OPERATIONS MANAGEMENT

Process Selection
Process Selection: Process selection refers to deciding on
the way production of goods or services will be
organized.
Process selection occurs as a matter of course when new
production or services are being planned. However, it
also occurs periodically due to technological changes in
products or services in products or equipment, as well as
competitive pressures.
Process Selection affects the entire organization and its
ability to achieve its mission, and affects the
organization’s supply chain.
• Process selection is based on five
considerations
– Type of process; range from intermittent to
continuous
– Degree of vertical integration
– Flexibility of resources
– Mix between capital & human resources
– Degree of customer contact
 Process Selection
Three primary questions bear on process selection:
1. How much variety in products or services will the system need to
handle?
2. What degree of equipment flexibility will be needed?
3. What is the expected volume of output?
Process Types: There are five basic process types:
1. Job Shop
2. Batch
3. Repetitive
4. Continuous
5. Project
 Process Types
1. Job Shop:
• Operates on relatively small scale
• Used when a low volume is needed
• High variety of goods/services
• High flexibility using general purpose equipment
• Skilled workers

Examples: Dress designing, Medical services by doctors etc.

 Process Types
2. Batch:
• Used when moderate volume of goods or services is
desired
• Processing at regular intervals
• Equipment need not to be flexible
• The skill level of workers need not be too high

Examples: Bakeries, movie theaters, paints, ice creams

magazines etc.
 Process Types
3. Repetitive:
• Higher volumes of more standardized goods or services
• The standardized processing means only slight flexibility
of equipment needed
• Skill of workers is generally low

Examples: Automatic car wash, assembly lines etc.

 Process Types
4. Continuous:
• When a very high volume of nondiscrete goods are
required
• Highly standardized output is desired
• No need for equipment flexibility
• Workers skill requirements can range from low to high

Examples: Petroleum products, steel, sugar flour etc.

 Process Types
5. Project
• Used for work that is non routine, with a
unique set of objectives to be accomplished in
a time frame.
• Examples: putting on a play, publishing a
book, and building a bridge.
 Discuss automated approaches to
processing:
a) Automation is machinery that has sensing and control devices
that enable it to operate automatically. There are three types of
automation:
1. Fixed Automation: It uses high-cost, specialized equipment for a
fixed sequence of operations.
2. Programmable Automation: Involves the use of high-cost, general
purpose equipment controlled by a computer program that
provides both the sequence of operations and specific details about
each operation.
3. Flexible Automation: It uses equipment more customized than
that of programmable automation. A key difference between the
two is that flexible automation requires less changeover time.
 Product and Service Processes
Variety

Emergency
Job Shop Rooms

Batch Commercial
bakery

Repetitive Automatic
Car Wash

Continuous Petroleum
Refinery

Low Volume High

• 5) List some reasons for redesign of layouts:
• a) The most common reason for redesign of
layouts include inefficient operations, accident
or safety hazards, changes in the design of a
products or services, introduction of new
products and services, changes in the volume
of output, changes in methods of equipment,
changes in environmental or other legal
requirements and morale problems.
• 6) Describe the basic layout types:
• a) Product Layout: Uses standardized
processing operations to achieve smooth, rapid,
high-volume flow.
• b) Process Layout: Layouts that can handle
varied processing requirements.
• c) Fixed Position Layout: Layout where the
product or project remains stationary, and
workers, materials and equipment are moved as
needed.
List the main advantages and disadvantages of product layouts
and process layouts:
• a) Product Layouts:
Advantages:
• i. high output
• ii. low unit cost due to volume
• iii. labor specialization reduces training costs and time
• iv. high utilization of labor and equipment
• v. routing and scheduling are part of initial design,
therefore not requiring much time once the operation has
begun.
• vi. Accounting, purchasing, and inventory control are fairly
routine
Disadvantages:
• i. Intensive division of labor
• ii. Poorly skilled workers show little interest in
maintaining equipment.
• iii. System is inflexible
• iv. System is highly susceptible to shutdowns
• v. Preventative maintenance quick repairs and spare
parts inventories are necessary expenses.
• vi. Incentive plans cause variations among outputs of
workers
• b) Processes Layouts:
• Advantages:
• i. Systems can handle a variety of processing
requirements
• ii. Systems are not vulnerable to equipment
failures
• iii. General-purpose equipment is less costly
than specialized equipment
• iv. It is possible to use individual incentive plans
• Disadvantages:
• i. In-process inventory costs can be high if batch
processing is used
• ii. routing and scheduling pose continual challenges
• iii. equipment utilization rates are low
• iv. material handling is slow and inefficient
• v. job complexities often reduce the span of
supervision and result in higher supervisory costs.
• vi. Special attention necessary for each product or
customer
• vii. Accounting, inventory control and purchasing