This presentation covers the essential parameters of Unit 2 Operations Processes of the subject Operations & Supply Chain Management. Topics Covered: Volume Variety and Flow. Types of Processes and Operations Systems - Continuous Flow system and intermittent flow systems.Job Production, Batch Production, Assembly line and Continuous Flow, Process and Product Layout. Design of Service Systems, Service Blueprinting.

1. OSCM Unit 2:
Operations Processes
By,
Prof. Sandeep D Chaudhary,
International School of Management &
Research,Pune

2. 1.
Concept of
Operations
Processes
Let’s start with the first set of
slides

3. “ A Process is defined as an
arrangement of resources
that produces some
mixture of products &
Services.”
3

4. Meaning of Operations Processes
◂ Operations processes connect with each
other to form a Network
◂ Network will comprise of various
‘departments’ & ‘units’
◂ Main task of these operations processes is the
transformation-conversion of inputs
(resources) into outputs (goods & services)
4

5. Three components of an Organization
Inputs
◂ Manpower
◂ Materials
◂ Machinery
◂ Money
◂ Technology
◂ Time
◂ Govt interaction
◂ Information
Transformation
Processes
◂ Creation of product mix
◂ Plant management
◂ Materials handling
equipment
◂ Labour management
◂ Production cost
utilization
◂ Material cost
management.
Outputs
◂ Goods/Services
◂ Satisfied
customers
5

6. Example
A Car manufacturing company
◂ Inputs: plastic, metal,
glass,rubber, wheels, tyres,
body parts, accessory
◂ Process: design,
manufacturing, painting,
assembling
◂ Output: Car

7. Exercise
Inputs
Tranformati
on process
outputs Control
Unexpected
disturbance
Post office
Labour,
equipment,
trucks
Transporta
tion,
printing
Mail
deliveries,
stamps
Weather,
mail
volumes,
sorting/loss
errors
Transportat
ion
network,
Weather,
Civil
service
Bank
Cinema
MBA
College
Hospitals 7

8. 2.
Process
Characteristics
Let’s start with the first set of
slides

9. Process Characteristics
◂ Volume
◂ Variety
◂ Flow – Continuous and Intermittent
Volume, Variety, Flow are interrelated with each other
9

10. Process Characteristics & Explanation
Volume
means total no of goods produced in
manufacturing system
10
Low-Volume
◂ Shipbuilding
◂ Construction
◂ Heavy turbine
generator
◂ BHEL
◂ Larson & Toubro
High-Volume
◂ Bread
◂ Toothpaste
◂ Soaps
◂ Bulbs
◂ Shoes
◂ Mirrors
◂ Household utilities
Mid-volume
◂ Industrial project
company
◂ Consumer durables
◂ Luxury goods

11. Process Characteristics & Explanation
Variety
means number of different products/services produced in
manufacturing systems
e.g.
◂ Mobile manufacturing company with models with various
specifications
◂ Car manufacturer with petrol, diesel variants with specifications
like automatic with power steering, power widows, safety pillows
◂ Hospitals with patient treatments offering CT Scan, X-ray, MRI,
Blood testing facilities as well as doctors of all domains
◂ Leads to increase in alternative resources, materials, skill human
resources, no. of machinery, production process
11

12. Process Characteristics & Explanation
Flow
means channel through which entire set of inputs (resources)
moves while transforming them into the final product
12
Volume-Variety relationship
Inversely proportional with each other

13. 3.
Types of production
systems
Let’s start with the first set of
slides

14. 14
Types of production systems

15. 4.
Intermittent Flow
production systems
Let’s start with the first set of
slides

16. Intermittent Flow systems
◂ Goods manufactured as per the requirement of
customers rather than producing goods for stock
◂ Production of large variety & various sizes of
products
◂ Change in production design as per design & size of
product, hence system is flexible
◂ Intermittent flow system is more complex than
continues flow since every product is treated
differently
16

