Design of production systems and production technology

Design of production
system and production
technology
Production and Operations Management
Unit -2
4/28/2017 UKA TARSADIA UNIVERSITY Prepared by : Divya Paulose 1

Learning Objectives
• Definition of “Product design”, “Process design”, and
“Production design”
• Objectives of production design
• Factors influencing product design
• Characteristics of a good product design

Product design
• It is detailed specification of a manufactured item’s
parts and their relationship.
• A product design takes into account how that product
will perform in an efficient and safe and reliable
manner.
• It is a way to gain customer satisfaction and gain
differential advantage

• Functional design – The product should effectively
perform the function for which it is developed.
• Example: Television – the picture quality (video)
sound quality (audio) is more important.
• FORM DESIGN – It is concerned with appearance and
aesthetic consideration and also size, volume an weight
of the product. These are secondary factors.

PROCESS DESIGN

PROCESS DESIGN
• Concerned with the overall sequences of operations
required to achieve the design specification of product.
• Specifies types of work station used, machines &
equipments etc..
• Choice of process of technology - Manual,
mechanized or automated technology.
• Process must be capable to achieve product quality.

PRODUCTION DESIGN
• The concept of designing products from the point
of view of producibility.
• It is a conscious effort to design for producibility
and low manufacturing cost.

Importance of product design
• All detailed characteristics of each product are established.
• Distinctive design differentiate the product from others.
• Example: Apple iPhone is differentiated from a Samsung
smartphone on the basis of its product design.
• An excellent design includes the following:
Usability aesthetics reliability functionality
innovation appropriateness (quality, cost, features)

Importance of product design
• A good product design can improve its MARKETABILITY.
• Product design directly affects:
• Quality
• Product cost
• Customer satisfaction

OBJECTIVES OF PRODUCT DESIGN
1. Profit generation in the long run.
2. To achieve the desired product quality.
3. To reduce the development time and cost to the
minimum.
4. To reduce the cost of the product.
5. To ensure producibility/manufacturability

Factors influencing product design
•Customers requirements
•Convenience of the user
•Types of materials to be used
•Work methods and equipment

Factors influencing product
design
•Cost/Price ratio
•Product quality
•Process capability
•Effect of existing product
•Packaging

Characteristics of Good
Design
•Function or performance
•Appearance or aesthetic
•Reliability
• Refers to length of time a product can be used before
it fails.
•Maintainability
• Restoration of a product once it has failed.
Serviceability.
•Availability

Characteristics of Good
Design
•Producibility
• Ease of manufacture with min. cost
•Simplification
• Elimination of complex features
•Standardization
• Design activity to reduce variety among group of
products or parts.
•Specification
• Detailed description of material, part, volume, weight
etc…
•Safety : Product should not cause any accidents

What is a process?
• A process is a sequence of activities done to achieve certain
results.
• It is to create added value for customers

• Process converts inputs into outputs in a production system.
Process:
• Is any part of an organization which takes a set of input
resources which are then used to transform something into
outputs of products or services.
• Process:
• Methodology
• Utilized on a continuous basis
• Result in creation of good/service
• Delivered to customer
• Make a profit
• Add maximum value at minimum cost.

A Generalized Job Shop Operation

A Generalized Flow Shop Operation

Types of Process

Types of Process
I. Conversion process
II. Manufacturing process
III.Testing process

Conversion process
• Conversion process includes operations (actual production
process). Operations may be either manual or mechanical or
chemical. Operations convert inputs into output.
• Conversion process also includes supporting activities, which
help the process of conversion.
• The supporting activities include; production planning and
control, purchase of raw-materials, receipt, storage and issue of
materials, inspection of parts and work-in-progress, testing of
products, quality control, warehousing of finished products, etc.

Manufacturing process
i. Forming processes
ii. Machining process
iii. Assembly process

Forming processes
• Forming, or metal forming, is the metalworking process of
fashioning metal parts and objects through mechanical
deformation.
• The work piece is reshaped without adding or removing
material, and its mass remains unchanged.

Machining process

• Machining consist of forcing cutting tool with one
or more edges through the excess materials on a
work piece and removing this excess material in the
form of chip.
Machining
Milling Drilling Grinding Shaping Turning Boring

Assembly process
It is the process of joining of parts or
components to produce assemblies having
specific functions.
Assembly
process
Welding Soldering
Bolts and
nuts
Adhesives

Testing process

PROCESS PLANNING
• Process Design :
Concerned with the
overall sequences of
operations required to
achieve the product
specifications.
•Operation Design:
Concerned with design of
the individual
manufacturing operation.
It examine man-machine
relationship in
manufacturing operations

Framework for process design
• Refer Page No: 65

Process Selection
• Process selection refers to the strategic decisions
of selecting the kind of production process to have in a
manufacturing plant.
• Refers to the way production of goods and services is
organized.
• Plan regarding :-
Capacity planning Equipments
Design of work system Plant layout

•PRIMARY QUESTION TO BE
ADDRESSED:
i. How much variety of products or services will the
system need to handle?
ii. What degree of equipment flexibility will be needed?
iii. What is the expected volume of output?

