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3.3. The Continuum of Process Types
Dividing processes into two fundamental categories of operations is
helpful in our understanding of their general characteristics. To be more
detailed, we can further divide each category according to product
volume and degree of product standardization, as follows. Intermittent
operations can be divided into project processes and batch processes. Repetitive operations can be divided into line processes and continuous
processes. Figure 3.3 shows a continuum of process types. Next we look at what
makes these processes different from each other
? Project processes: are used to make one-of-a-kind products exactly to
customer specifications. These processes are used when there is high
customization and low product volume, because each product is
different. Examples can be seen in construction, shipbuilding, medical
procedures, custom tailoring, and interior design. With project processes
the customer is usually involved in deciding on the design of the product. ? Batch processes: are used to produce small quantities of products in
groups or batches based on customer orders or product specifications. They are also known as job shops. The volumes of each product produced
are still small, and there can still be a high degree of customization. Examples can be seen in bakeries, education, and printing shops. The
classes you are taking at the university use a batch process. ? Line processes: are designed to produce a large volume of a
standardized product for mass production. They are also known as flow
shops, flow lines, or assembly lines. With line processes the product that
is produced is made in high volume with little or no customization. Think
of a typical assembly line that produces everything from cars, computers,
television sets, shoes, candy bars, even food items. ? Continuous processes: operate continually to produce a very high
volume of a fully standardized product. Examples include oil refineries,
water treatment plants, and certain paint facilities. The products
produced by continuous processes are usually in continual rather than
discrete units, such as liquid or gas. They usually have a single input and a
limited number of outputs. Also, these facilities are usually highly capital
intensive and automated. Note that both project and batch processes have low product volumes
and offer customization. The difference is in the volume and degree of
customization. Project processes are more extreme cases of intermittent
operations compared to batch processes. Also, note that both line and
continuous processes primarily produce large volumes of standardized
products. Again, the difference is in the volume and degree of
standardization. Continuous processes are more extreme cases of high
volume and product standardization than are line processes. The above
figure positions these four process types along the diagonal to show the
best process strategies relative to product volume and product
customization. Companies whose process strategies do not fall along this diagonal may
not have made the best process decisions. Bear in mind, however, that
not all companies fit into only one of these categories: a company may
use both batch and project processing to good advantage. For example, a
bakery that produces breads, cakes, and pastries in batches may also
bake and decorate cakes to order. COMMON DRIVERS OF PROCESS DESIGN
Different process designs will target different areas of business activity,
according to organizational focus and requirements. However, most
process design projects are driven by a combination of these common
requirements:
o The need to increase efficiency:
An inefficient business process leads to poor communication, duplication
of effort, functional barriers, delays, unnecessary costs (money, materials
and manpower) and, ultimately, an output that either partially or wholly
fails to achieve its designated purpose.An
example is "mass-production" operations, which usually have much
invested in their facilities and equipment to provide a high degree of
product consistency. Often these facilities rely on automation and
technology to improve efficiency and increase output rather than on labor
skill. The volume produced is usually based on a forecast of future
demands rather than on direct customer orders. The most common
differences between intermittent and repetitive operations relate to two
dimensions: (1) the amount of product volume produced, and (2) the
degree of product standardization. Product volume can range from
making a unique product one at a time to producing a large number of
products at the same time. Product standardization refers to "a lack of variety in a particular
product".o The need to evaluate business practice as part of an organizational
development project:
For example, business process design might be required in preparation
for the implementation of enterprise technology such as ERP modules for
supply chain management or CRM, or prior to a proposed merger,
acquisition or internal restructuring project.When the product concept has been finalized,
the role of process management then is to develop cost estimates, define
process architecture, conduct process simulation and validate suppliers.At the time the product development teams are developing the prototype,
the process management teams test and try out tooling and equipment;
help build second phase -an assembly line is a prototypes-; install
equipment and specify process procedures. A business process is "a set of logically related business activities that
combine to deliver something of value (e.g. products, goods, services or
information) to a customer". While, Process design refers to "the activity
of determining the workflow, equipment needs, and implementation
requirements for a particular process".Work centers that interact frequently, with movement of material
or people, should be located close together, whereas those that have little
interaction can be spatially separated.INTRODUCTION
At the product conception stage, manufacturing proposes investigates
processes and concepts.Concurrently with the detailed product design, process management is
involved in the designing of the process, designing and developing tooling
and participating in building full-scale prototype.This would minimize the time between
customers requesting a product or service and them receiving it.
Similarly, if an operation competed on low price, cost-related objectives
would be likely to dominate its process design.Some kind of logic should link what the operation as a whole is attempting
to achieve, and the
performance objectives of its individual processes as illustrated in Table
3.1.This chapter introduces how new processes are designed, and how
existing processes are redesigned in response to changing market needs
and/or changing operational capabilities.o The need to manage human resources:
Business process design can help to identify current and future HR
competence requirements, and is often an integral part of developing a
human resource strategy.PROCEDURES FOR PROCESS DESIGN
Process design determines the best relative locations of functional work
centers.The operations manager's role is vitally important in
integrating all the contributors into the design/redesign process.THE INTERRELATION BETWEEN PROCESS
DESIGN AND PRODUCT/SERVICE DESIGN
Often scholars will treat the design of services and products, on the one
hand, and the design of the processes which make them, on the other, as
though they were separate activities.For
example, if an operation competed primarily on its ability to respond
quickly to customer requests, its processes would need to be designed to
give fast throughput times.Management coordination: Supervision and communication should be
assisted by the location of staff and communication devices.2. 3.1).5.6.???????7.