process fundamentals & process flow analysis(2)
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Process Fundamentals &
Process Flow Analysis
Course Instructor
Dr. N. Sambandam
_______________________________________________
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12/1/2014 4
97% NVA3%VA
Most Process Improvement
. . . Achieve this . . .
97% NVA
Teams Attack this . . .
Typical Value Stream Ratio of
Value-Added to Non-Value-Added Activity
. . . and Ignore this
Source: C. Fiore;Lean Strategies for Product Development,ASQ, 2003
Wheresthe Real
Opportunity?
The Process Improvement Pitfall
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TYPES OF PRODUCTION
1. PROJECT
2. UNIT/BATCH3. MASS
4. CONTINUOUS
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PROCESSING OPERATIONS
1) BASIC PROCESSES - SHORT MOVEMENTS
2) SECONDARY PROCESSES - HIGH PRECISION
3) OPERATIONS TO ENHANCE PHYSICAL PROPERTIES - LARGE VOLUME OF
4) FINISHING OPERATIONS INFORMATION FOR PROCESSING.FMS: IT IS A SYSTEM WHERE ADVANTAGES OF BATCH & PROCESS COMBINED
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Customer order decoupling point
Raw
Materials
Components Semi
Finished
Finished
Goods
ENG PROD PROD PROD
SUPPLIER CLIENT
Production Based on Forecast
Stock PointProduction Based onCustomer Order
Engineer -to-Order
Make-to-Order
Assemble-to-Order
Make to Stock
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MANUFACTURING STRATEGY AND LEAD TIME
Design Purchase Manufacture Assembly Ship
Delivery Lead Time
Inventory Manufacture Assembly Ship
Delivery Lead
Time
Manufacture Inventory Assembly Ship
Delivery Lead Time
Manufacture Inventory Assembly Ship
Delivery Lead Time
Engineerto order
Make toorder
Assemblyto order
Make tostock
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PRODUCTS & VOLUMES (PV) LAYOUT & MATERIAL FLOW (LF)
Manufacturing Outputs: D, C, Q, P, F, I
Products & Volumes: HV/U, HV/B, HV/MV,
LV/M, One product/very high volume
Layouts and Material Flow: PL, LL, CL, RL
Level of Manufacturing Capability: Infant,Industry Average, Adult, World Class
Manufacturing Levers: HR, OS, PPC,Sourcing, Process Tech., Facilities
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COMPETITIVE ANALYSIS
Delivery Cost Quality Performance Flexibility Innovativeness
1. Time2. Reliability
Factory cost 1. Rework2. Defects3. Warranty
1. Standard2. Advanced Attributes
1. 22 weeks2. 60%
440,00Per unit
1. $2,0002. 3 defects3. 4%
1. 52. 3
Company- current
1. 25 weeks2. 50%
$35.000Per unit
1. 42. 2
Market
1. 20 weeks
2. 70%
$40,000
Per unit
1. 5
2. 3
Strong
competitor
1. 17 weeks2. 755
$37,000Per unit
1. $1,0002. 1.5 defects3. No target
1. 52. 4
Company- Target
O M M MMarket
Qualifying;Order
winning
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COMPETITIVE ANALYSIS
ProductFamily
Cost(Importance)
Cost(Currentlevel)
Quality(Importance)
Quality(CurrentLevel)
Delivery(Importance)
Delivery(CurrentLevel)
Flexibility(Importance)
Flexibility(CurrentLevel)
cable 30 Verystrong
40 Weak 20 Even 10 weak
PrintedCircuits
20 VeryWeak
50 Even 20 Strong 10 Strong
CopperRod
20 Strong 40 Strong 30 VeryStrong
10 weak
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A Flow Line for Production orService
Flow Shop or Assembly Line Work Flow
Raw materialsor customer
Finisheditem
Station2
Station3
Station4
Material
and/or
labor
Station1
Material
and/or
labor
Material
and/or
labor
Material
and/or
labor
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A U-Shaped Production Line
1 2 3 4
5
6
78910
In
Out
Workers
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Process Layout
Process Layout - work travels
to dedicated process centers
Milling
Assembly
& Test Grinding
Drilling Plating
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Functional Layout
Gearcutting
Mill Drill
Lathes
Grind
Heattreat
Assembly
111
333
222
444
222
111
444
111 33311112222
222
3333
111
444
111
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Cellular Manufacturing Layout
-1111 -1111
222222222 - 2222
Assembly
3333333333 - 3333
44444444444444 - 4444
Lathe
Lathe
Mill
Mill
Mill
Mill
Drill
Drill
Drill
Heat
treat
Heat
treat
Heat
treat
Gear
cut
Gear
cut
Grind
Grind
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Process Selection and System Design
Forecasting
Product andservice design
Capacity
planning
Facilities and
Equipment
Layout
Work
design
Processselection
Technological
change
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PRODUCT LIFE CYCLE
