis, either starting with the projects that
promise the highest returns, or with the least threatening projects
and letting the implementers “steer” the culture and build
confidence in the workforce.
• Cost-benefits tracking. The actual costs incurred and the benefits
attained are ascertained.
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Cost-Benefits Tracking
Cost-benefits tracking necessitates the capturing of data required monitoring the
status of the critical success factors, and also the identification of the sources of these
data. Once the required data are captured, the actual cost and performance baselines are
developed and are then compare to the “to-be” cost and performance baselines to identify
variances.
A Continuous Planning process
As things changed overt time, the CIM plan must be reviewed periodically to
reflect these changes. Within a few years, the implemented projects will be the subject of
a new “as-is” analysis, needs will have to be reassessed, and the plan reviewed.
Needs for Successful Implementation of CIM
CIM should be implemented from a position of strength, not weakness. The CIM
implementers need to decide whether the company is in a strong position to implement
CIM. Following are some prerequisites for successful implementation of CIM:
• Top management involvement. Top management involvement is
always a critical factor in any major change in an organization.
They not only should be committed, but also be actively involved
in CIM planning.
• A knowledgeable work force. Knowledge of employees consists
of skills, experience, and talent they bring to the company. All
are highly relevant to CIM implementation.
• A smooth normal functioning and highly readiness for CIM. The
day-to-day operations of the company should normally be carried
out in a planned thoughtful way rather than in a crisis mode.
• An organizational culture conducive to CIM implementation.
The implementation of CIM demands some cultural upheaval.
This becomes a selling job for all management levels,
accompanied with an unending education process for the work
force.
• A supportive infrastructure. CIM requires an infrastructure
considerably different from what exists in most companies today.
So the organization of the company may have to be altered to
make more effective use of the new technologies.
• Adoption of industrial standards. Industrial standards, when
widely adopted by vendors, generally lower the cost of systems
and equipment. They increase the options for user when sourcing
systems and equipment, and simplify the tasks of system
development and integration. They facilitate ready accessibility
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and free flow of information and also allow for flexibility to
make partial upgrades and replacements of integrated systems
when new technologies appear (7).
Establishing Objectives
The starting point for a CIM system is the strategic planning of the enterprise by top
management, project leaders, etc. The enterprise can orient itself according to one of
three general objectives:
• Cost leadership
• Product variety
• Market position.
These generalized objectives are then rendered more operational in the subsequent
evaluation of concrete CIM sub-projects (process chains).
Implementation Paths:
Figure 2 represents implementation paths leads to the same global CIM
implementation.
Technical Data
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CAD-
NC
CAD-NC-
DNC
PP-CAD-NC DNC-CAD-NC-PP
PP-CAD-NC-CAP
PP-CAD
PP-CAD-CAQ PP-ODC-CAQ-CAD
Globa
l
PP-ODC-MC-CAP CIM
PP-MC-ODC
PP-ODC-MC-CAQ
PP-ODC
PP-CAQ-
ODC
PP-CAQ
Business data
CAD = Design/Development
CAP = Process planning system
CAQ = Quality assurance
DNC = Cluster of several NC systems
MC = Manufacturing control system
NC = NC programming system
ODC = Operational data collection
PP = Production planning
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with CAQ by adopting test plans (see lower shadowed path). Thereafter, this can be
linked with an operational data collection system for feedback of quality data. CAD is
then introduced in a subsequent step.
The current problem for another enterprise might be that of linking CAD with NC
programming, so as to shorten the delivery time on variant orders. The next step would
then be to introduce DNC and thereafter to reorganize production planning (see the upper
shadowed path).
More detailed model development could be seen in reference (6).
CONCLUSION
BIBLIOGRAPHY
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Strategy", Manufacturing Systems, Volume 9, Issue 11, pages 64-68, Wheaton, Nov.
1991.
4. Victor Sandoval, Computer-Integrated Manufacturing (CIM) in Japan, Elsevier,
Amsterdam-London-New York-Tokyo, 1994.
5. John S. Morris and Linda J. Morris, “Problems In CIM implementation: A Case
Study of Nine CIM Firms”, Computers ind. Engng., Volume 27, Nos. 1-4, pages 147-
150, 1994.
6. August-Wilhelm Scheer, CIM: Towards the Factory of the Future, Springer-Verlag,
New York, 1994.
7. C.L.Ang, “Planning and Implementing Computer Integrated manufacturing”,
Computers in Industry, Volume 12, Pages 131-140, 1989.
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