This document provides an overview of key concepts in manufacturing process selection and product-process design. It discusses the main types of manufacturing processes including conversion, fabrication, assembly, and testing. It also outlines the product-process design matrix which categorizes production approaches based on volume and variety. Additional topics covered include flexibility and variety management, process flow design, break-even analysis, virtual factories, and global manufacturing strategies. The goal is to help readers understand how to select the appropriate manufacturing processes for different product types and production environments.
In this presentation, we will discuss the concept and interrelation between product and process design and product life cycle. We will also talk about key decisions required in process design and evaluation of process design.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
In this presentation, we will discuss the concept and interrelation between product and process design and product life cycle. We will also talk about key decisions required in process design and evaluation of process design.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
04 process design_Operations ManagementBrent Weeks
A) What is process design?
B) What effects should process design have?
C) Process types – the volume–variety effect on process design
D) Detailed process design
A) What is strategy and what is operations strategy?
B) The ‘top-down’ and ‘bottom-up’ perspectives
C) The market requirements and operations resources perspectives
D) The process of operations strategy
A) What is operations management?
B) Operations management is important in all types of organization
C) The input–transformation–output process
D) The process hierarchy
E) Operations processes have different characteristics
F) The activities of operations management
Se
Operation
Analysis
Techniques:
Process Design
,Lean
Operations, JIT
Seminar 11
Process Strategy 7
Outline - Continued
Ø Production Technology
Ø Technology in Services
Ø Process Redesign
Harley-Davidson
▶ The only major U.S. motorcycle
company
▶ Emphasizes quality and lean
manufacturing
▶ Materials as Needed (MAN) system
▶ Many variations possible
▶ Tightly scheduled repetitive production
Process Flow Diagram
THE ASSEMBLY LINE
TESTING
28 tests
Oil tank work cell
Shocks and forks
Handlebars
Fender work cell
Air cleaners
Fluids and mufflers
Fuel tank work cell
Wheel work cell
Roller testing
Incoming parts
Arrive on a JIT
schedule from a
10-station work
cell in
Milwaukee
Engines and
transmissions
Frame tube
bending
Frame-building
work cells
Frame
machining
Hot-paint
frame painting
Crating
Learning Objectives
When you complete this section of the
seminar you should be able to:
7.1 Describe four process strategies
7.2 Compute crossover points for different
processes
7.3 Use the tools of process analysis
7.4 Describe customer interaction in service
processes
7.5 Identify recent advances in production
technology
Process Strategy
The objective is to create a process
to produce offerings that meet
customer requirements within cost
and other managerial constraints
Process Strategies
Ø How to produce a product or provide a service
that
§ Meets or exceeds customer requirements
§ Meets cost and managerial goals
Ø Has long term effects on
§ Efficiency and production flexibility
§ Costs and quality
Process, Volume, and Variety
Process Focus
projects, job shops
(machine, print,
hospitals,
restaurants)
Arnold Palmer
Hospital
Repetitive
(autos, motorcycles,
home appliances)
Harley-Davidson
Product Focus
(commercial baked goods,
steel, glass, beer)
Frito-Lay
High Variety
one or few units
per run,
(allows
customization)
Changes in
Modules
modest runs,
standardized
modules
Changes in
Attributes (such as
grade, quality, size,
thickness, etc.)
long runs only
Mass Customization
(difficult to achieve, but
huge rewards)
Dell Computer
Poor Strategy
(Both fixed and
variable costs
are high)
Low
Volume
Repetitive
Process
High
Volume
VolumeFigure 7.1
Va
ri
et
y
(f
le
xi
bi
lit
y)
Process Strategies
Four basic strategies
1. Process focus
2. Repetitive focus
3. Product focus
4. Mass customization
Within these basic strategies there are
many ways they may be implemented
Process Focus
Ø Facilities are organized around specific
activities or processes
Ø General purpose equipment and skilled
personnel
Ø High degree of product flexibility
Ø Typically high costs and low equipment
utilization
Ø Product flows may vary considerably making
planning and scheduling a challenge
Process Focus Many inputs
(surgeries, sick patients,
baby deliveries, emergencies)
Many different outputs
(uniquely treated patients)
Many departments and
ma.
