1. Processdesign
Johann Packendorff

2. Process Design = att designa både designaktiviteter och produktionsaktiviteter!
Processes that Design Products
and Services
Processes that Produce Products and Services
Supply Network Design
Concept Generation
Screening
Layout
and Flow
Preliminary Design
Evaluation and Improvement
Process Technology
Job
Design
Prototyping and final design

3. Decisions taken during the design of the product or service will have an impact on the process that produces them and vice versa
Products and services should be designed in such a way that they can be created effectively
Processes should be designed so they can create all products and services which the operation is likely to introduce
Designing the Product or Service
Designing the Processes that Produce the Product or Service

4. THE DESIGN ACTIVITY OUTPUT
Finished designs which are:
TRANSFORMED RESOURCES
High quality: Error-free designs which fulfil their purpose in an effective and creative way
Speedily produced: Designs which have moved from concept to detailed specification in a short time
Dependably delivered: Designs which are delivered when promised
Produced flexibly: Designs which include the latest ideas to emerge during the process
Low cost: Designs produced without consuming excessive resources
Technical information
Market information
Time information
THE DESIGN ACTIVITY
INPUTS
OUTPUT
Test and design equipment
Design and technical staff
TRANSFORMING RESOURCES

5. Relatively early in the design activity the decisions taken will commit the operation to costs which will be incurred later
100% 0%
Percentage of final product cost committed by the design
Percentage of design costs incurred
Start of the design activity
Finish of the design activity

6. Processdesign Började med Scientific Management och Fords löpande band
Konkret utformning av tillverkningsprocessen –syftar till förbättringar av kvalitet, hastighet, tillförlitlighet, flexibilitet och kostnadsläge
”Processorientering” - att organisera hela företaget ’längs’ processerna i stället för kring funktioner eller specialistavdelningar

7. Processdesign - teman
Processdesign 1: Detaljutformning av operationer (job design)
Processdesign 2: Volym/varians-förhållandet och val av processform
Processdesign 3: Supply network design

8. Processdesign 1: Detaljutformning av operationer (Job design)

9. Process design Processes that Design Products and Services
Processes that Produce Products and Services
Supply Network Design
Concept Generation
Screening
Layout
and Flow
Preliminary Design
Evaluation and Improvement
Process Technology
Job
Design
Prototyping and final design

10. Process mapping symbols derived from “Scientific Management”
Operation (an activity that directly adds value)
Beginning or end of process
Activity
Inspection (a check of some sort)
Transport (a movement of some thing)
Input or Output from the process
Delay (a wait, e.g. for materials)
Direction of flow
Storage (deliberate storage, as opposed to a delay)
Decision (exercising discretion)
Process mapping symbols derived from “Scientific Management”
Process mapping symbols derived from Systems Analysis

11. Standard sandwich process Customized sandwich old process
Raw Materials
Assembly
Stored Sandwiches
Move to Outlets
Sell
Take Payment
Customer Request
Customized sandwich old process

12. The operation of making and selling customized sandwiches
Prepare
Assemble as required
Take payment
Bread and Base filling
Stored “Bases”
Fillings
Assemble whole sandwich
Customer Request
Use standard “base”?
Assemble from standard “base” No
Yes
The operation of making and selling customized sandwiches
The outline process of making and selling customized sandwiches
The detailed process of assembling customized sandwiches
Sandwich materials and customers
Customers “assembled” to sandwiches

13. Customized sandwich new process
Assemble whole sandwich
Assembly of “sandwich bases”
Use standard “base”?
Take Payment No
Fillings
Bread and Base filling
Yes
Customer Request
Assemble from standard “base”
Stored “Bases”

14. ‘Two handed’ process chart
Left hand
Right hand
Pick up base plate
Insert into fixture
Pick up two supports
Locate back plate
Pick up screws
Locate screws
Pick up air driver
Fasten screws
Replace air driver
Pick up centre assembly
Inspect centre assembly
Locate and fix
Switch on timer
Wait to end test
Inspect
Transfer grasp
Put aside
Wait
Hold base plate
Hold centre assembly

