process fundamantals
TRANSCRIPT
Rajiv Misra
PROCESS FUNDAMENTALS
Rajiv Misra
Supplier Value-added tasks
Customer
Requirements Requirements
Inputs
Feedback
Output
Feedback
Process: Linked activities with the purpose of producing a product or service for a customer and characterized by a set of specific inputs and value-added tasks that produce a set of specific outputs. A process has clearly defined start and end boundaries.
Resources
Decision Criteria
Process-owner
Periodicity Measures
Approach Deployment Learning Integration (Alignment, Linkage)
WHAT IS A PROCESS
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InputsOutputs
Feedback
Measures
Process Owner
Periodicity
WHAT IS A PROCESS
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AOriginal Inputs Original Outputs
Feedback
Measures
Process Owner
Periodicity
AInputsOutputs
Feedback
Measures
Process Owner
Periodicity
Custom
ers, Stake holders
Suppliers
WHAT IS A SYSTEMATIC PROCESS
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Level 2 Tactical Process
Level 3 OperationalProcess
Level 1 Strategic Process
In-Process Measures(still time to change the result)
End-of-ProcessMeasures (result)
Process Measures
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PROCESS FUNDAMENTALSBread Making
Flour, Yeast and Water are converted to Bread.Process: Mixing
Proofing (letting bread to rise)BakingPackaging
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PROCESS FUNDAMENTALSBread Making
There are two mixers,2 proofers and two Ovens so organized that the ingredients mixed on the first mixer are automatically fed to the first proofer and then sent to the first oven.All the bread loaves are packaged in the same packaging line (only one).The company makes many types of Breads
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PROCESS FUNDAMENTALSBread Making
Draw it diagrammatically
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PROCESS FUNDAMENTALSBread Making
Draw it diagrammatically, Using the following Symbols
Storage of Goods (WIP/FG)
Flow
Task or Activity
MeaningSymbols
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PROCESS FUNDAMENTALSBread Making
MIX
RM
PROOF BAKE
WIP
MIX PROOF BAKE
PACK
FG
Parallel Lines. Each line is in SeriesWhy WIP in front of PackingHow do we determine Capacity
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PROCESS FUNDAMENTALSBread Making
If Mixers, proofers and ovens were not set up as distinct lines Draw it diagrammatically
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PROCESS FUNDAMENTALSBread Making
MIX
RM
PROOF BAKE
WIP
MIX PROOF BAKE
PACK
FG
Individual Tasks operate in Parallel
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PROCESS FUNDAMENTALSCroissant Making
The process is in two partsDough: Mix, Proof, Roll and Cut Fillings: MixWith Dough and Filling ready.Fill and Fold, Bake and Pack
Draw it diagrammatically
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PROCESS FUNDAMENTALSCroissant Making
MIX PROOF Roll/Cut
MIX
FG
Dough Dough
Fills Fills Fill/Fold Bake Pack
Parallel lines – but is it same as earlierWhat is the Capacity?
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PROCESS FUNDAMENTALSBread Making
WIPBread Making
What is the CYCLE TIMEWhat is the Manufacturing Lead Time
Packing
1 hour per 100 loaves 3 / 4 hour per 100 loaves
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PROCESS FUNDAMENTALSBread Making
WIPBread Making
What is the CYCLE TIME = 60/100 (Units??)What is the Manufacturing Lead Time = 1 and 3 /4 hours
Packing
1 hour per 100 loaves 3 / 4 hour per 100 loaves
Rajiv Misra
PROCESS FUNDAMENTALSBread Making
WIP
Bread Making
What is the CYCLE TIMEWhat is the Manufacturing Lead Time
Packing
3 / 4 hour per 100 loavesBread Making
1 hour per 100 loaves
1 hour per 100 loaves
Rajiv Misra
PROCESS FUNDAMENTALSBread Making
WIP
Bread Making
What is the CYCLE TIMEWhat is the Manufacturing Lead Time
Packing
3 / 4 hour per 100 loavesBread Making
1 hour per 100 loaves
1 hour per 100 loaves
1 / 2 hour per 100 loaves
Rajiv Misra
PROCESS FUNDAMENTALS – CASE 1
WIP
Bread Making
What is the Manufacturing Lead TimeIt depends on schedule.
