O.M.-manufacturing and Process Selection Design
-
Upload
rohan-chopde -
Category
Documents
-
view
216 -
download
0
Transcript of O.M.-manufacturing and Process Selection Design
-
8/9/2019 O.M.-manufacturing and Process Selection Design
1/9
Manufacturing and Process
Selection Design
-
8/9/2019 O.M.-manufacturing and Process Selection Design
2/9
Learning Objectives
Process Selection Types of processes
Process Flow Structure
Product process matrix
-
8/9/2019 O.M.-manufacturing and Process Selection Design
3/9
Process Selection
It refers to the strategic decision of selecting which
kind of production processes to have in the
manufacturing plant.
E.g.
For Low volume of production
- we may have a worker manually assemble each
item by hand.For High volume of production
- setting up an assembly line may be appropriate.
-
8/9/2019 O.M.-manufacturing and Process Selection Design
4/9
Types of Processes
(Based on what they do) Conversion (ex. Iron ore into steel)
Fabrication (ex. Forming gold into a crown for a
tooth or making sheet metal into car fender)
Assembly (ex. Parts to components or assembling afender to a car, putting toothpaste tubes into a box)
Testing (ex. For quality ofproducts)
-
8/9/2019 O.M.-manufacturing and Process Selection Design
5/9
Process Flow Structures
- Hayes and Wheelwright It refers to how a factory organizes material flow using one or
more of the process technologies listed above.
Following are the four major process flow structures:
Job shop(ex. Copy center making a single copy of a studentterm paper, machine tool shops, commercial printing firms)
Batch shop(ex. Copy center making 10,000 copies of an adpiece for a business, heavy equipment, electronic device)
Assembly Line (ex. Automobile manufacturer)
Continuous Flow (ex. Thermal power plant)
-
8/9/2019 O.M.-manufacturing and Process Selection Design
6/9
Product-Process Matrix
Process
structure
Process life
cycle stage
I
Low volume-low
standardization,
often one of a
kind
II
Multiple
products, low
volume
III
Few major
products,
higher volume
IV
High volume-high
standardization,
commodity
I
Job
Shop
II
Batch
III
Assemblyline
IV
Continuous
Effectiveness
measures:
Flexibility (high)
Unit cost (high)
Flexibility (low)
Unit cost (low)None (not
feasible)
Commercial printer
Restaurant
Heavy equipment
Coffee shop
Automobile assembly
Burger King
Sugar
refinery
-
8/9/2019 O.M.-manufacturing and Process Selection Design
7/9
Break-Even Analysis
A standard approach to choosing among alternative
processes or equipment
Model seeks to determine the point in unitsproduced (and sold) where we will start making
profit on the process or equipment
Model seeks to determine the point in units
produced (and sold) where total revenue and total
cost are equal
-
8/9/2019 O.M.-manufacturing and Process Selection Design
8/9
Break-Even Analysis (Continued)
Break-even Demand=
Purchase cost of process or equipment
Price per unit - Cost per unit
orTotal fixed costs of process or equipment
Unit price to customer - Variable costs per unit
This formula can be used to find any of its componentsalgebraically if the other parameters are known
-
8/9/2019 O.M.-manufacturing and Process Selection Design
9/9
Break-Even Analysis (Continued)
Example: Suppose you want to purchase a new computer
that will cost s.50,000. It will be used to process written
orders from customers who will pay s.250 each for the
service. The cost of labor, electricity and the form used to
place the order is s.50 per customer. How many customerswill we need to serve to permit the total revenue to break-
even with our costs?
Break-even Demand:
= Total fixed costs of process or equip.
Unit price to customer Variable costs
=50,000/(250-50)
=250 customers