Processdesign Johann Packendorff

Process Design = att designa både designaktiviteter och produktionsaktiviteter! Processes that Design Products and Services Processes that Produce Products and Services Supply Network Design Concept Generation Screening Layout and Flow Preliminary Design Evaluation and Improvement Process Technology Job Design Prototyping and final design

Decisions taken during the design of the product or service will have an impact on the process that produces them and vice versa Products and services should be designed in such a way that they can be created effectively Processes should be designed so they can create all products and services which the operation is likely to introduce Designing the Product or Service Designing the Processes that Produce the Product or Service

THE DESIGN ACTIVITY OUTPUT Finished designs which are: TRANSFORMED RESOURCES High quality: Error-free designs which fulfil their purpose in an effective and creative way Speedily produced: Designs which have moved from concept to detailed specification in a short time Dependably delivered: Designs which are delivered when promised Produced flexibly: Designs which include the latest ideas to emerge during the process Low cost: Designs produced without consuming excessive resources Technical information Market information Time information THE DESIGN ACTIVITY INPUTS OUTPUT Test and design equipment Design and technical staff TRANSFORMING RESOURCES

Relatively early in the design activity the decisions taken will commit the operation to costs which will be incurred later 100% 0% Percentage of final product cost committed by the design Percentage of design costs incurred Start of the design activity Finish of the design activity

Processdesign Började med Scientific Management och Fords löpande band Konkret utformning av tillverkningsprocessen –syftar till förbättringar av kvalitet, hastighet, tillförlitlighet, flexibilitet och kostnadsläge ”Processorientering” - att organisera hela företaget ’längs’ processerna i stället för kring funktioner eller specialistavdelningar

Processdesign - teman Processdesign 1: Detaljutformning av operationer (job design) Processdesign 2: Volym/varians-förhållandet och val av processform Processdesign 3: Supply network design

Processdesign 1: Detaljutformning av operationer (Job design)

Process design Processes that Design Products and Services Processes that Produce Products and Services Supply Network Design Concept Generation Screening Layout and Flow Preliminary Design Evaluation and Improvement Process Technology Job Design Prototyping and final design

Process mapping symbols derived from “Scientific Management” Operation (an activity that directly adds value) Beginning or end of process Activity Inspection (a check of some sort) Transport (a movement of some thing) Input or Output from the process Delay (a wait, e.g. for materials) Direction of flow Storage (deliberate storage, as opposed to a delay) Decision (exercising discretion) Process mapping symbols derived from “Scientific Management” Process mapping symbols derived from Systems Analysis

Standard sandwich process Customized sandwich old process Raw Materials Assembly Stored Sandwiches Move to Outlets Sell Take Payment Customer Request Customized sandwich old process

The operation of making and selling customized sandwiches Prepare Assemble as required Take payment Bread and Base filling Stored “Bases” Fillings Assemble whole sandwich Customer Request Use standard “base”? Assemble from standard “base” No Yes The operation of making and selling customized sandwiches The outline process of making and selling customized sandwiches The detailed process of assembling customized sandwiches Sandwich materials and customers Customers “assembled” to sandwiches

Customized sandwich new process Assemble whole sandwich Assembly of “sandwich bases” Use standard “base”? Take Payment No Fillings Bread and Base filling Yes Customer Request Assemble from standard “base” Stored “Bases”

‘Two handed’ process chart Left hand Right hand Pick up base plate Insert into fixture Pick up two supports Locate back plate Pick up screws Locate screws Pick up air driver Fasten screws Replace air driver Pick up centre assembly Inspect centre assembly Locate and fix Switch on timer Wait to end test Inspect Transfer grasp Put aside Wait Hold base plate Hold centre assembly

Processdesign 2: Volym/varians-förhållandet styr valet av processform (process technology / layout & flow)

MowRock

Manufacturing: Different process types are appropriate for different Volume-Variety combinations Low Volume High Project High Variety Low Jobbing Batch Mass Continuous

Deviating from the ‘natural’ diagonal on the product-process matrix has consequences for cost and flexibility Project Jobbing Batch Mass Continuous Professional service Service Shop None Less process flexibility than is needed so high cost More process flexibility than is needed so high cost The ‘natural’ line of fit of process to volume/variety characteristics Manufacturing operations process types Service operations process types Variety Volume 9

Project Processes One-off, complex, large scale, high work content “products” Specially made, every one customized Defined start and finish: time, quality and cost objectives Many different skills have to be coordinated Fixed position layout, resources brought to product

Jobbing Processes Very small quantities: “one-offs”, or only a few required Specially made. High variety, low repetition. “Strangers” Skill requirements are usually very broad Skilled jobber, or team of jobbers complete whole product Fixed position or process layout (routing decided by jobbers)

Batch Processes Higher volumes and lower variety than for jobbing Standard products, repeating demand. But can make specials Specialized, narrower skills Set-ups (changeovers) at each stage of production Process or cellular layout, predetermined planned routing

Mass (Line) Processes Higher volumes than Batch Standard, repeat products (“runners”) Low and/or narrow skills No set-ups, or almost instantaneous ones Cell or product layout: a fixed sequence of operations

Continuous Process Extremely high volumes and low variety: often single product Standard, repeat products (“runners”) Highly capital-intensive and automated Few changeovers required Difficult and expensive to start and stop the process Product layout: usually flow along conveyors or pipes

Processdesign 3: Vad vill vi att andra företag skall utföra i produktionsprocessen? (supply network design)

Traditionell logistiksyn

Traditionellt logistikflöde

Supply Chain Management Process design involves designing not only processes internal to the company Designing related processes that take place in other companies is also an issue for operations managers The company is in fact a part of a wider network In the network of companies, meta-processes must be designed (supply chains)

Advantages of taking a network perspective Vertical integration Location of the H ow much of the network operation should the operation seek Where should the to own? operation be located? Taking a network perspective helps businesses address the three key network design decisions. Balance of capacity How should capacity be managed in the long-term?

Total and Immediate Supply Networks “Second tier” Suppliers “First tier” Suppliers “Second tier” Customers “First tier” Customers The Operation Supply side of the network Demand side of the network The Immediate Supply Network The Total Supply Network Internal Supply Networks

Firms in the same industry may configure their supply networks in different ways Home Office Market Corp. Market Suppliers Retailers COMPAQ DELL

Operations performance should be seen as a whole supply chain issue Benefits of looking at the whole supply chain include Puts the operation into its competitive context Helps to identify the key players Shifts emphasis to the long term Sensitizes the operation to macro changes

Direction, extent and balance of vertical integration Should excess capacity be used to supply other companies? Raw Component Assembly material Wholesaler Retai ler maker operation suppliers Narrow process span Wide process span Up stream Downstream v ertical v ertical integration integration

The location of operations Supply-side Demand-side Operation factors factors Labour costs Labour skills Land costs Suitability of site Energy costs Image Transportation costs Convenience for customers Community factors

Outsourcing decisions affect Quality Speed Dependability Flexibility Costs

Relative Costs in a “Do vs Buy” Decision In-source opportunity Out-source indirect supplier profit “allocated” direct market price coordination risk coordination coordination risk risk Buyer Costs