process fundamentals & process flow analysis(2)

8/10/2019 Process Fundamentals & Process Flow Analysis(2)

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Process Fundamentals &

Process Flow Analysis

Course Instructor

Dr. N. Sambandam

_______________________________________________


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12/1/2014 4

97% NVA3%VA

Most Process Improvement

. . . Achieve this . . .

97% NVA

Teams Attack this . . .

Typical Value Stream Ratio of

Value-Added to Non-Value-Added Activity

. . . and Ignore this

Source: C. Fiore;Lean Strategies for Product Development,ASQ, 2003

Wheresthe Real

Opportunity?

The Process Improvement Pitfall


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TYPES OF PRODUCTION

1. PROJECT

2. UNIT/BATCH3. MASS

4. CONTINUOUS


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PROCESSING OPERATIONS

1) BASIC PROCESSES - SHORT MOVEMENTS

2) SECONDARY PROCESSES - HIGH PRECISION

3) OPERATIONS TO ENHANCE PHYSICAL PROPERTIES - LARGE VOLUME OF

4) FINISHING OPERATIONS INFORMATION FOR PROCESSING.FMS: IT IS A SYSTEM WHERE ADVANTAGES OF BATCH & PROCESS COMBINED


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Customer order decoupling point

Raw

Materials

Components Semi

Finished

Finished

Goods

ENG PROD PROD PROD

SUPPLIER CLIENT

Production Based on Forecast

Stock PointProduction Based onCustomer Order

Engineer -to-Order

Make-to-Order

Assemble-to-Order

Make to Stock


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MANUFACTURING STRATEGY AND LEAD TIME

Design Purchase Manufacture Assembly Ship

Delivery Lead Time

Inventory Manufacture Assembly Ship

Delivery Lead

Time

Manufacture Inventory Assembly Ship

Delivery Lead Time

Manufacture Inventory Assembly Ship

Delivery Lead Time

Engineerto order

Make toorder

Assemblyto order

Make tostock


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PRODUCTS & VOLUMES (PV) LAYOUT & MATERIAL FLOW (LF)

Manufacturing Outputs: D, C, Q, P, F, I

Products & Volumes: HV/U, HV/B, HV/MV,

LV/M, One product/very high volume

Layouts and Material Flow: PL, LL, CL, RL

Level of Manufacturing Capability: Infant,Industry Average, Adult, World Class

Manufacturing Levers: HR, OS, PPC,Sourcing, Process Tech., Facilities


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COMPETITIVE ANALYSIS

Delivery Cost Quality Performance Flexibility Innovativeness

1. Time2. Reliability

Factory cost 1. Rework2. Defects3. Warranty

1. Standard2. Advanced Attributes

1. 22 weeks2. 60%

440,00Per unit

1. $2,0002. 3 defects3. 4%

1. 52. 3

Company- current

1. 25 weeks2. 50%

$35.000Per unit

1. 42. 2

Market

1. 20 weeks

2. 70%

$40,000

Per unit

1. 5

2. 3

Strong

competitor

1. 17 weeks2. 755

$37,000Per unit

1. $1,0002. 1.5 defects3. No target

1. 52. 4

Company- Target

O M M MMarket

Qualifying;Order

winning


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COMPETITIVE ANALYSIS

ProductFamily

Cost(Importance)

Cost(Currentlevel)

Quality(Importance)

Quality(CurrentLevel)

Delivery(Importance)

Delivery(CurrentLevel)

Flexibility(Importance)

Flexibility(CurrentLevel)

cable 30 Verystrong

40 Weak 20 Even 10 weak

PrintedCircuits

20 VeryWeak

50 Even 20 Strong 10 Strong

CopperRod

20 Strong 40 Strong 30 VeryStrong

10 weak


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A Flow Line for Production orService

Flow Shop or Assembly Line Work Flow

Raw materialsor customer

Finisheditem

Station2

Station3

Station4

Material

and/or

labor

Station1

Material

and/or

labor

Material

and/or

labor

Material

and/or

labor


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A U-Shaped Production Line

1 2 3 4

5

6

78910

In

Out

Workers


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Process Layout

Process Layout - work travels

to dedicated process centers

Milling

Assembly

& Test Grinding

Drilling Plating


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Functional Layout

Gearcutting

Mill Drill

Lathes

Grind

Heattreat

Assembly

111

333

222

444

222

111

444

111 33311112222

222

3333

111

444

111


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Cellular Manufacturing Layout

