Product Process Matrix

(Process Selection)

Dr. T. T. Kachwala
 Slide 2

Process Selection Overview

1. Introduction to Process Selection

2. Process Types:
a) Job Shop
b) Batch Shop
c) Repetitive Process
d) Continuous Process
3. Product – Process Matrix
4. Characteristics of Process Types
5. Process Types: Project Shop
 Slide 3

Introduction to Process Selection

1. Process convert inputs into outputs; they are at the core of

Operations Management. Facility layout is the arrangement of

workplace & is closely related to Process Selection.

2. Process selection refers to deciding on the way production of

goods will be organized. It occurs when new products are

planned or technological changes in existing products occur.

 Slide 4

Introduction to Process Selection

Key aspects of Process Strategy includes:

1. Capital intensive – The mix of equipment and labour

that will be used by the Organization

2. Process flexibility – The degree to which the system

can be adjusted to changes in processing
requirements due to such factors as changes in
Product Design, changes in Volume processed, and
changes in Technology
 Slide 5

Introduction to Process Selection

Three primary questions that influence process

selection:

1. How much Variety in products will the

system need to handle?

2. What degree of Flexibility will be needed?

3. What is the Expected Volume of output?

 Slide 6

Product – Process Matrix

Product–Process Matrix is a pictorial representation

of the four process types (job shop, batch,
repetitive, continuous) based on two variables -
Volume & Variety.

The diagonal of the Matrix represents the ideal

choice of processing system for a given set of
circumstances.
 Slide 7

Learning’s from Video (Product Process Mix)

1. Goods range from standardized commodities such as gasoline and motor oil
for car to items which are made to order like eye glasses
2. Process selection is based on two considerations; variety or how much the
product changes from customer to customer and the volume of demand. A
third consideration, the flexibility of equipment used to create the product is
determined by the product being created and is often determined by the first
two
3. Gasoline manufacturer BEP refines Crude oil into premium fuels in different
refineries across the globe; there is a constant need for its product so
production is continuous.
4. Honda of America uses a repetitive process in the operating plant in Ohio. At
this plant Honda produces a large number of only a few models of their
popular cars.
5. In Illinois Caterpillar plant produces 24 different models of wheel loaders (four
families of construction & agriculture equipments), all in the same facility but
on relatively low volumes
6. When a highly specialized product is needed in a very low volume based on
an individual customer order, the process which matches the product is often
referred to as a job shop, At AED vision, eye glass are made using such a job
shop process.
7. The Product Process Matrix illustrates the general rule of manufacturing four
production processes. Finding and using the appropriate processes is
necessary to ensure quality and keep cost low enough to match the market
demand and volume.
 Product – Process Matrix (Manufacturing)

Process Job Shop Batch Repetitive Continuous

Type
Job Shop Eye Glass
High AED
Vision
Batch Construction
Equipments
Variety Caterpillar
Repetitive Automotive
assembly
Honda

Continuous Oil refinery

Low (flow) BEP
USA

Low Volume High

 Product – Process Matrix (Service)

Process Job Shop Batch Repetitive Continuous

Type
Job Shop Hospital
High
Emergency
Room
Batch TV program
Class Room
Variety Lecture
Repetitive Automatic
Car Wash
Tkt Collector
Continuous Electricity
Low (flow) Internet

Low Volume High

 Slide 10

Introduction to Process Selection

There are five basic process types: job shop, batch,

repetitive, continuous & project. The first four relate to
work that is routine and are found in a wide range of
manufacturing & service settings.
The ideal process selection is to have process
capabilities match product or service requirements.
Failure to do so can result in inefficiencies and higher
cost, creating a competitive disadvantage.
 Slide 11

Process Types: Job Shop

1. It usually operates on a relatively small scale.
2. It is used when a low volume of high variety goods or services are
needed.
3. Processing is intermittent; work includes small jobs, each with
somewhat different processing requirements.
4. High Flexibility using general purpose equipment, skilled labor &
intermittent processing are important characteristics of a job shop.
5. A manufacturing example of a job shop is a tool and dies shop that is
able to produce one-of-a-kind tools.
6. A service example is a veterinarian’s office, which is able to process a
variety of animals and a variety of injuries and diseases.
 Slide 12

Process Types: Batch Processing

1. It is used for moderate volume of goods & where moderate variety is desired.
2. The equipment need not be as flexible as in a job shop, but processing is still
intermittent.
3. The skill level of workers doesn’t need to be as high as in a job shop because
there is less variety in the jobs being processed.
4. Examples of batch systems for products include bakeries, which make bread,
cakes, or cookies in batches, paint, ice cream, soft drinks, magazines, and
books.
5. Examples of services include movie theaters, which show movies to groups
(batches) of people, airlines which carry planeloads (batches) of people from
airport to airport, plays, concerts, music videos, radio and television programs,
and public address announcements.
 Process Types: Repetitive

1. It is used for higher volumes of more standardized goods or services.

2. The standardized output means only slight flexibility of equipment is needed.

Skill of workers is generally low.

3. Examples of product system include production lines and assembly lines.

4. This type of system is sometimes referred to as Assembly.

5. Familiar products made by these systems include automobiles, television sets,

pencils, and computers.

6. An example of a service system is an automatic carwash, cafeteria lines and

ticket collectors at sports event and concerts.

Process Types: Continuous Process

1. It is used for a very high volume of highly standardized output.

2. These systems have almost no variety in output and, hence, no need for equipment

flexibility.

3. Workers’ skill requirements can range from low to high, depending on the complexity of

the system (Generally if equipment is highly specialized, workers skill can be lower).

4. Examples of products made in continuous systems include petroleum products, steel,

sugar, flour, and salt.

5. Examples of Continuous services include air monitoring, supplying electricity to homes

and businesses, and the Internet.

Comparison of Process Types

The Four process types can be compared on four key dimensions:

job variety, process flexibility, unit cost, and output volume.
Job variety, process flexibility, and unit cost are highest for job shop
and gets progressively lower moving from job shop to
continuous processing. Conversely, volume of output is lowest
for Job shop and gets progressively higher moving from job
shop to continuous processing.
All efficient process types fall on the diagonal of the Product-
Process Matrix.
Comparison of Process Types
The following table summarizes the comparison of the four process types on
the four key dimensions: job variety, process flexibility, unit cost, and
output volume.

Dimension Job Shop Batch Repetitive Continuous

Job variety Very High Moderate Low Very low

Process
Very High Moderate Low Very low
flexibility

Unit cost Very High Moderate Low Very low

Volume of
Very Low Low High Very high
output
Hybrid Process Types

The four processes discussed do not always exist in

their “pure” forms. It is not unusual to find hybrid
processes – processes that have elements of other
process types embedded in them.
In a typical manufacturing factory some operations
are in Job shop (repair shop or tool room) or
batch shop (press shop or injection molding shop)
& others are in repetitive mode (assembly lines)
 Process Types: Project Shop

1. Job, Batch, Repetitive & Continuous are ongoing Operations. A

Project is not ongoing & instead it is of limited duration.

2. It is non routine with a unique set of objectives to be accomplished in

a limited time frame

3. Equipment flexibility & workers skill range from low to high

4. Examples range from simple to complicated like launching a new

product, publishing a book, building a dam or bridge, shipbuilding

Thanks and Good Luck

Dr. T. T. Kachwala