man processes

7/29/2019 Man Processes

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McGraw-Hill/Irwin

Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.


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Chapter 7

Manufacturing Processes


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Basic work flow structures

Project layout

Workcenter

Manufacturing cell

Assembly Line

Continuous process

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Process Flow Structures

Job shop (ex. Copy center making a singlecopy of a student term paper)

Batch shop (ex. Copy center making 10,000copies of an ad piece for a business)

Assembly Line (ex. Automobile manufacturer)

Continuous Flow (ex. Petroleummanufacturer)

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Product-Process Matrix

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Break-Even Analysis A standard approach to choosing

among alternative processes orequipment

Model seeks to determine the point inunits produced (and sold) where we willstart making profit on the process orequipment

Model seeks to determine the point inunits produced (and sold) where totalrevenue and total cost are equal

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Break-Even Analysis (Continued)

This formula can be used to find any

of its components algebraically if theother parameters are known

Break-even Demand=

Purchase cost of process or equipment

Price per unit - Cost per unit

or

Total fixed costs of process or equipmentUnit price to customer - Variable costs per unit

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Break-Even Analysis (Continued) Example: Suppose you want to purchase a new

computer that will cost $5,000. It will be used toprocess written orders from customers who will pay$25 each for the service. The cost of labor, electricityand the form used to place the order is $5 per

customer. How many customers will we need to serveto permit the total revenue to break-even with ourcosts?

Break-even Demand:

= Total fixed costs of process or equip.Unit price to customer Variable costs

=5,000/(25-5)

=250 customers

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Manufacturing Process Flow Design

A process flow design can be defined asa mapping of the specific processes thatraw materials, parts, and subassembliesfollow as they move through a plant

The most common tools to conduct aprocess flow design include assemblydrawings, assembly charts, andoperation and route sheets

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Example: Assembly Chart (Gozinto)

A-2SA-2

4

5

6

7

Lockring

Spacer, detent spring

Rivets (2)

Spring-detent

A-5Component/Assy Operation

Inspection

From Exhibit 5.14

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Example: Process Flow Chart

MaterialReceivedfromSupplier

InspectMaterial forDefects Defects

found?

Return toSupplier forCredit

Yes

No,Continue

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Question Bowl

What is the break-even in demand

for a new process that costs$25,000 to install, will generatea service product thatcustomers are willing to pay

$500 per unit for, and whoselabor and material costs foreach unit is $100?

a. 400 units

b. 250 unitsc. 100 unitsd. 62.5 unitse. None of the above

Answer: d. 62.5

units (25,000/(500-

100)=62.5)

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Question Bowl

Which of the following is anexample of a Continuous Flowtype of process flow structure?

a. Fast foodb. Groceryc. Hospitalsd. Chemical company

e. None of the above

Answer: d. Chemical company

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End of Chapter 7

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man processes

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