PROCESS AND PRODUCTION

BY GROUP 5:
ABHIJIT P
CHANDINI M
LINTU TONY
CHERIAN MARIAMMA
POOJA M
KAUSTAV SEN
RICHA SINGH
 Process - Meaning
An operation is composed of
processes designed to add value by transforming
inputs into useful outputs. Inputs may be materials,
labor, energy, and capital equipment. Outputs may be
a physical product (possibly used as an input to
another process) or a service. Processes can have a
significant impact on the performance of a business,
and process improvement can improve a firm's
competitiveness.
The first step to improving a process is to analyze it in order to
understand the activities, their relationships, and the values of
relevant metrics. Process analysis generally involves the
following tasks:
• Define the process boundaries that mark the entry points of the
process inputs and the exit points of the process outputs.
• Construct a process flow diagram that illustrates the various
process activities and their interrelationships.
• Determine the capacity of each step in the process. Calculate
other measures of interest.
• Identify the bottleneck, that is, the step having the lowest
capacity.
• Evaluate further limitations in order to quantify the impact of
the bottleneck.
• Use the analysis to make operating decisions and to improve
the process.
 Process Performance Measures
Some of the process performance measures that are interested in
process aspects such as cost, quality, flexibility, and speed
include:
• Process capacity - The capacity of the process is its maximum
output rate, measured in units produced per unit of time
• Capacity utilization - the percentage of the process capacity
that actually is being used.
• Throughput rate (also known as flow rate ) - the average rate
at which units flow past a specific point in the process.
• Flow time (also known as throughput time or lead time) - the
average time that a unit requires to flow through the process
from the entry point to the exit point.
• Cycle time - the time between successive units as they are
output from the process.
• Process time - the average time that a unit is worked on.
Process time is flow time less idle time.
• Idle time - time when no activity is being performed. The term
can be used to describe both machine idle time and worker
idle time.
• Work In process - the amount of inventory in the process.
• Set-up time - the time required to prepare the equipment to
perform an activity on a batch of units.
• Direct labor content - the amount of labor (in units of time)
actually contained in the product.
• Direct labor utilization - the fraction of labor capacity that
actually is utilized as direct labor.
 Capacity planning

-the task of determining the

long
and short run capacity needs of an
organization and then determining how these
will be satisfied.
• Determination of plant capacity
• Capacity planning strategies
• Equipment selection
 Determination of plant capacity
• Production system design is the first level planning for the inputs,
conversion activities and outputs of a production operation.
• Design decisions are very important because they are associated with
investment of funds.
Design capacity of a system is the rate of output of goods or
services under full operating conditions. Preliminary estimate of
capacity is done based on long range forecast extending 5 to 10 years
into the future.
System capacity is the maximum output of a specific product
or product mix that a system of workers and equipment is capable of
producing as an integrated whole.
It may be less than the design capacity due to mismatch btw
required and available resources. The actual output may even be less
than the system capacity due to factors like actual demand equipment
breakdown and personal absenteeism .
 Capacity Planning Strategies
Long term capacity strategies:
The strategies followed by the top mgmt to cope
up with the major changes in products and services that it can
provide to customers in long run. They have a significant impact
on the capacity.
• Develop new product lines
• Expand existing facilities
• Construct or phase out production plants
Short term capacity strategies:
The purpose of short term capacity planning is to
respond to variations in demand during the short term planning
horizon. Strategies like overtime, subcontracting, hiring, firing,
etc.
 Equipment Selection
The process of identifying a set of suitable equipments
which are most suitable for processing a set of products.
• mass production- establish a product line for a single product
having similar requirements
• batch production-machines are selected by taking the
availability of machines and processing requirements of
products.
cost has to be considered so the alternatives are listed and
the best option is chosen.
capacity limitations are often stated in terms of equipments
efficiencies or amount of scrap loss.
 Plant Location Decisions
Location Options
• expand an existing facility
• add new locations while retaining existing ones
• shut down at one location and move to another
• the option of doing nothing

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 General Procedure for Making Location
Decisions
1. Decide on the criteria to use for evaluating location
alternatives, such as increased revenues or community
service.
2. Identify important factors, such as location of markets or
raw materials.
3. Develop location alternatives:
• Identify the general region for a location.
• Identify a small number of community alternatives.
• Identify site alternatives among the community
alternatives.
4. Evaluate the alternatives and make a selection.
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 Location Decision Factors
Community
Regional Factors Considerations

Multiple Plant Site-related

Strategies Factors

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 Factors that Affect Location Decisions
Regional Factors
• Location of Raw Materials (necessity, perishability, and
transportation costs)
• Location of Markets (locate near the markets, distribution
costs, the perishability of a finished product, GIS)
• Labor Factors (cost and availability
• of labor, wage rates in an area, labor
• productivity and attitudes
• toward work, and unions)
• Climate and Taxes

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Community Considerations
• Eg: airport expansion, changes in zoning,
construction of nuclear facilities, and highway
construction
• desirability of a community as a place for its
workers and managers to live
• cost and availability of utilities, environmental
regulations, taxes

