PROCESS

Design
GROUP 2
 CONTE
01 INTRODUCTION
NTS 04 FACILITY LAYOUT

02 MAKE-TO-ORDER AND 05 SOME IMPORTANT

MAKE-TO-STOCK “TIMES” TO BE
FAMILIAR WITH

03 PROCESS TYPES 06 PROCESS

FLOWCHARTING
 INTRODUCTION

• Process design in operations management tells us

about the sequence of operations that would be
performed on a set of inputs to get a desired output.

• In any organization take a set of input resources,

which are then used to transform something into
output of products or sevices
EDRALYN PARAGOYA
 • In designing
ADD the
YOUR TITLE actual process, particularly the number and sequence
HERE
of steps, several important factors need to be considered.
1. Product variety – Is the product highly standardized, or is the product highly
customized?

2. Volume of output – Is the business created to produce large volumes or a small

amount of output?

3. Is the technology to be used general purpose or specialized? Is it capital intensive?

4. The skill level of employees, it is very high or low?

5. What is the expected duration?

EDRALYN PARAGOYA
 Capacity for large or Very high or low skill
small amounts of level?
output?

Output Production
Product Technology Employees
volume Lifespan
variety

Highly standardized or Short or lengthy

General purposes or
customized? processes?
specialized?
Capital intensive?

EDRALYN PARAGOYA
MAKE-TO-ORDER AND
MAKE-TO-STOCK Make-to-order

• It is useful to categorize processes as either make-to-order or make-to-stock.

• In a make-to-order business, the customer’s order is not manufactured until the
order is received. This allows customization to the exact specifications that the
customer requires. It may also be referred to as build-to-order. This type of
production is considered a pull type system. The work is “pulled” through the
process when customer demand is present.
• The disadvantage of this type of system is that it takes time for the firm to acquire
any materials and needed components, and then to schedule and produce the
customers order. Goods are made in small amounts, and may be more expensive
• The advantage of this type of process is that inventory is lower than in a typical
make-to-stock system. There is not any uncertainty about what the customer desires
and there is no obsolete stock to be disposed of. Dell Computer has utilized this
type of system to produce personal computers very successfully.
Jayson Fraga
MAKE-TO-ORDER AND
Make-to-stock
MAKE-TO-STOCK

• In a make-to-stock process, goods are produced in

anticipation of customer demand, usually from a sales
forecast. These products are generally made in larger
amounts and put into storage to wait for customer orders.
Although the unit cost may be lower due to large production
volumes, there may be losses due to forecast error, excess
inventory, obsolescence and theft. Lead times however are
short because goods are available when the customer places
the order. These goods are not customized, but standardized.

Jayson Fraga
 PROCESS TYPES

01 Project

A one-time event, such as construction

of an apartment building,
implementation of a new ERP system,
or writing a book, would all be
considered a project type of process.
Each of these projects have a high
degree of customization, substantial
use of resources, and a complex set of
related activities. There is only a single
output at the end of the project. Bryan Jampit
 PROCESS TYPES

02 Job Shop
Many businesses have a job shop type of process. This is
most commonly used when the product being produced is
unique for each customer. It is a make-to-order type of
business where production is intermittent (i.e. rather than
one entire product being completed at a time, work will
continue on multiple products as time permits). Often the
product has unique characteristics for each customer. The
workers in this type of business are very highly skilled in
their craft or trade. Often they are referred to as craftsmen
or makers. The volume of output is low in a job shop. The
equipment used is quite general purpose. Examples
include a small bakery that produces beautiful custom
wedding cakes, or a business that makes custom guitars or
bicycles based on the customers measurements and
preferences of materials and components. Bryan Jampit
 PROCESS TYPES

