Processes and Technologies Process Definition of Process Any

Processes and Technologies

Process (Definition of) Process: Any part of an organization that takes inputs and transforms them into outputs

Process Flowcharting (definition of) • 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

Flowchart Symbols (1 of 2) Tasks or operations Decision Points Examples: Giving an admission ticket to a customer, installing an engine in a car, etc. Examples: How much change should be offered to a customer, which tool should be used, etc.

Flowchart Symbols (2 of 2) Storage areas or queues Flows of materials or customers Examples: Sheds, lines of people waiting for a service, etc. Examples: Customers moving to a seat, mechanic getting a tool, etc.

Example 1: Flowchart of Student Going to School Go to school today? No Goof off Yes Drive to school Walk to class

Example 2: Flowchart for Inspection Process Material Received from Supplier No, Continue… Inspect Material for Defects found? Yes Return to Supplier for Credit

Processes • Conversion (ex. Iron to steel) • Fabrication (ex. Cloth to clothes) • Assembly (ex. Parts to components) • Testing (ex. For quality of products)

Process Selection To Accompany Russell and Taylor, Operations Management, 4 th Edition , 2003 Prentice-Hall, Inc. All rights reserved.

Process Selection Ø Process Selection: Deciding on the way production of goods or services will be organized Ø Process selection can involve substantial investment in § Equipment § Layout of facilities

Process Selection Has Major Implications for: • • Capacity planning Layout of facilities Equipment Design of work systems To Accompany Russell and Taylor, Operations Management, 4 th Edition , 2003 Prentice-Hall, Inc. All rights reserved.

Process Selection and System Design Forecasting Capacity Planning Product and Service Design Technological Change Facilities and Equipment Layout Process Selection Work Design To Accompany Russell and Taylor, Operations Management, 4 th Edition , 2003 Prentice-Hall, Inc. All rights reserved.

Process Strategy Process strategy defines the overall approach to producing goods and services Key Aspects of Process Strategy: – Capital Intensity • The mix of equipment and labor that will be used by the organization – Process flexibility • The degree to which the system can be adjusted to changes in processing requirements due to such factors as – Product and service design changes – Volume changes – Changes in technology – Vertical integration

Factors that Affect Process Decisions ØRequired Variety, ØRequired Volume (how many) ØRequired Flexibility (degree of)

From Function to Process Sales Manufacturing Purchasing Accounting Product Development Order Fulfillment Supply Chain Management Customer Service Function Process

Process Selection • Variety – How much • Flexibility – What degree • Volume – Expected output Job Shop Batch Repetitive Continuous

Types of Processes (Process Flow Structures) ü Projects ü Job shop ü Batch production ü Mass production/assem bly (repetitive) ü Continuous flow production

Types of Processes (1 of 2) Determine how to produce a product or provide a service Ø Projects (nonroutine jobs) Ø Job shop Small scale (e. g. copy center making a single copy of a student term paper) Ø Batch Moderate volume (e. g. copy center making 10, 000 copies of an ad piece for a

Types of Processes (2 of 2) Ø Mass production/assembly High volumes of standardized goods or services (e. g. Automobile manufacturer) Ø Continuous Flow Line Very high volumes of non-discrete goods (eg. Petroleum manufacturer)

Types of Processing To Accompany Russell and Taylor, Operations Management, 4 th Edition , 2003 Prentice-Hall, Inc. All rights reserved.

Process Choice Effects To Accompany Russell and Taylor, Operations Management, 4 th Edition , 2003 Prentice-Hall, Inc. All rights reserved.

Types of Process Strategies Process strategies follow a continuum Within a given facility, several strategies may be used Process Focused (intermittent process) Repetitive Focus (assembly line) Product Focused (continuous process) Continuum High variety, low volume Low utilization (5% - 25%) General-purpose equipment Modular Flexible equipment Low variety, high volume High utilization (70% - 90%) Specialized equipment

Process-Focused Strategy Ø Facilities are organized by process Ø Similar processes are together Ø Example: All drill presses are together Ø Low volume, high variety products Ø ‘Jumbled’ flow Ø Other names Product A Ø Intermittent process Ø Job shop Ø Batch Operatio n 1 2 Product B 3

Process-Focused Strategy Examples Bank Hospital © 1995 Corel Corp. Machine Shop © 1995 Corel Corp.

