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INDUSTRIAL

ENGINEERING
BJTM 3023

PROCESS ENGINEERING

LECTURE SCOPE

What is Process Engineering?


Process Engineering 6 step
sequence.

What is Process Engineering?

Process engineering is also called:


manufacturing planning, production
engineering, process planning, material
processing and machine routing.
Responsible of developing a plan for the
manufacture of the new or modified product.

What is Process Engineering?

Concern with the design of


the actual process to be
used in the manufacture of
the product

Process Engineering 6 step


sequence

Defining the product structure and


specification
Assessing each components
manufacturability
Process selection
Cost evaluation
Determining the sequence in which the
operation are to be performed
Documenting the process

Defining the product structure


and specification

1. Defining the product


structure and specification
Product structure are often shown in a
hierarchical chart that shows all of the
subassemblies, sub-subassemblies,
components and raw materials that
comprise the product.

1. Defining the product


structure and specification
Product structure

Shows sequence in
which components
are assembled
How and when the
subassemblies are
put together to
make the final
product.

Product

EXERCISE 1

Given the following


diagram for a
product, determine
the quantity of each
component
required to
assemble one unit
of the finished
product.

EXERCISE 2

Draw a tree
diagram for the
stapler:

ITEM

COMPONENTS

Stapler

Top assembly,
base assembly

Top assembly
Cover, spring,
slide assembly
Cover
spring
Slide assembly Slide, spring
Slide
Spring

Base assembly Base, strike


plate, rubber
Base
pad (2)
Strike plate
Rubber pad (2)

Defining the product structure


and specification

Bills of Materials (BOM)

List of all components needed to produce


the product
Contains:

Number and name of all the parts


The source of each part (purchase or
manufacture)
Number and name of the completed product

Example of bill of materials

Assessing each components


manufacturability

2. Assessing each
components manufacturability
Manufacturability:
A measure of the relative ease or
difficulty of producing the item within
tolerance
The tighter the tolerances, in general, the more
expensive the item will be to produce.

Process Selection

A process is a method of doing


something, generally involving a
number of steps or operations.
Process design is the developing
and designing of the steps.

Factors influencing process


design

Product design and quality level.


Demand patterns and flexibility
needed.
Quantity/capacity considerations.
Customer involvement.
Make or buy decision

PRODUCT
DESIGN
what to
produce?

CUSTOMER

PROCESS
DESIGN
how to
produce?

CAPACITY
How much to
produce?

Make or buy decision

Reasons to make in-house

Can produce for less cost than a supplier


To utilise existing equipment to the fullest
extend
To keep confidential processes within
control of the firm.
To maintain quality.
To maintain workforce.

Make or buy decision

Reasons to buy out

Requires less capital investment.


Uses specialised expertise of suppliers.
Allows the firm to concentrate on its own
area of specialisation.
Provides known and competitive prices.

Make or buy decision

Cost
Capacity
Quality
Speed
Expertise

Process Selection
Process types:
Job shop
Batch
Mass production
Continuous production
Project

Low

Project

Intermittent
operations

(customer job shop;


customer tailoring;
construction)

Batch process
(education classes;
bakery; printing shop)

Line process

Repetitive
operations

(assembly lines;
cafeteria)

Continuous process
(oil refinery; water
treatment plant)

High
Low

High

BATCH

MASS

CONTINUOUS

PROJECT

Types of
product

Made-to-order
(customised)

Made-to-stock
(standardised)

Commodity

Unique

Type of
customer

Few individual
customers

Mass market

Mass market

One-at-a-time

Fluctuates

Stable

Very stable

Infrequent

Low to medium

High

Very high

Very low

No. of different
products

Many, varied

Few

Very few

Infinite variety

Production
system

Discrete, job
shop

Repetitive,
assembly line

Long-term project

Equipment

General-purpose

Special purpose

Worker skills

Wide range of
skills
Flexibility, quality

Limited range of
skills
Efficiency, speed,
low cost

Continuous,
process
industries
Highly
automated
Equipment
monitors
Highly efficient,
large capacity,
ease of control

Disadvantages

Costly, slow,
difficult to
manage
Machine shop,
bakeries,
education

Difficult to
change, far-reach
error, limited
variety
Steel, paper,
sugar, supplying
electricity to
homes and
businesses

Non-repetitive,
small customer
base

Examples

Capital
investment, lack
of
responsiveness
Automobiles,
televisions, fast
food

Product
demand
Demand volume

Advantages

Varied
Experts,
craftspersons
Custom work,
latest technology

Construction,
shipbuilding

DISCUSSION 1
What kind of process is used for making
each of the following products?
1.
2.
3.
4.
5.
6.

