P&LProcess
P&LProcess
Introduction.
Types of Processes.
Process Strategy in the industry.
Factors affecting Process Design.
Tools
Process
Introduction
Classification of Processes
Process strategies at the Industry
Factors that affect (or are affected by) the Process
Selection.
Tools
SPC, SMED…
Documents
Work Measurement and Standards
Job Place Design
Line Balancing
Measuring Process Performance
Queueing Theory
Introduction
The information generated during the product design phase specifies
how the product must be, but not how to organize the production
process to make it (equipment, labor skills required, etc.).
Process Design specifies how the activities that Operations must
carry out should be developed:
Guiding the election and selection of technologies.
Clarifying the quantity and type of resources to be acquired, when to be
acquire and their availability.
Process design and redesign is intimately related to Product Design:
Concurrent or Simultaneous Engineering.
Process Selection and
System Design
Facilities and
Forecasting Capacity Equipment
Planning
Process
Technological Selection Work
Change Design
Process
Introduction
Classification of Processes
Process strategies at the Industry
Factors that affect (or are affected by) the Process
Selection.
Tools
SPC, SMED…
Documents
Work Measurement and Standards
Job Place Design
Line Balancing
Measuring Process Performance
Queueing Theory
he process-focused Project Shop
Characteristics
1. “Unique” products with certain complexity (boats, aircrafts, trains, motorways…)
2. The production process is managed like a project
3. Makes a one-of-a-kind product (volume = 1)
4. Uses general purpose equipment
5. Has informal relationships with many vendors
6. Very little vertical integration
7. Flexible layout often with factors of production moving to job
The Job Shop
A process structure suited for low volume production of a great variety of non-standard
products (highly customized products).
Custom or workshop: Low specialized operations carried out by the same worker or group
of workers that follow up the whole process for the order.
Batch: More specialized operations carried out by different workers or group of
workers (need for more specialization and standardization).
Characteristics
1. Makes many products in small volume
2. Uses general purpose equipment, grouped by the same function in Work Centres
3. Has informal relationships with vendors
4. Very little vertical integration
5. Departmentalized layout with chaotic flow
The Large Batch (Cell,
Flow Shop or Hybrid Shop)
A process structure that produces a variety of standard
products at relatively low volumes. This variety of
standard products has a similar sequence of operations:
The equipment is laid out in line, instead of grouped by
the same function.
After completing one batch, equipment adjustments for
the next one are made and the next batch produced.
Characteristics
1.Makes several families of products in moderate volume
2.Uses general purpose equipment often customized
3.Little vertical integration
4.Similar product follows the same path, produced in
batches to reduce the impact of setup time.
5.Hybrid layout with flow lines
Assembly Line
A process structure designed to make discrete parts. Parts are moved
through a set of specially designed workstations at a controlled rate.
Characteristics
By Projects + -
Job Shop
Flexibility
Flow Shop Variable Cost Fixed Cost
Assembly Line Unit Cost
Continuous - +
Process
Introduction
Classification of Processes
Process strategies at the Industry
Factors that affect (or are affected by) the Process
Selection.
Tools
SPC, SMED…
Documents
Work Measurement and Standards
Job Place Design
Line Balancing
Measuring Process Performance
Queueing Theory
Process Strategy in the
industry
Manufacturing Process Life Cycle
Processes go through different phases as
products do.
Interdependency between Product and
Process Life Cycles:
Process Life Cycle: Affects manufacturing costs,
quality and production volumes, which affects
sales volumes.
Product Life Cycle: Influences the type of
manufacturing process that can be economically
and financially justified.
Process Strategy in the
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Product-Process Matrix
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Shop French Restaurant Unit Cost (High)
II. Heavy
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III.
Assembly Automobile
Line Assembly
IV. Burger King Flexibility (Low)
Continuous Sugar Unit Cost (Low)
Flow Refinery
Process Strategy in the
industry
The Product-Process matrix and the Competitive Advantage
The Product-Process matrix helps companies define where their
The Product-Process matrix and the Competitive Advantage
Place in the matrix and Competitive priorities
Operations Management priorities change as the Product-
Process combinations change.
I.e.- Flexibility vs. Standardization
Each company has to take into account its traditional focus when
positioning in the matrix:
Market oriented: Flexibility and Quality.
Manufacturing oriented: Costs and Process Leadership.
Organization of the Operations and the Product-Process
matrix
Process Strategy in the
industry
The Product-Process matrix and the Competitive Advantage
Place in the matrix and Competitive priorities
Organization of the Operations and the Product-Process matrix
Paying attention to the process that makes the company more
Process
Technological Selection Work
Change Design
Factors affecting Process
Design
Capital Investment
Flexibility
Vertical Integration / Outsourcing
Nature of Demand
Quality of the product or service
Customer participation
The Learning effect
Financial Planning and Evaluation
Factors affecting Process
Design
Capital Investment
Combination of equipment and human resources
at the manufacturing process.
