3. Production…
“It is the step-by-step conversion of one form of
material into another form through chemical or
mechanical process to create or enhance the utility
of the product to the user”
9. Model of production system…
Supplier
Input
Conversion/
Creation
process
Output
Customer
Men,
Machine,
Money &
Method
Goods &
Services
Who control/monitor this?
10. Goods Services
Tangible Intangible
Can be stored Cannot be stored
Low customer contact High customer contact
Longer response time Shorter response time
Production may be separate
from consumption
Produced & consumed at
same place
Ownership can be transfer ?
Some aspects of quality is
measurable
Quality of service is difficult
to measure
11. Objectives of pm…
Right quality
Right quantity
Optimal time
Optimal cost
12. Classifications of production system…
Output / Product Variety
Production
Volume
Continuous
Production
Mass Production
Batch Production
Job Shop Production
13. Continuous production…
Production facilities are arranged as per the
sequence of production operations
The items are made to flow through the sequence
of operations through material handling devices
such as conveyors, transfer devices
chemical and petrochemical industries
14. Characteristics…
Material handling is fully automated.
Process follows a predetermined sequence of
operations.
Planning and scheduling is a routine action
Dedicated plant and equipment with zero
flexibility
15. Advantages..
Standardization of product and process sequence.
Higher rate of production with reduced cycle
time.
Manpower is not required for material handling
as it is completely automatic.
Person with limited skills can be used on the
production line.
Unit cost is lower due to high volume of
production.
17. Mass production…
Manufacture of discrete parts or assemblies
using a continuous process
The technique was first implemented by US
automobile pioneer Henry Ford in 1908, for the
manufacture of the Model T Ford automobile.
18. Characteristics…
Dedicated special purpose machines having
higher production capacities and output rates.
Large volume of products.
Shorter cycle time of production.
Flow of materials, components and parts is
continuous
Production planning and control is easy.
Material handling can be completely automatic.
19. Advantages…
Higher rate of production with reduced cycle
time.
Less skilled operators are required.
Low process inventory.
Manufacturing cost per unit is low.
20. Limitations…
Breakdown of one machine will stop an entire
production line.
Line layout needs major change with the changes
in the product design.
High investment in production facilities
21. Batch production…
It is the manufacturing technique of creating a
group of components at a workstation before
moving the group to the next step in production
It is characterized by the manufacture of limited
number of products produced at regular intervals
Eg:-beverages, pharmaceutical products, paint,
fertilizer, and cement
22. Advantages…
Better utilization of plant and machinery.
Promotes functional specialization.
Cost per unit is lower as compared to job order
production.
Lower investment in plant and machinery.
Flexibility to accommodate and process number
of products.
Job satisfaction exists for operators
23. Limitations…
Material handling is complex because of irregular
and longer flows.
Production planning and control is complex
Higher set up costs due to frequent changes in
set up.
24. Job shop production…
Manufacturing of one or few quantity of products
designed and produced as per the specification of
customers within prefixed time and cost
The distinguishing feature of this is low volume
and high variety of products
25. Characteristics…
High variety of products and low volume.
Highly skilled operators who can take up each
job as a challenge because of uniqueness.
Large inventory of materials, tools, parts.
Detailed planning is essential for sequencing the
requirements of each product, capacities for each
work centre and order priorities
26. Limitations…
Higher cost due to frequent set up changes.
Production planning is complicated.
Larger space requirements
27. Operations functions…
Location of facilities
Plant layouts and material handling
Product design
Process design
Production and planning control
Quality control
Materials management
Maintenance management.
28. 1. Location facilities…
It’s a geographical factor
3M have their corporate activity including R & D
in Texas
BMW assembles the Z3 sports car in South
Carolina
What made them to choose it?
29. Texas…
Place for high intellectual capital
Approximately $4.0 billion of federal R&D funds
are spent each year in Texas
One of the top 50 states in terms of the amount of
federal R&D dollars received annually
US geological survey
The Southern Plains Agricultural Research Center
The Brazos Field Research Station is a unit of the
Columbia Environmental Research Center…etc
30. Cond…
Proximity of customer
Business climate
Total cost
Infrastructure
Quality of labour
Competitive advantage
Political issues/involvement
"We deliberately chose a country within the
EU with a politically and economically
stable climate ...the good relationship we
have with the NFIA (Netherlands Foreign
Investment Agency)and the Dutch
government is very much appreciated and
respected by Eastman!"
