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MGMT 5240
                                                      Process Design




                                                        Product-Process Strategy

                                                Product-Process Matrix
                                                Product Life Cycle stages
                                                              y       g
                                                Process Life Cycle stages
                                                Product Flow Characteristics
                                                Cross Functional Decision Making




                                                        PRODUCT-PROCESS MATRIX
                                                                    PRODUCT STRUCTURE (Product Life Cycle)

                                                      I                                                              III
                                                                           II                   III
                                                      Low volume-low                                                 High volume-high
                                                                           Multiple products,   Few major products
                                                      standardization, one of                                        standardization,
                                                                           low volume           higher volume
                                                      a kind                                                         commodity products
PROCESS STRUCTURE (Process Life Cycle)




                                         I
                                                                 Commercial
                                         Jumbled flow
                                         (job shop)
                                                                   printer                                               NONE

                                         II
                                         Disconnected                                Heavy
                                         line flow                                 Equipment
                                         (batch)

                                         III
                                         Connected
                                         line flow                                                  Automobile
                                         (assembly                                                   assembly
                                         line)


                                         IV
                                         Continuous                                                                    Sugar
                                         flow            NONE                                                         Refinery




                                                                                                                                          1
Product Life Cycle Stages

             Low volume-low standardization, one of
             a kind
             Multiple p
                   p products, low volume
                             ,
             Few major products, higher volume
             High volume-high standardization,
             commodity product




               Process Life Cycle Stages

             Project
             Job Shop
             Batch
             Mass production
             Continuous production




                    Process Characteristics
               Project        Batch              Mass              Continuous
Product        Unique         Made to order      Made to stock     Commodity
Variety        Infinite       Many, high         Low               Very low
Customer       Singly         Few individuals    Mass market       Mass market
Demand         Infrequent     Fluctuates         Stable            Very stable
Volume         Very low       Low to med         High              Very high
System         Long-term      Intermittent       Flow lines        Process industry
Equipment      Varied         General-purp.      Special-purp.     Highly automated
Type of work   Contracts      Fabrication        Assembly          Mix, treat, refine
Skills         Experts        Wide range         Limited range     Equipment
               craftspeople                                        monitors
Advantages     Custom work    Flexibility        Efficiency        Highly efficient
               quality        speed, low cost    large capacity
Disadv.        Nonrepeating   Costly, slow       Capital invest.   Difficult to change
Example        Construction   Printing, bakery   Autos, TV’s       Paint, oil, food




                                                                                         2
Product-Flow Characteristics

   Types of Product Flow
   ° Project Flow
   ° Batch Flow
   ° Line Flow
   Characteristics of Flows




                  Project Flow

               Task 2                Task 4


Start                                             End

               Task 1                Task 3



                        Task       Task or activity


                                   Precedence relationship




                  Batch Flow

               WS 2                  WS 4



        WS 1              WS 3                  WS 5




                   WS          Task or work station

                               Product flows




                                                             3
Line Flow



                       WS 1              WS 2        WS 3




                       WS        Task or work station

                                    Product flow




                Product-Flow Characteristics
                Project                Batch         Line
  Product
Order Type      Single Unit            Batch         Continuous or Large Batch
Variety         Very High              High          Low
Volume          Single Unit            Medium        High
Variety         Infinite               Many, high    Low
  Labor
Skills             - - - - - - High - - - - - -
                                 g                   Low
Task Type         - - - - Nonroutine - - - -         Routine
Pay                - - - - - - High - - - - - -      Low
  Capital
Investment      Low                    Medium        High
Equipment         - - - General Purpose - - -        Special Purpose
  Objectives
Flexibility     High                   Medium         Low
Cost            High                   Medium         Low
  Control & Planning
Production
Control            - - - - - Difficult - - - - - -    Easy




                          Process Planning

            Make-or-buy decisions
            Process strategy & selection decisions
            Process plans
            Process analysis
            Specific equipment selection




                                                                                 4
Process Plans

 Blueprints
 Bill of material
 Assembly diagram
          y g
 Assembly chart / product
          structure diagram
 Operations process chart / route sheet
 Process flow chart




                 Bill Of Material
                 (unstructured)
No.          Part No.         Part name
1            51292            Outlet end
2            51284            Handle
3            52043            Switch
4            51576            Electric cord
5            51265            Rear housing
6            51268            Motor mounting plate




