INTRODUCTION TO
OPERATIONAL
MANAGEMENT
Lesson 3 – PROCESS DESIGN AND ANALYSIS
SCIENTIA ET
PRATIQUE
COURSE AGENDA
Your Journey in Operations
Management Class 3 – Process Design and Analysis
Class 6 – Project Management
Class 1- Introduction • Introduction to Project Management
• Introduction to Process Design • Project Life Cycle
• Overview of Operations Management • Process Types • Project Planning
• Why Operations Management Matters • Lean Manufacturing • Gantt Charts and CPM/PERT
• Definitions and Core Concepts • Six Sigma • Resource Allocation
• Timeline of Operations Management • Bottleneck Analysis • Risk Management
• Aligning Operations with Business • Process Improvement • Project Execution: Monitoring and
Strategy Controlling
Class 2 Operations Strategy Class 4 – Supply Chain Management Class 5- Quality Management
• Introduction to Quality Management
• Cost, Quality, Flexibility, and Delivery • Introduction to Supply Chain
• Total Quality Management (TQM)
• Productivity: Measures and Improvements Management
• Quality Tools
• Sustainability in Operations • Supply Chain Components
• ISO Standards
• Technology in Operations • Inventory Management
• Continuous Improvement
• Capacity Planning • Demand Forecasting
• Quality Audits
• Supply Chain Integration
• Logistics Management
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LAST LESSON HIGHLIGHTS
Effective operations management is vital for the success and
competitiveness of any business.
By focusing on key aspects such as cost, quality, flexibility, and delivery,
companies can optimize their processes and improve their market
position.
Productivity measurement and improvement are crucial for maintaining
efficiency, while sustainability practices ensure long-term viability and
compliance with environmental regulations.
The role of technology in operations is transformative, driving
advancements in efficiency, quality, and customer satisfaction.
Finally, capacity planning is essential for aligning production capabilities
with demand, enabling businesses to respond effectively to market
changes and customer needs.
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INTRODUCTION TO PROCESS DESIGN
What is Process Design?
Process design is a fundamental aspect of operations management that involves planning and structuring
the sequence of steps and activities necessary to create a product or deliver a service.
Key Elements of Process Design
1. Workflow Design: Determining the sequence of operations, the flow of materials, and the movement
of information. This includes creating process maps and flowcharts to visualize the steps involved.
2. Technology and Equipment: Selecting the appropriate machinery, tools, and technologies that will be
used in the production process. This decision impacts efficiency, quality, and scalability.
3. Workforce Organization: Defining the roles and responsibilities of employees involved in the process.
This includes determining staffing levels, skill requirements, and training needs.
4. Facility Layout: Designing the physical arrangement of resources in the production facility. This
includes layout planning to optimize space utilization, minimize movement, and enhance safety.
5. Quality Control: Implementing measures to ensure that products or services meet specified quality
standards. This involves setting up inspection points, testing procedures, and feedback mechanisms.
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INTRODUCTION TO PROCESS DESIGN
Importance of Process Design
Effective process design is crucial for achieving
operational excellence. It directly influences
the efficiency, flexibility, and responsiveness of
a business.
Well-designed processes can lead to cost
savings, improved quality, faster production
times, and higher customer satisfaction.
Conversely, poorly designed processes can
result in inefficiencies, higher costs, and quality
issues.
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PROCESS TYPES: JOB SHOP, BATCH, ASSEMBLY LINE,
CONTINUOUS
Job Shop
A job shop is a type of manufacturing process that handles small batches of custom products. It is characterized by a high
degree of flexibility and the ability to produce a wide variety of products. Job shops typically use general-purpose
machines and highly skilled labor to accommodate the custom nature of the products.
• Advantages: High flexibility, ability to produce customized products, and adaptability to changes in product design.
• Disadvantages: Higher production costs, longer lead times, and complex scheduling.
Batch Process
Batch processing involves producing goods in batches or groups. Each batch goes through the production process before
the next one begins. This process type is common in industries like pharmaceuticals, food processing, and paint
manufacturing.