Repetitive Focused Strategy Ø Facilities often organized by assembly lines Ø Characterized by modules Ø Parts & assemblies made previously Ø Modules combined for many output options Ø Other names Ø Assembly line Ø Production line

Repetitive-Focused Strategy Examples Fast Food Clothes Dryer Mc. Donald’s over 95 billion served Truck © 1995 Corel Corp. © 1984 -1994 T/Maker Co. © 1995 Corel Corp.

Product-Focused Strategy Ø Facilities are organized by product Ø High volume, low variety products Ø Where found Ø Continuous process manufacturing Ø Other names Ø Flow line production Ø Continuous production Products A & B 1 2 Operation 3

Product-Focused Examples Soft Drinks (Continuous, then Discrete) Light Bulbs (Discrete) © 1995 Corel Corp. © 1984 -1994 T/Maker Co. Paper (Continuous) © 1995 Corel Corp. Mass Flu Shots (Discrete) © 1995 Corel Corp.

Product – Process Matrix Dimension Job shop Batch Repetitive Continuous Job variety Very High Moderate Low Very low Process flexibility Very High Moderate Low Very low Unit cost Very High Moderate Low Very low Volume of output Very Low High Very High

Types of Processes Product ………. . Customer………. Demand………. . . Volume…………. No. of different products……… System…………. . Equipment……. . . Type of work…. . Skills……………. PROJECT BATCH MASS CONTINUOUS Unique One-at-a-time Infrequent Very low Made to order Few individuals Fluctuates Low to med Made to stock Mass market Stable High Commodity Mass market Very stable Very high Infinite Long-term Many, varied Discrete, job Few Repetitive, assembly lines Special-purpose Assembly Limited range of skills Efficiency, speed, low cost Capital investment, lack of responsiveness Autos, TV’s, fast food Very low Process industry Varied Contracts Experts, craftspeople Advantages……. Custom work, technology Dis- adv………… Nonrepetitive, small customer base, expensive Example………. . Construction, shipbuilding General-purpose Fabrication Wide range of skills Flexibility, quality Costly, slow, difficult to manage Machine shops, printing, bakery Highly automated Mix, treat, refine Equipment monitors Highly efficient large capacity Difficult to change Paint, chemicals, food

Product-Process Matrix To Accompany Russell and Taylor, Operations Management, 4 th Edition , 2003 Prentice-Hall, Inc. All rights reserved.

Product and Service Profiling • Process selection involves – Substantial investment in equipment – Has a very specific influence on layout • Product or service profiling – Linking key product or service requirements to process capabilities – Key dimensions relate to • Range of products or services that will be processed • Expected order sizes • Pricing strategies • Expected frequency of schedule changes To Accompany Russell and Taylor, Operations Management, 4 th Edition , 2003 Prentice-Hall, Inc. All rights reserved.

Transition From Product Design to Process Design: Product and Production Documents

Product Documents • Engineering drawings – Shows dimensions, tolerances, & materials – Shows codes for Group Technology • Assembly drawing -- Shows exploded view of product • Bill of Material – Lists components, quantities & where used – Shows product structure

Engineering Drawings - Show Dimensions, Tolerances, etc.