17. Characteristics of Intermittent Flow
systems
◂ Type & volume of production
◂ Used for products with non-continuous demand
◂ Require skilled labor
◂ Cost of initial set-up is low but cost of
production per unit is high
◂ Larger storage area for each stage of production
for frequent stoppages in production
17

18. Examples
◂ Catering or any cooking orders is
an example of intermittent
process because food is prepared
on the basis of number of people &
the varieties of items will be
decided by the customers on the
basis of the event or any occasion.
◂ Performance of a gold smith is
another example in which
ornaments are created on the
basis of design expectations &
requirements of the customers.
18

19. Examples in India
◂ FabIndia:
Known for its handcrafted textiles,
clothing, and home furnishings, Their
products vary in design, size, and
material, catering to individual
preferences.
◂ Film Industry:
India’s vibrant film industry
(Bollywood, regional cinema, and
independent films) operates under
an intermittent production system.
Each film project is unique, with
varying budgets, genres, and artistic
visions.
19

20. Examples in India
◂ Furniture Industry:
create furniture pieces tailored to
customer needs. The designs, materials,
and dimensions vary, reflecting an
intermittent production approach.
e.g. Godrej Interio, Urban Ladder, and
Pepperfry
◂ Larsen & Toubro (L&T)::
is involved in diverse engineering and
construction projects, including
infrastructure, heavy machinery, and
industrial equipment.
Their production processes are
customized based on project
requirements, making it an
intermittent system. 20

21. Advantages
◂ Variety at low cost
◂ High capacity utilization
◂ Staff advantages
Intermittent flow system
Disadvantages
◂ More costly for high
volume
◂ Complex operations
planning & control
◂ Large In-process
inventory
21

22. 5.
Continuous Flow
production systems
Let’s start with the first set of
slides

23. Characteristics of Continuous Flow
systems
◂ Standardization of product design
◂ Standardized operations with help of special
purpose machines hence fully automatic
◂ Output is usually voluminous
◂ Production of low variety & fixed sizes of products
◂ No change in product design & size of product,
hence system is fixed
◂ Continuous flow system is less complex than
intermittent flow since every product is of standard
size & standard design
23

24. Suitability of Continuous Flow
systems
◂ Continuous demand
◂ Standardized product or process
◂ Specified task sequences
◂ Task must be defined
◂ Work conformance with quality standards
◂ Right kind of plant, equipment at every stage
◂ Synchronized operations
◂ Balanced stages
24

25. Examples of Continuous
Flow systems
◂ Food industry
Its production is based on the
demand forecast. Here, a large-
scale production of food takes
place.
◂ Fuel industry
Crude oil and other rawsources
are processed continuously on a
large scale to create petroleum
products and compensate global
energy demand.
25

26. Examples of Continuous
Flow systems
◂ Steel Production:
The production of steel involves a
seamless process of melting,
casting, rolling, and shaping raw
materials into steel products.
◂ Paper Milling:
Paper mills follow continuous
flow production to create various
paper grades.
The paper pulp undergoes a
continuous transformation,
including refining, pressing,
drying, and cutting. 26

27. Examples of Continuous Flow
systems
◂ Food Processing:
Industries producing packaged food
items (such as snacks, beverages, and
canned goods) use continuous flow
systems.
The production lines run non-stop,
ensuring consistent quality and
efficient output.
◂ Pharmaceuticals:
Pharmaceutical companies use
continuous flow processes for drug
manufacturing. Tablets, capsules, and
liquid medications are produced
seamlessly, maintaining uniform
quality.
27

28. Global Examples
◂ Case Study 1: Boeing
Boeing, a leading aerospace
manufacturer, applied continuous flow
manufacturing principles to the
production of its 737 aircraft.
They adopted assembly line techniques
and implemented a continuous flow
production system.
◂ Case Study 2: Harley-Davidson
Harley-Davidson, the iconic motorcycle
manufacturer, embraced continuous flow
manufacturing to streamline its
production process.
They applied Lean manufacturing
principles to their assembly lines.
28

