11 Operation System Design And Planning

Kuliah-11-Operation Planning-Senator Nur Bahagi@

OPERATION SYSTEM DESIGN and

PLANNING


Operation System Design

The Integration of Product and Service Delivery With the Facilities and Process Technologies

Over the Life Cycle of the Operations System, Which Permits Production of Goods and

Service at Desired Quality, Volumes, and Cost


Framework

Marketing Strategy Capacity Strategy

Organization Design

Operation System Design

OS Life Cycle OS Characteristics

Process Technology Diffusion


Operation System Life Cycle

1. Birth of the Operation System

2. Product/Service Design and Process Technology Selection

3. Design of Operation System

4. Star up of the Operation System

5. Growth of Volume

6. Stable State

7. Decline and Renewal of the System


Product/Service Start-up Growth Stable Decline

Volume Low Increasing High DecliningVariety Unique Inc.Standard Emergence High Standard Dom. Design Process Technology Organization Project Small Batch Line flow Line flow Job shop Assembly AssemblyInnovation High Medium Medium LowIntegration Low Medium Medium High

Industry Structure Small Consolidation Few large Survivor competitor and fallout competitor Competitive Flexibility Quality and Price(cost) Price(cost) Priority Flexibility Delivery

Product/Service and ProcessTechnology Life Cycles


Operation System

1. Classical• Project

• Job Shop

• Flow Shop

2. Emerging• Variable Production Line

• Manufacturing Cells

• FMS

• CIM


Equipment and Physical Layout Characteristics

Project Job Shop Flow ShopSize of Facility Varies Small Large

Process Flow Circumference Num, Pattern Rigid

Equipment General General Specialized

Capital Ints. Varies Low High

Capital Add. Incremental Small Large Chunk

Speed of Process Varies Slow Fast

Control Worker Worker & Process Design

Tech. Change Slow Average Fast


Direct Labor and Work Force Characteristics

Project Job Shop Flow ShopLabor value added High Average Very Low

Job content scope Large Average Small

Skill level High Average Low

Wage rate High Average Low

Worker training V. High High Low


Material and Information Control Characteristics

Project Job Shop Flow ShopMaterial Requirement Varies Unpredictable Predictable

Vertical Integration None Limited Back&Forwd

Inv. Raw Material None Small Large

WIP Large Large Small

Finished Goods None Small High

QC Responsibility D. Labor D. labor QC Specialist

Prod/Serv, Information V. High High Low

Scheduling Uncertain Changes Inflexible


Process Management Characteristic

Project Job Shop Flow ShopChallenges Estimating Lab.Utilization Avoid Downtime

Sequencing Debottlenecking Time Expansion

Pacing Learning Curve Cost Minimizing

Tools PERT/ Load Chart Line Balancing

CPM Optimization


Variable Production Line

Dedicated High Volume Lines That Are Reconfigured to Permit Some Process

Variation and Thus Several Different Products or Service


Manufacturing Cell (MC)

Dedicated Subset of Manufacturing System Designed to Process Part Families or

Product Group

Economies of Set-up

Employee Learning

Reduced WIP

Shorter Throughput Time

Improved Responsiveness to Customer


Flexible Manufacturing System(FMS)

Integrates and Enhances the Flexibility of Manufacturing Cell Through the Use of

Centralized Control Systems

Flexibility Approaching Job Shop With Material Handling Capability of a Flow Lines


Computer Integrated Manufacturing (CIM)

Application of a computer system to link several separated information systems and

technologies at different functional level

Simplify, Automate and Integrate


Stage Toward A CIM

Batch/Lot ProcessMRPII/SPC

JIT &MC Focused factoryStable Flow

FMS CAD/CAMRobotics AMH/GT

CIMInformation System

Integration

Traditional Mfg. Variable Line

Stage 3

Stage 1

Stage 2

Stage 4

To CIM

Process Technology Process Control System


Operation Flexibility

Ability to Respond the Changes in Customer Requirements

Product/Service Process Technology *Volume * Changeover

*Mix * Scheduling

*Modification * Innovation


Product/Service Flexibility

• VolumeAbility to respond quickly to changes in the amount of

particular product or service that is required

• MixAbility to react quickly to changes in mix or proportion of

products of a product family that are produced

• ModificationAbility to incorporate changes in product characteristics

and to develop and produce newly designed product


Process Flexibility

Allows the operation manager to deploy or

re-deploy resources in response to variations in products/services, availability of resources, or

process technology

1. Changeover Flexibility

2. Scheduling Flexibility

3. Innovation Flexibility


Process Flexibility

• Changeover FlexibilityAbility to respond rapidly to different production set-ups

required for various products

• Scheduling FlexibilityAbility to vary the routing, sequence, or production

lot-sizes to accommodate required production volume

• Innovation FlexibilityAbility to define and implement new technologies in

production processes with minimal disruption


Characteristics of Process Flexibility

Type of Flexibility Respond To Subcategories Changeover Product/service Product/service volume ( market driven) Product/service range Product/service mix Product/service modification

