Ch06 Process Design - Russell

Chapter 6
Process Design and Technology

Decisions
ISV
ISV Operations
Operations Management
Management -- 66thth Edition
Edition
Roberta Russell & Bernard W. Taylor, III
Copyright 2009 John Wiley & Sons, Inc.
Beni Asllani
University of Tennessee at Chattanooga
Lecture Outline
Process Planning
Process Analysis
Process Innovation
Technology Decisions
6-2
Process Planning
Process
a group of related tasks with specific inputs and

outputs
Process design
what tasks need to be done and how they are

coordinated among functions, people, and
organizations
Process strategy
an organizations overall approach for physically

producing goods and services
6-3
Process Planning
Determines how a product will be
produced or a service provided
It decides
Which components will be made in-house

Which will be purchased from suppliers
Selects processes
Develops and documents specifications for
manufacture & delivery.
6-4
Process Selection
Projects
one-of-a-kind production of a product to customer order
Batch production
processes many different jobs at the same time in groups or

batches
Mass production
produces large volumes of a standard product for a mass

market
Continuous production
used for very-high volume commodity products
6-5
Product-Process Matrix
Source: Adapted from Robert Hayes and Steven Wheelwright, Restoring the Competitive Edge Competing
through Manufacturing (New York, John Wiley & Sons, 1984), p. 209.
6-6
Types of Processes
Type of
product
Type of
customer
Product
demand
PROJECT
BATCH
MASS
CONT.
Unique
Made-toorder
(customized)
Made-tostock
Commodity
(standardized )
Few
individual
customers
Mass
market
Mass
market
Fluctuates
Stable
Very stable
One-at-atime
Infrequent
Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive
Advantage (New York:McGraw-Hill, 2001), p. 210
6-7
Types of Processes (cont.)

PROJECT
BATCH
MASS
CONT.
Demand
volume
Very low
Low to
medium
High
Very high
No. of
different
products
Infinite
variety
Many, varied
Few
Very few
Production
system
Long-term
project
Discrete, job
shops
Repetitive,
assembly
lines
Continuous,
process
industries
6-8
Equipment
PROJECT
BATCH
MASS
CONT.
Varied
Generalpurpose
Specialpurpose
Highly
automated
Fabrication
Assembly
Mixing,
treating,
refining
Wide range
of skills
Limited
range of
skills
Equipment
monitors
Specialized
Primary
type of work contracts
Worker
skills
Experts,
craftspersons
6-9

PROJECT
Advantages
Disadvantages
Examples
BATCH
MASS
CONT.
Custom work,
latest technology
Flexibility,
quality
Efficiency,
speed,
low cost
Highly efficient,
large capacity,
ease of control
Non-repetitive,
small customer
base, expensive
Costly, slow,
difficult to
manage
Capital
investment;
lack of
responsiveness
Difficult to change,
far-reaching errors,
limited variety
Construction,
shipbuilding,
spacecraft
Machine shops,
print shops,
bakeries,
education
Automobiles,
televisions,
computers,
fast food
Paint, chemicals,
foodstuffs
Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New
York:McGraw-Hill, 2001), p. 210
6-10
Process Selection
Process A
Process B
$2,000 + $5v = $10,000 + $3v
$2v = $8,000
v = 4,000 rafts
Below or equal to 4,000, choose A

Above or equal to 4,000, choose B
6-11
Process Plans
Set of documents that detail
manufacturing and service delivery
specifications
assembly charts
operations sheets
quality-control check-sheets
6-12
Process Analysis
Sesame seed top bun
Beef patty
Salt
Cheese
SA
Lettuce
Sauce
Onions
Assembly
AssemblyChart
Chart
for
foraaBig
BigMac
Mac
First-layer assembly
Middle bun
Beef patty
Salt
Cheese
SA
Lettuce
Sauce
Onions
Pickles
Second-layer assembly
systematic
examination
of all
aspects of
process to
improve
operation
Bottom bun
Wrapper
Completed Big Mac

6-13
An Operations Sheet for a Plastic Part

Part name
Crevice Tool
Part No.
52074
Usage
Hand-Vac
Assembly No. 520

Oper. No.
Description
Dept.
Machine/Tools
Time
10
Pour in plastic bits
041
Injection molding
2 min
20
Insert mold
041
#076
2 min
30
Check settings
& start machine
041
113, 67, 650
20 min
40
Collect parts & lay flat
051
Plastics finishing
10 min
50
Remove & clean mold
042
Parts washer
15 min
60
Break off rough edges
051
Plastics finishing
10 min
6-14
Quality control check sheet
http://upload.wikimedia.org/wikipedia/co
mmons/3/3a/Check_sheet_for_motor_assemb
y.svg
6-15
Process analysis
Systematic examination of all aspects of
a process to improve its operation to
make it
faster
more efficient
less costly or
more responsive to customer
6-16
Basic tools of process analysis

Process flowcharts
Diagrams
Maps
6-17
Process Flowcharts
look at manufacture of product or delivery
of service from broad perspective
Incorporate
nonproductive activities (inspection,

transportation, delay, storage)
productive activities (operations)
6-18
Process Flowchart
Symbols
Operations
Inspection
Transportation
Delay
Storage
6-19
Process
Flowchart
of Apple
Processing
Description
of
process
Unload apples from truck
Move to inspection station
Weigh, inspect, sort
Move to storage
Wait until needed
Move to peeler
Apples peeled and cored
15
Soak in water until needed
20
Place in conveyor
10
Move to mixing area
11
Weigh, inspect, sort

Page 1 0f 3
Distance
(feet)
Location: Graves Mountain

Process: Apple Sauce
Time
(min)
Operation
Transport
Inspect
Delay
Storage
Step
Date: 9-30-02
Analyst: TLR
20
100 ft
30
50 ft
360
20 ft
Total
20 ft
30
480
190 ft
6-20
Customer
Place order
Waiter
Salad Chef
Is order
complete?
Dinner Chef
Give soup or salad order to chef
Prepare soup or
salad order
Prepare dinner
order
Give dinner order to chef

Drink
Get drinks for customer
Eat salad or
soup
Deliver salad or soup order to customer
Eat dinner
Deliver dinner to customer
Receives check
Deliver check to customer
Gives payment
to waiter
Receive payment for meal

Cash or
Credit?
Bring change to customer

Run credit card through
Fill in tip
amount
Give order
to waiter
Credit
Cash
Collect change,
leave tip
Give order
to waiter
Return credit slip to customer
A Process
Map of
Restaurant
Service
Collect tip
6-21
Simple Value Chain Flowchart
6-22
Need for process innovation

Processes are planned in response to
new facilities, new products, new
technologies, new markets, or new
customer expectations
Processes should be analyzed for
improvement on a continuous basis
6-23
Need for process innovation

When continual improvement efforts
have been exhausted and performance
expectations still cannot be reach with an
existing process, it is time to completely
redesign or innovate the process.
6-24
Process Innovation
Continuous improvement
refines the breakthrough
Breakthrough
Improvement
Total redesign of
a process for
breakthrough
improvements
Continuous improvement activities

peak; time to reengineer process
6-25
From Function to Process
Sales
Manufacturing
Purchasing
Accounting
Product Development
Order Fulfillment
Supply Chain Management
Customer Service
Function
Process
6-26
Process Innovation
Customer
Requirements
Strategic
Directives
Baseline Data
Benchmark
Data
Goals for Process

Performance
High - level
Process map
Innovative
Ideas
Detailed
Process Map
Model
Validation
Pilot Study
of New Design
No
Goals
Met?
Yes
Design
Principles
Key
Performance
Measures
Full Scale
Implementation
6-27
High-Level Process Map
6-28
Principles for Redesigning

Processes
Remove waste, simplify, and consolidate
similar activities
Link processes to create value
Let the swiftest and most capable enterprise
execute the process
Flex process for any time, any place, any way
Capture information digitally at the source and
propagate it through process
6-29
Principles for Redesigning

Processes (cont.)
Provide visibility through fresher and richer
information about process status
Fit process with sensors and feedback loops
that can prompt action
Add analytic capabilities to process
Connect, collect, and create knowledge around
process through all who touch it
Personalize process with preferences and
habits of participants
6-30
Techniques for Generating

Innovative Ideas
Vary the entry point to a problem
in trying to untangle fishing lines, its best to start

from the fish, not the poles
Draw analogies
a previous solution to an old problem might work
Change your perspective
think like a customer

bring in persons who have no knowledge of
process
6-31
Techniques for Generating

Innovative Ideas (cont.)
Try inverse brainstorming
what would increase cost

what would displease the customer
Chain forward as far as possible
if I solve this problem, what is the next problem
Use attribute brainstorming
how would this process operate if. . .

