process fundamantals

Rajiv Misra

PROCESS FUNDAMENTALS

Rajiv Misra

Supplier Value-added tasks

Customer

Requirements Requirements

Inputs

Feedback

Output

Feedback

Process: Linked activities with the purpose of producing a product or service for a customer and characterized by a set of specific inputs and value-added tasks that produce a set of specific outputs. A process has clearly defined start and end boundaries.

Resources

Decision Criteria

Process-owner

Periodicity Measures

Approach Deployment Learning Integration (Alignment, Linkage)

WHAT IS A PROCESS

Rajiv Misra

InputsOutputs

Feedback

Measures

Process Owner

Periodicity

WHAT IS A PROCESS

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AOriginal Inputs Original Outputs

Feedback

Measures

Process Owner

Periodicity

AInputsOutputs

Feedback

Measures

Process Owner

Periodicity

Custom

ers, Stake holders

Suppliers

WHAT IS A SYSTEMATIC PROCESS

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Level 2 Tactical Process

Level 3 OperationalProcess

Level 1 Strategic Process

In-Process Measures(still time to change the result)

End-of-ProcessMeasures (result)

Process Measures

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PROCESS FUNDAMENTALSBread Making

Flour, Yeast and Water are converted to Bread.Process: Mixing

Proofing (letting bread to rise)BakingPackaging

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There are two mixers,2 proofers and two Ovens so organized that the ingredients mixed on the first mixer are automatically fed to the first proofer and then sent to the first oven.All the bread loaves are packaged in the same packaging line (only one).The company makes many types of Breads

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Draw it diagrammatically

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Draw it diagrammatically, Using the following Symbols

Storage of Goods (WIP/FG)

Flow

Task or Activity

MeaningSymbols

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MIX

RM

PROOF BAKE

WIP

MIX PROOF BAKE

PACK

FG

Parallel Lines. Each line is in SeriesWhy WIP in front of PackingHow do we determine Capacity

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If Mixers, proofers and ovens were not set up as distinct lines Draw it diagrammatically

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MIX

RM

PROOF BAKE

WIP

MIX PROOF BAKE

PACK

FG

Individual Tasks operate in Parallel

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PROCESS FUNDAMENTALSCroissant Making

The process is in two partsDough: Mix, Proof, Roll and Cut Fillings: MixWith Dough and Filling ready.Fill and Fold, Bake and Pack

Draw it diagrammatically

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PROCESS FUNDAMENTALSCroissant Making

MIX PROOF Roll/Cut

MIX

FG

Dough Dough

Fills Fills Fill/Fold Bake Pack

Parallel lines – but is it same as earlierWhat is the Capacity?

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WIPBread Making

What is the CYCLE TIMEWhat is the Manufacturing Lead Time

Packing

1 hour per 100 loaves 3 / 4 hour per 100 loaves

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WIPBread Making

What is the CYCLE TIME = 60/100 (Units??)What is the Manufacturing Lead Time = 1 and 3 /4 hours

Packing

1 hour per 100 loaves 3 / 4 hour per 100 loaves

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WIP

Bread Making


Packing

3 / 4 hour per 100 loavesBread Making

1 hour per 100 loaves


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WIP

Bread Making


Packing




1 / 2 hour per 100 loaves

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PROCESS FUNDAMENTALS – CASE 1

WIP

Bread Making

What is the Manufacturing Lead TimeIt depends on schedule.

Packing





Case 1 – Each batch starts every 3 / 4 hours

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What is the Manufacturing Lead Time

WIP

Bread Making

Packing





Each batch starts every 3 / 4 hour to coincide with packing

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MLT = 1 and 3 / 4 hours

Line # Batch # Start End Pack endBread Bread

Line 1 Batch 1 9.00 10.00 10.45Line 2 Batch 2 9.45 10.45 11.30Line 1 Batch 3 10.30 11.30 12.15Line 2 Batch 4 11.15 12.15

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WIP

Bread Making


Packing





Case 2 – Each machine is loaded every 1 and ½ hr

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WIP

Bread Making


Packing





1 and 1/2 hr so that bread stock does not pile up

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MLT = Average of 1-3/4 and 2-1/2 hours = 2- 1/8 hours

Line # Batch # Start End Pack Pack MLT (HR)Bread Bread Start end

Line 1 Batch 1 9.00 10.00 10.00 10.45 1-3/4 Line 2 Batch 2 9.00 10.00 10.45 11.30 2-1/2Line 1 Batch 3 10.30 11.30 11.30 12.15 1-3/4Line 2 Batch 4 10.30 11.30 12.15 1.00 2-1/2

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SETTING UP A COOKIE COMPANY AT XL

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To meet your expenses you decide to start a Co.

