Capacity Planning – Meaning, Classification and its Goals
February 12, 2025
Introduction 21st century has been defined by application of and advancement in information technology. Information technology has become an integral part of our daily life. According to Information Technology Association of America, information technology is defined as “the study, design, development, application, implementation, support or management of computer-based information systems.” Information technology has served as […]
Export credit agencies are quasi-government agencies. These agencies are usually backed by government institutions. This means that they are under the purview of government authorities and also have access to taxpayer funds. All developed countries in the world have created their own export credit agencies. Collectively these agencies wield a tremendous amount of influence on […]
Before the Project Begins Six Sigma projects are meant to make the organization efficient. It is for this reason that one must ensure that the projects are efficient in themselves. One of the main criteria for a project to be efficient is that it must have well defined goals. Only once the goals are defined […]
While Fredrick Taylor’s scientific management had help create huge American corporations that were quick to adopt the viewpoint, the 1970’s saw the emergence of Japanese corporations. These corporations were very small at the end of World War-2 when Japan had been economically devastated. However within two decades, a group of Japanese companies completely turned the […]
Any ERP implementation attracts expenditure on account of Operating System (OS) and Relational Database Management (RDBMS) for hosting the system. Networking issues also assumes importance particularly when the system is rolled out at different locations. Additionally, licensing options associated with ERP packages need to be carefully evaluated during final contract negotiation. Operating System and Database […]
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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