business process re-engineering supervisor : prof. houmin yan group r: shirley ma bobby chong george...

Business Process Business Process Re-engineeringRe-engineering

Supervisor : Prof. Houmin Yan

Group R : Shirley Ma Bobby Chong George WongLeung Chi Cheong

Presentation FlowPresentation FlowI. Important of Business Process Re-engineeringII. C&K SystemsIII. MC760 SeriesIV. Project ObjectiveV. Process layout VS Product layoutVI. Evaluation method - SimulationVII. Simulation tool - ProModelVIII. Demonstration IX. AnalysisX. RecommendationsXI. Contributions

Business Process Re-Business Process Re-engineering (BPR)engineering (BPR)

‘the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed’

redesign itserves your customers better

Question the entire existing operation

Why do companies need BPR?Why do companies need BPR?Surviving in the changing world, companies

must rethink their used operational way

Seeking a much competitive wayMaking money in the most cost-effective

wayIdentify and eliminate non-value added operations

Achieve waste reduction

Shorten lead-time to market

C&K SystemsC&K Systems

C & K SystemsC & K SystemsEstablished in 1982Largest, successful security product m

anufacturerProvides innovative quality products

and exceptional customer service to the worldwide security industry

Brand names C&K, IntelliSense® and Securitech™

IntelliSense PIR Motion SensorIntelliSense PIR Motion SensorMC760 SeriesMC760 Series

PIR (Passive Infrared Recognition) Motion Sensor with Small Animal Immunity

Installer-friendly Eliminate false alarmsAccurate detection

of human intruders

Production CellProduction CellWork cell has undergone BPR

Process layout -> Product layoutProduction line has two different designsModel 1 is studied in the 1st termIn the 2nd term, we focus on the changed

work cell (Model 2)

Project ObjectiveProject Objective

Balancing the line to smoothen the flow of system and reduce the cost of idleness

Process layout Product layout

Process layout VS Product layoutProcess layout VS Product layout

Produce diversified products in large or small volume at varying rates of output

Diversified flow pattern Relatively low fixed costs high unit costs for direct labor, materials storage and handling

Produce a standardized product in large volume at stable rates of output Straight line flow

Relatively high fixed costs low unit direct labor and materials costs

Drawback of process layoutDrawback of process layoutInefficient in producing standardized productsLow turnover of raw material and WIP inventories Low rate of output per unit of facility space Unpredictable and unsystematic in ordering material

Specified processes for particular product have low utilization rate

Model 2

Model 1

Differences in layoutsDifferences in layouts

Work cell Model 2 Model 11. Size 1630 sq. feet 2500 sq. feet2. Number of cell 2 13. Number of operator 54 634. Number of operation 17 365. Number of stage 3 46. Buffer storage area Yes No7. Use of conveyor No Yes

Difference in Difference in production capacityproduction capacity

Model 2 Model 11. Output 128 pieces/hr 130 pieces/hr

(i.e. 1280 units/dayfor 2 cells)

(i.e. 1040 units/dayfor 1 shift)

2. Working hour 10 hours/day 8 hours/shift3. Cycle time 56 seconds 28 seconds4. Finished time

per unit18.86 minutes 22.18 minutes

Evaluation Method - SimulationEvaluation Method - Simulation

Designing a computerized model of a system (or process) and conducting experiments with this model

Purposes

Applied to manufacturing industry for about 30 years.

Practical and widely used problem-solving technique

2. evaluating various strategies for the operationof the system

1. understanding the behavior of the system

Advantages of SimulationAdvantages of Simulation

Permits controlled experimentationAllows time compressionGives sensitivity analysis by

manipulation of input variablesPermits study of the real system

without actual modification of that system in any way

Simulation ToolSimulation ToolProModel (Production Modeler)A software system for simulating and an

alyzing production systems of all types and sizes

Work on PC platform

What do the plants What do the plants look like?look like?

Let us see a demonstration!

Analysis on Model 1Analysis on Model 1Low Utilization -- unbalanced system Average utilization rate is 31.55%Throughput : 71 pieces per hourWastage of resources

Cell 1

Cell 2

Analysis on Model 2Analysis on Model 2High Utilization but still not balanceAverage utilization rate is 72%Throughput : 130 pieces per hourStable system

Recommendation 1Recommendation 1Add one machine in process 7 and

remove one tester in Function test in order to make it more balance

All machines are always working except the repairing machines and the last testing stage having much long idle time

The average utilization percentage is 90% (25% increased)

Recommendation 2Recommendation 2Increase the human resource flexibilityWorkers in first six processes are suggeste

d to shift to the posterior processes Cross-training for each working station is needed

What is happen to company after What is happen to company after re-engineering its process?re-engineering its process?

$US25M -- Inventory saving$US40M -- Total saving

SUCCESSFUL PROCESS RE-SUCCESSFUL PROCESS RE-ENGINEERING!ENGINEERING!

Our ContributionsOur ContributionsIntensively apply simulationMore than 150 considered cases

involving many scenariosSensitivity analysis is studiedUncertainty considerationCost effective Time saving

ConclusionConclusionBusiness Process Re-engineering acts as a

step to survive and stay in businessMC760 series is reengineered successfullySimulation is used as evaluation methodProviding recommendations

to further smoothen the production line

The EndThe End