Production processes, definition and examples of optimization

6 minutes
Production process

Production processes representall the activities required to manufacture a finished or semi-finishedproduct. Examples include production planning, resource planning, supply management, order management, etc. Each industrial process is a sequence of tasks, linear or packaged, individual or multi-actor, manual or partly automated.

Companies are looking to optimize every process. Improving one stage of the production flow can lead to gains in productivity, customer satisfaction, and reductions in costs and lead times.

Production process definition

A production process is a conditioned sequence of work steps leading to the completion of a production activity. It can be single-actor or collaborative, and tasks can be consecutive or simultaneous.

It depends on many factors: workstations, computerization or digitalization, manufacturing techniques and methods, work organization, types of production, etc.

Examples of production processes

Production
planning

Resource
planning

Purchasing and supply management

Inventory
management

Production
scheduling

Quality
control

Maintenance
management

Order
management

Cost management and budgeting

Compliance
control

Performance
monitoring

Packaging
and wrapping

If you’re also interested in logistics processes, we invite you to read this article: Logistics processes, optimization opportunities.

Processes can of course vary according to the type of production: mass production, batch production, custom production, etc.

Procurement process

Key topics in production processes

Sub-optimal productivity

This problem is illustrated by bottlenecks, excessive downtime and long lead times on the production line.

Inventory shortage or surplus

Manage the balance between inventory availability and storage costs to avoid stock-outs and surpluses.

Order traceability

Follow an order through the production process. Manage late deliveries. Monitorprogress.

Quality and compliance

Industries may find it difficult to control products and defects, and ensure compliance with standards and regulations.

Breakdowns due to lack of maintenance

Without preventive maintenance, breakdowns impact production and can lead to high repair costs.

High operating costs

Expenditure on energy, raw materials and labor may be excessive or not in line with expectations.

Software integration

Software (especially ERP and management software) doesn’t communicate with each other, which means a lot of tedious data entry and complex information searches for industries. Lack of process automation.

Find out more in our article on process automation

Automated process

Steps in optimizing a manufacturing process

Step 1 – Understanding how it works

Thanks to a process audit or site survey

An audit or inventory phase lists all the stages, resources and tools involved in a production process. It can also be used to collect data such as inventory levels between each stage, throughput times, lead times, quality levels, etc.

Friction, waste or sub-optimization will then be identified. These optimization opportunities can then be prioritized and implemented to improve the manufacturing process. We have written an article describing a simple method for carrying out a production process audit (see below).

Impacts and optimizations

Find out more in our article on how to conduct a process audit.

Process Audit

With a diagram of the production process?

UML diagram
VSM analysis

Process diagrams or maps are formidable optimization and change management tools. In fact, visual representation enables any stakeholder in the company to see how things work. In particular, a diagram helps to visualize possible frictions or bottlenecks.

There are many ways to diagram a production process: flowchart, SIPOC, BPMN, VSM… if you’d like to find out more, we’ve written an article dedicated to this subject: Process Modeling – How to use it in practice.

By setting up measurement systems at key points in the production chain

Measuring devices enable us to capture a range of data in real time: stock levels, processing times, resources committed, budgets spent. All this data can then be compared with your production plan to identify opportunities for improvement.

After processing, this data can then be visualized through various reports, dashboards, pilot tools and production monitoring. This simplifies communication of objectives and issues to teams.

This data can also be used to drive continuous improvement in production process performance.

Step 2: Finding solutions and try them out

Once you’ve identified your problem, it’s important to reformulate it into a concrete objective. Let’s take the example of a company faced with excessively long approval circuits that impact the production process. The objective could be formulated as follows: “Increase the speed of procurement approvals”. To achieve this objective, many families of potential solutions are possible, and you’ll need to list them. In our example, several avenues can be explored:

  • Option A – Reorganize the circuit by reducing the number of approvers
  • Path B – Revise business rules (e.g. approval thresholds, priorities, etc.)
  • Track C – Use more efficient approval management software
  • Track D – Automate part of the validation process by exploiting the history of past orders and forecasts.
  • And so on…

The next step is to define your criteria and subject each family of solutions to your constraints. This will enable you to identify the most suitable solution.

Finally, a family of solutions leads to multiple solutions. A selection process needs to be carried out, leading to the testing of 2 or 3 solutions.

A simple solution for traceability, software integration and compliance in production processes: BPM software.

Procurement process
Example of how to use Lapala software

BPM (Business Process Management) platforms are process management software. They enable processes to be digitized through a wide range of functionalities, such as task distribution to operational staff, validation circuit management, automation of non-value-added tasks such as multiple entries in ERP or accounting software, or information retrieval… These systems are based on a process/workflow designer capable of modeling and executing task sequences 100% customized to the company’s activity.

The major advantage of these solutions lies in their ability to faithfully reproduce a company’s existing processes in the form of fully adaptable digital workflows. These virtual processes integrate all operational aspects, such as parallel tasks, decision points, conditions, validation phases and automated actions.

Adopting such tools for a production process has many advantages for organizations:

  1. Improved resource planning and order management
  2. Significant reduction in human error and data entry
  3. Free employees from tedious, non-value-added tasks
  4. Faster processing times
  5. Interconnection between different software packages such as ERP, CRM, accounting software…
  6. Dynamic, up-to-date process documentation (replacing static PDF sheets)

Discover in 1 minute of BPM Lapala

Conclusion for efficient production processes

Optimizing production processes is a major challenge for modern industries. Faced with the challenges of productivity, inventory management, traceability and quality, a methodical approach is important. This implies an in-depth understanding of current processes, the identification of problems, and the testing of innovative solutions.

Technologies, particularly Business Process Management (BPM) software, play a crucial role in this optimization. They enable processes to be digitized and automated, improving planning, reducing errors and accelerating processing times.

Also interested in reading other articles on processes?

HR process
Logistics process
Accounting Process
Sales Process
Procurement process
Administrative process

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *