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Processes and Technologies

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Business lunch is not for lunch. (Decide what you want before ... manufacturing process converts unfinished or semi-finished ... g. Furniture making, ... – PowerPoint PPT presentation

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Title: Processes and Technologies


1
Chapter 3
  • Processes and Technologies

2
POINTS TO PONDER
  • Professional Tip 3
  • Business lunch is not for lunch.
  • (Decide what you want before you get there!)
  • Someday is not the day of the week.
  • (Be realistic!)

3
From Function to Process
Figure 4.1
4
PROCESS
5
Process
  • The activity that CONVERTS inputs into outputs.
  • It constitutes the organizations competitive
    edge.
  • It affects entire organization and its ability to
    achieve its goals.
  • It reflects the way the organization chooses to
    be in the marketplace.

TRANSFORMATION PROCESS
OUTPUTS
INPUTS
6
Process
SUPPLY CHAIN
A
ACTIVITIES
INPUTS RESOURCES AVAILABLE TO THE ORGANIZATION
B
OUTPUTS
C
N
A GROUP OF ACTIVITIES (USUALLY REPITITIVE) THAT
USE AN ORGANIZATIONS RESOURCES TO PROVIDE
SOMETHING OF VALUE
  • They underlie all activities throughout the
    organization
  • They are nested within other processes along an
    organizations supply chain

7
Linking with other Decisions
8
Process Planning and Layout Analysis
  • Process design considers alternative
    transformation forms and selects best one given
    characteristics of desired outputs.
  • Layout analysis seeks to maximize the efficiency
    or effectiveness of operations.

9
Volume/Variety Considerations Operations
Strategy
  • High volume indicate automated mass production
  • High variety implies use of skilled labor and
    general purpose equipment
  • Make-to-stock versus make-to-order
  • Assemble-to-order

10
Process Planning Strategy
  • Process planning is determined by an
    organizations process strategy.
  • Process strategy Overall approach to producing
    goods and services
  • Process planning defines
  • Capital intensity
  • Process flexibility
  • Vertical integration
  • Customer involvement

11
Common Manufacturing Processes
12
Manufacturing Processes
  • A manufacturing process converts unfinished or
    semi-finished materials to finished products
    often using a machine tool.
  • A machine tool is an assembly of related
    mechanisms on a frame or bed that together
    produce the desired result.
  • An operation is a distinct action performed to
    produce a desired result or effect (relationship
    between I-P-O).

13
(No Transcript)
14
Common Manufacturing Processes
A. Forming Processes Casting Forming objects by
putting liquid viscous material into a
prepared mold or form. Bending The process by
which bars, rods, wire, tubing, and sheet metal
are bent into shapes. Rolling The process by
which metal is squeezed between two revolving
rolls. Extrusion Forming metal (often aluminum)
or plastics out through specially formed
discs. Forging Forming of metal (usually hot) by
individual and intermittent applications of
pressure, instead of by applying continuous
pressure as in rolling.
15
Common Manufacturing Process
  • B. Machining Processes
  • Boring Enlarging of a hole that has previously
    been drilled
  • Drilling Producing a hole by forcing a rotating
    drill against it
  • Milling Progressive removal of small
    increments of metal from the work- piece
    as it is fed slowly to a cutter rotating at
    high speed
  • Turning Producing an external cylindrical
    surface through the relative action between
    a rotating workpiece and longitudinally fed,
    single- point cutting tool

16
Machine Tools
17
Machine Tools
  • Machine tools are an example of conventional,
    general purpose equipment
  • They can produce many different shapes and sizes
    of outputs by changing the tool used to cut the
    material

18
Skills and Flexibility
  • Skilled machinist often used their experience to
    make the decision during the machining process.
    It is a tedious and time consuming process
  • The flexibility requires that the operator know
    how to.
  • set up machine
  • select and install proper material
  • determine the depth of cut
  • set the correct speed
  • stop the machine when required process has been
    completed
  • determine tool wear

19
Numerically controlled (NC) machines
  • They operations of the machines are numerically
    controlled by instructions on a punched tape.
  • Developed by MIT in 1950s
  • With the NC machines, operators do not have to
    determine machine settings, but must still select
    and install tools and monitoring tool wears and
    etc.

20
Computer Numerical controlled (CNC) machines
  • Controlled by attached computer
  • They are NC machines controlled by software
    instructions in the memory of a computer
  • The NC machine tools are equipped with a screen
    and keyboard for editing NC programs at the
    machine
  • This facilitates the access, editing, and loading
    of operating instructions and collection of
    processing information and the control of
    processing quality.

21
  • Direct Numerical Control (DNC) machines
  • Several NC machines controlled by single computer
  • DNC machine tools can be of different types and
    can be programmed to carry out different tasks.