Process Strategy
• Strategic planning is an organization's process of defining its strategy,
or direction, and making decisions on allocating its resources to
pursue this strategy.
• It can be utilized to guide a variety of process decisions, operations
strategy, and your business' ability to obtain the resources necessary
to support them.
• Key aspects:
Make or buy decision
Capital intensity
Process flexibility

Objective:
• Meet or exceed customer requirements.
• Achieve competitive advantage.
• Has long-run effects: Product & volume flexibility.
• Costs & quality

Make-or-buy decision: Is the act of choosing between
manufacturing a product in-house or purchasing it from an
external supplier.
Capital Intensity: A business process or an industry that
requires large amounts of money and other financial resources to
produce a good or service. A business is considered capital
intensive based on the ratio of the capital required to the amount
of labor that is required.
Process Flexibility: Refers to the degree to which the system
can be adjusted to changes in processing requirements.
Ex: volume of products changes in technology.

3 Process strategies:
• Process Focus/ Job Shops
• Repetitive Focus
• Product Focus

Process Focus
 Facilities are organized around specific activities or
processes
 General purpose equipment and skilled personnel
 High degree of product flexibility
 Typically high costs and low equipment utilization
 Product flows may vary considerably making
planning and scheduling a challenge

Repetitive Focus
 Facilities often organized as assembly lines.
 Characterized by modules with parts and
assemblies made previously.
 Modules may be combined for many output
options.
 Less flexibility than process-focused facilities but
more efficient.

Product Focus
 Facilities are organized by product
 High volume but low variety of products
 Long, continuous production runs enable efficient
processes
 Typically high fixed cost but low variable cost
 Generally less skilled labor
 Need standardization and effective quality control

Make or buy decision
Should I
continue to make
the part, or should
I buy it?
I suppose I
should compare
the outside purchase
price with the additional
costs to manufacture
the part.
What will I
do with my
idle facilities if
I buy the part?

Definition
•“Make-or-Buy decisions compare the
cost of producing a component or
providing the service internally with the
cost of purchasing the component or
service from an external supplier”

Outsourcing
• “Outsourcing is a strategic decision to give a task
or activity to an independent contractor who
determines how best to do the task or activity”.
• (it is a) management strategy by which an
organisation outsources major non-core functions
to specialised, efficient service providers

Subcontracting
Outsourcing is a strategic long term decision,
Subcontracting is a tactical, short term approach.
“Outsourcing is nothing but delegating a particular
business activity/function to another individual/entity.
Sub-contracting is sharing a part of the business
activity with another. ”

Examples of outsourced services
• Car park management
• Cleaning
• Catering
• Building maintenance
• Security
• Transport management
• Waste disposal
•Library
•Medical/ Welfare
•Pest control
•Ground maintenance
•Computers & information
technology

Reasons for Making
• Cost concerns
• Desire to expand the
manufacturing focus
• Need of direct control over
the product
• Intellectual property
concerns
• Quality control concerns
• Supplier unreliability
• Lack of competent suppliers
• Volume too small to get a
supplier attracted
• Reduction of logistic costs
(shipping etc.)
• To maintain a backup
source
• Political and environment
reasons
• Organizational pride

Reasons for Buying
• Lack of technical
experience
• Supplier's expertise on
the technical areas and
the domain
• Cost considerations
• Need of small volume
•Insufficient capacity to
produce in-house
•Brand preferences
•Strategic partnerships

Four Numbers You Should Know
• The volume
• The fixed cost of making
• Per-unit direct cost when making
• Per-unit cost when buying
• Cost to Buy(CTB) = Volume x Per - unit cost when buying
• Cost to Make(CTM) = Fixed costs + (Per-unit direct cost x
volume)

Technology
•Is define to be the know how, physical things and
procedures used to produce products and services.
•Know – how : knowledge and judgment of how, when
and why to employ equipment's , processes and
procedures.
•Advanced Technology: The application of the latest
scientific or engineering discoveries to the design of
production and operations processes

Examples
• Nuclear Technology
• Manufacturing Technology
• Design Technology
• Communication Technology
• Missile Technology
• Space Technology
• Laser Technology

Role of Technology
• Self study topic

Classification
•Manual technology
•Mechanized technology
•Automated technology
• Current technology
• Appropriate technology

•State of the art technology
•Advanced technology
•Obsolete technology

Design of production systems and production technology

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