Slack, Chambers and Johnston, Operations Management, 6

th
Edition,
Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.1
4.1
Chapter 4
Process design
Slack, Chambers and Johnston, Operations Management, 6
th
Edition,
Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.2
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?
Slack, Chambers and Johnston, Operations Management, 6
th
Edition,
Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.3
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

Slack, Chambers and Johnston, Operations Management, 6
th
Edition,
Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.4
4.4
Nature and purpose of the design activity
Products, services and the processes which produce
them all have to be designed.
Product/service design has an impact on the
process design and vice versa.
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.
Slack, Chambers and Johnston, Operations Management, 6
th
Edition,
Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.5
4.5 The design of products/services and processes are interrelated
and should be treated together
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)
The design of your operations is the
mould where your planning is going to be
based
Slack, Chambers and Johnston, Operations Management, 6
th
Edition,
Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.6
4.6
Delay (a wait, e.g. for materials)
Operation (an activity
that directly adds
value)
Inspection (a check of
some sort)
Transport (a movement
of something)
Storage (deliberate
storage, as opposed to a
delay)
Process mapping symbols
derived from Scientific
Management
Decision (exercising discretion)
Process mapping symbols
derived from Systems
Analysis
Direction of flow
Input or Output from the
process
Activity
Beginning or end of
process
Process mapping symbols
Slack, Chambers and Johnston, Operations Management, 6
th
Edition,
Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.7
4.7
Designing processes
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.
A production process transforms resources into
products/services (including the customer!)
Slack, Chambers and Johnston, Operations Management, 6
th
Edition,
Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.8
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
X X
X
X
Slack, Chambers and Johnston, Operations Management, 6
th
Edition,
Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.9
4.9
H
i
g
h

Volume Low
High
V
a
r
i
e
t
y

Project
L
o
w

Manufacturing process types
Process
tasks
Process
flow
Diverse/
complex
Repeated/
divided
Intermittent
Continuous
Jobbing
Batch
Mass
Contin-
uous
Slack, Chambers and Johnston, Operations Management, 6
th
Edition,
Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.10
4.10
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.
Project processes
Slack, Chambers and Johnston, Operations Management, 6
th
Edition,
Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.11
4.11
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.
Jobbing processes
Slack, Chambers and Johnston, Operations Management, 6
th
Edition,
Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.12
4.12
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.
Batch Processes
Slack, Chambers and Johnston, Operations Management, 6
th
Edition,
Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.13
4.13
Higher volumes than batch
Standard, repeat products (runners)
No set-ups, or almost instantaneous ones.
Low and/or narrow skills
Mass (line) processes
Slack, Chambers and Johnston, Operations Management, 6
th
Edition,
Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.14
4.14
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.
Continuous processes
Slack, Chambers and Johnston, Operations Management, 6
th
Edition,
Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.15
4.15
Volume Low High
V
a
r
i
e
t
y