03 Batch
Some businesses are in the situation where they make
groups of identical products on a regular basis. These
groups are referred to as a batch. The batch will progress
through a set of steps to be completed from the start to the
end. An organization may have multiple batches at
different stages coming through the process. This type of
processing is also intermittent. (start, stop, start) There is
less variety in this type of business (compared to a job
shop) and the equipment used will be relatively general
purpose and suited to the industry that they are in.
Employees need to be skilled and experienced at operating
that equipment and producing these products. Examples of
products made using batch production are baked goods,
aircraft parts, clothing, and vaccines. An important
decision by these firms is how big the batch should be. Bryan Jampit
 PROCESS TYPES

04 Repetitive
This type of business produces products that are more
standardized in nature. Usually the output is high. Since
the goods are quite standardized, the equipment used tends
to be quite specialized and often highly customized for
that process. The skill level of the employees is usually
low because the steps are highly standardized. Although
these types of jobs may not require a trade or extensive
experience, they often do require skills such as multi-
tasking, concentration, problem solving, and teamwork.
Often, these processes use flexible automation that allows
for customization such as the addition of upgraded
features. Examples of a repetitive process include
assembly lines such as assembling automobiles or
electronics, a carwash, or a cafeteria line.
Khaim Dimakiling
 PROCESS TYPES

05 Continuous
A continuous process is when a very high volume of
standardized product is produced. The type of product
being made is described as non-discrete. This means that
these businesses do not produce individual products, rather
a product that is often a liquid or a product such as sugar,
gasoline, or steel. An example of this type of process is an
oil refinery. There are not separate individual
workstations, rather the product flows from one step to the
next within the system. The equipment in this type of
process is highly complex and designed solely for that
product at that facility. There are very few workers except
for those that are responsible for process monitoring,
maintenance, and cleaning.

Khaim Dimakiling
 PROCESS TYPES

06 Hybrids

There are many firms using mixtures of process types. One such common exception is the
Mass Customization model of production. In mass customization, a company combines
low-cost high volume of output, but each and every customer order is customized to the
customers specifications. Usually the use of computer-aided manufacturing systems is what
permits this customization. Examples include furniture makers who wait to produce the
exact model of sofa based on the customers dimensions and fabric choice, or the vehicle
manufacturer that has dozens of customization packages and paint options such that each
vehicle is custom for the purchaser. A key requirement for successful mass customization is
a modular design to allow fast seamless change from each product to the next.

Khaim Dimakiling
Khaim Dimakiling
FACILITY
LAYOUT
Facility Layout
Layout refers to the way in which organizations position their
equipment, departments, or workcentres. Having an effective layout
can streamline production activities, eliminate wasted or redundant
movement and improve safety. The general types of layouts are: a fixed
position layout, a process layout (functional), a product (line) layout,
and a cellular layout, which is considered a hybrid. Other common
layouts include office layouts, retail layouts, and warehouse layout.
Fixed Position Layout
When producing a product that is not easily able to be moved, it may
require that the worker, their tools and equipment are brought to the site
where the production is taking place. This is a common layout in
manufacturing a building, a ship or performing repairs to major
equipment. Claudia Boquiron
Process layout
• A process layout is a layout in which departments, equipment, or
workcentres are arranged according to their function. In a manufacturing
environment, all of the milling machines may be in one area or
“department,” the lathes may be in another area, and the drilling machines
all in another area. This layout is also common in services. In a
department store, similar goods are arranged together such as footwear,
jewelry, and housewares. At a hospital, cardiology is in one area,
maternity in another location, and pediatrics elsewhere. The specific
dedicated equipment and skilled practitioners work in each of these areas.
• An advantage to a process layout is that equipment tends to be quite
general-purpose. If one particular piece of equipment breaks down, it will
not halt the entire process. This type of process gives flexibility to handle
a variety of products or customers. It is ideal for job shops or small batch
manufacturing.
Claudia Boquiron
Process layout
• A disadvantage of a process layout is that a particular product will likely
have to travel from department to department to get the set of processes
completed. This often leads to lots of material handling and movement of
goods throughout the facility. A flexible material-handling system is
needed such as forklifts. Inventory will sit in each area waiting for its
turn to be processed. This waiting inventory is referred to as queue. When
examining the total throughput time of jobs through the system, it is often
discovered that each order spends much more time waiting in queue than
it does actually being processed. For that reason, this type of layout is
generally very inefficient. A major consideration in a process layout is to
ensure that departments with a large amount of interaction are located
nearby one another.