      Product Structure Diagram
                          Packaged
                          Hand-vac


Upholstery      Crevice                 Dusting
                          Hand-vac                 Package
   tool           tool                   tool


              Forward       Screw &            Rear
               housing    lock washer         housing
              assembly      assembly         assembly




                                                             5
Operations Process Chart
Part name             Table leg
Part no.               2410
Usage                 Table
Assembly No.           437

Oper No.
     No            Description                     Dept.
                                                   Dept Machine Time            Tools
  10              Saw to rough length                041
  20              Plane to size                      043
  30              Saw to finished length             041
  40              Measure dimensions                 051
  50              Sand                               052




                   Process Flowchart
               Date: 9-30-95            Location: Graves Mountain
               Analyst: TLR             Process: Apple Sauce
                  Operation
                  Transport




                                       Description
                   Storage




                                                                       (feet)
                                                                       Dista
                   Inspect




                                                               (min)
                                                               Time
                    Delay
           Step




                                           of
                                        process

           1                      Unload apples from truck      20
           2                      Move to inspection station           100 ft
           3                      Weigh, inspect, sort          30
           4                      Move to storage                       50 ft
           5                      Wait until needed            360
           6                      Move to peeler                        20 ft
           7                      Apples peeled and cored       15
           8                      Soak in water until needed    20
           9                      Place in conveyor             5
           10                     Move to mixing area                   20 ft
           11                     Weigh, inspect, sort          30
                                                   Total       480     190 ft




   Specific Equipment Selection

     Purchase cost
     Operating cost
     Annual savings
     Revenue enhancement
     Replacement analysis
     Risk and uncertainty
     Piecemeal analysis




                                                                                        6
Manufacturing Technology
 Numerically controlled (NC) machines
   °controlled by punched tape
 Computer numerical controlled (CNC)
   °controlled by attached computer
 Direct numerical control (DNC)
                          (   )
   °several NC machines controlled by single
   computer
 Robotics
   °programmable manipulators
   °consistency
   °hostile environment
   °long hours




             Technology

CAM – Computer-aided manufacturing
FMS – Flexible manufacturing systems
CIM – computer-integrated manufacturing




  Flexible Manufacturing
      Systems (FMS)

 Programmable machine tools
 Controlled by common computer
 network
 Combines flexibility with efficiency
 Reduces setup & queue times




                                               7
Flexible Manufacturing System

             Tools

                                                Conveyor


                       Machine                                           Machine

                                   Pallet




                                     Load                       Unload

                                                          Terminal       Finished
                           Parts
                                                                          goods




                       Computer Integrated
                       Manufacturing (CIM)
       Integration of design, manufacture &
       delivery via computer technology
       CAD - uses software to create & modify designs
       CAM - uses programmable automation in
       manufacturing
       CAE - links functional design to CAD form design
       CAPP - creates processing instructions for CAM
       GT- classifies designs to benefit from prior
       experience




                       Components of CIM
                     CAD           CAE              GT          DFM           DFA



  TQM
                                               Product
                                               design                                  CAD/CAM
Bar codes,
   EDI

  MRP                                                                                   CAPP
                            Systems                             Process
   JIT/                    management           CIM             planning
                                                                                      Cellular
 kanban                                                                             manufacturing
 DSS/ES/
   AI                                                                                    MAP,
                                             Manufacture                                 STEP
LAN, TOP,
satellites



        NC/CNC/                                          AGV,        Automated       Cells
                           FMS           Robotics
         DNC                                             ASRS        inspection   and centers




                                                                                                    8
Automated Material Handling

Conveyors
Automated guided vehicle (AGV)
          g               (     )
Automated storage & retrieval system
(ASRS)




              Facility Layouts
Characteristics
° Product – based on equipment (assembly
  line - auto assembly)
° Process – based on similarity of process
  (job shop -machine shop)
° Fixed Position – item built in one place
  (project – ship building)
° Hybrid – combines characteristics of other
  layouts (cellular, FMS, CIM)




                   Process Layout
                               Assembly
          Process A                            Process C

      4                 6                  7                9


               5                                   8

  2                Process B                                    12

                                      10
          1             3                          11
                                                           Process D

      A        B        C      Raw materials




                                                                       9
Product Layout

IN




                                                                  OUT




                Process Layout
              after PWP (cellular)
                                Assembly


