Ch06 Process Design_Russell

7/25/2019 Ch06 Process Design_Russell

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Copyright 2009 John Wiley & Sons, Inc.Copyright 2009 John Wiley & Sons, Inc.Beni AsllaniBeni Asllani

University of Tennessee at ChattanoogaUniversity of Tennessee at Chattanooga

Process Design and TechnologyProcess Design and Technology

DecisionsDecisionsISV Operations Management - 6thEdition

ISV Operations Management - 6thEdition

Chapter 6Chapter 6

Roberta Russell & Bernard W. Taylor, IIIRoberta Russell & Bernard W. Taylor, III


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Copyright 2009 John Wiley & Sons, Inc.Copyright 2009 John Wiley & Sons, Inc. 6622

!ect"re #"tline!ect"re #"tline

Process Planning

Process Analysis

Process Innovation

Technology Decisions


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Process PlanningProcess Planning

Process a group of related tasks with specific inputs and

outputs Process design

what tasks need to be done and how they arecoordinated among functions, people, andorganizations

Process strategy an organizations overall approach for physicallyproducing goods and services


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Process PlanningProcess Planning

Determines how a product will beDetermines how a product will be

produced or a service providedproduced or a service providedIt decidesIt decides

Which components will be made in-houseWhich components will be made in-house

Which will be purchased from suppliersWhich will be purchased from suppliers

Selects processesSelects processes

Develops and documents specifications forDevelops and documents specifications for

manufacture & delivery.manufacture & delivery.

Copyright 2009 John Wiley & Sons, Inc.Copyright 2009 John Wiley & Sons, Inc. 66%%


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Process Selection

Projects one-of-a-kind production of a product to customer order

Batch production processes many different jobs at the same time in groups orbatches

Mass production produces large volumes of a standard product for a massmarket

Continuous production used for very-high volume commodity products


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Prod"ctProcess 'atri(Prod"ctProcess 'atri(

Source:)dapted *ro+ o-ert ayes and Ste/en Wheelright,Restoring the Competitive Edge Competing

through Manufacturing1e 3or4, John Wiley & Sons, 59%7, p. 209.


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P#JCTP#JCT :)TC:)TC

Types o* Processes

Type of

product

Unique

Made-to-order

(customized)

Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs,Operations Management for Competitive

Advantage(New York:McGraw-Hill, 2001), p. 210

Type ofcustomer

One-at-a-time

Fewindividual

customers

')SS')SS

Made-to-stock

(standardized )

Mass

market

CONTCONT..

Commodity

Mass

market

Productdemand Infrequent Fluctuates Stable Very stable



P#JCTP#JCT :)TC:)TC

Types o* Processes 1cont.7

Demand

volume

Very lowLow to

medium

Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs,Operations Management for Competitive

Advantage(New York:McGraw-Hill, 2001), p. 210

No. ofdifferentproducts

Infinitevariety

Many, varied

')SS')SS

High

Few

CONTCONT..

Very high

Very few

Productionsystem

Long-termproject

Discrete, jobshops

Repetitive,assemblylines

Continuous,processindustries



P#JCTP#JCT :)TC:)TC


Equipment VariedGeneral-

purpose

Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs,Operations Management for CompetitiveAdvantage(New York:McGraw-Hill, 2001), p. 210

Primarytype of work

Specializedcontracts

Fabrication

')SS')SS

Special-

purpose

Assembly

CONTCONT..

Highly

automated

Mixing,treating,refining

Workerskills

Experts,crafts-persons

Wide rangeof skills

Limitedrange ofskills

Equipmentmonitors



PROJECTPROJECT :)TC:)TC


Advantages Custom work,latest technology

Flexibility,quality

Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs,Operations Management for Competitive Advantage(NewYork:McGraw-Hill, 2001), p. 210

Dis-advantages

Non-repetitive,small customerbase, expensive

Costly, slow,

difficult to

manage

')SS')SS

Efficiency,

speed,

low cost

Capital

investment;

lack of

responsiveness

CONTCONT..

