Module 1.

2
Product Design, Process
Planning, and Schedule
Design
 Manufacturing Systems

• Manufacturing facilities are viewed as part of the supply chain

interconnecting the raw materials, the manufacturing facility
itself, the warehouses, retailers, and customers.
• A manufacturing system can be divided into the following
essential functions:
– Product design
– Process planning
– Production operations
– Material handling and transportation flow/facilities layout
– Production planning and control

Source: Garcia-Diaz, Alberto, Smith, J. MacGregor. (2008). Facilities Planning and Design. Pearson-
Prentice Hall. P15
 Manufacturing Systems

• Product Design is responsible from taking input from

marketing and for building a product.
• Process planning includes specification of operational
sequences needed to transport raw material into finished
product.
• Manufacturing operation are generally classified as forming,
treating, and assembling.
• Material handling is related to systems for moving parts,
tools, and scrap.
Source: Garcia-Diaz, Alberto, Smith, J. MacGregor. (2008). Facilities Planning and Design. Pearson-
Prentice Hall. P15-17
 Manufacturing Systems

• Facilities layout is concerned with the physical location of the

production processes within each facility.
• Production planning and control is responsible for integrating
marketing information, production capacity, and current
inventory levels to determine production levels that will allow
a firm to run smoothly and efficiently.

Source: Garcia-Diaz, Alberto, Smith, J. MacGregor. (2008). Facilities Planning and Design. Pearson-
Prentice Hall. P15-17
 Product design and process
planning

• Factors affecting product and process design

– Types of products to be manufactured
– Quantities to be produced
– Specific manufacturing processes
– Sequence of manufacturing operations to be performed

Source: Garcia-Diaz, Alberto, Smith, J. MacGregor. (2008). Facilities Planning and Design. Pearson-
Prentice Hall. P41
 Product design and process
planning
• Several internal functions influence the process of facilities
planning because they define environment in which the
company operates. The following internal functions serve as
the platform in which facilities planning strategies are
developed and coordinated to reach the company’s goals:
1. Marketing study (why a product is going to be manufactured)
2. Product design (what is going to be manufactured)
3. Process planning (how is it going to be manufactured)
4. Schedule design (when and how much is going to be manufactured)
5. Finance and administration (core values, leadership, vision, resources)

Source: Garcia-Diaz, Alberto, Smith, J. MacGregor. (2008). Facilities Planning and Design. Pearson-
Prentice Hall. P41
 Product design and process
planning
• An integrated strategic plan is a document that formulates functional
courses of action that will be consistent with and supported by the
internal functions of an organization.
• These functional strategies are specific means in which the objectives
of facilities planning are reached in consistency with the main goals of
the organization. These strategies are needed for the following
activities:
1. Selling the product
2. Manufacturing
3. Distribution
4. Purchasing
Source: Garcia-Diaz, Alberto, Smith, J. MacGregor. (2008). Facilities Planning and Design. Pearson-
Prentice Hall. P41
 Product design process

• The fundamental purpose of the product design phase is to

answer the question “What is going to be made?”
• A typical product design or development process focuses on
functional requirements and manufacturability of the
product. It can be started once a great idea on a new product
is available.

Source: Garcia-Diaz, Alberto, Smith, J. MacGregor. (2008). Facilities Planning and Design. Pearson-
Prentice Hall. P45
 Product design process
1. Idea generation from suppliers, competitors, sales force, government
regulations, research activities, and customer needs.
• A list of product attributes and requirements should be prepared to address
relevant features such as life, functionality, reliability, performance, looks, cost,
and usability. The product should be functional, reliable, and economic
2. Initial Screening
• All fundamental and sweeping ideas are evaluated. The aim is to eliminate ideas
that do not appear to have high potential for success.
• Market criteria determine whether there is market for the product, whether this
market is expected to grow and by how much, and what is the size of competition
in the market.
• Technical screening determines the feasibility of a product from the point of view
of manufacturability.
Source: Garcia-Diaz, Alberto, Smith, J. MacGregor. (2008). Facilities Planning and Design. Pearson-
Prentice Hall. P46-47
 Product design process
3. Economic Analysis
• It encompasses a diversity of financial and engineering economy calculations to
evaluate the product proposal from an economic point of view, in which the time
value of money is usually considered.
4. Initial Design and Development
• All details of the product are composed.
• Three main factors to take into account during this phase are a) product
functionality, b) technical requirements and specifications, and c) economics of
production and distribution.
• The initial design and development phase is often iterative. First designs and
prototypes usually show the opportunities for improvement and serve as input to
a second design cycle.

