Process Design

Process Design
Topics to be Covered
• Process Analysis
• Process Flowcharting
• Types of Processes
• Types of Production/Manufacturing Process
• Process Selection
Process Analysis
• Process: is any part of an organization that
takes inputs and transforms them into outputs
that are of greater value to the organization
than the original inputs
• Process analysis is a systematic
examination of all aspects of the organization
to improve its operation –
– Make it faster
– More efficient
– Less costly
– More responsive to customer
Process Flowcharting
Defined
• 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.
Process Flow Charts
Graphical description of a process:
– Holding:
• Raw Materials, RM
• Work in Process, WIP
• Finished Goods Inventory, FGI
– Flow of material or work
– Processing step
– Decision point
Example: Flowchart of Student Going to
College
Go to Yes
Drive to Walk to
College
College class
today?
No
Go back
to bed
Types of Processes
1] Single Vs Multistage Process
2]Make to order Vs Make to Stock
3]Paced Vs Non Paced
Single Stage
Stage 1
Multi Stage Process
Stage 1 Stage 2 Stage 3

Multistage Process with Buffer
Buffer
Stage 1 Stage 2
Conti….
• Buffering: It refers to the storage area
between stages where the output of a stage
is placed prior to being used in a downstream
stage.
What might happen without buffer?

• Blocking: It occurs when the activities in the stage must
stop because there is no place to deposit the item just
completed. ( when Stage 1 is faster)
• Starving: It occurs when the activities in a stage must
stop because there is no work.( when stage 2 is faster)
• Bottleneck: The stage that limits the capacity of process
Example
• Consider a two stage process where the first
stage has cycle time of 30 seconds and the
second cycle time of 45 seconds. If this
process needs to produce 100 units, then for
each unit produced, the first stage would be
blocked for 15 seconds.
• Second stage is bottle neck
Make–to-order Vs Made-to- stock
• Make-to-order
– Only activated in response to an actual order.
– Both work-in-process and finished goods
inventory kept to a minimum.
• Make-to-stock
– Process activated to meet expected or forecast
demand.
– Customer orders are served from target stocking
level.
• Hybrid
– It combines the features of both make to order
and make to stock
III] Paced Vs Non-paced
• Pacing refers to fixed time of movement of items

through the process
• Assemble lines are mostly paced. For eg. items
moves from one stage to other every 40 sec.
• Services are mostly non paced.
Production / Manufacturing Processes
Types of Production
Processes
Continuous Mass Production Project

Production
Batch
Production
Types of production System
Continuous Intermittent
• Flow of production is • Flow of production is not
continuous continuous ( intermittent)
• Products are standardized • Variety of products are produced
• Volume of production is high. • Volume of production is low
• Special-purpose equipment is • General purpose machines are
used used
• Make to Stock(Based on • Make to order(as per customer
anticipated demand) requirement)
• Standardized production • Production planning is variable
planning and schedules and complex
• Sequence of operations are • Sequence of operations may
fixed change as per Design
Continuous/Flow Production
•Used for high-volume commodity products that are very
standardized.
•The output is continuous, not discrete-meaning individual
units are measured, rather than counted.
•The system is highly automated.
•Dedicated plant and equipment.
•Product differentiation is limited.
•High Initial investment
•Companies that operate in this fashion are referred to
as process industries.
•The set-up time for starting such process is very long.
•Predetermined sequence of process.
• e.g. Steel, paper, paints, chemicals, textiles

Mass/Line Production
•Mass production is usually associated with assembly

lines.
•Standardized products with little variety
•Products are made-to-stock for a mass market
•Demand is stable, and volume is high.
•Work in Progress is low.
•Planning and scheduling is routine
•System tends to be capital-intensive and highly
repetitive, with specialized equipment and limited labor
skills.
•It result in low cost per unit
• e.g. automobiles, electronics, fast food
Advantages- Continuous & Mass
production
• Standardization of product and

sequence(as per quality standards )
• Higher rate of production
• Highest capacity utilization
• Manpower with limited skills required
• Cost per unit is less due to higher volume
Batch Process
•A production system that processes items in small groups
or batches( 100 to 1000) is called Batch production.
•It characterized by fluctuating demand, short production
runs of a wide variety of products,
•Products requiring same or similar processing needs are
manufactured(same product family).
•A job may be routed through many different machine
centers in batches or lots before it is completed.
• Work on a particular product is not continuous; it
is intermittent.
• e.g. bakery, print shops, education system
Batch Shop
Advantages
• Large variety
• Operators more skilled and competent
• Opportunity for innovation and creativity
• Lower investment in plant and machinery
Limitation
• Material handling
• Production planning Complicated
• High set up cost
• WIP high
Project
•Projects represent one-of-a-kind production for an
individual customer.
•Highly Flexible and low volume
•Item produced stay at one place and all resources
come to it.
•Involve large sums of money and last a considerable
length of time.
•Customers are few and customer involvement intense.
•Most companies do not have the resources (or time) so
subcontracting is common.
•In services , teaming of people to work on development
of a service is also called project, eg-Software
development
e.g. R&D, Construction, Shipbuilding, Spacecraft etc.
Process Selection: Comparison
between production process
• Manufacturing Cost • Flexibility in production

– Variable Cost • Type of Products
– Fixed Cost • Material handling
• Capital Investment Equipment usage
– Plant • Organizational structure
– Inventory • Job security
• Size of the plant – Worker
• Technical requirements – Employee
– Level of machines
– Level of Operator
Process Performance Metrics
• Productivity = Output
Input
• Utilization = Time Activated
Time Available
• Efficiency = Actual output
Standard Output
• Run Time = Time required to produce a batch of products

• Set up Time= Time required to prepare a machine to make
a particular item
• Operation time = Setup time + Run time

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Process Design

• Types of Production/Manufacturing Process

• It is an ideal methodology by which to begin

– Flow of material or work

Multi Stage Process

Stage 1 Stage 2 Stage 3

What might happen without buffer?

• Pacing refers to fixed time of movement of items

Continuous Mass Production Project

• e.g. Steel, paper, paints, chemicals, textiles

•Mass production is usually associated with assembly

• Standardization of product and

• Manufacturing Cost • Flexibility in production

• Run Time = Time required to produce a batch of products

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