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8/2/2019 CHAPTER 4 Process Planning
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8/2/2019 CHAPTER 4 Process Planning
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A critical strategic POM decision after thecompany has finally identified whatspecific product(s) or service(s) it wouldprovide its customers is the determination
of how it will be able to produce or deliverit. This is the concept of PROCESSPLANNING or PROCESS STRATEGY wherethe company specifically identifies the
combination of resources, activities andmethods that will enable the firm toproduce the product (in the case ofmanufacturing) or render the service
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Specifically, Process Planning deals withall decisions about a process; gives adetailed description of the operations
needed to make a product or render aservice. It is performed during thefollowing changes in operations
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Consistent with the concept ofConcurrent Engineering, firms need tolink process decisions with their productstrategies. In Particular, a new products
will either need revisions or remodeling ofexisting machinery or conduct of atotally different type of the production
process.
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The same logic holds true for changes inthe features of existing products,especially when there are significantalteration in product designs andmaterials utilization.
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Currently, the high production costsassociated with the increasing cost offoreign and local materials haveprompted Philippine-based
manufacturing companies to look forways on improving process designs tomake them cost-efficient and still meet
set production quotas;
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In the case of the toiletry industry, a stiffcompetition exists between P & G,Unilever, Johnson and Johnson and
Kimberly Clark. A change in the featureof their consumer lines which normally isrelated to a similar change in theprocesses of the individual competing.
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Ultimately, the determining variable as tohow significant process design willchange will be what the marketdictates. The market provides
information on the quantity, quality andspecification required by the customers,which need to be attended to by the
manufacturing and service sectors; and
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Lastly, a firm experiencing tremendous
production losses and inefficiencies andincreasing production cost need to becarefully evaluate the efficiency and
effectiveness of its existing processes. Byprocess, it means the combination of thefollowing variables
Technology
Machinery and equipment
Production process itself
Work methods
Materials, among others
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Process design strategy is normally aresponsibility of the engineering group,specifically the process engineers. Ofcourse, strategic decision such as the
adoption of a particular technology willmerit the evaluation of topmanagement, but the actual evaluationof the appropriate method to use and
the other details of the productionprocess are under the OperationsDepartment, particularly the engineeringgroup.
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As mentioned, process planning isdirectly linked with the firms productstrategy. The critical variables to look into
would be the volume of productiondesign. These variables will determinethe appropriate process type to use. Thispart involves more specifically the
following: Choice of technology
Choice of process type
Choice of machinery and equipment
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For a machine to run as designed, acorollary decision under processplanning would be the appropriate
choice of materials and inputs usedwhich should be technically compatiblewith the equipment being utilized. There
should also be trained and competentpeople to run the machines, and theprocedure manuals to operate suchfacilities need to be documented.
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Once process test runs had beencompleted and the feasibility to runningthe process types had been adequately
studied, an ample amount of time isspent to install the facilities andequipment. Critical decisions prior to
installation include the following:
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1. Should the machinery and equipmentbe permanently fixed or movable?
2. Should the machinery and theequipment be purchased orfabricated?
3. Should the machinery and equipment
be integrated or be installedseparately?
4. Should the machinery and equipmentbe general- purpose or specialized?
The firms plan for expansion is alreadybeing included as early as the initialprocess design evaluation.
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The last scope of process design wouldbe the design and establishment ofcontrol measures to monitoreffectiveness of process design.
While these guidelines are normallyassociated with a manufacturing setting,the same sets of activities hold true for
selection of process for service firms,except that service entities need todesign for both its front-office and back-office operations.