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 Site-Related Factors
• Heavy manufacturing, the erection of large
buildings, facilities with special requirements, soil
conditions, load factors, and drainage rates
• Land costs, room for future expansion, current
utility and sewer capacities and sufficient parking
space for employees and customers
• Industrial parks

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 Multiple Plant Strategies
• Product plant strategy
• Market area plant strategy
• Process plant strategy

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 Machine Objectives of Facility
Layout
•Minimize material handling cost
• Utilize space and labor efficiently
• Eliminate bottlenecks
• Facilitate communication and interaction
• Reduce manufacturing cycle time
• Reduce customer service time
• Eliminate wasted or redundant movement
• Increase capacity
• Facilitate entry, exit, and placement of material, products,
and people
• Incorporate safety and security measures
• Promote product and service quality
• Provide flexibility to adapt to changing conditions
 Basic Layouts
• Process layouts
group similar activities together according to process
or function they perform

• Product layouts
arrange activities in line according to sequence of
operations for a particular product or service

• Fixed-position layouts
are used for projects in which product cannot be
moved
Process Layout in Services
Women’s Shoes Sports Wear
Garments

Men’s Jewellery Housewares

Garments
Cards and Gifts Electronics Children’s
Section Department
 Manufacturing Process Layout
Milling
Lathe Department Department Drilling Department
M M D D D D
L L

M M D D D D
L L

G G G P
L L

G G G P
L L
Grinding Painting Department
Department
L L
Receiving and A A A
Shipping Assembly
 A Product Layout

In

Out
Comparison of Product and Process Layouts

PRODUCT LAYOUT PROCESS LAYOUT

1. Description Sequential arrangement Functional grouping

of machines of machines
2. Type of Process mass production mainly Intermittent, job shop
assembly batch production,
mainly fabrication
3. Product Standardized Varied
made to stock made to order
4. Demand Stable Fluctuating
5. Volume High Low
6. Equipment Special purpose General purpose
7. Workers Limited skills Varied skills
 Fixed-Position Layouts
• Typical of projects in which product produced is too
fragile, bulky, or heavy to move
• Equipment, workers, materials, other resources brought
to the site
• Low equipment utilization
• Highly skilled labor
• Typically low fixed cost
• Often high variable costs
 Designing Process Layouts
• Goal: minimize material handling costs
• Block Diagramming
• minimize nonadjacent loads
• use when quantitative data is available
• Relationship Diagramming
• based on location preference between areas
• use when quantitative data is not available
 Designing Product Layouts
• Objective
Balance the assembly line
• Line balancing
tries to equalize the amount of work at each
workstation
•Precedence requirements
physical restrictions on the order in which operations
are performed
• Cycle time
maximum amount of time a product is allowed to
spend at each workstation
 Designing Service Layouts
• Objectives
 Minimize flow of customers or paperwork
 Retailing tries to maximize customer exposure to products
 Computer programs consider shelf space, demand, profitability
 Layouts must be aesthetically pleasing
• Types
 Free flow layouts
• encourage browsing, increase impulse purchasing, are flexible and
visually appealing
 Grid layouts
• encourage customer familiarity, are low cost, easy to clean and
secure, and good for repeat customers
 Loop and Spine layouts
• both increase customer sightlines and exposure to products, while
encouraging customer to circulate through the entire store
 Hybrid Layouts
Cellular layouts
group dissimilar machines into work centers (called
cells) that process families of parts with similar
shapes or processing requirements

Flexible manufacturing system

automated machining and material handling systems
which can produce an enormous variety of items

Mixed-model assembly line

processes more than one product model in one line
 Advantages and Disadvantages of
Cellular Layouts
Advantages Disadvantages
Reduced material Inadequate part families
Handling and transit Poorly balanced cells
time
Reduced setup time Expanded training
Better use of human Increased capital
resources investment
Easier to control
Easier to automate
 Types Of Production
There are 4 types of production:

1.Job Production
2.Batch Production
3.Flow Production, and
4.Project Production.
 Job Production
• Job Production sometimes called jobbing.
• It involves producing a one-off product for a specific
customer.
• It involve an individual or a group or worker handles the
task.
•  It most often associated with small firms (making
railings for a specific house, building/repairing a
computer for a specific customer, making flower
arrangements for a specific wedding etc.) but large firms
use job production too.
• Eg: hairdressers, tailoring, painting and decorating,
plumbing and heating repairs in the home.
 Batch Production
• Batch Production is a way of creating items in bulk.
• In the batch production, the work is divided into parts
called batches which happens in the large
organizations.
• It is the manufacturing technique of creating a
component at a workstation before moving to the next
step in production.
 Flow Production
Flow production involves a
continuous movement of items through the
production process. This means that when one task is
finished the next task must start immediately.
Therefore, the time taken on each task must be the
same.
Project Production
Project Production is defining a
production as a project for one time only.
Thank you!!!