OPERATIONS MANAGEMENT
CHECK POINT 66: PROCESS DESIGN
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OPERATIONS MANAGEMENT
CHECK POINT 66: PROCESS DESIGN
Please Select Any Topic In Check Point 66 Below And Click. |
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DO I NEED TO KNOW THIS CHECK POINT?
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WELCOME TO CHECK POINT 66 |
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HOW CAN YOU BENEFIT FROM CHECK POINT 66? |
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The main purpose of this check point is to provide you and your management team with detailed information about the Process Design and how to apply this information to maximize your company's performance. |
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In this check point you will learn: |
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• About the purpose of process design.
• About lean operational guidelines for process design.
• About the preliminary process design.
• About product explosion chart, parts list and bill of materials.
• About preliminary manufacturing requirements.
• How to prepare a plant requirements report?
• About five types of activities in a manufacturing environment.
• About advantages of a process flow chart.
• How to prepare a process flow chart?
• How to prepare a route sheet, a product assembly chart... and much more. |
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LEAN MANAGEMENT GUIDELINES FOR CHECK POINT 66 |
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You and your management team should become familiar with the basic Lean Management principles, guidelines, and tools provided in this program and apply them appropriately to the content of this check point. |
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You and your team should adhere to basic lean management guidelines on a continuous basis: |
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Treat your customers as the most important part of your business. |
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Provide your customers with the best possible value of products and services. |
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Meet your customers' requirements with a positive energy on a timely basis. |
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Provide your customers with consistent and reliable after-sales service. |
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Treat your customers, employees, suppliers, and business associates with genuine respect. |
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Identify your company's operational weaknesses, non-value-added activities, and waste. |
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Implement the process of continuous improvements on organization-wide basis. |
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Eliminate or minimize your company's non-value-added activities and waste. |
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Streamline your company's operational processes and maximize overall flow efficiency. |
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Reduce your company's operational costs in all areas of business activities. |
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Maximize the quality at the source of all operational processes and activities. |
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Ensure regular evaluation of your employees' performance and required level of knowledge.
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Implement fair compensation of your employees based on their overall performance.
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Motivate your partners and employees to adhere to high ethical standards of behavior. |
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Maximize safety for your customers, employees, suppliers, and business associates. |
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Provide opportunities for a continuous professional growth of partners and employees. |
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Pay attention to "how" positive results are achieved and constantly try to improve them. |
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Cultivate long-term relationships with your customers, suppliers, employees, and business associates. |
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1. THE PURPOSE OF PROCESS DESIGN |
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PROCESS DESIGN |
Business owners and operations managers must be familiar with sound principles of process design to succeed in a competitive business environment.
Design of products, services, or projects usually raises several difficult questions. Some of these questions relate to Process Design issues as outlined below. |
QUESTIONS RELATED TO PROCESS DESIGN |
1. |
How will the product be manufactured? |
2. |
How will the service be provided? |
3. |
How will the project be completed? |
4. |
Should the item be manufactured, purchased, or sub-contracted? |
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THE PURPOSE OF PROCESS DESIGN |
The basic purpose of Process Design is to develop an efficient set of procedures for manufacturing goods, providing services, or completing a project. These procedures must take into account your company's financial resources, specific design requirements, operational and manpower capacity, and demand in the marketplace.
Moreover, a successful implementation of process design for products or services in your company depends substantially upon the overall objectives set by the production or operations managers. These objectives should be set in accordance with Lean Operational Guidelines which are discussed next. |
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ADDITIONAL INFORMATION ONLINE |
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2. LEAN OPERATIONAL GUIDELINES FOR PROCESS DESIGN |
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LEAN OPERATIONAL GUIDELINES |
Lean Operational Guidelines related to process design may cover everything within the organization from product or service design to product or service delivery to customers as outlined below. |
LEAN OPERATIONAL GUIDELINES RELATED TO PROCESS DESIGN
Plant Layout:
- • Development of self-contained sub-plants or working cells to handle smaller volumes of products in a cost-effective manner.
- • Maximizing the facility floor and space utilization.
- • Development of "U-type" machine cells based on product layout, assembly, storage, tooling, material purchasing, maintenance, quality, and product and process design requirements.
Plant Automation:
- • Introducing low cost automation for manufacturing and operational processes.
- • Maximizing the use of numerically controlled (NC) machines.