• Advantages: Economies of scale, better utilization of equipment, and lower production costs compared to job shops.
• Disadvantages: Potential for higher inventory levels, downtime between batches, and less flexibility compared to job
shops.
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PROCESS TYPES: JOB SHOP, BATCH, ASSEMBLY LINE,
CONTINUOUS
Assembly Line
An assembly line is a production process in which products move sequentially through a series of
workstations where specific tasks are performed. It is designed for mass production of standardized
products, such as automobiles and consumer electronics.
• Advantages: High efficiency, low production costs, and consistent quality.
• Disadvantages: Low flexibility, high initial setup costs, and susceptibility to disruptions if one
workstation fails.
Continuous Process
Continuous processing is used for high-volume, homogeneous products that are produced continuously.
Industries such as oil refining, chemical production, and power generation commonly use continuous
processes.
• Advantages: High efficiency, consistent product quality, and economies of scale.
• Disadvantages: High initial investment, limited flexibility, and complex control systems.
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LEAN MANUFACTURING: PRINCIPLES AND APPLICATIONS
Principles of Lean Manufacturing
Lean manufacturing is a systematic approach to minimizing waste and maximizing value in the production
process. It is based on five core principles:
1. Value: Defining value from the customer's perspective and ensuring that all activities contribute to
creating this value.
2. Value Stream: Mapping the entire value stream to identify and eliminate wasteful steps.
3. Flow: Ensuring a smooth and uninterrupted flow of materials, information, and products through the
production process.
4. Pull: Producing only what is needed by the customer, using a just-in-time (JIT) approach to reduce
inventory levels.
5. Perfection: Continuously improving processes to achieve perfection by eliminating waste and increasing
efficiency.
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LEAN MANUFACTURING: PRINCIPLES AND APPLICATIONS
Applications of Lean Manufacturing
Lean manufacturing techniques can be applied in various industries to improve operational efficiency and
reduce costs. Key lean tools and practices include:
1. 5S: A workplace organization method that stands for Sort, Set in Order, Shine, Standardize, and Sustain.
It helps create a clean, organized, and efficient work environment.
2. Kanban: A visual scheduling system that controls the flow of work and materials based on actual
demand, preventing overproduction and reducing inventory levels.
3. Kaizen: A philosophy of continuous improvement that involves all employees in identifying and
implementing incremental changes to improve processes.
4. Value Stream Mapping (VSM): A tool used to visualize and analyze the flow of materials and
information, identifying areas for improvement.
5. Total Productive Maintenance (TPM): A proactive maintenance approach that involves all employees in
maintaining and improving equipment to prevent downtime and defects.
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SIX SIGMA: METHODOLOGIES AND BENEFITS
Methodologies of Six Sigma
Six Sigma is a data-driven methodology for
improving the quality of processes by
identifying and eliminating defects and
variability.
It uses a structured approach known as DMAIC
(Define, Measure, Analyze, Improve, Control)
for existing processes and DMADV (Define,
Measure, Analyze, Design, Verify) for new
processes.
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SIX SIGMA: METHODOLOGIES AND BENEFITS
DMAIC:
• Define: Identify the problem, set objectives, and define the scope of the project.
• Measure: Collect data to understand current performance and establish a baseline.
• Analyze: Analyze the data to identify root causes of defects and variability.
• Improve: Implement solutions to address root causes and improve the process.
• Control: Monitor the process to ensure that improvements are sustained over time.
DMADV:
• Define: Define the goals and objectives for the new process.
• Measure: Measure and define customer needs and specifications.
• Analyze: Analyze options for meeting customer needs.
• Design: Design the new process to meet customer specifications.
• Verify: Verify that the new process performs as intended.
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SIX SIGMA: METHODOLOGIES AND BENEFITS
Benefits of Six Sigma
Implementing Six Sigma can yield significant benefits for organizations, including:
1. Improved Quality: Reducing defects and variability leads to higher quality products and
services.