Packing
3 / 4 hour per 100 loavesBread Making
1 hour per 100 loaves
1 hour per 100 loaves
1 / 2 hour per 100 loaves
Case 1 – Each batch starts every 3 / 4 hours
Rajiv Misra
PROCESS FUNDAMENTALS – CASE 1
What is the Manufacturing Lead Time
WIP
Bread Making
Packing
3 / 4 hour per 100 loavesBread Making
1 hour per 100 loaves
1 hour per 100 loaves
1 / 2 hour per 100 loaves
Each batch starts every 3 / 4 hour to coincide with packing
Rajiv Misra
PROCESS FUNDAMENTALS – CASE 1
What is the Manufacturing Lead Time
MLT = 1 and 3 / 4 hours
Line # Batch # Start End Pack endBread Bread
Line 1 Batch 1 9.00 10.00 10.45Line 2 Batch 2 9.45 10.45 11.30Line 1 Batch 3 10.30 11.30 12.15Line 2 Batch 4 11.15 12.15
Rajiv Misra
PROCESS FUNDAMENTALS – CASE 2
WIP
Bread Making
What is the Manufacturing Lead Time
Packing
3 / 4 hour per 100 loavesBread Making
1 hour per 100 loaves
1 hour per 100 loaves
1 / 2 hour per 100 loaves
Case 2 – Each machine is loaded every 1 and ½ hr
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PROCESS FUNDAMENTALS – CASE 2
WIP
Bread Making
What is the Manufacturing Lead Time
Packing
3 / 4 hour per 100 loavesBread Making
1 hour per 100 loaves
1 hour per 100 loaves
1 / 2 hour per 100 loaves
1 and 1/2 hr so that bread stock does not pile up
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PROCESS FUNDAMENTALS – CASE 2
What is the Manufacturing Lead Time
MLT = Average of 1-3/4 and 2-1/2 hours = 2- 1/8 hours
Line # Batch # Start End Pack Pack MLT (HR)Bread Bread Start end
Line 1 Batch 1 9.00 10.00 10.00 10.45 1-3/4 Line 2 Batch 2 9.00 10.00 10.45 11.30 2-1/2Line 1 Batch 3 10.30 11.30 11.30 12.15 1-3/4Line 2 Batch 4 10.30 11.30 12.15 1.00 2-1/2
Rajiv Misra
SETTING UP A COOKIE COMPANY AT XL
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SETTING UP A COOKIE COMPANY AT XL
To meet your expenses you decide to start a Co.
Vision: Provide fresh cookies to starving students
late at night
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SETTING UP A COOKIE COMPANY AT XL
Your idea is to bake fresh cookies to order, using any combination of ingredients that the buyer wants
The cookies will be ready for pickup at your room within an hour
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COOKIE COMPANY AT XL
What type of industry are we taking of?
MTS/MTO/ATO/ETO??
Location of the Decoupling Point ??
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BILL OF MATERIALS
DoughCoconut, Raisins, Chocolate Chips etc (Additives)
Additives are added based on customer specifications.
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THE PRODUCTION PROCESS
Mix all the ingredients in a Food Processor.Spoon out the dough onto a trayPut the cookies into the ovenBake themTake out the tray from the oven Let the cookies cool offTake cookies off the trayPack them
Ingredients differ from
order to order
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THE PRODUCTION ROUTE CARD
YOU Mix all the ingredients in a Food Processor.Wash the mixing bowl from previous batchAdd all the ingredients Mix them in the Food ProcessorThe mixer holds ingredients for up to 3 dozen cookiesThis takes 6 minutes to do
Mixing dough for 1,2 or 3 dozen takes same time
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THE PRODUCTION ROUTE CARD
YOU Spoon out the dough onto a tray.