Elimination Of Waste:
- • Elimination of machine-time and equipment waste in manufacturing and operational processes.
- • Elimination of labor and material waste in manufacturing and operational processes.
Operational Capacity Planning And Utilization:
- • Minimizing equipment requirements for manufacturing and operational processes.
- • Balance and synchronization of all activities in manufacturing and operational processes.
- • Optimization of manufacturing and operational cycle periods.
- • Level-loading of plant and machines in the operational facility.
- • Maximizing the flexibility within the operational facility.
- • Reduction of machine set-up and change-over times.
Labor Capacity Planning And Utilization:
- • Minimum employee requirements for manufacturing and operational processes.
- • Labor cost reduction.
- • Cross-training of workers for multiple operations and tasks.
Material Handling Planning And Utilization:
- • Reduction of material traveling time.
- • Reduction of material handling costs.
- • Maximum use of material handling and lifting equipment, and conveyor lines.
- • Use of light signals for material replenishment.
- • Maximum perimeter access for receiving and shipping materials.
- • Decentralized material storage facilities.
- • Use of activity frequency storage zones.
- • Pick-up of components for several production orders.
- • Implementation of Kanban cards.
- • Implementation of standard containers for material handling.
Manufacturing And Operational Processes:
- • Load-leveling and small lot production.
- • Manufacturing or operational lead time reduction.
- • Reduction of production or operational space requirements.
- • Identification and elimination of all non-value added operational activities, e.g. counting, checking, moving parts, preparing documents, packing, re-packing, etc.
Product Assembly:
- • Use of parallel or line assembly lines.
- • Cross-training of assembly workers for different operations.
Quality Of Products, Services And Processes:
- • Total quality of operations, products, and services.
- • Total quality of materials, tools, and equipment.
- • Reduction of product or service defects.
Tools And Fixtures:
- • Simplification of tooling and fixtures requirements.
- • Use of interchangeable tools.
- • Decentralized tooling and fixtures storing facilities.
- • Preparation of tool kits for special tasks, jobs, or operations.
Plant, Machinery, And Equipment:
- • Maximizing plant and machinery preventive maintenance programs.
- • Minimizing maintenance by breakdowns.
- • Plant maintenance cost reduction.
- • Plant and machinery downtime reduction.
- • Improved plant and machinery capacity utilization.
Product And Service Costs:
- • Product unit cost reduction.
- • Service unit cost reduction.
Human Resources Management:
- • Continuous coordination of labor-management activities.
- • Continuous improvement of labor-management relations.
- • Employee participation in operational decision-making processes.
- • Supportive teamwork environment and an open door policy.
- • Employee absenteeism reduction.
- • Improved motivation of employees.
Suppliers:
- • Minimum number of highly reliable suppliers.
- • Purchasing of materials and services at most competitive prices.
- • Maximizing the cooperation between the suppliers and the purchaser.
- • Supplier delivery time reduction.
Sub-Contractors:
- • Outsourcing or sub-contracting components manufacture or services to maximize cost- effectiveness.
- • Material and inventory level requirements reduction.
- • Operational facility space reduction.
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3. WHERE DOES PROCESS DESIGN REALLY BEGIN? |
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THE BEGINNING OF PROCESS DESIGN |
Process Design in a manufacturing environment usually starts during the Product Design. The designer, or design engineer, must consider a broad range of operational issues throughout product design.
Process design begins by dividing the product into a number of components, sub-assemblies, and final assembly. At this stage the product's Explosion Chart, Parts List, and Bill Of Materials needs to be prepared.
The Explosion Chart and the Parts List summarize all details pertaining to components and sub-assemblies required to complete one product unit.
The Bill of Materials contains detailed specifications, weight, or dimensions of raw materials required to complete the final product assembly. |
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4. SMALL BUSINESS EXAMPLE
PRELIMINARY PRODUCT DESIGN |
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PRELIMINARY PRODUCT DESIGN |
To illustrate the procedures involved in the Product And Process Design, consider the manufacture of a low-fat Eskimo Pie. Although it may seem to be a simple product, its’ manufacture, as you will see, will require some serious planning.
Assume that a reputable ice-cream manufacturer conducted a thorough market research and concluded that there is a substantial market of Eskimo Pie lovers. Subsequently, the manufacturer has decided to invest $500,000 for building a new product line in its existing manufacturing facility. This product line will be completely self-sustaining and independent from all other manufacturing activities.
