Process Plannning

8/14/2019 Process Plannning

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Process Planning

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Process Planning

Process planning is a key element in project management thatfocuses on selecting resources for use in the execution andcompletion of a project

In a manufacturing setting, this aspect of planning also includesestablishing the general sequence of steps that begin with theacquisition of materials and end with the creation of a finishedproduct.


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FUNCTION DESIGN

PRODUCTION 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

PRODUCT

DESIGN

PROCESS

DESIGN

MANUFACTURE

PLANING

DECISION ON WHAT TO MAKEDEMAND FORECAST


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Procedure in process planning

Materials: The selection of materials for the product. Production managermust have soundKnowledge of materials and their properties, so that he canselect appropriate materials for his product.

Methods: Finding the best method for the process, to search for themethods 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 processdesired.

Estimating: To fix up the Production targets and delivery dates and to keep

the production costs at minimum, production management department doesa thorough estimation of Production times and production costs

Loading and Scheduling: Whento start and when to finish the process. Italso has to draw the timings of materials movement and plan the activities ofmanpower.


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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 variousdocuments such as Job Cards, Route sheets, Move Cards, Inspection Cardsfor 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, themanagement wants to know whether the activities are being carried out as perthe plans or not.

Inspection: Here inspection is generally concerned with the inspectionactivities during production, but a separate quality control department does thequality inspection, which is not under the control of Production Management

Evaluation: The Production department must evaluate itself and itscontribution in fulfilling the corporate objectives and the departmentalobjectives. This is necessary for setting up the standards for future.


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Production Function


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Production Cycle


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Capacity Process Planning

Capacity planning is the process of determining the productioncapacity 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-utilizedresources 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 ormachines, increasing the number of shifts, or acquiring additional

production facilities.


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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, andmatch 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 awayfrom the company's competitors. The possible disadvantage to this strategy isthat 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 StateUniversity, 2006). This is a more conservative strategy. It decreases the risk ofwaste, but it may result in the loss of possible customers.

Match strategy is adding capacity in small amounts in response to changingdemand in the market. This is a more moderate strategy.

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


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Flow chart

Flow charts are easy-to-understand diagrams showing how steps in aprocess fit together. This makes them useful tools for communicatinghow processes work, and for clearly documenting how a particular job isdone. Furthermore, the act of mapping a process out in flow chart formathelps 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, orcommunication and

Define, standardize or find areas for improvement in a process


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Process Flow Chart

Material

Received

from

supplierInspect

materials fordefects

DefectsFound?

Return toSupplier for

credit

YES

NO,

Continue


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Break even chart or cross over chart

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

A breakeven chart is a strategic tool used to plot the financial revenue of abusiness unit against time or sales to determine the point when sales output isequal to revenue generated. This is recognised as the breakeven point.

The information used to determine and analyse the breakeven point includesfixed, variable and total costs and the associated sales revenues

The point at which neither profit nor loss is made is known as the "break-evenpoint"

The analysis of a breakeven chart considers whether a venture runs at a profitor 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 torise and exceed total costs, the business achieves profitability.

Breakeven charts are universally applied to simply and graphically illustrateand forecast a company's projected revenue, and to calculate the time forprofitability to be reached


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Break-Even Chart


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Operation process chart

Operation Process chart represents the sequence of steps ortasks needed to complete a product and details how to build aproduct at each process. It includes what materials are needed,type of processes, product flow, time taken to process productthrough each step of flow and thus serves as a basis forexamining and possibly improving the way the operation iscarried out.


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Symbols in operation chart

Operation

Inspection

Transport

Storage

Delay orTemporary

storage


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Assembly chart

Assembly chart gives a macroview of how materials and subassembly are united to form afinished product. It is a startingpoint to understand the factory

layout needs, equipmentsneeds, training needs for anycompany to deliver a finishedproduct / service


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Parts of a wind mill turbine


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Example of an Assembly chart

A-2SA-1

1

2

3

4

Blade

Hub

Generator

Rotor

A-5

Component/Assembly Operation

Inspection

Tower

A Windmill Turbine


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Make or Buy Decision

Determination whether to produce acomponent part internally or to buy itfrom an outside supplier. This decisioninvolves both qualitative andquantitative factors. Qualitativeconsiderations include product qualityand the necessity for long-run

business relationships withsubcontractors. Quantitative factorsdeal with cost. The quantitative effectsof the make-or-buy decision are bestseen through the Relevant CostApproach

For example, assume a firm hasprepared the following cost estimatesfor the manufacture of a subassemblycomponent based on an annual

production of 8000 units:


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Contnd

The supplier has offered the subassemblyat a price of $16 each. Two-thirds of fixedfactory overhead, which representsexecutive salaries, rent, depreciation, andtaxes, continue regardless of the decision.Should the company buy or make theproduct? The key to the decision lies in theinvestigation of those relevant costs thatchange between the make or buy

alternatives. Assuming that theproductive capacity will be idle ifnot used to produce thesubassembly, we can make thefollowing analysis

he make-or-buy decision must beinvestigated in the broaderperspective of available facilities.The alternatives are: (1) leavingfacilities idle; (2) buying the partsand renting out idle facilities; or (3)buying the parts and using unusedfacilities for other products.


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Make or buy process

Stage 1 refers to thepreparations phase, whichentails creating a multi-

disciplinary team, selectingthe part, assembly or family ofparts for analysis and briefingthe team.

Stage 2is concerned withdata collection.


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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 strengthsand 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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Thank uuu..

Process Plannning

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