This takes 2 minutes
This finishes your work and your room-mate starts his work
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THE PRODUCTION ROUTE CARD
Room-Mate puts the cookies into the oven.He first sets the timer and thermostat, which takes one minuteThe cookies bake for next 9 minutesTotal baking time is 10 minutes, of which your room mate is busy for the first minuteThe oven holds only one tray, a second dozen takes an additional 10 minutes to bake
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THE PRODUCTION ROUTE CARD
Room-Mate performs the last steps also.He first removes the cookies
Takes no time, but must be done on timeThe cookies cool for 5 minutesHe then packs the cookies ( 2 minutes/doz)He collects the payment for order (1 min)
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THE PRODUCTION ROUTE CARD
This is the process
Some Simplifications (“Model”)
e.g. Preheating of the oven (Startup) etc not considered etc.
Draw its Process Flow Diagram
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PROCESS FLOW DIAGRAM
Mix and Spoon
Load Oven,Set
Times, Begin bake
Continue bake Cool
Receive payment
Pack
Hold
Mins 8 1 9 5 2 ( 6 + 2 )
Mins 1
You Room Mate
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ANALYSIS AND VOCABULARY - 1
How long will it take to fill a rush order?(Assume no other cookies are being processed)
26 minutes 6 minutes : Mixing2 minute : Spooning
10 minutes: Loading & Baking5 minutes : Cooling2 minutes : Packing1 minute : Taking Payment
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ANALYSIS AND VOCABULARY- 1
How long will it take to fill a rush order?(Assume no other cookies are being processes)
26 minutes
This is the Manufacturing Lead Time (diff names)
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ANALYSIS AND VOCABULARY- 2
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ANALYSIS AND VOCABULARY- 2
How many orders can you fill in a night (4 hours)?
Manufacturing Lead Time: 26 minutesNo of working minutes: 240 minutesNo of orders that can be filled: 240/26 ~ 9
Is it correct??
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ANALYSIS AND VOCABULARY- 2
MLT is not the the relevant number to calculate how many cookies can be made in a night
We are looking for the capacity of the process as a whole ? What controls the capacity? (Refer Process Flow)
Considering only orders for a dozen cookiesThe slowest stage is Baking.A tray of cookies shall pop out every 10 minutes
Rajiv Misra
ANALYSIS AND VOCABULARY- 2
Considering only orders for a dozen cookiesThe slowest stage is Baking.A tray of cookies shall pop out every 10 minutes
The slowest stage is called the BOTTLENECK10 minutes is the CYCLE TIME for the whole process CAPACITY of the process in the Inverse of Cycle Time which is 240/10 = 24 dozen cookies
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ANALYSIS AND VOCABULARY- 2
A finer point:Some start-up and Shut Down time is needed.First dozen cannot come start till 8 minutes after you open.The last dozen must come out before 8 minutes of close (so that rest operations till payment have time)Usual concern is with steady state. Because work can be left partially completed overnight
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ANALYSIS AND VOCABULARY- 3
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ANALYSIS AND VOCABULARY- 3
We considered orders for one dozen each. Let us consider different order sizes.How many cookies can we produce if everybody orders 2 dozen cookies at a time?
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ANALYSIS AND VOCABULARY- 3
What time will the Mixing Stage take?10 mins (6 + 2 + 2).This time is for the order not for a dozen.
What time will baking take?10 minutesThis time for a dozen. It is straight run time and there is no setup time
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ANALYSIS AND VOCABULARY- 3
Hence, capacity in this case is not affected by order size as the bottleneck’s capacity is in dozen cookies per hour and independent of order size
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ANALYSIS AND VOCABULARY- 4
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ANALYSIS AND VOCABULARY- 4
How much time can you and your room mate study during this four hours?Look at the work for every 10 minute baking cycle
You have 8 minutes of work for first tray of order and 2 minutes for 2nd or 3rd tray.Room mate has 4 minutes of work (what about payment? – for a 3 tray order, he spends 3,3 and 4 minutes for each baking cycle. This time is labor time. Rest is idle time
Rajiv Misra
ANALYSIS AND VOCABULARY- 4
Can idle time vary day to day?What does it depend on?
It depends on nature of order size (proportion of 1, 2 or 3 dozen orders)It depends on whether there are enough orders
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ANALYSIS AND VOCABULARY- 4
Impact of labor costs, if you hired people?
