Integral Logistics Management — Operations Management and Supply Chain Management Within and Across Companies

Chapter 8 – The Concept for the Process Industry

Intended learning outcomes: Produce logistics characteristics of a product variety concept. Explain adaptive and generative techniques in detail. Describe the use of generative and adaptive techniques for engineer-to-order. Differentiate various ways of cooperation between R&D and Engineering in ETO Companies.

Section 8.1.1: Divergent Product Structures, Primary Products, By-Products, and Waste Products

Intended learning outcomes: Explain the manufacture of by-products in chemical production.

Example for manufacture of by-products: Mineral oil
The preparation of mineral oil is a typical example of manufacture of by-products: a minimum of two products are produced at the same time in one step of a production process. The following Flash animation illustrates how a multitude of products are manufactured from a single base material (raw oil) in a production process that has many steps. The presentation clearly shows that manufacture of by-products is typically connected with divergent product structures. This is even more impressive considering that most refinery products are themselves raw materials for entire industries (e.g., plastics).

Section 8.1.1: Manufacture of By-Products in Mechanical Production

Intended learning outcomes: Describe the manufacture of by-products in sheet metal working.

Exercise: Manufacture of by-products in mechanical industry
Try to produce a washer stamping pattern in such a way that the least amount of waste is produced. Be aware, however, that the need for the individual washers varies and over-production should be avoided.
The Flash animation shows a part of a continuous metal sheet from which the washers, etc. are cut.

Section 8.1.2: High-Volume Line Production, Flow Resources, and Inflexible Facilities

Intended learning outcomes: Describe flow resources within a process stage. Explain the need for flexible capability of the production infrastructure in chemical production.

Example: Flow Resource
In practice, flow resources usually refers to fluids, gases or bulk goods that are moved forward between work centers and are not stored in-between, or to materials that cannot be stored, depending on the circumstances. From the point of view of planning and control, one result is that the stations connected to each other by the flow resources have to be considered as one unit. Thus, there is no freedom for individual capacity planning of each work center. The effects of even a temporary lapse in attention is shown in the following Flash animation in a drastic but thoroughly realistic way.

Section 8.2.2: The Chocolate Production — An Example of a Processor-Oriented Production Structure

Intended learning outcomes: Describe the production structure in chocolate production. Explain the various manufacturing steps and stages in chocolate production.

Exercise: Explain the various manufacturing steps and stages in chocolate production
The following animation illustrates the process of manufacturing chocolate. The entire process is divided into three stages, each separated by a storage step. This allows the schedules to be set up individually for each stage and permits the selection of technologically and economically appropriate processing volumes for the individual stages.
(Sincere thanks go to Chocosuisse - - for providing both comprehensive information and photographs).

Section 8.2.2: The Process Train — A Formalized Processor-Oriented Production Structure, and The Recipe

Intended learning outcomes: Explain the formalized process train with stages and basic manufacturing steps. Identify the recipe.

Exercise: Process train - formalized
Try to complete the empty boxes of the processor-oriented production structure.

Section 8.3.1: Campaign Planning

Intended learning outcomes: Explain campaign planning using an example of a process chain in chemical production. Identify campaign cycles for the example and a minimum campaign of one day’s production. Describe how the process stages could be synchronized.

Exercise: Campaign cycle planning
Try to plan the campaign cycle of a two-step production (reactor and packaging) for four different products, each with two packaging options. You are the production manager. Before beginning with the planning task, take note of the constraints and hints offered.

Section 8.3.3: Consideration of a Nonlinear Usage Quantity and of a Product Structure with Loops

Intended learning outcomes: Present the quantity of a manufactured product P as a nonlinear function of the usage quantity of a resource R. Identify possible solutions of issues entailed by a nonlinear usage quantity.

Exercise: Process Train
In the following exercise, try to commission a very simplified continuous process, a process train of two manufacturing steps, and convert it to a steady operating state. As is often the case in practice, the criterion for product quality is the color of the products. Variation parameters are: the demand ratio to the raw materials and the holding time in the processors, which can be influenced by the demand quantity and the level. The goal of this task is to keep the amount of waste as small as possible.

Case Study: The Concept for the Process Industry

Up to now in these case studies, you have solved various logistics problems that were mainly in companies with convergent product structure (discrete manufacture) production settings. A glance at the basic process industries in which, for example, oil, natural gas, coal, energy or steel are produced and/or processed makes it clear that production structure has a considerable influence on the production infrastructure and layout. This leads to special circumstances that must be considered in production planning and logistics. Process-oriented production actually brings up new kinds of questions that have no equivalent in discrete manufacturing.

English Version

Process Industrie PDF
Process Industrie DOC


Process Industrie XLS

Deutsche Version

Process Industrie PDF
Process Industrie DOC


Process Industrie XLS