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Processdesign

Johann Packendorff

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Process Design = att designa både designaktiviteter och produktionsaktiviteter!

Processes that Design Products

and Services

Concept Generation

Screening

Preliminary Design

Evaluation and Improvement

Prototyping and final design

Processes that Produce Products

and ServicesSupply Network Design

Layout and Flow

Process Technology

Job Design

Process design

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Decisions taken during the design of the product or service will have an impact on the process that produces them and vice versa

Products and services should be designed in

such a way that they can be created effectively

Processes should be designed so they can

create all products and services which

the operation is likely to introduce

Designing the Product or

Service

Designing the Processes that

Produce the Product or Service

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Finished designs which are:

High quality: Error-free designs which fulfil their purpose in an effective and creative way

Speedily produced: Designs which have moved from concept to detailed specification in a short time

Dependably delivered: Designs which are delivered when promised

Produced flexibly: Designs which include the latest ideas to emerge during the process

Low cost: Designs produced without consuming excessive resources

TRANSFORMED RESOURCES

Technical informationMarket informationTime information

TRANSFORMING RESOURCES

Test and design equipment

Design and technical staff

THE DESIGN ACTIVITY OUTPUTINPUTS

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Relatively early in the design activity the decisions taken will commit the operation

to costs which will be incurred later

100%

0%

Percentage of final product cost

committed by the design

Percentage of design costs

incurred

Start of the design activity

Finish of the design activity

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Processdesign

• Började med Scientific Management och Fords löpande band

• Konkret utformning av tillverkningsprocessen –syftar till förbättringar av kvalitet, hastighet, tillförlitlighet, flexibilitet och kostnadsläge

• ”Processorientering” - att organisera hela företaget ’längs’ processerna i stället för kring funktioner eller specialistavdelningar

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Processdesign - teman

Processdesign 1: Detaljutformning av operationer (job design)

Processdesign 2: Volym/varians-förhållandet och val av processform

Processdesign 3: Supply network design

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Processdesign 1: Detaljutformning av operationer

(Job design)

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Processes that Design Products

and Services

Concept Generation

Screening

Preliminary Design

Evaluation and Improvement

Prototyping and final design

Processes that Produce Products

and ServicesSupply Network Design

Layout and Flow

Process Technology

Job Design

Process design

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Operation (an activity that directly adds value)

Inspection (a check of some sort)

Transport (a movement of some thing)

Delay (a wait, e.g. for materials)

Storage (deliberate storage, as opposed to a delay)

Process mapping symbols derived from “Scientific Management”

Decision (exercising discretion)

Process mapping symbols derived from Systems Analysis

Direction of flow

Input or Output from the process

Activity

Beginning or end of process

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Standard sandwich process

Raw Materials Assembly Stored

SandwichesMove to Outlets

Stored Sandwiches Sell

Take Payment

Customer Request

Raw Materials

Assembly Take Payment

Customer Request

Customized sandwich old process

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PrepareAssemble as

requiredTake

payment

Bread and Base filling

Stored “Bases”

Fillings

Assemble whole sandwich

Customer Request

Use standard “base”?

Assemble from standard “base”

No

Yes

The operation of making and selling customized sandwiches

The outline process of making and selling customized sandwiches

The detailed process of assembling customized

sandwiches

Sandwich materials and

customers

Customers “assembled” to

sandwiches

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Bread and Base filling

Assembly of “sandwich

bases”

Stored “Bases”

Fillings

Assemble whole sandwich

Take Payment

Customer Request

Customized sandwich new process

Use standard “base”?

