Chapter

Manufacturing Process Selection and Design

 Process Selection
• Once the final design has been specified, we
must choose how the product will be
manufactured, i.e. by which production
process.
• The transformations which a product
undergoes determine the production process
type.
• A process is a series of independent tasks
that transforms an input into output material
of higher value for the organization.
 Process Selection

 All processes can be grouped in two main categories

• Intermittent processes:
– Processes used to produce a variety of products with different
processing requirements in lower volumes. (such as healthcare
facility)
• Repetitive processes:
– Processes used to produce one or a few standardized products
in high volume. (such as a cafeteria, or car wash)
 Process selection cont…

Differences between Intermittent and repetitive Continuous

Operations
Process selection cont…

• Types of processes based on product volume and

product standardization
 Process selection cont…

• Process types can be:

Project process – make a one-at-a-time product
exactly to customer specifications
Batch process – small quantities of product in groups
or batches based on customer orders or
specifications
Line process – large quantities of a standard product
Continuous process – very high volumes of a fully
standard product
Intermittent VS. Repetitive Facility Layouts
 Process Selection Considerations

• Process selection is based on five considerations

1. Type of process; range from intermittent to
repetitive or continuous

2. Degree of vertical integration

3. Flexibility of resources

4. Mix between capital & human resources

5. Degree of customer contact

 Process selection cont…

 Vertical Integration:

 It refers to the segments in the chain from acquisition of raw

materials to final delivery of finished products that the company
owns.
 Some companies are highly vertically integrated, and own their
own raw material facilities, manufacturing plants, and fleets of
trucks for delivery to customers.
 Other companies choose the opposite strategy, and use outside
suppliers of materials and subassemblies and distributors of
their products.
 Process selection cont…

Backward integration

 where a company owns or acquires sources of supply, raw materials, or subassemblies.

Forward integration

 where a company owns facilities closer to the customer, such as distribution channels,
warehouses, and retail locations.

• Both have the advantage of control over the quality, consistency, and delivery of raw
materials and finished products.

• A disadvantage, however, can be cost.

• Often it can be much cheaper to use outside suppliers and third parties to perform
certain tasks, like distribution and delivery, because these outside companies already
have the resources, equipment, and “know-how”needed to perform these tasks.
 Process Decisions-Vertical Integration & Make or Buy

 A firm’s Make-or-Buy choices should be based on the following considerations:

Strategic impact
 Available capacity
 Expertise
 Quality considerations
 Speed
 Cost (fixed cost + variable cost)make = Cost (fixed cost + Variable
cost)buy
 Process Design
• Product planning serves as an input to process design

• If the process is service-oriented, these needs will

be reflected in the proposed quality, speed, cost,
and reliability of the service.
• If, the process will be manufacturing oriented, then
these needs will be reflected in the product’s
proposed quality, cost, function, reliability and
appearance.
Linking Product Design & Process Selection

• Product design and process selection are directly linked.

• Type of product selected defines type of operation

required.
• Type of operation available defines broader
organizational aspects such as
 Equipment required
 Facility arrangement

 Organizational structure
 Linking Product Design & Process Selection

Impact of Product Life Cycle:

Intermittent and repetitive

operations typically focus on

producing products in different

stages of the product life cycle.

Intermittent is best for early in

product life; repetitive is better

for later when demand is more

predicable.
 Linking Product Design & Process Selection

Impact of Competitive Priorities:

Intermittent operations are typically less competitive on

cost than repetitive operations. (why?)
Linking Product Design & Process Selection
Process Design cont…

• Process planning
 Is a systematic determination of method or
person by which the product is to be
manufactured economically and competitively
within the limits of design specification laid
down.
 It consists of devising, selecting and specifying
processes, machine tools and other equipment to
convert raw material into finished product.
Process Design cont…

• Pre-requisites of process planning

 Working drawings of non standard components of the product
along with the manufacturing specifications for the finished
parts
 Assembly drawing showing the position of assemblies and sub-
assemblies
 Part list of all components of the product differentiating
standard and non standard parts
 Annual output of the product

 Number of components for each unit

 Accuracy and surface finish as provided in the specifications of

the finished product
Process Design cont…

• Steps in process planning

I. Analysis of the product print and specifications

II. Improvement of the specifications
III.Make or buy decision
IV. Selection of basic manufacturing process
V. Determine the sequence of operations
VI. Combine the operation
VII.Prepare the list of raw materials
Process Design cont…