Godefroy A. Motte, Vice President and
Managing Director, Eastman Chemical
(EMEA)
31. 2. Plant Layout & Material Handling
“Plant layout is a plan of an optimum
arrangement of facilities including personnel,
operating equipment, storage space, material
handling equipments and all other supporting
services along with the design of best structure to
contain all these facilities”.
32. 3. Product Design…
Conversion of idea into reality
It’s a survival and growth strategy
Need identification
Marketing
Product development
Manufacturing
33. 4, Process design…
Process design is a macroscopic decision-making
of an overall process route for converting the raw
material into finished goods
selection of a process, choice of technology,
process flow analysis
34. 5. Production Planning & Controlling
Planning - what to do, how to do it, when to do
it and who is to do it. Planning bridges the gap
from where we are, to where we want to go
Scheduling - determines the programme for the
operations. Scheduling may be defined as ‘the
fixation of time and date for each operation’ as
well as it determines the sequence of operations
35. Cond…
Aggregate planning
Master Production Schedule
Materials Requirement Planning
Capacity Planning
Scheduling & Control
36. 6. Quality Control…
‘a system that is used to maintain a desired
level of quality in a product or service’.
It is a systematic control of various factors that
affect the quality of the product
Quality control aims at prevention of defects at
the source, relies on effective feed back system
and corrective action procedure
37. 7. Maintenance Management…
To achieve minimum breakdown and to keep the
plant in good working condition at the lowest
possible cost.
To keep the machines and other facilities in such
a condition that permits them to be used at their
optimal capacity without interruption.
To ensure the availability of the machines,
buildings and services required by other sections
of the factory for the performance of their
functions at optimal return on investment
39. Significance of productivity
Importance towards economic growth &
development
Three sources of growth
1. Traditional source of growth
2. Institutional innovation
3. Technological progress
40. Impact of productivity
Large supply of consumer goods and capital
goods
High earnings
Strengthening the economic foundation of human
well being
Improvement in working and living conditions
42. Measurement of productivity
productivity measurement is the quantification of
both the output and input resources of a
productive system
Problem here is : input – aggregate one
Traditional method: index-number approach
- A measure or index of aggregate output
divided by the observed quantity of a single input
thus became the earliest approach to productivity
measurement
44. Improve productivity…
Increase output for the same input
Decreased input for the same output
Proportionate increase in the output is more than
the proportionate increase in the input
Proportionate decrease in the input is more than
the proportionate increase in the output
Simultaneous increase in the output with
decrease in the input
45.
46. Evolutions of OM
From craft or job shops to conventional mass
production and then to flexible design and
production systems
In two directions
1. Variety in Product design
2. Use of automation
47. Cond…
Craft production
- non standard input/output/process
- high skilled labour
- produced unique product
Later 1800’s – economies of scale
- standard input/output/process
- less skilled labour
- less production cost
- similar kind of product
48. Cond…
Difficult to change
the experience of Ford and its Model T
production facilities in the 1920s to demonstrate
how a company can face bankruptcy by pushing
process rationalization and scale economies too
far -- for example
NIRMA washing powder
49. Cond..
Moved from Economies of scale to Economies of
scope
- developing interchangeable components
- dividing and specializing labor
- automating tasks
- Use of CAD/CAM, FMS, CIM
- Production cost is reduced
50. Lean manufacturing…
Lean is about doing more with less
Taiichi Ohno
focused on eliminating waste and empowering
workers, reduced inventory and improved
productivity
51. 10 rules of lean production…
1. Eliminate waste
2. Minimize inventory
3. Maximize flow
4. Pull production from customer demand
5. Meet customer requirements
6. Do it right the first time
7. Empower workers
8. Design for rapid changeover
9. Partner with suppliers
10. Create a culture of continuous improvement (Kaizen)
52. Types of waste…
Defects
Waiting
Over production
Transportation
Inventory
Complexity
Unused creativity
54. Definition…
Strategy specifying how the firm will employ its production
capabilities to support its corporate strategy.
Operations strategy is the total pattern of decisions
which shape the long-term capabilities of any type of
operations and their contribution to the overall strategy,
through the reconciliation of market requirements with
operations resources.