our workers were mobile and flexible
there were no monetary constraints
we had perfect knowledge
6-32
Technology Decisions
Financial justification of technology
Purchase cost
Operating Costs
Annual Savings
Revenue Enhancement
Replacement Analysis
Risk and Uncertainty
Piecemeal Analysis
6-33
Components of e-Manufacturing
6-34
A Technology Primer
Product Technology
Computer-aided
Computer-aided
design
design (CAD)
(CAD)
Group
Group technology
technology
(GT)
(GT)
Computer-aided
Computer-aided
engineering
engineering (CAE)
(CAE)
Collaborative
Collaborative
product
product commerce
commerce
(CPC)
(CPC)
Creates and communicates designs

electronically
Classifies designs into families for easy
retrieval and modification
Tests functionality of CAD designs
electronically
Facilitates electronic communication and
exchange of information among designers
and suppliers
6-35
A Technology Primer (cont.)

Product Technology
Product
Product data
data
management
management
(PDM)
(PDM)
Product
Product life
life cycle
cycle
management
management
(PLM)
(PLM)
Product
Product
configuration
configuration
Keeps track of design specs and revisions

for the life of the product
Integrates decisions of those involved in
product development, manufacturing, sales,
customer service, recycling, and disposal
Defines products configured by customers
who have selected among various options,
usually from a Web site
6-36

Process Technology
Standard
Standard for
for
exchange
exchange of
of
product
product model
model data
data
(STEP)
(STEP)
Computer-aided
Computer-aided
design
design and
and
manufacture
manufacture
(CAD/CAM)
(CAD/CAM)
Computer
Computer aided
aided
process
process (CAPP)
E-procurement
E-procurement
Set standards for communication among

different CAD vendors; translates CAD data
into requirements for automated inspection
and manufacture
Electronic link between automated design
(CAD) and automated manufacture (CAM)
Generates process plans based on
database of similar requirements
Electronic purchasing of items from emarketplaces, auctions, or company
websites
6-37

Manufacturing Technology
Machines controlled by software code to perform a
Computer
Computer
numerically
variety of operations with the help of automated
numerically control
(CNC)
(CNC)
tool changers; also collects processing information
Flexible
Flexible
manufacturing
manufacturing
system
system (FMS)
(FMS)
Robots
Robots
Conveyors
Conveyors
and quality data

A collection of CNC machines connected by an
automated material handling system to produce a
wide variety of parts
Manipulators that can be programmed to perform
repetitive tasks; more consistent than workers but
less flexible
Fixed-path material handling; moves items along a
belt or overhead chain; reads packages and
diverts them to different directions; can be very fast
6-38

Manufacturing Technology
Automatic
Automatic guided
guided
vehicle
vehicle (AGV)
(AGV)
A driverless truck that moves material along a

specified path; directed by wire or tape embedded
in floor or by radio frequencies; very flexible
Automated
Automated storage
storage
and
and retrieval
retrieval system
system
(ASRS)
(ASRS)
An automated warehousesome 26 stores high

in which items are placed in a carousel-type
storage system and retrieved by fast-moving
stacker cranes; controlled by computer
Process
Process Control
Control
Continuous monitoring of automated equipment;

makes real-time decisions on ongoing operation,
maintenance, and quality
Automated manufacturing systems integrated

Computer-integrated
Computer-integrated
through computer technology; also called emanufacturing
manufacturing (CIM)
(CIM)
manufacturing
6-39

Information Technology
Business
Business to
to
Business
Business (B2B)
(B2B)
Business
Business to
to
Cunsumer
Cunsumer (B2C)
(B2C)
Internet
Internet
Intranet
Intranet
Extranet
Extranet
Electronic transactions between businesses usually

over the Internet
Electronic transactions between businesses and
their customers usually over the Internet
A global information system of computer networks
that facilitates communication and data transfer
Communication networks internal to an
organization; can be password (i.e., firewall)
protected sites on the Internet
Intranets connected to the Internet for shared
access with select suppliers, customers, and
trading partners
6-40

