Operation management_process strategies

PROCESS

DESIGNING

University of Central Punjab

SUBMITTED TO:Prof.Irfan Saad

• ZUL-NU-RAIN 0009• WAQAR SALEEM 0079• ZAFAR IQBAL 0087

SUBMITTED BY

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Types of Process Strategies

Continuum

Process strategies that follow a continuum

Within a given facility, several strategies may be used

These strategies are often classified as:Repetitive-Focused Product-FocusedProcess-Focused

Process-Focused

Process focus is when a production capability categorized around processes to assist low-volume, high-variety production. A most important advantage of process focus is that it permits for a large degree of flexibility for the reason that products can move periodically between processes.

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Repetitive Focused• Repetitive focus is more

prearranged, systematic and consequently less flexible than process focus. Repetitive focus is essentially a customary assemblage line that utilizes modules that are organized earlier than production set in motion

Harley davidson use Repetitive focus strategy• Long runs, standardized product, from modules.• Special equipment aids in use of assembly line• JIT techniques used• Movement measured in hours & days• Costs of bikes usually known based on experience• Scheduling based on bike models from a variety of

forecasts• Finished goods made to frequent forecasts

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Flow Diagram Showing the Production Process for Harley Davidson

Product-Focused

• product focus, is a high-volume, low –variety process where the amenities are controlled around the products. In order for a firm to efficiently use this option it must operate with high levels of consistency and huge quality control yardsticks.

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Mass Customization

• Mass customization is the most complex of the fourprocesses and present operations manager to make inspired and destructive use oforganizational resources to put up the unique requirements of their consumers.

• Under mass customization the three process models become so flexible that distinctions between them blur, making variety and volume issues less significant.

Process Analysis and Design

1.Value-Stream Mapping - Shows flows and time and value added beyond the immediate organization

2.Flow Diagrams - Shows the movement of materials

3.Time-Function Mapping - Shows flows and time frame

4.Process Charts - Uses symbols to show key activities

5.Service Blueprinting - focuses on customer/provider interaction

Value stream mapping

• Value stream mapping is a lean manufacturing or lean enterprise technique used to document, analyze and improve the flow of information or materials required to produce a product or service for a customer.

Value stream mapping is a paper and pencil tool that helps you to see and understand the flow of material and information as a product or service makes its way through the value stream. Value stream mapping is typically used in Lean.

Value stream mapping

• No mapping technique fits every situation and purpose. Use Value Stream Mapping for high-production, low-variety product mixes with few components and subassemblies and dedicated equipment. In other situations, Process Mapping, often combined with a Group Technology analysis may be a better choice.

• Harley davidson something had to be done--fast and cheap. Harley put together a Lean manufacturing strategy that emphasized employee involvement, Just-In-Time delivery (called MAN for Materials As Needed) and Statistical Process Control. The plan was well-thought-out, well-executed and successful.

• At the York facility, bikes were traditionally made in large batches; MAN stabilized schedules and conditioned suppliers to deliver more frequently. Harley had previously held four weeks of stock at a cost of $25 million a year. Now it carries no safety stock; if there is a problem and parts are short, production halts.

• “. Accelerate” is an OEM (Original Equipment Manufacturer) supplier development model that was created in fiscal year 2005 by the Wisconsin Manufacturing Extension Partnership (WMEP), Oshkosh Corporation, John Deere Company and Harley-Davidson. The four-step model combines the use of two lean manufacturing principles, Value Stream Mapping (VSM) to eliminate delays in the production environment and to determine a supplier’s order fulfillment capability.

Time-Function Mapping

• This the tool for process analysis and design in this added the time horizontal axis. such charts are sometimes called time function mapping.Customer

Sales

Production control

Plant A

Warehouse

Plant B

Transport

Order Product

Process Order

Print

Extrude

Receive product

Wait

Move

Wait Wait Wait

Move

Ord

er

Ord

er

WIP

WIP

WIP W

IP

Prod

uct

Prod

uct

Prod

uct

12 days 1 day 1 day 1 day 1 day13 days 4 days 10 days 9 days

52 days

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Time Function Map(Target)

1 day 1 day 1 day1 day 2 days

Customer

Sales

Production control

Plant

Warehouse

Transport

Order Product

Process Order

Print Extrude

Receive product

Wait

Wait

Move

Ord

er

Ord

er

Prod

uct

Prod

uct

WIP

6 days

Process Chart

• The Process Chart provides a visual representation of steps in a process. It is also referred to Flow Charts or Process Mapping or Flow Diagrams. Constructing a process chart is one of the initial activities of a process improvement. It consists of the following benefits.

