process and production

8/8/2019 Process and Production

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PROCESS AND PRODUCTION

BY GROUP 5:

ABHIJIT PCHANDINI M

LINTU TONY

CHERIAN MARIAMMA

POOJA M

KAUSTAV SEN

RICHA SINGH


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Process - Meaning

An operation is composed of

processes designed to add value by transforming

inputs into useful outputs. Inputs may be materials,

labor, energy, and capital equipment. Outputs may bea physical product (possibly used as an input to

another process) or a service. Processes can have a

significant impact on the performance of a business,

and process improvement can improve a firm'scompetitiveness.


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The first step to improving a process is to analyze it in order to

understand the activities, their relationships, and the values of

relevant metrics. Process analysis generally involves the

following tasks:

Define the process boundaries that mark the entry points of the

process inputs and the exit points of the process outputs.

Construct a process flow diagram that illustrates the various

process activities and their interrelationships.

Determine the capacity of each step in the process. Calculate

other measures of interest.

Identify the bottleneck, that is, the step having the lowest

capacity. Evaluate further limitations in order to quantify the impact of

the bottleneck.

Use the analysis to make operating decisions and to improve

the process.


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Process Performance Measures

Some of the process performance measures that are interested in

process aspects such as cost, quality, flexibility, and speed

include:

Process capacity - The capacity of the process is its maximum

output rate, measured in units produced per unit of time

Capacity utilization - the percentage of the process capacity

that actually is being used.

Throughput rate (also known as flow rate ) - the average rate

at which units flow past a specific point in the process.

Flow time (also known as throughput time or lead time) - the

average time that a unit requires to flow through the process

from the entry point to the exit point.


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Cycle time - the time between successive units as they are

output from the process.

Process time - the average time that a unit is worked on.

Process time is flow time less idle time.

Idle time - time when no activity is being performed. The term

can be used to describe both machine idle time and worker idle

time.

WorkIn process - the amount of inventory in the process.

Set-up time - the time required to prepare the equipment to

perform an activity on a batch of units.

Direct labor content- the amount of labor (in units of time)actually contained in the product.

Direct labor utilization - the fraction of labor capacity that

actually is utilized as direct labor.


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Capacity planning

-the task of determining the long

and short run capacity needs of an organization

and then determining how these will besatisfied.

Determination of plant capacity

Capacity planning strategies

Equipment selection


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Determination of plant capacity

Production system design is the first level planning for theinputs, conversion activities and outputs of a productionoperation.

Design decisions are very important because they areassociated with investment of funds.

Design capacity of a system is the rate of output ofgoods or services under full operating conditions. Preliminaryestimate of capacity is done based on long range forecastextending 5 to 10 years into the future.

System capacity is the maximum output of a specificproduct or product mix that a system of workers and

equipment is capable of producing as an integrated whole.It may be less than the design capacity due to mismatch

btw required and available resources. The actual output mayeven be less than the system capacity due to factors like actualdemand equipment breakdown and personal absenteeism .


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Capacity Planning Strategies

Long term capacity strategies:The strategies followed by the top mgmt

to cope up with the major changes in products andservices that it can provide to customers in long run. Theyhave a significant impact on the capacity.

Develop new product lines

Expand existing facilities

Construct or phase out production plants

Short term capacity strategies:

The purpose of short term capacityplanning is to respond to variations in demand during theshort term planning horizon. Strategies like overtime,subcontracting, hiring, firing, etc.


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Equipment Selection

The process of identifying a set of suitableequipments which are most suitable for processing a setof products.

mass production- establish a product line for a single

product having similar requirements batch production-machines are selected by taking the

availability of machines and processing requirements ofproducts.

cost has to be considered so the alternatives are listedand the best option is chosen.

capacity limitations are often stated in terms ofequipments efficiencies or amount of scrap loss.


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Plant Location Decisions

Location Options expand an existing facility

add new locations while retaining existing ones

shut down at one location and move to another

the option of doing nothing

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General Procedure for Making

Location Decisions1. Decide on the criteria to use for evaluating locationalternatives, such as increased revenues or community

service.

2. Identify important factors, such as location of markets orraw materials.

3. Develop location alternatives:

Identify the general region for a location.

Identify a small number of community alternatives.

Identify site alternatives among the community

alternatives.

