Process Selection and Design Dr. Richard Jerz

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1 Process Selection and Design Dr. Richard Jerz 1

2 Learning Objectives Explain the strategic importance of process selection. Explain the influence that process selection has on an organization. Explore process alternatives Describe production and process technologies Examine process analysis tools Define some modern process technologies 2

3 Process Selection and System Design Forecasting Capacity Planning Facilities and Equipment Product and Service Design Technological Change Process Selection Layout Work Design 4

4 Process Strategy Key aspects of process strategy Capital intensive equipment/labor Long term commitment Technology Effects Cost Process and product flexibility, adjust to changes Design Volume Technology Efficiency 5

5 Major Implications Capacity planning Layout of facilities Equipment Design of work systems 6

6 How Do We Produce Goods/Services Make or Buy? Available capacity Expertise Quality Considerations The nature of demand Cost 7

7 Process Selection Volume Expected output Variety How much Flexibility What degree Job Shop Batch Repetitive Continuous 8

8 Product Process Selection 9

9 Process, Volume, and Variety 10

10 Process and Characteristics 11

11 Process Technology Strategy Technology and Innovation: The application of scientific discoveries to the development and improvement of products, services and operations processes. 16

12 Kinds of Technology Operations management is primarily concerned with three kinds of technology: Product and service technology Process technology Information technology All three have a major impact on: Costs Productivity Competitiveness 17

13 Technology and Competitive Advantage Innovations in Products and services Cell phones iphone Wireless computing Process technology Increasing productivity Increasing quality Lowering costs 18

14 Automation Technology Automation: Machinery that has sensing and control devices that enables it to operate Fixed automation Programmable automation Examples Computer aided design and manufacturing systems (CAD/CAM) Numerically controlled (NC) machines Robots Flexible manufacturing systems (FMS) Computer integrated manufacturing (CIM) 19

15 Process Analysis Tools Crossover Chart Shows which alternative is best at a production volume Flow Diagrams Shows the movement of materials Time Function Mapping Shows flows and time frame Value Stream Mapping Shows flows and time and value added beyond the immediate organization Process Charts Uses symbols to show key activities 20

16 Crossover Charts: Select the Process with Lowest Cost How is cost determined? Accounting methods Engineering economics/financial analysis Resource consumption model (RCM) 21

17 Break even (crossover) 22

18 Process Flow Diagram 24

19 Process Chart 25

20 Time Function Mapping 26

21 Value Stream Map 27

22 Modern Production Technologies Machine technology Robots Vision system Process control, people machine interfaces Flexible manufacturing systems (FMS) Automated storage and retrieval systems (ASRS) Automatic identification systems (AIS) Computer integrated manufacturing (CIM) 28

23 Machine Technology Increased precision Increased productivity Increased flexibility Improved environmental impact Reduced changeover time Decreased size Reduced power requirements 29

24 Robots 30

25 Robots Perform monotonous or dangerous tasks Perform tasks requiring significant strength or endurance Generally enhance consistency and accuracy 31

26 Robotic Welding 32

27 Vision Systems Particular aid to inspection Consistently accurate Never bored Modest cost Superior to individuals performing the same tasks 33

28 Process Control Example 34

29 Process Control 35

30 Flexible Manufacturing Systems (FMS) Computer controls both the workstation and the material handling equipment Enhance flexibility and reduced waste Can economically produce low volume at high quality Reduced changeover time and increased utilization Stringent communication requirement between components 36

31 FMS Examples 37

32 Automated Storage and Retrieval Systems (ASRS) Automated placement and withdrawal of parts and products Reduced errors and labor Particularly useful in inventory and test areas of manufacturing firms 38

33 Automated Guided Vehicle (AGV) Electronically guided and controlled carts Used for movement of products 39

34 Barcode RFID Automatic Identification Systems Improved data acquisition Reduced data entry errors Increased speed Increased scope of process automation 40

35 Computer Integrated Manufacturing (CIM) Extension of flexible manufacturing systems Backwards to engineering and inventory control Forward into warehousing and shipping Can also include financial and customer service areas Reducing the distinction between lowvolume/high variety, and high volume/lowvariety production 41

36 CIM Wheel (SME) 42

37 Technology in Services Computers Barcode & sensors (RFID) Internet 43

Process Strategy and Sustainability

7 Process Strategy and Sustainability PowerPoint presentation to accompany Heizer and Render Operations Management, 10e Principles of Operations Management, 8e PowerPoint slides by Jeff Heyl 7-1 Process