Q 596. What is a Product Quantity Process Routing Matrix? How does it help bring synergies in operations? Support your answers with relevant examples.

 

Note for website visitors -

• This platform hosts two weekly questions, one on Tuesday and the other on Friday. 
• All previous questions can be found here: https://www.benchmarksixsigma.com/forum/lean-six-sigma-business-excellence-questions/. 
• To participate in the current question, please visit the forum homepage at https://www.benchmarksixsigma.com/forum/.
• The question will be open until Tuesday or Friday at 5 PM Indian Standard Time, depending on the launch day. 
• Responses will not be visible until they are reviewed, and only non-plagiarised answers with less than 5-10% plagiarism will be approved. 
• If you are unsure about plagiarism, please check your answer using a plagiarism checker tool such as https://smallseotools.com/plagiarism-checker/ before submitting. 
• All correct answers shall be published, and the top-rated answer will be displayed first. The author will receive an honorable mention in our Business Excellence dictionary at https://www.benchmarksixsigma.com/forum/business-excellence-dictionary-glossary/ along with the related term.

• Some people seem to be using AI platforms to find forum answers. This is a risky approach as AI responses are error prone as our questions are application-oriented (they are never straightforward). Have a look at this funny example - https://www.benchmarksixsigma.com/forum/topic/39458-using-ai-to-respond-to-forum-questions/

• We also use an AI content detector at https://crossplag.com/ai-content-detector/. Only answers with less than 15-20% AI-generated content will be approved.

As the term indicates, PQPR matrix involves planning on how efficiently we can extract the best out of the processes to get the best product without any waste. This is management tool that provides a structure to map out the relationship between products, production processes and quantities involved in each step.

 It helps operations by enhancing visibility, reducing waste and improving efficiency in operations.

Sharing below an example of manufacturing unit making chocolates. Here it clearly allows the unit to understand and plan on:

1. Exact quantities for each type of chocolate

2. Optimize resource allocation

3. Reduce the risk of overproducing or underproducing

4. Storage units

 

Chocolate Bar Type	Production Processes	Quantities Produced per Batch
Milk Chocolate	Cocoa Bean Roasting	1000 lbs of cocoa beans
	Cocoa Bean Grinding	800 lbs of cocoa nibs
	Chocolate Tempering and Molding	500 bars
	Wrapping and Packaging	500 bars
Dark Chocolate	Cocoa Bean Roasting	1200 lbs of cocoa beans
	Cocoa Bean Grinding	900 lbs of cocoa nibs
	Chocolate Tempering and Molding	600 bars
	Wrapping and Packaging	600 bars
White Chocolate	Cocoa Butter Processing	800 lbs of cocoa butter
	Mixing and Conching	600 lbs of chocolate mixture
	Chocolate Tempering and Molding	400 bars
	Wrapping and Packaging	400 bars

Product quantity process routing matrix is a technical approach use to group the similar products or services based on the similar steps or processes or equipment it took to create them.

When the organization have product or service mix it is difficult to take the decision than having only one product or service since there may be so many differences in each type. Therefore, identifying similar groups will easier the organization to take the suitable decisions.

When evaluating Product Quantity Process Routing Matrix, it clearly shows which processes are the most frequently used processes in the operations. This will give a clear insight of where the improvements can have the biggest impact. Organization can prioritize these most frequently used processes for the improvements to increase the efficiency of the organization to give a direct positive impact to their customers. As an example, in a warehouse the inventory management process is a one of frequently used processes and it is a key to the business. By improving this process and achieving 100% stock accuracy will give a 100% customer satisfaction on the stock accuracy and will help to sustain the existing businesses and win more businesses.

Product Quantity Process Routing Matrix helps to identify the important processes but some are not being used up to maximum. By reprioritizing this type of processes and improving them will help the organization to increase the efficiency. As an example, an organization have an amazing WMS system but not enough staff to use the system properly. By reprioritizing this, it will help to make the WMS even more useful tool for the organization to increase the efficiency of the organization.

This matrix is a great way to find the improvements areas and it will lead the organization to think about more automations to smoothen the flow and it helps to identify the most effective processes and the processes which are not functioning effectively. This will help organization to allocate the resources and remove the inefficiencies of the processes and will help to shorten the product development time frames.

Product Quantity Process Routing Matrix

 

PQPR matrix is a combination of the Product Quantity (PQ) analysis matrix & the Process Routing analysis (PR) matrix. It is used as a valuable tool to prioritize the focus of improvement efforts on building VSM for a range of products.

 

Product Quantity (PQ) analysis matrix is the tool that shows us to focus on the product family that contributes highest volume or highest revenue as compared to other product varieties in the organization and helps the lean manager to maximize the profits

 

Process Routing analysis (PR) matrix is the tool that helps to prioritize the product family having similar process steps and the manager’s take the decision on which product family to map first

 

Operations will be benefited by using PGPR matrix:

·       When a manager wishes to develop a VSM to optimize its manufacturing processes for a variety of items,

·       When a PGPR matrix can be prepared for the entire product range.

·       When PGPR matrix aids manager in deciding which product range to prioritize for creating VSM

·       When managers prioritize boosting the organization's margins

 

Example:

XYZ manufacturer produces only pain relief products in the form of balm, spray, liquid, gel, etc.

PQPR matrix 1 shows the list of pain relief products along with their sales volume and the processes followed in manufacturing. PQPR matrix 2 explains how products having similar processes are combined to a product family

 

With the help of PQPR matrix, lean manager takes the decision to focus on products of Product family no. 1 first since high sales volume % of 42% contribute’s to organization’s revenue and the manager builds VSM for Product family no. 1 first to improve the process thereby increasing the margins. Then, he gives the 2^nd priority to Product family no. 2 and 3^rd priority to Product family no. 3 for process improvement by building VSM

 

Product Quantity Process Routing Matrix

 

This is generally a tool which is used in manufacturing and production planning.

It usually provides a structured and organized overview of a product manufacturing process, quantity specification of each material which are required for production process.

 

This is a matrix which can list various processes or operations which generally involved in product manufacturing along with other useful things like – quantities of materials, parts or components which are generally needed.

It can help to manufacturers to optimize their production process.

 

This matrix can help to bring synergies in operation in multiple ways :-

 

·       Resource allocation efficiency – It can provide detail related to quantity of material. It can suggest better resource allocation.

 

·       Inventory management optimization - It can provide clear information regarding material required at each stage, so firms can manage their inventory efficiently.

 

·       Production streamlining – It can help in sequencing, product scheduling in that way which can minimizes the downtime and maximize throughput.

 

·       Cost reduction – By reducing excess inventory, it can save extra cost and minimize operational cost.

 

·       Quality Control – It can suggest the right material which are required in production, in that way it can reduce the risk of defects and any rework.

 

·       Continuous improvement – When companies have clear information regarding material, cost etc. So that they can easily implement lean principles to reduce waste and can optimize efficiency.

 

Few real-world examples :-

 

Automotive manufacturing

It can plan the correct assembly.

It can suggest the correct type of material, so that companies can plan accordingly.

 

Food Production

In food processing, it can suggest the correct quantity and changeover time to reduce waste.

 

Electronic manufacturing

By suggesting correct quantity of material, it can help in inventory management.

It can help to identify any synergies in operation by suggesting commonalities in materials.

 

In the end, this matrix can play a very crucial role in various production lines. It can ensure the efficiency in resource planning and can contribute to enhance the overall production.

All the published answers are good. However the most comprehensive answer has been given by B Ravi Sankar. He has clearly explained the two tools in PQPR Matrix along with a relevant example.