The document discusses operation system design and planning. It covers key aspects like the life cycle of an operation system, product/service and process technology diffusion, major classifications of manufacturing and service processes, equipment selection considerations, types of facility layouts, and operation planning methods. The goal of operation system design is to permit production of goods and services at desired quality, volumes, and cost over the life cycle through integration of product/service delivery with facilities and process technologies.

1. OPERATION SYSTEM DESIGN and PLANNING

2. Operation System Design The Integration of Product and Service Delivery With the Facilities and Process Technologies Over the Life Cycle of the Operations System , Which Permits Production of Goods and Service at Desired Quality, Volumes, and Cost

3. Framework Marketing Strategy Capacity Strategy Organization Design Operation System Design OS Life Cycle OS Characteristics Process Technology Diffusion

4. Operation System Life Cycle 1. Birth of the Operation System 2. Product/Service Design and Process Technology Selection 3. Design of Operation System 4. Star up of the Operation System 5. Growth of Volume 6. Stable State 7. Decline and Renewal of the System

5. Product/Service Start-up Growth Stable Decline Volume Low Increasing High Declining Variety Unique Inc.Standard Emergence High Standard Dom. Design Process Technology Organization Project Small Batch Line flow Line flow Job shop Assembly Assembly I nnovation High Medium Medium Low Integration Low Medium Medium High I ndustry Structure Small Consolidation Few large Survivor competitor and fallout competitor Competitive Flexibility Quality and Price(cost) Price(cost) Priority Flexibility Delivery Product/Service and Process Technology Life Cycles

6. Operation System 1. Classical Project Job Shop Flow Shop 2. Emerging Variable Production Line Manufacturing Cells FMS CIM

7. Equipment and Physical Layout Characteristics Project Job Shop Flow Shop Size of Facility Varies Small Large Process Flow Circumference Num, Pattern Rigid Equipment General General Specialized Capital Ints. Varies Low High Capital Add. Incremental Small Large Chunk Speed of Process Varies Slow Fast Control Worker Worker & Process Design Tech. Change Slow Average Fast

8. Direct Labor and Work Force Characteristics Project Job Shop Flow Shop Labor value added High Average Very Low Job content scope Large Average Small Skill level High Average Low Wage rate High Average Low Worker training V. High High Low

9. Material and Information Control Characteristics Project Job Shop Flow Shop Material Requirement Varies Unpredictable Predictable Vertical Integration None Limited Back&Forwd Inv. Raw Material None Small Large WIP Large Large Small Finished Goods None Small High QC Responsibility D. Labor D. labor QC Specialist Prod/Serv, Information V. High High Low Scheduling Uncertain Changes Inflexible

10. Process Management Characteristic Project Job Shop Flow Shop Challenges Estimating Lab.Utilization Avoid Downtime Sequencing Debottlenecking Time Expansion Pacing Learning Curve Cost Minimizing Tools PERT/ Load Chart Line Balancing CPM Optimization

11. Variable Production Line Dedicated High Volume Lines That Are Reconfigured to Permit Some Process Variation and Thus Several Different Products or Service

12. Manufacturing Cell (MC) Dedicated Subset of Manufacturing System Designed to Process Part Families or Product Group Economies of Set-up Employee Learning Reduced WIP Shorter Throughput Time Improved Responsiveness to Customer

13. Flexible Manufacturing System (FMS) Integrates and Enhances the Flexibility of Manufacturing Cell Through the Use of Centralized Control Systems Flexibility Approaching Job Shop With Material Handling Capability of a Flow Lines

14. Computer Integrated Manufacturing (CIM) Application of a computer system to link several separated information systems and technologies at different functional level Simplify, Automate and Integrate

15. Stage Toward A CIM Batch/Lot Process MRPII/SPC JIT &MC Focused factory Stable Flow FMS CAD/CAM Robotics AMH/GT CIM Information System Integration Traditional Mfg. Variable Line Stage 3 Stage 1 Stage 2 Stage 4 To CIM Process Technology Process Control System

16. Operation Flexibility Ability to Respond the Changes in Customer Requirements Product/Service Process Technology *Volume * Changeover *Mix * Scheduling *Modification * Innovation

17. Product/Service Flexibility Volume Ability to respond quickly to changes in the amount of particular product or service that is required Mix Ability to react quickly to changes in mix or proportion of products of a product family that are produced Modification Ability to incorporate changes in product characteristics and to develop and produce newly designed product

18. Process Flexibility Allows the operation manager to deploy or re-deploy resources in response to variations in products/services, availability of resources, or process technology 1. Changeover Flexibility 2. Scheduling Flexibility 3. Innovation Flexibility

19. Process Flexibility Changeover Flexibility Ability to respond rapidly to different production set-ups required for various products Scheduling Flexibility Ability to vary the routing, sequence, or production lot-sizes to accommodate required production volume Innovation Flexibility Ability to define and implement new technologies in production processes with minimal disruption

