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Step in Process Selection
1. Establish the process Selection: A preliminary decision regarding process can be taken from but it stand point of function, economy, appearance, quality desired, accuracy and the volume of production.
2. Collect all the facts about the Problem: The information is obtained from part print analysts as well as from other departments in the firm. A list of machines equipment and skill available in the firm is prepared.
3. Plan Alternative Process: Find the number of processes by which the product or component can be manufactured. Obviously if only one process is capable of producing the required characteristics, then make or buy decision should be considered, based on comparative costs of self production versus procurement.
4. Evaluate Alternative Process: Usually, however the component can be made by two or more methods say. A,B, C, etc. Some of which may be at the plants disposal while others may involve subcontracts or new installations at the plant. It is therefore necessary to decide.
5. Establish that process as a standard practice after some necessary practical adjustments.
operating costs with quarterly breakup
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