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PROCESS PLANNING
Process
OPERATIONS & SUPPLY CHAIN any part of an organization that takes inputs and
MANAGEMENT transforms them into outputs
MBA TERM-II
(2023-24)
Process strategy
an organization’s overall approach for physically
SESSION 3 producing goods and services
PROCESS DESIGN & ANALYSIS
Process planning
converts designs into workable instructions for
Dr. Devendra Kumar Pathak manufacture or delivery
(M.Tech. & Ph.D., IIT Delhi)
Assistant Professor,
Operations Management & Decision Sciences,
Indian Institute of Management (IIM) Kashipur 6-2
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HORIZONTAL VS. VERTICAL INTEGRATION PROCESS STRATEGY SELECTION
Projects
one-of-a-kind production of a product to customer
order
Batch production
process many different jobs at the same time in
groups or batches
Mass production
produce large volumes of a standard product for a
mass market
Continuous production
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used for very-high volume commodity products
6-4
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PRODUCT-PROCESS MATRIX TYPES OF PROCESSES
Paint, chemicals,
Sugar PROJECT MASS
BATCH CONT.
(Job Shop) (Repetitive)
Automobiles, Make-to- Make-to-
Type of
televisions, Unique order stock Commodity
computers product
(customized) (standardized )
Education? One-at-a- Few
Type of Mass Mass
customer time individual
market market
customers
Machine shops,
print shops,
bakeries Product
demand Infrequent Fluctuates Stable Very stable
Construction,
Shipbuilding
6-6
6-5
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TYPES OF PROCESSES TYPES OF PROCESSES
PROJECT BATCH MASS CONT. PROJECT BATCH MASS CONT.
Demand Low to General- Special- Highly
Very low High Very high Equipment Varied
volume medium purpose purpose automated
No. of Primary Mixing,
different Infinite Many, Specialize
Few Very few type of Fabrication Assembly treating,
products variety varied work d contracts
refining
Repetitive, Continuous, Experts, Limited
Production Long-term Discrete, Worker Wide range Equipment
system assembly process skills crafts- range of
project job shops of skills monitors
lines industries persons skills
6-7 6-8
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TYPES OF PROCESSES MAKE-TO-STOCK VERSUS MAKE-TO-ORDER
PROJECT BATCH MASS CONT. Make-to-order
• Only activated in response to an actual order
Efficiency, Highly efficient,
• Both work-in-process and finished goods
Advantage Custom work, Flexibility, inventory kept to a minimum
latest speed, large capacity,
s technology quality
• Response time is less
low cost ease of control
Dis- Non-repetitive, Costly, slow,
Capital Difficult to Make-to-stock
change, far-
investment;
advantage small customer difficult to
lack of
reaching • Process activated to meet expected or forecast
s base, expensive manage errors,
demand
responsiveness limited variety
Machine
Automobiles, • Customer orders are served from target stocking
Construction, shops,
televisions, Paint, level
Examples shipbuilding, print shops, chemicals,
spacecraft computers, foodstuffs
bakeries,
fast food Hybrid
education
• Combines the features of both make-to-order and
6-9 make-to-stock
11-10
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MAKE-TO-STOCK VERSUS MAKE-TO-ORDER: MAKING HAMBURGERS MAKE-TO-STOCK VERSUS MAKE-TO-ORDER: MAKING HAMBURGERS
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MAKE-TO-STOCK VERSUS MAKE-TO-ORDER: MAKING HAMBURGERS PROCESS ANALYSIS
Systematic study of all aspects of a process
make it faster
more efficient
less costly
more responsive
Basic tools
process flowcharts
diagrams
maps
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6-15
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PROCESS FLOWCHARTS PROCESS FLOWCHART SYMBOLS
Look at production of goods or delivery of service from
broad perspective Operation
Segregate Inspection
Non-productive activities (inspection,
transportation, delay, storage) Transportation
productive activities (operations)
Delay
Storage
6-16 6-17
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PROCESS MAPPING: FULFILLING PHONE ORDERS TO BUY
PROCESS FLOWCHART OF APPLESAUCE PROCESSING
PRODUCTS
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6-18
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PROCESS ANALYSIS BUFFERING, BLOCKING, AND STARVING
Buffer: a storage area between stages where the output of
a stage is placed prior to being used in a downstream stage
Cycle time:
the average successive time between completions of Blocking: occurs when the activities in a stage must stop
successive units because there is no place to deposit the item
Starving: occurs when the activities in a stage must stop
Utilization: because there is no work
the ratio of the time that a resource is actually
activated relative to the time that it is available for Bottleneck: stage that limits the capacity of the process
use
11-21 11-23
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BUFFERING, BLOCKING, AND STARVING BOTTLENECK ANALYSIS: EXAMPLE
• The bottleneck time is the time of the slowest
workstation (the one that takes the longest) in a
production system
• The throughput time is the time it takes a unit to go
through production from start to end, with no waiting
Three-Station Assembly Line
1) What is the cycle time?
