topic 3 & 4 - process & capacity

8/8/2019 Topic 3 & 4 - Process & Capacity

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OperationsManagement

Prof. Upendra Kachru

Processes


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Operations Management

Process

A process is any part of an

organization that takes inputs and

transforms them into outputs with

value addition. The objective is toprovide maximum overall value to the

customer

Prof. Upendra KachruProf. Upendra Kachru


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Billet

Yard

Cutting

Machine

Waiting

FurnaceHeatingForging

Die

Condition

Inspection

OK

To

Auto

OK

Not OKChange DieOK

Flow of Materials

Operations

Decisions

Storage

A Process Flow Diagram is a tool that categorizes each

activity and provides operation details to understand the

process.

Process Flow Diagram



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Processing a Connecting Rod



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A Process Flow Chart is a tool that categorizes each activityand provides operation details to describe the process.

Process Flow Chart



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Types of ProcessMULTI STAGE

MULTI STAGE WITH BUFFER

ALTERNATE PATHS

Linking Processes

A

A

A

B

B

B



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Types of Process

SPLITTING PRODUCTS

SIMULTANEOUS ACTIVITIES

A

B

A

B



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Some Definitions

Machine Availability is the time the machine is

available for productive use.

Machine Utilization is the ratio of the time the

resource is actually used relative to the time that it is

available for use.

Cycle Time is the average elapsed time between

starting and completing a job.

Set-up Time, also called the setting time, it is the

time during which the machine is idle while processtools or dies etc. are fitted to make it capable of

production.



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Some Definitions

A multiple-stage process normally requires to be

buffered internally if the processes are not continuous.

Buffering refers to a storage area where the output of

a stage is placed before being used in a downstream

stage. Buffering allows the stages to operateindependently. If one stage feeds a second stage with

no intermediate buffer, then the assumption is that it is

a continuous process and the two stages are directly

linked.



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Some Definitions

In a continuous process, the most common

problems are blocking and starving.

Blocking occurs when the activities in the stage

move faster than that of the next stage and it

becomes necessary to stop the processbecause there is no place to deposit its output.

Starving occurs when the activities in a stage

must stop because there is not sufficient output

from the stage preceding it.



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Typology of Processes

By Market orientation

1. Make to stock (MTS)

2. Assemble to Order ( ATO)

3. Make to Order ( MTO)

4. Engineer to Order (ETO)



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By Customer Involvement

1. Self Service

2. Product Selection3. Partnership



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Basic Manufacturing Processes

A way to categorize manufacturing processes is based

on what they do. At the most basic level, the types of

processes do the following things:

Analytic Processes:

Synthetic Processes:

Modifying Processes:



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Level of Mechanization

The mix of equipment and human skills in the process

defines Capital intensity. With an increase in the level of

mechanization, the relative cost of equipment and the

capital intensity also increases.

The top of the pyramid in mechanization is automation.Automation is a systems, process, or price of equipment

that is self-acting and self-regulating.

Manufacturers use two types of automation systems:

Fixed and, Flexible.



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Flexibility

Mix Flexibility:

Changeover Flexibility:

Modification Flexibility:

Volume Flexibility:

Rerouting Program Flexibility:

Material Flexibility:

Flexibility Responsiveness:



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Flexibility and Speed


Low Cost

F l e x i b i l i t y

Continuous

Flow

Line

Flow

Job

Shop

Project

Low Cost

D e l i v e r y Time

Make to

Stock

Assemble

to Order

Make to

Order


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Product Process matrix

Low unit

cost High unit cost

High volumeHigh volume

CommodityCommodity

ProductsProducts

High volumeHigh volume

some Productssome Products

varietyvariety

Moderate volumeModerate volume

multiple productsmultiple products

Low volumeLow volume

many productsmany products

One of a kindOne of a kind

productproduct

ProcessProcess

alternativealternative

ContinuousContinuous

flowflow

PetrochemicalsPetrochemicals

Assembly lineAssembly line ECILECIL

Batch flowBatch flow Scientific computersScientific computers

FMSFMS Assembly line of automobile unitsAssembly line of automobile units

CellCell Manufacturing subManufacturing sub--assemblyassembly

Job ShopJob Shop Tools , jigsTools , jigs

ProjectProject constructionsconstructions

High

Product

variety

Low

Product

variety



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Product Process matrix


Characteristics

Process VolumeProduct

Variety

Product

Flow

Facility

Layout

Fixed

Costs

Variable

CostsEquipment

Contiguous

High

Low

Dominant Standard Product High LowSpecialPurpose

Assembly lineStandard With

minorModification

Dominant Product High LowSpecialpurpose

BatchSomevariation

Dominant Product High LowSomeFlexibility

Flexible

Manufacturing

Systems

Moderate

Variety

Dominant Product High Low Flexible

ManufacturingCell

Moderatevariety

Dominant Product ModerateLow tomoderate

Flexible

Job shopMajorDifferences

Random Process Low High Flexible

Project One One-of- a-kindNotapplicable

Fixedposition

Low tomoderate

High Flexible


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Characteristics of different

Manufacturing Systems

Characteristics1. Process

2. Volume

3. Product Variety

4. Product flow5. Facility Lay Out

6. Fixed Cost

7. Variable cost

8. Equipments

There are two ends of a continuum of production systems: Process focused systems, and

Product focused systems.



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Services Process


Processes in services are similar to those used in

production. Process sheets and flow diagrams are

used to specify a process. Typology of processes is also

similar.

However, a majority of service operations operate on aMTO or ATO basis, in part because it is not possible to

inventory the product being requested.

Lead times become a very important consideration in

many service operations. Some competitive situationsallow a delay, which is called a backlog. When orders

are placed, they may have to wait in a queue until the

firm has the resources to start making the product.


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Services Process

High volumes at a service process typically mean the

following:

Process: The product or the customer moves through a series of

standardized steps, such as in line flows or assembly lines.

In-house Production: High volumes make it more likely that theservice provider will minimize the processes that are outsourced.

Resource Flexibility: High process volumes and repetition create,

less need skill levels that are not high. Resources can be

dedicated to standardized services.

Customer Involvement: The customer may be involved inperforming self-service activities or in selecting from standard

service options rather than getting customized treatment.

Automation: High process volumes and the repetitive nature of

the tasks allow more automation



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Services Process

Low volumes typically mean the following:

Process: Customized treatment means a low-volumes process,

and each customer requires different changes in the process

itself.

Outsourcing: Low volumes make it more likely that the serviceprovider will outsource processes that can be executed better

and cheaper outside.

Resource Flexibility: Employees must have high-skill levels

and equipment should be able to handle new or unique services

on demand..

Customer Involvement: Low volume is typical of high customer

contact.

Capital Intensity: Custom is often very labor-intensive.



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Designing Processes

Product

Technical

Specifications

PROCESSPLANNING

Process

Analysis

Route Sheet Operations

Analysis

Operations

Sheet

Flow Analysis Equipment

Analysis

Operation

Content

Operation

methods

Analysis

Primary

Equipment

Secondary

Equipment



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OperationsManagement

C l i c k t o e d i t c o m p a n y s l o g a n .

topic 3 & 4 - process & capacity

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