29. Global Examples
◂ Case Study 3: Bisleri
Bisleri, the largest selling packaged
water brand in India, with 120 bottling
plants.
It has implemented continuous flow
manufacturing in bottling and packaging
facilities.
They optimized their production lines to
ensure a constant flow of bottling and
packaging operations..
◂ Case Study 4: Johnson & Johnson
Johnson & Johnson, a multinational
healthcare company, applied continuous
flow principles to its pharmaceutical
industry manufacturing processes. They
implemented Just-In-Time (JIT) inventory
management and continuous
improvement practices.. 29

30. Advantages
◂ Low unit cost
◂ Lower operator skills
◂ Simpler managerial
control
Continuous flow system
Disadvantages
◂ Difficult to adopt
◂ Possibility of stoppage
of line
◂ Balancing the line
◂ Low worker morale
◂ High initial cost
30

31. 5.
Types of
Intermittent Flow
production systems
Let’s start with the first set of
slides

32. 32

33. Job Shop Production System
◂ Definition
◂ Products are customized or made to order based on
specific customer requirements.
◂ Each product is unique, and production processes are
tailored to individual items.
◂ Job shops use special all-purpose equipment to
manufacture these custom products
33

34. Job Shop Production System
◂ Characteristics:
◂ Customization: Job shops excel at producing one-of-a-
kind or low-volume items.
◂ Flexibility: They can adapt to diverse product
specifications.
◂ Varied Workflows: Each job follows a different production
path.
◂ Specialized Equipment: Job shops use versatile machinery
capable of handling various tasks
34

35. Advantages
◂ Customization:
Job shops meet
individual customer
needs.
◂ Diverse Product Range:
They can handle a wide
variety of products.
◂ Craftsmanship:
Job shops often involve
skilled artisans and
craftsmen.
Job Shop Production System
Disadvantages
◂ Complex Scheduling:
Managing diverse
workflows can be
challenging.
◂ Higher Costs:
Customization and
flexibility may lead to
increased production
costs.
35

36. Examples of Job Shop
Manufacturing in India
◂ Machine Tool Shops:
These shops manufacture
specialized machine tools, such
as lathe machines, milling
machines, and CNC equipment.
Each tool is customized for
specific applications..
◂ Boutiques and Tailoring Shops:
Boutiques create custom
clothing, catering to individual
preferences.
Tailoring shops produce
personalized garments based on
measurements and design 36

37. Examples of Job Shop
Manufacturing in India
◂ Commercial Printing Shops:
Printers in job shops handle custom
printing orders.
They produce brochures, business
cards, posters, and other promotional
materials according to client
specifications.
◂ Automobile Service Centers:
Automobile repair shops operate as
job shops.
Each vehicle repair involves unique
tasks based on the car’s condition and
specific issues..
37

38. 38
Remember?
that job shops play a crucial role in
creating unique, tailor-made
products, contributing to the rich
embroidery of India’s manufacturing
landscape.....

39. Batch Production System
◂ Process Overview:
◂ In batch production, a batch of products goes through a
series of steps in a large manufacturing process to create
the final desired product.
◂ All items within a batch follow the same initial production
steps and then wait in line for subsequent phases of
production
39

40. Batch Production System
◂ Characteristics:
◂ Grouped Production: Instead of continuous assembly,
products are manufactured in batches.
◂ Variability: Each batch may have slight variations due to
factors like raw materials or minor adjustments during
production.
◂ Flexibility: Batch production allows changes along the
way, making it adaptable to different requirements
40

41. Advantages
◂ Agility: Manufacturers can
produce lines of goods in
smaller quantities, making the
overall process more agile and
efficient.
◂ Customization: Businesses can
adjust production based on
demand or specific product
variants.
◂ Generalist Equipment: Easily
convert equipment to meet
different requirements.
◂ Quality Control: Allows quality
checks at various stages,
minimizing waste.
Batch Production System
Disadvantages
◂ Compared to continuous
or mass production,
batch production cannot
compete in terms of
volume output.
◂ It is not suitable for
scenarios where goods
need to be assembled
without breaks between
each step.
41

