The topic is about Process selection decisions to determine the process used to make a product or service. The considerations required for process selection includes the volume of the product and whether the product is standardized or customized.

1. Presented By: Tayyaba Latif
*

2. *
*Process selection decisions determine the
process used to make a product or service
*The considerations required for process
selection includes the volume of the product
and whether the product is standardized or
customized
*Process selection decisions are strategic in
nature
Long term perspective
Cross functional coordination

3. *
*Two main types of classifications of process
selection are given:
*One is by the product flow, including continuous
flow, assembly line, batch, job shop and project.
*Second is by the order fulfillment: Whether the
product is made to Order, assembled to Order or
made to Stock
*Process selection decisions tend to capital intensive
and cannot be easily changed
*Therefore the firm is committed to the process
choice and bound to these decisions for many years

4. *
*There are five types of product flow:
*Continuous processes
*Assembly lines
*Batch flow
*Job shop
*Project

5. *
*Continuous production refers to the so called
process industries like sugar, paper, oil and
electricity
*Output is made in continuous fashion and tends to
be highly standardized and with very high volume of
production
*Continuous process tends to make commodity
products
*For differentiation purpose low cost becomes order
winner for manufacturing to compete in very price
sensitive markets

6. *
*Continuous production tends to be highly
automated, operate at capacity, and minimize
inventories and distribution costs to reduce the
total cost of manufacturing

7. *
*Assembly line flow is characterized by a linear
sequence of operations.
*The product moves from one step to the next
in a sequential manner
*Usage of conveyor system
*It is very efficient but inflexible

8. *
*The line runs on an constant speed, so that to
alter the volume to change we have to alter
the number of hours worked by the plant
*Assembly lines can be justified in certain
situations
Investment should be great
Volume should be high

9. *
*Batch flow is characterized by production of
the product in batches or lots
*Each batch of the product travels from one
work unit to the other
*A work center is a group of similar machines or
processes used to make the product
*Variety could be ensured in batch flow in
contrast to assembly lines
*The flow is jumbled and intermitted

10. *
*Batch operations often use general purpose
equipment that is not specialized to make just
one particular product, this offers flexibility
*Labor is more skilled and flexible
*Batch operations is configured with both
equipment and labor to be more flexible than
an assembly line process

11. *
*Due to jumbled flow considerable production
scheduling and inventory challenges
*A batch operation uses a process lay out but
assembly lines uses product layout

12. *
*Job shops make products to customer order by
using a process layout
*We consider the job shop a special case of the
batch process.
*Low volume, High cost
*Like batch flow job shop use general purpose
equipment

13. *
*The project form of operations is used for
unique or creative products
*Examples are construction of building,
production of aircraft etc.
*High cost, difficult to manage
*Projects are characterized by difficult planning
and scheduling because they could not have
been made before
*Labor must be highly skilled

14. *
*The products does not flow in sequence rather
the materials and labor is delivered to the site,
as the project is stationary
*In project each unit is made individually and is
different form others
*Projects are used when customer desire
customization and innovation

15. *
*Continuous process
*Assembly line
*Batch flow
*Job shop
*Project

16. *
*MTS (make to stock)
*MTO (make to order)
*Key performance measure of an MTO is lead
time
*ATO (assemble to order)
*Back order can be given if the product is not in
inventory

17. *
*Order penetration point
*Supplier
…….fabrication…….assembly…..distribution

18. *
*Process characteristics matrix

19. *
*Product process matrix

20. *Thank You 