CBME 1 Module 5

COLLEGE OF BUSINESS, ADMINISTRATION, AND ACCOUNTANCY
CBME 1
Operations Management with
Total Quality Management
Prepared by:
Aldon M. Francia, MBA

Asst. Program Chair, BSA/BSAIS
COLLEGE OF BUSINESS, ADMINISTRATION, AND ACCOUNTANCY
Module 4:
Process Selection and
Facility Layout
Presented by:
Aldon M. Francia, MBA

Asst. Program Chair, BSA/BSAIS
Learning Outcomes
At the end of this module, students should be able to:

1. explain the strategic importance of process selection and the

influence it has on the organization and its supply chain;
2. name the two main factors that influence process selection;
3. compare the various processing types; and
4. explain the importance of technology in process selection.
Introduction
Choosing the organization of the production of goods or services
is referred to as process selection. It has significant effects on work
system design, facility layout, equipment, and capacity planning.
When new products or services are being designed, process
selection happens routinely. However, it also happens occasionally
as a result of pressure from rival companies and technological
advancements in goods or machinery.
Lesson 1. Process Selection (Stevenson, 2018)
Demand determines the process selection. The following two
issues are crucial to process selection:
1. What degree of diversity must the procedure be able to handle?

2. What volume must the procedure be able to handle?
The solutions to these questions will act as a guide in choosing

the best approach. A higher level of one usually indicates a lower
level of the other; volume and variety typically go hand in hand.
However, the degree of diversity that the process will need to
handle will directly affect the amount of flexibility that is required
for employees and equipment. The larger the variety, the greater
the flexibility required.
Variety also has another crucial component. Variety entails
either having distinct operations for each good or service, with
consistent demand for each, or being willing to put up with some
downtime, or setting up equipment whenever a new good or
service needs to be produced.
Process Types
The five fundamental process types are project, job shop, batch,
repetitive, and continuous.
Job Shop
Typically, a job shop operates on a modest scale. When a small
number of diverse products or services are anticipated to be
required, it is used. Processing occurs sporadically; labor consists
of small projects with varying processing needs. A job shop should
have skilled staff, general-purpose equipment, and high levels of
flexibility. A tool and die shop that can create unique tools is an
illustration of a job shop in the manufacturing industry. A
veterinarian's office, which can handle a range of animals and
injuries and illnesses, is an illustration of a service.
Batch
When a moderate volume of goods or services is required, batch
processing is utilized because it can manage a moderate range of
goods and services. Processing is still sporadic, but the equipment
does not need to be as adaptable as in a job shop.
Because there is less variation in the jobs being processed than
there would be in a job shop, the skill level of the workers does
not need to be as great. A few examples of batch systems are
bakeries that produce bread, cakes, or cookies in batches, movie
theaters that show films to groups of people (or batches), and
airlines that transport planeloads of people from one airport to
another. Paint, ice cream, soft drinks, beer, periodicals, and books
are more examples of goods that are well suited for batch
production. Plays, concerts, music videos, radio and television
shows, and public address announcements are more types of
services.
Repetitive
Repetitive processing is employed when bigger volumes of more
standardized items or services are required. Because of the
standardized output, minimal equipment flexibility is required.
Worker skill levels are typically poor. Production and assembly
lines are two examples of this kind of system. In fact, this kind of
procedure is occasionally called assembly. These systems produce
common items like cars, televisions, pens, and computers.
Continuous
A continuous system is employed when a very high volume of non-
discrete, highly uniform output is sought. Since the output from these
systems is so uniform, there is no need for flexible equipment.
Depending on the complexity of the system and the level of expertise
required by the workforce, the skill requirements might range from
minimal to high. In general, workers' skills may be lower if the
equipment is highly specialized. Petroleum, steel, sugar, bread, and salt
are a few examples of non-discrete goods produced in continuous
systems. The provision of power to homes and businesses, as well as
the Internet, are continuous services.
These types of processes can be found in a variety of
manufacturing and service environments. It is preferable for
process capabilities to align with those of the required goods or
services. Failure to do so may lead to inefficiencies, unnecessarily
high expenses, and possibly a competitive disadvantage.
The highest levels of work diversity, process flexibility, and unit
cost are found in job shops, and these values decrease steadily as
one moves from a job shop to continuous processing. In contrast,
the output volume is lowest for a job shop and increases steadily
as one moves from a work shop to continuous processing.
Project
A project is used for non-routine labor that has a specific set of
goals that must be achieved in a finite amount of time. Examples
range from straightforward to complex and include staging a play,
advising, producing a movie, launching a new good or service,
publishing a book, constructing a bridge, and building a dam.
Worker skill levels and equipment adaptability might range from
