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Flow ,Discrete & Process manufacturing in ERP ?

Posted on November 10th, 2007 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

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This is a very basic question for ERP consultants , what is basic difference into two manufacturing operation : discrete manufacturing and process manufacturing . Lets redefined and understand in simple words:

As we know, in ERP prospective manufacturing operation can be broadly classified into two major category:

  • Flow manufacturing
  • Discrete manufacturing
  • Process manufacturing

arrow upDiscrete Manufacturing

discrateDiscrete manufacturing is distinguished by the production of distinct items that use bills of material and routings to determine costs and lead times.

Examples: Automobile manufacturing, computer manufacturing, dishwasher and washing machine manufacturing, etc .

Typically they follows either a Product, Process or a Combination Layout these layouts can be understood like:

  • Product Layout - Processes come to the product . typical example are Ship Building, Car Assembly Line, PC's, etc.
  • Process Layout - Products go to Process areas Typical Example are Cabinets and Casings, Sub-assemblies, Rubber Mixing, etc.

Is normally a Product that is "Built Up" from components or sub-assemblies.

A note with Oracle Product
Discrete manufacturing is Oracle Applications method to handle the unique problems in manufacturing equipment, like electronics, medical devices or a complicated assembly like the space shuttle as indicated above.

Discrete manufacturing is based on piece parts that are assembled or machined to make larger assemblies.

Oracle Discrete Manufacturing has a great deal of functionality to manage the Bills of Materials, Routings and Engineering changes that are required to adequately track assembly and cost the finished product.

arrow upFlow Manufacturing
Flow manufacturing is also called Lean Manufacturing or JIT(Just-In-Time) and uses the principles of demand flow manufacturing to produce product is required, for customer orders, quickly and to meet the demand exactly on-time.

Usually, in order to use Flow a company needs to have production facilities that subscribe to the principals of Lean Manufacturing. It is necessary to design production facilities so that production lines, resources, machines, and labor are making only what is needed for immediate customer orders.

arrow up

Process Manufacturing

discrate2Process manufacturing is distinguished by a production approach that has minimal interruptions in actual processing in any one production run, or between production runs of similar products. This approach produces multiple unique products in relatively small batches flowing through different production operations throughout the factory.

They typically follows a Process Layout.

They are normally producing a Product that is "Homogeneous" and equally divided for the convenience of packaging.

Typical examples are Food, pharmaceutical and other batched-based manufacturers such as refineries, wineries, etc .

A Note with Oracle Process Manufacturing
The OPM capabilities allow for multiple units of measure because the flexibility in batch production is required in process industries.

Process manufacturing is used at companies that make products that use formulas, receipts and/or have co-products or by products. Typical users of OPM are manufactures of food products or chemicals that have complex internal processes and need a high level of control.

The OPM capabilities allow for multiple units of measure because the flexibility in batch production is required in process industries.

greWhat makes process manufacturing different from discrete?

Process manufacturing uses formulations or recipes. A discrete manufacturer uses Bills of Materials (BOMs). A discrete manufacturer assembles along a routing, whereas a process manufacturer blends in a batch.Apart from these other difference with other factors are summurized as:

difference

bluWhich come under which category ?

industries

 

 

 

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Posted in Beginner, Oracle Manufacturing | 15 Comments »Email This Post Email This Post | Print This Post Print This Post

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15 Responses
  1. ERP Options for “Process Related Industries” -Aberdeen Report Says:

    […] The difference between Discrete and Process can be best understood in my previous post. […]

  2. John Nayak Says:

    I think, the basic diffrence in Process and Discrete Mfg is that in Process Mfg. the final product cannot be broken down into the ingredients that have been used to make the product whereas in Dicrete Mfg. the final product can be broken down into subassemblies and further into parts.

  3. Sanjit Anand Says:

    John, i think you have slightly moved from defination.Please revisit once again.

  4. C.H. Yu Says:

    What about the Printed Circuit Board ? Discrete ? Repetitive ? or Process manufacturing ?

    Thanks!

  5. raed Abu shafa'a Says:

    allow me to thank you for the information ,its very useful

    many many thanks

    Raed

  6. Narendra K Dixit Says:

    Simply Nicely explained… NKD

  7. nirupa Says:

    Well done job. Thanks for the neat explanation.

  8. Brajesh Dwivedi Says:

    Thanks For so clean explation..

    BD

  9. Prakash Kumar Says:

    Thanks for the good work done by you. Have explained the basic things which are difficult to be found elsewhere. But expecting more on Oracle Purchasing and Inventory.

  10. AVANEESH KUMAR GUPTA Says:

    Supeb note on maufacturing processes

  11. Kumar Says:

    Hi,

    We are planning to implement flow manufacturing,do you have any more information on what kind of industuries go for flow manufacturing?

    Regards,
    kumar

  12. Md. Nazrul Islam Says:

    very nice!! Thanks you very much

  13. David Jones Says:

    A Portion of our manufacturing is done using die cutters which can be designed to cut multiple items in one effort. Therfore, we create co-products which consume a portion of the component (and labor) as a result. From everything on this document and any place else I’ve found, in Oracle EBS this would require the use of the Process Mfg module. Do you agree?

  14. Rahu Says:

    Hi,
    I would like to know the work flow of discrete manufacturing(exactly the industry which produces mobile accessories such as flashing device, compatible cables for different models, pcb etc). I need to design the production module of such industry. Please post your valuable suggestions…

  15. Srinivas K Says:

    Good One, Simple and Clear

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