Chapter 4 PDF

4.
Chapter 4
Process design
4.1
Slack, Chambers and Johnston, Operations Management, 6th Edition,

Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.2
Key operations questions

In Chapter 4 Process design Slack et al. identify the
following key questions:
What is process design?
What objectives should process design have?
How does volume and variety affect process design?
How are processes designed in detail?
4.2

4.3
To design:
design (v.) 1540s, from Latin designare "mark out,
devise, choose, designate, appoint"
from de- "out" (see de-) + signare "to mark," from signum "a mark, sign". Originally in
English with the meaning attached to designate; many modern uses of design are
metaphoric extensions.
to form or conceive in the mind; to invent, to work

out the structure or form of (something), as by
making a sketch, outline, or pattern for a specific
purpose; to mark out or designate the boundaries
and functions of the system
4.3

4.4
Nature and purpose of the design activity

Products, services and the processes which produce
them all have to be designed.
In manufacturing operations overlapping the activities of
product and process design is beneficial.
In most service operations the overlap between service
and process design is implicit in the nature of service.
Product/service design has an impact on the

process design and vice versa.
4.4

4.5
The design of products/services and processes are interrelated

and should be treated together
The design of your operations is the

mould where your planning is going to be
based
Products and services should be designed in such a way
that they can be created effectively and efficiently.
Effective = doing the right things (goals)
Efficient = doing the right things in the right way

(performance)
4.5

4.6
Process mapping symbols

derived from Scientific
Management

derived from Systems
Analysis
Operation (an activity

that directly adds
value)
Beginning or end of
process
Inspection (a check of
some sort)
Activity
Transport (a movement
of something)
Input or Output from the

process
Delay (a wait, e.g. for materials)

Direction of flow
Storage (deliberate
storage, as opposed to a
delay)
4.6
Decision (exercising discretion)

4.7
Designing processes
A production process transforms resources into
products/services (including the customer!)
There are different process types.
Process types are defined by the volume and
variety of items they process.
Process types go by different names depending

on whether they produce products or services in
different volume and variety.
4.7

4.8
Process design
Volume-variety and design
The four Vs of
operations were
volume, variety,
variation and
visibility. The first two
usually go together
(high variety usually
means low volume,
high volume normally
means low variety).
Volume and variety
determine the way
we design
performance
objectives - quality,
speed,
dependability,
flexibility and cost
4.8

Manufacturing process types

Process
tasks
Process
flow
Diverse/
complex
Intermittent
High
4.9
Project
Variety
Jobbing
Batch
Mass
Continuous
Low
Repeated/
divided
Continuous
Low
4.9
Volume
High

4.10
Project processes
One-off, complex, large scale, high work content

products
Specially made, every one customized
Defined start and finish: time, quality and cost objectives
Many different skills have to be coordinated.
4.10

4.11
Jobbing processes
Very small quantities: one-offs, or only a few required

Specially made. High variety, low repetition. Strangers
every one customized
Skill requirements are usually very broad
Skilled jobber, or team, complete whole product.
4.11

4.12
Batch Processes
Higher volumes and lower variety than for jobbing
Standard products, repeating demand. But can make

specials
Specialized, narrower skills
Set-ups (changeovers) at each stage of production.
4.12

4.13
Mass (line) processes
Higher volumes than batch

Standard, repeat products (runners)
Low and/or narrow skills
No set-ups, or almost instantaneous ones.
4.13

4.14
Continuous processes
Extremely high volumes and low variety: often single

product
Standard, repeat products (runners)
Highly capital-intensive and automated

Few changeovers required
Difficult and expensive to start and stop the process.
4.14

Process
tasks
Process
flow
Diverse/
complex
Intermittent
High
Service process types
Professional
service
Service shop
Variety
4.15
Repeated/
divided
Continuous
Low
Mass service
Low
4.15
Volume
High

4.16
Professional service
High levels of customer (client) contact.

Clients spend a considerable time in the service process.
High levels of customization with service processes being
highly adaptable.
Contact staff are given high levels of discretion in
servicing customers.
People-based rather than equipment-based.
4.16

4.17
Service shops
Medium levels of volumes of customers

Medium, or mixed, levels of customer contact
Medium, or mixed, levels of customization

