opsm 301 operations management class 3: process selection koç university zeynep aksin...
TRANSCRIPT
Process Selection Video
Back to Shouldice wrap-upfrom last class
Classification of Processesby process architecture
Project
Job Shop
Batch
Line flow
Continuous Flow
Job Shop
Process-focused
Flow Shop
Product-focused
ProcessFlexibility
Jumbled Flow.Process segmentsloosely linked.
Disconnected LineFlow/Jumbled Flowbut a dominant flowexists.
JOB SHOP
(Commercial Printer,Architecture firm)
BATCH
(Heavy Equipment,Auto Repari)
LINE FLOWS
(Auto Assembly,Car lubrication shop)
CONTINUOUSFLOW
(Oil Refinery)
ProductVariety
LowLow Standardization
One of a kindLow Volume
Many ProductsFew Major Products
High volume
High StandardizationCommodity Products
Connected LineFlow (assembly line)
Continuous, automated,rigid line flow.Process segments tightlylinked.
Oppor
tunity
Costs
Out-of
-poc
ket
Costs
High
Low
High
Matching Process Choice with Strategy:Product-Process Matrix
Organization of Production Processes
Project: the product remains in a fixed location– Manufacturing equipment is moved to the product
Job shop (Workcenter): similar equipment or functions are grouped together
Assembly line: work processes are arranged according to the progressive steps by which the product is made
Continuous process: assembly line, only the flow is continuous such as with liquids
Project LayoutOne of a kind products are produced
The Job Shop Process
Process Layout One of a Kind Build
– (To Customer Order)
Absence of Rigid Flow Pattern Usually High Product Mix
The Job shopsimilar equipment or functions are grouped together
• High variety, low volume productionHigh variety, low volume production
Routing matrix based upon flow of partsRouting matrix based upon flow of parts
Process Layout
Lathe#Lathe#11
Lathe#Lathe#22
Lathe#Lathe#33
LatheLathe#4#4
Product #1735B: Start of Production
Drill Drill Press Press #1#1
Drill Drill Press Press #2#2
Paint Paint MachineMachine
Packaging Packaging Machine #1Machine #1
Packaging Packaging Machine #2Machine #2
Finish
Production
11
Job-Shop Process Examples (Also called process focused)
Bank
© 1995 Corel Corp.
Machine Shop© 1995 Corel Corp.
Hospital© 1995 Corel Corp.
Process Focused Strategy - Pros & Cons
Advantages– Greater product flexibility– More general purpose equipment– Lower initial capital investment
Disadvantages– High variable costs– More highly trained personnel– More difficult production planning & control– Low equipment utilization (5% to 25%)
The Flow Line Process
Product Layout Discrete Parts Rigid Flow Pattern Product Mix of Standard Products
Product Layout
Product #1735B
LatheLatheStart
Production
Drill Drill Press #2Press #2 Paint MachinePaint Machine
Drill Drill Press #1Press #1
Packaging Machine #2Packaging Machine #2
Finish Production
Product-Focused Strategy Pros & Cons
Advantages– Lower variable cost per unit– Lower but more specialized labor skills– Easier production planning and control– Higher equipment utilization (70% to 90%)
Disadvantages– Lower product flexibility– More specialized equipment– Usually higher capital investment
Positioning Inventory in the Supply Chain
SU
PP
LIE
R
CL
IEN
T
Make-to-Stock
Assemble-to-Order
Make-to-Order
Engineer-to-Order
Raw Material Components Semifinished Finished
Forecast Order
Production Processes Terms
Lead time: the time needed to respond to a customer order
Customer order decoupling point: where inventory is positioned to allow entities in the supply chain to operate independently
Types of Firms
Make-to-stock firms: Firms that serve customers from finished goods inventory
Assemble-to-order firms: firms that combine a number of preassembled modules to meet a customer’s specifications
Make-to-order firms: that make the customer’s product from raw materials, parts, and components
Engineer-to-order firm: firm that will work with the customer to design and then make the product
Make to Stock
Examples of products– Televisions– Clothing– Packaged food products
Essential issue in satisfying customers is to balance the level of inventory against the level of customer service – Easy with unlimited inventory but inventory costs money– Trade-off between the costs of inventory and level of
customer service must be made
Assemble-to-Order
A primary task is to define a customer’s order in terms of alternative components since these are carried in inventory– An example is the way Dell Computer makes their desktop
computers
One capability required is a design that enables as much flexibility as possible in combining components
There are significant advantages from moving the customer order decoupling point from finished goods to components
Make-to-Order and Engineer-to-Order
Boeing’s process for making commercial aircraft is an example
Customer order decoupling point could be in either raw materials at the manufacturing site or the supplier inventory
Depending on how similar the products are it might not even be possible to pre-order parts
Assignment 1 from Universal Pulp and Paper case-individual assignment
Read the Universal Pulp and Paper (UPP) case from the course pack (available at the photocopy center)
What are the main products of UPP? Identify the four product attributes for each product
type. Explain each attribute with facts from the case Which process type is appropriate for each product
type? Support your argument with facts from the case and process attributes you need for each product type.