Chapter 6

process selection

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Process
Process Design and selection
is a group of related tasks with specific inputs and outputs.
exist to create value for
the customer, the shareholder, or society.
Process design
defines what tasks need to be done and
how they are to be coordinated
among functions, people, and organizations.
Planning, analyzing, and improving processes is the essence of operations management.
Processes are planned, analyzed, and redesigned as required by changes in strategy and emerging technology.

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 POM tools used in process design are

1. Assembly drawing
2. Assembly charts
3. Process charts

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 POM tools used in process design are
Assembly drawing
simply shows an exploded view of the product.
is usually a three-dimensional drawing, known as an isometric
drawing;
the relative locations of components are drawn in relation to each other to
show how to assemble the unit/product.

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 POM tools used in process design are
Assembly charts
 is a schematic form that show how a product is assembled
 i.e., a graphic means of identifying how components flow into
subassemblies and ultimately into a final product.

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 POM tools used in process design are
Process charts:
 It is a detailed analysis of only one of the operations required to produce a
specific product
 It can be used to compare alternative methods of performing individual
operations or groups of operations
 It is a tool to be used in Business Process Reengineering (BPR) analysis

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 POM tools used in process design are
 This planning tool breakdown the operation into various elemental steps:

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 Types of Process
A. Based on the type of product flow
 Continuous(line flow and mass flow) production process
 Intermittent flow(Batch and Job Shop( Production process
 Project Production Process

B. Based on Type of Customer Order

 Make-to-Stock (Push System)
 Make-to-Order (Pull System)

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 Types of Process
Can be classified based on: product flow and customer order

A. Based on the type of product flow

a) Continuous Production Process
Usually, one primary materials such as liquid, gas, or powder moves without
stopping through the facility

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 Characteristics of Continuous production system

Highly automated system

High volume but low variety of products
Long, continuous production runs enable economies of scale (lower unit cost)
Typically high fixed cost but low variable cost
Generally less skilled labor required
Fixed path materials handling
Lower storage cost per unit
Short production time
there is a linear sequence of operation with some side flow (if necessary)
The marketing effort focuses on developing distribution channels for the large volume of output and
persuading customers to accept standardized products.
Operations are usually performed around the clock to avoid costly shut downs and start ups.

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 Limitations of continuous process
Very rigid
Lack of variety
Very high cost of downtime

Example: petroleum refineries; electric generation (in service sector); chemical

plants and plants making beer, steel, and food; paper plant ;flour milling ;
liquid and powder detergent etc.

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 Types of continuous flow can be: line or mass flow

i) Line Flow
Is a production process in which activities are arranged in a linear sequence
Used when a company produces well standardized commodity products in
very-high volume
Is typically operated for 24 hours
E.g. Oil refinery, chemical industries, steel factories, paper factories, flour milling,
sugar factories

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 Types of Process (cont.)

Continuous Work Flow

Output
variations
Few in size,
inputs shape,
and
packaging

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 Cont’d

ii) Mass production (repetitive/assembly)

Has regular and sequential flow, discrete product
Manufacture of discrete parts or assemblies using a continuous process are
called mass production.
This production system is justified by very large volume of production.
The machines are arranged in a line or product layout. Product and process
standardization exists and all outputs follow the same path
E.g. automobiles, televisions, personal computers, fast food, and most consumer goods.

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 Limitations

Following are the limitations of continuous flow process:

1. Breakdown of one machine will stop an entire production line.

2. Line layout needs major change with the changes in the product design.
3. High investment in production facilities.
4. The cycle time is determined by the slowest operation.