Operations strategy is the total patterns of decisions and
actions which set the role, objectives and activities of the
operation so that they contribute to, and support, the
organisation’s business strategy
55. Order – Winners & Qualifiers
To be present in the
market
Quality
Price
Reputation
Reliability
To be a winner in
the market
Best Quality
Low Price
Consistant Reliability
Timely delivery
57. Dimensions of Quality
Performance
Does the product or service do what it is
supposed to do, within its defined tolerances?
Features
Does the product or services possess all of the
features specified, or required for its intended
purpose?
Reliability
Will the product consistently perform within
specifications?
58. Cond…
Durability
How long will the product perform or last, and
under what conditions?
Serviceability
Is the product relatively easy to maintain and
repair?
Aesthetics
The way a product looks is important to end-
users
59. Cond…
Perception
Perception is reality. The product or service
may possess adequate or even superior dimensions
of quality, but still fall victim to negative customer
or public perceptions
61. Price & Cost
producing high volumes of standardized products
in hopes of taking advantage of economies of
scale and experience curve effects
Involves Manufacturing Cost
Running cost
Service cost
Value added
62. Flexibility…
Customization
Variety
Volume Flexibility
Material quality - ability to cope with incoming
materials of varying quality.
New product - ability to cope with the
introduction of new products.
Modification - ability to modify existing products.
63. Developing
Operations
Strategy…
Corporate Mission
Product/Service Plan
Competitive Priorities
Cost, Time, Quality,
and Flexibility
Elements of Operations Strategy
• Positioning the Production System
• Product/Service plans
• Outsourcing Plans
• Process and technology Plans
• Strategic allocation of Resources
• Facility Plans: Capacity, Location, and
Layout
Business Strategy
64. Positioning the Production System
Select the type of product design
Standard
Custom
Select the type of production processing system
Product focused
Process focused
Select the type of finished-goods inventory policy
Produce-to-stock
Produce-to-order
65. Product/Service Plans
As a product is designed, all the detailed
characteristics of the product are established.
Each product characteristic directly
affects how the product can be made.
How the product is made determines
the design of the production system.
66. Outsourcing Plans
Outsourcing refers to hiring out or subcontracting some of
the work that a company needs to do.
This strategy is being used more and more as companies
strive to operate more efficiently.
Outsourcing has many advantages and disadvantages.
Companies try to determine the best level of out-sourcing
to achieve their operations & business goals.
More outsourcing requires a company to have less
equipment, fewer employees, and a smaller facility.
67. Cond…
A company might outsource any of the following
manufacturing related functions:
Designing the product
Purchasing the basic raw materials
Processing the subcomponents, subassemblies, major
assemblies, and finished product
Distributing the product
68. Cond…
Many companies even outsource some service
functions such as:
Payroll
Billing
Order processing
Developing/maintaining a website
Employee recruitment
Facility maintenance
69. Strategic Allocation of Resources
For most companies, the vast majority of the firm’s
resources are used in production/operations.
Some or all of these resources are limited.
The resources must be allocated to products,
services, projects, or profit opportunities in ways
that maximize the achievement of the operations
objectives.
70. Facility Plans
How to provide the long-range capacity to
produce the firm’s products/services is a critical
strategic decision.
The location of a new facility may need to be
decided.
The internal arrangement (layout) of workers,
equipment, and functional areas within a facility
affects the ability to provide the desired volume,
quality, and cost of products/services.
72. Case
KMART & WALL MART
1987 Kmart was clearly dominating the discount
chain race
sales of $25.63 billion to Wal-Mart’s $15.96
billion – Twice as many as supply chain/stores
January 1991, Wal-Mart had overtaken Kmart,
with sales of $32.6 billion to Kmart’s sales of
$29.7 billion
At this stage WALL MART had 1721 to Kmart’s
2330
73. Cond…
dominant discount chain, with sales of $188.1
billion to Kmart’s $36.4 billion
During 1995 Kmart’s market share declined from
34.5 percent to 22.7 percent, while Wal-Mart’s
increased from 20.1 percent to 41.6 percent
Reason…Guess?
