Chapter 2

Product, Process, and Schedule Design

 Introduction
• Before we start developing alternative facility
plans, we should have answers for the
following questions: Answer for the first 5
1. What is to be produced? Questions can be
obtained from:
2. How are the products to be produced? •Product design
3. When are the products to be produced? •Process design
•Schedule design
4. How much of each product will be produced?
5. For how long will the product be produced?
Answer for the last
6. Where will the products be produced? Question might be
obtained from facility
location determination

Chapter 2 2
 Introduction (contd.)
• Product design :
- Product designer determine :
product specification ( dimensions, material, packaging
shape, etc)
• Processes design :
- Processes designer determine :
How the product will be produced
• Schedule design :
- Production planners determine :
1. production quantities
2. the schedule for the equipment
Chapter 2 3
Chapter 2 4
Chapter 2 5
Chapter 2 6
 Introduction (contd.)
• Facility planner is dependent on timely and accurate
input from product, process and schedule designers.

• The need for close coordination among the four groups

7
Chapter 2
 Product
Determination
Product design
Detailed Design

Process
Facility planning identification
design
Processes Process
design selection

Process
Schedule sequencing
design
Chapter 2 8
 • Product design
Product Design • Process design
• Schedule design

1. Determination of a product to be produced

2. Detailed design of the product

1. Product Determination
• Product Determination made by upper level
management and based on input from:
– Marketing
– Manufacturing
– Finance
– Etc.
Chapter 2 9
 • Product design
• Process design
1. Product Determination (contd.) • Schedule design

– uncertainty regarding the mission of the facility being

planned .

- Depending on the type of the products being produced,

business philosophy and such external factors as the
economy the labor availability , competition and The
occupants of the facility may change frequently or may
never change at all

Chapter 2 10
 • Product design
• Process design
• Schedule design
2. Detailed Design

• The product must meet the needs of the

customer.

• The detailed design of the product is influenced

by aesthetics, function, materials and
manufacturing considerations.

• Quality Function Deployment (QFD) - Translation

of the customers’ desires into product design,
and subsequently into parts characteristics,
process plans and production requirements.
Chapter 2 11
 2. Detailed Design
• Benchmarking can also used to identify what the
competition is doing to satisfy the needs of
customers or to exceed customer expectation.
• And also be used to identify best practices from
the most successful organization.
• Through QFD and benchmarking, product
designers can focus their work on customer
needs being marginally or not all .

Chapter 2 12
 • Product design
• Process design
2. Detailed Design (contd.) • Schedule design

 Finally, detailed designs take place:

– CAD designs
– Prototypes
– Assembly designs
– 2D drawings and dimension determinations

 All these can be observed easily in most of the

commercial CAD programs (AutoCAD, ProE,
CATIA etc)

Chapter 2 13
 • Product design
• Process design
2. Detailed Design– Documentation • Schedule design

• Once the product design is completed, usually following

documents are provided for the facilities planning process
as inputs:

– Exploded assembly drawing – omits specifications and

dimensions , shows the relationship or order of assembly of
various parts

– Exploded parts photographs a photographs to show the parts

probably oriented

– Component part drawing – detailed for each component part,

must show dimensions and specification to allow part
fabrication.

Chapter 2 14
 Exploded assembly drawing
Chapter 2 15
 Exploded parts photograph
Chapter 2 16
Use computer aided
design CAD System

Component part drawing

Chapter 2 17
 • Product design
Process Design • Process design
• Schedule design

• Determination of how the product is to be

produced ( process designer or process planner ):

– Which part of the products should be made in-house?

– Which equipment will be used? (for the parts which
will be made in-house)
– Who should do the processing?
– How long will it take to perform the operation?
– Make or buy decision

Production methods are the most fundamental

factor affecting the physical layout
Chapter 2 18
 • Product design
• Process design
Process Design (contd.) • Schedule design

• Within the process design process, we need to

consider following issues: 1. Process identification
1. Process identification 2. Process selection
3. Process sequencing
• Make-or-buy analysis
• Parts identification
2. Process selection
• How the product will be made (operations,
equipment, raw material, etc.)
3. Process sequencing
• How components are put together
Chapter 2 19
 Process Design: 1. Process identification
2. Process selection
1. Process identification
3. Process sequencing
• Make-or-buy decisions:
• Determining the scope of the facility (determining the
processes that are to be included within the facility)
• How are the make-or-buy decisions made?
– Can the item be purchased? If NO: MAKE
– Can we make the item? If NO: BUY
– Is it cheaper for us to make than to buy? If NO: BUY
– Is the capital available so that we can make it? If NO: BUY,
IF Yes: MAKE
• Make-or-buy decisions are managerial decisions requiring
input from finance, industrial engineering, marketing, process
engineering, purchasing, human resources, etc.
Chapter 2 20
 1. Process identification
Process Design:
2. Process selection
1. Process identification (contd.) 3. Process sequencing
• Advantages of outsourcing:
– Minimize your capital investment
– Free machines or equipments
– Hazards/ problems
– Concentrate on Core competence

• Advantages of in-sourcing:
– To retain control over the design, quality,
reliability and delivery schedules.
– To avoid increase in supplier price
Chapter 2 21
 Process Design: 1. Process identification
2. Process selection
1. Process identification (contd.)
3. Process sequencing

• After the make or buy decisions have been made, the list of
items to be made and the items to be purchased.
• The listing often takes the form of a parts list or a bill of
materials (BOM). A parts list includes at least the following
1. Part number
2. Part name
3. Number of parts per product
4. Drawing number
5. Material
6. Size (Dimensions)
7. Make or buy

Chapter 2 22
Bill of Material (BOM) for an Air flow regulator

Chapter 2 23
Chapter 2 24
 1. Process identification
Process Design: 2. Process selection
2. Process selection 3. Process sequencing

• After determining “in house” parts

decisions are needed as to: how the
products will be made
Such decisions are based on:
– previous experiences
– related requirements ( shape)
– available equipment
– production rates
– future expectations.
Chapter 2 25
 1. Process identification
Process Design:
2. Process selection
2. Process selection (contd.) 3. Process sequencing

• Process selection steps:

1. Define the elemental operations
2. Identify alternative processes for each operation
– Manual vs. automated
3. Analyze the alternative processes
– Consider equipment utilization
4. Evaluate the processes
– Economics
– Flexibility
– Reliability
– Maintainability
– Safety
5. Select the process
Chapter 2 26
 Process Design: 1. Process identification
2. Process selection
2. Process selection (contd.)
3. Process sequencing

• Process identification can be done manually or with a

computer.
• With a computer it is referred to as Computer Aided Process
Planning (CAPP).
• Two general CAPP:
– Variant: call up standard plans and modify
– Generative: create a new plan from scratch (do not use
existing plans).

• Outputs are processes, equipment, and raw materials

required for the in-house production of products, also called
a route sheet.

Chapter 2 27
 Route sheet
• A route sheet is a listing of the production
operations and their sequence required to
make a given part.
• It also lists the equipment and special tooling
that is required.

Chapter 2 28
 Route sheet

Chapter 2 29
 Rout sheet Data Requirements

Chapter 2 30
 Process Design: 1. Process identification
2. Process selection
3. Process sequencing
3. Process sequencing
• The method of assembling the product.
• Assembly chart
– shows how the components are combined
• Operation process chart
– Gives an overview of the flow within the facility
– A combination of route sheets and assembly
charts
• Precedence diagram
– establishes precedence relationships
Chapter 2 31
 Process Design: 1. Process identification
2. Process selection
3. Process sequencing
3. Process sequencing

• Assembly chart:
• Assembly chart shows the sequence of
operations in putting the product together.
• The easiest method of constructing an
assembly chart is to begin with the
completed product and trace the product
disassembly back to its basic components.

