Chapter 2

Operations
Processes

02/16/24
 Introduction
 Process design is defined by the nature of the activities
that we pursue in an operating system.
 If the manufacturing system caters to a wide range of
products, it demands a certain type of process design,
as opposed to one that mass-produces just one or two
variations of a product.
 By choosing an appropriate process, it is possible to
streamline the product flow and deploy appropriate
operations management practices commensurate to the
process design.
 2.1 Operations Process
A) Meaning:
C) Process Characteristics in
Operational processes constitute the Operations:
core business and create the primary
value stream. Within any operation, the
mechanisms that transform inputs into
outputs are called processes.

B) Definitions:
B. Mahadevan :
“A process is the basic building block of
operations. It consists of a set of
activities that need to be performed by
consuming some resources and time.”

N. Slack :
“Operations processes are
‘arrangements of resources that
produce some mixture of products and
services’.”
 2.1 Operations Process
D) Types of Processes and Operations Systems :
Process characteristics are largely determined by the flow of products in a
manufacturing system. Flow simply means the order of operations or activities
within a process. The process flow consists of a series of steps, which
determine how a product is manufactured, or a service provided.
 2.1 Operations Process
D) Types of Processes and Operations Systems :

i) Continuous Flow System :

a) Definitions :
H.A. Harding :
“Continuous flow production is the manufacture of a product by a series of
operations, each article going on to a succeeding operation as soon as available.”

Elwood Buffa :
“Continuous flow production situations are those where the facilities are
standardised as to routings and flow since inputs are standardised. Therefore a
standard set of processes and sequences of process can be adopted”.

b) Features of Continuous Flow System :

The flow of production is continuous. It is not intermittent.
The products are standardised.
The products are produced on predetermined quality standards.
The products are produced in anticipation of demand.
Standardised routing sheets and schedules are prepared.
 2.1 Operations Process
d) Types of Continuous Flow System

1] Mass Production :
 2.1 Operations Process
d) Types of Continuous Flow System

2] Assembly Line :
A) Characteristics of Assembly Line :
It is used in case of dedicated plant and equipment with zero flexibility.
Assembly line is very useful in fully automatic material handling.
Process follows a predetermined sequence of operations.

B) Advantages of Assembly Line :

Product and process sequence is standardised.
Rate of production is high with reduced cycle time.
Due to line balancing, there is higher capacity utilisation.

C) Limitations of Assembly Line :

Flexibility to accommodate and process number of products does not exist.
High investment is required for setting the flow lines.
 2.1 Operations Process
ii) Intermittent Flow System :
A) Definition :
Elwood Buffa :
“Intermittent situations are those where the facilities must be flexible enough to
handle a variety of products and sizes, or where the basic nature of the activity
imposes change of important characteristics of the input (e.g. change in the
product design). In instances such as these, no single sequence pattern of
operations is appropriate, so the relative location of the operation must be a
compromise that is best for all inputs considered together”

B) Features of an Intermittent Flow System :

The flow of production is not continuous. It is intermittent.
Wide varieties of products are produced.
The volume of production is small.

C) Types of Intermittent Flow System :

Job /Jumbled Flow Production
Batch Production
Project Process
 2.1 Operations Process
ii) Intermittent Flow System :
A)Job /Jumbled Flow Production :

1. Characteristics of Job Production :

The main feature of job production is high variety of products and low volume.
Job production uses general-purpose machines and facilities.
Job production uses highly skilled operators who can take up each job as a
challenge because of uniqueness.

2. Advantages of Job Production :

Because of general-purpose machines and facilities, a wide variety of products
can be produced.
Operators will become more skilled and competent, as each job gives them
learning opportunities.

3. Limitations of Job Production :

Job shop production suffers from higher cost due to frequent set up changes.
Higher level of inventory at all levels and hence higher inventory cost.
 2.1 Operations Process
ii) Intermittent Flow System :

B) Batch Production :

1. Characteristics of Batch Production :

Batch production system is used when there is shorter production runs.
Batch production system is useful, when the plant and machinery are flexible.
Batch production is used when plant and machinery setup is used for the

2. Advantages of Batch Production :

The plant and machinery is properly utilised in batch production.
Batch production promotes functional specialisation.
Cost per unit is lower as compared to job order production.

3. Limitations of Batch Production :

Material handling is complex because of irregular and longer flows.
Production planning and control is complex.
Work in process inventory is higher compared to continuous production.
 2.1 Operations Process
ii) Intermittent Flow System :
C) Project Process :

1. Characteristics :
Planning tools that incorporate uncertainty are essential in managing such
situations.
The number of entities involved in accomplishing the various tasks is numerous.
These entities have several complex interactions amongst themselves.