74. Reason for Success…
Invest heavily in national television campaigns
using high-profile spokespeople
invested heavily in operations in an effort to
lower costs
Wal-Mart developed a companywide computer
system to link cash registers to headquarters,
Further, the use of scanners at the checkout
stations eliminated the need for price checks
75. Cond…
Kmart adopted a new strategy to compete with
Wal-Mart—merging with Sears, Roebuck & Co.
in March 2005 to gain potential synergies
through cross-selling and other retail sales
techniques
Nothing was worked out
By year-end 2007, Wal-Mart rang up sales of
$379 billion while Sears sales were $51 billion
Wal-Mart had 7262 while Sears stayed at 3800
76. Strategy & Competetiveness
Competitiveness for a nation is the degree to
which it can, under free and fair market
conditions, produce goods and services that meet
the test of international markets
77. Factors Affecting Today’s
Global Business Conditions
Reality of global competition
Quality, customer service, and cost challenges
Rapid expansion of advanced technologies
Continued growth of the service sector
Scarcity of operations resources
Social responsibility issues
78. Reality of Global Competition
Changing nature of world business
Multinational companies
Strategic alliances and production sharing
Fluctuation of international financial conditions
79. Changing Nature of World Business
The US gross domestic product (GDP) is, at $10
trillion, the largest in the world.
Companies all over the globe are aggressively
exporting their products/services to the US
Many US companies are targeting foreign
markets to shore up profits.
The global economy that interconnects the
economies of all nations has been termed the
global village.
One of the most important new markets is China.
80. Strategic Alliances
Strategic alliances are joint ventures among
international companies to exploit global business
opportunities.
Alliances are often motivated by
Product or production technology
Market access
Production capability
Pooling of capital
81. Strategic Alliances
General Motors (US) &
Kia Motor Corp. (S.K.)
Kia might help sell
and market GM cars
in South Korea
Renault (France) &
City of Moscow
Manufacture 100,000
vehicles annually
near Moscow
Sino Aerospace Invest-
ment Corp. (Taiwan) &
Swearingen Aircraft (US)
Forming Texas-based
Sino Swearingen
Aircraft Co.
82. Strategic Alliances
Japanese companies have long practiced
keiretsu, the linking of companies into industrial
groups.
A financial keiretsu links companies together with
cross-holding of shares, sales and purchases within
the group, and consultation.
A production keiretsu is a web of interlocking
relationships between a big manufacturer (Toyota)
and its suppliers.
83. Production Sharing
Production sharing means that a product might
be designed and financed in one country, its
materials produced in other countries, assembled
in another country, and sold in yet other
countries.
The country that is the highest-quality, lowest-
cost producer for a particular activity would
perform that portion of the production of the
product.
84. Production Sharing
The Mercury Capri automobile is an example:
Designed in Italy
most of its components made in Japan
assembled in Australia
sold in the U.S
NOKIA
85. Pros and Cons of Globalization
Pros (Pluses)
Productivity grows more quickly (living standards
can go up faster)
Global competition and cheap imports keep a lid on
prices
Open economy spurs innovation (with fresh ideas
from abroad)
Export jobs often pay more than other jobs
US has more access to foreign investment (keeps
interest rates low)
86. Pros and Cons of Globalization
Cons (Minuses)
Jobs lost due to imports or production shifts
abroad
Most displaced workers find new jobs that pay
less
Workers face pay-cuts demands from
employers
Service and white-collar jobs are increasingly
vulnerable
87. International Financial Conditions
International financial conditions are complex
due to:
inflation
fluctuating currency exchange rates
turbulent interest rates
volatility of international stock markets
huge national debts of some countries
88. International Financial Conditions
The Dollar Versus the Yen and the Mark
Year Yen per Dollar Mark per
Dollar
1975 305 2.7
1980 215 2.0
1985 210 2.4
1990 135 1.6
1995 85 1.4
2000 108 2.2
89. International Financial Conditions
Example of Currency Exchange Rate Changes
A product produced and sold in the US for $1 would
have sold in Japan for 135 yen in 1990 and 85 yen in
1995, a price decrease of 37%.
A product produced and sold in Japan for 135 yen in
1990 and sold for $1 in the US would have sold in the
US for $1.57 in 1995, a 57% price increase.
90. International Financial Conditions
Due, in part, to the fall in the value of the dollar
between 1975 and 1995, the following occurred:
Prices of US products/services abroad fell and demand
increased
Japan and other countries built factories in US
Japanese manufacturers moved upscale toward higher
priced products
91. Quality, Service, and Cost Challenges
Quality
The goal of adequate quality must be replaced with
the objective of perfect product and service quality.