low to high.
Process type affects supply chain needs as well. Processes that
are repetitive and ongoing require consistent inputs of high-
volume commodities and services. Delivery dependability in terms
of timing and quality is crucial. Suppliers may need to be able to
handle orders with changing quantity and timing due to job shop
and batch processing. Seasonality may play a role in some
situations, therefore suppliers must be able to meet spikes in
demand.
Product and Service Profiling
By identifying important product or service dimensions and then
choosing the proper methods, product or service profiling can be
utilized to prevent any irregularities. The variety of goods or
services that will be processed, anticipated order volumes, pricing
schemes, anticipated frequency of schedule adjustments, and
order-winning requirements are frequently key aspects.
Lean Process Design
Lean process design is advised by broad principles. Waste
minimization is one principle that is of special significance in this
context because it ties to sustainability goals. In order to achieve
level production and hence enhance process flow, lean design also
emphasizes the elimination of workload variance throughout the
entire process.
Lesson 2. Technology (Stevenson, 2018)
The use of technology and technical innovation frequently has a
significant impact on corporate operations. The discovery and
development of new or improved goods, services, or methods for
delivering them are referred to as technological innovation.
Technology is the use of scientific knowledge to develop and
improve products, services, and/or the methods used to
manufacture or deliver them. High technology describes the most
cutting-edge and developed tools and/or procedures.
Costs, productivity, and competitiveness can be significantly impacted
by process technology and information technology. Process technology
refers to the techniques, tools, and processes used in the manufacture
of products and the delivery of services. This extends to supply chain
procedures in addition to internal organizational activities. Information
technology (IT) is the study of how to store, process, and send
information using computers and other electronic devices. IT has a
significant impact on how businesses operate nowadays. This covers
electronic data processing, the use of bar codes and RFID tags to
identify and track products, data transfer, the Internet, e-commerce, e-
mail, and more. It also covers devices used to collect point-of-sale
information.
Items can be traced during manufacture and in inventory via radio
frequency (RFID) tags. Before sending products to a client or a
distribution center, readers at a packing station can confirm that the
correct items and amounts were picked for outbound goods. RFID tags
can be applied in a medical setting in a variety of ways. One is to make
it easier to keep an accurate inventory of hospital clothing by
automating the distribution of clean clothing. Each individual working
in the hospital may wear an RFID tag.
Processing technology innovation can have a huge positive impact
on enterprises by improving quality, reducing costs, boosting
efficiency, and extending processing capabilities. Examples include
the use of lasers in surgery and the development of laser measuring
tools, improvements in medical diagnostic technologies, high-speed
Internet access, high-definition television, online banking, information
retrieval systems, and quick search engines. Processing technologies
are frequently acquired rather than developed internally by a
company.
Automation refers to equipment with sensing and control
components that allow it to function automatically. It might take the
form of single automated operations or fully automated factories.
Services that are automated are becoming more and more crucial.
Examples include automated inspection, automated storage and
retrieval systems, package sorting, mail processing, e-mail online
banking, and E-Z pass. They range from automated teller machines
(ATMs) to automated heating and air conditioning.
In comparison to human work, automation has a lot of benefits. It
has little variation, whereas it is challenging for a human to carry out a
task repeatedly, accurately, and in the same amount of time.
Variability has a negative impact on quality and the capacity to fulfil
deadlines in a production environment. In addition, machines don't
become bored or distracted, go on strike, demand more pay, or file
labor complaints. Automation also has the benefit of lowering variable
expenses. Job-processing needs must be specified for automated
processing to be an option (i.e., have very little or no variety).
Automation is being used more frequently by businesses in both
the industrial and service sectors to cut costs, boost productivity,
and enhance consistency and quality.
The promotion of automation as a tactic essential for
competitiveness is common. However, compared to human work,
automation also has several drawbacks and restrictions. First of all,
it can be expensive. Technology is expensive; often, high output
quantities are needed to cover high expenditures.
Furthermore, compared to human labor, automation offers
significantly less flexibility. Once a process has been automated,
there are compelling reasons to keep it that way. Additionally,
people sometimes worry about automation because they think it
will make them lose their jobs. The morale and production may
suffer as a result.
In order to properly appreciate all the implications, decision-
makers must carefully choose whether to automate or how much
to automate. A manufacturing system must be carefully planned
and thought out in order to include automation. Otherwise, it could
result in serious issues. Automation has significant effects on cost
