Production and Operations Management

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Production and

Operations Management
Ataklty Adugna (Ass. Professor)
Mekelle University
College of Business and
Economics
Department of Management
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CHAPTER-IV

PROCESS SELECTION

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Introduction
process is any part of an organization that
takes inputs and transforms them into
outputs that, it is hoped, are of greater
value to the organization than the original
inputs.
All processes convert inputs into outputs.

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Cont…
1.Food Process
.
Inputs Process Output

Raw vegetables Cleaning


Canned
Metal sheets Making cans
vegetables
Water Cutting
Energy Cooking
Labor Packing
Building Labeling
Cooking equipments

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Cont…
1. Hospital Process
Inputs Process Output

Doctors and Nurses Examination


Hospital Surgery
Medical Supplies
Healthy patents
Equipments Monitoring
patients
Laboratories Medication
Therapy

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Process Selection
Process selection refers to the way an
organization chooses to produce its goods
or provide its services.
Essentially it involves the choice of
technology.
Process Selection has major implications
for:

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Cont…
capacity planning
 layout of facilities
 equipment and
 design of work systems.

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Cont…
A good relation has to prevail among:
a) Operations strategy
b) New product development and
c) Process selection

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Importance of Process Selection
Decisions
They are strategic in nature demanding
special coordination among the functional
areas.
They greatly affect the business’s ability
to realize its mission.
They affect it ability to experience a good
competitive advantage.
They affect a firm’s ability to meet
customers’ demand.
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Process Selection cont…
Process decisions are affected by the operations
strategy which addresses the issues of:
1. Make or Buy decision
The make or buy decision is the perquisite for process
selection.
Factors considered in the make or buy decision are:
Available capacity
Available and required expertise
Quality consideration
The nature of demand
Production and Purchase Cost
2. Process Flexibility and
3. Degree of automation or capital intensity
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Types of Processes
Continuous Processes
 Continuous processes are employed when
a highly uniform product or service is
produced or rendered.
 Continuous processes are characterized
by:
 Perfect product standardization
 Very high product volume
 Specialized purpose or function
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cont
 Expensive process equipments
 Logical arrangement of the equipments
 Products are continuous rather than
discrete.
 Shut-downs and start-ups are costly
 High vulnerable to shutdowns
 Low personnel skills required
 Wide span of supervision

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Semi continuous Processes
Semi-continuous processes also called
repetitive processes are employed to
produce outputs that allow for some variety
products are highly similar but not identical.
Typically, these products are produced in
discrete units.
High volume products
Relatively low skills
Relatively greater product variety

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Intermittent Processes
Processes used to produce a variety of
products with different processing
requirements in lower volumes.
Volume is much lower than in continuous
and semi-continuous systems.
The equipments are general purpose.
Workers are semi skilled and skilled
Span of supervision is narrow

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Batch Processes
are intermittent processes that are used
when companies need to produce
moderate volumes of similar products.
Batch manufacturing companies make a
batch of one product, then switch over
(set up) the equipment and make a batch
of another item.

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Job Shops
 are also intermittent processes that are used
to produce small lots, low volume products.
Equipments involved are general purpose, and
the need for skilled workers to operate and
supervise such highly flexible equipments is
tremendously high.
What distinguishes the job shop operation
from batch processing is that the job
requirements often vary considerably from job
to job.
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Project Type

A
 project is a highly flexible and low volume type

operation.

Usually
 the item to be produced stays in a fixed place

and all the resources come to it.

At
 the end of production, resources leave the place.

Some
 types of service operations may also be called as

Projects because they involve a team of people over a

period of time and then they leave the project.


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Intermittent and Repetitive (continuous and semi-
continuous) Operations

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Underlying Process Relationship between Volume and
Standardization Continuum

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Product-Process Matrix

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OU
K Y
AN
TH
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