Highly efficient,

large capacity,

ease of control

Difficult to change,

far-reaching errors,

limited variety

ExamplesConstruction,shipbuilding,spacecraft

Machine shops,

print shops,

bakeries,

education

Automobiles,

televisions,

computers,

fast food

Paint, chemicals,foodstuffs



Process SelectionProcess Selection

Below or equal to 4,000, choose ABelow or equal to 4,000, choose A

Above or equal to 4,000, choose BAbove or equal to 4,000, choose B

$2,000 + $5$2,000 + $5vv = $10,000 + $3= $10,000 + $3vv$2$2vv = $8,000= $8,000

vv = 4,000 rafts= 4,000 rafts

Process AProcess A Process BProcess B



Process PlansProcess Plans

Set of documents that detailSet of documents that detail

manufacturing and service deliverymanufacturing and service deliveryspecificationsspecifications

assembly chartsassembly charts

operations sheetsoperations sheetsquality-control check-sheetsquality-control check-sheets


13/43Copyright 2009 John Wiley & Sons, Inc.Copyright 2009 John Wiley & Sons, Inc. 665$5$

Sesame seed top bunSesame seed top bun

Beef pattyBeef pattySaltSalt

CheeseCheese

ettu!eettu!eSau!eSau!e

"n#ons"n#ons#ddle bun#ddle bun

Beef pattyBeef pattySaltSalt

CheeseCheese

ettu!eettu!e

Sau!eSau!e"n#ons"n#ons%#!&les%#!&les

Bottom bunBottom bun

'rapper'rapper

S(S(

S(S(

)#rst*layer assembly)#rst*layer assembly

Se!ond*layer assemblySe!ond*layer assembly

Completed B# a!Completed B# a!

)sse+-ly Chart*or a :ig 'ac

Process )nalysis

;syste+atic

e(a+ination

o* all

aspects o*

process to

i+pro/e

operation


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%art name Cre#!e -ool

%art .o/ 5204

sae and*a!

(ssembly .o/ 520

Oper. No. Description Dept. Machine/Tools Tie

10 %our #n plast#! b#ts 041 ne!t#on mold#n 2 m#n20 nsert mold 041 607 2 m#n

30 Che!& sett#ns 041 113, 7, 750 20 m#n start ma!h#ne

40 Colle!t parts lay flat 051 %last#!s f#n#sh#n 10 m#n

50 9emoe !lean mold 042 %arts :asher 15 m#n

70 Brea& off rouh edes 051 %last#!s f#n#sh#n 10 m#n

An Operations Sheet for a Plastic Part


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Process analysisProcess analysis

Systematic examination of all aspects ofSystematic examination of all aspects of

a process to improve its operation toa process to improve its operation tomake itmake it fasterfaster

more efficientmore efficient

less costly orless costly or

more responsive to customermore responsive to customer



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:asic tools o* process analysis:asic tools o* process analysis

Process flowchartsProcess flowcharts

DiagramsDiagrams

MapsMaps




Process =locharts

look at manufacture of product or delivery

of service from broad perspectiveIncorporate

nonproductive activities (inspection,transportation, delay, storage)

productive activities (operations)



Process =lochartProcess =lochart

Sy+-olsSy+-ols

"perat#ons"perat#ons

nspe!t#onnspe!t#on

-ransportat#on-ransportat#on

;elay;elay

StoraeStorae


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Step

"perat#on

-ransport

4nspe!t

;elay

Stora+e

;#stan!e


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%la!e order

;r#n&

at salad orsoup

at d#nner

9e!e#es !he!&

A#es paymentto :a#ter

Colle!t !hane,leae t#p

)#ll #n t#pamount

A#e orderto :a#ter

%repare d#nnerorder

%repare soup orsalad order

A#e orderto :a#ter

s order!omplete

A#e soup or salad order to !hef

A#e d#nner order to !hef

Aet dr#n&s for !ustomer

;el#er salad or soup order to !ustomer

;el#er d#nner to !ustomer

;el#er !he!& to !ustomer

9e!e#e payment for meal

Cash orCred#t

Br#n !hane to !ustomer

9un !red#t !ard throuh

9eturn !red#t sl#p to !ustomer

Colle!t t#p

DD

..

Cred#tCred#t

CashCash

CustomerCustomer 'a#ter'a#ter Salad Chef Salad Chef ;#nner Chef ;#nner Chef

) Process

'ap o*

esta"rant

Ser/ice


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Si+ple >al"e Chain =lochartSi+ple >al"e Chain =lochart


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eed *or process inno/ationeed *or process inno/ation

Processes are planned in response toProcesses are planned in response to

new facilities, new products, newnew facilities, new products, new

technologies, new markets, or newtechnologies, new markets, or new

customer expectationscustomer expectations

Processes should be analyzed forProcesses should be analyzed for

improvement on a continuous basisimprovement on a continuous basis

Copyright 2009 John Wiley & Sons, Inc.Copyright 2009 John Wiley & Sons, Inc. 662$2$


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eed *or process inno/ationeed *or process inno/ation

When continual improvement effortsWhen continual improvement efforts

have been exhausted and performancehave been exhausted and performance

expectations still cannot be reach with anexpectations still cannot be reach with an

existing process, it is time to completelyexisting process, it is time to completely

redesign or innovate the process.redesign or innovate the process.