Process design of the Eskimo Pie must begin with the product design and include the following:
- • Product Explosion Chart.
- • Parts List.
- • Bill Of Materials.
These important documents are illustrated below. |
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5. SMALL BUSINESS EXAMPLE
PRODUCT EXPLOSION CHART |
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PRODUCT EXPLOSION CHART |
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NOTE: |
The actual Product Explosion Chart should include all elements of a particular product. In this case - the Eskimo Pie represents a very simple product which consists of three parts:
1. Eskimo ice cream bar.
2. Wooden stick.
3. Paper wrapping (not shown here). |
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6. SMALL BUSINESS EXAMPLE PARTS LIST |
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PARTS LIST |
Product: Eskimo Pie Container
This Parts List is for one unit of product containing six Low Fat Eskimo Pies. |
Item Description |
Quantity |
1. |
Frozen ice cream pie. |
6 |
2. |
Wooden stick. |
6 |
3. |
Paper wrapping. |
6 |
4. |
Cardboard container. |
1 |
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7. SMALL BUSINESS EXAMPLE BILL OF MATERIALS |
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BILL OF MATERIALS |
Product Name: Eskimo Pie Container (containing six low fat Eskimo Pies).
This Bill of Materials is for one thousand containers of product only. |
Item Description |
Quantity |
1. |
Nonfat milk and milk fat |
100 gallons |
2. |
Coconut oil |
5 gallons |
3. |
Maltodextrin and Polydextrose |
2 lb each |
4. |
Chocolate |
50 lb |
5. |
Sorbitol, Mannitol, and Sodium |
1 lb each |
6. |
Vanilla |
5 lb |
7. |
Aspartame (Nutrasweet ® Brand) |
100 packets |
8. |
Cellulose gel and mono-glycerides |
1 lb each |
9. |
Annato (for color), Carrageenan and Vitamin A |
4 lb each |
10. |
Wooden stick (1 per pie x 6 per container) |
6,000 units |
11. |
Paper wrapping (1 per pie x 6 per container) |
6,000 units |
12. |
Blank cardboard for container |
1,000 units |
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Note:
- • All quantities above are subject to a major correction.
- • The taste of the Eskimo Pies is not guaranteed if you decide to use the abovementioned recipe for your own manufacturing purposes.
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8. SMALL BUSINESS EXAMPLE PRELIMINARY MANUFACTURING REQUIREMENTS |
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PRELIMINARY MANUFACTURING REQUIREMENTS |
Once the product design has been successfully completed, the process design may begin. Taking into consideration the existing world class operational guidelines, the ice cream manufacturer may summarize the following Preliminary Manufacturing Requirements:
1. Product Design And Specifications:
- • Product Type 1: Low fat Eskimo Pie (regular size); Net weight 2.5 Fl Oz each (74 ml).
- • Product Type 2: Low fat Eskimo Pie (king size); Net weight 5 Fl Oz each (148 ml)
- • Product Type 3: Regular Eskimo Pie (regular size); Net weight 2.5 Fl Oz each (74 ml).
- • Product Type 4: Regular Eskimo Pie (king size); Net weight 5 Fl Oz each (148 ml).
- • Interchangeable Component - Wooden stick.
2. Plant Layout (Development of a self-contained sub-plant which includes):
- • Raw material storage facility ( two levels for better space utilization).
- • Eleven items as specified in the Plant Requirements Report below.
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9. SMALL BUSINESS EXAMPLE
PLANT REQUIREMENTS REPORT |
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PLANT REQUIREMENTS REPORT |
Project: Eskimo Pie Production Plant |
Location: North Pole Department |
Plant Description |
Quantity |
Unit Estimated Cost ($) |
Total Estimated Cost ($) |
1. |
Commercial scale |
2 |
500 |
1,000 |
2. |
Raw material mixing plant |
4 |
1,500 |
6,000 |
3. |
Material mixture cooling plant |
2 |
15,000 |
30,000 |
4. |
Eskimo pie forming conveyor line |
2 |
25,000 |
50,000 |
5. |
Wooden stick insertion machine |
2 |
10,000 |
20,000 |
6. |
Chocolate dipping conveyor line |
2 |
25,000 |
50,000 |
7. |
Eskimo pie refrigeration plant |
1 |
45,000 |
45,000 |
8. |
Eskimo pie packaging machine |
4 |
7,500 |
30,000 |
9. |
Cardboard box machine |
2 |
5,000 |
10,000 |
10. |
Eskimo pie assembly line |
2 |
10,000 |
20,000 |
11. |
Container packaging line |
2 |
10,000 |
20,000 |
Total |
282,000 |
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10. PRODUCTION PROCESS FLOWCHART |
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PRODUCTION PROCESS FLOWCHART |
Production Process Flowchart displays actual or potential movement of materials throughout the manufacturing process.