 Selection of machine tools or equipment

 Size and shape of the work piece
 The work material
 The accuracy and surface finish required
 Quantity required
 Inspection
 Requirements of tools, labor
 Time standards
 Cost of production
 Prepare the operation sheet and the route
sheet
Process Design cont…

• Process design : is composed of two aspects:

• The choice of work station and the choice of work flow

 Work station selection involves the choice of

machines to be included in the process,
 Work flow analysis concerns the flow of work
between these stations.
 It is here that the decision is made as to
whether the process will be continuous,
intermittent, or some combination of both.
Process Design cont…

• Process Design Tools

 Process flow analysis is a technique used for evaluating
a process in terms of the sequence of steps from
inputs to outputs with the goal of improving its design.
 A process flowchart is used for viewing the sequence
of steps involved in producing the product, and The
flow of the product through the process. It is useful
for seeing the totality of the operation and for
identifying potential problem areas.
Process Design cont…

• Process Flow Charts

Graphical description of a process:

 Storage:
Raw Materials, RM
Work in Process, WIP
Finished Goods Inventory, FGI

 Flow of material or work

 Processing step

 Decision point
Process Design cont…
• Bottleneck:-Longest task in the process.

• Buffer:- is a station for placement of either partially

completed (work-in-process) or fully completed (finished
goods) inventory,

Decisions Strategies
• Make-to-stock strategy:-Produces standard products and
services for immediate sale or delivery.
• Make-to-order strategy:- Produces products to customer
specifications after an order has been received.
• Assemble-to-order strategy:- Produces standard components
that can be combined to customer specifications.
Process Design cont…
Process Design cont…

• Process flow chart…

 Throughput time

• A basic process performance metric is throughput

time. A lower throughput time means that more
products can move through the system.
• One goal of process improvement is to reduce
throughput time.
 Process Design cont…

• Computing Cycle Times

Processing a fixed amount of work

Example: Producing 100 cars. On average,

production takes 5 hours per car. It takes 50 hours
to set up the production line.

Cycle
(Batch
Time = [Set-up Time + ((Batch size) x (Time per unit))]/
size)
Process Design cont…
Process Design cont…

• What is a bottleneck?
Bottleneck is the
process stage with the
smallest throughput rate
(longest cycle time)

Which task is the

bottleneck?

3 units/hr 5 units/hr 2 units/hr

Process Design cont…

• How do we measure throughput time?

Throughput Time: Average time that a unit
takes to go through the entire process
(including waiting time).
It is Measured as time.
Work in Process(WIP): Average number of
units in system over a time interval.
It is Measured as units.
Process Design cont…

• How do we analyze a complex process…

1. Look at the process step by step
2. Determine throughput rate (i.e. capacity) of
each step
3. Identify the process bottleneck (smallest
processing rate, or largest cycle time).
4. The capacity of the process is equal to the
capacity of the bottleneck
Process Design cont…

• Example : hammer production process

Description
1. Work begins at the machining center. Here two
lines form the heads of the hammers and place
them in a buffer.
2. Handles are attached at the assembly step.
3. Finished hammers are sent to the next stage,
where they are packed and shipped.

machining WIP WIP

pack and
assembly
ship
Process Design cont…

• Let’s analyze the hammer process…

machining WIP WIP
pack and
assembly
ship

Process Data:
 Machining: Set up 80 min. 4 min per unit processing. Batch
size 200. Identical lines.
 Assembly: Manual by two workers (no set up). Each hammer
requires 40 min processing. 34 workers available.
 Pack and Ship: 30 min set up, 2 min per unit processing. Lot
sizes of 100.
Process Design cont…

• Step 1: Machining
Look at one line. 200 units require:

 80 + 200  4 = 880 minutes/200 units

 The throughput rate is:

 200 / 880 = 0.227 units/minute

= 13.63 units/hour

 But we have two identical lines, so for the

machining step capacity is 2  13.63 = 27.26
units/hour.
Process Design cont…

• Step 2: Assembly

• 1 unit requires 40 min processing time, so the

throughput rate is:

1 unit / 40 min = 0.025 units/min

0.025*60= 1.5 units/hr

• 34 workers available, but 2 workers are required

for each unit, so assembly capacity is:

17  1.5 = 25.5 units/hr

Process Design cont…

• Step 3: Pack and ship

Similar to machining:

30 + 100  2 = 230 min/100 units

Pack & ship capacity is:

100 / 230 = 0.43 units/min

= 26.09 units /hr

Process Design cont…
END OF CHAPTER -5

QUESTIONS!