Copyright 2009 John Wiley & Sons, Inc.Copyright 2009 John Wiley & Sons, Inc. 662%2%


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Process Inno/ation

Brea&throuhBrea&throuhmproementmproement

Cont#nuous #mproementCont#nuous #mproementref#nes the brea&throuhref#nes the brea&throuh

Cont#nuous #mproement a!t##t#esCont#nuous #mproement a!t##t#es

pea&E t#me to reen#neer pro!esspea&E t#me to reen#neer pro!ess

Total redesign o*

a process *or

-rea4thro"gh

i+pro/e+ents


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=ro+ ="nction to Process

$anufa!tur#n+

(!!ount#n+

Sales

%ur!has#n+

%rodu!t ;eelopment

"rder )ulf#llment

Supply Cha#n anaement

Customer Ser#!e

)un!t#on)un!t#on %ro!ess%ro!ess


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StrategicDirectives

Goals for ProcessPerformance

Pilot Studyof New Design

DetailedProcess Map

High - levelProcess map

GoalsMet?

InnovativeIdeas

InnovativeIdeas Design

Principles

DesignPrinciples

ModelValidation

ModelValidation

CustomerRequirementsCustomerRequirements

KeyPerformanceMeasures

KeyPerformanceMeasures

Full ScaleImplementation

Baseline DataBaseline Data

BenchmarkData

BenchmarkData

No Yes

Process Innovation


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igh!e/el Process 'apigh!e/el Process 'ap


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Principles *or edesigning

Processes Remove waste, simplify, and consolidatesimilar activities

Link processes to create value

Let the swiftest and most capable enterpriseexecute the process

Flex process for any time, any place, any way Capture information digitally at the source andpropagate it through process


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Principles *or edesigning

Processes 1cont.7 Provide visibility through fresher and richerinformation about process status

Fit process with sensors and feedback loopsthat can prompt action

Add analytic capabilities to process Connect, collect, and create knowledge around

process through all who touch it Personalize process with preferences andhabits of participants


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Techni?"es *or @enerating

Inno/ati/e Ideas

Vary the entry point to a problem

in trying to untangle fishing lines, its best to startfrom the fish, not the poles

Draw analogies a previous solution to an old problem might work

Change your perspective think like a customer bring in persons who have no knowledge ofprocess


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Techni?"es *or @enerating

Inno/ati/e Ideas 1cont.7 Try inverse brainstorming

what wouldincreasecost

what woulddispleasethe customer Chain forward as far as possible

if I solve this problem, what is the next problem

Use attribute brainstorming how would this process operate if. . .

our workers were mobile and flexiblethere were no monetary constraintswe had perfect knowledge


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Technology Decisions

Financial justification of technology Purchase cost

Operating Costs

Annual Savings

Revenue Enhancement

Replacement Analysis Risk and Uncertainty

Piecemeal Analysis


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Components of e-Manufacturing


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) Technology Pri+er

Computer-aideddesign (CAD)

Group technology(GT)

Computer-aidedengineering (CAE)

Collaborative

product commerce(CPC)

Computer-aideddesign (CAD)

Group technology(GT)

Computer-aidedengineering (CAE)

Collaborative

product commerce(CPC)

Creates and communicates designselectronically

Classifies designs into families for easyretrieval and modification

Tests functionality of CAD designselectronically

Facilitates electronic communication and

exchange of information among designersand suppliers

Product Technology


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Product datamanagement

(PDM) Product life cyclemanagement(PLM)

Productconfiguration

Product datamanagement

(PDM) Product life cyclemanagement(PLM)

Productconfiguration

Keeps track of design specs and revisionsfor the life of the product

Integrates decisions of those involved inproduct development, manufacturing, sales,customer service, recycling, and disposal

Defines products configured by customers

who have selected among various options,usually from a Web site

Product Technology

) Technology Pri+er 1cont.7


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Standard forexchange of

product model data(STEP)

