Copyright 2006 John Wiley & Sons, Inc. Beni Asllani University of Tennessee at Chattanooga Process and Technologies Operations Management - 5 th Edition Chapter 6 Roberta Russell & Bernard W. Taylor, III
Copyright 2006 John Wiley & Sons, Inc.6-2 Process Planning Process a group of related tasks with specific inputs and outputs Process design tasks need to be done and coordinated among functions, people, and organizations Process planning converts designs into workable instructions for manufacture or delivery Process strategy an organization’s overall approach for physically producing goods and services
Copyright 2006 John Wiley & Sons, Inc.6-3 Make or Buy Decisions Cost Capacity Quality Speed Reliability Expertise
Copyright 2006 John Wiley & Sons, Inc.6-4 Sesame seed top bun Beef patty SaltCheeseLettuceSauceOnions Middle bun Beef patty SaltCheeseLettuceSauceOnionsPickles Bottom bun Wrapper SA SA First-layer assembly Second-layer assembly Completed Big Mac Assembly Chart for a Big Mac Assembly Chart for a Big Mac
Copyright 2006 John Wiley & Sons, Inc.6-5 Part nameCrevice Tool Part No UsageHand-Vac Assembly No.520 Oper. No.DescriptionDept.Machine/ToolsTime 10Pour in plastic bits041Injection molding2 min 20Insert mold041#0762 min 30Check settings041113, 67, min & start machine 40Collect parts & lay flat051Plastics finishing10 min 50Remove & clean mold042Parts washer15 min 60Break off rough edges051Plastics finishing10 min An Operations Sheet for a Plastic Part
Copyright 2006 John Wiley & Sons, Inc.6-6 Process Analysis Process flowcharts Symbolic representation of processes Incorporate nonproductive activities (inspection, transportation, delay, storage) productive activities (operations)
Copyright 2006 John Wiley & Sons, Inc.6-7 Process Flowchart Symbols Operations Inspection Transportation Delay Storage
Copyright 2006 John Wiley & Sons, Inc.6-8 Process Flowchart of Apple Processing
Copyright 2006 John Wiley & Sons, Inc.6-9 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 CustomerWaiter Salad Chef Dinner Chef A Process Map of Restaurant Service
Copyright 2006 John Wiley & Sons, Inc.6-10 Components of e-Manufacturing
Copyright 2006 John Wiley & Sons, Inc.6-11 Capacity Decisions Capacity maximum capability to produce rated capacity is theoretical effective capacity includes efficiency and utilization Capacity utilization percent of available time spend working Capacity efficiency how well a machine or worker performs compared to a standard output level Capacity load standard hours of work assigned to a facility Capacity load percent ratio of load to capacity
Copyright 2006 John Wiley & Sons, Inc.6-12 Capacity Decisions (cont.) Capacity increase depends on volume and certainty of anticipated demand strategic objectives costs of expansion and operation Best operating level % of capacity utilization that minimizes unit costs Capacity cushion % of capacity held in reserve for unexpected occurrences