Vision: Provide fresh cookies to starving students

late at night

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Your idea is to bake fresh cookies to order, using any combination of ingredients that the buyer wants

The cookies will be ready for pickup at your room within an hour

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COOKIE COMPANY AT XL

What type of industry are we taking of?

MTS/MTO/ATO/ETO??

Location of the Decoupling Point ??

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BILL OF MATERIALS

DoughCoconut, Raisins, Chocolate Chips etc (Additives)

Additives are added based on customer specifications.

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THE PRODUCTION PROCESS

Mix all the ingredients in a Food Processor.Spoon out the dough onto a trayPut the cookies into the ovenBake themTake out the tray from the oven Let the cookies cool offTake cookies off the trayPack them

Ingredients differ from

order to order

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THE PRODUCTION ROUTE CARD

YOU Mix all the ingredients in a Food Processor.Wash the mixing bowl from previous batchAdd all the ingredients Mix them in the Food ProcessorThe mixer holds ingredients for up to 3 dozen cookiesThis takes 6 minutes to do

Mixing dough for 1,2 or 3 dozen takes same time

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YOU Spoon out the dough onto a tray.

This takes 2 minutes

This finishes your work and your room-mate starts his work

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Room-Mate puts the cookies into the oven.He first sets the timer and thermostat, which takes one minuteThe cookies bake for next 9 minutesTotal baking time is 10 minutes, of which your room mate is busy for the first minuteThe oven holds only one tray, a second dozen takes an additional 10 minutes to bake

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Room-Mate performs the last steps also.He first removes the cookies

Takes no time, but must be done on timeThe cookies cool for 5 minutesHe then packs the cookies ( 2 minutes/doz)He collects the payment for order (1 min)

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This is the process

Some Simplifications (“Model”)

e.g. Preheating of the oven (Startup) etc not considered etc.

Draw its Process Flow Diagram

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PROCESS FLOW DIAGRAM

Mix and Spoon

Load Oven,Set

Times, Begin bake

Continue bake Cool

Receive payment

Pack

Hold

Mins 8 1 9 5 2 ( 6 + 2 )

Mins 1

You Room Mate

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ANALYSIS AND VOCABULARY - 1

How long will it take to fill a rush order?(Assume no other cookies are being processed)

26 minutes 6 minutes : Mixing2 minute : Spooning

10 minutes: Loading & Baking5 minutes : Cooling2 minutes : Packing1 minute : Taking Payment

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ANALYSIS AND VOCABULARY- 1

How long will it take to fill a rush order?(Assume no other cookies are being processes)

26 minutes

This is the Manufacturing Lead Time (diff names)

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How many orders can you fill in a night (4 hours)?

Manufacturing Lead Time: 26 minutesNo of working minutes: 240 minutesNo of orders that can be filled: 240/26 ~ 9

Is it correct??

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MLT is not the the relevant number to calculate how many cookies can be made in a night

We are looking for the capacity of the process as a whole ? What controls the capacity? (Refer Process Flow)

Considering only orders for a dozen cookiesThe slowest stage is Baking.A tray of cookies shall pop out every 10 minutes

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Considering only orders for a dozen cookiesThe slowest stage is Baking.A tray of cookies shall pop out every 10 minutes

The slowest stage is called the BOTTLENECK10 minutes is the CYCLE TIME for the whole process CAPACITY of the process in the Inverse of Cycle Time which is 240/10 = 24 dozen cookies

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A finer point:Some start-up and Shut Down time is needed.First dozen cannot come start till 8 minutes after you open.The last dozen must come out before 8 minutes of close (so that rest operations till payment have time)Usual concern is with steady state. Because work can be left partially completed overnight

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We considered orders for one dozen each. Let us consider different order sizes.How many cookies can we produce if everybody orders 2 dozen cookies at a time?

