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PROCESS SELECTION
                    Chapter 4


INTRODUCTION to Operation Management
4e, Schroeder
McGraw-Hill/Irwin   Copyright © 2008 by The McGraw-Hill Companies, Inc., All Rights Reserved.
Product-Flow Characteristics
Types of Product Flow
  –   Continuous process
  –   Job shop
  –   Assembly Line
  –   Batch
  –   Project




                                 4-2
                                 4-2
Continuous Process
Its name derives from how materials move
through the process. Usually one primary
material, such as a liquid, gas, wood fibers, or
powder, moves without stopping through the
facility.
Example: Oil refinery




                                               4-3
                                               4-3
Product-Flow Characteristics
      Continuous Process
Process industries (beer, paper, oil, etc.)
Highly standardized and automated
High volumes of production
Flexibility limited




                                              4-4
                                              4-4
Assembly Line Flow
Materials move linearly from one operation to
the next according to a fixed sequence, with
little inventory held between operations.
Each operation performs the same process
over and over with little variability in the
products or services provided. Production
orders aren't directly linked to customer
orders, as is the case with project and job
processes.
Example: Automobile production line         4-5
                                            4-5
Assembly Line Flow
Manufacturers with line flow processes often
follow a make-to-stock strategy, with standard
products held in inventory so that they are
ready when a customer places an order. This
use of a line flow process is sometimes called
mass production.




                                             4-6
                                             4-6
Product-Flow Characteristics
      Assembly Line Flow
Linear sequence of operations
Discrete products (autos, appliances, etc.)
High-volume, standardized products
Inflexibility in product and volume
Very efficient
Large capital investment


                                              4-7
                                              4-7
Assembly Line Flow
      (metal bracket, see fig. 4.1)




cut           drill          bend   paint



      Task or work station

      Product flow


                                            4-8
                                            4-8
Batch Process
A batch process is similar to a job shop,
except that the sequence of activities tends to
be in a line and is less flexible.
Products are produced in batches, for example,
to fill specific customer orders.
Example: Bakery



                                             4-9
                                             4-9
Batch Process
A batch of one product or customer group is
processed, and then production is switched to
the next one.
Eventually, the first product or service is
produced again.
A batch process is similar to a job shop,
except that the sequence of activities tends to
be in a line and is less flexible. The activities,
while in-line, are disconnected from one
another.                                         4-10
                                                 4-10
Product-Flow Characteristics
          Batch Flow
Production of batches or lots
Batches flow from one work center to another
Low volume products
Many different types of products
Flow is jumbled and intermittent
Flexible labor and equipment


                                           4-11
                                           4-11
Batch Flow
(three metal brackets, see fig. 4.2)

                  Bend

                                    Batch A
      Cut                 Paint     Batch B
                                    Batch C

                  Drill


 Task or work station             Product flows



                                              4-12
                                              4-12
Job Shop
A job shop is a flexible operation that has
several activities through which work can
pass. In a job shop, it is not necessary for all
activities to be performed on all products, and
their sequence may be different for different
products.
Example: Printing and Machine shop


                                               4-13
                                               4-13
Job Shop, continued
To illustrate the concept of a job shop,
consider the case of a machine shop. In a
machine shop, a variety of equipment such as
drill presses, lathes, and milling machines is
arranged in stations. Work is passed only to
those machines required by it, and in the
sequence required by it. This is a very flexible
arrangement that can be used for wide variety
of products.
                                              4-14
                                              4-14
Job Shop, continued
Companies choosing a job process often bid
for work. Typically, they make products to
order and don't produce them ahead of time.
The specific needs of the next customer are
unknown, and the timing of repeat orders from
the same customer is unpredictable. Each new
order is handled as a single unit--as a job.



                                           4-15
                                           4-15
Project
In a project, the inputs are brought to the
project location as they are needed; there is no
flow in the process.
The firm brings together the resources as
needed, coordinating them using project
management techniques.
Since there is no flow of product - the quantity
produced usually is equal to one.
Example: building construction
                                              4-16
                                              4-16
Factors Affecting Process Choice

    Market conditions and competition
    Capital requirements
    Labor supply and cost
    State of technology




                                        4-17
                                        4-17
PRODUCT-PROCESS MATRIX (Figure
                                                4.5)
                                                Low volume,
             Unique, one of   Low volume,                   Higher volume   High volume, high
                                                Multiple
             a kind           low                           few major       standardization,
                                                 products
             product          standardization                 products      commodity



