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Designing &
Redesigning
business
process:
Plant location &
Plant
1
What is business process design ?
Businessprocessdesignis a methodusedto createa new workflowfromscratch. New
organizations engage in businessprocess design whenthey startthinking about the ways
that they will produce and deliver their products and services. Organizations also engage in
business processdesignwhen they implement entirely new processes or redesign existing
ones .
Business process design steps
● Businessprocessdesignconsistsof thefollowing 4 steps:
● Identifying and defining the problem
● Identifying inputs, outputs, parties, and procedures
● Mapping out the process
● Testing the process
While all process maps are different and vary with the complexity of a process,
there are several key elements that every map should have. These include:
Actions
Decision points
Inputs and outputs
Functions
Stakeholders involved
Process measurements
Time required
Business
process
Re-
Engineering
(BPR)
Business process re-engineering
BPR
Businessprocessre-engineering is the radical redesignof
business processes to achieve dramaticimprovements in critical
aspects likequality, output, cost, service, and speed. Business
processreengineering (BPR) aims at cutting down enterprise
costs and processredundancies on a very hugescale.
Five steps of (BPR)
1. Mapthe current stateof your business processes
2. Analyze themand find anyprocessgaps or disconnects
3. Lookfor improvement opportunitiesand validatethem
4. Design a cutting-edge future-stateprocess map
5. Implement future statechanges and be mindful of dependencies
Plant Location:
Importance,
Techniques and
Procedure
Location of an industry is an important management decision. It is
a two-step decision: first, choice of general area or region and
second, the choice of site within the area selected. Location
decision is based on the organisations long-term strategies such as
technological, marketing, resource availability and financial
strategies.
The objective of plant location decision-making is to minimize the
sum of all costs affected by location.
(i) Location influences plant layout facilities needed.
(ii) Location influences capital investment and operating costs.
1. Select the areawhere producer or enterprisers have an ideaabout the local
people,their habits, customs and needs.
2. If selection is made in a strange area, thenenterprisermust personally
meet the local interested people.
3. Locationin rented premises is always better than purchasing. Because if
change of location is sought latter, then purchasedpremisesmay cause a loss.
4. Location at the mainroads or corneris best suited, if finances allow.
5. Locationon side road is economical but more publicityis required to
becomeknown.
6. The first renting contract withowner must not exceed one year or so, and
commitments for five or ten years must not be made until success of the
projectsis certain.
7. Success is not assuredin anyparticularlocality, but it can be achievedin
every localityand in anylocation by good and careful planning.
The Best Location for the Small
Plant
For selecting a site following procedure
should be followed:
1. Constitution of a site selection committee.
2. Determining the company needs.
3. Deciding criteria for selection.
4. Accumulate the data.
5. Analyse the data.
6. Evaluate the alternatives.
7. Reduce number of alternatives.
8. Investigation in detail.
9. Collect and analyse further data.
Procedure for Selecting a Site
Techniques used for Selecting Best
Location
1. Subjective Techniques:
(a) Industry precedence,
(b) Preferential factor and
(c) Dominant factor.
2. Qualitative Techniques (Factor ranking system)
3. Semi-quantitative Techniques (Factor weight-rating system)
4. Quantitative Techniques (Operation Research Models):
(a) Break-even analysis.
(b) Economic/cost analysis, and
(c) Transportation model.
Plant Layout:
Concept,
Objectives,
Principles
Types
Concept of Plant Layout
“Plant layout is a plan of optimum arrangement of
facilities including personnel, equipment’s, storage
space, material handling equipment and all other
supporting services along with the decision of best
structure to contain all these facilities.”
Plant layout is a plan for effective utilization of
facilities for the manufacture of products; involving
a most efficient and economical arrangement of
machines, materials, personnel, storage space and
all supporting services, within available floor space.
