Chapter 4

Process design

https://www.youtube.com/watch?v=ANXGJe6i3G8

Key operations questions

Process design implies the following key
questions:

What is process design?

What objectives should process design have?
How does volume and variety affect process design?
How are processes designed in detail?

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.

Product design: Smart car uses environmentally

friendly design principles

Sources of raw materials

Labour conditions

Energy consumed in the

process

Waste created by the process

Life of product

End of life of product

Processes Design Assessment

The design of any process should be judged on its
quality, speed, dependability, flexibility and cost
performance.
Ops performance objectives process design objectives
Considerations:
Throughput time avg. time that a unit spends in the process
Throughput rate (or flow rate) rate at which units emerge from the process
Cycle time times between item emerging from the process
Work in process (WIP) items in the process (avg/period time)
Utilization proportion of available time the process is not idle

Designing processes

There are different process types.

Process types are defined by the volume and
variety of items they process, i.e., the volumevariety effect on process design.
Process types go by different names depending
on whether they produce products or services.

Process
tasks

Process
flow

Diverse/
complex

Intermittent

High

Manufacturing process types

Project

Variety

Jobbing

Batch

Mass

Continuous

Continuous

Low

Repeated/
divided

Low

Volume

High

Projects Processes

One-off, complex, large scale, high work content

products
Specially made, every one customized
Defined start and finish: time, quality and cost objectives
Many different skills have to be coordinated.

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, complete whole product.

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.

Mass (line) processes

Higher volumes than batch

Standard, repeat products (runners)
Low and/or narrow skills
No set-ups, or almost instantaneous ones.

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.

What sort of process for the

following?
n
n
n
n
n
n

Project
Jobbing
Batch
Mass
Continuous

Porcelain cups and saucers

Shoes
Gas refining
Very expensive watches
Washing machines
Nuclear power station

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Process
tasks

Intermittent

Professional
service

Service shop

Variety

Diverse/
complex

Process
flow

High

Service process types

Repeated/
divided

Continuous

Low

Mass service

Low

Volume

High

Professional service

High levels of customer (client) contact.

Clients spend a considerable time in the service process.
High levels of customization with service processes being
highly adaptable.
Contact staff are given high levels of discretion in
servicing customers.
People-based rather than equipment-based.

Service shops

Medium levels of volumes of customers

Medium, or mixed, levels of customer contact
Medium, or mixed, levels of customization
Medium, or mixed, levels of staff discretion.

Mass service

High levels of volumes of customers

Low to medium levels of customer contact
Low, or mixed, levels of customization
Low, or mixed, levels of staff discretion.

Classify the following:

n
n
n
n
n
n

Self-service filling station

McDonalds
Supermarket
Hairdresser
Tailor
Bus service

Professional
Shop
Mass

Detailed process design: Process mapping

Process mapping symbols
derived from Scientific
Management

Process mapping symbols

derived from Systems
Analysis

Operation (an activity

that directly adds
value)

Beginning or end of
process

Inspection (a check of
some sort)

Activity

Transport (a movement
of something)

Input or Output from the

process

Delay (a wait, e.g. for materials)

Direction of flow
Storage (deliberate
storage, as opposed to a
delay)

Decision (exercising discretion)

Example getting ready for work (mantype)

Water

Marmalade

Bread

Coffee

Alarm
goes off

Put on
kettle

Put on
toaster

Shower

Look
in
mirror

Get
dressed

Leave

Eat
breakfast

Wait for
bus

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Flow process charts for processing expenses

Description of activity
Report arrives

Description of activity
Report arrives

Check expenses report

Stamp and date report

2
3
4

Check expenses report

Attach payment voucher

Send cash to receipt desk

Wait for processing

5
6

Wait for batching

Collect retorts into batch

1
2
3
4
5
6

Wait for processing

Check advance payment

7
8 Send to accounts receivable
9
Wait for processing
10
Check employee record
11
Send to account payable
Attach payment voucher
12
Check against rules

15
16

Wait for batching

Collect retorts into batch

17
18
19

Batch to audit desk

Wait for processing

20
21
22
23
24

Batch to audit desk

7
8
Wait for processing
9 Check reports and vouchers
Reports to batch control
10
11
Batch control number
Copy of reports to filing
12
Reports filed
13
14 Payment voucher to keying

Log report

13
14

Stamp and date report

15

Confirm payment
Totals

5 5 2 2 1

Batch of reports logged

Check payment voucher

Before

Reports to batch control

Batch control number

After

Copy of reports to filing

Reports filed
25 Payment voucher to keying
26
Confirm payment
Totals

7 8 5 5 1

Flow & Bottlenecks

Demand
Place an
order

Toast
buns

Add
dressings

Add meat
patties

Package

Deliver

Toaster Worker 2
Worker 1

Worker 3

Worker 4

Worker 5

1800

1800

Customers

Operations:
Cashier

Capacity rate of the operations: (orders/hour)

450

360

450

600

Capacity rate of the whole process: ______360____ orders / hr

Demand: 400 orders / hr

Where is the bottleneck? How to meet demand?

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The Bottleneck
A bottleneck is the operation that limits the output or service rate
of the entire process.

input

output

In a production line, the slowest process or the process with the

least capacity is referred to as the bottleneck.

What If We Add a Cashier?

Place an
order
Place an
order
Operations:
Two
Cashiers

Toast
buns

Add
dressings

Add meat
patties

Package

Deliver

Toaster Worker 2
Worker 1

Worker 3

Worker 4

Worker 5

1800

1800

Customers

Capacity rate of the operations: (orders/hour)

900
(2 x 450)

360

450

600

Capacity rate of the whole process: _____360_____ orders / hr

Demand: 400 orders / hr

Any help to improve this process?

12

What If We Add a Toaster?

Place an
order

Toast
buns
Toast
buns

Add
dressings

Operations:
Two toasters
Cashier
Worker 1

Worker 2

Add meat
patties

Worker 3

Package

Deliver

Customers

Worker 4 Worker 5

Capacity rate of the operations: (orders/hour)

450

720
(2 x 360)

450

600

1800

1800

Demand: 400 orders / hr

Capacity rate of the whole process: ____450____ orders / hr

Which operation is the bottleneck now?

The Bottleneck
To increase capacity rate of the entire process, focus on
increasing service or output rate of the bottleneck.

The bottleneck is usually fully utilized while other

resources are not fully utilized.

The bottleneck can change/move when capacity is added

Double bottleneck capacity double system capacity?
How would you double system capacity?

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The Concept Design Services Case Study

Where we are
1. This Session we covered:
-Chapter 2
-Chapter 4
2. Next Session please read:
-Chapter 18
-Chapter 20 (pages 645-656)
-Assigned Groups Group Project Part 1

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