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Types of Production Systems – Job, Batch and Flow, Assembly Lines, Process Plants, Intermintent and continuous production.
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Types of Production Systems – Job, Batch and Flow, Assembly Lines, Process Plants, Intermintent and continuous production
Process Design indicates how the manufacturing resources are organized in the system so that the flow patterns are optimized and the operations management tools can be effectively used. It is a early step in Ops management Choices we have to make regarding the flow of parts in a shop For ex type of machine to use, the number of machines of each type and their placement on the shop floor
Factors Influencing Process Choices • Volume: Average quantity of the products produced in a manufacturing system • Low volume: Turnkey project management firms such as L&T and BHEL • High volume: Consumer non-durable and FMCG sector firms, Chemical Processing , bulbs • Mid-volume: Consumer durables, white goods and several industrial products • Variety: Number of alternative products and variants of each product that is offered by a manufacturing system • Variety of product offerings is likely to introduce variety at various processes in the system; alternative production resources, materials, and skill of workers • example Tata Motors Titan watches. • Example: travel agency • Flow: Flow indicates the nature and intensity of activities involved in conversion of components and material from raw material stage to finished goods stage. It provides for clues to the operations manager about the prod planning and control required.
Relationship between volume and variety High High Volume Variety Mass Production Petrochemicals, Automobile Project Organisations Turnkey Project Execution Mid volume Mid variety Motor Manufacturing Pharmaceuticals
Processes & Operations SystemsAvailable Alternatives • Process characteristics are largely determined by the flow of products in the operating system • Three types of flows occur in operating systems: • Continuous • Intermittent • Jumbled
Continuous Flow System • Characterized by a streamlined flow of products in the operating system • Conversion process begins with input of raw material at one end, progresses through the system in an orderly fashion to finally become finished goods at the final stage • Production process is sequential and the required resources are organised in stages • Examples: • several chemical processing industries such as manufacture of petrochemicals, • steel, cement and glass • In a discrete manufacturing industry high volume production of very few varieties (such as electrical bulbs or spark plugs)
Paper ManufacturingAn example of process industry Processing of the wood Logs and chips of wood stored Crushing of logs and chips Preparatory Drying the wood pulp Refining the Wood pulp Cleaning & Bleaching Pulp making Stretching Paper rolling Cutting Final packing Paper making
Operations Management Issues Process Industry • The notion of capacity • Flow rate determines capacity • Bottleneck easily identifiable • Importance of maintenance • Need to maximize throughput and productivity • Once the logs are fed to the system it is not possible to stop the system • There must be a balance of capacity between all stages of manufacturing to maintain an even flow of materials from raw material to the finished goods stage • Failure at any intermediate stage will have an adverse effect on the entire system
Continuous Flow SystemMass production in discrete manufacturing • In discrete manufacturing various components are manufactured in discrete fashion and the final product is obtained through an assembly process • the volume of production is very high and the number of variations in the final product is low • Examples: • Automobile and two wheeler manufacturers, • Manufacturers of electrical components such as switches and health care products such as disposable syringes • The entire manufacturing is organised by arranging the resources one after the other as per the manufacturing sequence • Need to have good product based layout
Intermittent Flow System • Characterized by mid-volume, mid-variety products/services • Manufacturing resources will be shared by group of products example car paint shop • Each product has different processing and sequence. this Increases the flow complexities • Flow and capacity balancing are difficult but important • Pharmaindustries use batch production methods • Discrete industries use alternative methods of designing layout issues • Capacity Estimation is hard • Production Planning & Control is complex
Process Design for Intermittent Flow in Discrete Manufacturing Pre-manufacturing activities Other rotating parts Gear Components Shafts Housings Prismatic Components Sheet Metal parts Assembly & Test Assembly & Test Assembly & Test Product A Product B Product C Dedicated Manufacturing Support for the products
Intermittent In case of discrete the entire manufacturing can be split into units in which similar processing is needed , thus manufacturing resources can be combined and arranged in that fashion. One batch can be produced in one of these units and another batch in another unit. Manuf resources are organized on basis of similarity of manuf process Components of various product variants will flow intermittently up to the final assembly stage Issues in Intermittent: • Capacity estimation is complex • Changeover from one variety to another , impact of changeover