Assemble from standard “base”

No

Yes

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Left hand Right hand

Pick up base plate

Insert into fixture

Pick up two supports

Locate back plate

Pick up screws

Locate screws

Pick up air driver

Fasten screws

Replace air driver

Pick up centre assembly

Inspect centre assembly

Locate and fix

Switch on timer

Wait to end test

Inspect

Transfer grasp

Put aside

Wait

Hold base plate

Wait

Hold centre assembly

Inspect

Transfer grasp

Wait

‘Two handed’ process chart

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Processdesign 2:Volym/varians-förhållandet styr

valet av processform(process technology / layout & flow)

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MowRock

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Manufacturing: Different process types are appropriate for different

Volume-Variety combinations

High

Variety

Low

Low Volume HighProject

Jobbing

Mass

Continuous

Batch

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Deviating from the ‘natural’ diagonal on the product-process matrix has consequences for

cost and flexibility

Project

Jobbing

Batch

Mass

Continuous

Professionalservice

ServiceShop

Massservice

None

None

Less process flexibility

than is needed so high cost

More process flexibility

than is needed so high cost

The ‘natural’ line of fit of process to volume/variety characteristics

Manufacturing operations

process types

Service operations process types

Variety

Volume

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Project Processes

• One-off, complex, large scale, high work content “products”

• Specially made, every one customized• Defined start and finish: time, quality

and cost objectives• Many different skills have to be

coordinated • Fixed position layout, resources

brought to product

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Jobbing Processes

• Very small quantities: “one-offs”, or only a few required

• Specially made. High variety, low repetition. “Strangers”

• Skill requirements are usually very broad

• Skilled jobber, or team of jobbers complete whole product

• Fixed position or process layout (routing decided by jobbers)

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Batch Processes• Higher volumes and lower variety than for

jobbing• Standard products, repeating demand. But

can make specials• Specialized, narrower skills• Set-ups (changeovers) at each stage of

production• Process or cellular layout, predetermined

planned routing

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Mass (Line) Processes• Higher volumes than Batch

• Standard, repeat products (“runners”)

• Low and/or narrow skills

• No set-ups, or almost instantaneous ones

• Cell or product layout: a fixed sequence of operations

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Continuous Process• Extremely high volumes and low variety: often

single product• Standard, repeat products (“runners”)• Highly capital-intensive and automated• Few changeovers required• Difficult and expensive to start and stop

the process• Product layout: usually flow along

conveyors or pipes

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Processdesign 3:Vad vill vi att andra företag skall utföra i produktionsprocessen?

(supply network design)

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Traditionell logistiksyn

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Traditionellt logistikflöde

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Supply Chain Management

• Process design involves designing not only processes internal to the company

• Designing related processes that take place in other companies is also an issue for operations managers

• The company is in fact a part of a wider network• In the network of companies, meta-processes must

be designed (supply chains)

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Advantages of taking a network perspective

Vertical integrationHow much of the network should the operation seek to own?

Taking a network perspective helps

businesses address the three key network

design decisions.

Location of the operationWhere should the operation be located?

Balance of capacityHow should capacity be managed in the long-term?

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Total and Immediate Supply Networks

“Second tier” Suppliers

“First tier” Suppliers

“Second tier” Customers

“First tier” Customers

The Operation

The Operation

Supply side of the network

Demand side of the network

The Immediate Supply Network

The Total Supply Network

Internal Supply Networks

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Firms in the same industry may configure their supply networks in different ways

Home Office Market

Corp. Market

Suppliers

Retailers

COMPAQ

Home Office Market

Corp. Market

Suppliers

Retailers

DELL

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Operations performance should be seen as a whole supply chain issue

Benefits of looking at the whole supply chain include

Puts the operation into its competitive context

Helps to identify the key players

Shifts emphasis to the long term

Sensitizes the operation to macro changes

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Direction, extent and balance of vertical integration

Raw material

suppliers

Component maker

Assembly operation Wholesaler Retailer

Downstream vertical integration

Upstream vertical integration

Narrow process span

Wide process span

Should excess capacity be used to supply other companies?

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The location of operations

OperationSupply-side factors

Demand-side factors

Labour costs

Land costs

Energy costs

Transportation costs

Community factors

Labour skills

Suitability of site

Image

Convenience for customers

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Outsourcing decisions affect

• Quality

• Speed

• Dependability

• Flexibility

• Costs

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opportunity

In-source

indirect

direct

coordination

risk risk

coordination

market price

supplier profit

Out-source

risk

coordination

“allocated”

Buyer Costs

Relative Costs in a “Do vs Buy” Decision