CHAPTER 4 Process Planning

8/2/2019 CHAPTER 4 Process Planning

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A critical strategic POM decision after thecompany has finally identified whatspecific product(s) or service(s) it wouldprovide its customers is the determination

of how it will be able to produce or deliverit. This is the concept of PROCESSPLANNING or PROCESS STRATEGY wherethe company specifically identifies the

combination of resources, activities andmethods that will enable the firm toproduce the product (in the case ofmanufacturing) or render the service


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Specifically, Process Planning deals withall decisions about a process; gives adetailed description of the operations

needed to make a product or render aservice. It is performed during thefollowing changes in operations


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Consistent with the concept ofConcurrent Engineering, firms need tolink process decisions with their productstrategies. In Particular, a new products

will either need revisions or remodeling ofexisting machinery or conduct of atotally different type of the production

process.


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The same logic holds true for changes inthe features of existing products,especially when there are significantalteration in product designs andmaterials utilization.


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Currently, the high production costsassociated with the increasing cost offoreign and local materials haveprompted Philippine-based

manufacturing companies to look forways on improving process designs tomake them cost-efficient and still meet

set production quotas;


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In the case of the toiletry industry, a stiffcompetition exists between P & G,Unilever, Johnson and Johnson and

Kimberly Clark. A change in the featureof their consumer lines which normally isrelated to a similar change in theprocesses of the individual competing.


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Ultimately, the determining variable as tohow significant process design willchange will be what the marketdictates. The market provides

information on the quantity, quality andspecification required by the customers,which need to be attended to by the

manufacturing and service sectors; and


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Lastly, a firm experiencing tremendous

production losses and inefficiencies andincreasing production cost need to becarefully evaluate the efficiency and

effectiveness of its existing processes. Byprocess, it means the combination of thefollowing variables

Technology

Machinery and equipment

Production process itself

Work methods

Materials, among others


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Process design strategy is normally aresponsibility of the engineering group,specifically the process engineers. Ofcourse, strategic decision such as the

adoption of a particular technology willmerit the evaluation of topmanagement, but the actual evaluationof the appropriate method to use and

the other details of the productionprocess are under the OperationsDepartment, particularly the engineeringgroup.


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As mentioned, process planning isdirectly linked with the firms productstrategy. The critical variables to look into

would be the volume of productiondesign. These variables will determinethe appropriate process type to use. Thispart involves more specifically the

following: Choice of technology

Choice of process type

Choice of machinery and equipment


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For a machine to run as designed, acorollary decision under processplanning would be the appropriate

choice of materials and inputs usedwhich should be technically compatiblewith the equipment being utilized. There

should also be trained and competentpeople to run the machines, and theprocedure manuals to operate suchfacilities need to be documented.


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Once process test runs had beencompleted and the feasibility to runningthe process types had been adequately

studied, an ample amount of time isspent to install the facilities andequipment. Critical decisions prior to

installation include the following:


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1. Should the machinery and equipmentbe permanently fixed or movable?

2. Should the machinery and theequipment be purchased orfabricated?

3. Should the machinery and equipment

be integrated or be installedseparately?

4. Should the machinery and equipmentbe general- purpose or specialized?

The firms plan for expansion is alreadybeing included as early as the initialprocess design evaluation.


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The last scope of process design wouldbe the design and establishment ofcontrol measures to monitoreffectiveness of process design.

While these guidelines are normallyassociated with a manufacturing setting,the same sets of activities hold true for

selection of process for service firms,except that service entities need todesign for both its front-office and back-office operations.

CHAPTER 4 Process Planning

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