Objectives of Plant Layout
Following are the objectives of plant layout:
(i) Streamline flow of materials through the plant
(ii) Minimize material handling
(iii) Facilitate manufacturing progress by maintaining balance in the processes
(iv) Maintain flexibility of arrangements and of operation
(v) Maintaining high turnover of in-process inventory
(vi) Effective utilization of men, equipment and space
(vii) Increase employee morale
(viii) Minimize interference (i.e. interruption) from machines
(ix) Reduce hazards affecting employees
Principles of Plant Layout
While designing the plant layout, the following principles
must be kept in view:
(i) Principle of Minimum Movement
(ii) Principle of Space Utilization
(iii) Principle of Flexibility
(iv) Principle of Interdependence
(v) Principle of Overall Integration
(vi) Principle of Safety
(vii) Principle of Smooth Flow
(viii) Principle of Economy
(ix) Principle of Supervision
(x) Principle of Satisfaction
Types of Plant Layout
(a) Product Layout (or Line Layout):
In this type of layout, all the machines are arranged in the sequence, as
required to produce a specific product. It is called line layout because
machines are arrange in a straight line. The raw materials are fed at one
end and taken out as finished product to the other end.
Special purpose machines are used which perform the required jobs (i.e.
functions) quickly and reliably.
(b) Process Layout (or Functional Layout):
In this type of layout, all machines performing similar type of operations
are grouped at one location i.e. all lathes, milling machines etc. are
grouped in the shop and they will be clustered in like groups.
(c) Combination Layout:
In practice, plants are rarely laid out either in product or process layout form.
Generally a combination of the two basic layouts is employed; to derive the
advantages of both systems of layout. For example, refrigerator manufacturing
uses a combination layout.
Process layout is used to produce various operations like stamping, welding, heat
treatment being carried out in different work center's as per requirement. The
final assembly of the product is done in a product type layout.
Types of Plant Layout
(d) Fixed Position Layout:
It is also called stationary layout. In this type of layout men, materials and
machines are brought to a product that remains in one place owing to its size.
Ship-building, air-craft manufacturing, wagon building, heavy construction of
dams, bridges, buildings etc. are typical examples of such layout.

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Designing and Redesigning business process: Plant Location

  • 2. What is business process design ? Businessprocessdesignis a methodusedto createa new workflowfromscratch. New organizations engage in businessprocess design whenthey startthinking about the ways that they will produce and deliver their products and services. Organizations also engage in business processdesignwhen they implement entirely new processes or redesign existing ones .
  • 3. Business process design steps ● Businessprocessdesignconsistsof thefollowing 4 steps: ● Identifying and defining the problem ● Identifying inputs, outputs, parties, and procedures ● Mapping out the process ● Testing the process
  • 4. While all process maps are different and vary with the complexity of a process, there are several key elements that every map should have. These include: Actions Decision points Inputs and outputs Functions Stakeholders involved Process measurements Time required
  • 6. Business process re-engineering BPR Businessprocessre-engineering is the radical redesignof business processes to achieve dramaticimprovements in critical aspects likequality, output, cost, service, and speed. Business processreengineering (BPR) aims at cutting down enterprise costs and processredundancies on a very hugescale.
  • 7. Five steps of (BPR) 1. Mapthe current stateof your business processes 2. Analyze themand find anyprocessgaps or disconnects 3. Lookfor improvement opportunitiesand validatethem 4. Design a cutting-edge future-stateprocess map 5. Implement future statechanges and be mindful of dependencies
  • 9. Location of an industry is an important management decision. It is a two-step decision: first, choice of general area or region and second, the choice of site within the area selected. Location decision is based on the organisations long-term strategies such as technological, marketing, resource availability and financial strategies. The objective of plant location decision-making is to minimize the sum of all costs affected by location. (i) Location influences plant layout facilities needed. (ii) Location influences capital investment and operating costs.
