The following is the small short and simple powerpoint presentation entitled "Designing and Redesigning business process: Plant Location" for the subject Small Business and Enterpreneurship falls under BBA course.
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.