• See figure 2.11

Chapter 2 32
Assembly chart

This was identified in

route sheet already

Assemblies

Inspection

Chapter 2 33
 Process Design: 1. Process identification
2. Process selection
3. Process sequencing
3. Process sequencing

• Operation process chart:

• Although route sheets provide information on
production methods and assembly charts
indicate how components are combined, neither
provides an overall understanding of the flow
within the facility.
• This is accomplished with the operation process
chart.
• See figure 2.12
Chapter 2 34
 Operation
process chart
Chapter 2 35
 Process Design: 1. Process identification
2. Process selection
3. Process sequencing
3. Process sequencing

• Precedence diagram:
• A second viewpoint (from graph and network
theory) is to interpret the charts as network
representations, or more accurately, tree
representations of a production process.
• A variation of the network viewpoint is to
treat the assembly chart and the operations
process chart as special cases of a more
general graphical model, the precedence
diagram.
Chapter 2 36
Precedence Diagram
part#
•In the operation
process charts, it is not
clear if two machining
operations have any
dependency

•Observe the part#3254

Operations 0204 and
0304 can be done at the
same time
•Yet, the operation 0104
should be completed
before both 0204 and
0304

•We cannot observe this

information in operation
process charts
Chapter 2 37
 • Product design

Schedule Design • Process design

• Schedule design

• Schedule design decisions provide answers to

questions involving:
 how much to produce?
 when to produce?
 How long will the products be produced?
• Production quantity decisions are referred to
as lot size decisions

• Determining when to produce is referred to as

production scheduling.

Chapter 2 38
 • Product design
• Process design
Schedule Design (contd.) • Schedule design
• We design facilities for major parts and
operations

• What do we need to know to start designing

our facilities:
– Number of products to be produced
– Number of machines required
– Number of employees required
– Sequence of operations
– Relationships between departments
 • Product design
• Process design
Impact of Schedule Design • Schedule design

1. Machine selection 6. Storage equipment

2. Number of machines 7. Material handling equipment
3. Number of shifts 8. Personnel requirements
4. Number of employees 9. Storage policies
10. Unit load design
5. Space requirements
11. Building size, and so on.

Chapter 2 40
 • Product design
• Process design
Schedule Design (Marketing) • Schedule design

• Marketing department provides a research

function that analyzes what the world’s
consumer wants. Some of the information that
marketing provides is:
– Production volume, how many can we sell?
– Seasonality, summer or winter product
– Trends
• Note the Pareto effect that often 85% of the
production volume comes from 15% of the
product. So focus on the high volume products
but don’t completely ignore the low volume
ones.
Chapter 2 41
 Schedule Design (Marketing) • Product design
• Process design
• Schedule design

More general items Items that are

produced everyday: produced (may be) by special orders etc.:
Mass production area Job shop area
 • Product design
Schedule Design (Marketing) • Schedule design
• Process design

• Valuable information that should be obtained

from marketing and used by a facilities
planner. See table 2.4 (on next slide)
– Who are the consumers?
– Where are the consumers?
– Why will the consumer purchase the product?
– Where will the consumer purchase the product?
– What is the trend in product change?

Chapter 2 43
Valuable information that should be obtained from marketing and used by
a facilities planner
 • Product design
Schedule Design • Process design
• Schedule design
(Process Requirements)
• Process design determines the specific
equipment types required to produce the
product.
• Schedule design determines the number of
each equipment type.
• Specification of process requirements
typically occurs in 3 phases.
1. Qty of components to be produced including scrap
2. Equipment requirements for each operation
3. Combine the operation requirements
Chapter 2 45
 Schedule Design (Process
Requirements)
Scrap estimate
• Scarp is the material waste generated in the
manufacturing process due to geometric or
quality considerations.
• The amount of scrap depends on how tight
the tolerance is, automated process or not,
quality, certified suppliers, and the grade of
material.
• Scrape estimates: how many units of the
product we need to make.
Chapter 2 46
Schedule Design (Process Requirements
Scrap estimate (contd.)

input = output + % of scrap * input

dk =percentage of scrap made at operation k
Ok =desired output of non-defective items from operation k
Ik =the production input to operation k

Ik= Ok+ dk Ik
OR
Ok = Ik (1-dk)
Ik= Ok/1- dk
Chapter 2 47
Schedule Design (Process Requirements
Scrap estimate (contd.)