Assembly Drawing Head Neck Handle End Cap

Bill of Material Example

Process Flow Design Ø 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

Process Documents Production Documents Tools to conduct Process Flow Design ü Assembly chart / product structure diagram ü Operations process chart ü Routing sheet

Assembly Chart (Gozinto Chart) Bottom bun Beef patty Salt Cheese SA Lettuce Sauce Onions First-layer assembly Middle bun Beef patty Salt Cheese Lettuce Sauce Onions Pickles SA Second-layer assembly Sesame seed top bun Wrapper Completed Big Mac

Assembly Chart for A Tuna Sandwich 1 Tuna Fish SA 1 2 3 Tuna Assy A 1 Sandwich Mayonnaise Bread FG A 2

Assembly Drawing and Assembly Chart

Operations Process Chart Part name Crevice Tool Part No. 52074 Usage Hand-Vac Assembly No. 520 Oper. No. Description Dept. Machine/Tools Time 10 Pour in plastic bits 041 Injection molding 2 min 20 Insert mold 041 #076 2 min 30 Check settings & start machine 041 113, 67, 650 20 min 40 Collect parts & lay flat 051 Plastics finishing 10 min 50 Remove & clean mold 042 Parts washer 15 min 60 Break off rough edges 051 Plastics finishing 10 min

Route Sheet Lists all operations

Process Analysis ü The systematic examination of all aspects of a process to improve its operation to make it: ü Faster ü More efficient ü Less costly ü More responsive ü Basic tools ü Process flowchart ü Process diagrams

Process Flowchart Symbols Operations Inspection Transportation Delay Storage

Process Flowchart: Example 1 SUBJECT: Request tool purchase Dist (ft) Time (min) Symbol Description lðo D Ñ Write order DÑ On desk èo. D Ñ To buyer ð o 75 ð n D Ñ Examine = Operation; ð= Transport; o = Inspect; D = Delay; Ñ = Storage

Process Flow Chart: Example 2: Hamburger Assembly Dist. Time Chart Process Description (Ft) 1. 5 1. 0. 5. 5 (Mins). 05 2. 50. 05. 15. 10. 20. 05 Symbols ð Ⅾ ð Ⅾ ð Ⅾ Meat Patty in Storage Transfer to Broiler Visual Inspection Transfer to Rack Temporary Storage Obtain Buns, Lettuce, etc. Assemble Order Place in Finish Rack 3. 5 3. 15 TOTALS 2 =4 Operation 1 Value-added time/Total time = 2 (2. 50+. 20)/3. 15=85. 7%

Process Flowchart: Example 3 Description of process 1 Unload apples from truck 2 Move to inspection station 3 Weigh, inspect, sort 4 Move to storage 5 Wait until needed 6 Move to peeler 7 Apples peeled and cored 15 8 Soak in water until needed 20 9 Place in conveyor 5 10 Move to mixing area 11 Weigh, inspect, sort Page 1 0 f 3 Total Distance (feet) Location: Graves Mountain Process: Apple Sauce Time (min) Operation Transport Inspect Delay Storage Step Date: 9 -30 -02 Analyst: TLR 20 100 ft 30 50 ft 360 20 ft 30 480 190 ft

Process Diagram UPS Active Bins Receiving Reserve Storage Quality Assurance Picking Packing Monogramming Embroidering Back to Vendor Hemming Gift Boxing Shipping Parcel Post Next-Day UPS

Process Map Customer Waiter Place order Is order complete? Salad Chef Dinner Chef N Y Give soup or salad order to chef Prepare soup or salad order Prepare dinner order Give dinner order to chef Drink Get drinks for customer Eat salad or soup Deliver salad or soup order to customer Eat dinner Deliver dinner to customer Receives check Deliver check to customer Gives payment to waiter Receive payment for meal Cash or Credit? Credit Cash Collect change, leave tip Bring change to customer Run credit card through Fill in tip amount Return credit slip to customer Collect tip Give order to waiter

Service Process Design

Customer Interaction and Process Strategy Low High Professional Service Personal banking Commercial Banking Full-service stockbroker Boutiques Retailing Service Factory Limited service stockbroker Law clinics Service Shop For-profit hospitals Fine dining restaurants Hospitals Airlines Degree of Interaction and Customization Low Fast food restaurants Warehouse and catalog stores No frills airlines General purpose law firms High Degree of Labor Intensity Mass Service