Soft drinks
Wedding invitations
Automobiles
Paper
Custom homes
Motorcycles

Cost evaluation

4. Evaluating the cost of each


process

Cost evaluation

Fixed costs

Not vary with the volume produced


Eg: purchase costs of machinery and
tools, setup costs.

Cost evaluation

Variable costs

Costs that vary with the quantity


produced.
Eg: direct labour, direct material.

Total cost = Fixed cost + (Variable cost per


unit)(number of units produced)
Then,
TC = FC + VCx
unit cost = Total cost
= TC
number of units produced
x

Example
A process designer has a choice of
two methods for making an item.
Method A has a fixed cost of RM2000
for tooling and jigs and a variable
costs of RM3 per unit. Method B
requires a special machine costing
RM20 000 and the variable costs are
RM1 per unit.

RM2000 RM20 000


Variable unit cost
3
1
Total cost
2000 + 3x
20 000 + 1x
Unit (average cost) 2000 + 3x
20 000 + 1x
x
x
Fixed cost

Volume
(units)

Total cost (RM

Unit cost (RM)

Method A

Method B

Method A

Method B

2000

8000

22 000

4.00

11.00

4000

14 000

24 000

3.50

6.00

6000

20 000

26 000

3.33

4.33

8000

26 000

28 000

3.25

3.50

10 000

32 000

30 000

3.20

3.00

12 000

38 000

32 000

3.17

2.97

14 000

44 000

34 000

3.14

2.43

16 000

50 000

36 000

3.13

2.25

Method A

Cost
(RM1000)

Method B

Cost equalisation
point

Volume (1000 units)

Evaluating the cost of each


process
Activity/
Function

Batch

Cost
estimation

Difficult to
routine

Routine

Routine

Complex

Cost
unit

High to
moderate

Low

Low

Very high

Fixed costs

Low to
moderate

High

Very high

Varied

Variable
costs

High to
moderate

Low

Very low

High

Marketing

Promote
capabilities,
semistandard
goods and
services

Promote
standardised
goods and
services

Promote
standardised
goods and
services

Promote
capabilities

per

Mass

Continuous

Project

Determining the sequence of


operations

5. Determining the sequence


of operations

Operations that will be used to


transform the material into its
desired final shape.

The sequence usually developed


based on:

Minimization of part handling (shortest


path from machine to machine)
Assuring that no succeeding operation
adversely affects previous operations

Process documentation

Schematic of a process
ENVIRONMENT
Internal
External
INPUT

PROCESS

OUTPUT

(Suppliers)

(work steps)

(Customers)

COMPONENTS
People
Methods
Equipment

Documenting the process

Flow chart

A diagram that traces the flow of information,


customers, equipment, or materials through the
various steps of a process.

Process chart

An organized way of documenting all of the


activities performed by a person, by a machine,
at a workstation, with a customer or on
materials.

Flow charts
Tasks or operations

Storage areas or queues

Decision points

Flow of material/ customers

Flowchart of the Sales Process for


a Consulting Company

Figure 4.3

Flowchart of
Telephone
Ordering
Process

Figure 4.16

Process Charts
Process:
admission
Subject:
Beginning:
Ending:

Summary

Emergency room
Ankle injury patient
Enter emergency room
Leave hospital
Insert Step
Append Step
Remove Step

Figure 4.8

Step
no.

Time
(min)

Distance
(ft)

1
2
3
4
5

0.50
10.0
0.75
3.00
0.75

15
40
40

6
7
8
9
10

1.00
1.00
4.00
5.00
2.00

60
200

11
12
13
14
15

3.00
2.00
3.00
2.00
1.00
4.00
2.00
4.00
1.00

200
60
180
20

16
17
18
19

Activity
Operation
Transport
Inspect
Delay
Store

Number
of steps

Time
(min)

Distance
(ft)

5
9
2
3

23
11
8
8

815

Step description
X

Enter emergency room, approach patient window


Sit down and fill out patient history
Nurse escorts patient to ER triage room
Nurse inspects injury
Return to waiting room

X
X
X
X
X
X

Wait for available bed


Go to ER bed
Wait for doctor
Doctor inspects injury and questions patient
Nurse takes patient to radiology

Technician x-rays patient


Return to bed in ER
Wait for doctor to return
Doctor provides diagnosis and advice
Return to emergency entrance area

X
X
X
X
X
X
X
X
X
X
X

Check out
Walk to pharmacy
Pick up prescription
Leave the building

Process chart

Operation

Changes, created or adds something.

Transportation

Moves the studys subject from one place


to another
Can be a person, a material, a tool or a
piece of equipment.

Process chart

Inspection

Delay

Checks or verifies something but does


not change it.
Occurs when the subject is held up
awaiting further action.

Storage

Occurs when something is put away until


a later time.

Thankyou

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