Learning Objectives
Process Selection and Design
Dr. Richard Jerz
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• Explain the strategic importance of process
selection.
• Explain the influence that process selection
has on an organization.
• Explore process alternatives
• Describe production and process
technologies
• Examine process analysis tools
• Define some modern process technologies
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Process Strategy
Process Selection and
System Design
Forecasting
Capacity
Planning
Facilities and
Equipment
Product and
Service Design
Technological
Change
Layout
Process
Selection
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• Key aspects of process strategy
• Capital intensive – equipment/labor
• Long term commitment
• Technology
• Effects
• Cost
• Process and product flexibility, adjust to changes
• Design
• Volume
• Technology
Work
Design
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• Efficiency
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Major Implications
How Do We Produce
Goods/Services
Capacity planning
Layout of facilities
Equipment
Design of work systems
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• Make or Buy?
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Available capacity
Expertise
Quality Considerations
The nature of demand
Cost
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Process Selection
• Volume
Product-Process Selection
Batch
• Expected output
• Variety
• How much
Job Shop
Repetitive
• Flexibility
• What degree
Continuous
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Process, Volume, and Variety
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Process and Characteristics
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Process Technology Strategy
• Technology and Innovation: The application
of scientific discoveries to the development
and improvement of products, services and
operations processes.
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Kinds of Technology
• Operations management is primarily
concerned with three kinds of technology:
• Product and service technology
• Process technology
• Information technology
• All three have a major impact on:
• Costs
• Productivity
• Competitiveness
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Technology and Competitive
Advantage
• Innovations in
Automation Technology
• Automation: Machinery that has sensing and
control devices that enables it to operate
• Products and services
• Fixed automation
• Programmable automation
• Cell phones
• iPhone
• Wireless computing
• Examples
• Process technology
• Computer-aided design and manufacturing
systems (CAD/CAM)
• Numerically controlled (NC) machines
• Robots
• Flexible manufacturing systems (FMS)
• Computer-integrated manufacturing (CIM)
• Increasing productivity
• Increasing quality
• Lowering costs
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Process Analysis Tools
Crossover Charts: Select the
Process with Lowest Cost
• Crossover Chart – Shows which alternative is
best at a production volume
• Flow Diagrams - Shows the movement of
materials
• Time-Function Mapping - Shows flows and time
frame
• Value Stream Mapping - Shows flows and time
and value added beyond the immediate
organization
• Process Charts - Uses symbols to show key
activities
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How is cost determined?
Accounting methods
Engineering economics/financial analysis
Resource consumption model (RCM)
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Break-even (crossover)
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Process Flow Diagram
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Process Chart
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Time-Function Mapping
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Modern Production
Technologies
Value Stream Map
Machine technology
Robots
Vision system
Process control, people-machine interfaces
Flexible manufacturing systems (FMS)
Automated storage and retrieval systems
(ASRS)
• Automatic identification systems (AIS)
• Computer-integrated manufacturing (CIM)
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Machine Technology
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Robots
Increased precision
Increased productivity
Increased flexibility
Improved
environmental impact
• Reduced changeover
time
• Decreased size
• Reduced power
requirements
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Robots
Robotic Welding
• Perform monotonous
or dangerous tasks
• Perform tasks requiring
significant strength or
endurance
• Generally enhance
consistency and
accuracy
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Vision Systems
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Process Control - Example
• Particular aid to
inspection
• Consistently accurate
• Never bored
• Modest cost
• Superior to individuals
performing the same
tasks
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Process Control
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Flexible Manufacturing
Systems (FMS)
• Computer controls both the workstation and
the material handling equipment
• Enhance flexibility and reduced waste
• Can economically produce low volume at
high quality
• Reduced changeover time and increased
utilization
• Stringent communication requirement
between components
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FMS Examples
Automated Storage and
Retrieval Systems (ASRS)
• Automated placement
and withdrawal of
parts and products
• Reduced errors and
labor
• Particularly useful in
inventory and test
areas of manufacturing
firms
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Automated Guided Vehicle
(AGV)
• Electronically guided and controlled carts
• Used for movement of products
Automatic Identification
Systems
• Barcode
• RFID
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Improved data acquisition
Reduced data entry errors
Increased speed
Increased scope of process automation
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CIM Wheel (SME)
Computer Integrated
Manufacturing (CIM)
• Extension of flexible manufacturing systems
• Backwards to engineering and inventory control
• Forward into warehousing and shipping
• Can also include financial and customer service
areas
• Reducing the distinction between lowvolume/high-variety, and high-volume/lowvariety production
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Technology in Services
• Computers
• Barcode & sensors (RFID)
• Internet
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