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Process Design

The document outlines various process design strategies and focuses on how organizations transform resources into goods and services while considering efficiency and flexibility. It discusses major process decisions such as process structure, customer involvement, resource flexibility, and capital intensity, along with different production focuses like process focus, repetitive focus, product focus, and mass customization. Additionally, it covers productivity measurement, lean manufacturing principles, the seven wastes, resource losses, time study techniques, and the importance of standard work in optimizing production processes.

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Monkey D. Luffy
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12 views19 pages

Process Design

The document outlines various process design strategies and focuses on how organizations transform resources into goods and services while considering efficiency and flexibility. It discusses major process decisions such as process structure, customer involvement, resource flexibility, and capital intensity, along with different production focuses like process focus, repetitive focus, product focus, and mass customization. Additionally, it covers productivity measurement, lean manufacturing principles, the seven wastes, resource losses, time study techniques, and the importance of standard work in optimizing production processes.

Uploaded by

Monkey D. Luffy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Process Design

Process Strategy
● Organization’s approach to transforming resources into
goods and services
● Build production process that meets customer
requirements and product specification within cost
● Has long term effects on efficiency and production
flexibility
Major Process Decision
● Process Structure - determines how processes are designed relative
to the kinds of resources needed, how resources are partitioned and
their key characteristics
● Customer Involvement - ways in which customers become part of the
process and extent of their participation
● Resource Flexibility - employees and equipment can handle a wide
variety of products, output levels, duties and functions
● Capital Intensity - mix of equipment and human skills in a process
Resource Flexibility
● Workforce
● Skill diversity
● Permanent or part-time employee volume
● Equipment
● Cost of equipment
● Product volume
● Level of customization
Process Focus

● A production facility organized around processes to


facilitate low-volume, high-variety productions
● All operations are grouped according to the type of
process
● Used to produce small quantity of different items
on general purpose machines
Process Focus Characteristics
● Facilities are organized around specific activities or
processes
● General purpose equipment and skilled personnel
● High degree of product flexibility
● Typically high costs and low equipment utilization
● Product flows may vary considerably making planning and
scheduling a challenge
Repetitive Focus
● Facilities often organized as assembly lines
● Characterized by modules with parts and assemblies
made previously
● Modules may be combined for many output options
● Less flexibility than process-focused facilities but more
efficient
Product Focus
● Facilities are organized by product
● High volume but low variety of products
● Long, continuous production runs enable efficient
processes
● Typically high fixed cost but low variable cost
● Generally less skilled labor
Mass Customization

● Rapid, low cost production of goods and services to


satisfy increasingly unique customer desires
● Combines the flexibility of a process focus with the
efficiency of a product focus
Process Mapping
● Planning and management tool that visually describes the
flow of work
● Shows who and what is involved in a process and can be
used in ay businesses or organization
● Reveals areas where a process should be improved
Mapping Purpose
● Improve efficiency
● Provide insight into a process
● Help teams brainstorm ideas for process improvement
● Identify bottlenecks, repetition and delays
● Define process boundaries, process ownership, process
responsibilities and effectiveness measures or process
metrics
Productivity Measurement

● Define productivity and direct behaviour


● Monitor performance and provide feedback
● Diagnose problems
● Facilitate Planning and control
● Support innovation
Lean Manufacturing
● In 1980’s Toyota evolved their own system to provide
reliable but affordable cars.
● System drove waste out of every process
● Philosophical and methodological approach that strives
to provide increasing value to the customer through
total employee involvement in the reduction of
on-value-added activities and their associated costs
The Seven Wastes
1. Overproduction against plan
2. Waiting time of operators and machines
3. Unnecessary transportation
4. Waste in the process itself
5. Excess stock of material and components
6. Non value-adding motion
7. Defects in quality
Resource Losses
● Social Loss - losses due to meetings
● Utilization Loss - if parts are not available or the operation is not setup
so that the operator can perform at best
● Performance Loss - not meeting standard times and not following
standard procedures
● Method Loss - if product not designed to be easily manufactured
● Plan Loss - scheduling equipment not to run
● Stop Loss - changeover or breakdown
● Speed Loss - slow equipment
● Quality Loss - defective parts and materials
Time Study
● Eliminate - can step be omitted
● Combine and Separate - streamlining of work
● Rearrange and Substitute - order of work and how can it be
done easily
● Simplify - improve to make work easy
Standard Work
● Determine the capacity of equipment and facilities
● Enable effective work scheduling, maximizing output and utilization
● Give management data to trace the difference between standard and
actual times
● Compare the time needed for different work methods
● Evaluate the productivity of equipment to be purchased
● Facilitate efficient layout of the production floor
● Balance work force with the available work
● Facilitate accurate cost determination in advance of actual production
● Identify and resolve safety and quality issues

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