Production and Operations Management
Production and Operations Management
Production and Operations Management
Operations Management
Ataklty Adugna (Ass. Professor)
Mekelle University
College of Business and
Economics
Department of Management
1
CHAPTER-IV
PROCESS SELECTION
2
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.
3
Cont…
1.Food Process
.
Inputs Process Output
4
Cont…
1. Hospital Process
Inputs Process Output
5
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:
6
Cont…
capacity planning
layout of facilities
equipment and
design of work systems.
7
Cont…
A good relation has to prevail among:
a) Operations strategy
b) New product development and
c) Process selection
8
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.
9
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
10
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
11
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
12
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
13
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
14
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.
15
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.
16
Project Type
A
project is a highly flexible and low volume type
operation.
Usually
the item to be produced stays in a fixed place
At
the end of production, resources leave the place.
Some
types of service operations may also be called as
18
Underlying Process Relationship between Volume and
Standardization Continuum
19
Product-Process Matrix
20
OU
K Y
AN
TH
21