Process A collection of tasks, connected by flows of goods and information, that transforms various inputs into more valuable outputs Transparency Masters.
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Presentation on theme: "Process A collection of tasks, connected by flows of goods and information, that transforms various inputs into more valuable outputs Transparency Masters."— Presentation transcript:
1 ProcessA collection of tasks, connected by flows of goods and information, that transforms various inputs into more valuable outputsTransparency Masters to accompany Operations Management, 5E (Heizer & Render)7-88
4 Production Process Flow Diagram CustomerPurchasing(order inks, paper, other supplies)Customer sales representativetake orderVendorsPrepress Department(Prepare printing plates and negatives)AccountingReceivingWarehousing(ink, paper, etc.)Printing DepartmentCollating DepartmentGluing, binding, stapling, labelingThe most important point illustrated by this slide is that process design entails both material flow and information flow.Information flowMaterial flowPolywrap DepartmentShipping
6 Types of Process Strategies Process strategies that follow a continuumWithin a given facility, several strategies may be usedThese strategies are often classified as:Process-FocusedRepetitive-FocusedProduct-FocusedContinuumThis slide can be used to begin discussion of two points:- one seldom employs a pure process strategy (process, repetitive, or product) - but rather a strategy which has elements of each of the pure strategies - i.e., practical strategies lie along a continuum.- one seldom employs only a single strategy.
30 Fit of Process, Volume, and Variety Low-Volume(Intermittent)Repetitive Process(Modular)High-Volume(Continuous)Process focusprojects, job shops,(machine, print, carpentry)Standard RegisterMass Customization(difficult to achieve, but huge rewards)Dell Computer Co.High VarietyOne or few units per run, high variety(allows customization)Changes in modulesModest runs, standardized modulesRepetitive(autos, motorcycles)Harley DavidsonChanges in attributes (such as grade, quality, size, thickness, etc.)Long runs onlyIt may be most useful to begin discussion of this slide with the repetitive process since most student seem to have a concept of an assembly line. Once the repetitive process is introduced, one can then view changing one of the parameters, volume or length of run, and argue the need for process- or product-focus systems.Once the three types of processes have been introduced, it is probably useful to discuss precisely why the low-volume/long run, and high-volume/short run options are poor choices.Poor strategy(Variable costs are high)Product focus(commercial baked goods, steel, glass)Nucor Steel
32 Work CellsUsed when volume warrants a special arrangement of equipmentTake people and machines ordinarily dispersedArrange in a small group to focus on production of single product or group of related products
33 Work CellsA temporary assembly-line-oriented arrangement of machines and personnel in what is ordinarily a process-oriented facilityExample: job shop with rearranged machinery and personnel to produce 30 unique control panels
34 Work Cells — Some Advantages Reduced work-in-process inventoryLess floor space requiredReduced raw material and finished goods inventories requiredReduced direct labor costsHeightened sense of employee participationIncreased utilization of equipment machineryReduced investment in machinery and equipmentNote: Green & Sadowski report increased capital investment and lower machine utilizationTM