A) What is process design? B) What effects should process design have? C) Process types – the volume–variety effect on process design D) Detailed process design

1. Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 20104.1
4.1
Chapter 4
Process design
Shenval. Alamy

2. Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 20104.2
4.2
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.

3. Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 20104.3
4.3 The design of products/services and processes are interrelated
and should be treated together
• Products and services should be designed in
such a way that they can be created effectively.
• Product/service design has an impact on the
process design and vice versa.
• Processes should be designed so they can
create all products and services which the
operation is likely to introduce.

4. Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 20104.4
4.4
Designing processes
• There are different ‘process types’.
• Process types are defined by the volume and
variety of ‘items’ they process.
• Process types go by different names depending
on whether they produce products or services.

5. Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 20104.5
4.5
High
VolumeLow High
Variety
Project
Low
Manufacturing process types
Process
tasks
Process
flow
Diverse/
complex
Repeated/
divided
Intermittent
Continuous
Jobbing
Batch
Mass
Contin-
uous

6. Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 20104.6
4.6
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.
Project processes

7. Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 20104.7
4.7
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.
Jobbing processes

8. Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 20104.8
4.8
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.
Batch Processes

9. Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 20104.9
4.9
Higher volumes than batch
Standard, repeat products (‘runners’)
No set-ups, or almost instantaneous ones.
Low and/or narrow skills
Mass (line) processes

10. Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 20104.10
4.10
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.
Continuous processes

11. Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 20104.11
4.11
VolumeLow High
VarietyLowHigh
Service process types
Process
tasks
Process
flow
Diverse/
complex
Repeated/
divided
Intermittent
Continuous
Professional
service
Service shop
Mass service

12. Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 20104.12
4.12
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.

13. Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 20104.13
4.13
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.
Service shops

14. Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 20104.14
4.14
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.
Mass service

15. Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 20104.15
4.15
Variety
Volume
Deviating from the ‘natural’ diagonal on the product–process
matrix has consequences for cost and flexibility
None
None
The ‘natural’ line of fit of process to
volume/variety characteristics
Project
Jobbing
Batch
Mass
Continuous
Manufacturing
operations
process types
Professional
service
Service
shop
Mass
service
Service
operations
process types
More process
flexibility than
is needed so
high cost
Less process
flexibility than
is needed so
high cost

16. Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 20104.16
4.16
Delay (a wait, e.g. for materials)
Operation (an activity
that directly adds
value)
Inspection (a check of
some sort)
Transport (a movement
of something)
Storage (deliberate
storage, as opposed to a
delay)
Process mapping symbols
derived from ‘Scientific
Management’
Decision (exercising discretion)
Process mapping symbols
derived from Systems
Analysis
Direction of flow
Input or Output from the
process
Activity
Beginning or end of
process
Process mapping symbols

17. Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 20104.17
4.17
Standard sandwich process
Raw
materials
Assembly Stored
sandwiches
Move to
outlets
Stored
sandwiches
Customer
request
Sell
Take
payment
Customized sandwich – old process

18. Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 20104.18
4.18
Raw
materials
Take
payment
Customer
request
Assembly
Customized sandwich – old process (Continued)

19. Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 20104.19
4.19
The operation of
making and selling
customized
sandwiches
The outline process of
making and selling
customized sandwiches
Prepare
Assemble as
required
Take
payment
Bread and
base filling
Stored
‘bases’
Fillings
Assemble whole
sandwich
Customer request
Use standard
‘base’?
Assemble from
standard ‘base’
No
Yes
The detailed process of
assembling customized
sandwiches
Sandwich
materials and
customers
Customers
‘assembled’ to
sandwiches
Higher level process map

20. Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 20104.20
4.20
Bread and
base filling
Assembly of
‘sandwich
bases’
Assemble from
standard ‘base’
Take
payment
Assemble whole
sandwich
Customer request
Use standard
‘base’?
No
Yes
Fillings
Stored ‘bases’
Customized sandwich - new process

21. Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 20104.21
4.21
Flow process charts for processing expense
Send to accounts receivable
Reports to batch control
Reports filed
Confirm payment
Report arrives
Stamp and date report
Send cash to receipt desk
Wait for processing
Check expenses report
Wait for processing
Check employee record
Check advance payment
Send to account payable
Wait for processing
Attach payment voucher
Collect retorts into batch
Check against rules
Wait for processing
Batch control number
Check payment voucher
Log report
Batch to audit desk
Wait for batching
Batch of reports logged
Copy of reports to filing
Description of activity
Totals
8
1
2
4
5
6
7
9
10
3
18
11
12
14
15
16
17
19
20
13
26
22
23
24
25
21
7 8 5 5 1
Payment voucher to keying
Before
Reports to batch control
Reports filed
Payment voucher to keying
Confirm payment
Report arrives
Stamp and date report
Check expenses report
Wait for processing
Check reports and vouchers
Attach payment voucher
Collect retorts into batch
Batch control number
Batch to audit desk
Wait for batching
Copy of reports to filing
Description of activity
Totals
8
1
2
4
5
6
7
9
10
3
11
12
14
15
13
5 5 2 2 1
After