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OM - Session 5

The document discusses various types of production processes, including project, batch, line, and continuous processes, highlighting their characteristics and differences. It also covers process design tools, terminology such as bottlenecks and pacing, and performance metrics like operation time, throughput time, and efficiency. Additionally, it emphasizes the importance of facility location and layout in production and operations management.

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Satyajit Kamila
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7 views15 pages

OM - Session 5

The document discusses various types of production processes, including project, batch, line, and continuous processes, highlighting their characteristics and differences. It also covers process design tools, terminology such as bottlenecks and pacing, and performance metrics like operation time, throughput time, and efficiency. Additionally, it emphasizes the importance of facility location and layout in production and operations management.

Uploaded by

Satyajit Kamila
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Production & Operations

Management
Session 5
Process Selection
• Process types can be:

– Project process /Job Shop– 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
Process Selection
– Line process – large quantities of a standard product

– Continuous process – very high volumes of a fully


standard product
Underlying Process Relationship Between Volume and Standardization
Differences between Intermittent and
Repetitive Operations
Decision Intermittent Operation Repetitive Operation
Product variety Great Small
Degree of standardization Low High
Organization of resources Grouped by Function Line flow
Path of products Varied, depends on product Line flow
Factor driving production Customer orders Forecast of demand
Critical resource Labor Capital
Type of equipment General purpose Specialized
Degree of automation Low High
Throughput time Longer Shorter
Work-in-process inventory More Less
Designing Processes
• Process design tools include
– Process flow analysis
– Process flowchart (Also used to evaluate and
improve processes.)
• Design considerations include
– Make-to-stock strategy
– Make-to-order strategy
PUSH vs. PULL
OTHER PROCESS TERMINOLOGY
• Bottleneck
– If an employee works too slow in a multi-stage process, work will begin to pile
up in front of that employee. In this is case the employee represents the
limited capacity causing the bottleneck.
• Pacing
– Refers to the fixed timing of the movement of items through the process
• A buffer refers to a storage area between stages where the output of
a stage is placed prior to being used in a downstream stage
• Make-to-order
– Only activated in response to an actual order
• Make-to-stock
– Customer orders are served from target stocking level
Process Performance Metrics
• Operation time = Setup time + Run time

• Throughput time = Average time for a unit to move through the


system

• Velocity = Throughput time


Value-added time
• Cycle time = Average time between completion of units

• Throughput rate = 1 .
Cycle time

• Efficiency = Actual output


Standard Output
Process Performance Metrics (Cont.)
• Productivity = Output
Input

• Utilization = Time Activated


Time Available
Process Performance Metrics
Process Throughput Time Reduction

• Perform activities in parallel

• Change the sequence of activities

• Reduce interruptions
Facility Location & Layout
THANK YOU!!!

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