22
Flexible Manufacturing Systems (FMS)
23
Flexible Manufacturing Systems (FMS)
  • Several NC machines controlled by single computer
    and aligned with material handling system.
  • Programmable machine tools
  • Controlled by common computer network
  • Combines flexibility with efficiency
  • Reduces setup queue times
  • Includes automated material handling

24
Flexible Manufacturing System
25
Automated Material Handling System
26
Automated Material Handling System
  • Conveyors
  • Automated guided vehicle (AGV)
  • Automated storage retrieval system (ASRS)

27
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

28
e-Manufacturing
29
e-Manufacturing
  • Real-time sharing of data with trading partners
    and customers to drive collaborative decisions
  • CAD - uses software to create modify designs
  • GT- classifies designs to benefit from prior
    experience
  • STEP - sets standards for communication
  • CAPP - creates processing instructions for CAM
  • CAM - uses programmable automation in
    manufacturing

30
Components of e-Manufacturing
Figure 4.14
31
Types of Processes
32
Types of Processes
  • Processes can be classified into
  • Projects A non-routine production for an
    individual customer with unique set of
    objectives to be accomplished in a limited
    time frame. (e.g. Construction of a building,
    planning a concert, building an aero-plane,)
  • Batch Production Processes items in small group
    or batches - intermittent. (e.g. Furniture
    making, machine shops, )
  • Mass production Produces large volumes of a
    standard product for a mass market. (e.g.
    automobiles, televisions, ).
  • Continuous process Use to produce very high
    volume commodity products, the system is
    highly automated and running continuously for
    24 hours per day. (e.g. Steel making, paper,
    foodstuffs, )

33
1. Projects
  • A non-routine production for an individual
    customer with unique set of objectives to be
    accomplished in a limited time frame.
  • e.g. construction of a building, planning a
    concert, building an aero plane, etc.
  • Characteristics
  • Intermittent
  • Few customers with high involvement
  • Very flexible process (due to different design in
    different projects)
  • Concern on Engr. Changing Orders (due to long
    duration of work, changes in customer
    preferences, in technology, in design and
    process)
  • Work in teams
  • Close customer contact

34
2. Batch Production
  • Processes items in small group or batches -
    intermittent.
  • (e.g. Furniture making, machine shops, )
  • Characteristics
  • Works are not continuous - Intermittent
  • Moderate volume of goods or services
  • Flexibility in machines and manpower is needed
  • Most involved fabrication (machining)

35
3. Mass Production
  • Produces large volumes of a standard product for
    a mass market.
  • (e.g. automobiles, televisions, ).
  • Characteristics
  • Continuous and highly repetitive
  • Demand is stable
  • Volume of order is high
  • Product is standard
  • Capital intensive with specialized equipment
    (only slight flexibility)
  • Low labor utility
  • Assembly lines

36
4. Continuous Process
  • Use to produce very high volume commodity
    products, the system is highly automated and
    running continuously for 24 hours per day.
  • (e.g. Steel making, paper, sugar, foodstuffs, )
  • Characteristics
  • High volume of standardized products or services
  • Highly standardized goods or services (no variety
    in output)
  • Need no flexibility in equipment
  • Low skill workers
  • Very high capital investment

37
Types of Processes - Summary
  • PROJECT BATCH MASS CONTINUOUS
  • Product Unique Made to order Made to stock
    Commodity
  • Customer One-at-a-time Few individuals Mass
    market Mass market
  • Demand Infrequent Fluctuates Stable Very stable
  • Volume Very low Low to med High Very high
  • No. of different Infinite Many, varied Few Very
    low
  • products
  • System Long-term Discrete, job Repetitive,
    Process industry
  • assembly lines
  • Equipment Varied General-purpose Special-purpose H
    ighly automated
  • Type of work Contracts Fabrication Assembly Mix,
    treat, refine
  • Skills Experts, Wide range Limited
    range Equipment
  • craftspeople of skills of skills monitors
  • Advantages Custom work, Flexibility, Efficiency, H
    ighly efficient
  • technology quality speed, low cost large
    capacity
  • Dis- Nonrepetitive, Costly, slow, Capital
    investment, Difficult to
  • advantages small customer difficult to lack of
    change
  • base, expensive manage responsiveness