Source: Garcia-Diaz, Alberto, Smith, J. MacGregor. (2008). Facilities Planning and Design. Pearson-
Prentice Hall. P46-47
 Product design process
5. Prototyping
• It is the design verification phase of product development and is used to
demonstrate or prove aspects of a design.
• It is used to test the product’s physical properties and functions under actual
conditions.
6. Final design and production details
• All the deficiencies indicated during prototype testing are removed and
appropriate changes and modifications are incorporated in the design.

Source: Garcia-Diaz, Alberto, Smith, J. MacGregor. (2008). Facilities Planning and Design. Pearson-
Prentice Hall. P46-47
 Product design tools

1. Concurrent engineering
• It is systematic approach that develops products and their related
manufacturing and support processes in parallel (simultaneously).
2. Quality Function Deployment
• Identifies and links customer requirements to a diversity of functions,
including design, manufacturing, and service.
3. Value Analysis
• Supports cost-reduction activities by relating the costs of components to
their functional contributions in a product.

Source: Garcia-Diaz, Alberto, Smith, J. MacGregor. (2008). Facilities Planning and Design. Pearson-
Prentice Hall. P52-53
 Process Planning

• A process is a group of related tasks with specified inputs and

outputs. Processes exists to create value for the customer, the
shareholder, or society.
• Process design defines what tasks need to be done and how
they are to be coordinated among functions, people, and
organizations.
• Process strategy is an organization’s overall approach for
physically producing goods and providing services.

Source: Russel & Taylor. (2011). Operations Management 7th ed. John Wiley & Sons. P228
 Process Planning

• Process Strategy
• Vertical integration: The extent to which the firm will produce the inputs
and control the outputs of each stage of the production process. It is also
the degree to which a firm produces the parts that go into its products.
• Capital intensity: The mix of capital and labor resources used in the
production process
• Process Flexibility: The ease with which resources can be adjusted in
response to changes in demand, technology, product or services, and
resource availability.
• Customer involvement: The role of the customer in the production
process.

Source: Russel & Taylor. (2011). Operations Management 7th ed. John Wiley & Sons. P228
 Process Planning

• Process Planning determines how a product will be

produced or a service provided. It decides which
components will be made in-house and which will be
purchased from a supplier, select processes, develops
and documents the specifications for manufacture and
delivery.
• It converts designs into workable instructions for
manufacture or delivery.

Source: Russel & Taylor. (2011). Operations Management 7th ed. John Wiley & Sons. P228
 Process Selection

• The next step in process planning is to select a

production process for those items that will be
produced in-house.
• Process classification
• Project
• Batch production
• Mass production
• Continuous production
Source: Russel & Taylor. (2011). Operations Management 7th ed. John Wiley & Sons. P228
 Process Planning

High Continuous
Production
Repetitive
process
Mass
Production
Volume

Batch
production Intermittent
process
Project
Low
Standardization High
Low

Source: Russel & Taylor. (2011). Operations Management 7th ed. John Wiley & Sons. P230
 Process Classification

• Project takes a long time to complete, involves a large

investment of funds and resources, and produce one
item at a time to consumer order.
• Batch production processes many different jobs
through the production system at the same time in
groups and batches. Products are typically made to
customer order, volume is low, and demand fluctuates.

Source: Russel & Taylor. (2011). Operations Management 7th ed. John Wiley & Sons. P229
 Process Classification

• Mass production produces large volumes of a standard

product for a mass market. Product demand is stable,
and product volume is high.
• Continuous production is used for very high-volume
commodity products that are very standardized. The
system is highly automated and is typically in
operation continuously 24 hours a day.

Source: Russel & Taylor. (2011). Operations Management 7th ed. John Wiley & Sons. P229
 Process Types

• Intermittent production is normally a process where

multitude of products or parts are produced, each
necessitating a certain sequence of operations. Examples
are woodworking and furniture industries, and machine
shops.
• Repetitive production or sometimes called continuous
production, consists of operations where one or a few
products pass through a sequence of operation to
produce the desired finished product of products.
Source: Kanawaty, George. (1992). Introduction to Work Study 4th ed. Geneva International Labor
Office. P222
 Schedule Design

• The fundamental question in schedule design is “How many

parts are going to be made in a specified time period?”
• Schedule design determines the process requirements in terms
of the number of units of each type of equipment needed to
meet the production schedule.
• Activities in schedule design:
1. Determination of the quantity to be manufactured for each component
2. Identification of equipment required by each operation
3. Consolidation of all equipment requirements

Source: Garcia-Diaz, Alberto, Smith, J. MacGregor. (2008). Facilities Planning and Design. Pearson-
Prentice Hall. P69
 Schedule Design

• Schedule design decisions impact machine selection, number of

machines, number of shifts, number of employees, space
requirements, storage equipment, material handling
equipment, personnel requirements, storage policies, unit load
design, building size, etc.