Computer-aideddesign andmanufacture(CAD/CAM)

Computer aidedprocess (CAPP)

E-procurement

Standard forexchange of

product model data(STEP)

Computer-aideddesign andmanufacture(CAD/CAM)

Computer aidedprocess (CAPP)

E-procurement

Set standards for communication amongdifferent CAD vendors; translates CAD data

into requirements for automated inspectionand manufacture

Electronic link between automated design(CAD) and automated manufacture (CAM)

Generates process plans based ondatabase of similar requirements

Electronic purchasing of items from e-marketplaces, auctions, or companywebsites

Process Technology



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Computernumerically control

(CNC)

Flexiblemanufacturingsystem (FMS)

Robots

Conveyors

Computernumerically control

(CNC)

Flexiblemanufacturingsystem (FMS)

Robots

Conveyors

Machines controlled by software code to perform avariety of operations with the help of automated

tool changers; also collects processing informationand quality data

A collection of CNC machines connected by anautomated material handling system to produce awide variety of parts

Manipulators that can be programmed to perform

repetitive tasks; more consistent than workers butless flexible

Fixed-path material handling; moves items along abelt or overhead chain; reads packages anddiverts them to different directions; can be very fast

Manufacturing Technology



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Automatic guidedvehicle (AGV)

Automated storageand retrieval system(ASRS)

Process Control

Computer-integratedmanufacturing (CIM)

Automatic guidedvehicle (AGV)

Automated storageand retrieval system(ASRS)

Process Control

Computer-integratedmanufacturing (CIM)

A driverless truck that moves material along aspecified path; directed by wire or tape embeddedin floor or by radio frequencies; very flexible

An automated warehousesome 26 stores highin which items are placed in a carousel-typestorage system and retrieved by fast-movingstacker cranes; controlled by computer

Continuous monitoring of automated equipment;

makes real-time decisions on ongoing operation,maintenance, and quality

Automated manufacturing systems integratedthrough computer technology; also called e-manufacturing

Manufacturing Technology



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Business to Business (B2B)

Business to Cunsumer (B2C)

Internet

Intranet

Extranet

Business to Business (B2B)

Business to Cunsumer (B2C)

Internet

Intranet

Extranet

Electronic transactions between businesses usually

over the Internet

Electronic transactions between businesses and

their customers usually over the Internet

A global information system of computer networks

that facilitates communication and data transfer

Communication networks internal to an

organization; can be password (i.e., firewall)

protected sites on the Internet

Intranets connected to the Internet for shared

access with select suppliers, customers, and

trading partners

Information Technology



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Bar Codes

Radio FrequencyIdentification tags(RFID)

Electronic datainterchange (EDI)

Extensive markuplanguage (XML)

Enterprise resourceplanning (ERP)

Bar Codes

Radio Frequency

Identification tags(RFID)

Electronic datainterchange (EDI)

Extensive markuplanguage (XML)

Enterprise resourceplanning (ERP)

A series of vertical lines printed on most packages thatidentifies item and other information when read by ascanner

An integrated circuit embedded in a tag that can send andreceive information; a twenty-first century bar code withread/write capabilities

A computer-to-computer exchange of businessdocuments over a proprietary network; very expensiveand inflexible

A programming language that enables computer to -computer communication over the Internet by taggingdata before its is sent

Software for managing basic requirements of anenterprise, including sales & marketing, finance andaccounting, production & materials management, andhuman resources




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Supply chainmanagement (SCM)

Customer relationshipmanagement (CRM)

Decision supportsystems (DSS)

Expert systems (ES)

Artificial intelligence(AI)

Supply chainmanagement (SCM)

Customer relationshipmanagement (CRM)

Decision supportsystems (DSS)

Expert systems (ES)

Artificial intelligence(AI)

Software for managing flow of goods and informationamong a network of suppliers, manufacturers anddistributors

Software for managing interactions with customers andcompiling and analyzing customer data

An information system that helps managers makedecisions; includes a quantitative modeling componentand an interactive component for what-if analysis

A computer system that uses an expert knowledge baseto diagnose or solve a problem

A field of study that attempts to replicate elements ofhuman thought in computer processes; includes expertsystems, genetic algorithms, neural networks, and fuzzylogic




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#e addressed to the +er$ission epart$ent,#e addressed to the +er$ission epart$ent,

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Ch06 Process Design_Russell

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