UNIT 3 PROCESS SELECTION

Process selection meaning-

a) Process selection refers to deciding on the way production of goods or services

will be organized. Processes convert inputs to outputs; they are the core of
operations management.

Process Selection refers to the way an organization chooses to
produce its good or services. It takes into
account selection of technology, capacity planning, layout of facilities, and design
of work systems.

Process selection is a natural extension after selection
of new products and services.

The ways organizations choose to produce or provide their goods and services.
It involves choice of technology, type of processing, and so on.
It influences
 Capacity planning
 Layout of facilities
 Equipment
 Design of work systems

FACTORS WHICH INFLUENCE PROCESS SELECTION

 Variety(how much)
 Flexibility(what degree)
 Volume(expected output)
An organizations process strategy would include
1. Make or Buy Decisions. The extent to which an organization will produce goods 
or provide in
house as opposed to relying on an outside organization to produce or provide them.
2. Capital Intensity. The mix of equipment and labor will be used by
the government.
3. Process Flexibility: The degree to which the system can be adjusted
to changes in processing
requirements due to such factors as changes in product or service
design, changes in volume
processed, and changes in technology

Explain the strategic importance of process selection:

   

2)      Explain the influence that process has on an organization:

a)      Process Selection affects the entire organization and its ability to achieve its
mission, and affects the organization’s supply chain.

3)      The basic processing types are:

 Job Shop: This type of production is most commonly observed when you
produce one single unit of a product. A typical example of the same will be
tailored outfits which are made just for you or a cake which is made just like
you want it.
Example of Unit type of production
It is one of the most common types of products used because it is generally used
by small businesses like restaurants, individual products providers or individual
services providers.
 Usually operates on a relatively small scale. It is used when a low volume of
high-variety goods or services will be needed. High flexibility and skilled
workers are necessary. Example: Veterinarian Office

b) Batch: Used when a moderate volume of goods or services are needed. The

skill level of workers need not be as high, and equipment need not be as
flexible. Examples: Bakeries, movie theaters, and airlines. BATCH TECHNOLOGY IS
 A PROCESS TECHNOLOGY SUITABLE FOR A VARIETY OF PRODUCTS IN VARYING VOLUMES .
BATCH TECHNOLOGY IS A STEP UP FROM JOB SHOP TECHNOLOGY IN TERMS OF
PRODUCTS STANDARDIZATION , BUT IT IS NOT AS STANDARDIZED AS ASSEMBLY LINE
TECHNOLOGY . W ITHIN THE WIDE RANGE OF PRODUCTS IN THE BATCH FACILITY , SEVERAL
ARE DEMANDED REPEATEDLY AND IN LARGE VOLUMES. THESE FEW DOMINANT
PRODUCTS DIFFERENTIATE BATCH FACILITIES FROM JOB SHOPS. THE SYSTEM MUST BE
FLEXIBLE FOR THE LOW-VOLUME /HIGH -VARIETY PRODUCTS , BECAUSE IT IS MEANT FOR
THOSE MANY JOBS WHICH ARE PERFORMED WITH FREQUENT SHIFTING FROM ONE JOB
TO ANOTHER . THIS SYSTEM HAS A HIGH TO MODERATE VARIETY RANGE . MANY FOOD
ITEMS ARE PRODUCED BY BATCH SYSTEM .

    Continuous: Used when a high volume of nondiscrete, highly standardized output

is desired. These systems have almost no variety in output and need no
equipment flexibility. Skill of workers can range from high to low depending
on the complexity of the system. Examples: process to make steel, salt, sugar,
and flour. CONTINUOUS PROCESS IS SUITABLE FOR PRODUCING A CONTINUOUS FLOW
OF PRODUCTS . CHEMICAL PLANTS AND OIL REFINERIES EXEMPLIFY USERS OF
CONTINUOUS FLOW TECHNOLOGY . MATERIALS AND PRODUCTS ARE PRODUCED IN
CONTINUOUS , ENDLESS FLOWS RATHER THAN IN BATCHES OR DISCRETE UNITS . THE
PRODUCT IS HIGHLY STANDARDIZED , AS ARE ALL OF THE MANUFACTURING
PROCEDURES , THE SEQUENCE OF PRODUCT BUILDUP , MATERIALS AND EQUIPMENT.
CONTINUOUS FLOW TECHNOLOGY AFFORDS HIGH-VOLUME, AROUND- THE-CLOCK
OPERATION WITH THE CAPITAL-INTENSIVE , SPECIALIZED AUTOMATION . IT PRODUCES
LARGE VOLUMES OF ONE HIGHLY STANDARDIZED ITEM . THERE IS NO PROCESSING
VARIETY .
 
4)      Discuss automated approaches to processing:
a)      Automation is machinery that has sensing and control devices that enable it to
operate automatically. There are three types of automation:
1.      Fixed Automation: It uses high-cost, specialized equipment
for a fixed sequence of operations.
2.      Programmable Automation: Involves the use of high-cost,
general purpose equipment controlled by a computer program
that provides both the sequence of operations and specific
details about each operation.
3.      Flexible Automation: It uses equipment more customized than
that of programmable automation. A key difference between
 the two is that flexible automation requires less changeover
time.
5)      List some reasons for redesign of layouts:
a)      The most common reason for redesign of layouts include inefficient
operations, accident or safety hazards, changes in the design of a pructs or
service introduction of new products and services, changes in the volume of
output, changes in methods of equipment, changes in environmental or other
legal requirements and morale problems.
 
6)      Describe the basic layout types:
a)      Product Layout: Uses standardized processing operations to achieve smooth,
rapid, high-volume flow.
b)      Process Layout: Layouts that can handle varied processing requirements.
c)      Fixed Position Layout: Layout where the product or project remains stationary,
and workers, materials and equipment are moved as needed.
7)      List the main advantages and disadvantages of product layouts and process
layouts:
a)      Product Layouts:          Advantages:
i.         high output
ii.       low unit cost due to volume
iii.      labor specialization reduces training costs and time
iv.     high utilization of labor and equipment
v.       routing and scheduling are part of initial design,
therefore not requiring much time once the operation
has begun.
vi.     Accounting, purchasing, and inventory control are
fairly routine
                                                Disadvantages:
i.         intensive division of labor
ii.                   poorly skilled workers show little interest in
maintaining equipment.
iii.                  System is inflexible
iv.                 System is highly susceptible to shutdowns
v.                   Preventative maintenance quick repairs and spare
parts inventories are necessary expenses.
vi.                 Incentive plans cause variations among outputs of
workers
 
b)      Processes Layouts:       Advantages:
i.         Systems can handle a variety of processing
requirements
 ii.       Systems are not vulnerable to equipment failures
iii.      General-purpose equipment is less costly than
specialized equipment
iv.     It is possible to use individual incentive plans
 
Disadvantages:
i.         In-process inventory costs can be high if batch
processing is used
ii.   routing and scheduling pose continual challenges
iii.                  equipment utilization rates are low
iv.                 material handling is slow and inefficient
v.                   job complexities often reduce the span of
supervision and result in higher supervisory costs.
vi.                 Special attention necessary for each product or
customer
vii.                Accounting, inventory control and purchasing are
much more involved
                 

UNIT 4 layout Decision

Layout Planning