L
o
w

H
i
g
h

Service process types
Process
tasks
Process
flow
Diverse/
complex
Repeated/
divided
Intermittent
Continuous
Professional
service
Service shop
Mass service
Slack, Chambers and Johnston, Operations Management, 6
th
Edition,
Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.16
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.
Slack, Chambers and Johnston, Operations Management, 6
th
Edition,
Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.17
4.17
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.
Service shops
Slack, Chambers and Johnston, Operations Management, 6
th
Edition,
Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.18
4.18
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.
Mass service
Slack, Chambers and Johnston, Operations Management, 6
th
Edition,
Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.19
4.19
Variety
Volume
Deviating from the natural diagonal on the productprocess
matrix has consequences for cost and flexibility
None
None
The natural line of fit of process to
volume/variety characteristics
Project
Jobbing
Batch
Mass
Continuous
Manufacturing
operations
process types
Professional
service
Service
shop
Mass
service
Service
operations
process types
More process
flexibility than
is needed so
high cost
Less process
flexibility than
is needed so
high cost
Slack, Chambers and Johnston, Operations Management, 6
th
Edition,
Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.20
4.20
Standard sandwich process
Raw
materials
Assembly
Stored
sandwiches
Move to
outlets
Stored
sandwiches
Customer
request
Sell
Take
payment
Customized sandwich old process
Slack, Chambers and Johnston, Operations Management, 6
th
Edition,
Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.21
4.21
The operation of
making and selling
customized
sandwiches
The outline process of
making and selling
customized sandwiches
Prepare
Assemble as
required
Take
payment
Bread and
base filling
Stored
bases
Fillings
Assemble whole
sandwich
Customer request
Use standard
base?
Assemble from
standard base
No
Yes
The detailed process of
assembling customized
sandwiches
Sandwich
materials and
customers
Customers
assembled to
sandwiches
Higher level process map
Slack, Chambers and Johnston, Operations Management, 6
th
Edition,
Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.22
4.22
Bread and
base filling
Assembly of
sandwich
bases
Assemble from
standard base
Take
payment
Assemble whole
sandwich
Customer request
Use standard
base?
No
Yes
Fillings
Stored bases
Customized sandwich - new process
Slack, Chambers and Johnston, Operations Management, 6
th
Edition,
Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.23
4.23
Flow process charts for processing expense
Send to accounts receivable
Reports to batch control
Reports filed
Confirm payment
Report arrives
Stamp and date report
Send cash to receipt desk
Wait for processing
Check expenses report
Wait for processing
Check employee record
Check advance payment
Send to account payable
Wait for processing
Attach payment voucher
Collect retorts into batch
Check against rules
Wait for processing
Batch control number
Check payment voucher
Log report
Batch to audit desk
Wait for batching
Batch of reports logged
Copy of reports to filing
Description of activity
Totals
8
1
2
4
5
6
7
9
10
3
18
11
12
14
15
16
17
19
20
13
26
22
23
24
25
21
7 8 5 5 1
Payment voucher to keying
Before
Reports to batch control
Reports filed
Payment voucher to keying
Confirm payment
Report arrives
Stamp and date report
Check expenses report
Wait for processing
Check reports and vouchers
Attach payment voucher
Collect retorts into batch
Batch control number
Batch to audit desk
Wait for batching
Copy of reports to filing
Description of activity
Totals
8
1
2
4
5
6
7
9
10
3
11
12
14
15
13
5 5 2 2 1
After
Slack, Chambers and Johnston, Operations Management, 6
th
Edition,
Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.24
4.24
Performance objectives
Speed
Dependability
Flexibility
Cost
Quality
What do these mean for different products and
services i.e. architects vs electricity company
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.).
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
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.
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.
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
Slack, Chambers and Johnston, Operations Management, 6
th
Edition,
Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.25
4.25
Performance objectives
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.

Slack, Chambers and Johnston, Operations Management, 6
th
Edition,
Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.26
4.26
Throughput (TH) = Work In Process (WIP) x Cycle Time (CT)
Littles law (a really quite useful law)
Cycle time
= 2 mins
Throughput time = ?
WIP = 10
Throughput time = 10 2 mins
Throughput time = 20 mins
Slack, Chambers and Johnston, Operations Management, 6
th
Edition,
Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.27
4.27
Throughput efficiency =
Work content
Throughput time
100
Throughput efficiency is the work content of whatever is
being processed as a percentage of its throughput time
Throughput efficiency
Slack, Chambers and Johnston, Operations Management, 6
th
Edition,
Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.28
4.28
0 20% 40% 60% 80% 100%
Capacity utilization
Low
X
X
X
High utilization but
long throughput times
Low utilization but
short throughput times
Reduce process
variability
High
10
mins
30
mins
Arrival
frequency
(demand)
Processing
time
Utilization = 33.33 % Q = 0
A
v
e
r
a
g
e

l
e
n
g
t
h

o
f

q
u
e
u
e


X
Utilization = 50 % Q = 0
20
mins
X
10
mins
Utilization = 100 % Q = 0
X
Utilization = 100 % Q = infinity
9
mins
X
515
mins
515
mins
Arrival
frequency
(demand)
Processing
time
Utilization = <100% % Q = >0
P
r
o
c
e
s
s

t
h
r
o
u
g
h
p
u
t

t
i
m
e

(
o
r

i
n
v
e
n
t
o
r
y
)

Throughput time
and capacity
utilisation
Slack, Chambers and Johnston, Operations Management, 6
th
Edition,
Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.29
4.29
10 20 30 40 50 60 70 80 90 100
0
Utilization
A
v
e
r
a
g
e

n
u
m
b
e
r

o
f

u
n
i
t
s

w
a
i
t
i
n
g

t
o

b
e

p
r
o
c
e
s
s
e
d

Decreasing
variability
10 20 30 40 50 60 70 80 90 100
0
Utilization
A
v
e
r
a
g
e

n
u
m
b
e
r

o
f

u
n
i
t
s

w
a
i
t
i
n
g

t
o

b
e

p
r
o
c
e
s
s
e
d

X
Y
Z
High utilization
but long waiting
time
Reduction in
process
variability
Short waiting
time but low
utilization
(a) Decreasing variability allows higher
utilization without long waiting times.
(b) Managing process capacity
and/or variability.
Process utilization, waiting time and variability