The entire corporate culture must be redirected and
committed to the ideal of perfect quality.
All employees must be empowered to act.
A commitment to continuous improvement has to be
organization-wide.
92. Quality, Service, and Cost Challenges
Customer Service
Companies must quickly develop innovative products
and respond quickly to customers’ needs.
Organizational structures must be made more
horizontal to quickly accommodate change.
Multidisciplined teams must have decision-making
authority, responding better to the marketplace.
Large, unwieldy companies are spinning off whole
business units making them autonomous businesses
that can compete with small, aggressive competitors.
Agilent Technologies spun out of Hewlett-Packard in
1999, formed from HP's former test-and-
measurement equipment division
93. Quality, Service, and Cost Challenges
Cost
Cost-cutting measures being used
include:
Moving production to low-labor-cost countries
Negotiating lower labor rates with unions and
workers
Automating processes to reduce the amount of
labor needed, particularly processes that are
labor intensive.
94. Advanced Technologies
The use of automation is one of the most far-
reaching developments to affect manufacturing
and services in the past century.
The initial cost of these assets is high.
The benefits go far beyond a reduction in labor
costs.
Increased product/service quality
Reduced scrap and material costs
Faster responses to customer needs
Faster introduction of new products and services
95. Advanced Production Technology
Computer-aided design (CAD) - allows engineers to design
products directly on computer terminals
Computer-aided manufacturing (CAM) - translates CAD
information into machinery instructions
Flexible manufacturing systems (FMS) - clusters of
automated machinery produce a variety of products
Automated storage & retrieval systems (ASRS) - computer-
controlled warehouses
Automatic identification systems (AIS) - data is “read” into
computers using bar coding and the like
96. Continued Growth of Service Sector
A robust service sector helps support the
manufacturing sector.
There is much opportunity for quality
improvement in US service firms.
Many operations managers are being employed
in services.
Planning, analyzing, and controlling approaches
from manufacturing are being adapted to service
systems.
The US service sector, like the manufacturing
sector, must streamline and improve operations
if it is to survive.
97. Scarcity of Operations Resources
Raw materials like titanium, nickel, coal, natural
gas, water, and petroleum products are
periodically unavailable or in short supply.
A shortage of any necessary input to a conversion
subsystem, including skilled personnel, can be a
challenge for an operations manager.
An important issue in the formation of business
strategy is how to allocate scarce resources
among business opportunities.
98. Social-Responsibility Issues
Corporate attitudes are evolving from doing what
companies have a legal right to do, to doing what
is right.
Factors influencing this evolution include:
Consumer attitude -- Consumers are expressing their
likes/dislikes by such means as stockholder
meetings, liability suits, and buying preferences.
Self-interests -- Companies realize that profits will be
greater if they act responsibly.
100. Social-Responsibility Issues
Environmental Impact
Concerns about the global environment include:
Landfill waste reduction
Recycling
Energy conservation
Chemical spills
Acid rain
Radioactive waste disposal
… and more
101. Social-Responsibility Issues
Environmental Impact
There is a need for standardizing government
regulations of the environment.
Otherwise, companies will gravitate to the less-
regulated countries.
The International Organization for Standardization
has developed a set of environmental guidelines
called ISO 14000.
102. Social-Responsibility Issues
Product-Safety Impact
Harm to people or animals that results from
poor product design can:
Damage a company’s reputation
Require a large expense to remedy
Cause governments to impose more regulations
103. Social-Responsibility Issues
Employee Impact
Employee benefits and policies include:
Safety and health programs
Fair hiring and promotion practices
Family leave
Health care
Retirement benefits
Educational assistance
… and more
104. Linking Operations and Marketing
Strategies
Operations Strategy
Product-focused
Make-to-stock
Standardized products
High volume
Marketing Strategy
Low production cost
Fast delivery of products
Quality
Example: TV sets
109. organization’s business strategy
set of objectives, plans, and policies for the
organization to compete successfully
The business strategy specifies what an
organization’s competitive advantage will be and
how this advantage will be achieved and
sustained markets
111. Cond…
Vision statements are used to express the
organization’s values and aspirations
Mission statements express the organization’s
purpose or reason for existence
112. COCA-COLA COMPANY’S MISSION
STATEMENT
We exist to create value for our share owners on a long-term basis by building a
business that enhances the Coca-Cola Company’s trademarks. This also is our ultimate
commitment.
