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Process
• A process is a sequence of activities that is
intended to achieve some result, for example,
to create added value for the customers
Process Planning
• Concerned with planning the conversion
processes needed to convert the raw material
into finished products.
Process Design
• Concerned with the overall sequences of
operations required to achieve the product
specifications
PROCESS SELECTION AND STRATEGY
• PROCESS SELECTION:– Refers to the way production of goods or services is
organized.• PROCESS STRATEGY:
– An organization's approach to selection of the process for the conversion of resource inputs into outputs.
– Key aspects in process strategy include:• Make or buy decisions• Capital intensity and• Resource flexibility
PROCESS STRATEGY
Make or Buy is the 1st step of
process planning.
Factors considered in make
or buy decisions: Available capacity
Expertise
Quality consideration
Nature of demand
Cost
Capital Intensity: is the mix
of equipment and human
skills in a production process.
Resource Flexibility: it is the
ease with which equipment
and works can handle a wide
variety of products , levels of
output, duties and function.
VERTICAL INTEGRATION
It is the amount of production and distribution chain, from suppliers
of the components to the delivery of products and services to
customers, which is brought under the ownership of the firm.
The degree to which a firm needs to be vertically integrated
determines how many production process needs to be planned and
designed to be carried out in-house or by outsourcing.
Vertical integration is based on make or buy decisions. Where make
is more integration and buy means more outsourcing
TYPESOF VERICAL INTEGRATION
• Backward integration: moving towards the
sources of raw material.
• Forward integration: the firm acquires the
channel of distribution
Process Flowcharting Defined
• Process flowcharting is the use of a diagram to
present the major elements of a process
• The basic elements can include tasks or operations,
flows of materials or customers, decision points, and
storage areas or queues
• It is an ideal methodology by which to begin analyzing
a process
Flowchart Symbols
Tasks or operationsExamples: Giving an admission ticket to a customer, installing a engine in a car, etc.
Examples: Giving an admission ticket to a customer, installing a engine in a car, etc.
Decision PointsExamples: How much change should be given to a customer, which wrench should be used, etc.
Examples: How much change should be given to a customer, which wrench should be used, etc.
Cond…
Examples: Sheds, lines of people waiting for a service, etc.
Examples: Sheds, lines of people waiting for a service, etc.
Examples: Customers moving to a seat, mechanic getting a tool, etc.
Examples: Customers moving to a seat, mechanic getting a tool, etc.
Storage areas or queues
Flows of materials or customers
Cond…
• A buffer refers to a storage area between stages where the output of a stage is placed prior to being used in a downstream stage
Stage 1 Stage 2
Buffer
Multi-stage Process with Buffer
Terms Used• Blocking
– Occurs when the activities in a stage must stop because there is no place to deposit the item just completed
– If there is no room for an employee to place a unit of work down, the employee will hold on to it not able to continue working on the next unit
• Starving– Occurs when the activities in a stage must stop because
there is no work – If an employee is waiting at a work station and no work is
coming to the employee to process, the employee will remain idle until the next unit of work comes
Cond…
• Bottleneck– Occurs when the limited capacity of a process causes work to pile
up or become unevenly distributed in the flow of a process
– If an employee works too slow in a multi-stage process, work will
begin to pile up in front of that employee. In this is case the
employee represents the limited capacity causing the bottleneck.
• Pacing– Refers to the fixed timing of the movement of items through the
process
Process Performance Metrics• Operation time = Setup time + Run time
• Throughput time = Average time for a unit to move through the system
• Cycle time = Average time between completion of units
• Throughput rate = 1 .
Cycle time
• Efficiency = Actual output
Standard Output
PRODUCT
• It is anything that can be offered in the market
for attention, acquisition, use or consumption
PRODUCT DESIGN
• Concerned with form and function of a product.
• It refers to the arrangement of elements or parts that collectively form a product.
OBJECTIVE OF PRODUCT DESIGN
• The overall objective is profit generation in the long run.
• To achieve the desired product quality.• To reduce the development time and cost to
the minimum.• To reduce the cost of the product.• To ensure producibility or manufacturability
(design for manufacturing and assembly).
