LearningObjec*ves · 5 TechnologyandCompeve Advantage’’ • Innovaonsin • Productsandservices...

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Process Selec*on and Design

Dr. Richard Jerz

© 2014 rjerz.com 1

Learning Objec*ves

•  Explain the strategic importance of process selec*on.

•  Explain the influence that process selec*on has on an organiza*on.

•  Explore process alterna*ves •  Describe produc*on and process technologies

•  Examine process analysis tools •  Define some modern process technologies

© 2014 rjerz.com 2

Process Selec*on and System Design

© 2014 rjerz.com 4

Forecasting

Product andService Design

TechnologicalChange

CapacityPlanning

ProcessSelection

Facilities andEquipment

Layout

WorkDesign

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Process Strategy

•  Key aspects of process strategy •  Capital intensive – equipment/labor •  Long term commitment •  Technology

•  Effects •  Cost •  Process and product flexibility, adjust to changes

•  Design •  Volume •  Technology

•  Efficiency

© 2014 rjerz.com 5

Major Implica*ons

•  Capacity planning •  Layout of facili*es •  Equipment •  Design of work systems

© 2014 rjerz.com 6

How Do We Produce Goods/Services

•  Make or Buy? •  Available capacity •  Exper*se •  Quality Considera*ons •  The nature of demand •  Cost

© 2014 rjerz.com 7

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Process Selec*on

•  Volume •  Expected output

•  Variety •  How much

•  Flexibility •  What degree

© 2014 rjerz.com 8

Job Shop

Batch

Repetitive

Continuous

Product-‐Process Selec*on

© 2014 rjerz.com 9

Process, Volume, and Variety

© 2014 rjerz.com 10

Process Focusprojects, job shops

(machine, print, carpentry)

Standard Register

Repetitive(autos, motorcycles)

Harley Davidson

Product Focus(commercial

baked goods, steel, glass)Nucor Steel

High Varietyone or few units per run, high variety(allows customization)Changes in Modulesmodest runs, standardized modulesChanges in Attributes (such as grade, quality, size, thickness, etc.) long runs only

Mass Customization(difficult to achieve, but huge rewards)Dell Computer Co.

Poor Strategy (Both fixed and variable costs

are high)

Low Volume

Repetitive Process

High Volume

Volume

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Process and Characteris*cs


Process Technology Strategy

•  Technology and Innova*on: The applica*on of scien*fic discoveries to the development and improvement of products, services and opera*ons processes.


Kinds of Technology

•  Opera*ons management is primarily concerned with three kinds of technology: •  Product and service technology •  Process technology •  Informa*on technology

•  All three have a major impact on: •  Costs •  Produc*vity •  Compe**veness


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Technology and Compe**ve Advantage

•  Innova*ons in •  Products and services

•  Cell phones •  iPhone • Wireless compu@ng

•  Process technology •  Increasing produc@vity •  Increasing quality •  Lowering costs


Automa*on Technology

•  Automa*on: Machinery that has sensing and control devices that enables it to operate •  Fixed automa*on •  Programmable automa*on

•  Examples •  Computer-‐aided design and manufacturing systems (CAD/CAM)

•  Numerically controlled (NC) machines •  Robots •  Flexible manufacturing systems (FMS) •  Computer-‐integrated manufacturing (CIM)


Process Analysis Tools

•  Crossover Chart – Shows which alterna*ve is best at a produc*on volume

•  Flow Diagrams -‐ Shows the movement of materials

•  Time-‐Func*on Mapping -‐ Shows flows and *me frame

•  Value Stream Mapping -‐ Shows flows and *me and value added beyond the immediate organiza*on

•  Process Charts -‐ Uses symbols to show key ac*vi*es


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Crossover Charts: Select the Process with Lowest Cost

•  How is cost determined? •  Accoun*ng methods •  Engineering economics/financial analysis •  Resource consump*on model (RCM)


Break-‐even (crossover)


Process Flow Diagram


THE ASSEMBLY LINETESTING28 tests

Oil tank work cell

Shocks and forks

Handlebars

Fender work cell

Air cleaners

Fluids and mufflers

Fuel tank work cell

Wheel work cellRoller testing

Incoming parts

From Milwaukee on a JIT arrival schedule

Engines and transmissions

Frame tube bending

Frame-building work cells

Frame machining

Hot-paintframe painting

Crating

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Process Chart


Time-‐Func*on Mapping


Customer

Sales

Production control

Plant

Warehouse

Transport Move

Receive product

Extrude

Wait

Print

Order product

Process order

Wait

1 day 2 days 1 day 1 day 1 day6 days

Value Stream Map


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Modern Produc*on Technologies

•  Machine technology •  Robots •  Vision system •  Process control, people-‐machine interfaces •  Flexible manufacturing systems (FMS) •  Automated storage and retrieval systems (ASRS)

•  Automa*c iden*fica*on systems (AIS) •  Computer-‐integrated manufacturing (CIM)


Machine Technology

•  Increased precision •  Increased produc*vity •  Increased flexibility •  Improved environmental impact

•  Reduced changeover *me

•  Decreased size •  Reduced power requirements


Robots


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Robots

•  Perform monotonous or dangerous tasks

•  Perform tasks requiring significant strength or endurance

•  Generally enhance consistency and accuracy


Robo*c Welding


Vision Systems

•  Par*cular aid to inspec*on

•  Consistently accurate •  Never bored •  Modest cost •  Superior to individuals performing the same tasks


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Process Control -‐ Example


Process Control


Flexible Manufacturing Systems (FMS)

•  Computer controls both the worksta*on and the material handling equipment

•  Enhance flexibility and reduced waste •  Can economically produce low volume at high quality

•  Reduced changeover *me and increased u*liza*on

•  Stringent communica*on requirement between components


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FMS Examples


Automated Storage and Retrieval Systems (ASRS)

•  Automated placement and withdrawal of parts and products

•  Reduced errors and labor

•  Par*cularly useful in inventory and test areas of manufacturing firms


Automated Guided Vehicle (AGV)

•  Electronically guided and controlled carts •  Used for movement of products


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Automa*c Iden*fica*on Systems

•  Barcode •  RFID

•  Improved data acquisi*on •  Reduced data entry errors •  Increased speed •  Increased scope of process automa*on


Computer Integrated Manufacturing (CIM)

•  Extension of flexible manufacturing systems •  Backwards to engineering and inventory control •  Forward into warehousing and shipping •  Can also include financial and customer service areas

•  Reducing the dis*nc*on between low-‐volume/high-‐variety, and high-‐volume/low-‐variety produc*on


CIM Wheel (SME)


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Technology in Services

•  Computers •  Barcode & sensors (RFID) •  Internet


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