2. Cost Savings: Eliminating waste and inefficiencies results in cost reductions and increased
profitability.
3. Customer Satisfaction: Higher quality and consistency improve customer satisfaction and
loyalty.
4. Process Efficiency: Streamlined processes enhance efficiency and productivity.
5. Employee Engagement: Involving employees in Six Sigma projects fosters a culture of
continuous improvement and collaboration.
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BOTTLENECK ANALYSIS: IDENTIFICATION AND
MANAGEMENT
Identification of Bottlenecks
Bottlenecks are points in a process where the flow of work is restricted, leading to delays and
inefficiencies. Identifying bottlenecks involves analyzing the entire process to find stages where
work accumulates or slows down. Techniques for identifying bottlenecks include:
1. Process Mapping: Creating a visual representation of the workflow to highlight stages with
slowdowns or backlogs.
2. Flow Analysis: Measuring the time taken at each stage of the process to identify where delays
occur.
3. Capacity Analysis: Comparing the capacity of each process stage to the demand placed on it to
identify stages operating at or near full capacity.
4. Queue Analysis: Observing the queues or waiting times at different stages to identify where
work is piling up.
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BOTTLENECK ANALYSIS: IDENTIFICATION AND
MANAGEMENT
Management of Bottlenecks
Managing bottlenecks involves implementing strategies to alleviate the restrictions and improve
process flow. Key approaches include:
1. Resource Allocation: Allocating additional resources, such as manpower or machinery, to the
bottleneck stage to increase its capacity.
2. Process Redesign: Redesigning the process to eliminate or reduce the impact of bottlenecks.
This may involve rearranging workflow, automating tasks, or simplifying procedures.
3. Load Balancing: Distributing work more evenly across the process stages to prevent any single
stage from becoming overloaded.
4. Prioritization: Prioritizing tasks or orders to ensure that critical work passes through the
bottleneck stage more quickly.
5. Continuous Improvement: Continuously monitoring and analyzing the process to identify and
address new bottlenecks as they arise.
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PROCESS IMPROVEMENT: TECHNIQUES AND TOOLS
Techniques for Process Improvement
Process improvement involves systematically enhancing processes to increase efficiency, quality,
and responsiveness. Several techniques are commonly used:
1. Lean Manufacturing: Focuses on eliminating waste and optimizing flow to create more value
with fewer resources.
2. Six Sigma: Uses statistical analysis to identify and reduce variability and defects in processes.
3. Kaizen: Emphasizes continuous, incremental improvements involving all employees.
4. Total Quality Management (TQM): A comprehensive approach to improving quality at all levels
of the organization through continuous improvement and customer focus.
5. Business Process Reengineering (BPR): Involves radically redesigning processes to achieve
dramatic improvements in performance.
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PROCESS IMPROVEMENT: TECHNIQUES AND TOOLS
Tools for Process Improvement
Various tools are used to support process improvement initiatives:
1. Flowcharts: Visual representations of the steps in a process, used to identify inefficiencies and
areas for improvement.
2. Pareto Charts: Bar charts that highlight the most significant factors contributing to a problem,
based on the Pareto principle (80/20 rule).
3. Fishbone Diagrams: Also known as cause-and-effect diagrams, these help identify root causes
of problems.
4. Control Charts: Used to monitor process performance and variation over time, helping identify
trends and deviations.
5. Value Stream Mapping (VSM): A tool for visualizing the flow of materials and information
through the process, identifying waste and opportunities for improvement.
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CLASS MAIN TAKE-AWAYS
In conclusion, understanding and applying principles of process design,
recognizing different process types, and implementing Lean and Six
Sigma methodologies are crucial for optimizing operations.
Bottleneck analysis and effective management further enhance process
efficiency, while continuous improvement techniques and tools drive
long-term operational excellence.
Through these comprehensive approaches, businesses can achieve higher
productivity, quality, and customer satisfaction.
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SCIENTIA ET
PRATIQUE
