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Process Selection

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Vhanessa Villanueva
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56 views

Process Selection

Uploaded by

Vhanessa Villanueva
Copyright
© © All Rights Reserved
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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CHAPTER 6 PROCESS SELECTION

PROCESS SELECTION- Deciding on the way production of goods or services will be organized. It has a
major implications for Capacity planning, Layout of facilities, Equipment, Design of work systems.

This Figure provides an overview of where process selection and capacity planning fit into system
design. Forecast, product and service design and technological change all influence capacity planning
and process selection.

KEY ASPECTS OF PROCESS STRATEGY:

 CAPACITY INTENSITY- The mix of equipment and labor that will be used by the organization
 PROCESS FLEXIBILITY- The degree to which the system can be adjusted to changes in processing
requirements due to such factors as product and service design changes, volume changes and
changes in technology

TECHNOLOGY- The application of scientific discoveries to the development and improvement of


products and services and operations processes

 The term high technology refers to the most advanced and developed equipment and methods.

TECHNOLOGICAL INNOVATION- The discovery and development of new or improved products, services,
or processes for producing or providing them

THREE KINDS OF TECHNOLOGY

1. Product and service technology- Discovery and development of new products and services
2. Process technology- Methods, procedures, and equipment used to produce goods and provide
services
3. Information technology- The science and use of computers and other electronic equipment to
store, process, and send information

* All three have a major impact on: Costs, Productivity and Competitiveness
Technological advances in product and processes can yield competitive advantages. Some of the
advantages are improve in quality, increase in market share and higher productivity which can generate
substantial profits for the company.

Technology can have benefits but there is also risk involve Technical and economic issues such as Initial
costs, space, cash flow, maintenance, Integration cost, time resources and in terms of human
considerations such as Training, safety and job loss

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?
*answer to these questions will serve as a guide to selecting an appropriate process.

FIVE BASIC PROCESS TYPES


1. JOB SHOP- usually operates on a relatively small scale and used low volume of high variety
goods and services will be needed.
Example: A service example is a veterinarian office which is able to process a variety of animals
and variety of injuries and diseases.
2. BATCH- Batch processing is used when moderate volume of goods and services is desired and it
can handle a moderate variety in products or services.
Example: Bakeries which make bread, cakes, or cookies in batches.
3. REPETITIVE- Repetitive processing is used when higher volumes of more standardized goods or
services are needed.
Example: Service example is an automatic carwash.
4. CONTINUOUS- A continuous system is used when a very high volume of non-discrete, highly
standardized output is desired.
Example of non-discrete products made in continuous system includes petroleum products.
5. PROJECT- is used for work that is non-routine with a unique set of objectives to be accomplished
in a limited time frame.
Example: building a dam or building a bridge.

PRODUCT AND SERVICE PROFILING

Process selection can involve substantial investment in equipment and have a very specific influence on
the layout of facilities. Mismatches between operations capabilities and market demand and pricing or
cost strategies can have a significant negative impact on the ability of the organization to compete.
Product or service profiling can be used to avoid any inconsistencies by identifying key product or
service dimensions and then selecting appropriate processes.

Product or service profiling- linking key product or service requirements to process capabilities. Key
dimensions relate to
• Range of products or services that will be processed
• Expected order sizes
• Pricing strategies
• Expected frequency of schedule changes
• Order-winning requirements

A key question in process design is whether to automate. Automation is machinery that has sensing and
control devices that enable it to operate automatically

THREE KINDS OF AUTOMATION


 FIXED AUTOMATION- is the most rigid of three types. Sometimes referred to as Detroit type
automation it uses high-cost, specialized equipment for a fixed sequence of operations.
Primary advantages Low cost and high volume. Limitation: minimal variety and the high cost of
making major changes in either product or process.
 PROGRAMMABLE AUTOMATION- it involves the use of high-cost, general purpose equipment
controlled by a computer program that provides both the sequence of operation and specific
details about each operation.
It has a capability of economically producing a fairly wide variety of low volume products in
small batches.
 Computer Aided Manufacturing- (CAM) refers to the use of computers in process
control ranging from robots to automated quality control.
 Numerically Controlled (N/C) Machines- machines that perform operations by following
mathematical processing instructions
 The use of robots in manufacturing is sometimes an option. A robot consist of three
parts a mechanical arm, a power supply and a controller.
 FLEXIBLE AUTOMATION- evolved from programmable automation. It uses equipment that is
more customized than that of programmable automation. Flexible automation requires less
changeover time.

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