BUSINESS &

OPERATIONS PROCESS
Fred Anthony Ageas
 CONTENT

Process Characteristics in Operations:

Volume, Variety, Flows, Types of Processes & business operations.

 BUSINESS PROCESS

● collection of linked tasks which find their end in the delivery of a

service or product to a client.
● set of activities and tasks that, once completed, will accomplish an
organizational goal.

Ex. bank loan

BUSINESS
INPUTS OUTPUT
PROCESS
3 CATEGORIES OF BUSINESS PROCESS

1. Upper management processes Governs the operation of the entire

organizations

2. Operational process Core processes that make up the value

stream.

3. Supporting processes Support the core process

 Operation Process

• Operation is a process designed to convert input in to a

valuable product or Service (Transformation).

• The Raw Materials, Information, Ideas, capital etc. becomes

the inputs in a Manufacturing Process to result in desire output
---a Product or Service
 Operation Process
• Improvisation in the process designs adds value & helps
companies to perform better

• Well designed Operation process allows companies to; -

Lower cost of Manufacturing

- Efficiency in Operations

- High Quality Products to deliver higher value

 Operation Process
Inputs:
● Men Tranformation Process:
● Materials ● Product design Outputs:
● Machines ● Process planning ● Products
● Informations ● Production control ● services
● capital ● maintenance

Continuous:
● Inventory
● Quality
● cost

Environment Feedback Information

 Operations Management

• Operation Management involves two major activities

Operations Management
Process Design Process Control

1. Product development
1. Effective and efficient
2. Choice of Technology
utilization of available
3. Manufacturing Process
resources
4. Output Capacity
5. Quality and cost of
product
 Selection of Process may result in Competitive Advantage

1) Low-cost operations
2) High performance design
3) Consistent quality
4) Fast delivery time
5) On-time delivery
6) Development speed
7) Product customization
8) Volume flexibility
 Determinants of Process Characteristics

-supply VOLUME - Goods

-demand VARIETY - Structural
- Random
variations

FLOW
 5 Key Decisions in Process Management

- Manufacturing & service operations can be characterized/ Classified as one of the

following:

1) Project 2) Job Shop 3) Batch Flow 4) Line Flow 5) Continuous Flow

 5 Key Decisions in Process Management
Process Choice

1) Project Process:

- A project is about creating something new or implementing a change, whereas a

process is intended to create value by repeatedly performing a task. In a project,

objectives and plans can be changed by the stakeholders that give a project its
mandate and resources, along with agreement from the project team.
 Manufacturing and Service classification

Batch Flow Process:

-Batch processes generate a product but the sequential

processes need not necessarily generate a product.
 Manufacturing and Service classification

Line Flow Process:

- A line flow process lies between the batch and continuous processes - High
Volume Production, Standardized Products, hence resources can be well organized -
Materials move linearly from one operation to the next according to a fixed
sequence - Repetition of same process with little or no variability
 Manufacturing and Service classification

Line Flow Process:

-line processes work in fixed sequence.

- where identical, standardised items are produced on an assembly

line.
 Manufacturing and Service classification

Continuous Flow Process:

- Such firms are also referred to as the process industry

- A continuous process is the extreme end of high-volume, standardized

production with rigid line flows

- uninterrupted flow from receipt of ingredients through packaging.

 5 Key Decisions in Process Management

2. Vertical Integration

• Every Manufacturing organization performs various processes to provide

value to their customers (Value Chain).
Vertical Integration

• More the vertical integration, less will be outsourcing. • These decisions are
sometimes called make-or-buy decisions, with - Make decision meaning more
integration & - A buy decision meaning more outsourcing.
Resource Flexibility

• Employee flexibility is new product (design) customization using available

facilities (resources)

• Another flexibility is capacity flexibility, which is used to increase or decrease

output without affecting profitability Ex: A Fast Food Restaurant remaining open
for 24 hours in a day from 12 hours working a day
Resource Flexibility

• Flexible Work Force: An Operation Manager should give on & off the job
training to their workforce to make them flexible at point of work station.

• Worker flexibility can be one of the best ways to achieve reliable customer
service and improve capacity holdups.
Customer Involvement

• is the extent to which customers interact with the process.

• The amount of customer involvement may range from self-service to

customization of product.

• Product Customization: Custom-designed and built homes are the examples

where the customers are involved in product customization
Capital Intensity

• Capital intensity is the mix of equipment and human skills in the process; the
greater the relative cost of equipment, the greater is the capital intensity.

• With increase in Production output manager can decide to go little to semi to full
automation of equipments.

• Increasing output lowers the capital intensity

end…………….

Thank you!!!