21/10/2021

PROCESS PLANNING

OPERATIONS & SUPPLY CHAIN  Process

 any part of an organization that takes inputs and
MANAGEMENT transforms them into outputs
MBA TERM-II
(2021-22)

 Process strategy
 an organization’s overall approach for physically
SESSION 3 producing goods and services
PROCESS DESIGN & ANALYSIS
 Process planning
 converts designs into workable instructions for manufacture
or delivery
Dr. Devendra Kumar Pathak
(Ph.D., IIT Delhi)
Assistant Professor,
Operations Management & Decision Sciences,
Indian Institute of Management (IIM) Kashipur 6-2

HORIZONTAL VS. VERTICAL INTEGRATION PROCESS STRATEGY SELECTION

 Projects
 one-of-a-kind production of a product to customer order

 Batch production
 process many different jobs at the same time in groups or
batches

 Mass production
 produce large volumes of a standard product for a mass
market

 Continuous production
 used for very-high volume commodity products
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PRODUCT-PROCESS MATRIX TYPES OF PROCESSES

Paint, chemicals,
foodstuffs PROJECT MASS
BATCH CONT.
(Job Shop) (Repetitive)

Automobiles, Make-to- Make-to-

Type of
televisions, Unique order stock Commodity
computers product
(customized) (standardized )

One-at-a- Few
Type of Mass Mass
customer time individual
market market
customers
Machine shops,
print shops,
bakeries Product
demand Infrequent Fluctuates Stable Very stable

Construction,
Shipbuilding
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TYPES OF PROCESSES TYPES OF PROCESSES

PROJECT BATCH MASS CONT. PROJECT BATCH MASS CONT.

Demand Low to General- Special- Highly

Very low High Very high Equipment Varied
volume medium purpose purpose automated

No. of Primary Mixing,

different Infinite Many, Specialize
Few Very few type of Fabrication Assembly treating,
products variety varied work d contracts
refining

Repetitive, Continuous, Experts, Limited

Production Long-term Discrete, Worker Wide range Equipment
system assembly process skills crafts- range of
project job shops of skills monitors
lines industries persons skills

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TYPES OF PROCESSES MAKE-TO-STOCK VERSUS MAKE-TO-ORDER

PROJECT BATCH MASS CONT.

Make-to-order

Efficiency, Highly efficient, • Only activated in response to an actual order

Advantage Custom work, Flexibility, • Both work-in-process and finished goods inventory kept
latest speed, large capacity,
s technology quality to a minimum
low cost ease of control
Capital • Response time is slow
investment; Difficult to
Dis- Non-repetitive, Costly, slow, change, far-
advantage small customer difficult to lack of reaching
Make-to-stock
s base, expensive manage errors,
responsivenes limited variety • Process activated to meet expected or forecast demand
Machine s
Automobiles, • Customer orders are served from target stocking level
Construction, shops, Paint,
televisions,
Examples shipbuilding, print shops, chemicals, Hybrid
spacecraft computers, foodstuffs
bakeries,
fast food
education • Combines the features of both make-to-order and make-to-stock
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MAKE-TO-STOCK VERSUS MAKE-TO-ORDER: MAKING HAMBURGERS MAKE-TO-STOCK VERSUS MAKE-TO-ORDER: MAKING HAMBURGERS

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PROCESS ANALYSIS PROCESS FLOWCHARTS

 Systematic study of all aspects of a process  Look at manufacture of product or delivery of service
 make it faster from broad perspective
 more efficient
 less costly  Incorporate
 more responsive  Non-productive activities (inspection, transportation,
delay, storage)
 Basic tools  productive activities (operations)
 process flowcharts
 diagrams
 maps

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PROCESS FLOWCHART SYMBOLS PROCESS FLOWCHART OF APPLE PROCESSING

Operation
Inspection
Transportation
Delay
Storage

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PROCESS MAPPING: FULFILLING PHONE ORDERS TO BUY PROCESS MAPPING OF RESTAURANT SERVICE
PRODUCTS

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PROCESS ANALYSIS TYPES OF PROCESSES

 Single-stage: all of the activities could be collapsed

and analyzed using a single cycle time to represent the
 Cycle time: the average successive time between speed of the process
completions of successive units
 Multiple-stage: has multiple groups of activities that
 Utilization: the ratio of the time that a resource is are linked through flows
actually activated relative to the time that it is
available for use

