© 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Chapter 6 Process Planning, Analysis, and Reengineering

2000 by Prentice-Hall, Inc2 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Process Strategy  Overall approach to producing goods & services  Defines:  capital intensity  process flexibility  vertical integration  customer involvement

2000 by Prentice-Hall, Inc3 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Types of Processes  Projects  Batch production  Mass production  Continuous production

2000 by Prentice-Hall, Inc4 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Project BatchMass Continuous Product Unique Made to order Made to stock Commodity CustomerSinglyFew individualsMass marketMass market DemandInfrequentFluctuatesStableVery stable VolumeVery lowLow to medHighVery high VarietyInfiniteMany, highLowVery low SystemLong-termIntermittentFlow linesProcess industry EquipmentVariedGeneral-purp.Special-purp.Highly automated Type of workContractsFabricationAssemblyMix, treat, refine SkillsExpertsWide rangeLimited rangeEquipment craftspeople monitors AdvantagesCustom workFlexibilityEfficiencyHighly efficient qualitysped, low costlarge capacity Disadv.NonrepeatingCostly, slowCapital invest.Difficult to change ExampleConstructionPrinting, bakeryAutos, TV’sPaint, oil, food

2000 by Prentice-Hall, Inc5 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Process Planning  Make-or-buy decisions  Process selection  Specific equipment selection  Process plans  Process analysis

2000 by Prentice-Hall, Inc6 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Make-Or-Buy Decisions 1. Cost 2. Capacity 3. Quality 4. Speed 5. Reliability 6. Expertise

2000 by Prentice-Hall, Inc7 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Process Plans  Blueprints  Bill of material  Assembly diagram  Assembly chart / product structure diagram  Operations process chart  Routing sheet

2000 by Prentice-Hall, Inc8 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Bill Of Material (unstructured) No.Part No.Part name Outlet end Handle Switch Electric cord Rear housing Motor mounting plate

2000 by Prentice-Hall, Inc9 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Product Structure Diagram Upholstery tool Crevice tool Hand-vac Dusting tool Package Packaged Hand-vac Forward housing assembly Screw & lock washer assembly Rear housing assembly

2000 by Prentice-Hall, Inc10 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Operations Process Chart Part nameTable leg Part no.2410 UsageTable Assembly No.437 Oper No.DescriptionDept.MachineTime Tools 10Saw to rough length041 20Plane to size043 30Saw to finished length041 40Measure dimensions051 50Sand052

2000 by Prentice-Hall, Inc11 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Process Flowchart Symbols Operations Inspection Transportation Delay Storage D

2000 by Prentice-Hall, Inc12

2000 by Prentice-Hall, Inc13 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Continuous Improvement and Breakthroughs

2000 by Prentice-Hall, Inc14 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Process Reengineering Customer requirements data Strategic directive Goals & specifications for process performance High-level process map Detailed process map Pilot study of new design Full-scale implementation Benchmark data Design principles Key performance measures Baseline analysis Innovative ideas Model validation

2000 by Prentice-Hall, Inc15 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Design Principles For Reengineering 1. Organize around outcomes, not tasks 2. Capture information once, at the source 3. Centralize resources with information technology 4. Link parallel subprocesses 5. Design to do work right the first time 6. Remove complexity 7. Identify information & technology levers

2000 by Prentice-Hall, Inc16 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Techniques For Generating Innovative Ideas  Vary entry point to a problem  Draw analogies  Change your perspective  Try inverse brainstorming  Chain forward as far as possible  Use attribute brainstorming

2000 by Prentice-Hall, Inc17 Ch © 2000by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Information Technology  Management information system (MIS)  move large amounts of data  Decision support system (DSS)  add decision making support  Expert system  recommend decision based on expert knowledge

2000 by Prentice-Hall, Inc18 Technology Tools for Process Improvement  Artificial Intelligence  Advanced Communication  Manufacturing Technology  Flexible Manufacturing System  Robotics

2000 by Prentice-Hall, Inc19 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Artificial Intelligence  Neural networks  emulate interconnections in brain  Genetic algorithms  based on adaptive capabilities in nature  Fuzzy logic  simulate human ability to deal with ambiguity

2000 by Prentice-Hall, Inc20 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Advanced Communications  Electronic data interchange (EDI)  Internet  Wireless communications  Teleconferencing & telecommuting  Bar coding  Virtual reality

2000 by Prentice-Hall, Inc21 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Manufacturing 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

2000 by Prentice-Hall, Inc22 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 2/e Automated Material Handling  Conveyors  Automated guided vehicle (AGV)  Automated storage & retrieval system (ASRS)

2000 by Prentice-Hall, Inc23 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Flexible Manufacturing Systems (FMS)  Programmable machine tools  Controlled by common computer network  Combines flexibility with efficiency  Reduces setup & queue times

2000 by Prentice-Hall, Inc24 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Flexible Manufacturing System Parts Finished goods LoadUnload Computer control room Terminal Machine Tools Conveyor Pallet

2000 by Prentice-Hall, Inc25 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Robotics  Programmable manipulators  Follow specified path  Better than humans with respect to  hostile environments  long hours  consistency

2000 by Prentice-Hall, Inc26 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Robot Parts  Controller  hardware, software, power source  Manipulator  robot arm  End-effector  “hand”

2000 by Prentice-Hall, Inc27 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Computer Integrated Manufacturing (CIM)  Integration of design, manufacture & delivery via computer technology  CAD - uses software to create & modify designs  CAM - uses programmable automation in manufacturing  CAE - links functional design to CAD form design  CAPP - creates processing instructions for CAM  GT- classifies designs to benefit from prior experience

2000 by Prentice-Hall, Inc28 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Components Of CIM CIM Product design Manufacture Process planning Systems management RoboticsFMS NC/CNC/ DNC Cells and centers Automated inspection AGV, ASRS JIT/ kanban DSS/ES/ AI LAN, TOP, satellites TQM Bar codes, EDI MRP GTCAECAD IGES, PDES, DMIS DFM Cellular manufacturing MAP, STEP CAD/CAM CAPP

2000 by Prentice-Hall, Inc29 Ch © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Adoption Of Technology  Technology Readiness  Need well-designed products & efficient processes  Technology Design  Know what to automate  Technology Selection  Choose the right level  Technology Integration  Have a strategy for incremental automation