-1111 -1111

222222222 - 2222

Assembly

3333333333 - 3333

44444444444444 - 4444

Lathe

Lathe

Mill

Mill

Mill

Mill

Drill

Drill

Drill

Heat

treat

Heat

treat

Heat

treat

Gear

cut

Gear

cut

Grind

Grind


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Process Selection and System Design

Forecasting

Product andservice design

Capacity

planning

Facilities and

Equipment

Layout

Work

design

Processselection

Technological

change


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PRODUCT LIFE CYCLE

DEMAND 1

23

GROWTH STABILITY DECLINE

TIME


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Process Analysis

Process Flowcharting

Types of Processes

Process Performance Metrics

OBJECTIVES


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Process Analysis Terms

Process: Is any part of anorganization that takes inputs and

transforms them into outputs Cycle Time: Is the average successive

time between completions ofsuccessive units

Utilization: Is the ratio of the timethat a resource is actually activatedrelative to the time that it is available

for use


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Process Flowcharting

Defined Process flowcharting is the use of a

diagram to present the major

elements of a process The basic elements can include tasks

or operations, flows of materials orcustomers, decision points, and

storage areas or queues

It is an ideal methodology by which tobegin analyzing a process


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lowchart Symbols

Tasks or operations Examples: Giving anadmission ticket to a

customer, installing a engine

in a car, etc.

Decision Points Examples: How much change

should be given to a

customer, which wrench

should be used, etc.

Purpose and Examples


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Examples: Sheds, lines of

people waiting for a service,

etc.

Examples: Customers moving

to a seat, mechanic getting a

tool, etc.

Storage areas or

queues

Flows of materials or

customers

Purpose and Examples

lowchart Symbols


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Example: Flowchart of Student

Going to School

Yes

No

Goof

off

Go to

school

today?

Walk to

class

Drive to

school


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Types of Processes

Single-stage Process

Stage 1

Stage 1 Stage 2 Stage 3

Multi-stage Process


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Types of Processes (Continued)

Stage 1 Stage 2

Buffer

Multi-stage Process with Buffer

A buffer refers to a storage area betweenstages where the output of a stage isplaced prior to being used in a

downstream stage


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Other Process Terminology

Blocking

Occurs when the activities in a stage must stopbecause there is no place to deposit the item justcompleted

If there is no room for an employee to place a

unit of work down, the employee will hold on to itnot able to continue working on the next unit

Starving

Occurs when the activities in a stage must stopbecause there is no work

If an employee is waiting at a work station andno work is coming to the employee to process,the employee will remain idle until the next unitof work comes


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Other Process Terminology(Continued)

Bottleneck Occurs when the limited capacity of a

process causes work to pile up or becomeunevenly distributed in the flow of a

process If an employee works too slow in a multi-

stage process, work will begin to pile upin front of that employee. In this is casethe employee represents the limited

capacity causing the bottleneck.

Pacing Refers to the fixed timing of the

movement of items through the process


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Other Types of Processes

Make-to-order

Only activated in response to an actualorder

Both work-in-process and finished goodsinventory kept to a minimum

Make-to-stock

Process activated to meet expected or

forecast demand Customer orders are served from target

stocking level


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Process Performance Metrics

Operation time = Setup time +Runtime

Throughput time = Average time fora unit tomove through the

system

Velocity = Throughput time

Value-added time


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Process Performance Metrics(Continued)

Productivity = Output

Input

Utilization = Time Activated

Time Available


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Cycle Time Example

Suppose you had to produce 600 units in 80hours to meet the demand requirements of aproduct. What is the cycle time to meet this

demand requirement?

Answer: There are 4,800 minutes (60minutes/hour x 80 hours) in 80 hours. So the

average time between completions would haveto be: Cycle time = 4,800/600 units = 8 minutes.


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Process Throughput TimeReduction

Perform activities in parallel

Change the sequence of activities

Reduce interruptions

process fundamentals & process flow analysis(2)

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