Manufacturing is the application of physical and chemical processes to make parts and

products by altering raw material based on its :

- Geometry

- Properties

- Appearance

Manufacturing can also be defined as the conversion process of raw material into
products which conform to design specification or the transformation of materials and
information into goods for the satisfaction of human needs.
Dr Juri

Starting Materials

Machinery

Manufacturing Processes

Tooling

Power

Labor

Products
Scrap
and
Waste

Economically, manufacturing is the transformation of materials into items of greater value by

means of one or more processing and/or assembly operations, as depicted below:
Manufacturing Processes

Value Added

Starting Materials

Processed
Part
Material in Processing

Future Technologies in Manufacturing

Our challenges

Global
competition

Constant
need for
innovation

Reducing
energy
consumption

Materials
scarcity

Reducing
waste
generation
Complying
with
legislation

Dr Juri

Factories of the Future: Baselines

Technologies & enablers
Challenges & opportunities
Economical
Social
Sustainability
Environmental
Future products and markets

Advanced manufacturing processes

Mechatronics for advanced
manufacturing systems
ICT

Modelling, simulation and forecasting

Manufacturing Strategies
Knowledge Workers

Impact Through Focus:

The right technologies for the right challenges = the right research priorities

+ Measuring the (potential) impact of technologies

Extrusion

According to some economists, manufacturing is a wealth-producing sector of an

economy.

Manufacturing creates and provided job opportunities in many countries.

Growth in manufacturing therefore fuels other sectors, creating jobs and investment in
non-manufacturing sectors.

Manufacturing provides important material support for national infrastructure and for
national defence.

Support Infrastructure
Development
Support National Defense

Manufacturing companies are contributing to the country's income through the taxes
being paid by them.
Manufacturing generates new technologies that perform a vital role in aiding the
performance of other parts of the economy.

Pay tax

Contribute to
country

Generates technologies

Manufacturing operations exist in an environment of constant change and challenge.

Rising raw material costs, energy prices, demands of regulators and competitive threats
from offshore manufacturers are just some of the challenges that drive the need to seek
operational improvements.

Compete

Improvement

There are 4 competitive priorities which always been taken into account:
o Cost

o Quality
o Flexibility

o Dependability (or delivery)

Cost

Quality

Flexibility

Delivery

Cost can be lowered by running the production system efficiently.

Controlling product costs ; establishing tight cost control.
Achieving a high level of production standards.

Quality is associated with the conformance to specifications or quality of conformance.

It involves ensuring conformance of final products to design specifications and accuracy

in manufacturing.

The ability to introduce new products, adjust capacity and handle changes in the
product-mix.

Able to handle variations in the delivery schedule and the ability to customize products.

Ability to deploy and redeploy resources effectively in response to the changing

conditions.

Dr Juri

Delivery
Delivery Reliability

Delivery Speed

Manufacturing cost is the sum of costs of all resources consumed in the process of
making a product. The manufacturing cost is classified into three categories:
Manufacturing cost

Direct Labor Cost

Direct Material Cost

Manufacturing Overhead

The direct labor cost is the cost of workers who can be easily identified with the unit of
production.

Types of labor who are considered to be part of the direct labor cost are the assembly
workers on an assembly line.

Direct materials are the raw materials that become a part of the finished product.

Manufacturing adds value to raw materials by applying a chain of operations to maintain

a deliverable product.

There are many operations that can be applied to raw materials such as welding, cutting
and painting. It is important to differentiate between the direct materials and indirect
materials.

Manufacturing overhead is any manufacturing cost that is neither direct materials cost
nor direct labor cost.

Manufacturing overhead includes

o Indirect labor cost: The indirect labor cost is the cost associated with workers, such as supervisors

and material handling team, who are not directly involved in the production.

o Indirect materials cost: Indirect materials cost is the cost of associated with consumables, such as

lubricants, grease, and water, that are not used as raw materials.

o Other indirect manufacturing cost: includes machine depreciation, land rent, property insurance,

electricity, freight and transportation, or any expenses that keep the factory operating.

Value engineering (VE) is a systematic method to improve the "value" of goods or

products and services by using an examination of function.

Value, as defined, is the ratio of function to cost. Value can therefore be increased by
either improving the function or reducing the cost.

It is a primary tenet of value engineering that basic functions be preserved and not be
reduced as a consequence of pursuing value improvements.

1.
2.
3.

4.
5.

6.
7.
8.

Value engineering is often done by systematically following a multi-stage job plan. The
modern version of VE has the following eight steps:

Preparation
Information
Analysis
Creation
Evaluation
Development
Presentation
Follow-up

Awareness of VE is reasonably prevalent among engineers, however its practice is

considerably less extensive.

Where VE is undertaken, almost no attempt is made to benchmark VE activities against

international standards nor does its use appear to conform to any standard methodology.

Engineers prefer other ways of delivering value to projects, and do not generally employ
VE to facilitate the client briefing process.

Technologies

Cost

Management
Product
Industries

Labor
Development

Economy

Advanced

Competition

Drawing

Technical

Income

Currency
Skills

Processes

Leading

Material

Ostwald, P. F., McLaren, T. S. (2004), Cost Analysis and Estimating for Engineering and
Management
Manufacturing Engineering and Technology, Serope Kalpakjian, 10th Edition, Prentice
Hall, 2010.
John A.Schey, J.A., Introduction to Manufacturing Processes, 3rd Edition, McGraw Hill,
2000.
http://www.automationworld.com/operations/transforming-manufacturing-competitiveadvantage

Dr Juri