Business%20Process%20Re-engineering

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Business Process Re-engineering

• Supervisor
• Prof. Houmin Yan
• Group R

Shirley Ma Bobby Chong George Wong Leung Chi
Cheong
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Presentation Flow

• I. Important of Business Process Re-engineering
• II. CK Systems
• III. MC760 Series
• IV. Project Objective
• V. Process layout VS Product layout
• VI. Evaluation method - Simulation
• VII. Simulation tool - ProModel
• VIII. Demonstration
• IX. Analysis
• X. Recommendations
• XI. Contributions

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Business Process Re-engineering (BPR)

• the fundamental rethinking and radical redesign
  of business processes to achieve dramatic
  improvements in critical, contemporary measures
  of performance, such as cost, quality, service
  and speed

• Question the entire existing operation

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Why do companies need BPR?

• Surviving in the changing world, companies must
  rethink their used operational way

• Making money in the most cost-effective way

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CK Systems
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C K Systems

• Established in 1982
• Largest, successful security product manufacturer
• Provides innovative quality products and
  exceptional customer service to the worldwide
  security industry
• Brand names
• CK, IntelliSense and Securitech

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IntelliSense PIR Motion SensorMC760 Series

• PIR (Passive Infrared Recognition) Motion Sensor
  with Small Animal Immunity
• Installer-friendly
• Eliminate false alarms
• Accurate detection of human intruders

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Production Cell

• Work cell has undergone BPR
• Process layout -gt Product layout
• Production line has two different designs
• Model 1 is studied in the 1st term
• In the 2nd term, we focus on the changed work
  cell (Model 2)

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Project Objective
Balancing the line to smoothen the flow of system
and reduce the cost of idleness
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Process layout VS Product layout

• Process layout

• Product layout

• Produce diversified products in large or small
  volume at varying rates of output

• Produce a standardized product in large volume at
  stable rates of output

• Diversified flow pattern

• Straight line flow

• Relatively low fixed costs

• Relatively high fixed costs

• high unit costs for direct labor, materials
  storage and handling

• low unit direct labor and materials costs

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Drawback of process layout

• Inefficient in producing standardized products
• Low turnover of raw material and WIP inventories
• Low rate of output per unit of facility space
• Unpredictable and unsystematic in ordering
  material

• Specified processes for particular product have
  low utilization rate

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Differences in layouts
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Difference in production capacity
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Evaluation Method - Simulation

• Designing a computerized model of a system (or
  process) and conducting experiments with this
  model
• Purposes

1. understanding the behavior of the system

• Applied to manufacturing industry for about 30
  years.
• Practical and widely used problem-solving
  technique

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Advantages of Simulation

• Permits controlled experimentation
• Allows time compression
• Gives sensitivity analysis by manipulation of
  input variables
• Permits study of the real system without actual
  modification of that system in any way

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Simulation Tool

• ProModel (Production Modeler)
• A software system for simulating and analyzing
  production systems of all types and sizes
• Work on PC platform

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What do the plants look like?

• Let us see a demonstration!

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Analysis on Model 1

• Low Utilization -- unbalanced system
• Average utilization rate is 31.55
• Throughput
• 71 pieces per hour
• Wastage of resources

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Analysis on Model 2

• High Utilization but still not balance
• Average utilization rate is 72
• Throughput
• 130 pieces per hour
• Stable system

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Recommendation 1

• Add one machine in process 7 and remove one
  tester in Function test in order to make it more
  balance
• All machines are always working except the
  repairing machines and the last testing stage
  having much long idle time
• The average utilization percentage is 90 (25
  increased)

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Recommendation 2

• Increase the human resource flexibility
• Workers in first six processes are suggested to
  shift to the posterior processes
• Cross-training for each working
• station is needed

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What is happen to company after re-engineering
its process?

• US25M -- Inventory saving
• US40M -- Total saving

SUCCESSFUL PROCESS RE-ENGINEERING!
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Our Contributions

• Intensively apply simulation
• More than 150 considered cases involving many
  scenarios
• Sensitivity analysis is studied
• Uncertainty consideration
• Cost effective
• Time saving

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Conclusion

• Business Process Re-engineering acts as a step to
  survive and stay in business
• MC760 series is reengineered successfully
• Simulation is used as evaluation method
• Providing recommendations
• to further smoothen
• the production line

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The End