A critical strategic POM decision after the company has finally identified what specific product(s) or service(s) it would

provide its customers is the determination of how it will be able to produce or deliver it. This is the concept of PROCESS PLANNING or PROCESS STRATEGY where the company specifically identifies the combination of resources, activities and methods that will enable the firm to produce the product (in the case of manufacturing) or render the service

Specifically, Process Planning deals with all decisions about a process; gives a detailed description of the operations needed to make a product or render a service. It is performed during the following changes in operations

Consistent with the concept of Concurrent Engineering, firms need to link process decisions with their product strategies. In Particular, a new products will either need revisions or remodeling of existing machinery or conduct of a totally different type of the production process.

The same logic holds true for changes in the features of existing products, especially when there are significant alteration in product designs and materials utilization.

Currently, the high production costs associated with the increasing cost of foreign and local materials have prompted Philippine-based manufacturing companies to look for ways on improving process designs to make them cost-efficient and still meet set production quotas;

In the case of the toiletry industry, a stiff competition exists between P & G, Unilever, Johnson and Johnson and Kimberly Clark. A change in the feature of their consumer lines which normally is related to a similar change in the processes of the individual competing.

Ultimately, the determining variable as to how significant process design will change will be what the market dictates. The market provides information on the quantity, quality and specification required by the customers, which need to be attended to by the manufacturing and service sectors; and

Lastly, a firm experiencing tremendous production losses and inefficiencies and increasing production cost need to be carefully evaluate the efficiency and effectiveness of its existing processes. By process, it means the combination of the following variables
Technology Machinery and equipment Production process itself Work methods Materials, among others

Process design strategy is normally a responsibility of the engineering group, specifically the process engineers. Of course, strategic decision such as the adoption of a particular technology will merit the evaluation of top management, but the actual evaluation of the appropriate method to use and the other details of the production process are under the Operations Department, particularly the engineering group.

As mentioned, process planning is directly linked with the firms product strategy. The critical variables to look into would be the volume of production design. These variables will determine the appropriate process type to use. This part involves more specifically the following:
Choice of technology Choice of process type Choice of machinery and equipment

For a machine to run as designed, a corollary decision under process planning would be the appropriate choice of materials and inputs used which should be technically compatible with the equipment being utilized. There should also be trained and competent people to run the machines, and the procedure manuals to operate such facilities need to be documented.

Once process test runs had been completed and the feasibility to running the process types had been adequately studied, an ample amount of time is spent to install the facilities and equipment. Critical decisions prior to installation include the following:

Should the machinery and equipment be permanently fixed or movable? 2. Should the machinery and the equipment be purchased or fabricated? 3. Should the machinery and equipment be integrated or be installed separately? 4. Should the machinery and equipment be general- purpose or specialized? The firms plan for expansion is already being included as early as the initial process design evaluation.
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The last scope of process design would be the design and establishment of control measures to monitor effectiveness of process design.

While these guidelines are normally associated with a manufacturing setting, the same sets of activities hold true for selection of process for service firms, except that service entities need to design for both its front-office and backoffice operations.