42. Examples of Batch
Production System in India
◂ Amul:
It produces dairy products in
batches.
Items like cheese and yogurt are
manufactured using batch
production methods.
This approach allows them to
maintain product quality and
cater to the diverse preferences of
people in India..
◂ Parle Products:
It manufactures batches of
biscuits and sweets using the
batch production process. They
efficiently create high-quality
products and adapt to varying
consumer choices..
42

43. Examples of Batch production
system in India
◂ Pharmaceutical Companies:
Most Pharma adjust their production
based on demand for specific
medications.
For instance, cold and flu tablets or
seasonal allergy medication may not
be needed year-round, so they can
scale up production when required.
◂ Bakeries:
Bakery companies create a variety of
baked goods (such as bread, cakes,
and pastries) using the same
equipment (ovens, mixing bowls, and
baking trays).
Batch production allows them to
adjust production levels based on
trends and demand forecasts..
43

44. Remember?
that batch production strikes a
balance between customization and
efficiency, making it a valuable
approach for various industries....
44

45. Project Production System
◂ Process Overview:
◂ A project production system involves
complex sets of activities performed in a
specific order within a given period and
estimated expenditure.
◂ The output of a project is a product, and
these products are characterized by
immobility during transformation.
◂ Operations occur in a
fixed position assembly layout, observed
in shipbuilding, locomotive construction,
aircraft manufacturing, and road/building
construction 45

46. Project Production System
◂ Characteristics
◂ Definite Beginning and End:
◂ Each project has a clear start and finish.
◂ Fixed Position Layout:
◂ Products remain immobile during transformation.
◂ Common in large-scale projects like shipbuilding.
◂ High Cost Overruns:
◂ Delays are expensive due to rising production costs
and penalties.
◂ Personnel Challenges:
◂ Staff may be borrowed or hired temporarily.
◂ Limited interest due to project duration.
◂ Site changes disrupt normal life 46

47. Examples of Project Production System in
India
◂ Bridges:
◂ Constructing a bridge involves a unique project.
◂ Each bridge has specific design requirements,
materials, and site conditions.
◂ The project team coordinates activities such as
foundation work, structural steel fabrication, and
assembly.
◂ Examples: Howrah Bridge in Kolkata or Bandra-Worli
Sea Link in Mumbai..
◂ Dams:
◂ Building a dam is a massive project.
◂ Dams serve purposes like water storage, hydroelectric
power generation, and flood control.
◂ The construction process includes excavation,
concrete pouring, and installation of turbines.
47

48. Examples of Project production
system in India
◂ Buildings:
◂ Constructing any building, whether
residential, commercial, or
institutional, follows a project-based
approach.
◂ Architects, engineers, and construction
teams collaborate to create unique
structures.
◂ Examples: historic monuments like the
Taj Mahal, modern skyscrapers like the
Lotus Tower in Mumbai..
48

49. Remember?
that project production systems
handle diverse tasks, require
coordination, and play a vital role in
delivering complex projects... 49

50. 6.
Types of
Continuous Flow
production systems
Let’s start with the first set of
slides

51. 51
Types of Continuous
Flow Production
systems
1. Mass production
2. Process production
3. Assembly-line
production
Continuous Flow Production Systems
│
├── Mass Production
│ ├── Automobile assembly lines
│ ├── Consumer electronics
manufacturing
│ └── Standardized products in large
quantities
│
├── Process Production
│ ├── Petrochemical industry
│ ├── Cement production
│ ├── Steel manufacturing
│ ├── Sugar mills
│ └── Fertilizer plants
│
└── Assembly Production
├── Appliance assembly lines
├── Electronic device manufacturing
└── Standardized components
assembled into products

52. Mass Production System
◂ Definition
◂ Mass production is a manufacturing method that involves
producing large quantities of standardized products in a
continuous flow.
52