  • 10. 1. Select the areawhere producer or enterprisers have an ideaabout the local people,their habits, customs and needs. 2. If selection is made in a strange area, thenenterprisermust personally meet the local interested people. 3. Locationin rented premises is always better than purchasing. Because if change of location is sought latter, then purchasedpremisesmay cause a loss. 4. Location at the mainroads or corneris best suited, if finances allow. 5. Locationon side road is economical but more publicityis required to becomeknown. 6. The first renting contract withowner must not exceed one year or so, and commitments for five or ten years must not be made until success of the projectsis certain. 7. Success is not assuredin anyparticularlocality, but it can be achievedin every localityand in anylocation by good and careful planning. The Best Location for the Small Plant
  • 11. For selecting a site following procedure should be followed: 1. Constitution of a site selection committee. 2. Determining the company needs. 3. Deciding criteria for selection. 4. Accumulate the data. 5. Analyse the data. 6. Evaluate the alternatives. 7. Reduce number of alternatives. 8. Investigation in detail. 9. Collect and analyse further data. Procedure for Selecting a Site
  • 12. Techniques used for Selecting Best Location 1. Subjective Techniques: (a) Industry precedence, (b) Preferential factor and (c) Dominant factor. 2. Qualitative Techniques (Factor ranking system) 3. Semi-quantitative Techniques (Factor weight-rating system) 4. Quantitative Techniques (Operation Research Models): (a) Break-even analysis. (b) Economic/cost analysis, and (c) Transportation model.
  • 14. Concept of Plant Layout “Plant layout is a plan of optimum arrangement of facilities including personnel, equipment’s, storage space, material handling equipment and all other supporting services along with the decision of best structure to contain all these facilities.” Plant layout is a plan for effective utilization of facilities for the manufacture of products; involving a most efficient and economical arrangement of machines, materials, personnel, storage space and all supporting services, within available floor space.
  • 15. Objectives of Plant Layout Following are the objectives of plant layout: (i) Streamline flow of materials through the plant (ii) Minimize material handling (iii) Facilitate manufacturing progress by maintaining balance in the processes (iv) Maintain flexibility of arrangements and of operation (v) Maintaining high turnover of in-process inventory (vi) Effective utilization of men, equipment and space (vii) Increase employee morale (viii) Minimize interference (i.e. interruption) from machines (ix) Reduce hazards affecting employees
  • 16. Principles of Plant Layout While designing the plant layout, the following principles must be kept in view: (i) Principle of Minimum Movement (ii) Principle of Space Utilization (iii) Principle of Flexibility (iv) Principle of Interdependence (v) Principle of Overall Integration (vi) Principle of Safety (vii) Principle of Smooth Flow (viii) Principle of Economy (ix) Principle of Supervision (x) Principle of Satisfaction
  • 17. Types of Plant Layout (a) Product Layout (or Line Layout): In this type of layout, all the machines are arranged in the sequence, as required to produce a specific product. It is called line layout because machines are arrange in a straight line. The raw materials are fed at one end and taken out as finished product to the other end. Special purpose machines are used which perform the required jobs (i.e. functions) quickly and reliably. (b) Process Layout (or Functional Layout): In this type of layout, all machines performing similar type of operations are grouped at one location i.e. all lathes, milling machines etc. are grouped in the shop and they will be clustered in like groups.
  • 18. (c) Combination Layout: In practice, plants are rarely laid out either in product or process layout form. Generally a combination of the two basic layouts is employed; to derive the advantages of both systems of layout. For example, refrigerator manufacturing uses a combination layout. Process layout is used to produce various operations like stamping, welding, heat treatment being carried out in different work center's as per requirement. The final assembly of the product is done in a product type layout. Types of Plant Layout (d) Fixed Position Layout: It is also called stationary layout. In this type of layout men, materials and machines are brought to a product that remains in one place owing to its size. Ship-building, air-craft manufacturing, wagon building, heavy construction of dams, bridges, buildings etc. are typical examples of such layout.