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BUFFERING, BLOCKING, AND STARVING BUFFERING, BLOCKING, AND STARVING

 Buffer: a storage area between stages where the output of a

stage is placed prior to being used in a downstream stage

 Blocking: occurs when the activities in a stage must stop

because there is no place to deposit the item

 Starving: occurs when the activities in a stage must stop

because there is no work

 Bottleneck: stage that limits the capacity of the process

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BOTTLENECK ANALYSIS: EXAMPLE BOTTLENECK ANALYSIS: EXAMPLE

• The bottleneck time is the time of the slowest workstation • The bottleneck time is the time of the slowest workstation
(the one that takes the longest) in a production system (the one that takes the longest) in a production system
• The throughput time is the time it takes a unit to go • The throughput time is the time it takes a unit to go
through production from start to end, with no waiting through production from start to end, with no waiting

Three-Station Assembly Line Three-Station Assembly Line

1) What is the cycle time? 1) What is the cycle time? 4 min.

2) What is the throughput time? 2) What is the throughput time? 9 min
3) What is bottleneck time? 3) What is bottleneck time? 4 min
4) Capacity? 4) Capacity? 15 units/ hr.

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CAPACITY ANALYSIS: ASSIGNMENT CAPACITY ANALYSIS: ASSIGNMENT

• Two identical sandwich lines

• Lines have two workers and three operations • The two lines are identical, so parallel processing
can occur
• All completed sandwiches are wrapped
• At 40 seconds, the toaster has the longest processing
time and is the bottleneck for each line
• At 40 seconds for two sandwiches, the bottleneck time
of the combined lines = 20 seconds
• At 37.5 seconds, wrapping and delivery is the
bottleneck for the entire operation

1) What is the capacity?

2) What is the throughput time?
3) What is bottleneck time?

CAPACITY ANALYSIS: ASSIGNMENT PROCESS ANALYSIS: EXAMPLE

 Capacity per hour is

3,600 seconds
 96 sandwiches per hour
37.5 seconds / sandwich
Capacity?
 Throughput time is 30 + 15 + 20 + 40 + 37.5 = 142.5
seconds

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PROCESS ANALYSIS: ASSIGNMENT CAPACITY ANALYSIS: ASSIGNMENT

• Standard process for cleaning teeth

• Cleaning and examining X-rays can happen
simultaneously

Capacity?

1) What is the throughput time?

29 2) What is bottleneck time?

CAPACITY ANALYSIS: ASSIGNMENT MEASURING PROCESS PERFORMANCE

• All possible paths must be compared

• Bottleneck is the hygienist at 24 minutes

 Hourly capacity is 60 / 24  2.5 patients

 X-ray exam path is 2 + 2 + 4 + 5 + 8 + 6 = 27 minutes

 Cleaning path is 2 + 2 + 4 + 24 + 8 + 6 = 46 minutes
 Longest path (for throughput time) involves the
hygienist cleaning the teeth, patient should complete
in 46 minutes
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PRODUCTION PROCESS MAPPING AND

LITTLE’S LAW
LITTLE’S LAW
 To solve process improvement problems
Total average value of inventory

•Sum of the value of raw materials, work-

in-process, and finished goods inventory

Little’s law

•There is a long-term relationship among

inventory, throughput, and flow time
•Inventory (WIP) = Throughput rate x
Flow time
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LITTLE’S LAW: EXAMPLE LITTLE’S LAW: EXAMPLE

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ASSIGNMENT: BREAD MAKING ASSIGNMENT: BREAD MAKING

 Two steps are required

 Two steps are required
1. Prepare the dough and bake the loaves (bread making)
1. Prepare the dough and bake the loaves (bread
2. Packaging the loaves making)
 Bread is made in batches of 100 loaves 2. Packaging the loaves
 Packaging needs only 0.75 hour to place the 100  Bread is made in batches of 100 loaves
loaves in bags  Completes a batch every hour, which is the cycle time
 Slower process so is the bottleneck
 Packaging needs only 0.75 hour to place the 100
loaves in bags
 Has 75 percent utilization

1) What is the cycle time?

2) What is the throughput time?

ASSIGNMENT: BREAD MAKING ASSIGNMENT: BREAD MAKING

 Suppose we have two bread making lines  Suppose we have two bread making lines
 Cycle time on each is still one hour to make 100 loaves  Cycle time on each is still one hour to make 100 loaves
 Bread making runs two shifts of 8 hr. a day  Bread making runs two shifts
 Packaging runs three shifts of 8 hr. a day
 Produces 200 x 8 x 2 = 3,200
 Packaging runs three shifts
 Produces 133.3 x 8 x 3 = 3,200
 Capacities are roughly equal
 Flow time = 1hr+ 4.5hr + 0.75 hr = 6.25 hr

1) How much is the capacity for a day?

2) What is the cycle time?
3) What is the Flow time?

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