Claudia Boquiron
Process layout
• Below is an example of a machinery plant with a process layout:

Claudia Boquiron
Product (Line) Layout
• These are used in businesses that use assembly lines or production lines.
If the product has high volume an assembly line might be the best option.
The equipment in these types of layouts are often very capital intensive
and are laid out according to the progressive steps of the process. Each
work station is located along the line and may consist of a worker with
equipment, or robots. Often each work station is adding components
(assembly line) or modifying a product (production line). It is important
to note that it is not necessarily a straight line, often assembly lines zig
zag or are in a shape to use the maximum amount of space available.
Some services may use a line layout, such as preparing hospital meals, or
a cafeteria line. Due to considerable cost involved with setting up an
assembly line, a large volume of product needs to be produced. Demand
that is steady and consistent is ideal.

Jaymee Nazareno
Product (Line) Layout
• The goods produced in a line layout are generally very standardized, and the work
processes are also highly standardized. Each product follows the same set of steps
so that a fixed path material handling system is used such as a conveyor belt. This
conveyor belt may be manual or automatic. It may operate at a pre determined
speed, or it may be worker paced. It may run continuously or pulsed. The speed of
the conveyor will determine the amount of product that will be produced per shift.
• In contrast to a process layout a product layout is very efficient. There are a
number of reasons for this.
1. Because of the division of labour and the repetition, there is less variability in the
work performed
2. There is no build up of inventory, and no waiting. When completed at one work
station, the job automatically moves to the next workstation. Only the inventory
that is in process is in the system. Goods tend to be shipped when they are
completed.
3. Due to the material handling system, goods move quickly and not very far.
4. Changeovers are not necessary so very little time is lost in changing between
products. Jaymee Nazareno
Product (Line) Layout
• It is important that assembly lines are balanced. The amount of time required at a
preceding work station should be relatively similar to the amount of time required at
the following work station.

• Challenges in a product (line) layout include:

1. The fact that the line may be susceptible to shut downs if there are equipment
malfunctions so preventative maintenance is critical. Preventative maintenance
involves the inspection and replacement of any parts that have a high probability of
failures, as well as holding ample spare parts in stock and having a detailed
maintenance schedule for each piece of equipment.
2. Training and job rotation are critical activities to make sure employees are capable of
completing the work tasks and that there are multiple people that can work at each
individual job
3. With repetitive standardized jobs, it is critical that good ergonomic job design is
performed. Organizations that ensure the health, safety and comfort of their employees
reap rewards in terms of the quality of work they receive from employees.
Jaymee Nazareno
Cellular Layout
• Cellular layouts are considered a “hybrid” type of layout because it
includes characteristics of both a Process layout and a product (line)
layout. It is very common that a business may have multiple product
lines, with far too much variety in order to take advantage of one
assembly line. Often these businesses may have been using a process
layout, with all of the associated product movement and waiting times.
An alternative that became popular beginning in the late 1980s is the
Cellular layout type. This type of production layout is still heavily
utilized today.

• This type of layout begins with the company performing a thorough

analysis of their products and deciding which products are similar to one
another and often share common geometry and processing requirements
in terms of equipment, machinery, technology and employee skills. These
products are grouped together and manufactured in a work cell. This isNazareno
Jaymee
Cellular Layout
• Each work cell will contain a unique set of equipment to manufacture this
family of parts in an assembly line type of layout. The equipment is laid
out in a U shape with equipment located close together so jobs do not
have to move very far.

