topic 3 & 4 - process & capacity
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OperationsManagement
Prof. Upendra Kachru
Processes
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Operations Management
Process
A process is any part of an
organization that takes inputs and
transforms them into outputs with
value addition. The objective is toprovide maximum overall value to the
customer
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Operations Management
Billet
Yard
Cutting
Machine
Waiting
FurnaceHeatingForging
Die
Condition
Inspection
OK
To
Auto
OK
Not OKChange DieOK
Flow of Materials
Operations
Decisions
Storage
A Process Flow Diagram is a tool that categorizes each
activity and provides operation details to understand the
process.
Process Flow Diagram
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Operations Management
Processing a Connecting Rod
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Operations Management
A Process Flow Chart is a tool that categorizes each activityand provides operation details to describe the process.
Process Flow Chart
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Operations Management
Types of ProcessMULTI STAGE
MULTI STAGE WITH BUFFER
ALTERNATE PATHS
Linking Processes
A
A
A
B
B
B
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Operations Management
Types of Process
SPLITTING PRODUCTS
SIMULTANEOUS ACTIVITIES
A
B
A
B
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Operations Management
Some Definitions
Machine Availability is the time the machine is
available for productive use.
Machine Utilization is the ratio of the time the
resource is actually used relative to the time that it is
available for use.
Cycle Time is the average elapsed time between
starting and completing a job.
Set-up Time, also called the setting time, it is the
time during which the machine is idle while processtools or dies etc. are fitted to make it capable of
production.
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Operations Management
Some Definitions
A multiple-stage process normally requires to be
buffered internally if the processes are not continuous.
Buffering refers to a storage area where the output of
a stage is placed before being used in a downstream
stage. Buffering allows the stages to operateindependently. If one stage feeds a second stage with
no intermediate buffer, then the assumption is that it is
a continuous process and the two stages are directly
linked.
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Operations Management
Some Definitions
In a continuous process, the most common
problems are blocking and starving.
Blocking occurs when the activities in the stage
move faster than that of the next stage and it
becomes necessary to stop the processbecause there is no place to deposit its output.
Starving occurs when the activities in a stage
must stop because there is not sufficient output
from the stage preceding it.
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Operations Management
Typology of Processes
By Market orientation
1. Make to stock (MTS)
2. Assemble to Order ( ATO)
3. Make to Order ( MTO)
4. Engineer to Order (ETO)
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Operations Management
By Customer Involvement
1. Self Service
2. Product Selection3. Partnership
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Operations Management
Basic Manufacturing Processes
A way to categorize manufacturing processes is based
on what they do. At the most basic level, the types of
processes do the following things:
Analytic Processes:
Synthetic Processes:
Modifying Processes:
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Operations Management
Level of Mechanization
The mix of equipment and human skills in the process
defines Capital intensity. With an increase in the level of
mechanization, the relative cost of equipment and the
capital intensity also increases.
The top of the pyramid in mechanization is automation.Automation is a systems, process, or price of equipment
that is self-acting and self-regulating.
Manufacturers use two types of automation systems:
Fixed and, Flexible.
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Operations Management
Flexibility
Mix Flexibility:
Changeover Flexibility:
Modification Flexibility:
Volume Flexibility:
Rerouting Program Flexibility:
Material Flexibility:
Flexibility Responsiveness:
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Operations Management
Flexibility and Speed
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Low Cost
F l e x i b i l i t y
Continuous
Flow
Line
Flow
Job
Shop
Project
Low Cost
D e l i v e r y Time
Make to
Stock
Assemble
to Order
Make to
Order
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Operations Management
Product Process matrix
Low unit
cost High unit cost
High volumeHigh volume
CommodityCommodity
ProductsProducts
High volumeHigh volume
some Productssome Products
varietyvariety
Moderate volumeModerate volume
multiple productsmultiple products
Low volumeLow volume
many productsmany products
One of a kindOne of a kind
productproduct
ProcessProcess
alternativealternative
ContinuousContinuous
flowflow
PetrochemicalsPetrochemicals
Assembly lineAssembly line ECILECIL
Batch flowBatch flow Scientific computersScientific computers
FMSFMS Assembly line of automobile unitsAssembly line of automobile units
CellCell Manufacturing subManufacturing sub--assemblyassembly
Job ShopJob Shop Tools , jigsTools , jigs
ProjectProject constructionsconstructions
High
Product
variety
Low
Product
variety
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Operations Management
Product Process matrix
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Characteristics
Process VolumeProduct
Variety
Product
Flow
Facility
Layout
Fixed
Costs
Variable
CostsEquipment
Contiguous
High
Low
Dominant Standard Product High LowSpecialPurpose
Assembly lineStandard With
minorModification
Dominant Product High LowSpecialpurpose
BatchSomevariation
Dominant Product High LowSomeFlexibility
Flexible
Manufacturing
Systems
Moderate
Variety
Dominant Product High Low Flexible
ManufacturingCell
Moderatevariety
Dominant Product ModerateLow tomoderate
Flexible
Job shopMajorDifferences
Random Process Low High Flexible
Project One One-of- a-kindNotapplicable
Fixedposition
Low tomoderate
High Flexible
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Operations Management
Characteristics of different
Manufacturing Systems
Characteristics1. Process
2. Volume
3. Product Variety
4. Product flow5. Facility Lay Out
6. Fixed Cost
7. Variable cost
8. Equipments
There are two ends of a continuum of production systems: Process focused systems, and
Product focused systems.
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Operations Management
Services Process
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Processes in services are similar to those used in
production. Process sheets and flow diagrams are
used to specify a process. Typology of processes is also
similar.
However, a majority of service operations operate on aMTO or ATO basis, in part because it is not possible to
inventory the product being requested.
Lead times become a very important consideration in
many service operations. Some competitive situationsallow a delay, which is called a backlog. When orders
are placed, they may have to wait in a queue until the
firm has the resources to start making the product.
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Operations Management
Services Process
High volumes at a service process typically mean the
following:
Process: The product or the customer moves through a series of
standardized steps, such as in line flows or assembly lines.
In-house Production: High volumes make it more likely that theservice provider will minimize the processes that are outsourced.
Resource Flexibility: High process volumes and repetition create,
less need skill levels that are not high. Resources can be
dedicated to standardized services.
Customer Involvement: The customer may be involved inperforming self-service activities or in selecting from standard
service options rather than getting customized treatment.
Automation: High process volumes and the repetitive nature of
the tasks allow more automation
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Operations Management
Services Process
Low volumes typically mean the following:
Process: Customized treatment means a low-volumes process,
and each customer requires different changes in the process
itself.
Outsourcing: Low volumes make it more likely that the serviceprovider will outsource processes that can be executed better
and cheaper outside.
Resource Flexibility: Employees must have high-skill levels
and equipment should be able to handle new or unique services
on demand..
Customer Involvement: Low volume is typical of high customer
contact.
Capital Intensity: Custom is often very labor-intensive.
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Operations Management
Designing Processes
Product
Technical
Specifications
PROCESSPLANNING
Process
Analysis
Route Sheet Operations
Analysis
Operations
Sheet
Flow Analysis Equipment
Analysis
Operation
Content
Operation
methods
Analysis
Primary
Equipment
Secondary
Equipment
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OperationsManagement
C l i c k t o e d i t c o m p a n y s l o g a n .