Chapter 4

Process design

Source: Joe Schwarz, www.joyrides.com

 Process design

Process design
Operations
Supply network design strategy

Layout
Operations
and flow management
Design Improvement

Process Job
technology design Planning and
control
Product/service
design
Nature and purpose of the design activity

Products, services and the processes which

produce them all have to be designed

Decisions taken during the design of a product or

service will have an impact on the decisions
taken during the design of the process which
produces those products or services, and vice
versa
Design of products / services and design of processes
are interrelated and should be treated together

Designing the Designing the

product or service process

Processes should be
Products and services Product / service designed so they can
should be designed in design has an create all products
such a way that they impact on the and services which
can be created process design and the operation is likely
effectively vice versa to introduce
 Design of Design of Design of Design of
the Product the Process the Service the Process

In manufacturing operations In most service operations

overlapping the activities of the overlap between service
product and process design and process design is
is beneficial implicit in the nature of
service
 Designing processes

There are different process types

Process types are defined by the volume and

variety of items they process

Process types go by different names

depending on whether they produce products or
services
 Manufacturing process types
Process Process
tasks flow

High
Diverse/
Intermittent
complex

Variety
Low

Repeated/ Continuous
divided
Low Volume High
 Project processes

One-off, complex, large-scale products with

high work content

Specially made, every one customized

Defined start and finish: time, quality and cost

objectives

Many different skills have to be coordinated

A project process describes the whole process
 Jobbing processes

Very small quantities: one-offs, or only a few

required

Specially made: high variety, low repetition,

strangers, every one customized

Skill requirements are usually very broad

Skilled jobber, or team, completes whole

product
Preparing photolithography materials on a jobbing basis
with a typical process map
 Batch processes

Higher volumes and lower variety than for

jobbing

Standard products, repeating demand. But can

make specials

Specialized, narrower skills

Set-ups (changeovers) at each stage of

production
A batch process in a kitchen
 Mass (line) processes

Higher volumes than batch

Standard, repeat products (runners)

Low and/or narrow skills

No set-ups, or almost instantaneous ones

A mass process a packing process
 Continuous processes

Extremely high volumes and low variety:

often single product

Standard, repeat products (runners)

Highly capital-intensive and automated

Few changeovers required

Difficult and expensive to start and stop the

process
Part of a continuous process
 Service process types
Process Process
tasks flow

High
Diverse/
Intermittent
complex

Variety
Low

Repeated/ Continuous
divided
Low Volume High
 A professional service
Consultants planning how best to help their client
A service shop This health club offers some variety
within a standard set of facilities and processes
 A mass service This call centre can handle
a very high volume of customer enquiries because it
standardizes its process

Source: Royal Bank of Scotland Group

Deviating from the natural diagonal on the productprocess
matrix has consequences for cost and flexibility

Manufacturing Volume Service

operations Variety
operations
process types process types

Project None
Professional
More service
process
Jobbing flexibility
than is
needed so
high cost Service
Batch Less process
shop
flexibility than
is needed so
high cost
Mass
Mass
service
Continuous None

The natural line of fit of process to

volume/variety characteristics
Deviating from the natural diagonal on the productprocess
matrix has consequences for cost and flexibility
Volume
Variety

None
Old
Old process,
process new
product

New
process,
new
product

None
 Flow (layout), technology and job design are all influenced
by process positioning
Volume
Flow Technology Jobs
Variety

Unorganized Little / Varied / high None

Custom
general discretion
furniture
maker
Machine
tool maker

Automobile
factory
Petro-
chemical
Routine / low
Predictable Specialist None refinery
discretion

Manufacturing
 Flow (layout), technology and job design are all influenced
by process positioning
Volume
Flow Technology Jobs
Variety

Unorganized Little / Varied / high None

general discretion Investment
banking
Customer
service
branch

Bank call
centre

Credit card
Routine / low processing
Predictable Specialist None
discretion

Services
The Service Package (or Bundle) is a concept used to alayse
and design services and consists of the following 4 features:

1 Supporting Facility.

2 Facilitating goods.

3 Sensual benefits or Explicit services

4 Psychological benefits or Implicit services

Service Management Fitzsimmonds and Fitzsimmonds, Service Management 4th Edition, 2004, McGraw Hill. (p22)
Supporting Facility

Architectural appropriateness
Interior decorating

Facility layout

Supporting equipment

Service Management Fitzsimmonds and Fitzsimmonds, Service Management 4th Edition, 2004, McGraw Hill. (p22)
 Facilitating goods

Consistency
Quantity

Selection

Service Management Fitzsimmonds and Fitzsimmonds, Service Management 4th Edition, 2004, McGraw Hill. (p22)
Explicit services

Training of service personnel

Comprehensiveness

Consistency

Availability

Service Management Fitzsimmonds and Fitzsimmonds, Service Management 4th Edition, 2004, McGraw Hill. (p22)
 Implicit services

Attitude of service personnel

Privacy and security
convenience
Atmosphere
Waiting
Status
Sense of well-being

Service Management Fitzsimmonds and Fitzsimmonds, Service Management 4th Edition, 2004, McGraw Hill. (p22)