Table 4.1
38
Process Selection
39
Process Selection with 1. Break-Even Analysis
Total cost fixed cost total variable
cost TC cf vcv Total revenue volume x
price TR vp Profit total revenue - total
cost Z TR - TC vp - (cf vcv)
cf fixed cost v volume (i.e., number of units
produced and sold) cv variable cost per
unit p price per unit
40
Solving for Break-Even Volume
TR TC vp cf vcv vp - vcv cf v(p -
cv) cf v
41
Break-Even Analysis
Example 4.1
42
Break-Even Analysis
Fixed cost cf 2,000 Variable cost cv
5 per raft Price p 10 per raft
The break-even point is
Example 4.1
43
Break-Even Analysis
Fixed cost cf 2,000 Variable cost cv
5 per raft Price p 10 per raft
The break-even point is
Example 4.1
44
Break-Even Analysis
Fixed cost cf 2,000 Variable cost cv
5 per raft Price p 10 per raft
The break-even point is
Example 4.1
45
Choosing Between Two Processes
Below 2,667, choose A Above 2,667, choose B
Example 4.2
46
Choosing Between Two Processes
Example 4.2
47
Choosing Between Two Processes
Example 4.2
48
Choosing Between Two Processes
Example 4.2
49
Choosing Between Two Processes
Example 4.2
50
Point of Indifference
  • Volume where cost of A cost of B
  • Rule for choosing process
  • Above point of indifference choose process with
    lowest variable cost
  • Below point of indifference choose process with
    lowest fixed cost

51
Process Selection with 2. Flow Strategy
All of the processes lie in a continuum between
two extreme focuses - Product focus and Process
Focus
  • Process focus
  • Equipment and workforce are grouped by the
    function they perform
  • Equipment is general purpose
  • Workers have multiple skills
  • Volume is low
  • Routings vary from one order to the next
  • Flow pattern is jumbled
  • The facility can produce a wide range of
    products
  • Product Focus
  • The equipment and workforce are group by the
    product or service to be produced
  • Equipment is special purpose
  • Workers have few skills
  • Volume is high
  • Single routing, material may be moved by
    conveyor
  • The facility can produce a high volume of just
    few products

52
Process Selection with 3. Customization Versus
Standardization Strategy
53
Process Planning
54
Process Planning
  • Make-or-buy decisions
  • Process selection
  • Specific equipment selection
  • Process plans
  • Process analysis

55
Make-or-Buy Decisions
  • Factors affected decision making process
  • 1. Cost
  • 2. Capacity
  • 3. Quality
  • 4. Speed
  • 5. Reliability
  • 6. Expertise

56
Specific Equipment Selection
  • Issues to consider
  • Purchase cost
  • Operating cost
  • Annual savings
  • Revenue enhancement
  • Replacement analysis
  • Risk and uncertainty
  • Piecemeal analysis

57
Process Plans
  • Process plan includes
  • Blueprints- detailed drawings of product design
  • A bill of material- A list of the materials and
    parts that go into a product
  • An assembly diagram an illustration showing how
    various parts combine to form the final product
  • Assembly chart/ product structure diagram- A
    schematic diagram that shows the relationship of
    each component part to its parent assembly
  • Operations process chart- A list of the
    operations to be performed in fabricating a part
    along with the time required to complete each
    operation, special tools, and machine needed for
    the operations

58
Process Plans
59
Product Structure Diagram
Packaged
Hand-Vac
Upholstery
Dusting
Crevice
tool
tool
tool
Screw
Forward housing assembly
Rear housing assembly
lock washer
assembly
60
Operations Process Chart
Figure 4.3
61
Process Analysis
  • The systematic examination of all aspects of a
    process to improve its operation. The objective
    is to make a process
  • Faster
  • More efficient
  • Less costly
  • More responsive
  • Basic tools
  • Process flowchart
  • Process diagrams
  • Process maps

62
Process Flowchart Symbols
63
Process Flowchart
Figure 4.4
64
Process Diagram
Figure 4.5
65
Process Map
66
Process Improvement
67
Continuous Improvement and Breakthroughs
Figure 4.9
68
Steps For Process Improvement
FOLLOW PROCESS
DEFINE DOCUMENT PROCESS
ESTABLISH MEASURE
MEASURE PERFORMANCE
IDENTIFY IMPLEMENT IMPROVEMENT
69
Process Reengineering
Figure 4.10
70
High-Level Process Map
Figure 4.11
71
Principles for Redesigning Processes
  • Remove waste, simplify, consolidate
  • Link processes to create value
  • Let the swiftest and most capable execute
  • Flex the process
  • Capture information digitally and propagate

Table 4.2
72
Principles for Redesigning Processes
  • Provide visibility through information about
    process status
  • Fit the process with sensors and feedback loops
  • Add analytic capabilities
  • Connect, collect and create knowledge around the
    process
  • Personalize the process

Table 4.2
73
Process Technology
74
Information Technology
  • Management Information Systems (MIS)
  • Move large amounts of data
  • Decision Support Systems (DSS)
  • Add decision making support
  • Expert System
  • Recommend decision based on expert knowledge

75
Decision Support System
76
Decision Support System
77
Decision Support System
Figure 4.12
78
Advanced Communications
  • Electronic data interchange (EDI)
  • Internet, extranets
  • Wireless communications
  • Teleconferencing telecommuting
  • Bar coding, RFT
  • Virtual reality
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