Scheduling Availability of Material resources Equipment (resources driven) Labor

Innovation Product/service Process Technology Process Technology Process Control or Information Technology (technology driven)


Product/Service -Process Technology Continuum


Focus

A Clear and sharply defined set of products, technologies, volumes and

markets

• Process Focus

• Product/Service Focus


Product/Service -Process Technology Diffusion

Process Product/Service Volume

Technology Low High

Project

Job Shop

Disconnected Line

Connected Line

Continuous

Enhanced Standardization (Right lateral Movement)

Flexible Processes (Upward Movement)

Enhanced Process Flow( Downward Movement)

Modular Structure/ Variable Processing

Line (Left lateral Movement)


Operation System Decision Making

Position

Major Technology Choice

Equipment Selection & Specification and

Layout Design

Operation Planning


Position

1. Competitive Positioning on the Product/Service-Process Technology Continuum

2. Definition of the Position on the Continuum

3. Identification of the Direction and Momentum of Movement Which Are Projecteda. Right Lateral Movementb. Left Lateral Movementc. Upward Movementd. Downward Movement


Major Technology Choice

• Selecting the Process Technology of the Manufacturing or Service Operation, using:Classification Of Manufacturing Processes

Classification Of Service Processes

• Selecting the Supporting Information System


Classification Of Manufacturing Processes

1. Processes for Changing Physical Properties

2. Processes for Changing the Shape of Material

3. Processes for Machining Parts to a Fixed Dimension

4. Processes for Obtaining a Surface Finish

5. Processes for Joining Parts or Materials


Classification Of Service Processes

1. Process for relocating goods

2. Process for storing goods

3. Process for exchanging items

4. Process for physical transformation

5. Process for physiological transformation

6. Process for information transformation


Equipment Selection & Specification And Layout Design

• Selecting Equipment to be used,a. General-purpose or Specialized Equipment

b. Material Handling System

• Allocating Available Facilities

(Layout Design)


Equipment Selection Alternatives

General Purpose SpecializedCost Low High

Operator skill&control High , more control Low, less control

Output rate Low-human pace High-machine pace

Setup time Lower-problem pre- High-problem ran-

dictable &controllable dom & highly tech.

Maintenance Cost Low-lower skill req’ed High

Product/service Based on human High-based on

Quality control machine accuracy

WIP High Low

Absolescence Slower High


Material Handling

1. Increasing Speed and Precision

2. Maximizing the Use of Space and Equipment

3. Increasing Safety and Working Condition

4. Reducing Damage

5. Increasing Control


Principles of Material Handling

1. Minimize the Number of Material Moves

2. Maximize the Unit Load Handled

3. Maximized Safety of Material Handling Equipment

4. Simplify the Material Handling Process

5. Maximize Pace Utilization

6. Integrate Storage and Handling System

7. Integrate Materials and Information Flows

8. Minimize Human Effort

9. Design for Improved Operability, Reliability, Maintainability and Flexibility


Types of Layout

A. Traditional Layout1. Fix Position Layout

2. Process Layout

3. Product Layout

B. Automated Layout4. Cellular Layout

5. Modular Layout


Operation Planning

• Creating Schedule

• Assessing That Schedule Through the Appropriate Capacity Evaluation Method


OPERATION PLANNING


Vertical Linkages

Corporate Strategy

Business Strategy

Functional Strategy

Operation/Production Management


Operation Planning CycleSales Target

Operation Target

Operation Schedule

Material Machine Worker

Operation Plan

Shop Floor Operation

Evaluation


Operation Planning System

• Input : Sales Target

• Output : Operation Schedule

• Method: Traditional, MRP or JIT

• Performance Criteria: QCDFS


Performance Criteria

• Quality

• Cost

• Delivery

• Flexibility

• Safety


Example of Operation Objective

Quality

This Year 5 Next Year CompetitorCustomer Satisfaction 75 % 85 % 75 %

Scrap and Reject 15 % 5 % 10 %

Warranty ( % COGS) 1 % 0.5 % 1%

Cost

COGM ( % COGS ) 55 % 45 % 50%

ITO 41 x 52 x 50 x


Example of Operation Objective

Delivery

This Year 5 Next Year Competitor

Fill Rate 90% 95% 95%

Lead Time (week) 3 1 1

Flexibility

Time to Introduce New Product 10 month 6 month 8 month

Time to Change Over Capacity 3 month 3 month 3 month


Operation Planning Method

Traditional MRP JIT


Traditional

»Push Method

»Statistical and Optimization

»Partial Approach

»Flexible


MRP

»Pull Method

»Time Phasing

»Logical Approach

»Integrated Approach

»Information Based


JIT

»Pull Method

»Time Phasing

»Elimination Waste Approach

»Integrated Approach

»Cultural Based

Education

11 Operation System Design And Planning