Project
                  Building                                                 NONE
Job Shop
                                   Printing



                                                  Heavy
Batch
                                                 Equipment

                                                                 Auto
Assembly                                                        assembly
line

                                                                                Sugar
Continuous    NONE                                                             Refinery




                                                                                                4-18
                                                                                                4-18

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Process selection

  • 1. PROCESS SELECTION Chapter 4 INTRODUCTION to Operation Management 4e, Schroeder McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc., All Rights Reserved.
  • 2. Product-Flow Characteristics Types of Product Flow – Continuous process – Job shop – Assembly Line – Batch – Project 4-2 4-2
  • 3. Continuous Process Its name derives from how materials move through the process. Usually one primary material, such as a liquid, gas, wood fibers, or powder, moves without stopping through the facility. Example: Oil refinery 4-3 4-3
  • 4. Product-Flow Characteristics Continuous Process Process industries (beer, paper, oil, etc.) Highly standardized and automated High volumes of production Flexibility limited 4-4 4-4
  • 5. Assembly Line Flow Materials move linearly from one operation to the next according to a fixed sequence, with little inventory held between operations. Each operation performs the same process over and over with little variability in the products or services provided. Production orders aren't directly linked to customer orders, as is the case with project and job processes. Example: Automobile production line 4-5 4-5
  • 6. Assembly Line Flow Manufacturers with line flow processes often follow a make-to-stock strategy, with standard products held in inventory so that they are ready when a customer places an order. This use of a line flow process is sometimes called mass production. 4-6 4-6
  • 7. Product-Flow Characteristics Assembly Line Flow Linear sequence of operations Discrete products (autos, appliances, etc.) High-volume, standardized products Inflexibility in product and volume Very efficient Large capital investment 4-7 4-7
  • 8. Assembly Line Flow (metal bracket, see fig. 4.1) cut drill bend paint Task or work station Product flow 4-8 4-8
  • 9. Batch Process A batch process is similar to a job shop, except that the sequence of activities tends to be in a line and is less flexible. Products are produced in batches, for example, to fill specific customer orders. Example: Bakery 4-9 4-9
  • 10. Batch Process A batch of one product or customer group is processed, and then production is switched to the next one. Eventually, the first product or service is produced again. A batch process is similar to a job shop, except that the sequence of activities tends to be in a line and is less flexible. The activities, while in-line, are disconnected from one another. 4-10 4-10
  • 11. Product-Flow Characteristics Batch Flow Production of batches or lots Batches flow from one work center to another Low volume products Many different types of products Flow is jumbled and intermittent Flexible labor and equipment 4-11 4-11
  • 12. Batch Flow (three metal brackets, see fig. 4.2) Bend Batch A Cut Paint Batch B Batch C Drill Task or work station Product flows 4-12 4-12
  • 13. Job Shop A job shop is a flexible operation that has several activities through which work can pass. In a job shop, it is not necessary for all activities to be performed on all products, and their sequence may be different for different products. Example: Printing and Machine shop 4-13 4-13
  • 14. Job Shop, continued To illustrate the concept of a job shop, consider the case of a machine shop. In a machine shop, a variety of equipment such as drill presses, lathes, and milling machines is arranged in stations. Work is passed only to those machines required by it, and in the sequence required by it. This is a very flexible arrangement that can be used for wide variety of products. 4-14 4-14
  • 15. Job Shop, continued Companies choosing a job process often bid for work. Typically, they make products to order and don't produce them ahead of time. The specific needs of the next customer are unknown, and the timing of repeat orders from the same customer is unpredictable. Each new order is handled as a single unit--as a job. 4-15 4-15
  • 16. Project In a project, the inputs are brought to the project location as they are needed; there is no flow in the process. The firm brings together the resources as needed, coordinating them using project management techniques. Since there is no flow of product - the quantity produced usually is equal to one. Example: building construction 4-16 4-16
  • 17. Factors Affecting Process Choice Market conditions and competition Capital requirements Labor supply and cost State of technology 4-17 4-17
  • 18. PRODUCT-PROCESS MATRIX (Figure 4.5) Low volume, Unique, one of Low volume, Higher volume High volume, high Multiple a kind low few major standardization, products product standardization products commodity Project Building NONE Job Shop Printing Heavy Batch Equipment Auto Assembly assembly line Sugar Continuous NONE Refinery 4-18 4-18