FACTORS INFLUENCING PRODUCT DESIGN
i. Customer requirements
ii. Convenience of the operator or user
iii. Trade off between function and form
iv. Types of materials used
v. Work methods and equipment's
vi. Cost/Price ratio
vii. Product quality
viii. Process capability
ix. Effect on existing products
x. Packaging
Characteristics of Good Product Design
i. Function or performance
ii. Appearance or aesthetics
iii. Reliability
iv. Maintainability
v. Availability
vi. Producibility
vii. Simplification
viii. Standardization
ix. Specification
x. Safety
TECHNOLOGY USED IN DESIGN
• CAD -Computer Aided Design
– Assists in creating and modifying designs
• CAE -Computer Aided Engineering
– Tests & analyzes designs on computer screen
• CAD/CAM -Design & Manufacturing
– Automatically converts CAD data into processing
instructions for computer
Benefit of CAD
• Produces better designs faster• Builds database of designs and creates
documentation to support them• Shortens time to market• Reduces time to manufacture• Enlarges design possibilities• Enhances communication and promotes
innovation in design teams
BASIC CONSIDERATION IN DESIGN
• Form Design: how a product looks like
• Function Design : how a product performs
– Based on Reliability and Maintainability
– Reliability
Design for Manufacturability
• Traditional Approach
– “We design it, you build it” or “Over the wall”
• Concurrent Design/ Engineering
– “Let’s work together simultaneously”
– Merits of Concurrent Design:• Improves quality of early design decisions• Decentralized -suppliers complete detailed design • Incorporates production process• Often uses a price-minus system• Scheduling and management can be complex as tasks are
done in parallel
1. QFD- a process that helps a company determine the
products characteristics important to the customer and
to evaluate its own products in relation to others.
2. HOUSE OF QUALITY- a matrix that helps a product
design team translate customer requirement into
operating and engineering goals.
3. VALUE ANALYSIS- analysis with the purpose of
simplifying products and process by achieving a
equivalent or better performance at a lower cost.
Meaning of product planning and development
• It is the process of finding out new ideas for
producing new products and then introducing
them in the market.
• It also includes improving the existing
products
Characteristics of product development
• Product Quality
• Product Cost
• Development Time
• Development Cost
• Development Capability
8 STEPS OR 6 STAGES OF PROUCT DEVELOPMENT
Idea generation
Idea screening
Concept development
Marketing Strategy
Business analysis
Product design and
development
Test marketing
Commercialization
STAGE-1
STAGE-2
STAGE-6STAGE-5
STAGE-3
STAGE-4
6 stages of product development
• STAGE-1 Planning
• STAGE-2 Concept Development
• STAGE-3 System-Level design
• STAGE-4 Design Detail
• STAGE-5Testing and Refinement
• STAGE-6 Production Ramp-up
Challenges of product development
• Trade offs
• Details
• Time pressure
• Creation
• Satisfaction of needs
• Team spirit
Measuring Product Development Performance
Measures•Freq. Of new products introduced•Time to market introduction•Number stated and number completed•Actual versus plan
•Freq. Of new products introduced•Time to market introduction•Number stated and number completed•Actual versus plan
Time-to-marketTime-to-market
ProductivityProductivity
QualityQuality
•Cost of materials and tooling per project•Engineering hours per project•Actual versus plan
•Cost of materials and tooling per project•Engineering hours per project•Actual versus plan
•Design-performance and customer satisfaction•Conformance-reliability in use
•Design-performance and customer satisfaction•Conformance-reliability in use
Performance Dimension
Key Terms:1. CONTRACT MANUFACTURERS-
Companies that specialize in manufacturing products for other companies and have become successful . These companies are called contract manufacturers. Thus simply we can put that as a contract manufacturer is an organization capable of manufacturing or purchasing all the components needed to produce a finished product or services.
2. CORE COMPETENCY-a company’s core competency is the one thing that it can do better than its competitors. Core competency gives a long term competitive Advantage to the company
3. Concurrent engineering- emphasizes cross functional integration and concurrent development of a product and its associated processes
Project Assignment
Visit a nearby branch of a bank and observe
the various inputs and outputs in the
transformation process. Make a schematic
diagram to represent the transformation
process including the random disturbances
and the feedback mechanism. Find out the
quality monitors for monitoring the quality of
inputs to the process. What type of process
design is followed by the bank.