PROCESS SELECTION

1
PROCESS SELECTION

• Chapter 4

2
Outline

• Process Selection
• Service Process Design
• Choice of Technology
• Process-Flow Analysis

3
Process Selection

• Product-Flow Characteristics
• Classification by Type of Customer Order
• Process Selection Decisions
• Product-Process Strategy
• Mass-customization
• Cross Functional Decision Making

4
Product-Flow Characteristics

• Types of Product Flow
• Line Flow
• Batch Flow
• Project Flow
• Characteristics of Flows (see Table 4.1)

5
Line Flow
WS 1
WS 2
WS 3
WS
Task or work station
Product flow
6
Batch Flow
WS 2
WS 4
WS 3
WS 1
WS 5
WS
Product flows
Task or work station
7
Project Flow
2
4
Start
End
1
3
Task
Task or activity
Precedence relationship
8
Classification by Type of Customer Order

• Make to Stock (MTS)
• Make to Order (MTO)

9
Make to Stock (MTS)

• Advantages
• Disadvantage
• Key performance measures
• Information flow (see Figure 4.4)

10
Make to Order (MTO)

• Advantages
• Disadvantage
• Key performance measures
• Information flow (see Figure 4.4)

11
MTS and MTO Comparison
12
Information-flow Comparison Make-to-Stock (Figure
4-4)
13
Information-flow Comparison Make-to-Order (Figure
4-4)
14
Process Selection Decisions

• Process characteristics matrix
• Factors affecting process choice

15
Process Characteristics Matrix (Table 4.3)
16
Factors Affecting Process Choice

• Market conditions and competition
• Capital requirements
• Labor supply and cost
• Management skills
• Materials supply and cost
• State of technology

17
Product-Process Strategy

• Product-Process Matrix (see Figure 4-5)
• Product Life Cycle (PLC) stages
• Process Life Cycle stages
• Modified Product-Process Matrix (see Figure 4-6)
• Cross functional decision making and
  product-process strategy

18
Product Life Cycle Stages

• Low volume-low standardization, one of a kind
• Multiple products, low volume
• Few major products, higher volume
• High volume-high standardization, commodity
  product

19
Process Life Cycle Stages

• Jumbled flow (job shop)
• Disconnected line flow (batch)
• Connected line flow (assembly line)
• Continuous flow

20
PRODUCT-PROCESS MATRIX (Figure 4.5)
PRODUCT STRUCTURE (Product Life Cycle)
I Low volume-low standardization, one of a kind
II Multiple products, low volume
III Few major products higher volume
III High volume-high standardization, commodity
products
NONE
Commercial Printer
Heavy Equipment
Automobile assembly
PROCESS STRUCTURE (Process Life Cycle)
NONE
Sugar Refinery
21
MODIFIED PRODUCT-PROCESS MATRIX (Figure 4.6)
PRODUCT STRUCTURE (Product Life Cycle)
I Low volume-low standardization, one of a kind
II Multiple products, low volume
III Few major products higher volume
III High volume-high standardization, commodity
products
I Jumbled flow (job shop)
NONE
Commercial printer
II Disconnected line flow (batch)
Heavy Equipment
III Connected line flow (assembly line)
Automobile assembly
NONE
PROCESS STRUCTURE (Process Life Cycle)
IV Continuous flow
Sugar Refinery
22
Mass Customization

• Definition
• Economies of scale
• Economies of scope
• Mass customization of service
• Modular production
• Postponement