Capacity Planning – Meaning, Classification and its Goals
February 12, 2025
Introduction A production defect in a company like GE (General Electric) might result in that specific product or the part being removed from the assembly line and not sent out as finished product. However, in the service sector, a process error might prove to be costly as in the case of the JPMC or Citigroup […]
Any warehouse operations are measured by service levels, volume of transactions handled quality of transactions and most importantly inventory health maintained. By Inventory health in a warehouse, we are referring to Physical Inventory Accuracy, the way inventory is physically kept in locations and discipline maintained in transactions, inventory maintained in the system. Inventory Health, in […]
What is Demographic Dividend and Demographic Deficit ? We often hear the terms Demographic Dividend and Demographic Deficit being written about and spoken about by experts and economists. These terms are mentioned in the context of how economies in the future can manage either the rising percentage of youth among their population or deal with […]
In order to truly control a process, one must understand the inputs as well as outputs of the process. These inputs and outputs are displayed through numbers which are called “metrics”. The primary metric is a way to say with numbers how well your process is performing. Here are a few pointers that will help […]
Warehousing Costing methods vary with the business models. While some warehouses using common shared facilities may be worked up based on transaction costs, dedicated and stand alone facilities would be on a different costing model. In this section, we shall go through the cost elements of a warehouse project briefly. Warehouse Cost elements are primarily […]
The objective of organization is to provide service and product, which satisfy customer and create value for them. A product and service designed is based on the customer feedback and requirement of the market.
Process design is where the product is broken down into parts, which further can be helpful in the actual manufacturing process.
A product, for example, has attractive packaging to provide the right aesthetics plus has function and features, which provide value to customers. Process design ensures that there is smooth and continuous relationship between required output and all the intermediate process.
For example, manufacturing of Air-Conditioners, process design has to be such that maximum supply is achieved during the hot months of summer when demand of the product is at the highest. So people, process and machines need to align to give continuous production throughout the year as to satisfy seasonal demand.
Process development for process design can be summarized through following steps:
Based on the nature of product and service production or conversion process can be divided into two broad categories, continuous production (assembly line, oil refinery) and intermittent production (job work, service).
Production process for both manufacturing industry and service industry can be classified into broad categories based on standardization of product or service. It can range from single project assignment like a building or bridge (manufacturing) to interior design (service) and mass production project like a car (manufacturing) to a fast-food joint (Services).
A successful process design has to take into account the appropriateness of the process to overall organization objective. Process design requires a broad view of the whole organization and should not have a myopic outlook. And the process should deliver customer value with constant involvement of the management at various stages.
In order to achieve a good process design, effective process strategy is required, which deals with a singular line items required to manufacture the end product. Effective process strategy deals with raw material procurement, customer participation, technology investment, etc.
Over a period of time process design has undergone change and new concepts like Flexible Manufacturing Systems have been developed, which delivers efficient and effective production design and analysis.
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