53. Mass Production System
◂ Characteristics:
◂ Standardization: Mass production focuses on creating
identical or highly similar products.
◂ Efficiency: It uses assembly lines or automation technology
to achieve high volume.
◂ Division of Labor: Workers specialize in specific tasks,
leading to streamlined production.
◂ Precision: Machines with preset parameters ensure
consistent quality.
53

54. Examples of Mass Production
◂ Motor Vehicles:
◂ Henry Ford pioneered mass
production with the assembly line
technique for the Ford Model T
automobile.
◂ By reducing manufacturing time for
parts, Ford drastically lowered the
time to build cars.
◂ Over 15 million Model T cars were
produced from 1908 to 1927, making
cars accessible to the general public.
◂ Canned Foods:
◂ Most canned foods are manufactured
using mass production.
◂ Items like canned vegetables, soups,
and fruits are produced in large 54

55. Examples of Mass Production
in India
◂ Games Consoles:
◂ Video game consoles like the
PlayStation and Xbox are mass-
produced.
◂ Standardized components allow
efficient assembly.
◂ Mobile Phones:
◂ The mobile phone industry relies on
mass production.
◂ Phones with similar features are
produced in vast quantities
55

56. Remember?
that mass production revolutionized
affordability and accessibility, making
everyday items available to a wider
audience.. 56

57. Process Production System
◂ Definition
◂ A process production system involves continuous
transformation of raw materials into finished products.
◂ It is used for items with continuous and high demand.
◂ Standardized inputs and a consistent sequence of
operations characterize this system..
57

58. Process Production System
◂ Characteristics:
◂ Continuous Flow: The production process operates
without interruptions.
◂ High Volume: Large quantities of products are produced.
◂ Standardization: Consistent procedures and specifications
are followed.
◂ Efficiency: Streamlined processes minimize waste and
maximize output.
58

59. Examples of Process
Production
◂ Cement Factory:
◂ Cement production involves
continuous grinding, mixing, and
kiln firing.
◂ Standardized cement bags are
produced for construction and
infrastructure projects..
◂ Sugar Factory:
◂ Sugar mills process sugarcane
continuously.
◂ Raw sugarcane is crushed,
purified, and crystallized to
produce standardized sugar... 59

60. Examples of Process
Production in India
◂ Chemical Processing:
◂ Chemical plants follow process
production.
◂ Examples include the production
of fertilizers, plastics, and
industrial chemicals..
◂ Computer Keyboards:
◂ Mass-produced computer
keyboards are created using
standardized components.
◂ The assembly process is
continuous and efficient.
◂ Other examples : Oil Refineries 60

61. Remember?
that process production systems
ensure a steady supply of essential
goods, meeting the demands of
modern society..... 61

62. Assembly Line Production System
◂ Definition
◂ An assembly line is a production process that breaks down
the manufacture of a product into sequential steps
completed in a pre-defined sequence.
◂ It is the most commonly used method in mass production
of goods.
◂ Assembly lines reduce labor costs by training unskilled
workers to perform specific tasks efficiently...
62

63. Assembly Line Production System
◂ Characteristics:
◂ Standardization: Parts are added to a product in a specific
order until the final assembly is produced.
◂ Efficiency: Workers or machines complete specific tasks as
the product moves along the production line.
◂ Maximized Output: Each worker focuses on a particular
task, increasing productivity relative to labor costs..
63

64. Examples of Assembly line
Production
◂ Automobile Final Assembly
Plants:
◂ Car manufacturing involves assembly
lines where workers install
standardized components (engines,
chassis, interiors) in a sequential
manner.
◂ Each station along the line handles
specific tasks, such as attaching doors,
installing seats, or adding electronics...
◂ Food Processing Lines:
◂ Food factories use assembly lines for
packaging and processing.
◂ Examples include bottling lines for
beverages or packaging lines for 64

65. Examples of Assembly line
Production in India
◂ Electronic Device Manufacturing
Facilities:
◂ Assembly lines produce smartphones,
laptops, and other electronic gadgets.
◂ Components like screens, batteries,
and circuit boards are assembled in a
systematic order.
65

