Process Planning

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 Process Planning

• Process planning is a key element in project management that

focuses on selecting resources for use in the execution and
completion of a project

• In a manufacturing setting, this aspect of planning also includes

establishing the general sequence of steps that begin with the
acquisition of materials and end with the creation of a finished
product.
 DECISION ON WHAT TO MAKE
DEMAND FORECAST

FUNCTION DESIGN

PRODUCT
PRODUCTION DESIGN
DESIGN

DRAWING & SPECIFICATION

OF WHAT TO MAKE

PRODUCT ANALYSIS & SSEMBLY CHARTS

MAKE (OR) BUY DECISION

PROCESS
DESIGN
PROCESS DECISION, SELECTION FROM
ALTERNATIVE PROCESS

ROOT / SPECIFICATION SHEET WORK PLACE &

TOOL DESIGN

MANUFACTURE MODIFICATION OF PROCESS PLANSDUE TO LAYOUT,

PLANING QUALITY PERFORMANCE BY M/C AVAILABLE
 Procedure in process planning
• Materials: The selection of materials for the product. Production manager
must have soundKnowledge of materials and their properties, so that he can
select appropriate materials for his product.

• Methods: Finding the best method for the process, to search for the
methods to suit the available resources, identifying the sequence of process
are some of the activities of ProductionManagement.

• Machines and Equipment: Selection of suitable machinery for the process

desired.

• Estimating: To fix up the Production targets and delivery dates and to keep
the production costs at minimum, production management department does
a thorough estimation of Production times and production costs

• Loading and Scheduling: When to start and when to finish the process. It
also has to draw the timings of materials movement and plan the activities of
manpower.
 Procedure in process planning contnd..

• Routing: The Routing consists of fixing the flow lines for various raw materials,
components etc., from the stores to the packing of finished product

• Dispatching: The Production Management department has to prepare various

documents such as Job Cards, Route sheets, Move Cards, Inspection Cards
for each and every component of the product. Activity of releasing the
document is known as dispatching.

• Expediting or Follow up: Once the documents are dispatched, the

management wants to know whether the activities are being carried out as per
the plans or not.

• Inspection: Here inspection is generally concerned with the inspection

activities during production, but a separate quality control department does the
quality inspection, which is not under the control of Production Management

• Evaluation: The Production department must evaluate itself and its

contribution in fulfilling the corporate objectives and the departmental
objectives. This is necessary for setting up the standards for future.
Production Function
Production Cycle
 Capacity Process Planning
• Capacity planning is the process of determining the production
capacity needed by an organization to meet changing demands for its
products.
• A discrepancy between the capacity of an organization and the
demands of its customers results in inefficiency, either in under-utilized
resources or unfulfilled customers.
• The goal of capacity planning is to minimize this discrepancy
• Better utilization of existing capacity can be accomplished through
improvements in overall equipment effectiveness (OEE)
• Capacity can be increased through introducing new techniques,
equipment and materials, increasing the number of workers or
machines, increasing the number of shifts, or acquiring additional
production facilities.
 CPP contnd…
• Capacity is calculated by :
(number of machines or workers) × (number of shifts) × (utilization) × (efficiency).

• The broad classes of capacity planning are lead strategy, lag strategy, and
match strategy.

• Lead strategy is adding capacity in anticipation of an increase in demand.

Lead strategy is an aggressive strategy with the goal of luring customers away
from the company's competitors. The possible disadvantage to this strategy is
that it often results in excess inventory, which is costly and often wasteful.

• Lag strategy refers to adding capacity only after the organization is running at
full capacity or beyond due to increase in demand (North Carolina State
University, 2006). This is a more conservative strategy. It decreases the risk of
waste, but it may result in the loss of possible customers.

• Match strategy is adding capacity in small amounts in response to changing

demand in the market. This is a more moderate strategy.

• Capacity planning is long-term decision that establishes a firms' overall level of

resources
 Flow chart
• Flow charts are easy-to-understand diagrams showing how steps in a
process fit together. This makes them useful tools for communicating
how processes work, and for clearly documenting how a particular job is
done. Furthermore, the act of mapping a process out in flow chart format
helps you clarify your understanding of the process, and helps you think
about where the process can be improved.

