Process Analysis and Design 7

Process Analysis and Design

• Process analysis and design involves flowchart, time-function mapping, and value-stream mapping (VSM)
• Flowchart shows the movement of materials
• Time-function mapping shows flows and time frame
• VSM shows where value is added in the entire production process, including the supply chain

Value-Stream Mapping

• Begins with symbols for customer, supplier, and production to ensure the big picture
• Enters customer order requirements, calculates daily production requirements, and enters outbound shipping requirements
• Determines inbound shipping method and delivery frequency
• Adds process steps in sequence, left to right
• Adds communication methods, their frequency, and direction with arrows
• Adds inventory quantities between every step of the entire flow
• Determines total working time (value-added time) and delay (non-value-added time)

Service Blueprinting

• Focuses on customer and provider interaction
• Defines three levels of interaction, each with different management issues
• Identifies potential failure points

Mass Customization

• Involves imaginative product design, flexible process design, tightly controlled inventory management, tight schedules, and responsive partners in the supply chain

Focused Processes

• Focus brings efficiency
• Focus can be on customers, products, service, or technology
• Focus is on depth of product line rather than breadth

Selection of Equipment

• Decisions can be complex due to alternate methods being available
• Important factors to consider include cost, cash flow, market stability, quality, capacity, and flexibility

Flexibility

• Flexibility is the ability to respond with little penalty in time, cost, or customer value
• May be a competitive advantage
• May be difficult and expensive to achieve
• Without it, change may mean starting over

Process Analysis and Design Questions

• Is the process designed to achieve a competitive advantage?
• Does the process eliminate steps that do not add value?
• Does the process maximize customer value?
• Will the process win orders?

Service Blueprint

• Personal greeting, service diagnosis, perform, and friendly close are part of the service blueprint
• Physical attributes to support service include parking, signage, waiting-room amenities, and employee appearance
• Poka-yokes are used to address potential failure points

Production Technology

• Includes machine technology, automatic identification systems (AISs), process control, vision systems, robots, automated storage and retrieval systems (ASRSs), automated guided vehicles (AGVs), flexible manufacturing systems (FMSs), and computer-integrated manufacturing (CIM)

Process Analysis and Design

• Flowchart: shows the movement of materials
• Harley-Davidson flowchart: example of flowchart
• Time-Function Mapping: shows flows and time frame

Value-Stream Mapping (VSM)

• Shows where value is added in the entire production process, including the supply chain
• Extends from the customer back to the suppliers
• Steps in VSM:
  • Begin with symbols for customer, supplier, and production
  • Enter customer order requirements and calculate daily production requirements
  • Enter outbound shipping requirements and delivery frequency
  • Determine inbound shipping method and delivery frequency
  • Add process steps in sequence, left to right
  • Add communication methods and show direction with arrows
  • Add inventory quantities between every step of the entire flow
  • Determine total working time (value-added time) and delay (non-value-added time)

Service Blueprinting

• Focuses on customer and provider interaction
• Defines three levels of interaction with different management issues
• Identifies potential failure points

Automated Guided Vehicle (AGVs)

• Electronically guided and controlled carts
• Used for movement of products and/or individuals

Flexible Manufacturing Systems (FMSs)

• Computer controls both the workstation and material handling equipment
• Enhance flexibility and reduce waste
• Can economically produce low volume but high variety
• Reduced changeover time and increased utilization
• Stringent communication requirement between components

Computer-Integrated Manufacturing (CIM)

• Extends flexible manufacturing systems
• Includes engineering and inventory control, warehousing, and shipping
• Can also include financial and customer service areas
• Reduces the distinction between low-volume/high-variety and high-volume/low-variety production

Process Strategies

• Objective: create a process to produce offerings that meet customer requirements within cost and other managerial constraints
• Four basic strategies: process focus, repetitive, product, and mass customization