                                     9
                8      10
                                                 12           11
     4       Cell1          Cell 2   6               Cell 3

               2       1                         5            7


                                     3

     Raw materials          A        C       B




              Product Layout
                after PWP


                            PWP # 1
                                                                    High
         AA            B                 D       C                 Volume


                            PWP # 2
                                                                    Low
         B              A                C           D             Volume




                                                                            10
Types of Focus
         Product focus
         Process type
         Technology
                  gy
         Volume of sales
         Make-to-stock and make-to-order
         New products and mature products




      Mass Customization & Strategic
            Process Choices
                                                                                                 HIGH/
                                                                                                 LONG
   Make to
 Order (MTO)                                                                     Psychiatric
                                                                                 Counseling


                                                                     Internet-
                                                                      based
                                                                    Education
                                                                                        Volu




                                                          Pre-
                                                                                                  Lead Time
                                                                                           ume




                                                       fabricated
                                                       f bi t d
                                                                                                   COST/




                                                         homes
 Assemble to
 Order (ATO)
                                        Subway



                              Dell
                            Computers                                     MASS
                                                                      CUSTOMIZATION
                    TV                           Customization
                 producer
Make to Stock
                                                                                                   LOW/
   (MTS)
                                                                                                  SHORT
           LOW
                                             Degree of                                           HIGH
                                            Customization