• A clear picture about the process• Helps to identify non value added operations.• Helps to work in a team and develop

communication• Keeps everyone on the same page.

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SUBJECT: Request tool purchase

Dist (ft) Time (min) Symbol Description

lðo DÑ Write order

¡ðo D Ñ On desk

75 ¡ è o DÑ To buyer

¡ðn DÑ Examine

= Operation; ð = Transport; o = Inspect; D = Delay; Ñ = Storage

Value-added time = Operation time/Total time

Process Chart Example

Service Blueprint

• Service blueprint is a picture or map that accurately portrays the service system so that different people involved in providing it can understand and deal with it objectively regardless of their individual point of view .

• It provides a way to break the service into logical components and to depict the steps or tasks in the processes, the means by which they are executed and evidence of the service as consumer experiences it.

Gjensidige Insurance company

• Live|work helped Gjensidige -one of the largest insurance companies in Norway- developing the idea of combining banking and insurance for people aged 20 to 30.Gjensidige’s insurance and banking services were two completely separated business units till that moment, while the new service idea needed all the different parties working together in order to create a seamless customer experience.Together with Gjensidige, live|work mapped out both the insurance and banking internal ‘backstage’ processes and then redefined them by using a

service blueprint, that allowed everybody to see what had to be done behind the new process. After that the blueprint became also the starting point to create a brief for the marketing agency and the other figures involved in the final implementation of the service

Gjensidige Insurance company

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Areas of Technology

• Machine technology• Automatic identification systems (AIS)• Process control• Vision system• Robot• Automated storage and retrieval systems

(ASRS)• Flexible manufacturing systems (FMS)• Computer-integrated manufacturing (CIM)

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Machine Technology

• Increased precision• Increased productivity• Increased flexibility• Decreased pollution• Decreased size• Decreased power requirements

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Process Control

• Use the IT to control a physical process• Real-time provision of information for process

evaluation• Multi-mode information presentation• Increased process stability• Data available in many forms• Real-time provision of information for process

evaluation

Process Control

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Automatic Identification Systems (AIS)

• Transforming data• Data is in electronic form e.g bar codes

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Vision Systems

• Particular aid to inspection• Consistently accurate• Never bored• Modest cost• Superior to individuals performing the

same tasks

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Robots

• Perform monotonous, or dangerous tasks, or those requiring significant strength or endurance

• Enhanced consistency, accuracy, speed strength, power when substituted for human effort

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Automated Storage and Retrieval Systems (ASRS)

• Automated placement and withdrawal of parts and products

• Particularly useful in inventory and test areas of manufacturing firms

• Reduced errors and labor• Particularly useful in inventory and test areas

of manufacturing firms

Example of ASRS

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Automated Guided Vehicle (AGV)

• Electronically controlled movement of products and/or individuals

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Flexible Manufacturing Systems (FMS)

• Computer controls both the workstation and the material handling equipment

• Computer control enhance flexibility• Can economically produce low volume at

high quality• Reduced costs of changeover and low

utilization• Stringent communication requirement

between components within it

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Computer Integrated Manufacturing (CIM)

• Extension of flexible manufacturing systems– Backwards to engineering and inventory control– Forward into warehousing and shipping– Can also include financial and customer service

areas

• Reducing the distinction between low-volume/high-variety, and high-volume/low-variety production

• Heavy reliance on information technology

Computer-Integrated

Manufacturing (CIM)

Figure 7.12

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Process Reengineering

• The fundamental rethinking and radical redesign of business processes to bring about dramatic improvements in performance

• Relies on reevaluating the purpose of the process and questioning both the purpose and the underlying assumptions

• Requires reexamination of the basic process and its objectives

• Focuses on activities that cross boundaries

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Showing Sensitivity to the Environment

• Make products recyclable• Use recycled materials• Use less harmful ingredients• Use light components• Use less energy• Use less materials

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Factors Affecting Process Alternatives

Production flexibility

Product volume

Product variety

Technology

Cost

Human resources

Quality

Reliability

These factors reduce the number of alternatives!

These factors reduce the number of alternatives!

© 1984-1994 T/Maker Co.

1.The fundamental rethinking of business processes to bring about dramatic improvements in performance

2.Relies on reevaluating the purpose of the process and questioning both the purpose and the underlying assumptions

3.Requires reexamination of the basic process and its objectives

4.Focuses on activities that cross functional lines5.Any process is a candidate for redesign

Process Redesign

1.Encourage recycling2.Efficient use of resources3.Reduction of waste by-products4.Use less harmful ingredients5.Use less energy

Reduce the negative impact on the environment

Ethics and Environmentally Friendly Processes