If we hired people we would have to pay even if they were idle.Is then labor cost Fixed or Variable?Hence, the need for Labor Flexibility – when you worked idle time is spent studying (hopefully)
For hired workmen, other work they can do.
Rajiv Misra
ANALYSIS AND VOCABULARY- 5
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ANALYSIS AND VOCABULARY- 5
Can you afford to fire your roommate and do all the work yourself ?Consider 2 tray (dozen) orders only.How would you go about it. Think graphically!
Rajiv Misra
ANALYSIS AND VOCABULARY- 5
Can you afford to fire your roommate and do all the work yourself ?Consider 2 tray (dozen) orders only.How would you go about it. Think graphically!
We shall draw what is known as a GANTT Chart
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ANALYSIS AND VOCABULARY- 5
Mix, Spoon
Bake
Cool
Pack
Pay
YOU
ROOMie
OVEN
0 5 10 15 20 25 30 35 Minutes
GANTT Chart
Activities
Resources
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ANALYSIS AND VOCABULARY- 5
Mix, Spoon
Bake
Cool
Pack
Pay
YOU
ROOMMate
OVEN
0 5 10 15 20 25 30 35 Minutes
Gantt Chart for two tray orders
8
8
10
1
2
2
10
5
2
2
5
2
2
1
1
Tray 1
Tray 2
SHIP
Note : This shift so that Both you and roommate do not work together
Rajiv Misra
ANALYSIS AND VOCABULARY- 5
Can you afford to fire your roommate and do all the work yourself ?Consider 2 tray (dozen) orders only.How would you go about it. Think graphically!
GANTT Chart shows that both you and room mate do not work together, so you can fire your roommate.
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ANALYSIS AND VOCABULARY- 6
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ANALYSIS AND VOCABULARY- 6
Can you afford to fire your roommate and do all the work yourself ?Consider 1 tray (dozen) orders only.Draw a GANTT Chart
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ANALYSIS AND VOCABULARY- 6
Let’s consider 2 tray order and only YOU working
Cycle Time = 20 minutes.Labor-mins = 20 minutes (for one person)
Labor time needed = 17 minutes. 8 + 2 (Mix) + 1 + 1 (Bake) + 2 +2 (pack) + 1 (pay)
Therefore, only YOU can manage
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ANALYSIS AND VOCABULARY- 6
Let’s consider 1 tray order and only YOU workingCycle Time = 10 minutes.
Labor-mins = 10 minutes (for one person)Labor time needed = 12 minutes.
8 (Mix) + 1 (Bake) + 2 (pack) + 1 (pay)Therefore, only YOU alone cannot manage.
You are now the Bottleneck
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ANALYSIS AND VOCABULARY- 7
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ANALYSIS AND VOCABULARY- 7
What happens if you buy a new oven?
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PROCESS FLOW DIAGRAM
Mix and Spoon
Continue bake Cool Receive
paymentPack
Mins 8 10 5 2 1( 6 + 2 )
Cap/hr 7.5 12 30/hr 60/hr(in doz)
Continue bake
The bottleneck is the Mixing Station at 7.5 doz/hr - for one tray!
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ANALYSIS AND VOCABULARY- 7
What happens if we get all 3 tray orders ?
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PROCESS FLOW DIAGRAM
Mix and Spoon
Continue bake Cool Receive
paymentPack
Mins 8 10 5 2 1( 6 + 2 )
Cap/hr 7.5 12 30/hr 60/hr
3 doz in 12 (6+2+2+2) mins can be mixed. Therefore capacity is 15 dozen/hr
Continue bake
The bottleneck is the Baking at 12 doz/hr - for three trays!
15
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ANALYSIS AND VOCABULARY- 7
Therefore, the identity of the bottleneck and thus the capacity of the system depends on the exact composition of the orders.
Hence, equivalent measure are sought to be developed like value in Rs, tonnages, Standard man Hours etc.
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ANALYSIS AND VOCABULARY- 7
Parting thought:
Why did we not consider Cooling in the Capacity calculations?
What would happen to Capacity if Cooling time becomes 15 minutes instead of 5 minutes currently?