Session-03

Production & Operations
Management
Dr. Akshay G Khanzode
Session - 03
Content of Presentation
• Process Selection
• Process Selection and System Design
• Process Strategy
• Job Shop
• Batch
• Repetitive
• Continuous
• Volume and Variety Influence Process Choice
• Costs associated with Process Choice
• Programmable Automation, Flexible Automation
Production & Operations Management, Dr. A.G. Khanzode, SBM, NMIMS Mumbai
Process Selection
• Process selection
• Refers to deciding on the way production of goods or services will be
organized
• It has major implications for
• Capacity planning
• Layout of facilities
• Equipment
• Design of work systems
Process Selection and System Design
Facilities and
Forecasting Capacity Equipment
Planning
Product and Layout

Service Design
Process
Technological Selection Work
Change Design
Process Strategy
• Key Aspects of Process Strategy:
• Capital Intensity
• The mix of equipment and labor that will be used by the organization
• Process flexibility
• The degree to which the system can be adjusted to changes in processing
requirements due to such factors as
• Product and service design changes
• Volume changes
• Changes in technology
Process Selection
Two key questions in process selection:
1. How much variety will the process need to be able to handle?
2. How much volume will the process need to be able to handle?
Job Shop
Batch
Repetitive Continuous
Job Shop
• A job shop usually operates on a relatively small scale
• It is used when a low volume of high-variety goods or
services will be needed
• Processing is intermittent; work includes small jobs,
each with somewhat different processing
requirements
• High flexibility using general-purpose equipment and
skilled workers are important characteristics of a job
shop
• A manufacturing example of a job shop is a tool and
die shop that can produce one-of-a-kind tools
• A service example is a veterinarian’s office, which can
process many types of animals and a variety of
injuries and diseases
Job Shop - Where can be used?
• Custom Manufacturing
• Companies that produce unique, one-of-a-kind products or small quantities of
specialized items often utilize job shop production
• This includes custom furniture makers, bespoke tailoring, and specialty
machine shops
• Repair Services
• Businesses that provide repair services for complex items like machinery,
vehicles, or electronic equipment often operate as job shops, as each repair job
is unique and requires different processes and skills.
• Tool and Die Shops
• These shops create custom tools, dies, and molds for specific manufacturing
processes, catering to unique specifications for each client.
Job Shop - Where can be used?
• Prototype Development
• Companies that specialize in developing prototypes for new products often use a job
shop approach to accommodate the variability and customization inherent in
prototype design and fabrication.
• Small Batch Production
• For products that are not mass-produced but require a series of varied operations, like
limited edition luxury goods, job shop production is ideal.
• Artisanal and Craft Workshops
• Artisans and craftspeople who produce handmade goods, such as pottery, jewelry, or
art pieces, typically use a job shop type of process due to the unique nature of each
piece.
• Highly Specialised Manufacturing
• Industries like aerospace, defense, or medical equipment, where components often
require precise, specialized production runs, can benefit from the flexibility of a job
shop setup
Job Shop
Job Shop
Video Focus
Area for
Manufacturing
Batch Process
• Batch processing is used when a moderate
volume of goods or services is desired, and
it can handle a moderate variety in products
or services
• The equipment need not be as flexible as in
a job shop, but processing is still
intermittent
• 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
Batch Process
• Examples of batch systems include
bakeries, which make bread, cakes, or
cookies in batches
• Movie theaters, which show movies to
groups (batches) of people; and airlines,
which carry planeloads (batches) of people
from airport to airport
• Paint, ice cream, soft drinks, beer,
magazines, and books
• Examples of services include plays,
concerts, music videos, radio and television
programs, and public address
announcements
Batch Process
Repetitive
• When higher volumes of more standardized
goods or services are needed, repetitive
processing is used
• The standardized output means only slight
flexibility of equipment is needed
• Skill of workers is generally low
• Examples of this type of system include
production lines and assembly lines
• Familiar products made by these systems include
automobiles, television sets, smartphones, and
computers
• An example of a service system is an automatic
carwash
• Other examples of service include cafeteria lines
and ticket collectors at sports events and concerts
Continuous Process
• When a very high volume of non-discrete, highly
standardized output is desired, a continuous
system is used
• These systems have almost no variety in output
and, hence, no need for equipment flexibility
• Workers’ skill requirements can range from low
to high, depending on the complexity of the
system and the expertise that workers need
• Generally, if equipment is highly specialized,
worker skills can be lower
• Examples of non-discrete products made in
continuous systems include petroleum products,
steel, sugar, flour, and salt
• Continuous services include air monitoring,
supplying electricity to homes and businesses,
and the internet
Continuous Process
Description, Advantages, Disadvantages
Repetitive/
Job Shop Batch Continuous
Assembly
Semi-
Customized Standardized
standardized Highly standardized
Description goods or goods or
goods or Goods or services
services services
services
Flexibility; easy
Able to handle a Low unit
to add or Very efficient, very
Advantages wide variety cost, high volume,
change products high volume
of work efficient
or services
Slow, high cost Moderate cost Very rigid, lack of
per unit, per unit, Low flexibility, variety,
Disadvantages complex moderate high cost costly to change,
planning and scheduling of downtime very high cost of
scheduling complexity downtime
Volume and Variety Influence Process Choice
Costs associated with Process Choice
The Need to Manage Technology
• Process technology and information technology can have a
profound impact on:
• Costs
• Productivity
• Competitiveness
Automation
• Automation
• Machinery that has sensing
and control devices that
enable it to operate
automatically
• Fixed automation
• Programmable automation
• Flexible automation
Programmable Automation
• 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
• Computer-Aided Manufacturing (CAM)
• The use of computers in process control, ranging from robots to automated
quality control
• Numerically Controlled (N/C) Machines
• Machines that perform operations by following mathematical processing
instructions
• Robot
• A machine consisting of a mechanical arm, a power supply, and a controller
Flexible Automation
• Flexible Automation
• evolved from programmable automation. It uses equipment that is
more customized than that of programmable automation. A key
difference between the two is that flexible automation requires
significantly less changeover time.
• FMS (Flexible Manufacturing System)
• A group of machines designed to handle intermittent processing
requirements and produce a variety of similar products
• CIM (Computer Integrated Manufacturing)
• A system for linking a broad range of manufacturing activities through an
integrated computer system
FMS (Flexible Manufacturing System)
FMS
• A group of machines designed to handle intermittent
processing requirements and produce a variety of similar
products
• Have some of the benefits of automation and some of the flexibility
of individual, or stand-alone, machines
• Includes supervisory computer control, automatic material
handling, and robots or other automated processing equipment
FMS (Flexible Manufacturing System)
Computer Integrated Manufacturing (CIM)
• CIM
• A system for linking a broad range of manufacturing activities through an
integrated computer system
• Activities include
• Engineering design
• FMS
• Purchasing
• Order processing
• Production planning and control
• The overall goal of CIM is to link various parts of an organization to
achieve rapid response to customer orders and/or product changes, to
allow rapid production and to reduce indirect labor costs
Computer Integrated Manufacturing (CIM)

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Production & Operations

Product and Layout

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