The document discusses five major process decisions that must be considered: process choice, vertical integration, resource flexibility, customer involvement, and capital intensity. It describes the five basic process types - job shop, batch, repetitive/assembly line, continuous, and project processes - and provides examples of each. Vertical integration refers to how much of the production and distribution chain a firm owns. Resource flexibility means having a workforce with multiple skills. Customer involvement is the extent to which customers interact with the process. Capital intensity refers to using machines and equipment rather than human labor.

1. MAJOR PROCESS DECISIONS
There are Five common process decision considered:
I. Process Choice.
II. Vertical Integration.
III.Resource Flexibility.
IV.Customer Involvement.
V. Capital Intensity.

2. Process Choice
 There are 5 basic process types:
I. Job Shop.
II. Batch.
III. Repetitive or Assembly line.
IV. Continuous.
V. Project.

3.  Job shop process:
Each job requires diff. processing req.
Example: tool and die shop where process is carried to
produce one kind of tools.
They often carry out jobs for other firms.
Used when low vol. of high variety of goods needed.

4.  Batch process:
Here vol. are high because same or like products are
repeatedly provided.
Example: Soft drinks,boooks,magazine.
Used when moderate vol. of goods or service is req.

5.  Repetitive Process:
It is also known as line process.
As it include production lines and assembly lines.
Resources are org around a product move in flow from
one operation to the next accordingly.
This is suitable to “manufacture-to-stock” strategy.

6.  Continuous process:
Used when a standardized product in high vol.
These process often is capital intensive
Example: steel,sugar,flour,cement.

7.  Project process:
Projects tend to be complex,take a long time and
consists of large no.of complex activities.
Here the equip. flexibility and labor ranges from low
to high.
Examples: building a shopping centre,dam,bridge.

8. VERTICAL INTEGRATION
 The amount of the production and distribution chain
which is brought under the ownership of the firm.
 The mgmt considers activities from acquisition of
R.M to delivery of finished goods to customer.
 In which the firm wants to decide how many
production process needed and designed to carry out
and how many by outsourcing.
a) Backward integration.
b) Forward integration.

9. Resource Flexibility
 Means the flexibility of resources such as employees,
facilities and equip.
 Flexible work force which will provide reliable customer
service and avoids bottlenecks.
 Its is better to have permanent workforce with multiple
skills.

10. CUSTOMER-INVOLVEMENT
 The extent to which customers interact with the process.
 Firms competes on customization allows customers to
come up with their own product.
 Example: Furniture making.

11. CAPITAL INTENSITY
 Means the predominant resources used in manufacturing
consists of machines and equip. rather than human labour.
 Here it increases the production quality and productivity.
 P.S: huge costs for low level operations.