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Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
In this webinar, we won't focus on the research methods for discovering user-needs. We will focus on synthesis of the needs we discover, communication and alignment tools, and how we operationalize addressing those needs.
Industry expert Scott Sehlhorst will:
• Introduce a taxonomy for user goals with real world examples
• Present the Onion Diagram, a tool for contextualizing task-level goals
• Illustrate how customer journey maps capture activity-level and task-level goals
• Demonstrate the best approach to selection and prioritization of user-goals to address
• Highlight the crucial benchmarks, observable changes, in ensuring fulfillment of customer needs
2. 2 OBJECTIVES The Product & Process Design framework Types of Manufacturing Processes The Product-Process design matrix The cost perspective of operations A Typology of Operations using the 4V’s Managing Flexibility and variety in operations Process Flow Design Global Product Design and Manufacturing
3. 3 Preliminary Design Product Planning & screening new ideas Concept Development & Business analysis The design methodology Evaluation and Improvement Prototyping and final design PRODUCT AND PROCESS DESIGN Processes that Design Products and Services Processes that Produce Products and Services Supply Network Design Layout and Flow Process Technology Job Design
4. 4 TYPES OF MANUFACTURING PROCESSES Conversion (ex. Iron to steel) Fabrication (ex. Cloth to clothes) Assembly (ex. Parts to components) Testing (ex. For quality of products)
5. 5 THE PRODUCT-PROCESS DESIGN MATRIX Job shop (ex. Copy center making a single copy of a student term paper) Batch shop (ex. Copy center making 10,000 copies of an ad piece for a business) Assembly Line (ex. Automobile manufacturer) Continuous Flow (ex. Petroleum manufacturer)
6. 6 Few Major Products, Higher Volume High Volume, High Standard- ization Low Volume, One of a Kind Multiple Products, Low Volume Flexibility (High) Unit Cost (High) I. Job Shop Commercial Printer French Restaurant II. Batch Heavy Equipment III. Assembly Line Automobile Assembly Burger King IV. Continuous Flow Sugar Refinery Flexibility (Low) Unit Cost (Low) These are the major stages of product and process life cycles
7. 7 PROJECT PROCESSES One-off, complex, large scale, high work content “products” Speciallymade, every one customized Defined start and finish: time, quality and cost objectives Many different skills have to be coordinated
8. 8 THE JOB SHOP Very small quantities: “one-offs”, or only a few required Speciallymade. High variety, low repetition. “Stranger products” Skill requirements are usually very broad Skilled jobber, or team of jobbers complete whole product
9. 9 BATCH PROCESSES Higher volumes and lower variety than for jobbing Standard products, repeating demand. But can make specials Specialized, narrower skills Set-ups (changeovers) at each stage of production
10. 10 ASSEMBLY LINE/MASS PRODUCSTION PROCESSES Higher volumes than Batch Standard, repeat products (“runners”) Low and/or narrow skills No set-ups, or almost instantaneous ones
11. 11 CONTINUOUS PROCESS Extremely high volumes and low variety: often single product Standard, repeat products (“runners”) Highly capital-intensive and automated Few changeovers required Difficult and expensive to start and stop the process
12. 12 MANUFACTURING PROCESS TYPES SERVICE PROCESS TYPES High High Project Professional service Jobbing Service shop Batch Variety Variety Mass Mass service Contin- -uous Low Low High Volume Low High Volume Low
13. 13 THE COST PERSPECTIVE The cost of producing products and services is obviously influenced by many factors such as input costs, but two important sets are….. The 4 V’s Volume Variety Variation Visibility The internal performance of the operation at Quality Speed Dependability Flexibility
14. 14 A TYPOLOGY OF OPERATIONS IMPLICATIONS IMPLICATIONS High repeatability Specialization Systemization Capital intensive Low unit cost Low repetition Each staff member performs more of job Less systemization High unit costs Volume High Low Well defined Routine Standardized Regular Low unit costs Flexible Complex Match customer needs High unit cost Variety Low High Stable Routine Predictable High utilization Low unit costs Changing capacity Anticipation Flexibility In touch with demand High unit cost Variation in demand Low High Time lag between production and consumption Standardized Low contact skills High staff utilization Centralization Low unit costs Short waiting tolerance Satisfaction governed by customer perception Customer contact skills needed Received variety is high High unit cost Visibility High Low