4. Evaluate the alternatives and make a selection.11


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Location Decision Factors

12

Regional Factors

Site-related

FactorsMultiple Plant

Strategies

CommunityConsiderations


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Factors that Affect Location Decisions

Regional Factors Location of Raw Materials (necessity, perishability, and

transportation costs)

Location of Markets (locate near the markets, distribution

costs, the perishability of a finished product, GIS)

Labor Factors (cost and availability

of labor, wage rates in an area, labor

productivity and attitudes toward work, and unions)

Climate and Taxes

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Community Considerations

Eg: airport expansion, changes in zoning,construction of nuclear facilities, and highway

construction

desirability of a community as a place for its

workers and managers to live cost and availability of utilities, environmental

regulations, taxes

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Site-RelatedFactors

Heavy manufacturing, the erection of largebuildings, facilities with special requirements, soil

conditions, load factors, and drainage rates

Land costs, room for future expansion, current utility

and sewer capacities and sufficient parking space for

employees and customers

Industrial parks

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Multiple Plant Strategies

Product plant strategy

Market area plant strategy

Process plant strategy

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Minimize material handling cost

Utilize space and labor efficiently

Eliminate bottlenecks

Facilitate communication and interaction

Reduce manufacturing cycle time

Reduce customer service time

Eliminate wasted or redundant movement

Increase capacity

Facilitate entry, exit, and placement of material, products,

and people

Incorporate safety and security measures

Promote product and service quality

Provide flexibility to adapt to changing conditions


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Basic Layouts

Process layouts

group similar activities together according to process

or function they perform

Product layouts

arrange activities in line according to sequence of

operations for a particular product or service

Fixed-position layouts

are used for projects in which product cannot be

moved


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Process Layout in Services

Womens

Garments

Shoes SportsWear

MensGarments

Jewellery Housewares

Cards and Gifts

Section

Electronics Childrens

Department


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Manufacturing Process Layout

L

L

L

L

L

L

L

L

L

LM

M

M

M

D

D

D

D

D

D

D

D

G

G

G

G

G

G

A A AReceiving andShipping Assembly

Painting Department

Lathe DepartmentMilling

Department Drilling Department

GrindingDepartment

P

P


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InIn

OutOut

A Product Layout


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Comparison of Product and Process Layouts

PRODUCT LAYOUTPRODUCT LAYOUT PROCESS LAYOUTPROCESS LAYOUT

1. Description Sequential arrangement Functional grouping

of machines of machines

2. Type of Process mass production mainly Intermittent, job shop

assembly batch production,

mainly fabrication

3. Product Standardized Varied

made to stock made to order 4. Demand Stable Fluctuating

5. Volume High Low

6. Equipment Special purpose General purpose

7. Workers Limited skills Varied skills


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Fixed-Position Layouts

Typical of projects in which product produced is too

fragile, bulky, or heavy to move

Equipment, workers, materials, other resources brought

to the site

Low equipment utilization

Highly skilled labor

Typically low fixed cost

Often high variable costs


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Designing Process Layouts

Goal: minimize material handling costs

Block Diagramming

minimize nonadjacent loads

use when quantitative data is available Relationship Diagramming

based on location preference between areas

use when quantitative data is not available


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Designing Product Layouts

Objective

Balance the assembly line

Line balancing

tries to equalize the amount of work at eachworkstation

Precedence requirements

physical restrictions on the order in which operations

are performed Cycle time

maximum amount of time a product is allowed to

spend at each workstation


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Designing Service Layouts

Objectives Minimize flow of customers or paperwork Retailing tries to maximize customer exposure to products Computer programs consider shelf space, demand, profitability Layouts must be aesthetically pleasing

Types

Free flow layouts

encourage browsing, increase impulse purchasing, are flexible

and visually appealing

Grid layouts

encourage customer familiarity, are low cost, easy to clean and

secure, and good for repeat customers

Loop and Spine layouts

both increase customer sightlines and exposure to products, while

encouraging customer to circulate through the entire store


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Hybrid LayoutsCellular layouts

group dissimilar machines into work centers (calledcells) that process families of parts with similar

shapes or processing requirements

Flexible manufacturing system

automated machining and material handling systems

which can produce an enormous variety of items

Mixed-model assembly line

processes more than one product model in one line


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Advantages and Disadvantages of

Cellular LayoutsAdvantages Disadvantages

Reduced material Inadequate part families

Handling and transit

time

Poorly balanced cells

Reduced setup time Expanded training

Better use of human

resources

Increased capital

investment

Easier to control

Easier to automate


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Types Of Production

There are 4 types of production:

1.Job Production

2.Batch Production

3.Flow Production, and

4.Project Production.


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Job Production

Job Production sometimes called jobbing.

It involves producing a one-off product for a specific

customer.

It involve an individual or a group or worker handles the

task.

It most often associated with small firms (making

railings for a specific house, building/repairing a

computer for a specific customer, making flower

arrangements for a specific wedding etc.) but large firms

use job production too.

Eg: hairdressers, tailoring, painting and decorating,

plumbing and heating repairs in the home.


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Batch Production

Batch Production is a way of creating items in bulk.

In the batch production, the work is divided into parts

called batches which happens in the large

organizations.

It is the manufacturing technique of creating a

component at a workstation before moving to the next

step in production.


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Flow Production

Flow production involves acontinuous movement of items through the

production process. This means that when one task is

finished the next task must start immediately.

Therefore, the time taken on each task must be thesame.

Project Production

Project Production is defining a

production as a project for one time only.


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Thank you!!!

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