Techniques for Improving Service Productivity (1 of 2) Strategy • Separation Technique • Self-service • Structure service so customers must go where service is offered • Self-service so customers examine, compare and evaluate at their own pace • Postponement • Customizing at delivery • Focus • Restricting the offerings

Techniques for Improving Service Productivity (2 of 2) • Modules • Automation • Scheduling • Training • Modular selection of service. Modular production • Separating services that lend themselves to automation • Precise personnel scheduling • Clarifying the service options • Explaining problems • Improving employee flexibility

More Opportunities to Improve Service Processes Ø Methods Ø Layout Ø Human Resource Ø Technology

Technologies

Technology v. Technology: The application of scientific discoveries to the development and improvement of products and services and operations processes. v. Technology innovation: The discovery and development of new or improved products, services, or processes for producing or providing them.

Kinds of Technology Ø Operations management is primarily concerned with three kinds of technology: – Product and service technology • Discovery and development of new products and services – Process technology • Methods, procedures, and equipment used to produce goods and provide services – Information technology • The science and use of computers and other electronic equipment to store, process, and send information Ø All three have a major impact on: Ø Costs Ø Productivity Ø Competitiveness

Technology for Competitive Advantage Technological advances can lead to competitive advantage – Product technology • Increased market share and profits – Processing technology • Improved quality • Lower costs • Higher productivity • Expanded processing capabilities To Accompany Russell and Taylor, Operations Management, 4 th Edition , 2003 Prentice-Hall, Inc. All rights reserved.

Technology as a Competitive Advantage Innovations in ØProducts and services ØCell phones ØPDAs ØWireless computing ØProcessing technology ØIncreasing productivity ØIncreasing quality ØLowering costs ØEases flexibility

Technology Acquisition Ø Technology can have benefits but … Ø Technology risks include: ØWhat technology will and will not do ØTechnical issues ØEconomic issues ØInitial costs, space, cash flow, maintenance ØConsultants and/or skilled employees ØIntegration cost, time resources

Technology Acquisition Advantages: Ø Increased precision (less variability) Ø Increased productivity Ø Increased flexibility, increased product variety Ø Decreased cost (labor, material, inventory, transportation and quality costs) Ø Improved product features and quality Ø Decreased pollution Ø Decreased size Ø Decreased power requirements.

Process Technology: Automation Ø Machinery that has sensing and control devices that enables it to operate automatically Ø Fixed automation Ø Programmable automation Ø Flexible automation

Automation Questions 1. 2. 3. 4. 5. 6. What level of automation is appropriate? How would automation affect system flexibility? How can automation projects be justified? How should changes be managed? What are the risks of automating? What are the likely effects of automating on: – Market share – Costs – Quality – Customer satisfaction – Labor relations – Ongoing operations To Accompany Russell and Taylor, Operations Management, 4 th Edition , 2003 Prentice-Hall, Inc. All rights reserved.

Manufacturing Hardware Technology ü Numerically controlled (NC) machines ü Controlled by punched tape ü Computer numerical controlled (CNC) ü Controlled by attached computer ü Direct numerical control (DNC) ü Several NC machines controlled by single computer ü Robotics ü Flexible manufacturing systems (FMS) ü Includes automated material handling

Robotics ü Programmable manipulators ü Follow specified path ü Better than humans with respect to ü Hostile environments ü Long hours ü Consistency ü Adoption has been slowed by ineffective integration and adaptation of systems

Hardware Technology: Automated Material Handling ü Conveyors ü Automated guided vehicle (AGV) ü Automated storage & retrieval system (ASRS)

Flexible Manufacturing System CNC Machine Finished goods Computer control room Terminal Pallet Automatic tool changer CNC Machine Parts

Manufacturing Software Technology Ø Computer Aided Design and Computer Aided Manufacturing (CAD/CAM) Ø Computer Integrated Manufacturing (CIM)