UNIT THREE

DESIGN OF THE OPERATION

SYSTEMS:
CHAPTER FOUR

PROCESS SELECTION
 Introduction
 Process selection
 Deciding on the way production of goods or
services will be organized
 Major implications
 Capacity planning
 Layout of facilities
 Equipment
 Design of work systems

6-3
 Process Selection and
System Design

Facilities and
Forecasting Capacity Equipment
Planning

Product and Layout

Service Design

Process
Technological Selection Work
Change Design
 Process Strategy
• An organization’s approach on process selection is

determined by the organization’s process

strategy

• Key aspects of process strategy

– Capital intensive – equipment/labor
– Process flexibility
– Technology
– Adjust to changes
– Design
– Volume
– technology
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 Technology Acquisition
 Technology can have benefits but …
 Technology risks include:
 What technology will and will not do
 Integration consideration (time, cost, resource)
 Economic issues (Initial costs, space, cash flow,
maintenance Consultants)
 Human consideration (Training, safety, job loss)

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 Process Selection

 Variety Batch
 How much
 Flexibility
Job Shop Repetitive
 What degree
 Volume
 Expected output Continuous

6-7
 Process Types
Can be classified by “frequency with which products change
(variety vs. volume)
 Project: makes a single unit. Characterized by a very high
unit cost, the work is interesting (not routine)
 Job shop
 Small scale (e.g. restaurant)
 Batch
 Moderate volume (large batches of similar products. E.g. book
publishing, insurance companies)
 Repetitive/assembly line/Mass production
 High volumes of standardized goods or services (very little
variety)
 Continuous
 Very high volumes of non-discrete goods
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 Process Types Cont…
Match the following:
Types of process Entity

Job shop Automatic carwash

Batch Emergency room
Repetitive Petroleum Refinery
Continuous Commercial bakery

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 Process Types Cont…
Put the following types of processing on their right place
(project, job shop, batch, repetitive and continuous)
Volume

V. Low Low Medium High V. High

V. Low Continuous
Variety
Low Repetitive

Medium Batch

High Job shop

V. High Project

6-10
 Process Types
Processes types can be categorized as:
1. Single or Multiple stage process
2. Make to order or Make to stock process
3. Hybrid process (both to order & stock)
4. Paced & non paced (fixed timing of the
movement of items through the process) ,
etc…

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 Choosing the best type of Process
There are many factors to consider before choosing
the type of process. Some of them are:
 Product design
 Overall demand
 Product flexibility: how quickly quite and start new product
 Human resource
 Automation
 Customer involvement
 Product quality
 Finances
 Amount of vertical integration 6-12