The expected number of units to start

production for a part with n operations is:

I1=On/ (1-d1) (1-d2)… (1-dn)

Chapter 2 48
Schedule Design (Process Requirements)
• Example: Scrap estimate (contd.)
– Market estimate of 97,000 components
– 3 operations: turning, milling and drilling
– Scrap estimates: d1=0.04, d2=0.01 and d3=0.03
– Input to the production?
– Production quantity scheduled for each
operation?
FinalOutpu t
Input 
(1  d 1)(1  d 2)(1  d 3)

97,000
Input   105,219
(1  0.04)(1  0.01)(1  0.03)
Chapter 2 50
Schedule Design (Process Requirements)
Scrap estimate with Rework

FinalOutpu t
Input 
(1  d 3)(1  d 1)  d 1(1  d 2)

• We assume 100 % inspection at each operation, including the rework

operation
• The end product requirement is 100,000 unit, given
the reworked is performed in assumption. Calculate
the number of units required for processing at the
first operation, assume the defective rates are .03,
.04 , .02

100,000
Input   103,280unit
(1  .02)(1  .03)  .03(1  .04)

Chapter 2 52
Schedule Design (Process Requirements)
Equipment fraction
• Total required processing time for equipment
divided by the time available per machine.
• Required processing time
=Standard time per unit * Number of units
• Equation F
SQ
EHR
F = number of machines required per shift
S = standard time per unit produced (obtained from route sheet)
Q = number of units to be produced per shift
E = actual performance, expressed as percent of standard time
H = amount of time available per machine
R = reliability of machine, expresses as percent of up time
Chapter 2 53
 Schedule Design (Process
Requirements)
Equipment fraction (contd.)
• A machined part has a standard machinery time of 2.8 min per part on a milling
machine. During an 8-hr shift 200 unites are to be produced. Of the 8 hours
available for the production, the milling machine will be operational 80% of the
time. During the time the machine is operational, parts are produced at a rate
equal to 95% of the standard rate.
• S=2.8 min, Q=200 units, H=480min, E=0.95 and R=0.8
• How many milling machines are required?

SQ 2.8(200)
F   1.535
EHR 0.95(480)(0.80)

We need 1.535 machines per shift.

Chapter 2 54
 Schedule Design (Process
Requirements)
Equipment fraction

F can also be affected by:

• Number of shifts
• Set-up times
• Degree of flexibility- small lots or large lots
• Layout type-process or product
• Total productive maintenance

Chapter 2 55
 Management Tools

Chapter 2 56
 Management Tools
• Once we have the product, process, and
scheduling information we need to organize
the information and generate and evaluate
layout, material handling, and storage
alternatives.

• In this process it may be helpful to apply the

following seven management tools to facilities
planning and design: (read in text book)
Chapter 2 57
 Management Tools
1. Affinity diagram
Brainstorm ideas
Gather the ideas into general headings or topics
2. Interrelationship diagraph
Show the relationships between headings
Directed arcs
Help to show the order of doing things
3. Tree diagram
Gives more detail about the various activites
that need to be done
Chapter 2 58
 Management Tools
4. Matrix diagram
Can show who is responsible for doing what task
5. Contingency diagram
Plan for unfamiliar tasks
6. Activity network diagram
Basically a Gantt chart or PERT CPM type
information
Who does what, when.
7. Prioritization matrix
Chapter 2 59
Evaluate design alternatives
 Brainstorm ideas
Affinity diagram Gather the ideas into general
headings or topics
Interrelationship diagraph

Show the relationships between

headings
Directed arcs
Help to show the order of doing
things
Gives more detail about the
various activities that need to be Tree Diagram
done
Matrix diagram

Can show who is responsible for

doing what task
Basically a Gantt chart or PERT Activity network diagram
CPM type information
Who does what, when.
 Prioritization matrix
Evaluate design alternatives
Prioritization matrix
Prioritization matrix