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 Advantages

Following are the advantages of continuous process flows:

1. Higher rate of production with reduced cycle time.
2. Higher capacity utilization due to line balancing.
3. Less skilled operators are required.
4. Low process inventory(WIP inventory).
5. Manufacturing cost per unit is low

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 Types of Process (cont.)
b) Intermittent
 When the output variety is large, each output takes a different route through the
organization, uses different inputs, requires different operations, and takes different
amounts of time and sequence; the intermittent form of processing is often used
Occurs at irregular intervals

 A product or job will flow only to those work centers that are required and will skip
the rest. This results in jumbled flow pattern

 For example in a hospital, there is a blood bank, an X-Ray department, a pathological

laboratory and so on. The flow through these departments depends of the exact needs
of the patients
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 Characteristics of intermittent flow
 Equipment's and labor organized into work centers based on similarity of skills and operations
 The product will flow to work centers
 The process is jumbled
 Longer production time
 Higher storage cost per unit
 Lower investment cost associated with use of general purpose equipment's
 Variable path materials handling
 Flexible production process
 Varied products produced
 Products are not standardized

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 Intermittent flow can be: batch or job shop

i) Batch production
Is a type of process which processes many different jobs at the same time in groups or batches
Suitable for producing varied, low volume products
 Has a feature of jumbled and intermittent flow.
Used when moderate volume of goods or services is desired, and it can handle a
moderate variety in products or services
 The equipment need not be as flexible as in a job shop, but processing is still
intermittent
The skill level of workers doesn’t need to be as high as in a job shop because there
is less variety in the jobs being processed

E.gs. Bakeries, movie theaters, airlines, magazines and books ,concerts, education
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 Cont’d

ii) job Shop Production Process

 uses general purpose equipment and has jumbled/mixed flow
 Usually operates on a relatively small scale
 Used when a low volume of high-variety goods and services will be needed
 Processing is intermittent/irregular/discontinuous
 Important characteristics of a job shop:
- high flexibility using general-purpose equipment and
- skilled workers
e.g. a veterinarian’s office processing a variety of animals’ and a variety of injuries and
diseases

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 Types of Process (cont.)

Job Shop

Many departments and

many routings
Many
Many variety
inputs of
outputs

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 Types of Process (cont.)
iv) Project Production Process
Used for one-of-a-kind production of a product to customer order
Take a long time to complete
For needs for creativity and uniqueness
No automation
Involves a large investment of funds and resources
E.g. Construction projects, ship building, air craft manufacturing
Problem:
Planning, sequencing, controlling
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 Types of Process
B. Based on Type of Customer Order
i) Make-to-Stock (Push System)
• A process designed to make standardized product for stock based on forecast
• Customer demand is fulfilled from stock
• The key performance measures:
• Production assets utilization (capacity, inventory, )
• Customer service

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 i) Make-to-Order (Pull System)
• Make- to- order process: essentially responds to the customer’s request for a
product. That is, product is designed and produced entirely to customer’s
specification. Hence, there is a high degree of customization and products/services
variety, product or services are relatively expensive, there is high degree of flexibility,
it takes longer time to fill customer order, often there is a high degree of customer
satisfaction etc.
• A process designed to respond to each customer order
• Products are produced after customer demand is known
• Key performance measures:
• Delivery time
• Percentage of completed orders
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 Types of Process (cont.)
Characteristics Make-to-order Make-to-stock
Product • Customer specific • Producer specified
• High variety • Low variety
• Expensive • Less expensive
Objective • Manage delivery lead • Balance inventory,
time and capacity capacity and service
Main problems • Delivery promises and time • Forecasting
• Capacity planning
• Inventory control

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 Process Selection
Three primary questions need to be answered in process
selection
How much variety in products or services will the system need to
handle?
What degree of equipment flexibility will be needed?
What is the expected volume of output

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 Process Selection
Factors Which Affect Process Selection

• Product or service characteristics

• Standardization and demand volume
• Market conditions
• Mass market
• Target market
• Capital intensity
• Labor availability and cost
• Management skills
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 Process Selection Matrix
Make-to-stock Make-to-order
continuous flow • High volume, highly standardized, • High volume, few major assembly
commodity products products, e.g.
• e.g. • Automobile assembly
• Oil refinery • Personal computers
• Flour milling • Television assembly
• Paint factory

Intermittent flow • Fast food • Restaurants

• Furniture • Hospitals
• Education

Project • Low volume low-low standardization • Very low volume, one of a kind
• Real estate (home construction) • Ship builders
• Aircraft assemblers
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