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Chap 3a
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Chap 3a


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supply chain mgt

supply chain mgt

Published in: Business, Technology

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  • 1. Types of Processes
  • 2. Process Categories
    • Recognition of different process essential;
      • For efficiency & optimum operation
      • For skills, capacity utilization & General Mgmt
    • Processes should be suitable as per competitive environment
    • Processes distinguished primarily by;
      • Volume of product produced (total & batch)
      • Fit b/w various parts of operating system
    • Five major types of processes as per above;
      • Projects, Job Shops, Batch Process, Line Flows & Continuous Process
  • 3. Projects
    • Task is to produce a unique, one-of-kind thing
    • Consist of a series of discrete steps
    • Coordination b/w functions is necessary
      • One activity must complete before other
      • Thus scheduling & sequencing imperative
      • Planning techniques play a vital role like primavera
    • Examples include R & D projects, construction, advertising campaign, racing car etc
  • 4. Job Shop
    • Involve a large no of variety but low volumes
    • Products are often customized but each may require different tasks or sequences
    • WIP inventory usually occurs b/w tasks
    • Labor content, worker skills are high
    • Machinery is not Hi-tech, cross utilization is common thus flexibility & adoptability exist
    • Offer responsiveness to customer demands
    • Examples include GP machine shops, automobile repair shops, custom dress makers
  • 5. Batch Process
    • Differ from Job shop by large lot sizes, standardized products and common tasks
    • Products possess greater similarity and thus provide less flexibility to variation
    • Has limited volumes per product so assembly line operation not feasible
    • WIP inventory is usually minimum or absent
    • Labor content relatively low
    • Examples include bookbinders, complex electronic eqpt, musical instrument makers
  • 6. Line Flows
    • Produce products in the largest volumes
    • Standardize product,limited differentiation
    • Reliance on less capital equipment
    • High labor content, skills & flexibility
    • Worker responsibility relatively high
    • WIP present in relatively less volume
    • Examples include pocket calculators, ball point pens, automobiles
  • 7. Continuous Flows
    • Produce products in the largest volumes
    • Standardize product,limited differentiation
    • Reliance on capital equipment so little labor content, skills & flexibility
    • Worker responsibility only to monitor
    • WIP inventory present in large volumes and transferred automatically
    • Less responsive to customer demands
    • Examples include steel, chemicals & paper
  • 8. Labor
    • Decreases from left to right;
      • Labor content
      • Labor skill
      • Labor training times
      • Monthly or weekly salaries payment instead of per piece price
      • Degree of worker control
      • Decision making from technology instead of labor
  • 9. Materials
    • Increases from Left to Right;
      • Materials requirement i.e certainty
      • Supplier relations are formal and longer
      • Vertical integration of materials and process
      • Raw materials & finished goods inventory
    • Decreases from Left to Right
      • WIP inventory
      • Production times/Lead times
  • 10. Planning & Control
    • Imp increases from left to right;
      • Forecast mandatory
      • Scheduling & Capacity utilization is critical
      • Quality control becomes formal
      • Coordination in early stages
    • Decreases from Left to Right
      • Information flows and coordination in later stages
  • 11. Management Tasks
    • Imp increases from Left to Right
      • Staff needs (planning etc) in lines of supervision
      • Long term planning, strategic decisions become more essential as compared to day to day operations
  • 12. Process Selection
    • Usually more than one process present in a production of a unit
    • Sharp division in process seldom absent
    • Proj Job Batch Line Cont
    • shop Process Flow Flow
    • Processes are selected based upon things they do well
    • Process should match the firms strategy, product, market and external environment
  • 13. Process Selection
    • Before selection, detailed understanding required for;
      • Present and future cost of operations & maintenance
      • Volume, quality, flexibility of output
      • Required raw materials, energy and other inputs
      • Risks and uncertainties
    • After selection, process peculiar demands are met ;
      • Material requirements, capacity utilization & planning critical for line/continuous process
      • Removing the bottleneck, scheduling and loading the plant are critical for job shop / batch process