Jumbled Flow System • Occurs on account of non-standard and complex flow patterns characteristic in certain systems • Highly customised items • customer orders for one or a few • Examples • turnkey project executor such as BHEL or L&T • customised manufacturing systems such as tool room operators • Operational complexity arising out of jumbled flow is high. Managing larger set of activities • Capacity, Cost accounting and estimation systems are crucial as there is a constant need to quote for specific customer orders • Ex construction multiple entities are involved such as architects govt bodies, construction workers society etc. • Many stages are there : foundation, design, electrical systems)
Process design for operationsSalient feature of alternative choices Flow Characteristics Continuous Intermittent Jumbled Product High Volume, Very low Mid volume, Mid variety Very high variety, low variety volume Characteristics Examples of Process Industry, Mass Batch production in Project Organisations, production systems in Process and discrete Tool Rooms, General production systems discrete manufacturing manufacturing purpose fabricators Issues of importance Flow Balancing, Manufacturing system Capacity Estimation, Maintenance, Capacity and layout design, Scheduling utilisation and Changeover Cost estimation debottlenecking, management, Capacity planning and estimation Operations Forecasting, Capacity Project Management & ,Product Planning and estimation, Scheduling, Capacity Management Tools & layout design, Flow planning and Techniques Group Single optimisation, piece flow design Technology layout scheduling, Functional Layout design
Planning Premises in Process Design • Three generic planning premises are in use in operations management; • Make-to-Stock: more amenable for systems with fewer product varieties and high production volume as in the case of continuous and streamlined flow systems • Assemble-to-order: useful for intermittent flow systems catering to the mid-volume mid-variety situations • Make-to-order: organisations typically belong to manufacturer of high product variety (jumbled flow process systems) use this planning methodology
Complexity of Operations ManagementSome indicators High • Greater Variety in • Products, Models, • Process Routings, • Technology choices Made to Order More stages in Production Assemble to Order Jumbled Flow Made to Stock Intermittent Flow Low Continuous Flow
Product – Process Matrix Low Volume Low Standardisation One of a kind Multiple Products Low Volume Few Major Products Higher Volume High Volume High Standardisation Commodity Products Jumbled Flow (Job Shop) None Satellite Launch Vehicle Disconnected Line Flow (Batch) Machine Tools Connected Line Flow (Assembly Line) Auto electric parts None Continuous Flow Polyethylene Source: Adapted from Hayes, R.H. and Wheelright, S.C., (1979), “Link manufacturing process and product life cycles”, Harvard Business Review, 57 (1), 133 – 140.
Cross-Functional Decision Makingor, who has a stake in process choice? • Marketing wants fast response to customer demand • Finance must find the funds to configure the process • HR must provide the properly skilled workers • IT must serve different data requirements • Accounting must be flexible in setting performance measures
What is Service Design Design of Operations system for service involves making choices with respect to • Location • Capacity • Technology and • Layout of the system In service customer participation is inevitable. Consider setting up a Restaurant
Service Design Setting Up of a Restaurant in city of Hyderabad • Assume that we have the land space available. • When we think of restaurant things that are essential from a service point are: • Well laid out dining space with tasteful decoration of surroundings • Nature and the breadth of menu • Use of technology and human elements so that the system is responsive From a Service Orientation achiving the outcomes requires us to answer questions such as • How do we design the dining area and the kitchen • How do we lay out the service delivery system • What can be capacity of the dining area and the kitchen, considering the uncertinity in the arrival pattern of the guests • How can we measure and improve the quality of the restaurant ?
Process Design Issues Service Systems • Customer contact signifies • the extent to which customer participates in the preparation and consumption of service • the nature and intensity of interaction that the customer has with the entities and service personnel • the level of exposure that the customer has of the various facets of the service system while the customer is receiving the service. Example Of a Automobile garage Thus degree of customer contact is a design choice and it would impact the service operations and delivery system
Process Design Issues Service Systems • Degree of complexity refers to the steps and sequences in the process measured by the number and intricacy of the steps • Degree of divergence indicates the executional latitude or variability of these steps and sequences these influence the service process design Full Service v/s Low Cost airlines The number of steps involved in Jet airways v/s spice jet Divergence occurs due to the multiple OPTIONS available at each step of the process