Operations

Management
Process Strategy and
Capacity Planning

Tintu
Thomas
 PROCESS PLANNING

A production process is a
series of manufacturing
operations performed at work
stations to achieve the design
specifications of planned output

Process planning is concerned

with planning the
transformation processes
needed to convert the raw-
materials into finished
1
products.
Process planning consists of
two parts namely:

OPERATION DESIGN
 PROCESS DESIGN

Both stages provide information on

process which will be required to
effectively utilize existing equipment and
machinery and to determine what new
equipment and machinery would be
required.
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 PROCESS DESIGN
•It is concerned with the overall sequences
of operations
required to achieve the product
specifications.
•It specifies the type of work stations that
are to be used,
the machines and equipments necessary, to
determine what new equipment should be
used etc.
The sequences of operations in the
manufacturing
process are determined by

1. Nature of the product 3

2. Materials used
1.Analyze the print to get an overall
picture of what is wanted.

2.Make recommendations to or consult

with product engineers on product
design changes.

3.List the basic operations required to

produce the part to the drawing or
specification

4.Determine the best way to combine

the operations and put them in
sequence
4
5.Specify the gauging required for the
 Production Process
Flow Diagram
Custo
mer
Purchasing Customer
(order inks, sales
paper, other representat
supplies) ive
take order
Vendo Prepress
rs Department
Accounti Receivi (Prepare
ng ng printing plates
and negatives)
Warehousin Printing
g Department
(ink, paper,
etc.) Gluing,
Collatin
g binding,
Departm stapling,
ent labeling
Polywra
Information
p
flow Departm
Material flow ent
Shippi
ng
5
 Types of Process
Strategies
♦ Process strategies follow a
continuum
♦ Within a given facility, several
strategies may be used
♦ Process- Repetitive-
These strategies are oftenProduct-
Focused Focused Focused
classified as:

Continuu
m
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 Process-Focused
Strategy
♦ Facilities are organized by
process.
♦ Similar processes are
together.
♦ Low volume, high variety
products. Product
Operati
♦ ‘Jumbled’
Other names flow. on 1
A
2 33
1 2
♦ Intermittent process
♦ Job shop
7 Product
B
Process-Focused Strategy
Examples

Bank
© 1995

Hospital
Corel
Corp.

Machin
© 1995 Corel Corp. e Shop
© 1995 Corel Corp.

8
 Process Focused
Strategy -
Pros & Cons
♦ Advantages
♦ Greater product flexibility
♦ More general purpose equipment
♦ Lower initial capital investment
♦ Disadvantages
♦ More highly trained personnel
♦ More difficult production planning &
control
♦ Low equipment utilization (5% to 25%)

9
 Repetitive Focused
Strategy
♦ Facilities often organized by
assembly lines
♦ Characterized by modules
♦ Parts & assemblies made previously
♦ Modules combined for many
output options
♦ Other names
♦ Assembly line
♦ Production line

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 Repetitive Focused
Strategy -
Considerations
♦ More structured than process-focused,
but less structured than product focused

♦ Using modules, it enjoys economic

advantage of continuous process, and
custom advantage of low-volume, high-
variety model.

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 Repetitive-Focused
Strategy - Examples
Fast
Clothes
Foo
Dryer
d
McDonald’s
McDonald’s
over 95 billion served
over 95 billion served

Truck
© 1995 Corel Corp.

© 1984-1994 T/Maker Co.

© 1995 Corel Corp.

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13
 Product-Focused
Strategy
♦ Facilities are organized by product
♦ High volume, low variety products
♦ Part of:
♦ Discrete unit manufacturing
♦ Continuous process manufacturing

♦ Also known as Products A &

B
♦ Line flow production 11 22 33
♦ Continuous Operatio
production n
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 Product-Focused
Strategy
Pros & Cons
♦ Advantages
♦ Lower variable cost per unit
♦ Lower but more specialized labor skills
♦ Easier production planning and control
♦ Higher equipment utilization (70% to 90%)
♦ Disadvantages
♦ Lower product flexibility
♦ More specialized equipment
♦ Usually higher capital investment

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 Product-Focused
Examples
Soft Drinks
(Continuou
s, then
Discrete)

© 1995
Corel Corp.

Light Bulbs
© 1984-1994 T/Maker Co. (Discrete)
Paper
(Continuous) © 1995 Corel Corp.

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BASI PROCESS FOCUS
REPETITIVE FOCUSPRODUCT
S FOCUS
ProducSmall quantity Long runs, Product: Large
t And large variety
usually standardized
quantities, small
variety
EquipmGeneral purpose Special-purpose
Special assembly line;
ent

Operators broadly
Employees modestlyOperators less
Skills
skilled trained broadly skilled

Work Many job instruction Few work orders

Repetitive operations
flow and job instruction a
standardization

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 Tools for Process
Design
♦ Flow Diagrams
♦ Process Charts
♦ Time-Function/Process
Mapping
♦ Service Blueprinting

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 Time Function Map

Order Recei
Customer Produ ve
ct produ
Proce ct
Sales ss
Order
Order

Producti Wait
on
control
Order

Product
Plant A Print
WIP

Product
Warehouse Wait Wait Wait

Product
WIP
Plant B Extru
WIP
WIP

de

Transport Move Move

12 days 13 days 1 day 4 days 1 day 10 days 1 day 9 days 1 day

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 Process Reengineering
♦ The fundamental rethinking and radical redesign of
business processes to bring about dramatic
improvements in performance and requires
reexamination of the basic process and its objectives.
♦ Focuses on activities that cross boundaries.
The process engineer should therefore:
♦ Determine the method of manufacturing a product
♦ Establish the sequence and the type of operations
involved
♦ Select the tools and equipments required and
♦ Analyze how the manufacturing of the product will fit
into the facilities

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 Operations Design
It is concerned with the design of
the individual manufacturing
operation.
It consists of examining the man
mixing relationship in the
manufacturing process for
converting the raw materials into
the finished products or semi
finished products.
Operation design must specify
how much of man and machine
time is required for
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each unit
Thank You!!