operation management chapter 5

Alex Hill and Terry Hill

Lecture outline

• INTRODUCTION

• Factors affecting MANUFACTURING PROCESS design

• DESIGNING the manufacturing process

• HYBRID processes

• Critical REFLECTIONS

• SUMMARY

© Alex Hill and Terry Hill

Factors affecting manufacturing process design

•STEPS required to

- Turn INPUTS- Into OUTPUTS

TECHNICALREQUIREMENTS

•VOLUMES•MARKET- ORDER-WINNERS- QUALIFIERS

BUSINESSREQUIREMENTS

Manufacturing processes need to meet bothTECHNICAL and BUSINESS requirements

Categories of product

Types of manufacturing process

Developing a strategyUnderstanding customer requirements

Process type

Product Process

Project

Jobbing

Batch

Line

Continuous processing

• Made ON-SITE • Resources BOUGHT TO SITE

• SPECIAL, non-repeat

• ONE PERSON or SMALL GROUP

• STANDARD, repeat low to high volume

• Has to be RESET for each batch of products made

• MASS, repeat high volume

• DOES NOT have to be reset for different products

• MASS, repeat very high volume

• Process runs CONTINUOUSLY and never stops

Process choices

Designing the manufacturing processProcess choices

Use the words FLEXIBLE and AGILE with care as they have many DIFFERENT MEANINGS and, therefore, can be misleading

CASE 5.1

OLD AND NEWCAR PLANTS1.Why does Ford use a

LINE manufacturing process?

2.Why is this process INFLEXIBLE?

CASE 5.1

Question Answer

Line process

Inflexible

• MASS products• NARROW product range• VERY HIGH VOLUME• NOT RESET for different products

OLD AND NEW CAR PLANTS

• Narrow PRODUCT range• Narrow VOLUME range

BATCH: SIX PROCESS TYPES LAID OUT

Hybrid processes

SIX PROCESS TYPES FUCTIONALY LAID OUT

• Less WAITING time• Lower INVENTORY• Easier to SCHEDULE

ADVANTAGES

DISADVANTAGES

• Less FLEXIBLE• Lower equipment

UTILISATION

CELLS are a commonly usedHYBRID PROCESS

Car RestaurantBird

Making products

Product category and process type

A Bug’s Life

(1998)

Kia Sportage factory

production line

Dinner Rush

(2000)

Film clip Pit Stop

FilmTitleDirector (year)

A Bug’s LifeJohn Lasseter and Andrew Stanton (1998)

ClipStartFinish

00:47:0000:51:22

What clip showsThe bugs decide that they want to build a bird to protect their community

Key learning objective

The characteristics of a project processHow an operation transforms inputs into outputs

Making productsProduct category and process type

Film clip Factory

FilmTitleDirector (year)

Kia Sportage factory production line

ClipStartFinish

01:33:1301:34:31

What clip shows Cars being manufactured on a production line

Key learning objective

The characteristics of a high-volume batch processHow an operation transforms inputs into outputs

Making productsProduct category and process type

Film clip Restaurant

FilmTitleDirector (year)

Dinner RushBob Giraldi (2000)

ClipStartFinish

00:58:5801:02:44

What clip showsThe chef producing a special one-off dish for a restaurant critic who is having dinner in the restaurant

Key learning objective

The characteristics of a low-volume batch process How an operation transforms inputs into outputs (and the difference between services and manufacturing)

Making productsProduct category and process type

Product category and process type

Question Bird Car Restaurant

PRODUCT category

PROCESS type

• Made on-site• Special

• Mass• Standard

• Project• Resources

moved to site

• Line• High volume

• Special• One-off

• Jobbing• Small group

Product category and process type

Critical reflections

• MANUFACTURING PROCESSES must be:- ALIGNED to its market ORDER-WINNERS and

QUALIFIERS- REFLECT its internal BUSINESS requirements

• Although DEMAND CHANGES over time, most businesses will NOT RE-INVEST in a different process

• Choosing the RIGHT PROCESS for the life of a product will have a significant impact on its SALES REVENUE and PROFIT

Summary• Manufacturing processes must

SUPPORT- Technical and business requirements

• TECHNICAL requirements- The product specification

• BUSINESS requirements- Volumes and market order-winners and

qualifiers

• Each process type has a different set of TRADE-OFFS

© Alex Hill and Terry Hill

CASE FOR TUTORIAL

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