Source: Tompkins, James A., White, J.A., Bozer, Y.A., Tanchoco, J.M.A. (2010). Facilities 4TH ed. John
Wiley & Sons. P47
 Schedule Design Process

Capacity
Constraint
Demand forecast What to produce
Production plans When to produce
Customer order
Scheduling
How much to
Delivery dates produce

Production
lead-time
constraint
Source: Garcia-Diaz, Alberto, Smith, J. MacGregor. (2008). Facilities Planning and Design. Pearson-
Prentice Hall. P69
 Calculation of Production
Requirements

Ok  I k (1  d k )
Where:
dk = percentage of defective items produced on the kth operation
Ok = desired output without defects
Ik = production input

Source: Tompkins, James A., White, J.A., Bozer, Y.A., Tanchoco, J.M.A. (2010). Facilities 4TH ed. John
Wiley & Sons. P47
 Calculation of Production
Requirements

• Example: A product has a market estimate of 97,000

components and requires three processing steps:
turning, milling, and drilling, having defective
estimates of 4%, 1%, and 3%. The market estimate is
the output required from step 3.

Source: Tompkins, James A., White, J.A., Bozer, Y.A., Tanchoco, J.M.A. (2010). Facilities 4TH ed. John
Wiley & Sons. P47
 Calculation of Production
Requirements with Rework
The following figure shows the process of parts from station 1
to 3. Station 2 is a rework station where defective parts are
being reworked. There is a requirement of 5,000 units.
Defective rates for each station are 10%, 5%, and 3%.

Input 1 3 Output

2 Waste

Waste
Source: Tompkins, James A., White, J.A., Bozer, Y.A., Tanchoco, J.M.A. (2010). Facilities 4TH ed. John
Wiley & Sons. P47
 Calculation of Production
Requirements with Rework
Given the figure below, operation 4 represents a rework
operation on parts that fail inspection upon completion of
operation 2.

1 2 3 10,000

d2 = 5%
d1 = 5% d3 = 10%
4

d4 = 2%
Source: Tompkins, James A., White, J.A., Bozer, Y.A., Tanchoco, J.M.A. (2010). Facilities 4TH ed. John
Wiley & Sons. P76
 Machine computation
The general formula for computing the decimal number of machine is:
Pt
N
Where: p( H  s )
N = number of machines in decimal/fractional form
P = daily production (products to be processed)
H = the number of hours per day
t = standard time in hours per piece
s = daily set up time in hours
p = fraction of the time the machine is up
Source: Garcia-Diaz, Alberto, Smith, J. MacGregor. (2008). Facilities Planning and Design. Pearson-
Prentice Hall. P70
 Machine computation: Example 1

• Assume that P = 1,600 units per day, t = 0.004

hours per piece, H = 8 hours per day, s = 0.2
hour, and p = 0.90. Find the fractional machine
number.

Source: Garcia-Diaz, Alberto, Smith, J. MacGregor. (2008). Facilities Planning and Design. Pearson-
Prentice Hall. P70
 Machine computation: Example 2

• A product requires two sequential machine operations. The first

takes 3.5 minutes and the defect percentage is 12. The second
takes 6.0 minutes and the defect percentage is 7. Assuming 250
workdays per year and a daily shift of 10 hours, it is desired to
determine the minimum fractional number of machines to
manufacture 50,000 units per year. In another similar plant
belonging to the same company, past annual data on identical
operations and working conditions indicate that 10 machines
were out of production a total number of 2,198 hours due to
setup and 2,052 hours due to machine unavailability.
Source: Garcia-Diaz, Alberto, Smith, J. MacGregor. (2008). Facilities Planning and Design. Pearson-
Prentice Hall. P70
 Estimation of Number of machines
required

SQ
F
Where: HER
F = number of machines required per shift
S = standard time (minutes) per unit produced
Q = number of units to be produced per shift
H = amount of time (minutes) available per machine
E = actual performance, expressed as a percentage of standard time
R = reliability of machine, expressed as percent up time
Source: Tompkins, James A., White, J.A., Bozer, Y.A., Tanchoco, J.M.A. (2010). Facilities 4TH ed. John
Wiley & Sons. P56-59
 Estimation of Number of machines
required: Example 1

• A machined part has a standard machining time of 2.8

minutes per part on a milling machine. During an
eight-hour shift, 200 units are to be produced. Of the
480 minutes available for 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.
How many milling machines are required?
Source: Tompkins, James A., White, J.A., Bozer, Y.A., Tanchoco, J.M.A. (2010). Facilities 4TH ed. John
Wiley & Sons. P56-59