Medium, or mixed, levels of staff discretion.
4.17

4.18
Mass service
High levels of volumes of customers

Low to medium levels of customer contact
Low, or mixed, levels of customization

Low, or mixed, levels of staff discretion.
4.18

4.19
Deviating from the natural diagonal on the productprocess

matrix has consequences for cost and flexibility
Manufacturing
operations
process types
None Professional
service
Project
More process
flexibility than
is needed so
high cost
Jobbing
Batch
Mass
Service
operations
process types
Volume
Variety
Less process
flexibility than
is needed so
high cost
Continuous None
Service
shop
Mass
service
The natural line of fit of process to

volume/variety characteristics
4.19

4.20
Customized sandwich old process
Raw
materials
Assembly
Stored
sandwiches
Standard sandwich process
4.20
Move to
outlets
Stored
sandwiches
Sell
Take
payment
Customer
request

4.21
Higher level process map

Prepare
The operation of
making and selling
customized
sandwiches
Sandwich
materials and
customers
Bread and
base filling
Assemble whole
sandwich
Use standard
base?
Assemble as
required
Take
payment
Customers
assembled to
sandwiches
The outline process of

making and selling
customized sandwiches
No
Yes
Fillings
Customer request
Assemble from
standard base
The detailed process of

assembling customized
sandwiches
Stored
bases
4.21

4.22
Customized sandwich - new process
Assemble whole
sandwich
Assembly of
sandwich
bases
Use standard
base?
Take
payment
No
Fillings
Yes
Bread and
base filling
Customer request
Stored bases
4.22
Assemble from
standard base

4.23
Flow process charts for processing expense

1
2
3
4
5
6
Description of activity
Report arrives
Wait for processing
Check expenses report

Stamp and date report
2
3
4
Send cash to receipt desk

Wait for processing
5
6
Check advance payment

7
8 Send to accounts receivable
9
Wait for processing
10
Check employee record
11
Send to account payable
Attach payment voucher
12
13
14
15
16
17
18
19
20
21
22
23
7
8
9
Description of activity
Report arrives
Stamp and date report
Check expenses report
Attach payment voucher
Wait for batching
Collect retorts into batch
Batch to audit desk
Wait for processing

Check reports and vouchers
Reports to batch control
10
11
Batch control number
Copy of reports to filing
12
Reports filed
13
14 Payment voucher to keying
Log report
Check against rules
Wait for batching
Collect retorts into batch
15
Confirm payment
Totals
Batch to audit desk

Wait for processing
5 5 2 2 1
Batch of reports logged

Check payment voucher
Before
Reports to batch control

Batch control number
After
Copy of reports to filing
24
Reports filed
25 Payment voucher to keying
26
Confirm payment
Totals
4.23
7 8 5 5 1

4.24
Performance objectives
architects, the final aesthetic

appearance of the building
and the appropriateness of
its detailed design.
electricity supply company,
quality is exclusively
concerned with error-free
service electricity must be
constantly available in the
correct form (in terms of
voltage, frequency, etc.).
Speed
Quality
Architects: Low
economies of scale and
high product variability
make product more
expensive to produce
Electricity: High
economies of scale and
cost variability makes it
less expensive to
produce
4.24
What do these mean for different products and

services i.e. architects vs electricity company
For architects means negotiating a completion date with

each client, based on the clients needs and the
architects estimates of how much work is involved in
each project. Speed in the electricity utility means
literally instant delivery. No electricity company could
ask its customers to wait for their delivery of electricity
Dependability
For architects means keeping to each
individually negotiated delivery
date. In continuous operations,
dependability often means the
availability of the service. A
dependable electricity supply is one
which is always there.
Cost
Flexibility
For architects means the ability to design many different kinds of
buildings according to its clients various requirements. With the
electricity companys process, the need for product flexibility has
disappeared entirely but the ability to meet almost instantaneous
demand changes through volume flexibility is vital.
Performance objectives
4.25
4.25
Quality
The meaning of quality has shifted from being concerned primarily with the performance and
specification of the product or service towards conformity to a predefined standard, as we move from
low volume-high variety operations through to high volume-low variety operations.
Speed
Speed means an individually negotiated delivery time in low volume-high variety operations, but
moves towards meaning instant delivery in some high volume-low variety operations.
Dependability
Dependability has moved from meaning on-time delivery in low volume-high variety operations to
availability in high volume-low variety operations.
Flexibility
Flexibility has moved from meaning product flexibility in low volume-high variety operations to volume
flexibility in high volume-low variety operations.
Cost
Cost, in terms of the unit cost per product or service, varies with both the volume of output of the
operation and the variety of products or services it produces. When variety of products or services in
low-volume operations is relatively high, running the operation will be expensive because of the
flexible and high skill levels employed. Further, because the volume of output is relatively low, a few
products or services are bearing the operations high cost base. Also, and more significantly for the
operation, the cost of each product or service is different. At the other end of the scale, high-volume
operations usually produce similar products or services, output is high, so that whatever the base cost
of the operation, it is shared among a high number of products or services. Cost per unit of output is
therefore usually low for operations such as the electricity utility but, more significantly, the cost of
producing one second of electricity is the same as the next second. Cost is relatively constant.
4.26
Littles law (a really quite useful law)