As the world’s largest beverage company, we refresh the world. We do this by
developing superior soft drinks, both carbonated and noncarbonated, and profitable
nonalcoholic beverage systems that create value for our Company, our bottling partners and
our customers.
In creating value, we succeed or fail based on our ability to perform as steward of
several key assets:
Coca-Cola, the world’s most powerful trademark, and other highly valuable
trademarks.
The world’s most effective and pervasive distribution system.
Satisfied customers, who make a good profit selling our products.
Our people, who are ultimately responsible for building this enterprise.
Our abundant resources, which must be intelligently allocated.
Our strong global leadership in the beverage industry in particular and in the
business world in general
113. Strategy…
Mintzberg identifies five major strategy schools of thought:
1. Strategy as a plan - the required choices relate to the
paths or courses of action
2. Strategy as a pattern - view focuses on the consistency of
the choices made over time
3. Strategy as a position - focuses on choices about products
and markets
4. Strategy as a perspective - view is concerned about choices
related to the way activities are accomplished
5. Strategy as a ploy – relates to choices made to
outmaneuver the competition
114. Business Model…
A business model can be viewed as a
representation of an organization’s core logic and
strategic choices for creating value and capturing
returns from the value created
strategy is primarily concerned with making sets
of choices and the resulting business models that
reflect the choices made are tools to help further
analyze the strategy and communicate the
strategy
115. Haloid Xerox Inc
It was Haloid Company
Model 914 was used
Followed low cost method with latest technology
116. Product Life Cycle…
Introductory State
Growth Stage
Maturity Stage
Decline Stage
One approach to categorizing an organization’s
business strategy is based on its timing of
introductions of new outputs. Two researchers,
Maidique and Patch (1979), suggest the following
four product development strategies
117. Cond…
First to Market
Second to Market
Cost Minimization or Late to Market
Market Segmentation
118. Stages of a Product’s Life Cycle
Introduction Growth Maturity Decline
B&W TV
Video Recorder
CD PlayerColor Copier
Cell Phone
Internet Radio
Fax Machine
Dot-Matrix
Printer
119. Innovation
Something new to market
anything which is new to the business and its
product range is counted as innovation, even if
similar products are available elsewhere
Innovation is frequently defined as an iterative
process aiming at the creation of new products,
processes, knowledge or services by using new or
existing scientific or technological knowledge.
120. You Can't Innovate Like Apple
APPLE = INNOVATION
Two types of people in this world
1. There are those who open their presents before
Christmas morning.
2. There are those who wait. They set their
presents under the tree and, like a child, agonize
over the enormous anticipation of what will be in
the box when they open it on Christmas morning.
121. Success Strategy
10 to 3 to 1
Paired design meetings
Brainstorm meeting
Apple does not do market research
Apple has a very small team who designs their
major products
Apple owns their entire system
Apple focuses on a select group of products
123. What drives innovation
Research & Development
Engineer as – King - Customer is king concept
Reason for failure of some product in the market
Technology
124. to classify the innovations by type
A modified version of an existing product range
A new model in the existing product range
A new product outside the existing range but in a
similar field of technology
A totally new product in a new field of
technology.
125. Process Focus
Process: Is any part of an organization that takes
inputs and transforms them into outputs
Cycle Time: Is the average successive time
between completions of successive units
126. Process Planning
Process planning is the systematic determination
of methods by which a product is to be
manufactured, economically and competitively.
Process planning has been defined as the
subsystem responsible for the conversion of
design data to work instruction
127. Information Required to do Process Planning
Qty of work to be done along with product
specifications.
Quality of work to be completed.
Availability of equipments, tools and personnel.
Sequence in which operations will be performed on the
raw material.
Name of the machine and equipments on which the
operations will be performed.
Standard time for each operation.
When the operation will be performed?
