transparency masters to accompany operations management, 5e (heizer & render) 7-8 process a...

Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 7-8

Process

• A collection of tasks, connected by flows of goods and information, that transforms various inputs into more valuable outputs

Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 7-8 © 1998 by Prentice Hall, Inc.

A Simon & Schuster CompanyUpper Saddle River, N.J. 07458

Process Flow Diagram

• Tasks are rectangles

• Flows are arrows

• Inventory is inverted triangle

• Decision point is diamond



Process Flow Diagram

• May show non-value added steps

• Process improvement

• Capacity calculations

Production Process Flow Diagram

Shipping

Customer

Customer sales representative

take order

Prepress Department(Prepare printing plates

and negatives)

Printing Department

Collating Department

Gluing, binding, stapling, labeling

Polywrap Department

Purchasing(order inks, paper,

other supplies)

Vendors

Receiving

Warehousing(ink, paper, etc.)

Accounting

Information flowMaterial flow



Process Strategies

• Involve determining how to produce a product or provide a service

• Objective• Meet or exceed customer requirements• Meet cost & managerial goals

• Has long-run effects• Product & volume flexibility• Costs & quality

Types of Process Strategies

ContinuumContinuum

• Process strategies that follow a continuum• Within a given facility, several strategies

may be used• These strategies are often classified as:

Repetitive-Focused

Product-FocusedProcess-Focused



Process-Focused StrategyJob Shop

Facilities are organized by processSimilar processes are together

Example: All drill presses are together

Low volume, high variety products‘Jumbled’ flow

OperationProduct A

Product B

1111 2222 3333Other names

Intermittent process Job shop



Process-Focused Strategy Examples

Bank

© 1995 Corel Corp.

Machine Shop© 1995 Corel Corp.

Hospital© 1995 Corel Corp.



Process Focused Strategy -Pros & Cons

• Advantages• Greater product flexibility

• More general purpose equipment

• Lower initial capital investment

• Disadvantages• More highly trained personnel

• More difficult production planning & control

• Low equipment utilization (5% to 25%)



Batch Strategy

• Facilities often organized in a line• Product is made in batches• Allows for many output options

• Examples: beer, soup, paint, medicines

• AKA Disconnected repetitive



Batch Strategy -Considerations

• Allows for greater variety of product

• Gains some cost efficiencies

• More structured than process-focused, less structured than repetitive

• Capacity is set by size of batch process



Repetitive Focused Strategy

• Facilities often organized by assembly lines• Characterized by modules

Parts & assemblies made previously

• Modules combined for many output options

• Other names Assembly line Production line Flow shop



Repetitive-Focused Strategy - Examples

Truck

© 1995 Corel Corp.

Clothes Dryer

© 1995 Corel Corp.

Fast Food

McDonald’sover 95 billion served

McDonald’sover 95 billion served

© 1984-1994 T/Maker Co.



Repetitive Focused Strategy -Considerations

• More structured than process-focused, less structured than product focused

• Enables quasi-customization• Using modules, it enjoys economic

advantage of continuous process, and custom advantage of low-volume, high-variety model

• Less variety• Change in volume difficult



Product-Focused Strategy

Facilities are organized by productHigh volume, low variety productsWhere found

Continuous process manufacturing Commodities

Operation

Products A & B

11 22 33

Other names Line flow production Continuous production



Product-Focused Examples

© 1995 Corel Corp.

Light Bulbs (Discrete)

Paper (Continuous)

© 1984-1994 T/Maker Co.

© 1995 Corel Corp.

Soft Drinks (Continuous, then Discrete)



Product-Focused Strategy Pros & Cons

• Advantages Lower variable cost per unit Lower but more specialized labor skills Easier production planning and control Higher equipment utilization (70% to 90%)

• Disadvantages Lower product flexibility More specialized equipment Usually higher capital investment



Product-Process Examples

• Auto industry• Prototype to high volume manufacturing

• Food prep• Dream Dinners example for batch

http://dreamdinners.com/main.php?static=dd_dreamdinnersexperience

Fit of Process, Volume, and Variety

Process focusprojects, job shops,

(machine, print, carpentry)

Standard Register

Repetitive(autos, motorcycles)

Harley DavidsonProduct focus

(commercial baked goods, steel, glass)

Nucor Steel

High VarietyOne or few units per run, high variety(allows customization)

Changes in modulesModest runs, standardized modules

Changes in attributes (such as grade, quality, size, thickness, etc.) Long runs only

Mass Customization

(difficult to achieve, but huge

rewards)

Dell Computer Co.

Poor strategy

(Variable costs are high)

Low-Volume(Intermittent)

Repetitive Process(Modular)

High-Volume(Continuous)



Volume and Variety of Products

Poor Strategy(Fixed costs and cost changing to other products

are high)

Volume andVariety ofProducts

Low Volume HighVariety Process

(Intermittent)

RepetitiveProcess

(Modular)

High VolumeLow Variety

Process(Continous)

One or very fewunits per lot

Projects

Very small runs, highvariety

Job Shops

Modest runs, modestvariety

DisconnectedRepetitiveBatch

Long runs, modestvariations

ConnectedRepetitive

Very long runs,Changes inattributes

Continuous

Equipment utilization 5%-25% 20%-75% 70%-80%

Poor Strategy(High variable

costs)

Work Cells

• Used when volume warrants a special arrangement of equipment

• Take people and machines ordinarily dispersed

• Arrange in a small group to focus on production of single product or group of related products

Work Cells

• A temporary assembly-line-oriented arrangement of machines and personnel in what is ordinarily a process-oriented facility

• Example: job shop with rearranged machinery and personnel to produce 30 unique control panels

Work Cells — Some Advantages• Reduced work-in-process inventory

• Less floor space required

• Reduced raw material and finished goods inventories required

• Reduced direct labor costs

• Heightened sense of employee participation

• Increased utilization of equipment machinery

• Reduced investment in machinery and equipment

Note: Green & Sadowski report increased capital investment and lower machine utilization

TM 10 - 10

transparency masters to accompany operations management, 5e (heizer & render) 7-8 process a...

Documents

focused slide

operations management

transparency masters

e heizer render

prentice hall

process flow diagram

process similar processes

flow operation product