DEMAND 1
23
GROWTH STABILITY DECLINE
TIME
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Process Analysis
Process Flowcharting
Types of Processes
Process Performance Metrics
OBJECTIVES
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Process Analysis Terms
Process: Is any part of anorganization that takes inputs and
transforms them into outputs Cycle Time: Is the average successive
time between completions ofsuccessive units
Utilization: Is the ratio of the timethat a resource is actually activatedrelative to the time that it is available
for use
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Process Flowcharting
Defined Process flowcharting is the use of a
diagram to present the major
elements of a process The basic elements can include tasks
or operations, flows of materials orcustomers, decision points, and
storage areas or queues
It is an ideal methodology by which tobegin analyzing a process
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lowchart Symbols
Tasks or operations Examples: Giving anadmission ticket to a
customer, installing a engine
in a car, etc.
Decision Points Examples: How much change
should be given to a
customer, which wrench
should be used, etc.
Purpose and Examples
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Examples: Sheds, lines of
people waiting for a service,
etc.
Examples: Customers moving
to a seat, mechanic getting a
tool, etc.
Storage areas or
queues
Flows of materials or
customers
Purpose and Examples
lowchart Symbols
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Example: Flowchart of Student
Going to School
Yes
No
Goof
off
Go to
school
today?
Walk to
class
Drive to
school
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Types of Processes
Single-stage Process
Stage 1
Stage 1 Stage 2 Stage 3
Multi-stage Process
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Types of Processes (Continued)
Stage 1 Stage 2
Buffer
Multi-stage Process with Buffer
A buffer refers to a storage area betweenstages where the output of a stage isplaced prior to being used in a
downstream stage
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Other Process Terminology
Blocking
Occurs when the activities in a stage must stopbecause there is no place to deposit the item justcompleted
If there is no room for an employee to place a
unit of work down, the employee will hold on to itnot able to continue working on the next unit
Starving
Occurs when the activities in a stage must stopbecause there is no work
If an employee is waiting at a work station andno work is coming to the employee to process,the employee will remain idle until the next unitof work comes
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Other Process Terminology(Continued)
Bottleneck Occurs when the limited capacity of a
process causes work to pile up or becomeunevenly distributed in the flow of a
process If an employee works too slow in a multi-
stage process, work will begin to pile upin front of that employee. In this is casethe employee represents the limited
capacity causing the bottleneck.
Pacing Refers to the fixed timing of the
movement of items through the process
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Other Types of Processes
Make-to-order
Only activated in response to an actualorder
Both work-in-process and finished goodsinventory kept to a minimum
Make-to-stock
Process activated to meet expected or
forecast demand Customer orders are served from target
stocking level
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Process Performance Metrics
Operation time = Setup time +Runtime
Throughput time = Average time fora unit tomove through the
system
Velocity = Throughput time
Value-added time
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Process Performance Metrics(Continued)
Productivity = Output
Input
Utilization = Time Activated
Time Available
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Cycle Time Example
Suppose you had to produce 600 units in 80hours to meet the demand requirements of aproduct. What is the cycle time to meet this
demand requirement?
Answer: There are 4,800 minutes (60minutes/hour x 80 hours) in 80 hours. So the
average time between completions would haveto be: Cycle time = 4,800/600 units = 8 minutes.
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Process Throughput TimeReduction
Perform activities in parallel
Change the sequence of activities
Reduce interruptions