128. 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
129. Process Flowcharting
Process flowcharting is the use of a diagram to
present the major elements of a process
The basic elements can include tasks or
operations, flows of materials or customers,
decision points, and storage areas or queues
It is an ideal methodology by which to begin
analyzing a process
130. Process Charts Symbols
Event Symbol
1. Operation
2. Storage
3. Delay (or)
Temporary Storage
4. Transport
5. Inspection
132. Process Chart – Refill of a Ball Point Pen
Unscrew cap
Unscrew neck
Remove old refill
Place the refill in the barrel
Screw the neck
Check if ball pen writes
Screw the cap
133. Polishing a material
Start polishing machine
Sprinkle solution of polishing Compound on the rotating table
Hold the specimen in hand
Place the specimen gently on the Rotating table and polish it
Wait for few seconds
Take away specimen to wash basin
Wash the specimen
Etch the specimen
Wash the specimen again
Dry it
Check under microscope
Keep specimen in the container
134. Flow Diagram
A flow diagram is a drawing or a diagram which is
drawn to scale. It shows the relative position of
production machineryand marks the paths followed by
men and materials.
B A
C
D
STORE
1
1
12 2
3 1
4
1 5
A Flow Diagram
135. STRING DIAGRAM
String Diagram is a model or a scale plan of the shop, in which
every machine or equipment is marked and a peg or pin is struck
by or in the area representing a facility. A continuous coloured
thread or string traces the path taken up by the materials or
workers while performing a particular operation. The thread when
measured gives approximately the total distance traveled by a
worker or the material.
M-1
M-2
M-3
M-4
M-5
M-6
Stock
Room
Stores
String
Peg
String Diagram
137. Types of Processes (Continued)
Stage 1 Stage 2
Buffer
Multi-stage Process with Buffer
A buffer refers to a storage area between
stages where the output of a stage is placed
prior to being used in a downstream stage
138. Other Process Terminology
Blocking
Occurs when the activities in a stage must stop
because there is no place to deposit the item just
completed
If there is no room for an employee to place a
unit of work down, the employee will hold on to
it not able to continue working on the next unit
Starving
Occurs when the activities in a stage must stop
because there is no work
If an employee is waiting at a work station and
no work is coming to the employee to process, the
employee will remain idle until the next unit of
work comes
139. Other Process Terminology (Continued)
Bottleneck
Occurs when the limited capacity of a process
causes work to pile up or become unevenly
distributed in the flow of a process
If an employee works too slow in a multi-stage
process, work will begin to pile up in front of
that employee. In this is case the employee
represents the limited capacity causing the
bottleneck.
Pacing
Refers to the fixed timing of the movement of
items through the process
140. Process Performance Metrics
Operation time = Setup time + Run time
Throughput time = Average time for a unit to
move through the system
141. Process Performance Metrics (Continued)
Cycle time = Average time between
completion of units
Throughput rate = 1 .
Cycle time
Efficiency = Actual output
Standard Output
144. Line Flow
WS 1 WS 2 WS 3
WS Task or work st at ion
Product f low
145. Batch Flow
WS 1 WS 3 WS 5
WS Task or work st at ion
Product f lows
WS 2 WS 4
146. Project Flow
St art
Task 1 Task 3
Task Task or act ivit y
Precedence relat ionship
Task 2 Task 4
End
147. Factors Affecting Process Choice
Market conditions and competition
Capital requirements
Labor supply and cost
Management skills
Materials supply and cost
State of technology
148. Product-Process Strategy
Product-Process Matrix
Product Life Cycle (PLC) stages
Process Life Cycle stages
Modified Product-Process Matrix
Cross functional decision making and product-
process strategy
149. Product Life Cycle Stages
Low volume-low standardization, one of a kind
Multiple products, low volume
Few major products, higher volume
High volume-high standardization, commodity
product
150. Process Life Cycle Stages
Jumbled flow (job shop)
Disconnected line flow (batch)
Connected line flow (assembly line)
Continuous flow
151. PROCESS LIFE CYCLE
Process life cycles are related to product life cycles as shown
in
the following figure.
Over a period of time, manufacturing cost per unit diminishes in
mature products. The product life cycle starts from the stage of ‘start up’
and ends in the stage of ‘decline’. From product start-up to decline,
manufacturing processes undergo a change from job shop production
through batch production, assembly line production and continuous flow
production. The through-put volume, rates of process innovation and
degree of automation will also change from the Stage of start-up to the
stage of decline.
Through-put volumes and automation are low at start-up and high during
the Maturity stage.
