Process Structures
Process Structures
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Production Process Structures
Flow Processes
Job-shop Processes
Cellular Processes
Project Processes
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Selection of a process structure
Expected volume & demand pattern
for products
No. of products to be made & types
of processing each requires
Made to stock or Made to order
Physical characteristics & specific
technologies required
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Flow Processes
To structure the process according to
the “flow” of the products or
sequence of tasks that must be
performed to make them.
Work Stations
Product Out-
Flow
1 2 3 4 5
put
Materials
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Flow Processes
Continuous Flow Process
-- Paper manufacturing
Repetitive or Discrete Flow Process
-- Automobile assembling
Disconnected or Batch Flow Process
-- Book manufacturing
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Continuous Flow Process
Primarily used in process industries
Designed to produce large volumes of
a small variety of uniform products
Processing subject to very strict
specifications
Highly interconnected structure
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Continuous Flow Process
Used for some aspects of
production process for discrete
products
Very capital intensive
Highly automated and computerized
Low: direct labor costs & per unit
production costs
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Repetitive Flow Process
Often called Line process or discrete
flow process
Common version is an assembly line
Large quantities of narrow range of
products
Fixed sequence of production tasks
Use of specialized equipment
Greater Automation
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Repetitive Flow Process:
Problems
Decomposing
Assigning and combining
Accommodating
Adjusting to variation & uncertainties
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Advantages: Continuous &
Repetitive Flow Process
Equipment can be specialized
Jobs can be specialized
Material handling can be simplified
W-I-P inventories are small
Space utilization is efficient
Quality conformance is easier to
achieve
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Advantages
Production scheduling and
coordination are relatively easy
Costs are easy to monitor
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Disadvantages
Inflexible
High initial costs
Work can become tedious and boring
Production system is extremely
vulnerable
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Batch Flow Process
Also called disconnected flow process
Produce a variety of products in
different volumes
Use special equipment and jobs at each
workstation
Variation in processing times & batch
sizes
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Batch Flow Process
Material handling depends on
standard operations, & there is W-I-P
inventory
Trade-off between flexibility and
efficiency
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Batch Flow Process
Adv: Flexibility, Low Cost, High
Capacity Utilization, Staff
advantages.
Disadv: Expensive for high volumes,
Idling of resources, Large in-process
inventory, Costly material handling
equipments, Requires more space.
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Job-Shop Process
Produce small quantity of a wide
variety of products
Systems divided into work centers or
departments that are organized
around common activities.
Products can move among work
centers in any sequence providing
maximum flexibility.
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Advantages: Job-shop Process
Production Flexibility
Ability to accommodate different
processing times & lot sizes
Low initial costs for general purpose
equipment
Greater work satisfaction because of
variety of work performed.
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Disadvantages: Job-shop
Process
General purpose equipment usually less
efficient
More skilled, higher paid employees
needed
Less efficient but more flexible
material-handling methods
W-I-P inventories are needed for
keeping work centers operating & for
scheduling flexibility.
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Disadvantages: Job-Shop
Process
Require more space
Quality conformance is difficult
Variability makes scheduling and
coordinating very complex
Long throughput times
Difficult to determine profitability of
individual product.
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Why Job-Shop?
Variety or volume of products
produced make the use of flow process
impractical. (companies competing
through product customization)
Startup costs of making new products
in small quantities are normally much
less.
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Cellular Process
A mixture of mini flow processes, called
work cells, & a job-shop operation.
Dividing products that require similar
processing steps in the same sequence.
Work cell created to perform the steps
in the designated sequence for all the
products.
“Remainder” job-shop subsystem (cell).
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Cellular Process
Most commonly used as substitutes
for job-shop that need increased
productivity.
Used in place of flow processes to
obtain greater flexibility.
A popular way to organize service
operations.
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Advantages: Cellular Process
Material handling & transport are
reduced.
Setup times are reduced.
Throughput time is reduced.
In-process inventories are smaller.
Less space is needed.
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Advantages: Cellular Process
Total equipment costs often
decrease.
Workers enjoy more satisfaction.
Quality improves.
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Disadvantages: Cellular
Process
Successful implementation requires
considerable amount of work &
expertise to:
Characterize & Classify products
Design appropriate work cells
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Project Processes
Short life-cycle with a definite
beginning and a definite end.
Producing one-of-a-kind products
Likely to utilize similar skills and
equipment.
The process itself has to be
customized.
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Project Processes
Manpower deployment: tricky
Matrix form of organization is suitable
when multiple projects are being
handled.
Interdependent activities
Adv: Flexibility to customize the
product.
Dis adv: Expense.
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List of Projects
Setting up a Nuclear Power Plant
Launching a new product in the market
Conducting an EDP like Finance for non-finance
executives
Organizing an Annual Sales Conference
Computerization of Inventory
Building a modern hospital or stadium
Modernization of outdated textile mills
Community development projects
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Dominant Operations
Management Issues:
How to coordinate the wide variety of
resources that are needed for the
current project, as well as for other
projects of the organization?
How to complete the project on
schedule and within budget?
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Types of Non-Manufacturing
operations (Service)
1. On the basis of process performed:
Standard Service
Custom Service
2. On the basis of product dealt:
Providers of tangible products
Providers of service
3. Participation of customer in the
process
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Challenges of Service
Operations
Not easy to measure productivity
Difficult to establish quality
standards
Service providers generally have
contact with customers
Cannot maintain inventory
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CAD/CAM Systems
Systems integrated with computer-
controlled machines
Once a product or part design has
been completed on the CAD system, it
can be automatically encoded as
machine instructions for computer-
controlled machines.
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Advantages: CAD Systems
Saves:
Considerable time
Cost of hand-programming the
machine
Reduces chances of errors.
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Flexible Manufacturing
Systems (FMS)
Self-contained systems of computer-
controlled machines, a tool-changing
system, and a material-handling
system.
Vary widely in their complexity and
capabilities.
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Advantages: FMS
Flexibility
Cost and time reductions
Better material handling
Minimal in-process waiting
Quicker machine setups
Smaller quantities at lower cost
Firms can respond to demand
fluctuations more quickly.
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Disadvantages: FMS
Expensive
Requires considerable expertise
and planning to implement
successfully.
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Computer-integrated
manufacturing (CIM)
Tie all the database systems and all
the manufacturing equipment &
subsystems together into a single
integrated system.
Control and coordinate every phase of
production, from initial order receipt
to shipment and billing.
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CIM examples
Motorola, Texas Instruments,
Toshiba, & others have greatly
integrated their design, sales,
scheduling, manufacturing,
purchasing, and accounting
systems.
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