and flexibility in addition to how well it fits with broader strategic
aims. If it has decided to automate, caution must be used to
eliminate trash from the system before automating in order to
prevent the waste from being built into the automated system.
Automation can be divided into three categories: fixed,
programmable, and flexible.
The least flexible type of automation is fixed. It employs
expensive, specialized equipment to carry out a predetermined set
of tasks. Its main benefits are low cost and high volume, while its
main drawbacks are limited diversity and the high expense of
making significant modifications to either the product or the
manufacturing process.
Utilizing expensive general-purpose machinery under the
supervision of a computer software that specifies both the order of
operations and specifics regarding each activity is known as
programmable automation. With this kind of automation, a broad
range of low-volume products can be affordably produced in tiny
batches. Applications of programmable automation include some
robots and numerically controlled (N/C) devices.
Flexible automation is employed in a variety of formats in real life.
A flexible manufacturing system (FMS) is a collection of devices that
includes robots or other automated processing machinery,
autonomous material handling, and supervisory computer control.
These systems are able to create a variety of items that are identical
thanks to reprogrammable controllers. Systems can have three, four, or
even more than a dozen devices. They are made to address sporadic
processing demands while utilizing some of the advantages of
automation and some of the flexibility of standalone, or individual,
devices.
3D Printing
The method of creating three-dimensional items by the application
of successive layers of material is known as additive manufacturing, or
3D printing. Almost any size or shape is possible for the objects. These
processes remove material using techniques including cutting,
grinding, sanding, drilling, and milling, which makes them distinct from
many well-known processes that use subtractive manufacturing to
create products. Additionally, the time required to produce an object
using 3D printing is typically substantially longer than the time
required to produce an object using more traditional methods in a
factory.
Applications
Along with a few consumer uses, 3D technology is being used
commercially in a variety of industries.
Benefits
Despite the fact that 3D printing isn't expected to displace more
popular high-volume production methods in the near future, primarily
due to its relative slowness, it does offer an alternative production
method that has value in a variety of applications.
Manufacturers have been able to significantly cut the cost and/or time
needed to design or build products in some of those areas. Production
of replacement parts in the event of equipment failure when no spare
parts are available is one of the examples.
Drones
Drones are typically small, unmanned aircraft flown remotely. Drones
are proving to be very helpful in assessing storm and earthquake
damage, especially in situations where access by vehicles or on foot is
difficult or impossible due to the terrain, debris, or where roads or
bridges are impassable. They are also useful for assessing crop
damage, monitoring forest fires, and obtaining visual detail in places
that are hazardous to humans or that are not readily accessible.
Drones can also be used to carry medicines and medical supplies
when they are urgently needed in far-off locations. Despite all of these
advantages, using drones has a number of drawbacks. In addition to
mechanical failure or operator mistake, there is a chance that the
drone will crash into other drones, electrical wires, birds, or other
objects, which could prevent it from carrying out the planned duty.
Additionally, crashes may result in property damage or injury to people
nearby.
Lesson 3. Process Strategy (Stevenson, 2018)
Flexibility does not always provide the best option when processing
decisions. Systems and equipment that are more versatile are frequently
more expensive and less effective than less flexible alternatives. Flexibility
isn't always necessary because the items are mature, require few design
modifications, and have a consistent production volume. This kind of
circumstance typically necessitates specialized processing equipment, with
little requirement for flexibility. The message is obvious: Flexibility should be
applied with extreme caution and should only be used in instances when it
is obviously necessary. In reality, flexible systems are chosen by decision-
makers for one of two reasons: demand diversity or demand uncertainty.
With better forecasting, the second cause can be removed.
Lesson 4. Strategic Resource Organization:
Facilities Layout (Stevenson, 2018)
With a focus on the flow of work (customers or materials) through
the system, layout refers to the arrangement of departments, work
centers, and equipment. The primary layout design categories and the
models used to assess design choices are discussed in this section.
Layout decisions, like those in other aspects of system design, are
crucial for three main reasons: (1) they demand significant outlays of
time and resources; (2) they entail long-term commitments, which
makes errors challenging to correct; and (3) they have a big impact on
the cost and effectiveness of operations.

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COLLEGE OF BUSINESS, ADMINISTRATION, AND ACCOUNTANCY

Aldon M. Francia, MBA

Aldon M. Francia, MBA

1. explain the strategic importance of process selection and the

1. What degree of diversity must the procedure be able to handle?

The solutions to these questions will act as a guide in choosing

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