24 2) What is the throughput time?
3) What is bottleneck time?
4) Capacity?
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BOTTLENECK ANALYSIS: EXAMPLE CAPACITY ANALYSIS: EXAMPLE
• The bottleneck time is the time of the slowest workstation • Two identical sandwich lines
(the one that takes the longest) in a production system • These identical lines have three operations
• The throughput time is the time it takes a unit to go
• All completed sandwiches are wrapped
through production from start to end, with no waiting
Three-Station Assembly Line
1) What is the cycle time? 4 min.
2) What is the throughput time? 9 min 1) What is the capacity?
3) What is bottleneck time? 4 min 2) What is the throughput time?
4) Capacity? 15 units/ hr. 3) What is bottleneck time?
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CAPACITY ANALYSIS: EXAMPLE CAPACITY ANALYSIS: EXAMPLE
Capacity per hour is
• The two lines are identical, so parallel processing can
occur 3,600 seconds
= 96 sandwiches per hour
• At 40 seconds, the toaster has the longest processing 37.5 seconds / sandwich
time and is the bottleneck for each line
• At 40 seconds for two sandwiches, the bottleneck time of Throughput time is 30 + 15 + 20 + 40 + 37.5 = 142.5
the combined lines = 20 seconds seconds
• At 37.5 seconds, wrapping and delivery is the
bottleneck for the entire operation
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PROCESS ANALYSIS: EXAMPLE PROCESS ANALYSIS: ASSIGNMENT
Capacity?
Utilization of
stage 1? Capacity?
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CAPACITY ANALYSIS: EXAMPLE CAPACITY ANALYSIS: ASSIGNMENT
• Standard process for cleaning teeth
• Cleaning and examining X-rays can happen
• All possible paths must be compared
simultaneously
• Bottleneck is the hygienist at 24 minutes
Hourly capacity is 60 / 24 = 2.5 patients
X-ray exam path is 2 + 2 + 4 + 5 + 8 + 6 = 27 minutes
Cleaning path is 2 + 2 + 4 + 24 + 8 + 6 = 46 minutes
Longest path (for throughput time) involves the
hygienist cleaning the teeth, patient should complete
in 46 minutes
1) What is bottleneck time?
2) What is the throughput time?
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PRODUCTION PROCESS MAPPING AND
LITTLE’S LAW
LITTLE’S LAW
To solve process improvement problems
Total average value of inventory
• Sum of the value of raw materials, work-in-
process, and finished goods inventory
Little’s law
• There is a long-term relationship among
inventory, throughput rate, and flow time
• Inventory (WIP) = Throughput rate x
Flow time
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11-35
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LITTLE’S LAW: EXAMPLE LITTLE’S LAW: EXAMPLE
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967
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ASSIGNMENT: BREAD MAKING (1) ASSIGNMENT: BREAD MAKING (1)
Two steps are required
Two steps are required
1. Prepare the dough and bake the loaves (bread
1. Prepare the dough and bake the loaves (bread
making)
making)
2. Packaging the loaves
2. Packaging the loaves
Bread is made in batches of 100 loaves
Bread is made in batches of 100 loaves
Completes a batch every hour, which is the cycle
Packaging needs only 0.75 hour to place the 100
time
loaves in bags
Slower process so is the bottleneck
Packaging needs only 0.75 hour to place the 100 loaves in
bags
Has 75 percent utilization
1) What is the cycle time?
2) What is the throughput time?
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