2. Advantages of Project Production :

Requirement of resources for project production is not uniform. At the end of the
project, resources from the project are redeployed elsewhere in other projects.
A project generally involves many tasks, each having its own specialization to be
performed by different agencies.

3. Disadvantages of Project Production :

Projects tend to be complex, take a long time, and be large.
Projects typically make heavy use of certain skills and resources at particular
stages and then have little use for them the rest of the time.
2.2 Process Product
Matrix
 2.2 Process Product
A) Dimensions of the Process Product Matrix :
Matrix
1. Process Structure/Process Life Cycle :
The process structure/process life cycle dimension describes the process choice
(job shop, batch, assembly line, and continuous flow) and process structure
(jumbled flow, disconnected line flow, connected line flow and continuous
flow).

2. Product Structure/Product Life Cycle :

The product structure/product life cycle describes the four stages of the product
life cycle (low volume to high volume) and product structure (low to high
standardisation).

B) Relation between Process Product Matrix and Production Process

1. Job Shop Process :
Organisations with a job shop process provide a variety of products with
relatively low production volumes.
2. Batch Process :
Batch processes support higher production volumes than job shops, but the
volume per model is insufficient to justify dedicated equipment.
3. Assembly Line Process :
Assembly line processes are used to produce a group of highly similar products.
 2.2 Process Product
Matrix
C) Strategic Benefits of Process Product Matrix :

1. Examine Market-Manufacturing Congruence Issues :

This matrix is used to examine market-manufacturing congruence issues and to
facilitate the understanding of the strategic options available to a company.

2. Helps in Viewing Strategies in Unified Way :

The product-process matrix can help an organization to view its
marketing and operations strategies in a unified way.

D) Continuum of Production Systems based on Process Product Matrix :

1. Process Focused Systems :

A production system for many product categories must be flexible to process or
transform the product in accordance with the client specifications or
requirements.

2. Product Focused Systems :

Many products are mass produced. These are high volume standardized
products. These systems approach continuous flow in the use of the facilities.
 2.3 Layout
A) Meaning :
The ‘layout’ of an operation or process means how its transforming resources
are positioned relative to each other and how its various tasks are allocated to
these transforming resources.

B) Definitions :
James Lundy:
“Layout identically involves the allocation of space and the arrangement of
equipment in such a manner that overall costs are minimised”.

C) Objectives of a Good Layout :

1. Inherent Safety :
No processes, which might constitute a danger to either staff or customers,
should be accessible to the unauthorised.

2. Length of Flow :
The flow of materials, information or customers should be channelled by the
layout to be appropriate for the objectives of the operation.

3. Staff Conditions :
Staff should be located away from noisy or unpleasant parts of the operation.
 2.3 Layout
D) Principles of Layout :

1. Principle of Integration :
A good layout is one that integrates men, materials, machines and supporting
services and others in order to get the optimum utilisation of resources and
maximum effectiveness.

2. Principle of Minimum Distance :

This principle is concerned with the minimum travel (or movement) of man and
materials.

3. Principle of Cubic Space Utilisation :

The good layout is one that utilises both horizontal and vertical space. It is not
only enough if only the floor space is utilised optimally but the third dimension,
i.e., the height is also to be utilised effectively.

4. Principle of Flow :
A good layout is one that makes the materials to move in forward direction
towards the completion stage, i.e., there should not be any backtracking.
.
 2.3 Layout
E) Types of Layout :

1] Process Layout :
Separate departments are established for each specialised operation of
production and machines relating to that function are assembled there.

a) Advantages of Process Layout :

Wide Flexibility
Lower Investment in Machines
Better Quality Product
Diversity of Tasks and Variety of Jobs
Nature of Operations

b) Disadvantages of Process Layout :

Material Handling Cost
Wastage of Space and Capital
Long Processing Time
Inventory Investments
Cost of Supervision is High
 2.3 Layout
E) Types of Layout :

2] Product Layout :
It is also known as line layout. It implies that various operations on a product are
performed in a sequence and the machines are placed along the product flow
line.

a)Advantages of Product Layout :

Automatic Material Handling

Smooth and Continuous Flow of Work
Reduced Transportation Time and Cost
Less Work-in-Process Inventory
Less Space Occupied

b) Disadvantages of Product Layout :

Breakdown of Machines
No Flexibility in Layout
High Labour Cost
Lack of Flexibility in Facility Modification
 2.3 Layout
E) Types of Layout :

3] Fixed-Position Layout :
It is also known as ‘Stationary Layout’, ‘Project Layout’ or ‘Static Product
Layout’. The manufacturing operations require the movements of men,
machines, and materials.

a)Advantages of Fixed Position Layout :

Provides Flexibility
Saving in Time
Job Satisfaction and Skill Improvement
Lower Labour Cost

b) Disadvantages of Fixed Position Layout :

