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Ch 6 - Processes and Technologies

1. Process Planning     (p221)
   1. Def - Process Planning - determining how a product will be produced.
   2. *Make-or-Buy Decisions - should consider not only cost but capacity, quality, speed, reliability, expertise.
2. Types of Processes     (p223)
   1. Project
      1. Def - one-of-a-kind production of a customized product that requires a long completion time (more Ch 9).
      2. Examples - constructing a building, developing a new product.
   2. Intermittent Process (Batch Production)
      1. Def - a process characterized by many small runs (batches) of a large variety of different products. (Low-volume, High-variety)
      2. Examples - typical job shop - general practitioner law firm, machine shop, retail bakery, gourmet restaurant, Ch 2, p41.
   3. Repetitive Process (Mass Production)
      1. Def - a process characterized by the use of modules previously produced.
      2. Examples - typical assembly line for cars, household appliances, computers.
   4. Continuous Process
      1. Def - a process characterized by large runs of a small assortment of similar products. (High-volume, Low-variety)
      2. Examples - continuous production of chemicals, glass, light bulbs.

   Note: Production processes occur on a continuum with intermittent and continuous at the extremes and repetitive in between.

3. Comparison of Processes Table 6.1, p227

   	Type of Process
   Characteristic	Intermittent	Repetitive	Continuous
   Type of product	made-to-order	made-to-stock	commodity
   Equipment	general purpose	special purpose	automated
   Type of work	fabrication	assembly	mixing
   Worker skills	high	moderate	low
   Work orders	numerous	moderate	few
   Work in process inventories	high	moderate	low
   Materials handling	carts, wagons	conveyors	pipes
   Fixed costs	low	moderate	high
   Variable costs	high	moderate	low

4. Discussion Item (be prepared to discuss during class)
   1. Identify a product (good or service) that you will produce or manage within the next 5 years.
   2. Explain which of the above 3 processes would be most appropriate for its production.
5. Process Plans (p230)
   1. Def - Process Plans - the set of documents that details production specifications. This may include:
      1. *Bill of material - list of materials and parts that go into a product
      2. *Assembly Chart - shows how various parts combine to form the final product, Fig. 6.2.
      3. *Operations Sheet - lists the operations to be performed for a standardized product - Fig 6.3.
      4. *Routing Sheet - lists the operations necessary to produce a customized product. (Useful in job shops)
              Note: *Similar documents are produced for services.  See Service Blueprint, Fig 6.6 p235.
6. Discussion Item (be prepared to discuss during class):
   1. Identify a product (good or service) that you will produce or manage within the next 5 years.
   2. What documents will you create to specify the production of the product?
7. Process Analysis     (p230)
   1. Def - Process Analysis - the systematic analysis of a process to improve its efficiency and effectiveness.
   2. *Process Flowchart - a document that uses standardized symbols to analyze the activities involved in a process:
          O     - operation,                (see Fig 6.4, p232)
          →    - transport  (if character does not print, arrow),
           ■      - inspection,  (square)
          D       - delay,
         ▼     - storage  (triangle).
                      Do assigned HW - Case Problem.
   3. Process Innovation (also called Business Process Reengineering (BPR), Process Redesign, ...)     (p235)
      1. Def - Reengineering - the total redesign of a process.
      2. Many times, reengineering profoundly changes a process thru the use of information technology.
               Ex., Dell sells PCs thru the Internet.
      3. TQM continually improves an existing process, whereas reengineering starts with a clean slate.
8. Information Technology Primer     (p241)
   1. Management Information System (MIS) - a combination of people, data, and procedures, used to create and distribute information throughout an organization.
      1. Purpose - Managers need information to make decisions about resources to accomplish objectives.
   2. Decision Support System - an information system that allows a manager to interactively analyze operations.
   3. Expert System - an information system that contains:
      1. Knowledge base - collection of rules and facts
      2. Inference engine - a computer program that examines existing rules and facts and infers new facts when possible.
             (Demonstration of Expert System Technology Assistant - ESTA)
   4. Artificial Intelligence
      1. Neural networks - can be used for nonlinear regression.
      2. Genetic Algorithms
   5. Advanced Communications
      1. Electronic Data Interchange (EDI)
      2. Internet, Intranets, Extranets
      3. Teleconferencing - NetMeeting
9. Manufacturing Technology     (Table 6.4, p242)
   1. Computer-Integrated Manufacturing - consists of:
      1. *Automated Material Handling - automated guided vehicles and automated storage and retrieval systems.
      2. *Flexible Manufacturing System - several programmable machines controlled by a computer network.
      3. *Robots - programmable machines that can move workpieces or tools.
   2. *e-Manufacturing - Web-centric Computer-Integrated Manufacturing system that uses real-time information on customer orders and productive capacity across the supply chain to speed customized products directly to the customer. Fig. 6.11, p241 (more in Ch 10 & 14).
                                                      (This page was last edited on September 18, 2006 .)