CHAPTER 3: Process Selection and Design DIZON, Zyrr Napoleon FLAMINIANO, Katrina Viel BAUTISTA, Nhiel MANGULABNAN, Jonty

A PROCESS is any part of an organization that takes inputs and transforms them into outputs. Machine availability is the time the machine is available for productive use. Machine utilization is the ratio of the time the resource is actually used in relative to the time that it is available for use. Set up time or setting time, it is the time during which the machine is idle while the process tools or dies, etc. are fitted to make it capable of production. Cycle time is the average elapsed time between starting and completing a job. A process flow chart is a tool that categorizes each activity and provides operation details to understand the process. Types of Processes Single-stage process Multiple-stage process

Typology of Processes Processes can also be categorized on the basis of the market orientation: Make to Stock (MTS) Is when a seller stocks inventories of previously made products for purchase whenever the customer arrives. Assemble to Order (ATO) products are standard items that are assembled from instock subassemblies. Make to Order (MTO) products are from previously engineered designs, but only are made after an order has been received. Engineer to Order (ETO) is to provide unique products that have not been previously engineered.

They can also be categorized by the production system: Project Job Shop Assembly Line Continuous Flow Batch Production Cell Manufacturing Flexible Manufacturing System

Processes and Customer Involvement Self Service Product Selection Partnerships

Basic Manufacturing Process A way to categorize manufacturing processes is based on what they do. At the most basic level, the types of processes do the following things: Analytic Processes An analytic process breaks down a raw material into its constituent parts. An example is refining crude. Synthetic Process combines basic parts into larger products e.g., manufacture of automobiles, radios, televisions, etc. Modifying Processes These processes modify the physical characteristics of materials upon which labour or operations are performed. Examples include forming processes, machining processes, heat treatment processes, surface treating processes, joining processes, etc.

Process Decisions Make or Buy Flexibility Level of Mechanization Process Choice

Make or Buy Decisions Proprietary items Standard components Specialty components Commodity type items

FLEXIBILITY in manufacturing is the ability of a manufacturing system to respond at a reasonable cost and at an appropriate speed, to planned and unanticipated changes in external and internal environment. In other words, flexibility relates to the ability of the system to create products capable of meeting a customers need. Concepts of Flexibility Mix flexibility The ability of a system to present a wide range of products or variants with fast set ups. Changeover flexibility The ability of an OM system to introduce a large variety of major design change quickly within existing facilities. Modification flexibility The ability of the transformation process to implement minor product design changes, quite possibly after the product has been delivered. Volume flexibility The ability of the transformation process to profitably accommodate variations in production quantities. Systems with high fixed costs beget inflexibility since the firm will always be striving to maintain high utilization rates. Rerouting Program Flexibility The ability of the OM systems to respond to factors of product shortfall, such as equipment breakdowns, labour absenteeism, or a delayed raw materials shipment. Material flexibility The ability of transformation process to adjust for unexpected input variations. Flexibility Responsiveness The ability of the firm and its managers to change the strategic objectives in response to changes in the market place.

3 Levels of Manufacturing Flexibility 1. Basic Flexibility 2. System Flexibility 3. Aggregate Flexibility

LEVEL OF MECHANIZATION determines the capital intensity of the process. The mix of equipment and human skills in the process defines capital intensity.

Manufacturers use two types of automation system: 1. Fixed automation 2. Flexible automation

Process Choice There are two ends of a continuum of production system, which are: 1. Process focused system 2. Product focused system

Characteristic of different Production Systems 1. What will each alternative cost in the short term and long term? 2. What will each alternative provide in terms of cost, quality, time, and availability of output? 3. What will each alternative require in terms of raw materials, energy, infrastructure, managerial talents, and other inputs?

High volumes at a process typically mean all of the following: 1. A Line or Continuous Process 2. More Make than Buy Decisions: High volume creates more opportunities for vertical integration. 3. Less Resource Flexibility: When volumes are high, there is less need for flexibility to utilize resources effectively, and specialization can lead to more efficient processes. 4. Less Customer Involvement: At high volumes, products are generally standardized which do not require customization. 5. More Mechanization: High volumes justify the large fixed costs of an efficient operation.

Low volume typically means the following: 1. A Project or Job Process 2. Less Vertical Integration: Low volumes eliminate most opportunities for backward or forward vertical integration. 3. More Resource Flexibility: When volumes are low, workers are trained to handle all types of customers and often dispose of customer requests. 4. More Labour Intensive: The production flexibility is obtained through limited mechanization and more labour-intensive processes that require little investment.

Services High volumes at a service process typically mean the following: 1. 2. 3. 4. 5. Process In-house Production Resource Flexibility Customer Involvement Automation

Low volumes typically mean the following: 1. 2. 3. 4. 5. Process Outsourcing Resource Flexibility Customer Involvement Capital Intensity

Designing Processes The analytical work of process planning can be divided into two classes: Process analysis is concerned with the overall set of operations constituting the process. Operations Analysis is concerned with the work content constituting the operations and the method of performing this work, given the resources allocated to the process.

Process Improvement Process improvement is the systematic study of the activities and flows of each process to improve it. A six-step systems framework to analysing a process and implementing the process improvement program is often used: Step 1 Describe Strategic Dimensions Step 2 Identify the Inputs, Outputs, and Customers of the Process Step 3 Identify Performance Measures Step 4 Document the Process Step 5 Process Improvement Step 6 Process Reengineering

Process Reengineering 7 Principles of Reengineering 1. Organize around outcomes, not tasks. 2. Identify all the processes in an organization and prioritize them in order of redesign urgency. 3. Integrate information processing work into the real work that produces the information. 4. Treat geographically dispersed resources as though they were centralized. 5. Link parallel activities in the workflow instead of just integrating their results. 6. Put the decision point where the work is performed, and build control into the process. 7. Capture information once and at the source.

Conclusion The worlds markets and industry structures are in flux because the global forces at work are lowering the barriers to interaction. As interaction costs fall around the world, new economies of specialization, scale and scope are being createdinnovative companies have an abundance of opportunities to earn high rewards for the risks taken. Factories of the future are already in the making. FMS, CAD and CAM are cornerstones of the factory of the future.

Flexible manufacturing Systems (FMS): The use of automated production lines that can be adapted to produce more than one kind of product is called a Flexible Manufacturing System. The machinery uses computers to carry our functions such as loading, unloading, storing parts, changing tools and machining. The computer can instruct the machines to change everything when a new product is to be produced, depending on customer choices. Computer Aided Manufacturing (CAM): It is the heart and soul of flexible manufacturing. It uses computers to direct the manufacturing process.

Computer Aided Design (CAD): It uses special software to instruct a computer to draw specified configurations including dimensions and details on a display screen. This method reduces the time spent in the design process and simplifies the exploration of alternative design.