PROCESS DESIGN

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Process Design
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The design of products/services and the processes
are interrelated and should be treated together
Design the processes that produce the product
or service
Design the product or service
interaction
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Design Criteria for assessing design options
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Types of Operations Systems (manufacturing)
Variations in demand

• Engineer to Order
• Make to Order
• Make for stock
• Assemble to Order

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Types of Operations Systems (manufacturing)
Variations in demand
Engineer- To-Order
Make To-Order
Assemble- To-Order
Make-To -Stock
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PROCESS TYPES manufacturing

• In order of increasing volume and decreasing
  variety
• project process
• jobbing process
• batch process
• mass process
• continuous process
•  

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PROCESS TYPES manufacturing
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PROCESS TYPES manufacturing

• QUESTION which type?
• Specialist toolmakers
• Electricity
• Production of clothing
• Furniture restores
• Beer bottling
• Photolithography
• Refineries
• CD production
• Steel making
• Machine tool manufacturing

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PROCESS TYPES manufacturing
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PROCESS TYPES services

• In order of increasing volume and decreasing
  variety
• professional process
• service shops
• mass services
•  

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PROCESS TYPES services
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PROCESS TYPES services

• ??O??S? which type?
• Doctor
• Supermarket
• Airport
• Bank
• Car Rental
• Specialist toolmakers
• Electricity
• Production of clothing
• Furniture restores
• Beer bottling
• Photolithography
• Refineries
• CD production
• Steel making
• Machine tool manufacturing

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PROCESS TYPES services
Volume
Variety
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PROCESS TYPES services
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PROCESS TYPES services
Volume
Variety
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Types of Operations Systems (the service-process
matrix)
Schmenners Service-Process matrix
Degree of labor intensity ratio of labor cost
incurred to the value of the plant and equipment
employed Degree of interaction refers to the
degree to which the customer can intervene in the
process (e.g. a customer can call a waiter at
will) Degree of customization refers to the
degree to which the service provided is
customized to the needs of customer (e.g. a
patient in an open heart surgery)
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THE SCHMENNER MATRIX OF PROCESS - SERVICES
Degree of interaction and customization
Degree of labor intensity
Labor cost
value of the plant equipment employed
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THE SCHMENNER MATRIX OF PROCESS - SERVICES
Question Hospital?
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THE SCHMENNER MATRIX OF PROCESS - SERVICES
Hospital?
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THE SCHMENNER MATRIX OF PROCESS - SERVICES
At first sight, seem to be labor intensive,
because of the numbers of doctors, nurses and
support staff employed. However, because of the
very expensive plant and equipment employed, the
hospital has a low labor intensity ratio.
Hospital?
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Types of Operations Systems (the service-process
matrix)

• QUESTION 1.11
• Where will you position in the Schmenner matrix
• a state owned school offering an MBA course, and
• a private university, such as yours, offering an
  MBA course.

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Types of Operations Systems (the service-process
matrix)
Schmenners Service Process matrix
ANSWER 1.11 Whereas most state schools would
positioned near the bottom left-hand corner of
the matrix, it could be argued that your
university would be positioned rather near the
centre of the matrix. Your university would have
a relative low score for labour intensity
(despite the high levels of academic and support
staff) because of the high investment in
facilities such as buildings, IT systems, etc. On
the other axis, Your university has
Degree of interaction and customization
Degree of labor intensity
SERVICE FACTORY (new category)
SERVICE SHOP
PROFESSIONAL SERVICES
MASS SERVICE
designed its MBA degree programme to provide some
degree of customization as the course progress,
by presenting students with a choice of a number
of elective classes from also a number offered
(assembly-to-order)
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Types of Operations Systems (the service-process
matrix)
Schmenners Service Process matrix
QUESTION What is the purpose of system
classification.
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Types of Operations Systems (the service-process
matrix)
Schmenners Service Process matrix
ANSWER The purpose of system classification is
to allow useful observations to be made, and
actions to be taken therefore, it allows us to
know which are the most /least important
variables for the operation and compare its
characteristics with others.
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PRODUCT PROCESS MATRIX (based on Hayes
Wheelwright)
Over-standardized Inflexible
volume
variety
Manufacturing
?p??es?e?
Project
Professional service
Jobbing
More process flexibility than is needed so high
cost
Less process flexibility than is needed so high
cost
Service shop
Batch
Mass
Mass service
Continuous
Over-standardized Inflexible
The natural line of fit of process to
volume/variety characteristics
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Silvestro et al service-process model
High
More-customization -contact time than is
needed so high cost
Customization contact time discretion
Service over-standardized so high cost
High
Low
Volume of customers per unit per period
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Flow Process Chart Process mapping
Process
Description of element
Operation (an activity that directly adds value)
Inspection (a check of some sort)
Transport (a movement)
Delay (a wait, e.g. for materials)
Storage (deliberate storage, as opposed to delay)
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FLOW CHART
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Proposed Motor Drive Design
Exhibit 5.7
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Redesign of Motor Drive Assembly Following Design
for Assembly (DFA) Analysis
Exhibit 5.8
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