                                                                                                              11

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Production Systems

  • 1. MGMT 5240 Process Design Product-Process Strategy Product-Process Matrix Product Life Cycle stages y g Process Life Cycle stages Product Flow Characteristics Cross Functional Decision Making PRODUCT-PROCESS MATRIX PRODUCT STRUCTURE (Product Life Cycle) I III II III Low volume-low High volume-high Multiple products, Few major products standardization, one of standardization, low volume higher volume a kind commodity products PROCESS STRUCTURE (Process Life Cycle) I Commercial Jumbled flow (job shop) printer NONE II Disconnected Heavy line flow Equipment (batch) III Connected line flow Automobile (assembly assembly line) IV Continuous Sugar flow NONE Refinery 1
  • 2. Product Life Cycle Stages Low volume-low standardization, one of a kind Multiple p p products, low volume , Few major products, higher volume High volume-high standardization, commodity product Process Life Cycle Stages Project Job Shop Batch Mass production Continuous production Process Characteristics Project Batch Mass Continuous Product Unique Made to order Made to stock Commodity Variety Infinite Many, high Low Very low Customer Singly Few individuals Mass market Mass market Demand Infrequent Fluctuates Stable Very stable Volume Very low Low to med High Very high System Long-term Intermittent Flow lines Process industry Equipment Varied General-purp. Special-purp. Highly automated Type of work Contracts Fabrication Assembly Mix, treat, refine Skills Experts Wide range Limited range Equipment craftspeople monitors Advantages Custom work Flexibility Efficiency Highly efficient quality speed, low cost large capacity Disadv. Nonrepeating Costly, slow Capital invest. Difficult to change Example Construction Printing, bakery Autos, TV’s Paint, oil, food 2
  • 3. Product-Flow Characteristics Types of Product Flow ° Project Flow ° Batch Flow ° Line Flow Characteristics of Flows Project Flow Task 2 Task 4 Start End Task 1 Task 3 Task Task or activity Precedence relationship Batch Flow WS 2 WS 4 WS 1 WS 3 WS 5 WS Task or work station Product flows 3
  • 4. Line Flow WS 1 WS 2 WS 3 WS Task or work station Product flow Product-Flow Characteristics Project Batch Line Product Order Type Single Unit Batch Continuous or Large Batch Variety Very High High Low Volume Single Unit Medium High Variety Infinite Many, high Low Labor Skills - - - - - - High - - - - - - g Low Task Type - - - - Nonroutine - - - - Routine Pay - - - - - - High - - - - - - Low Capital Investment Low Medium High Equipment - - - General Purpose - - - Special Purpose Objectives Flexibility High Medium Low Cost High Medium Low Control & Planning Production Control - - - - - Difficult - - - - - - Easy Process Planning Make-or-buy decisions Process strategy & selection decisions Process plans Process analysis Specific equipment selection 4
  • 5. Process Plans Blueprints Bill of material Assembly diagram y g Assembly chart / product structure diagram Operations process chart / route sheet Process flow chart Bill Of Material (unstructured) No. Part No. Part name 1 51292 Outlet end 2 51284 Handle 3 52043 Switch 4 51576 Electric cord 5 51265 Rear housing 6 51268 Motor mounting plate Product Structure Diagram Packaged Hand-vac Upholstery Crevice Dusting Hand-vac Package tool tool tool Forward Screw & Rear housing lock washer housing assembly assembly assembly 5
  • 6. Operations Process Chart Part name Table leg Part no. 2410 Usage Table Assembly No. 437 Oper No. No Description Dept. Dept Machine Time Tools 10 Saw to rough length 041 20 Plane to size 043 30 Saw to finished length 041 40 Measure dimensions 051 50 Sand 052 Process Flowchart Date: 9-30-95 Location: Graves Mountain Analyst: TLR Process: Apple Sauce Operation Transport Description Storage (feet) Dista Inspect (min) Time Delay Step of process 1 Unload apples from truck 20 2 Move to inspection station 100 ft 3 Weigh, inspect, sort 30 4 Move to storage 50 ft 5 Wait until needed 360 6 Move to peeler 20 ft 7 Apples peeled and cored 15 8 Soak in water until needed 20 9 Place in conveyor 5 10 Move to mixing area 20 ft 11 Weigh, inspect, sort 30 Total 480 190 ft Specific Equipment Selection Purchase cost Operating cost Annual savings Revenue enhancement Replacement analysis Risk and uncertainty Piecemeal analysis 6
  • 7. Manufacturing Technology Numerically controlled (NC) machines °controlled by punched tape Computer numerical controlled (CNC) °controlled by attached computer Direct numerical control (DNC) ( ) °several NC machines controlled by single computer Robotics °programmable manipulators °consistency °hostile environment °long hours Technology CAM – Computer-aided manufacturing FMS – Flexible manufacturing systems CIM – computer-integrated manufacturing Flexible Manufacturing Systems (FMS) Programmable machine tools Controlled by common computer network Combines flexibility with efficiency Reduces setup & queue times 7
  • 8. Flexible Manufacturing System Tools Conveyor Machine Machine Pallet Load Unload Terminal Finished Parts goods Computer Integrated Manufacturing (CIM) Integration of design, manufacture & delivery via computer technology CAD - uses software to create & modify designs CAM - uses programmable automation in manufacturing CAE - links functional design to CAD form design CAPP - creates processing instructions for CAM GT- classifies designs to benefit from prior experience Components of CIM CAD CAE GT DFM DFA TQM Product design CAD/CAM Bar codes, EDI MRP CAPP Systems Process JIT/ management CIM planning Cellular kanban manufacturing DSS/ES/ AI MAP, Manufacture STEP LAN, TOP, satellites NC/CNC/ AGV, Automated Cells FMS Robotics DNC ASRS inspection and centers 8
  • 9. Automated Material Handling Conveyors Automated guided vehicle (AGV) g ( ) Automated storage & retrieval system (ASRS) Facility Layouts Characteristics ° Product – based on equipment (assembly line - auto assembly) ° Process – based on similarity of process (job shop -machine shop) ° Fixed Position – item built in one place (project – ship building) ° Hybrid – combines characteristics of other layouts (cellular, FMS, CIM) Process Layout Assembly Process A Process C 4 6 7 9 5 8 2 Process B 12 10 1 3 11 Process D A B C Raw materials 9
  • 10. Product Layout IN OUT Process Layout after PWP (cellular) Assembly 9 8 10 12 11 4 Cell1 Cell 2 6 Cell 3 2 1 5 7 3 Raw materials A C B Product Layout after PWP PWP # 1 High AA B D C Volume PWP # 2 Low B A C D Volume 10
  • 11. Types of Focus Product focus Process type Technology gy Volume of sales Make-to-stock and make-to-order New products and mature products Mass Customization & Strategic Process Choices HIGH/ LONG Make to Order (MTO) Psychiatric Counseling Internet- based Education Volu Pre- Lead Time ume fabricated f bi t d COST/ homes Assemble to Order (ATO) Subway Dell Computers MASS CUSTOMIZATION TV Customization producer Make to Stock LOW/ (MTS) SHORT LOW Degree of HIGH Customization 11