Process Selection

Chapter 3, Part 2

MGMT 326

Foundations

of Operatio

nsIntroductio

n

Strategy

QualityAssuran

ce

Capacity,Facilities,& WorkDesign

Planning& Control

Products &

Processes

ProductDesign

ProcessDesign

ManagingProjects

Process Selection

ProcessDesign Tools• Reengineering• Flowcharts

Intermittent

• Project• Batch

Process Types

Repetitive• Assembly line• Continuous

Impact of Process Type• Layout• Inventory policy

Intermittent Operations

Intermittent operations: processes used to produce a variety of products with different processing requirements at lower volumes Project processes: used to make one-of-a-

kind items to customer specifications Batch processes: used to make small

quantities of products in batches based on customer orders or specifications Also called job shops

Repetitive Operations

Repetitive operations: Processes used to make one product or a few standardized products in high volume Line process – also called an assembly line

or flow shop May have assemble-to-order options

Continuous process: operates continuously, produces a high volume of a fully standardized product

Some firms use more than one type of process

Underlying Process Relationship Between Volume and Standardization

High-volumeprocesses areusually morestandardizedthan low-volumeprocesses.

Process Choice and Layout

Intermittent operations usually use a process (department) layout: workers & equipment are grouped by function•Different products may take different paths through the production processRepetitive operations use a product layout: workers & equipment are grouped in the order in which they will be needed. The product passes from one work station to the next.

Process Choice and Layout

Process Layout

Project Process

Batch (job shop) Process

Mass production(line flow or flow shop)

Product

Continuous Product

Hybrid Layouts

A hybrid layout is a combination of a product layout and a process layout.

Example: In a grocery store, products are

displayed by department (process layout)

The checkout line has a product layout.

Process Choice and Inventory Policy

Process Choice and Inventory Policy (2)

Process Inventory Policy

Project Make-to-order

Batch (job shop) Make-to-order

Mass production(line flow or flow shop)

Make-to-stock ORAssemble-to-order

Continuous Make-to-stock

Process Design Tools

Process flow analysis is a tool used to analyze and document the sequence of steps within a total process. Usually first step in process reengineering.

Process reengineering is the fundamental rethinking and radical redesign of a process to bring about dramatic improvements in performance Cost Quality Time Flexibility

Process Design Tools (2)

Both operations processes and business processes can be re-engineered.

Re-engineer a process before you automate it or computerize it.

Process Flow in a Pizza Restaurant