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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
FUNCTION DESIGN PRODUCT DESIGN
DRAWING & SPECIFICATION OF WHAT TO MAKE
PRODUCT ANALYSIS & SSEMBLY CHARTS MAKE (OR) BUY DECISION PROCESS DECISION, SELECTION FROM ALTERNATIVE PROCESS
ROOT / SPECIFICATION SHEET
WORK PLACE & TOOL DESIGN
MODIFICATION OF PROCESS PLANSDUE TO LAYOUT, 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.
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.
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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.
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 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
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Process Flow Chart
Material Received from supplier
Inspect materials for defects
Return to Supplier for credit
Break even chart or cross over chart
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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
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
Inspection Transport Storage Delay or Temporary storage
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
1 2 3 4 Blade Hub Generator Rotor 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:
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 multidisciplinary team, selecting the part, assembly or family of parts for analysis and briefing the team.
•Stage 2 is concerned with data collection.
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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.
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