15. 15 FLEXIBILITY Flexibility has several distinct meanings but is always associated with an operation’s ability to change Change what ? The products and services it brings to the market – Product/service flexibility The mix of products and services it produces at any one time – Mix flexibility The volume of products and services it produces –Volume flexibility The delivery time of its products and services –Delivery flexibility
16. 16 VARIETY Marketing Viewpoint Customer Choice Competitive Confusion Duplication Training Difficulties High Advertising Costs )
17. 17 VARIETY Operations Viewpoint Shorter Production Runs Higher Costs Greater Complexity More Difficulty in Specialising Equipment People
18. 18 REMOVAL OF ROBOTS AT IBM, GREENOCK In 1986 IBM at Greenock spent £6 million setting up a robotic assembly line for PC monitors. Yet by 1993, the company had decided to dispense with the robot and increase line manning. Before 1993 some 25 assembly staff, with their robots made 550 monitors per shift. Afterwards, 50 assembly workers made 700. The reasons for the change were the rapid pace of technological development and the different safety standards that had been imposed in different countries. Both factors caused the product variety to increase and the line was not flexible enough to cope. To alter the product on the line, it had to be shut down and all the tools and holding mechanisms had to be changed. The remaining robots packed the items in cartons for shipping.
19. 19 VARIETY MANAGEMENT Reduce The Unnecessary Control The Necessary Identification Classification : Rational Grouping & Coding & Arrangement Simplification : The Reduction of Unnecessary Variety Standardisation: The Control of Necessary Variety Specialisation: The Concentration of Effort where Special Knowledge is available (DVP-15)
20. 20 PROCESS FLOW DESIGN A process flow design can be defined as a mapping of the specific processes that raw materials, parts, and subassemblies follow as they move through a plant The most common tools to conduct a process flow design include assembly drawings, assembly charts, and operation and route sheets
22. 22 EXAMPLE: PROCESS FLOW CHART Material Received from Supplier No, Continue… Inspect Material for Defects Defects found? Yes Return to Supplier for Credit
23. 23 BREAK-EVEN ANALYSIS A standard approach to choosing among alternative processes or equipment Model seeks to determine the point in units produced (and sold) where we will start making profit on the process or equipment Model seeks to determine the point in units produced (and sold) where total revenue and total cost are equal
24. 24 BREAK-EVEN ANALYSIS (CONTINUED) Break-even Demand= Purchase cost of process or equipment Price per unit - Cost per unit or Total fixed costs of process or equipment Unit price to customer - Variable costs per unit This formula can be used to find any of its components algebraically if the other parameters are known
25. 25 BREAK-EVEN ANALYSIS (CONTINUED) Example: Suppose you want to purchase a new computer that will cost $5,000. It will be used to process written orders from customers who will pay $25 each for the service. The cost of labor, electricity and the form used to place the order is $5 per customer. How many customers will we need to serve to permit the total revenue to break-even with our costs? Break-even Demand: = Total fixed costs of process or equip. Unit price to customer – Variable costs =5,000/(25-5) =250 customers
26. 26 VIRTUAL FACTORY A virtual factory can be defined as a manufacturing operation where activities are carried out not in one central plant, but in multiple locations by suppliers and partner firms as part of a strategic alliance
27. 27 GLOBAL PRODUCT DESIGN AND MANUFACTURING STRATEGIES Joint Ventures Global Product Design Strategy
28. References: 1) ‘Operations Management’ By Nigel Slack et al. 2e2) ‘Operations Management for Competitive Advantage’ By Chase, Jacobs & Aquilano, 10e HOPE YOU ENJOYED THE CLASS. QUESTIONS PLEASE THANK YOU