The new manufacturing technologies provide a
wide variety of available options:
As the mechanical and/or automated operations
increase, more capital is required.
Most of the available options require a high capital
investment, which create a high risk in case our sales
volumes (and therefore our production volumes) are
lower than the expected.
Factors affecting Process
Design
Flexibility
A production process is more flexible when their
equipment and human resources are able to
manage a wider variety of products, outputs,
responsibilities and functions, at a reasonable
cost and time frame.
Capital vs. Flexibility
Flexibility New
Traditional
technologies technologies
Capital
Factors affecting Process
Design
Flexibility
Flexibility affects the type of human resources
required and their job stability:
More training is required.
Job stability is more variable for companies working by
projects or job shop type of process.
Flexibility is one of the best ways to get a reliable
customer service and reduces bottle necks.
Factors affecting Process
Design
Vertical Integration/Outsourcing
The degree of vertical integration is related to the number
of processes at the supply chain that are carried out by the
own company.
The vertical integration can generate savings when the
company has the necessary skills to carry out some
processes at a lower cost and better quality.
If the resources acquired are basic, the company may
loose competitiveness with non-vertical integration.
Outsourcing is interesting when a resource consumption is
low, and its efficient management has a certain economy of
scale.
Outsourcing is used as well when the technology to be
used is so complex that being competitive requires a big
effort not balanced with the benefits obtained.
Factors affecting Process
Design
Nature of the demand
Manufacturing processes have to have the necessary capacity to
environment.
The level of quality to be offered will affect directly the selection of the
production process.
The level required is directly related to the level of automation of the
process, since the automatic equipment manufactures products with
a high and consistent uniformity.
Customer participation
Services that require higher contact with the customer generally
need less capital investment and have more flexibility.
Customer presence normally affects the process efficiency in a
negative way, which increases cost.
Factors affecting Process
Design
The Learning effect
The working hours required per unit of product represent a
Simplify/Mechanize/Automate/Integrate
SMED
CAD/CAM
Bottlenecks
How much is the profit?
A company manufactures 2 products P & Q. Sale price of P is 90 €
and Q price is 100 €/unit. Weekly Demand is 100 units for P and 50
units for Q.
Both products require the same PC component, the raw material of
which worths 20 €/unit. To transform PC 15 minutes of a given
resource B are required and 5 minutes of a given resource C.
Product P also requires Component 1 (C1) that should be
transformed from a raw material that cost 20 €/unit, and it requires
15 minutes of a given resource A and 10 minutes of C.
To assembly PC with C1 a new component C3 is required with a
cost of 5 €/unit and 5 minutes of the D resource.
Product Q follows a very similar process. To manufacture C2 raw
material with a cost of 20 €/unit is needed, and it is processed using
20 minutes of A and 15 minutes of B. Then resource D assembles
PC with C2 during 5 minutes.
Each week has 5 days of 4 hours. Total cost are 3600 €/week.
Process
Introduction
Classification of Processes
Process strategies at the Industry
Factors that affect (or are affected by) the Process
Selection.
Tools
SPC, SMED…
Documents
Work Measurement and Standards
Job Place Design
Line Balancing
Measuring Process Performance
Queueing Theory
Work Measurement and
The Purpose of Work Measurement is to set time standards for a job.
Standards
Such standards are necessary for 4 reasons:
To schedule work and allocate capacity.
To provide an objective basis for motivating the workforce.
Methods
Time Study (stop watch)
Predetermined times
Reference points.
equipment.
Performance measurement to develop a performance index for
workers.
Evaluate time standards to obtain the standard time for a task.
Five Steps
Identify the specific activities that are the main purpose for the
study.
Estimate the proportion of time of activity of interest of the total
time.
State the desired accuracy in the study results.
made.
At two or three intervals during the study period recompute the
Yes
Question
yes/no?
Process Flow Diagram (PFD)
A process flow diagram is a mapping of the specific processes that raw materials
parts, and subassemblies follow as they move through a plant.
Acceptable Acceptable
Trees Debark Stems Scan Saw Lumber
RM WIP FG
Grind Chips
FG
Flow Diagrams
Single Object Process Chart
Assembly Process Chart
Assembly charts
Disassembly charts
Action Decision Flow Diagram
Multi Activity Charts
Process
Introduction
Classification of Processes
Process strategies at the Industry
Factors that affect (or are affected by) the Process
Selection.
Tools
SPC, SMED…
Documents
Work Measurement and Standards
Job Place Design
Line Balancing
Measuring Process Performance
Queueing Theory
Job Design (I)
Job design is the function of specifying the work activities of an
indidividual or a group in an organizational setting.
The objective is to develop job structures that meet the
requirements of the organization and its technology and that
satisfy the job holder’s personal and individual requirements.
