Chapter 6.docx

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Ryerson University
Global Management Studies
GMS 401
Carmen Schifellite

Chapter 6: Process Design and Facility Layout LO 1: Introduction and Process Types product design, strategic capacity planning, process and layout design = L-T consequences for org covert inputs into outputs → achieve mission Process design - determine form and function of how goods/services produced - due to tech ∆ and methods improvement Make or buy - d/ whether to m/ a part or product in-house or to buy it or segment of production f/ another comp - based on core capabilities, capacity, quality, whether demand is steady/temporary, tech, cost Job Shop - process type used when low quality of high-variety customized goods/services is needed - process intermittent - work shifts f/ one small job to next, each w/ diff req - high flexibility of equip and skilled workers - ex: one of a kind tool Batch process - type of process used when a moderate vol and variety of goods/services desired - equip need not be as flexible - still intermittent - skill level of workers not need be as high ← less variety in job - ex: bakery, movie theater, ice cream - managerial challenge: scheduling batches to meet planned production and demand while utilizing resources at high level - important in batch = capacity issues and tech mgmt - when only one product inefficient b/c process not use enough automation Repetitive process - type of process used when higher quantities of more std goods/services are needed - slight flexibility of equip needed - skill of workers = low - production line - sequence of machines (same speed)/workstations (variable speed) that perform operations on part/product - ex: automatic carwash - assembly line - production line where parts are added to a product sequentially - managerial challenges: capacity bal, tech mgmt, quality, materials mgmt Continuous process - used when high vol of highly std output req - not variety in output - no need for equip flexibility - workers = low skilled - can't be counted - ex: sugar, internet - managerial challenges: faster speed of production, greater care req for automated control of flow, stat and stop of production - ideal: equip flexibility, match product req (product variety, quantity (vol)) - failure to match product req and production process characteristics can result in inefficiencies and higher costs → competitive disadv - freq product switches = long change over times = non-productive - life cycle - begins w/ low quantity which increases → manger shift f/ one type of production process (job shop → batch) to next - focused factory - processes that produce high quantity of products specialize in these products - high quantity and high variety on same process = McDonalds - w/in process → indiv operations - chose of operation depend on → nature, size, shape, quantity, variety, competitive attributes LO 2: Automation using machinery/equip w/ sensing and control devices that enable it to operate automatically range f/ factories completely automated to single automated operation adv over human labour - low variability, rapidly, repetitive necessary for competitiveness disadv/limitations compared to human labour - tech exp - high vol of output offset high initial cost - less flexible - once automated hard to change it - may lose job - adverse effect on morale and productivity Fixed automation - most rigid - auto industry - high cost, specialized equip for fixed sequence operations - Adv: low unit cost and high vol - disadv: min variety, high cost of m/ major changes Programmable automation - high cost, general purpose equip controlled by computer program - changing process is easy - ecn producing a fairly wide variety of low vol products in small batches - numerically controlled (N/C) machines - machines that perform operations by following mathematical processing instructions o follow a sequence o computerized numerical control (CNC) - machine have own computer o direct numerical control (DNC) - computer control N/C machines o used in cases where pares are processed freq and in small batches o mistakes are costly o higher skill level needed - robot - machine consisting of mechanical arm, a power supply, and controller o handle wide variety of tasks (welding, assembly) o relieve human f/ heavy, dirty, unsafe work and often elim drudgery Flexible automation - uses equip that more customized than that of programmable automation - req sig less changeover time - contin operation of equip and product variety w/out need to produce in batches - machining centre - numerically controlled - flexible manufacturing system (FMS) - group of machining centre controlled by computer w/ automatic material handling and robots or other automated equip o produce similar products o handle intermittent processing req w/ benefits of automation and flexibility of indiv o reduced labour costs and consistent quality o lower capital investment and higher flexibility o appeals to flexibility of job shop and productivity of repetitive process o limitations: narrow range of variety; req longer planning and development, increased cost - computer-integrated manufacturing (CIM) - system for linking a broad range of manu and other activities through an integrated computer system o goal: link various part of org to achieve rapid response to customer orders/product changes to allow rapid production and reduce indir labour cost LO 3: Process Design form and function of how production of goods/services occur identify sequence, resources and controls directly needed in production of goods for new product → automating one part/ replacing machine w/ newer one Methodology for production process design - given product quantity, variety, cost, quality, delivery speed (lead time), and product specs (nature, shape, size, components) 1. define production process o how completed input material should be → make or buy d/ o production process obj  capacity/speed, flexibility  type of process (job shop, batch, assembly, contin)  cost (fixed, variable), process quality capability  tech/extent of automation, production start date o nature of process 2. production process development 2.1: Conceptualize design o dev alt process concepts  incremental - one step at time f/ start to end  hierarchical - break into 2 operations → divide into sub-sections o process flow diagram - show operations and movement of materials through operations  input and output 2.2: Make embodiment of design o choose one process concept and complete design
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