There are five types of activities identified in a manufacturing environment. Each type of activity is marked with its appropriate symbol and illustrated below. |
FIVE TYPES OF ACTIVITIES IN A MANUFACTURING ENVIRONMENT |
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ADVANTAGES OF A PROCESS FLOWCHART |
Production process flowchart may provide the details of operations entailed in a specific manufacturing process, component sub-assembly, or finished product assembly. An example of this chart is illustrated below.
The illustrated production process flowchart specifies the time requirement for various operations in case of the Eskimo Pie manufacturing and provides the time summary of various processes. |
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ADDITIONAL INFORMATION ONLINE |
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11. SMALL BUSINESS EXAMPLE PRODUCTION PROCESS FLOWCHART |
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PRODUCTION PROCESS FLOWCHART |
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12. ROUTE SHEET |
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ROUTE SHEET |
All operational instructions pertaining to a specific manufacturing process may be summarized in a Route Sheet. This document is particularly useful for production scheduling and for control of manufacturing activities that are discussed later.
A typical route sheet is illustrated below. In case of the Eskimo Pie example, there is no need for a route sheet since the whole manufacturing process is fully automated and synchronized in accordance with world class operational guidelines. |
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13. SMALL BUSINESS EXAMPLE
ROUTE SHEET |
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ROUTE SHEET |
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14. PRODUCT ASSEMBLY CHART |
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PRODUCT ASSEMBLY CHART |
The Product Assembly Chart helps to clarify the sequence of operations required throughout the product assembly process.
Each operation must be examined separately and its estimated time recorded in the Flow Process Chart. This chart helps in summarizing a detailed flow of operations pertaining to a specific repetitive task.
It is useful, therefore, to prepare a Product Assembly Chart for any product which is intended to be manufactured in large quantities.
In many other instances the finished product may consist of a large number of components, and often require manual assembly. In this case, the Product Assembly Chart may be very helpful by providing the guidelines for complete assembly of the finished product.
In the case of the Eskimo Pie example, the Product Assembly Chart is not required since the finished product consists of two items only and its' assembly is fully automated. |
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15. PROCESS DESIGN AND CAD-CAM |
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IMPORTANCE OF PROCESS DESIGN |
The Process Design procedure is frequently used when products are manufactured in large quantities. Such a procedure usually requires substantial investment in time and should, therefore, remain cost-effective when smaller quantities are produced.
Process Design For Services And Projects also entails sub-division of the complete operation into separate components and evaluation of each component on an individual basis.
Product And Process Design Procedures have been upgraded through the extensive use of modern computer technology. A broad range of computer-aided design equipment and software are available and is widely utilized by designers and engineers. There are several variations of software packages used for product and process design applications as presented below. |
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THREE TYPES OF SOFTWARE |
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Computer-Aided Design (CAD) |
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Computer-Aided Manufacturing (CAM) |
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Computer-Aided Design And Manufacturing (CAD-CAM) |
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Each type of software is briefly discussed below. |
COMPUTER-AIDED DESIGN (CAD) |
Computer-Aided Design (CAD) is a process of using computers for the purpose of designing new products and modifying the existing ones.
Various types of CAD software, used during the product design process, enable the designers to substantially increase the productivity of the entire design process and improve the overall quality of the design work. CAD also provides improved communication during the design process through documentation and available database. |
ADDITIONAL INFORMATION ONLINE |
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COMPUTER-AIDED MANUFACTURING (CAM) |
Computer-Aided Manufacturing (CAM) is a process of using computers for the purpose of manufacturing a broad range of parts and products. CAM entails using suitable software for programming selected machines for specific manufacturing operations. CAM may also include automated selection of special tools during the manufacturing process. The prime purpose of CAM is to increase the product accuracy and efficiency during various manufacturing processes, to reduce waste, and ensure smooth operational flow in the manufacturing facility. |
COMPUTER-AIDED DESIGN AND MANUFACTURING (CAD-CAM) |
Computer-aided design (CAD) software is frequently used in a combination with the computer-aided manufacturing (CAM) software and it is known as Computer Aided Design And Manufacturing (CAD-CAM).