Bar
Bar Codes
Codes
Radio
Radio Frequency
Frequency
Identification
Identification tags
tags
(RFID)
(RFID)
Electronic
Electronic data
data
interchange
interchange (EDI)
(EDI)
Extensive
Extensive markup
markup
language
language (XML)
(XML)
Enterprise
Enterprise resource
resource
planning
planning (ERP)
(ERP)
A series of vertical lines printed on most packages that

identifies item and other information when read by a
scanner
An integrated circuit embedded in a tag that can send and
receive information; a twenty-first century bar code with
read/write capabilities
A computer-to-computer exchange of business
documents over a proprietary network; very expensive
and inflexible
A programming language that enables computer to computer communication over the Internet by tagging
data before its is sent
Software for managing basic requirements of an
enterprise, including sales & marketing, finance and
accounting, production & materials management, and
human resources
6-41

Supply
Supply chain
chain
management
management (SCM)
(SCM)
Customer
Customer relationship
relationship
management
management (CRM)
(CRM)
Decision
Decision support
support
systems
systems (DSS)
(DSS)
Expert
Expert systems
systems (ES)
(ES)
Artificial
Artificial intelligence
intelligence
(AI)
(AI)
Software for managing flow of goods and information

among a network of suppliers, manufacturers and
distributors
Software for managing interactions with customers and
compiling and analyzing customer data
An information system that helps managers make
decisions; includes a quantitative modeling component
and an interactive component for what-if analysis
A computer system that uses an expert knowledge base
to diagnose or solve a problem
A field of study that attempts to replicate elements of
human thought in computer processes; includes expert
systems, genetic algorithms, neural networks, and fuzzy
logic
6-42

All rights reserved. Reproduction or translation
of this work beyond that permitted in section 117
of the 1976 United States Copyright Act without
express permission of the copyright owner is
unlawful. Request for further information should
be addressed to the Permission Department,
John Wiley & Sons, Inc. The purchaser may make
back-up copies for his/her own use only and not
for distribution or resale. The Publisher assumes
no responsibility for errors, omissions, or
damages
caused
byInc.
the use of these programs 6-43
Copyright
2009 John
Wiley & Sons,

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Chapter 6

Process Design and Technology

Copyright 2009 John Wiley & Sons, Inc.

Copyright 2009 John Wiley & Sons, Inc.

a group of related tasks with specific inputs and

what tasks need to be done and how they are

an organizations overall approach for physically

Copyright 2009 John Wiley & Sons, Inc.

Which components will be made in-house

Copyright 2009 John Wiley & Sons, Inc.

one-of-a-kind production of a product to customer order

processes many different jobs at the same time in groups or

produces large volumes of a standard product for a mass

used for very-high volume commodity products

Copyright 2009 John Wiley & Sons, Inc.

Copyright 2009 John Wiley & Sons, Inc.

Copyright 2009 John Wiley & Sons, Inc.

Types of Processes (cont.)

Copyright 2009 John Wiley & Sons, Inc.

Types of Processes (cont.)

Copyright 2009 John Wiley & Sons, Inc.

Types of Processes (cont.)

Copyright 2009 John Wiley & Sons, Inc.

Below or equal to 4,000, choose A

Completed Big Mac

An Operations Sheet for a Plastic Part

Assembly No. 520

Pour in plastic bits

113, 67, 650

Collect parts & lay flat

Remove & clean mold

Break off rough edges

Copyright 2009 John Wiley & Sons, Inc.

Quality control check sheet

Copyright 2009 John Wiley & Sons, Inc.

Copyright 2009 John Wiley & Sons, Inc.

Basic tools of process analysis

Copyright 2009 John Wiley & Sons, Inc.

nonproductive activities (inspection,

Copyright 2009 John Wiley & Sons, Inc.

Unload apples from truck

Move to inspection station

Weigh, inspect, sort

Wait until needed

Apples peeled and cored

Soak in water until needed

Move to mixing area

Weigh, inspect, sort

Copyright 2009 John Wiley & Sons, Inc.

Location: Graves Mountain

Give soup or salad order to chef

Give dinner order to chef

Get drinks for customer

Deliver salad or soup order to customer

Deliver dinner to customer

Deliver check to customer

Receive payment for meal

Bring change to customer

Return credit slip to customer

Copyright 2009 John Wiley & Sons, Inc.

Simple Value Chain Flowchart

Copyright 2009 John Wiley & Sons, Inc.

Need for process innovation