PROCESS

PLANNING
 Process Planning

It is the development of goals , strategies, task lists

and schedules required to achieve the objectives of a
business.

Is a fundamental function of management and

should result in the best possible degree of need
satisfaction given the resources available.
Process Planning begins with
Product Selection
Product Selection
• Is a strategic decision i.e. long term decisions
• Decisions like technology to be used, capacity of the
production system, location of the facility,
organization of the production function, planning,
and control systems depend on this
• Involves other functional areas like marketing,
research and development and the top management.
Process Planning begins with
Product Selection
• The process of selecting a product is highly
integrative.
• Product function, cost, quality and reliability are
other inputs to product selection.
 Process Planning begins with
Product Selection
Organizations try to get synergistic results by exploiting
the following factors:
1. Familiarity with similar products/services
2. Familiarity with the same or similar production
process
3. Familiarity with the same or similar market
segments
4. Familiarity with the same or similar distribution
channels
 Product Development
 Development efforts improves the performance of the
product, adds options and additional features
 Also adds variants to the basic product
 Development starts after research has established an
idea that has been examined, evaluated and refined
 Product Design
 Includes dimensional specifications, specifications
regarding capacity, horse power, speed, color etc.
 Product Variety
There are two distinctly different priorities that can
affect the design of a product or service.

1. Standardization
2. Modularization
 Product Variety

ADVANTAGES OF STANDARDIZATION
1. Simplifies operational procedures
2. Raw materials can be purchased in bulk at reduced price
3. Enables steady flow of materials through work centres
4. Reduces the number of production set-ups
5. Reduces the total inventory of raw materials, work-in-process,
and finished goods
6. Provides economies of scales due to high volume of production
 Product Variety

ADVANTAGES OF MODULARIZATION
1. Used to obtain variety and yet hold down the cost
2. Modules are interchangeable and each different combination
gives a new variety of the product
3. Design simplification without compromise on quality can
reduce production costs
Key Elements in Product Design
 Function
 Cost
 Quality
 Reliability
 Appearance
 Environmental impact
 Process - Meaning
• Processes are the essence of operations management

• They transform inputs into outputs

• More than products or technologies, the ability to do things well-

processes- constitutes a firm’s competitive advantage.
 Process Planning - Definition
• Planning in which the conditions necessary for transforming
material from one state to another are determined
• It determines how a work is to be done
• It converts designs into workable instructions for manufacture,
along with associated decisions on component purchase or
fabrication and process and equipment selection
 TYPE OF PROCESSES
• Projects: It is one-of-a kind production of a product to customer
order
• Batch Production: Batch production systems process many
different jobs through the system in groups (or batches)
• Mass Production(Line Processes): It produces large volumes of a
standard product for a mass market
• Continuous Production: They are used for very high volume
commodity products
 PROCESS PLANNING
• Process Planning is a key element in project management that
focuses on selecting resources for use in the execution and
completion of a project.

• In a manufacturing setting, this aspect of planning also includes

establishing the general sequence of steps that begin with the
acquisition of materials and end with the creation of a finished
product.
 PROCESS PLANNING

• Make-or-buy decisions

• Process Selection

• Capacity Planning

• Assembly Chart
 Make-or-Buy Decisions
• A firm’s Make-or-Buy choices should be based on the following
considerations:

1. Cost (fixed cost+variable cost) make = Cost (fixed cost+variable

cost)buy
2. Available Capacity
3. Quality considerations
4. Speed
5. Reliability
6. Expertise
 CAPACITY PLANNING
– Is the process of determining the production capacity needed by an
organization to meet the demands for its products
– a discrepancy between the capacity of an organization and the
demands of its customers results in unfulfilled customers
 PROCESS ANALYSIS
– It is the systematic examination of all aspects od a process to improve
its operation
– a basic tool for process analysis is the flowchart

FLOWCHART can be used to:

- Define and analyze processes
- Build a step-by-step picture of the process for analysis, discussion or
communication
- Define, standardize or find areas for improvement in a process
 ASSEMBLY CHART
– Gives pictorially step by step assembly sequence and what items to
be assembled until finished product is produced
– It gives a macro view of how materials and sub assembly are
united to form a finished product
– It is a starting point to understand the factory layout needs,
equipment needs, training needs for any company to deliver a
finished product or service
 OPERATION PROCESS CHART
Represents the sequence of steps or tasks needed to complete a
product and details how to build a product at each process. It
includes what materials are needed, type of processes, product flow,
time taken to process product through each step of flow and thus
serves as a basis for examining and possibly improving the way the
operation is carried out.
 PROCESS RE-ENGINEERING
Process Re-engineering is a structured approach to process flow analysis
used when major business changes are required as a result of:
 Major new products
 Quality improvement needed
 Better competitors
 Inadequate performance
In short, it is the total redesign of a process.