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What time will the Mixing Stage take?10 mins (6 + 2 + 2).This time is for the order not for a dozen.

What time will baking take?10 minutesThis time for a dozen. It is straight run time and there is no setup time

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Hence, capacity in this case is not affected by order size as the bottleneck’s capacity is in dozen cookies per hour and independent of order size

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How much time can you and your room mate study during this four hours?Look at the work for every 10 minute baking cycle

You have 8 minutes of work for first tray of order and 2 minutes for 2nd or 3rd tray.Room mate has 4 minutes of work (what about payment? – for a 3 tray order, he spends 3,3 and 4 minutes for each baking cycle. This time is labor time. Rest is idle time

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Can idle time vary day to day?What does it depend on?

It depends on nature of order size (proportion of 1, 2 or 3 dozen orders)It depends on whether there are enough orders

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Impact of labor costs, if you hired people?

If we hired people we would have to pay even if they were idle.Is then labor cost Fixed or Variable?Hence, the need for Labor Flexibility – when you worked idle time is spent studying (hopefully)

For hired workmen, other work they can do.

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Rajiv Misra


Can you afford to fire your roommate and do all the work yourself ?Consider 2 tray (dozen) orders only.How would you go about it. Think graphically!

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We shall draw what is known as a GANTT Chart

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Mix, Spoon

Bake

Cool

Pack

Pay

YOU

ROOMie

OVEN

0 5 10 15 20 25 30 35 Minutes

GANTT Chart

Activities

Resources

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Mix, Spoon

Bake

Cool

Pack

Pay

YOU

ROOMMate

OVEN

0 5 10 15 20 25 30 35 Minutes

Gantt Chart for two tray orders

8

8

10

1

2

2

10

5

2

2

5

2

2

1

1

Tray 1

Tray 2

SHIP

Note : This shift so that Both you and roommate do not work together

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GANTT Chart shows that both you and room mate do not work together, so you can fire your roommate.

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Rajiv Misra


Can you afford to fire your roommate and do all the work yourself ?Consider 1 tray (dozen) orders only.Draw a GANTT Chart

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Let’s consider 2 tray order and only YOU working

Cycle Time = 20 minutes.Labor-mins = 20 minutes (for one person)

Labor time needed = 17 minutes. 8 + 2 (Mix) + 1 + 1 (Bake) + 2 +2 (pack) + 1 (pay)

Therefore, only YOU can manage

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Let’s consider 1 tray order and only YOU workingCycle Time = 10 minutes.

Labor-mins = 10 minutes (for one person)Labor time needed = 12 minutes.

8 (Mix) + 1 (Bake) + 2 (pack) + 1 (pay)Therefore, only YOU alone cannot manage.

You are now the Bottleneck

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What happens if you buy a new oven?

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Mix and Spoon

Continue bake Cool Receive

paymentPack

Mins 8 10 5 2 1( 6 + 2 )

Cap/hr 7.5 12 30/hr 60/hr(in doz)

Continue bake

The bottleneck is the Mixing Station at 7.5 doz/hr - for one tray!

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What happens if we get all 3 tray orders ?

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Mix and Spoon

Continue bake Cool Receive

paymentPack

Mins 8 10 5 2 1( 6 + 2 )

Cap/hr 7.5 12 30/hr 60/hr

3 doz in 12 (6+2+2+2) mins can be mixed. Therefore capacity is 15 dozen/hr

Continue bake

The bottleneck is the Baking at 12 doz/hr - for three trays!

15

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Therefore, the identity of the bottleneck and thus the capacity of the system depends on the exact composition of the orders.

Hence, equivalent measure are sought to be developed like value in Rs, tonnages, Standard man Hours etc.

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Parting thought:

Why did we not consider Cooling in the Capacity calculations?

What would happen to Capacity if Cooling time becomes 15 minutes instead of 5 minutes currently?

process fundamantals

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