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Chapter 6

Product Design & Process Selection-

Manufacturing

Types of Processes

Process Flow Structures Process Flow Design

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Types of Processes

Conversion

Fabrication

Assembly

Testing

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Process Flow Structures

Job shop

Batch shop

Assembly Line

Continuous Flow

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IV.

Continuous

Flow

III.

Assembly

Line

II.

Batch

I.

Job

Shop

Low

Volume,

One of a

Kind

Multiple

Products,

Low

Volume

Few

Major

Products,

HigherVolume

High

Volume,

High

Standard-ization

Commercial

Printer

French Restaurant

Heavy

Equipment

Coffee Shop

Automobile

AssemblyBurger King

Sugar

Refinery )

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Break-Even Analysis A standard approach to choosing

among alternative processes orequipment

Model seeks to determine the pointin units produced (and sold) wherewe will start making profit on theprocess or equipment

.

.

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Break-Even Analysis (Continued)

This formula can be used to find any of itscomponents algebraically if the otherparameters 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 beused to process written orders from customerswho will pay $25 each for the service. The costof labor, electricity and the form used to placethe order is $5 per customer. How manycustomers will we need to serve to permit thetotal revenue to break-even with our costs?

What is Break-even Demand:

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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 subassemblies

follow as they move through a plant

The most common tools to conduct a

process flow design include

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Capacity

Capacity - number of units produced per

time period

If 6 workers are employed for a process with

11 machines and each machine produces

25 parts per hour, what is the weekly

capacity for a one shift operation?

Answer: