Chap 3a

265 views

Published on

supply chain mgt

Published in: Business, Technology
  • Be the first to comment

  • Be the first to like this

Chap 3a

  1. 1. Types of Processes
  2. 2. Process Categories <ul><li>Recognition of different process essential; </li></ul><ul><ul><li>For efficiency & optimum operation </li></ul></ul><ul><ul><li>For skills, capacity utilization & General Mgmt </li></ul></ul><ul><li>Processes should be suitable as per competitive environment </li></ul><ul><li>Processes distinguished primarily by; </li></ul><ul><ul><li>Volume of product produced (total & batch) </li></ul></ul><ul><ul><li>Fit b/w various parts of operating system </li></ul></ul><ul><li>Five major types of processes as per above; </li></ul><ul><ul><li>Projects, Job Shops, Batch Process, Line Flows & Continuous Process </li></ul></ul>
  3. 3. Projects <ul><li>Task is to produce a unique, one-of-kind thing </li></ul><ul><li>Consist of a series of discrete steps </li></ul><ul><li>Coordination b/w functions is necessary </li></ul><ul><ul><li>One activity must complete before other </li></ul></ul><ul><ul><li>Thus scheduling & sequencing imperative </li></ul></ul><ul><ul><li>Planning techniques play a vital role like primavera </li></ul></ul><ul><li>Examples include R & D projects, construction, advertising campaign, racing car etc </li></ul>
  4. 4. Job Shop <ul><li>Involve a large no of variety but low volumes </li></ul><ul><li>Products are often customized but each may require different tasks or sequences </li></ul><ul><li>WIP inventory usually occurs b/w tasks </li></ul><ul><li>Labor content, worker skills are high </li></ul><ul><li>Machinery is not Hi-tech, cross utilization is common thus flexibility & adoptability exist </li></ul><ul><li>Offer responsiveness to customer demands </li></ul><ul><li>Examples include GP machine shops, automobile repair shops, custom dress makers </li></ul>
  5. 5. Batch Process <ul><li>Differ from Job shop by large lot sizes, standardized products and common tasks </li></ul><ul><li>Products possess greater similarity and thus provide less flexibility to variation </li></ul><ul><li>Has limited volumes per product so assembly line operation not feasible </li></ul><ul><li>WIP inventory is usually minimum or absent </li></ul><ul><li>Labor content relatively low </li></ul><ul><li>Examples include bookbinders, complex electronic eqpt, musical instrument makers </li></ul>
  6. 6. Line Flows <ul><li>Produce products in the largest volumes </li></ul><ul><li>Standardize product,limited differentiation </li></ul><ul><li>Reliance on less capital equipment </li></ul><ul><li>High labor content, skills & flexibility </li></ul><ul><li>Worker responsibility relatively high </li></ul><ul><li>WIP present in relatively less volume </li></ul><ul><li>Examples include pocket calculators, ball point pens, automobiles </li></ul>
  7. 7. Continuous Flows <ul><li>Produce products in the largest volumes </li></ul><ul><li>Standardize product,limited differentiation </li></ul><ul><li>Reliance on capital equipment so little labor content, skills & flexibility </li></ul><ul><li>Worker responsibility only to monitor </li></ul><ul><li>WIP inventory present in large volumes and transferred automatically </li></ul><ul><li>Less responsive to customer demands </li></ul><ul><li>Examples include steel, chemicals & paper </li></ul>
  8. 8. Labor <ul><li>Decreases from left to right; </li></ul><ul><ul><li>Labor content </li></ul></ul><ul><ul><li>Labor skill </li></ul></ul><ul><ul><li>Labor training times </li></ul></ul><ul><ul><li>Monthly or weekly salaries payment instead of per piece price </li></ul></ul><ul><ul><li>Degree of worker control </li></ul></ul><ul><ul><li>Decision making from technology instead of labor </li></ul></ul>
  9. 9. Materials <ul><li>Increases from Left to Right; </li></ul><ul><ul><li>Materials requirement i.e certainty </li></ul></ul><ul><ul><li>Supplier relations are formal and longer </li></ul></ul><ul><ul><li>Vertical integration of materials and process </li></ul></ul><ul><ul><li>Raw materials & finished goods inventory </li></ul></ul><ul><li>Decreases from Left to Right </li></ul><ul><ul><li>WIP inventory </li></ul></ul><ul><ul><li>Production times/Lead times </li></ul></ul>
  10. 10. Planning & Control <ul><li>Imp increases from left to right; </li></ul><ul><ul><li>Forecast mandatory </li></ul></ul><ul><ul><li>Scheduling & Capacity utilization is critical </li></ul></ul><ul><ul><li>Quality control becomes formal </li></ul></ul><ul><ul><li>Coordination in early stages </li></ul></ul><ul><li>Decreases from Left to Right </li></ul><ul><ul><li>Information flows and coordination in later stages </li></ul></ul>
  11. 11. Management Tasks <ul><li>Imp increases from Left to Right </li></ul><ul><ul><li>Staff needs (planning etc) in lines of supervision </li></ul></ul><ul><ul><li>Long term planning, strategic decisions become more essential as compared to day to day operations </li></ul></ul>
  12. 12. Process Selection <ul><li>Usually more than one process present in a production of a unit </li></ul><ul><li>Sharp division in process seldom absent </li></ul><ul><li>Proj Job Batch Line Cont </li></ul><ul><li>shop Process Flow Flow </li></ul><ul><li>Processes are selected based upon things they do well </li></ul><ul><li>Process should match the firms strategy, product, market and external environment </li></ul>
  13. 13. Process Selection <ul><li>Before selection, detailed understanding required for; </li></ul><ul><ul><li>Present and future cost of operations & maintenance </li></ul></ul><ul><ul><li>Volume, quality, flexibility of output </li></ul></ul><ul><ul><li>Required raw materials, energy and other inputs </li></ul></ul><ul><ul><li>Risks and uncertainties </li></ul></ul><ul><li>After selection, process peculiar demands are met ; </li></ul><ul><ul><li>Material requirements, capacity utilization & planning critical for line/continuous process </li></ul></ul><ul><ul><li>Removing the bottleneck, scheduling and loading the plant are critical for job shop / batch process </li></ul></ul>

×