• A flow chart can therefore be used to:

• Define and analyze processes

• Build a step-by-step picture of the process for analysis, discussion, or

communication and
• Define, standardize or find areas for improvement in a process
Process Flow Chart
NO,
Material
Received
Continue
from
Inspect Defects
supplier
materials for Found?
defects

YES

Return to
Supplier for
credit
 Break even chart or cross over chart

• Break-even analysis is a technique widely used by production management

and management accountants
• A breakeven chart is a strategic tool used to plot the financial revenue of a
business unit against time or sales to determine the point when sales output is
equal to revenue generated. This is recognised as the breakeven point.
• The information used to determine and analyse the breakeven point includes
fixed, variable and total costs and the associated sales revenues
• The point at which neither profit nor loss is made is known as the "break-even
point"
• The analysis of a breakeven chart considers whether a venture runs at a profit
or a loss
• The principle of break-even theory is that during the early stages of a
business venture, total costs, both fixed and variable, exceed sales.
As output increases, sales begin to rise faster than costs and,
eventually, they become equal (breakeven point). If sales continue to
rise and exceed total costs, the business achieves profitability.
• Breakeven charts are universally applied to simply and graphically illustrate
and forecast a company's projected revenue, and to calculate the time for
profitability to be reached
Break-Even Chart
Operation process chart
• Operation Process chart represents the sequence of steps or
tasks needed to complete a product and details how to build a
product at each process. It includes what materials are needed,
type of processes, product flow, time taken to process product
through each step of flow and thus serves as a basis for
examining and possibly improving the way the operation is
carried out.
Symbols in operation chart

Operation

Inspection

Transport

Storage

Delay or
Temporary
storage
Assembly chart
• Assembly chart gives a macro
view of how materials and sub
assembly are united to form a
finished product. It is a starting
point to understand the factory
layout needs, equipments
needs, training needs for any
company to deliver a finished
product / service
Parts of a wind mill turbine
Example of an Assembly chart
Blade
1
Hub
2 Tower
SA-1 A-2
Generator
3
Rotor
4
A-5
Component/Assembly Operation

Inspection
A Windmill Turbine
Make or Buy Decision
• Determination whether to produce a
component part internally or to buy it
from an outside supplier. This decision
involves both qualitative and
quantitative factors. Qualitative
considerations include product quality
and the necessity for long-run
business relationships with
subcontractors. Quantitative factors
deal with cost. The quantitative effects
of the make-or-buy decision are best
seen through the Relevant Cost
Approach

• For example, assume a firm has

prepared the following cost estimates
for the manufacture of a subassembly
component based on an annual
production of 8000 units:
 Contnd…
• The supplier has offered the subassembly
at a price of $16 each. Two-thirds of fixed
factory overhead, which represents
executive salaries, rent, depreciation, and
taxes, continue regardless of the decision.
Should the company buy or make the
product? The key to the decision lies in the
investigation of those relevant costs that
change between the make or buy
alternatives. Assuming that the
productive capacity will be idle if
not used to produce the
subassembly, we can make the
following analysis

• he make-or-buy decision must be

investigated in the broader
perspective of available facilities.
The alternatives are: (1) leaving
facilities idle; (2) buying the parts
and renting out idle facilities; or (3)
buying the parts and using unused
facilities for other products.
 Make or buy process

•Stage 1 refers to the

preparations phase, which
entails creating a multi-
disciplinary team, selecting
the part, assembly or family of
parts for analysis and briefing
the team.

•Stage 2 is concerned with

data collection.
contnd
Stage 3
• consists of data analysis using a spreadsheet which provides
the following:
• Final scores for in-house and for the supplier. The highest score
indicates the best option.
• Weighted gaps for each factor area, highlighting the strengths
and weaknesses of this option.
• A sensitivity analysis which tests the robustness of the final
outcome.

Stage 4

• consists of feeding back the results to the team.

Thank uuu…..