Operations management

1. Process Design
Module 3_Session 2

2. Factors Affecting Process Design
 Volume of product to be manufactured.
 Required quality of the product.
 Equipment that is available.
 Major Factors affecting process Design Decision
 Nature of product demand.
 Degree of vertical integration.
 Level of product/service quality.
 Degree of automation
 Level of product/Service Quality
 Degree of customer contact

3. Types of Process Design
 Process focused production system: This is a form of production
system in which production operations are grouped according to the
type of process.
Product focused production system: In this type the production
processing in the production department are organized according to the
type of product/services being produced.
Group-technology/cellular manufacturing system:This form has
recently developed. In group technology,the products or components
are placed in families or groups and separate manufacturing cells are
used to manufacture these groups

4. Manufacturing Process Types
 A manufacturing process uses manufacturing methods, operations
scheduling software, machinery, and labor to transform raw material into the
finished product. Broadly, there are five manufacturing processes, and most
businesses that create products will fall into one of these five categories.
 However, how that works for each business will differ slightly, based on their
individual products, the business' ethos, and the resources and facilities they
have available.

5. Five Types Of Manufacturing Processes:
Repetitive Manufacturing
 Basic manufacturing that creates the same product on an assembly line is engaged in the
repetitive manufacturing process. These types of rapid manufacturing operations will
produce the same or very similar products in mass 24/7.
 The manufacturing industries that utilize this type of production process includes:
• Automotive
• Electronics
• Semiconductor
• Durable consumer goods

6.  These mass production industries are ideal for repetitive manufacturing
because the consumer demand for the finished product is stable and
predictable. The assembly line will remain fairly constant, with few
changes as one product is manufactured over a period of time.
 Master plans are created on a period of time and quantity basis.
Repetitive manufacturing is often used for make-to-stock production or in
a high volume, sales order-oriented environment like automotive. Robots
and other automated high-volume manufacturing equipment are used to
increase throughput and decrease manufacturing costs in these types of
factories.

7. Discrete Manufacturing
 Discrete manufacturing is the cousin of repetitive manufacturing. It too runs
runs on production lines, but the finished goods that are created during this
this process often vary considerably.
 When switching between different product models, the assembly line
configuration must often be changed. In manufacturing facilities, this is
known as a changeover and carries setup cost in the form of time, labor, and
and resources.
 For example, in the computer industry, technology not only develops at a
constantly rapid rate but the customers demand mass customization. The
manufacturing process for producing newer computers and laptops will
require modifications to the assembly line to produce and assemble orders
that call for the latest electronic components.

8. Job Shop Manufacturing
 In the job shop manufacturing process, production areas, like workstations and workshops, are
are used instead of an assembly line. Each worker may add something to the product when it
passes through their station, before it is moved on to another, and until eventually the final
product is finished. This method of manufacturing is ideal for custom manufacturing because it
it tends to be slower and produces a low volume of highly customized products.
 Take for example a job shop that builds custom cabinets. Workers will be stationed at their
workstations, and they will add to the cabinet as it is brought to them. One may be in charge of
of sawing the lumber, another of applying resin, others in charge of polishing the varnish, and
others still in charge of assembly.
 Keep in mind that job shop manufacturing is not just for low technology products. This process
process is also used in the advanced manufacturing of fighter jets and rockets for the
aerospace and defense industry. These products are produced by highly trained professionals
who employ advanced manufacturing techniques and place a strong focus on quality control to
to ensure a high-quality build.

9. Continuous Process Manufacturing
 Continuous process manufacturing is very similar to repetitive manufacturing because it runs
24/7, creates the same or similar products repeatedly, and creates larger order quantities. The
key difference here is that the raw materials used are gases, liquids, powders, and slurries,
instead of solid-state components.
 It works almost exactly the same as repetitive manufacturing besides the difference in raw
materials. An example of this in practice might be a pharmaceutical company that produces
painkillers in larger quantities.
 Traditional industrial manufacturing industries that widely utilize continuous processes include:
 Pharmaceutics
 Chemicals/industrial gases
 Fertilizers
 Power stations
 Oil refining
 Paper
 Furnace - Steel, Iron, and Alloys

10. Batch Process Manufacturing
 The batch process of manufacture differs quite a bit from continuous process
manufacture and is more similar to discrete and job shop manufacturing. The number of
batches that are created will be enough to serve a particular customer's needs. In-
between batches, the equipment will be cleaned and left alone until another batch is
required. The raw materials used are more similar to continuous process manufacturing
as they are liquids, gases, powders, and slurries too.
 A prominent example of this is a sauce manufacturer. They may be capable of creating
many sauces - BBQ, ketchup, mayonnaise - but a customer's order may only require one
of them. Whilst they make one batch of ketchup for a customer to a specific quantity,
the mayonnaise and other sauces won't be in production - instead, the machines will be
cleaned and left until it is time to create another batch of that sauce.

11. Service Process Types
 Customers of service organization obtain benefits and satisfactions from
the services themselves and from how those services are delivered.
 The way in which service systems operate is crucial.
 Service systems which operate efficiently and effectively can give
marketing management considerable marketing leverage and promotional
advantage.
 It is clear that a smooth running service operation offers competitive
advantages, particularly where differentiation between service products
may be minimal.

12. Service Process Types
 In service systems the marketing implications of operational
performance are so important that the two functions have to
co-operate. In services, marketing must be just as involved
with the operational aspects of performance as operations
managers; that is, with the ‘how’ and the ‘process’ of service
delivery.
 Service Operations may be classified in following ways:
The type of process;
The degree of contact.

13. Service Process Types-
Line Operations:
 In a line operation there is an arranged sequence of operations or activities
undertaken. The service is produced by following this sequence. A self-service
restaurant typifies this process.
 People move through a sequence of stages although there is no reason why
customers should not remain stationary and receive a sequence of services.
The high degree of inter-relationship between different elements of a line
operation mean that performance overall is limited by performance at the
weakest link in the system and hold-ups can arise (e.g. a slow check-out
operator in a self- service cafeteria).
 Also it tends to be a relatively inflexible type of process although tasks in the
process can be specialized and made routine giving more speedy performance.
This process is most suitable in service organizations with high volumes of
fairly continuous demand for relatively standard kinds of service.

14. Service Process Types-
Job Shop Operations:
 A job shop operation produces a variety of services using different
combinations and sequences of activities.
 The services can be tailored to meet varying customer needs and to
provide a bespoke service.
 Restaurants and professional services are examples of job shop
operations.
 While flexibility is a key advantage of this type of system it may
suffer from being more difficult to schedule, from being more
difficult to substitute capital for labour in the system and from
being more difficult to calculate the capacity of the system.

15. Service Process Types-
Intermittent Operations:
 Intermittent operations refer to service projects which are one off or only
infrequently repeated.
 Examples include the construction of new service facilities, the design of
an advertising campaign, and the installation of a large computer or the
making of a major film.
 The scale of such projects makes their management a complex task.
 The scale and infrequency of these projects make them different in kind
from line and job shop operations.

16. The Degree of Contact:
 Managing service operations with a high level of customer
contact with the service delivery process presents different
challenges compared with those systems where there is a low
level of customer contact. The amount of customer contact
has an effect on may of the decisions operations managers
have to make. These kinds of systems (high contact or low
contact) have an effect upon service operations and have
implications for managers of service systems.