Process Selection for Facility Layout, Process Types, Process strategy

Process Selection

Refers to deciding on the way production of goods or services will be organized

- Occurs as a matter of course when new products or services are being planned, also occurs periodically due to technological changes in products or equipment as well as competitive pressures.
- Has major implications for capacity planning, layout of facilities, equipment, & design of work systems.

• Capital intensity

• Process flexibility

• Variety in products or services

• Expected volume of output

Process selection & capacity planning influence system design

Process Types

Five basic process types are

1. Job shop
2. Batch
3. Repetitive
4. Continuous
5. Project

 Product or Service & Flexibility Variety & Equipment Flexibility

Job Shop

• Customized goods or services
• Intermittent
• Operates on a relatively small scale
• High-variety goods or services
• Skill level of workers need to be high

Batch

• Moderate volume of goods or services
• Moderate variety
• Not much flexible but Intermittent
• Easy to add or change products or services

Repetitive/Mass

• Higher volumes of more standardized goods or services
• Slight flexibility of equipment
• Skill of workers is generally low
• Sometimes referred to as  assembly

Continuous

• High volume of no discrete, highly standardized
• lmost no variety in output
• No need for equipment flexibility
• Skill requirements can range from low to high

Project

A no repetitive set of activities directed toward a unique goal within a limited time frame

- Used for work that is no routine
- Unique set of objectives to be accomplished in a limited time frame

Such as consulting, making a motion picture, launching a new product or service etc.

Process strategy

• The importance of flexibility as a competitive strategy is high
• However, flexibility does not always offer the best choice in processing decisions
• Flexible systems & equipment are often more expensive & not as efficient as less flexible alternatives
• In certain instances, flexibility is unnecessary because products are in mature stages, requiring few design changes, & there is a steady volume of output

Flexibility should be adopted with great care; its applications should be matched with situations in which a need for flexibility clearly exists.