Trends of Job Design Decisions
Quality control as part of the workers job
Cross training workers to perform multiskilled jobs
Employee involvement and team approaches to designing and
organizing work
“Informating” ordinary workers through internet, email…
Extensive use of temporary workers
Automation of heavy manual work
Organizational commitment to providing meaningful and rewarding
jobs for all employees.
Job Design (II)
The improvement of the job methods leads to a higher level of specialization.
A workplace with a high level of specialization covers a narrow set of tasks,
Manufacturing
Final
product
Conveyor moving at constant speed inventory
Disadvantages
Alienation.
Less flexibility.
Line Balancing. Definition.
Line Balancing consists of assigning operations to
the workstations of such form that the sum of their
durations in each station is as similar as possible.
With this procedure bottlenecks should be avoided,
unproductive time will be reduced and the
productivity of the line will increase.
This implies that:
Each operation will be assigned to an one only
and only one workstation.
Relations and bounds between operations will be
respected.
Times of the stations will not exceed their cycle
time.
Objectives.
Capacity
Minimization of total idle time (maximization of the use of the
line).
Minimization of product flow-time.
Balance the levels of capacity used at the workstations.
Cost
Minimization of the machinery costs, tools or idle equipment.
Minimization of the costs of materials or reworks.
Minimization of the costs by adjustment and change.
Organizational-social
Job Enrichment
Modifications at the Line balancing
General definitions.(I)
Operation: Smaller unit of work than cannot be divided without creating an
unnecessary interference.
Workstation: Segment of the line where a set of operations is executed.
Characterized by its surface, machinery or type of assigned work.
Line Balancing: Process to assign operations to workstations. It intends to assign
personal or equipment of efficient way to obtain the performance maximum.
Cycle time: Amount of time between two consecutive products.
Avalaible Time
Cycle Time
Balance Efficiency: It indeed represents the percentage of invested total time in
making products. Forecast Production
taken place”
In the case of linear configurations, this implicates
Productivity
L
Operation Time in a station
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General Definitions. (IV)
Idle time of a station
Total idle time of a station or delay
Station saturation
DI j C TOi ; j = 1,..., m
Efficiency
Delay
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Line Balancing
Introduction
Line Balancing
programming.
Heuristic methods
Constructive. Based on rules and strategies
Heuristic of a single one happened.
Simple
Composed
Heuristic with backward movement
Approaches from exact algorithms
Others
Model of PLM of problem
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sujeto a: Variables of allocation xij:
mmax Binary variables that they
x
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assigned to station j.
n Variables of existence yj:
t i x i , j C y j j=1…mmax [2] Binary variables that they
i 1 indicate if station j exists.
mmax mmax This existence comes
j x
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able to assign but
operations to anyone of the
y j 1 y i j=1…mmax-1 [4] stations already defined.
x i , j 0,1i, j
y j 0,1j
Heuristic procedures
Although nonexact, some heuristic
procedures provide solutions that
can be considered acceptable.
The known procedures of
constructive type more are the
bound ones to the duration of the
task or the number of consequent.
One of them chooses to assign to
the open station the task with
greater duration than still it fits in the
station.
The alternative procedure chooses
to assign to the open station the
task with greater number of
consequent.
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Objectives.
Capacity
Minimization of total the idle time (maximization of the use of
the line).
Minimization of products flow-time in the line.
Balance the levels of capacity use at the workstations.
Cost
Minimization of the machinery costs, tools or idle equipment.
Minimization of the costs of materials or reworks.
Minimization of the costs by adjustment and change.
Organizational-social
Job Enrichment
Modifications in the Line balancing
Line Balancing
Introduction
Line Balancing
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Process
Introduction
Classification of Processes
Process strategies at the Industry
Factors that affect (or are affected by) the Process
Selection.
Tools
SPC, SMED…
Documents
Work Measurement and Standards
Job Place Design
Line Balancing
Measuring Process Performance
Queueing Theory
Measuring Process Performance
Productivity: Ratio of Output to Input
Effiency: Ratio of Actual output to some standard.
Utilization: Ratio of the time that a resource is actually activated
relative to the time that it is available for use.
Cycle time (takt time): Average time between the completion of
succesive units.
Run Time: time required to produce a batch of parts
Setup Time: is the time required to prepare a machine to make a
particular item.
Operation Time: sum of setup and run time.
Throughput time: time that unit spents actually being transformed
or waiting.
Throughput rate: output rate that the process is expected to
produce over a period of time.
Process velocity: Total throughput divided by Value Added Time
Value Added Time: Time that useful work is actually done
Process
Introduction
Classification of Processes
Process strategies at the Industry
Factors that affect (or are affected by) the Process
Selection.
Tools
SPC, SMED…
Documents
Work Measurement and Standards
Job Place Design
Line Balancing
Measuring Process Performance
Queueing Theory
Queueing Theory
Little’s Law: The size of a queue is proportional to the input
rate and the average throughput time.
L= W
Lq = Wq
1
W Wq