Professional Documents
Culture Documents
Presented by:
Prof.Dr.P.T. SRINIVASAN
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Process planning
Begins with
Product Selection
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Product Selection
• is a strategic decision i.e. long term decisions
• decisions like technology to be used, capacity
of the production system, location of the
facility, organization of the production
function, planning, and control systems depend
on this
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Product Selection
involves
other functional areas like
marketing, research and development,
and the top management
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Product Selection
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Product Selection
Organizations try to get synergistic results
by exploiting the following factors:
1. Familiarity with similar products / services
2. Familiarity with the same or similar
production process
3. Familiarity with the same or similar market
segments
4. Familiarity with the same or similar
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distribution channels
Product Development
Development effort improves the performance of
the product, adds options and additional features
Also adds variants to the basic product
Development starts after research has established
an idea that has been examined, evaluated and
refined
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Product Design
includesdimensional specifications,
specifications regarding capacity, horse power,
speed, colour etc.
PM / L 1 / S 8
Product Variety
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Standardization
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Advantages of Standardization
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Advantages of Standardization
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Modularization
Used to obtain variety and yet hold down the
cost
Modules are interchangeable and each different
combination gives a new variety of the product
Design simplification without compromise on
quality can reduce production costs
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Key Elements in Product Design
Function
Cost
Quality
Reliability
Appearance
Environmental impact
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FromProduct Design Stage let us now
move on to Process Planning
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Process – Meaning
Processes
are the essence of operations
management.
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Process Planning - Definition
Planning in which the conditions necessary for
transforming material from one state to another are
determined.
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Underlying Process Relationship Between
Volume and Standardization Continuum
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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
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DECISION ON WHAT TO MAKE
DEMAND
FORECAST
FUNCTIONAL DESIGN
PRODUCT
PRODUCTION DESIGN
DESIGN
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MANUFACTURE MODIFICATION OF PROCESS PLANSDUE TO LAYOUT,
PLANING QUALITY PERFORMANCE AND M/C AVAILABILITY
Process Planning
Make-or-buy decisions
Process selection
Capacity Planning
Assembly Chart
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Make-Or-Buy Decisions
A firm’s Make-or-Buy choices should be
based on the following considerations:
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Make-Or-Buy Decisions
• 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
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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.
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Contd….
Stage 3
Stage 4 28
110000
80,000 Fixed cost –
Fixed cost –
75,000 Fixed cost – Process C 29
Process B
V1(5000) V2 (15,000) Process A
Volume
Break Even Analysis
For a company to produce a new product, the initial
investment in plant & equipment is estd. to be
Rs.2000. Labour & material cost is approx. Rs.5
per unit. If the rafts can be sold at Rs.10 per unit,
what volume of demand would be necessary to
break-even?
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Capacity Planning
• Capacity planning is the process of determining the
production capacity needed by an organization to meet
the demands for its products.
• A discrepancy between the capacity of an organization
and the demands of its customers results in unfulfilled
customers.
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Process Analysis
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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.
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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
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Parts of a Wind Mill Turbine
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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 39
Assembly Drawing-Blueprint
Shows exploded view of product
Head Neck
End
Cap
Handle
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Assembly Chart
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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.
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Process Re-engineering
Process Re-engineering is a structured
approach to process flow analysis used when
major business changes are required as a
result of:
Major new products
Quality improvement needed
Better competitors
Inadequate performance
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Thank You
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