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Process Selection Overview

Product Process Matrix (Process Selection)

1. Introduction to Process Selection

2. Process Strategy 3. Process Selection 4. Process Types

Dr. T. T. Kachwala

5. Product Process Matrix 6. Learnings

from

Video

(Product

Process Mix)

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Introduction to Process Selection


1.

Process Strategy
Key aspects of Process Strategy includes:
1. Capital intensive The mix of equipment

2. 3.

4.

Process Selection & layout of facilities are basic decision, managers make that have long term consequences for business organizations Processes convert inputs into outputs. So process selection have strategic significance Process selection refers to deciding on the way production of goods will be organized. It occurs when new products are planned or technological changes in existing products occur. Process Selection is determined by Organizations Process Strategy

and labour that will be used by the Organization 2. Process flexibility The degree to which the system can be adjusted to changes in processing requirements due to such factors as changes in Product Design, changes in Volume processed, and changes in Technology

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Process Selection

Process Types
1. Job shop usually operates on a relatively

Three primary questions bear on process selection:


1.

How much Variety in products will the system need to handle?

2. 3.

What degree of Flexibility will be needed? What is the Expected Volume of output?

small scale. It is used when a low volume of high variety goods are needed. High Flexibility using general purpose equipment, skilled labor & intermittent processing are important characteristics of a job shop. 2. Batch processing is used for moderate volume of goods & where moderate variety is desired.

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Process Types
3.

Learnings from Video (Product Process Mix)


1.

Repetitive (Assembly line) is used for high volumes of standardized goods and where repetitive

2.

processing is desired.
4.

3. 4. 5.

Continuous Process is used for very high volumes of highly standardized output. It does not need

6.

equipment flexibility and a range of worker skill is required depending on the complexity of the system.
7.

Goods range from standardized commodities such as gasoline and motor oil for car to items which are made to order like eye glasses Process selection is based on two considerations; variety or how much the product changes from customer to customer and the volume of demand. A third consideration, the flexibility of equipment used to create the product is determined by the product being created and is often determined by the first two Gasoline manufacturer BEP refines Crude oil into premium fuels in different refineries across the globe; there is a constant need for its product so production is continuous. Honda of America uses a repetitive process in the operating plant in Ohio. At this plant Honda produces a large number of only a few models of their popular cars. In Illinois Caterpillar plant produces 24 different models of wheel loaders (four families of construction & agriculture equipments), all in the same facility but on relatively low volumes When a highly specialized product is needed in a very low volume based on an individual customer order, the process which matches the product is often referred to as a job shop, At AED vision, eye glass are made using such a job shop process. The Product Process Matrix illustrates the general rule of manufacturing four production processes. Finding and using the appropriate processes is necessary to ensure quality and keep cost low enough to match the market demand and volume.

Product Process Matrix (Manufacturing)


Process Type
Job Shop Job Shop Eye Glass AED Vision Batch Repetitive Continuous

Product Process Matrix (Service)


Process Type
Job Shop Job Shop Hospital Emergency Room TV program Class Room Lecture Automatic Car Wash Tkt Collector Electricity Internet Batch Repetitive Continuous

Variety

Batch Caterpillar Company Repetitive Automotive assembly Honda


Company

Variety

Batch

Repetitive

Continuous (flow)

Oil refinery BEP USA

Continuous (flow)

Volume

Volume

Product Process Matrix


Dimension Job variety Process flexibility Unit cost Volume of output
Job Shop Batch Repetitive Continuous

Very High Very High Very High Very Low

Moderate Moderate Moderate Low

Low Low Low High

Very low Very low Very low Very high