1. Processes and Technologies

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

3. 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

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

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

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

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

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

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

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

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

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

13. 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 – – Customer involvement

14.   Required Variety,   Required Volume (how many)   Required Flexibility (degree of) Factors that Affect Process Decisions

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

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

17. Types of Processes (Process Flow Structures) Projects Job shop Batch production Mass production/assembly (repetitive) Continuous flow production

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

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

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

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

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

23. Process-Focused Strategy   Facilities are organized by process   Similar processes are together   Example: All drill presses are together   Low volume, high variety products   ‘Jumbled’ flow Operation Product A Product B 112233   Other names   Intermittent process   Job shop   Batch

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

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

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

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

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

29. DimensionJob shopBatchRepetitiveContinuous Job varietyVery HighModerateLowVery low Process flexibility Very HighModerateLowVery low Unit costVery HighModerateLowVery low Volume of output Very LowLowHighVery High Product – Process Matrix

30. PROJECT BATCHMASS CONTINUOUS Product ………..UniqueMade to order Made to stock Commodity Customer……….One-at-a-timeFew individualsMass marketMass market Demand………...InfrequentFluctuatesStableVery stable Volume………….Very lowLow to medHighVery high No. of different products……… Infinite Many, variedFewVery low System…………..Long-termDiscrete, jobRepetitive, Process industry assembly lines Equipment……...VariedGeneral-purposeSpecial-purposeHighly automated Type of work…..ContractsFabricationAssemblyMix, treat, refine Skills…………….Experts,Wide rangeLimited rangeEquipment craftspeopleof skillsof skillsmonitors Advantages…….Custom work,Flexibility,Efficiency,Highly efficient technologyqualityspeed, low costlarge capacity Dis- adv…………Nonrepetitive,Costly, slow,Capital investment,Difficult to small customerdifficult tolack of change base, expensivemanageresponsiveness Example………..Construction,Machine shops, Autos, TV’s,Paint, chemicals, shipbuildingprinting, bakeryfast foodfood Types of Processes

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

32. To Accompany Russell and Taylor, Operations Management, 4th 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 Order-winning requirements

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

34. 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 Product Documents

35. Engineering Drawings - Show Dimensions, Tolerances, etc.

36. HeadNeck Handle End Cap Assembly Drawing

37. Bill of Material Example

38. Process Flow Design   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

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

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

41. 1 2 3 SA1 A1 A2 Tuna Fish Mayonnaise Bread Tuna Assy FG Sandwich Assembly Chart for A Tuna Sandwich

42. Assembly Drawing and Assembly Chart

43. Operations Process Chart Part nameCrevice Tool Part No.52074 UsageHand-Vac Assembly No.520 Oper. No.DescriptionDept.Machine/ToolsTime 10Pour in plastic bits041Injection molding2 min 20Insert mold041#0762 min 30Check settings041113, 67, 65020 min & start machine 40Collect parts & lay flat051Plastics finishing10 min 50Remove & clean mold042Parts washer15 min 60Break off rough edges051Plastics finishing10 min

44. Route Sheet Lists all operations

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

46. Process Flowchart Symbols OperationsInspection Transportation Delay Storage

47. Process Flowchart: Example 1

48. Process Flow Chart: Example 2: Hamburger Assembly Dist. (Ft) Time (Mins) Chart Symbols Process Description -Meat Patty in Storage 1.5.05Transfer to Broiler 2.50Broiler.05Visual Inspection 1.0.05Transfer to Rack.15Temporary Storage.5.10Obtain Buns, Lettuce, etc..20Assemble Order.5.05Place in Finish Rack 3.53.15TOTALS Value-added time = Operation time/Total time = (2.50+.20)/3.15=85.7%   2 4 1 - 2

49. Process Flowchart: Example 3

50. Process Diagram Reserve Storage Quality Assurance Back to Vendor UPS Parcel Post Next-Day UPS Mono- gramming Embroid- ering Hemming Gift Boxing Receiving Active Bins PickingPacking Shipping

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

52. Service Process Design

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

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

55. 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

56. More Opportunities to Improve Service Processes  Methods  Layout  Human Resource  Technology

57. Technologies

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

59. Kinds of Technology   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   All three have a major impact on:   Costs   Productivity   Competitiveness

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

61. Technology as a Competitive Advantage Innovations in   Products and services   Cell phones   PDAs   Wireless computing   Processing technology   Increasing productivity   Increasing quality   Lowering costs   Eases flexibility

62. Technology Acquisition   Technology can have benefits but …   Technology risks include:   What technology will and will not do   Technical issues   Economic issues   Initial costs, space, cash flow, maintenance   Consultants and/or skilled employees   Integration cost, time resources   Training, safety, job loss

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

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

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

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

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

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

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

70. Manufacturing Software Technology   Computer Aided Design and Computer Aided Manufacturing (CAD/CAM)   Computer Integrated Manufacturing (CIM)