The CAD-CAM software programs use the CAD designs and subject them to additional engineering examination. This CAD-CAM combination provides a solid foundation for further development of the world class manufacturing processes.
Product And Service Design And Standardization are discussed in detail in Tutorial 4. |
ADDITIONAL INFORMATION ONLINE |
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16. PROCESS FLOW DIAGRAM AND FLOWCHART |
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WHAT IS A PROCESS FLOW DIAGRAM? |
A Process Flow Diagram (PDF) is also known as the System Flow Diagram (SFD). The main purpose of this diagram is to illustrate the relationship between all major parts of a specific industrial system. This diagram does not include any minor parts and components of the system.
Process flow diagrams are frequently used in process engineering and chemical industry where it is necessary to illustrate the relationship between main components of a specific system only. |
WHAT IS A FLOWCHART? |
A Flowchart is a specific type of a diagram which describes a particular sequence or process presenting the steps as boxes of different shapes and sizes connected by arrows.
A simple example of a flowchart is presented below. |
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Source: Wikimedia Commons, File: Lamp Flowchart 2006. |
There are several software programs which provide useful tools for drawing process flow diagrams and flow charts for various applications. Some of the most popular flowchart software programs are presented below. |
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You can learn more about popular software programs at TopTenReviews online. |
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17. PROCESS MAPPING AND VALUE STREAM MAPPING |
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PROCESS MAPPING |
Process Mapping provides a visual display of any type of an operational process flow within an organization. This process is particularly important in the operations department where products or services are produced for customers. |
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Process mapping offers the following important advantages: |
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Provides a detailed identification and sequence of steps in the operational process. |
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Helps in a detailed evaluation of the operational process flow. |
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Helps in identifying value-added activities |
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Helps in identifying wasteful non-value-added activities, such as unnecessary delays. |
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Helps to improve operational process efficiency. |
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Helps to improve the flow of documentation during the operational process. |
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Helps to improve communication among employees related to the operational flow. |
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Upon starting the process mapping of a particular operational process it is necessary to: |
1. Describe the process that is subject to process mapping. |
2. Identify the purpose of this process. |
Specific questions during a mapping process are outlined below. |
QUESTIONS RELATED TO PROCESS MAPPING |
1. |
What are the main tasks in this process? |
2. |
Why does this process take place? |
3. |
Who is involved in this process? |
4. |
What is the starting point of this process? |
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What are the intermediate points in this process? |
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When decisions must be taken during the process? |
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What is the documentation flow during this process? |
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What are the value-added activities during this process? |
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What are the non-value-added activities during this process? |
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What is the final point in this process? |
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Process mapping represents an important tool for improving operational flow within the organization and it represents an integral part of Six Sigma and Lean Six Sigma which are discussed in this Tutorial. |
LEAN SIX SIGMA |
Lean Six Sigma is a management strategy for problem-solving and process improvement which is based on two methodologies: |
• Lean Management
• Six Sigma
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The main purpose of Lean Six Sigma is elimination or reduction of waste (muda) and meeting the strict Six Sigma quality standards for products and services. Lean Six Sigma was popularized by Michael L. George, author of numerous lean six sigma books, including What Is Lean Six Sigma? |
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ADDITIONAL INFORMATION ONLINE |
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VALUE STREAM MAPPING IN LEAN ENVIRONMENT |
Value Stream Mapping (VSM) is an effective process which provides a visual representation of all operational activities related to specific products and services and summarizes relevant information, documentation, and time requirements.
Value stream mapping is used extensively in a lean operational environment. VSM entails completing an operational flow diagram which summarizes each step in the operational process starting with suppliers and ending with customers. VSM is an integral part of the Toyota Production System (TPS).
Note:
Value Stream Mapping is discussed in detail in Tutorial 1. |
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18. FOR SERIOUS BUSINESS OWNERS ONLY |
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ARE YOU SERIOUS ABOUT YOUR BUSINESS TODAY? |
Reprinted with permission. |
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19. THE LATEST INFORMATION ONLINE |
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LESSON FOR TODAY:
To Survive You Must Be Prepared To Change Your Products And The Way You Make Them!
Joe Griffith
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Go To The Next Open Check Point In This Promotion Program Online. |
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