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PROCESS CHOICE

PROCESS CHOICE. The impact of manufacturing design on performance objectives. LEARNING OUTCOMES. …to identify the types of process choice available …to understand the strategic considerations influencing the process choice . PRODUCTS AND SERVICES Cost vs. service level

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PROCESS CHOICE

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  1. PROCESS CHOICE The impact of manufacturing designon performance objectives

  2. LEARNING OUTCOMES …to identify the types of process choice available …to understand the strategic considerations influencing the process choice

  3. PRODUCTS AND SERVICES Cost vs. service level Lead-time, flexibility and speed Production variety and volumes THE TRANSFORMATION PROCESS THE TRANSFORMATION PROCESS INPUT OUTPUT CUSTOMERS TRANSFORMED RESOURCES • Materials • Information • Customer Involvement • Intellectual skills • Facilities • Staff

  4. STRATEGIC CONSIDERATIONS • Volume and Variety • Level of product standardization • Responsiveness and Speed • Time to market, Demand fulfillment • Demand Variability and Visibility • Manufacturing flexibility, Customer integration • Cost

  5. TYPES OF PROCESS CHOICE • Project • Jobbing, Unit or One Off • Batch • Line • Continuous

  6. PROJECT • Customized products • Generous time span • Low volume/high variety • Adaptable but complex network of activities • Coordinate resources E.g. shipbuilding, movieproduction, installations, team suits

  7. JOBBING/UNIT/ONE-OFF • Highly customized • Generous time span • Low volume/high variety • High skills required • Specialist knowledge • Often less complex than project E.g. furniture restorers, bespoketailor, wedding dress manufacturer

  8. BATCH • Larger volumes/less variety • Similar process on a repeat basis • Range of batch sizes • Flexible and structured network of activities • Often short time span E.g. high street fashion

  9. LINE/MASS • High volumes/low variety • Repetitive process • Predictable demand • Product life cycle concerns • Range width determines type of line E.g. DVDs, most food, commodity/lowfashion products such as white T-shirts

  10. CONTINUOUS • High volumes/low variety • Lengthy process • Inflexible • Technical process considerations • Predictable flow • Conversion to one or more products E.g. brewery, paper making, dyeing and finishing

  11. THE TYPOLOGY OF OPERATIONS Low repetition, Each staff memberperforms more than one job, Lesssystemisation, High unit cost High repeatability, Specialisation, Systemisation, Capital intensive, Low unit costs - VOLUME + Well defined, Routine, Standardised, Regular, Low unit costs Flexible, Complex, Match customerneeds, High unit cost + VARIETY - Changing capacity, Anticipation, Flexibility, In tough with demand, High unit cost Stable, Routine, Predictable, High utilisation, Low unit cost + VARIATION - Short waiting tolerance, Satisfaction governed by customerperception, Customer contact skillsneeded, Received variety is high,High unit cost Time lag between production andconsumption, Standardised, Low contact skills, High staff utilisation,Centralisation, Low unit cost + VISIBILITY -

  12. THE TYPOLOGY OF OPERATIONS EXAMPLES EXAMPLES Bespoke tailor Gourmet restaurant Value retailer Fast food restaurant - VOLUME + Bespoke tailor University tutorials Department store Off-the-peg suit plant University lecturers Jeans shop + VARIETY - Project production Emergency service Mass production Tanning studio + VARIATION - Most services “Cook at your table” restaurant Most manufacturing Pre-packed sandwich maker + VISIBILITY -

  13. DISCUSSION For each different process choice write down an example of a textile product. Explain why you have made each selection.

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