• Advantages of a cellular layout include:

1. Reduced set up times for each piece of equipment because each machine
is making products that are very similar, often set-ups are very fast or
non-existent.
2. Speed is greatly enhanced because batches can now be small and goods
that enter the system will continue until they are complete. Small batches
means fast run times and short wait times.
3. Inventory investment is now reduced due to small batch sizes enabled
because of the low set up times required..
Jaymee Nazareno
Cellular Layout

• Advantages of a cellular layout include:

4. Quality is enhanced because employees work only within that cell on
a narrow range of products. Cross training of employees ensures
good and thorough knowledge of the entire production process.
5. Employee morale is improved due to working as part of a team that
has responsibility for the throughput and quality of the cell. The U-
shaped design heightens collaboration among workers.
6. Less floor space is required due to machines being placed close
together and less movement of product.

Juhaira Mangondaya
Cellular Layout

• An example of a U-shaped layout can be found below:

Juhaira Mangondaya
 Office Layout
• In 2020 office spaces are a great deal
different than in generations past. Floor space
per employee has dropped significantly.
There is far less worry about the flow of
paperwork than in the past. Often employees
are grouped according to the tasks they
perform and the work teams they participate
in. Workspaces now tend to be more flexible
with less paper and less furniture to hold files
and documents. Many organizations put
more emphasis on having comfortable spaces
for collaboration. Layouts are much more
open concept with lower partitions to
improve visibility of the workspace.
Juhaira Mangondaya
Retail Layout

• The overall goal when laying out a retail location is to try and
maximize the amount of sales per square foot in the facility. This
is done by careful study of traffic patterns in the store in order to
try and maximize the amount of product to which each customer
is exposed. That is why you will often find the milk at the far
end of the store causing customers the need to walk past all other
departments to reach it.

Juhaira Mangondaya
 Warehouse Layout

• Effective warehouse layout aims to make effective use of the

total volume of space contained in the building. The
relationship between the receipt of incoming goods, the
storage space and the picking, packing and shipping of
outbound goods is carefully analyzed. An important
consideration is the placement of inventory items in order to
minimize distance goods and employees are need to travel.
Many warehouses have special holding requirements such as
freezers, cold storage and high security areas.

Juhaira Mangondaya
 Some important “Times” to be familiar with:
• Throughput time is the time between the beginning – the very first
operation in the process until the product is actually completed at the
end of the process. Remember that this includes not only the process
time, but also any waiting time, inspection time, time spent on rework
and movement.

• Lead time is the amount of time between when the customers order is
received and when the product is completed and ready to ship.

• Cycle time is the rate at which the operation is actually producing

each unit. If you stood at the end of the process and measured the time
between completion of each unit, that is the true cycle time.

Ivan Sierra
 Some important “Times” to be familiar with:

• Takt time is a calculated value which determines the rate at which a

firm needs to process their product in order to meet customer demand.
It can be calculated by:

available production time

———————————-
demand
Example

• A firm operates 8 hours per day (480 minutes). Their daily demand is
120 units. They can calculate their takt time required to meet this
demand:
• (8 hours x 60 min) / 120 = 4 min. Ivan Sierra
 Some important “Times” to be familiar with:

The firm must product one product every 4 minutes. This is

also known as the drum beat of the operation. They must
produce one product at least every 4 minutes to meet customer
demand. If demand increases it may be required to use
continuous Improvement tools to change the takt time or
possibly add additional equipment.

Ivan Sierra
 Process Flowcharting
• Any process improvement initiative will always begin with mapping out a visual
representation of the current process. This is necessary so that all members of
the team have a clear understanding of how current process is working. All of
the steps and flows need to be identified and laid out in the proper sequence. It
is important that the correct stakeholders are involved in this activity
• There are many different types of flowcharts, and many different softwares that
can assist with this activity. Most practitioners tend to prefer using a large roll of
paper on the wall where the group can collaborate rather than using a computer
projected onto a screen. It is important to go out into the workplace and walk
the process before beginning this task. This is a very standard activity that takes
place in organizations around the globe. As an Operations Manager, there is a
high likelihood that you will become involved in this at some point in your
career. To map a process, a standard set of symbols are used.

Joshua Catague
There are many different
symbols, it is best not to
get too caught up in all of
them. The standard
symbols include:

Joshua Catague
 FOR EXAMPLE:

Joshua Catague
THANK
GROUP 2
YOU