11.8: Production Process Technologies

Computer-Aided Design (CAD) and Computer-Aided Manufacturing (CAM) are technologies that work together and are widely used across various industries to improve design, manufacturing, and production processes. These technologies represent the evolution of manufacturing from manual processes to fully automated and integrated systems, resulting in higher productivity and better-quality products.

Computer-Aided Design

Computer-Aided Design (CAD) refers to the use of computer software to create, modify, analyze, or optimize a design. CAD is widely used in engineering, architecture, and product design to develop precise technical drawings and 3D models. It allows users to detail 2D and 3D models of products, parts, or structures and test and simulate these designs under various conditions before manufacturing. Examples of CAD software include AutoCAD, SolidWorks, and CATIA, which are used when engineers design a car part (e.g., a wheel rim) using 3D modelling software.

In an automotive company, CAD is when an engineer designs a part for a car (e.g., a wheel rim) using 3D modelling software.

Computer-Aided Manufacturing

Computer-Aided Manufacturing (CAM) refers to the use of computer software and hardware to control and automate manufacturing processes. CAM takes CAD designs and converts them into instructions for machines, such as Computer Numerical Control (CNC) equipment. Examples of CAM software include Mastercam, Fusion 360, and Siemens NX.

Because CAD and CAM programs can “talk” with each other, companies can build components that satisfy the exact requirements set by the computer-generated model. CAD/CAM systems permit companies to design and manufacture goods faster, more efficiently, and at a lower cost, and they’re also effective in helping firms monitor and improve quality. CAD/CAM technology is used in many industries, including the auto industry, electronics, and clothing. If you have ever seen how a 3-D printer works, you have a pretty good idea of how CAM works, too.

In an automotive company, CAM sends the design to a CNC machine, which uses the instructions to precisely cut the wheel rim from a metal block.

Computer-Integrated Manufacturing

Computer-Integrated Manufacturing (CIM) represents a comprehensive approach to manufacturing where CAD, CAM, and other business and manufacturing processes are integrated using computer systems. It enables seamless communication between design, production, and management. Examples of CIM systems include ERPs such as SAP and Oracle NetSuite, as well as robotics and automated assembly lines.

CIM systems expand the capabilities of CAD/CAM. In addition to design and production applications, they handle such functions as order entry, inventory control, warehousing, and shipping. In the manufacturing plant, the CIM system controls the functions of industrial robots—computer-controlled machines used to perform repetitive tasks that are also hard or dangerous for human workers to perform.

In an automotive company, CIM integrates the entire manufacturing process with inventory, quality control, and supply chain systems to ensure the right materials are available, defects are minimized, and production schedules are met.

Enterprise Resource Planning (ERP)

Material Requirements Planning (MRP) and Enterprise Resource Planning (ERP) are interconnected systems used in modern business operations, particularly in manufacturing and supply chain management. While they serve different purposes, they are closely related and often integrated for greater efficiency. MRP is a system focused on managing the materials and components required for production. It ensures that the right materials are available at the right time to meet production schedules. Key functions include inventory control, production planning, and scheduling materials procurement. ERP is a broader, integrated system that manages and automates a company’s core business processes across multiple departments, including finance, HR, manufacturing, supply chain, sales, and customer relationship management (CRM). It often incorporates MRP as a module.

To keep up with ever-changing customer demand and rising costs, manufacturers are always looking for ways to improve operations, boost efficiency and stay competitive. However, traditional methods for maintaining that competitive edge may no longer be enough in today’s world of complex global supply chains and economic uncertainty. According to Deloitte’s “2022 Manufacturing Supply Chain Study,” 76% of the over 200 manufacturing executives surveyed listed investing in digital supply chain tools as a top strategy to overcome challenges that can include shipping delays and material shortages.^[1]

The use of ERP in manufacturing companies provides several benefits: integration of centralization, data-driven decision-making, and connectivity and communication internally (all departments, locations) and externally (customers, suppliers). ERP systems are available for manufacturing and service businesses.

An Enterprise Resource Planning (ERP) system is a comprehensive business platform that helps businesses manage their daily operations. Manufacturing ERP systems are specifically designed for the manufacturing industry and include specialized features to address the industry’s unique challenges, such as production planning, inventory management, quality control and order tracking. These systems centralize and streamline manufacturing operations by collecting, analyzing and reporting on business-wide data. Stakeholders can use this data — often through the use of automation and advanced analytics tools — to improve efficiency, increase productivity and reduce costs. Manufacturers can also leverage ERP technology to increase visibility into the entire manufacturing process to impart resilience and potentially improve profitability on the whole.^[2]

Key features of manufacturing ERP systems include:^[3]

• Inventory management
• Sales order management
• Quality management
• CAD/CAM management
• Bill of Materials (BOM) management
• Planning and scheduling
• Mobile capabilities

Benefits of manufacturing ERP systems include:^[4]

• Optimized stock levels
• Reduced carrying charges
• Reduced stock shortage or stock surplus situations
• Improved delivery times
• Reduced order errors