Higher Capital Investment

Large Space Requirements
Unsuitability
Possibility of Confusion and Conflicts in Workgroups
 2.3 Layout
E) Types of Layout :

4] Cellular Layout :
Cellular layout is also known as ‘Group Technology’ layout. It is a hybrid type of
layout. A group technology (cellular) layout groups dissimilar machines into work
centres (or cells) to work on products that have similar shapes and processing
requirements.

a)Advantages of Cellular Layout :

Reduced Material Handling and Transit Time

Reduced Setup Time
Reduced Work-in-Process Inventory
Better Use of Human Resources

b) Disadvantages of Cellular Layout :

Inadequate Part Families

Poorly Balanced Cells
Expanded Training and Scheduling of Workers
Increased Capital Investment
 2.4 Service System Design
A) Meaning : C) Characteristics of a Well
The design process is the Designed Service System :
transformation of an idea, needs, or
wants by consumers or the
marketplace at large, into a product
that satisfies these needs.

B) Criteria to Classify Service

Systems :
Service marketing and global market
considerations have significant
implications for the design of a service
system. Five criteria used to classify
service systems are:
level of customer contact
capital intensity;
degree of customer involvement
customer satisfaction
market environment
 2.4 Service System Design
D) Service System Design Matrix :
The service system design matrix is a tool used to understand the different
elements of a service system. The service design matrix defines the
relationship between sales opportunity and production efficiency.
 2.4 Service System Design
D) Service System Design Matrix :

a)Factors of Service System Design Matrix :

1. Degree of Contact/ Service Delivery Options :

The first factor is the degree of contact between the consumer and service
provider shown at the top of the matrix. Service delivery options are ordered
from left to right by increasing richness of information transfer the degree of
customer contact with the core service operations.

2. Opportunity for Sales :

The left side of the matrix tracks the second factor of service, which is the
opportunity for sales.

3. Production Efficiency :
The right side of the matrix represents the third factor of the system; the
production efficiency. It shows the impact on production efficiency as the
customer exerts more influence on the operation.
 2.4 Service System Design
D) Service System Design Matrix :

b) Strategic Uses of Service System Design Matrix :

1. Systematic Integration of Operations and Marketing Strategy :

Enabling systematic integration of operations and marketing strategy. Trade-offs
become more clear-cut and, more important, at least some of the major design
variables are crystallized for analysis purposes.

2. Clarify Combination of Service Delivery :

Clarifying exactly which combination of service delivery the firm is in fact
providing.

3. Permitting comparison :
Permitting comparison with how other firms deliver specific services. This helps
to pinpoint a firm‘s competitive advantage.

4. Indicating Evolutionary or Life Cycle Changes :

Indicating evolutionary or life cycle changes that might be in order as the firm
grows, unlike the product-process matrix for manufacturing,
 2.4 Service System Design
E) Design of Service Systems :
1. Concept Generation :
The ideas for new product or service concepts
can come from sources outside the
organisation.

2. Concept Screening :
Not all concepts, which are generated, will
necessarily be capable of further development
into products and services

3. Preliminary Design :
Having generated an acceptable, feasible and
viable product or service concept the next
stage is to create a preliminary design.
4. Evaluation and Improvement :
The purpose of this stage in the design activity is to take the
preliminary design and see if it can be improved before the
product or service is tested in the market

5. Prototyping and Final Design :

Prototypes are needed, so that the products and services can
be tested.
 2.5 Service Blueprinting
A) Meaning :
The blueprint is an operational tool that describes the nature and the
characteristics of the service interaction in enough detail to verify, implement
and maintain it.

B) Components of Service Blueprinting :

1. Customer Actions :
“Customer actions” include all of the steps that customers take as part of the
service delivery process.

2. Onstage / Visible Contact Employee Actions :

The next critical component is the “onstage / visible contact employee actions,”
separated from the customer by the line of interaction.

3. Backstage / Invisible Contact Employee Actions :

The next significant component of the blueprint is the “backstage / invisible
contact employee actions,” separated from the onstage actions by the very
important line of visibility.
 2.5 Service Blueprinting
C) Steps in Building a Service Blueprint :
 2.5 Service Blueprinting
D) Benefits of Service Blueprinting :

1. Improvement of Service System :

Service blueprints can be reconstructed regularly and used to evaluate and
improve the service system over time.

2. Visual Representation :
Service blueprint provides the visual representation, thereby making it easier to
determine which activities are truly necessary, which can be deleted, and which
can be modified.

3. Identification of Customer Contact Points :

Customer contact points are clearly identified. This helps to pinpoint activities that
can be performed separately and where opportunities for co-processing of
activities exist.

4. Identification of Service Failure Points :

Likely service failure points are identified. This is helpful in developing plans to
minimise the chance of a failure and in identifying possible corrective actions if a
failure does occur.