15. Processdesign 2: Volym/varians-förhållandet styr valet av processform (process technology / layout & flow)

16. MowRock

17. Manufacturing: Different process types are appropriate for different Volume-Variety combinations
Low Volume High
Project
High
Variety
Low
Jobbing
Batch
Mass
Continuous

18. Deviating from the ‘natural’ diagonal on the product-process matrix has consequences for cost and flexibility
Project
Jobbing
Batch
Mass
Continuous
Professional
service
Service
Shop
None
Less process flexibility than is needed so high cost
More process flexibility than is needed so high cost
The ‘natural’ line of fit of process to volume/variety characteristics
Manufacturing operations process types
Service operations process types
Variety
Volume 9

19. Project Processes
One-off, complex, large scale, high work content “products”
Specially made, every one customized
Defined start and finish: time, quality and cost objectives
Many different skills have to be coordinated
Fixed position layout, resources brought to product

20. Jobbing Processes
Very small quantities: “one-offs”, or only a few required
Specially made. High variety, low repetition. “Strangers”
Skill requirements are usually very broad
Skilled jobber, or team of jobbers complete whole product
Fixed position or process layout (routing decided by jobbers)

21. Batch Processes Higher volumes and lower variety than for jobbing
Standard products, repeating demand. But can make specials
Specialized, narrower skills
Set-ups (changeovers) at each stage of production
Process or cellular layout, predetermined planned routing

22. Mass (Line) Processes Higher volumes than Batch
Standard, repeat products (“runners”)
Low and/or narrow skills
No set-ups, or almost instantaneous ones
Cell or product layout: a fixed sequence of operations

23. Continuous Process
Extremely high volumes and low variety: often single product
Standard, repeat products (“runners”)
Highly capital-intensive and automated
Few changeovers required
Difficult and expensive to start and stop the process
Product layout: usually flow along conveyors or pipes

24. Processdesign 3: Vad vill vi att andra företag skall utföra i produktionsprocessen? (supply network design)

25. Traditionell logistiksyn

26. Traditionellt logistikflöde

28. Supply Chain Management
Process design involves designing not only processes internal to the company
Designing related processes that take place in other companies is also an issue for operations managers
The company is in fact a part of a wider network
In the network of companies, meta-processes must be designed (supply chains)

29. Advantages of taking a network perspective
Vertical integration
Location of the H
ow much of the network
operation
should the operation seek
Where should the
to own?
operation be located?
Taking a network
perspective helps
businesses address
the three key network
design decisions.
Balance of capacity
How should capacity be
managed in the long-term?

30. Total and Immediate Supply Networks
“Second tier” Suppliers
“First tier” Suppliers
“Second tier” Customers
“First tier” Customers
The Operation
Supply side of the network
Demand side of the network
The Immediate Supply Network
The Total Supply Network
Internal Supply Networks

31. Firms in the same industry may configure their supply networks in different ways
Home Office Market
Corp. Market
Suppliers
Retailers
COMPAQ
DELL

32. Operations performance should be seen as a whole supply chain issue
Benefits of looking at the whole supply chain include
Puts the operation into its competitive context
Helps to identify the key players
Shifts emphasis to the long term
Sensitizes the operation to macro changes

33. Direction, extent and balance of vertical integration
Should excess capacity be used
to supply other companies?
Raw
Component
Assembly
material
Wholesaler
Retai
ler
maker
operation
suppliers
Narrow process span
Wide process span Up
stream
Downstream v
ertical v
ertical
integration
integration

34. The location of operations
Supply-side
Demand-side
Operation
factors
factors
Labour costs
Labour skills
Land costs
Suitability of
site
Energy costs
Image
Transportation
costs
Convenience
for customers
Community
factors

35. Outsourcing decisions affect
Quality
Speed
Dependability
Flexibility
Costs

36. Relative Costs in a “Do vs Buy” Decision
In-source
opportunity
Out-source
indirect
supplier profit
“allocated”
direct
market price
coordination
risk
coordination
coordination
risk
risk
Buyer Costs