20. Characteristics of Process Flexibility Type of Flexibility Respond To Subcategories Changeover Product/service Product/service volume ( market driven) Product/service range Product/service mix Product/service modification Scheduling Availability of Material resources Equipment (resources driven) Labor Innovation Product/service Process Technology Process Technology Process Control or Information Technology (technology driven)

21. Product/Service -Process Technology Continuum

22. Focus A Clear and sharply defined set of products, technologies, volumes and markets Process Focus Product/Service Focus

23. Product/Service -Process Technology Diffusion Process Product/Service Volume Technology Low High Project Job Shop Disconnected Line Connected Line Continuous Enhanced Standardization (Right lateral Movement) Flexible Processes (Upward Movement) Enhanced Process Flow( Downward Movement) Modular Structure/ Variable Processing Line (Left lateral Movement )

24. Operation System Decision Making Position Major Technology Choice Equipment Selection & Specification and Layout Design Operation Planning

25. Position 1. Competitive Positioning on the Product/Service-Process Technology Continuum 2. Definition of the Position on the Continuum 3. Identification of the Direction and Momentum of Movement Which Are Projected a. Right Lateral Movement b. Left Lateral Movement c. Upward Movement d. Downward Movement

26. Major Technology Choice Selecting the Process Technology of the Manufacturing or Service Operation, using: Classification Of Manufacturing Processes Classification Of Service Processes Selecting the Supporting Information System

27. Classification Of Manufacturing Processes 1. Processes for Changing Physical Properties 2. Processes for Changing the Shape of Material 3. Processes for Machining Parts to a Fixed Dimension 4. Processes for Obtaining a Surface Finish 5. Processes for Joining Parts or Materials

28. Classification Of Service Processes 1. Process for relocating goods 2. Process for storing goods 3. Process for exchanging items 4. Process for physical transformation 5. Process for physiological transformation 6. Process for information transformation

29. Equipment Selection & Specification And Layout Design Selecting Equipment to be used, a. General-purpose or Specialized Equipment b. Material Handling System Allocating Available Facilities (Layout Design)

30. Equipment Selection Alternatives General Purpose Specialized Cost Low High Operator skill&control High , more control Low, less control Output rate Low-human pace High-machine pace Setup time Lower-problem pre- High-problem ran- dictable &controllable dom & highly tech. Maintenance Cost Low-lower skill req’ed High Product/service Based on human High-based on Quality control machine accuracy WIP High Low Absolescence Slower High

31. Material Handling 1. Increasing Speed and Precision 2. Maximizing the Use of Space and Equipment 3. Increasing Safety and Working Condition 4. Reducing Damage 5. Increasing Control

32. Principles of Material Handling 1 . Minimize the Number of Material Moves 2. Maximize the Unit Load Handled 3. Maximized Safety of Material Handling Equipment 4. Simplify the Material Handling Process 5. Maximize Pace Utilization 6. Integrate Storage and Handling System 7. Integrate Materials and Information Flows 8. Minimize Human Effort 9. Design for Improved Operability, Reliability, Maintainability and Flexibility

33. Types of Layout A. Traditional Layout 1. Fix Position Layout 2. Process Layout 3. Product Layout B. Automated Layout 4. Cellular Layout 5. Modular Layout

34. Operation Planning Creating Schedule Assessing That Schedule Through the Appropriate Capacity Evaluation Method

35. OPERATION PLANNING

36. Vertical Linkages Corporate Strategy Business Strategy Functional Strategy Operation/Production Management

37. Operation Planning Cycle Sales Target Operation Target Operation Schedule Material Machine Worker Operation Plan Shop Floor Operation Evaluation

38. Operation Planning System Input : Sales Target Output : Operation Schedule Method: Traditional, MRP or JIT Performance Criteria: QCDFS

39. Performance Criteria Quality Cost Delivery Flexibility Safety

40. Example of Operation Objective Quality This Year 5 Next Year Competitor Customer Satisfaction 75 % 85 % 75 % Scrap and Reject 15 % 5 % 10 % Warranty ( % COGS) 1 % 0.5 % 1% Cost COGM ( % COGS ) 55 % 45 % 50% ITO 41 x 52 x 50 x

41. Example of Operation Objective Delivery This Year 5 Next Year Competitor Fill Rate 90% 95% 95% Lead Time (week) 3 1 1 Flexibility Time to Introduce New Product 10 month 6 month 8 month Time to Change Over Capacity 3 month 3 month 3 month

42. Operation Planning Method Traditional MRP JIT

43. Traditional Push Method Statistical and Optimization Partial Approach Flexible

44. MRP Pull Method Time Phasing Logical Approach Integrated Approach Information Based

45. JIT Pull Method Time Phasing Elimination Waste Approach Integrated Approach Cultural Based