Throughput (TH) = Work In Process (WIP) x Cycle Time (CT)
Cycle time
= 2 mins
WIP = 10
Throughput time = ?
Throughput time = 10 2 mins
Throughput time = 20 mins
4.26

4.27
Throughput efficiency
Throughput efficiency is the work content of whatever is

being processed as a percentage of its throughput time
Throughput efficiency =
4.27
Work content
Throughput time
100

4.28
Throughput time
and capacity
utilisation
Arrival
Arrival
30
9 515 10515
Processing
10
Processing
frequency
frequency 20
time
time
mins mins
mins
(demand)
(demand) mins
Utilization
Utilization
33.33
50
100
%
%
%%% QQ
Q
0>0
Utilization===100
<100%
Q====0infinity
time
Process
length of queue
Average throughput
(or inventory)
High
High utilization but

long throughput times
X
Low utilization but
short throughput times
X
Reduce process
variability
Low
20%
40%
60%
80%
100%
Capacity utilization
4.28

4.29
Average number of units

waiting to be processed
Average number of units

waiting to be processed
Process utilization, waiting time and variability
Decreasing
variability
High utilization
but long waiting
time
Reduction in
process
variability
Short waiting
time but low
utilization
Y
10 20 30 40 50 60 70 80 90 100
Utilization
(a) Decreasing variability allows higher

utilization without long waiting times.
4.29
10 20 30 40 50 60 70 80 90 100
Utilization
(b) Managing process capacity
and/or variability.


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4.

Slack, Chambers and Johnston, Operations Management, 6th Edition,

Key operations questions

How are processes designed in detail?

Slack, Chambers and Johnston, Operations Management, 6th Edition,

to form or conceive in the mind; to invent, to work

Slack, Chambers and Johnston, Operations Management, 6th Edition,

Nature and purpose of the design activity

Product/service design has an impact on the

Slack, Chambers and Johnston, Operations Management, 6th Edition,

The design of products/services and processes are interrelated

The design of your operations is the

Efficient = doing the right things in the right way

Slack, Chambers and Johnston, Operations Management, 6th Edition,

Process mapping symbols

Process mapping symbols

Operation (an activity

Input or Output from the

Delay (a wait, e.g. for materials)

Decision (exercising discretion)

Slack, Chambers and Johnston, Operations Management, 6th Edition,

Process types go by different names depending

Slack, Chambers and Johnston, Operations Management, 6th Edition,

Slack, Chambers and Johnston, Operations Management, 6th Edition,

Manufacturing process types

Slack, Chambers and Johnston, Operations Management, 6th Edition,

One-off, complex, large scale, high work content

Slack, Chambers and Johnston, Operations Management, 6th Edition,

Very small quantities: one-offs, or only a few required

Slack, Chambers and Johnston, Operations Management, 6th Edition,

Higher volumes and lower variety than for jobbing

Standard products, repeating demand. But can make

Slack, Chambers and Johnston, Operations Management, 6th Edition,

Mass (line) processes

Higher volumes than batch

Slack, Chambers and Johnston, Operations Management, 6th Edition,

Extremely high volumes and low variety: often single

Highly capital-intensive and automated

Slack, Chambers and Johnston, Operations Management, 6th Edition,

Service process types

Slack, Chambers and Johnston, Operations Management, 6th Edition,

High levels of customer (client) contact.

Slack, Chambers and Johnston, Operations Management, 6th Edition,

Medium levels of volumes of customers

Medium, or mixed, levels of customization

Slack, Chambers and Johnston, Operations Management, 6th Edition,

High levels of volumes of customers

Low, or mixed, levels of customization

Slack, Chambers and Johnston, Operations Management, 6th Edition,

Deviating from the natural diagonal on the productprocess

The natural line of fit of process to

Slack, Chambers and Johnston, Operations Management, 6th Edition,

Customized sandwich old process

Standard sandwich process

Slack, Chambers and Johnston, Operations Management, 6th Edition,

Higher level process map

The outline process of

The detailed process of

Slack, Chambers and Johnston, Operations Management, 6th Edition,

Customized sandwich - new process

Slack, Chambers and Johnston, Operations Management, 6th Edition,

Flow process charts for processing expense