66. Remember?
that assembly lines have
revolutionized manufacturing,
making goods more accessible and
affordable for consumers.... 66

67. 7.
Service
Blueprinting
Let’s start with the first set of
slides

68. What Is Service Blueprinting?
◂ Definition
◂ Service blueprinting is a visual tool used to map out the
end-to-end service process from both the customer’s perspective
and the internal operational perspective..
◂ It helps organizations understand the interactions, touchpoints,
and processes involved in delivering a service.
◂ Unlike customer journey maps, service blueprints include
employee actions, support processes, and backstage operations
that impact the overall service experience....
68

69. Elements of a Service Blueprint:
A service blueprint typically contains five main categories:
1. Physical Evidence:
◂ What customers (and employees) come in contact with during
the service.
◂ Includes locations (physical stores, websites), signage, receipts,
emails, etc.
2. Customer Actions:
◂ The specific actions customers take during the service process.
◂ For example, searching for information, making a reservation, or
placing an order.
69

70. Elements of a Service Blueprint:
3. Frontstage Actions:
visible actions performed by employees in direct contact with
customers.
Examples: greeting customers, serving food, or handling inquiries.
4. Backstage Actions:
internal processes and actions that customers don’t directly see.
Backstage actions support the frontstage service delivery.
Examples: food preparation, inventory management, and payment
processing.
5. Support Processes:
systems, technologies, and third-party vendors that enable the service.
Examples: reservation systems, payment gateways, and delivery
partners. 70

71. Example: Hotel Check-In Process for
accomodation
Physical
Evidence:
Hotel lobby,
reception desk,
room keys, signage.
Customer
Actions
Arriving at the hotel,
approaching the front
desk,
providing identification.
Frontstage
Actions
Front desk staff greet
the guest,
verify reservation,
assign a room, and
provide room keys.
71
Backstage
Actions
Housekeeping prepares
the room,
maintenance ensures
facilities are functional,
and security monitors
the premises.
Support
Processes:
Reservation system
(booking),
payment processing,
and key card system

72. Benefits of Service Blueprinting
◂ Clarity:
Visualizing the entire service process helps identify pain
points and opportunities for improvement.
◂ Coordination:
Aligns frontstage and backstage activities.
◂ Innovation:
Allows for targeted changes to enhance customer
satisfaction.
72

73. 73
Service Blueprint: Hotel Check-In Process
1. Physical Evidence:
- Hotel lobby
- Reception desk
- Room keys
- Signage
2. Customer Actions:
- Arriving at the hotel
- Approaching the front desk
- Providing identification
3. Frontstage Actions (Visible to Customers):
- Front desk staff:
- Greet the guest
- Verify the reservation
- Assign a room
- Provide room keys
4. Backstage Actions (Internal Processes):
- Housekeeping:
- Prepare the room
- Maintenance:
- Ensure facilities are functional
- Security:
- Monitor the premises
5. Support Processes:
- Reservation system (booking)
- Payment processing
- Key card system

74. 74

75. 75
Restaurant Service Blueprint:
1. Physical Evidence:
Restaurant interior, tables,
menus, signage.
2. Customer Actions:
Entering the restaurant,
choosing a table, ordering
food.
3. Frontstage Actions:
Wait staff greeting, taking
orders, serving food.
4. Backstage Actions:
Kitchen preparing meals,
dishwashing, restocking
supplies.
5. Support Processes:
Reservation system,
payment processing.

76. 76

77. 77
Hospital Service Blueprint:
1. Physical Evidence:
Hospital building, waiting
areas, patient rooms.
2. Customer Actions:
Checking in, meeting with
doctors, undergoing tests.
3. Frontstage Actions:
Nurses taking vitals,
doctors examining patients.
4. Backstage Actions:
Lab tests, medical records
management, pharmacy.
5. Support Processes:
Appointment scheduling,
billing systems.

78. 78

79. Bank service blueprint
79

80. 80
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