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P&OM -  Production Processes

P&OM - Production Processes






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  • 1. Overproduction Waste from overproduction is one of the greatest wastes commonly found in manufacturing operations. It is created by producing more products than are required by the market. When the market is strong, this waste may not be very noticeable. However, when demand slackens, the overproduction creates a very serious problem with unsold inventory and all the by-products associated with it 2. Transportation The transportation and double or triple handling of raw and finished goods are commonly observed wastes in many factories. Often the culprit of this type of waste is a poorly conceived layout of the factory floor and storage facilities, which can mean long distance transportation and over-handling of materials. This situation is aggravated by such factors as temporary storage, or frequent changes of storage locations. In order to eliminate transportation waste, improvements must be made in the areas of layout, process coordination, methods of transportation, housekeeping and general organization or the operation 3. Motion Waste of motion can be defined as whatever time is spent NOT adding value to the product or process: Movement ≠ Work This type of waste is most often revealed in the actions of the factory workers. It is clearly evident in searching for tools, pick and place of tools and parts kept out of immediate reach of the work station, and especially by the walking done by one operator responsible for several machines. All of these can be eliminated by carefully planned layout and fixture selection.  4. Inventory Inventory waste is closely connected with waste from overproduction. That is, the overproduction creates excess inventory which requires a list of extras including handling, space, interest charges, people, and paperwork. Because of the often substantial cost associated with extra inventory, rigorous measures should be taken to reduce inventory levels 5. Waiting Unlike waste from overproduction, waste from waiting is usually readily identifiable. Idle workers who have completed the required amount of work, or employees who spend much time watching machines but are powerless to prevent problems are two examples of the waste of waiting and are easy to spot. By completing only the amount of work required, the capacity - both speed and volume - of each work station can be monitored. This will result in using only the machinery and personnel required for the minimum amount of time to meet production demands, thereby reducing waiting time. 6. Over Processing The processing method may be another source of waste. In observing this type of waste, one often finds that maintenance and manufacturability are keys to eliminating it. If fixtures and machinery are well-maintained, they may require less labor on the part of the operator to produce a quality product. Regular preventative maintenance may also reduce defective pieces produced. When the principles of design for manufacture (DFM) are employed and manufacturability is taken into consideration in product design, processing waste can be reduced or eliminated before production even begins. 7. Defects Waste from product defects is not simply those items rejected by quality control before shipment, but actually causes other types of waste throughout the entire manufacturing process. · Waiting time is increased in subsequent processes, increasing costs and lead times  · Rework may be required to make the part usable, increasing labor costs  · Additional labor may be required for disassembly and reassembly  · Additional materials may be needed for replacement parts  · Sorting the defective from acceptable parts requires additional labor  · Scrapping the defective pieces wastes both the materials and the work already added  All of the above are serious, but pale in comparison to the results when customers discover defects. Not only are extra warranty and delivery costs incurred, but customer dissatisfaction may result in loss of future business and market share. To eliminate product defect waste, a system must be developed to identify the defects (or the conditions that cause the defects) so that anyone present may take corrective action. Without this preventive system in place, other time-saving efforts are futile.  There is no advantage in using a highly automated machine to make defective parts faster.

P&OM -  Production Processes P&OM - Production Processes Presentation Transcript

  • Production ProcessesProduction and Operations Management – Session 3
  • Production Process• Various activities and sub-activities, resources and skills coming together in synchronous fashion to convert an input into the final output by adding value.• Designed to align with customer demand• Designed to overcome process constraints (logistical, administrative, facility, quality)
  • Comparing the processes Do you expect any trends and patterns? Process Mass and Flow Batch ProjectInfrastructureCost andQualityManpowerManagementRole
  • Types of Production Processes
  • Comparing the processes Process Mass and Flow Batch ProjectInfrastructure Special- Special and General- Customized purpose general- purpose machinery machinery purpose machinery Least capital High Initial machinery Less capital intensive capital Capital intensive IntensiveCost and Almost Slight variance Inventory Variation dueQuality Constant Increased management, to uncertainty Setup Time transportationManpower Mostly Unskilled and Unskilled and Unskilled and unskilled skilled skilled skilledManagement High during Overseeing Managing Planning andRole design, low production variations in Supervision during lines demand-supply Multi-player production and production dynamics line dynamics
  • Choosing a Production process Jobbing Variety Mass and Batch Flow Process Project Production Volume
  • Some production processes “best practices” in pre-1980s world• You cannot have economies without scale (the more you make, the more you make)• Key metric is utilization (of machines, people) – more efficient utilization means better process• Assembly line and batch processing had proven extremely successful for more than 5 decades
  • A disruption . . .• Suddenly, Toyota came along and cut down manufacturing times by half• Pundits were highly skeptical• Focused on alignment with demand (Pull) and dedication of all resources to fulfill customer value (Flow)
  • Eight categories of waste Waste categories Possible SourcesOverproduction Ineffective planning, work allocation and schedulingTransportation Lack of reliable processesMotion Ineffective planning, work allocation and scheduling Inconsistent work methods Lack of workplace organizationInventory Ineffective planning, sequencing & schedulingWaiting Long setup time (for analysis and testing) Lack of workplace organizationOver-processing Ineffective planningDefects Lack of trainingUnused employee Ineffective staffing processesintellect Ineffective induction processes Wipro Confidential 9
  • Current State Value Stream
  • Key Principles - LikerContinuous improvement Go see yourself to understand thoroughly (Genchi Genbutsu) Make decisions slowly by consensus, thoroughly considering all options; implement rapidly Continuous organization learning thru Kaizen People & Partners Respect challenge & grow Grow leaders who live the philosophy Respect, develop and challenge your people and teams Respect, challenge and help your suppliers Process Eliminate Waste Create process flow to surface problems Use pull systems to avoid overproduction Level out the workload (heijunka) Stop when there is a quality problem (jidoka) Philosophy Standardize tasks for continuous improvement Use visual control so no problems are hidden Base management decisions on a Use only reliable, thoroughly tested technology long term philosophy 11 CONFIDENTIAL© Copyri
  • Key Principles People & Partners Respect challenge & grow Philosophy Grow leaders who live the philosophy Base management decisions on a long term Respect, develop and challenge your philosophy people and teams Respect, challenge and help your suppliers Process flow to surface Continuous learning problemsCreate process flow to surface problems Go see yourself to understand thoroughlyUse pull systems to avoid overproduction Make decisions slowly by consensus,Level out the workload thoroughly considering all options; implementStop when there is a quality problem rapidlyStandardize tasks for continuous improvement Continuous organization learning thru KaizenUse visual control so no problems are hiddenUse only reliable, thoroughly tested technology 12 CONFIDENTIAL© Copyri
  • Future State Value Stream
  • Goldratt - Theory of Constraints• A production process is only as good as its weakest link (the constraint)• Improving utilization in general may actual worsen the process (if that results in flooding the constraint)• Processes can only be improved by strengthening a constraint, one at a time