Product Process Matrix

(Process Selection)

Dr. T. T. Kachwala
 Slide 2

Process Selection Overview

1. Introduction to Process Selection

2. Process Types:
a) Job Shop

b) Batch Shop

c) Repetitive Process

d) Continuous Process

3. Product – Process Matrix

4. Characteristics of Process Types
5. Process Types: Project Shop
 Slide 3

Introduction to Process Selection

1. Process convert inputs into outputs; they are at the core of Operations Management.

Facility layout is the arrangement of workplace & is closely related to Process

Selection.

2. Process selection refers to deciding on the way production of goods will be

organized. It occurs when new products are planned or technological changes in

existing products occur.

 Slide 4

Introduction to Process Selection

Key aspects of Process Strategy includes:

1. Capital intensive – The mix of equipment and labour that will be used

by the Organization

2. Process flexibility – The degree to which the system can be adjusted

to changes in processing requirements due to such factors as

changes in Product Design, changes in Volume processed, and

changes in Technology
 Slide 5

Introduction to Process Selection

Three primary questions that influence process

selection:

1. How much Variety in products will the

system need to handle?

2. What degree of Flexibility will be needed?

3. What is the Expected Volume of output?

 Slide 6

Product – Process Matrix

Product–Process Matrix is a pictorial representation

of the four process types (job shop, batch,
repetitive, continuous) based on two variables -
Volume & Variety.

The diagonal of the Matrix represents the ideal

choice of processing system for a given set of
circumstances.
 Slide 7

Learning’s from Video (Product Process Mix)

1. Goods range from standardized commodities such as gasoline and motor oil for car to
items which are made to order like eye glasses
2. Process selection is based on two considerations; variety or how much the product
changes from customer to customer and the volume of demand. A third consideration,
the flexibility of equipment used to create the product is determined by the product
being created and is often determined by the first two
3. Gasoline manufacturer BEP refines Crude oil into premium fuels in different refineries
across the globe; there is a constant need for its product so production is continuous.
4. Honda of America uses a repetitive process in the operating plant in Ohio. At this plant
Honda produces a large number of only a few models of their popular cars.
5. In Illinois Caterpillar plant produces 24 different models of wheel loaders (four families
of construction & agriculture equipments), all in the same facility but on relatively low
volumes
6. When a highly specialized product is needed in a very low volume based on an
individual customer order, the process which matches the product is often referred to
as a job shop, At AED vision, eye glass are made using such a job shop process.
7. The Product Process Matrix illustrates the general rule of manufacturing four
production processes. Finding and using the appropriate processes is necessary to
ensure quality and keep cost low enough to match the market demand and volume.
 Product – Process Matrix (Manufacturing)

Process Job Shop Batch Repetitive Continuous

Type
Job Shop Eye Glass
AED
High
Vision
Batch Construction
Equipments
Variety Caterpillar
Repetitive Automotive
assembly
Honda

Continuous Oil refinery

(flow) BEP
Low USA

Low Volume High

 Product – Process Matrix (Service)

Process Job Shop Batch Repetitive Continuous

Type
Job Shop Hospital
High Emergency
Room
Batch TV program
Class Room
Lecture
Variety
Repetitive Automatic
Car Wash
Tkt Collector
Continuous Electricity
(flow) Internet
Low

Low Volume High

 Slide 10

Introduction to Process Selection

There are five basic process types: job shop, batch,

repetitive, continuous & project. The first four relate to work
that is routine and are found in a wide range of
manufacturing & service settings.

The ideal process selection is to have process capabilities

match product or service requirements. Failure to do so can
result in inefficiencies and higher cost, creating a
competitive disadvantage.
 Slide 11

Process Types: Job Shop

1. It usually operates on a relatively small scale.

2. It is used when a low volume of high variety goods or services are
needed.
3. Processing is intermittent; work includes small jobs, each with
somewhat different processing requirements.
4. High Flexibility using general purpose equipment, skilled labor &
intermittent processing are important characteristics of a job shop.
5. A manufacturing example of a job shop is a tool and dies shop that
is able to produce one-of-a-kind tools.
6. A service example is a veterinarian’s office, which is able to
process a variety of animals and a variety of injuries and diseases.
 Slide 12

Process Types: Batch Processing

1. It is used for moderate volume of goods & where moderate variety is desired.
2. The equipment need not be as flexible as in a job shop, but processing is still
intermittent.
3. 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.
4. Examples of batch systems for products include bakeries, which make bread,
cakes, or cookies in batches, paint, ice cream, soft drinks, magazines, and
books.
5. Examples of services include movie theaters, which show movies to groups
(batches) of people, airlines which carry planeloads (batches) of people from
airport to airport, plays, concerts, music videos, radio and television
programs, and public address announcements.
 Process Types: Repetitive

1. It is used for higher volumes of more standardized goods or services.

2. The standardized output means only slight flexibility of equipment is needed. Skill of workers is generally

low.

3. Examples of product system include production lines and assembly lines.

4. This type of system is sometimes referred to as Assembly.

5. Familiar products made by these systems include automobiles, television sets, pencils, and computers.

6. An example of a service system is an automatic carwash, cafeteria lines and ticket collectors at sports

event and concerts.

 Process Types: Continuous Process

1. It is used for a very high volume of highly standardized output.

2. These systems have almost no variety in output and, hence, no need for equipment flexibility.

3. Workers’ skill requirements can range from low to high, depending on the complexity of the system

(Generally if equipment is highly specialized, workers skill can be lower).

4. Examples of products made in continuous systems include petroleum products, steel, sugar, flour, and

salt.

5. Examples of Continuous services include air monitoring, supplying electricity to homes and businesses,

and the Internet.

 Comparison of Process Types

The Four process types can be compared on four key dimensions: job variety,
process flexibility, unit cost, and output volume.

Job variety, process flexibility, and unit cost are highest for job shop and gets
progressively lower moving from job shop to continuous processing.
Conversely, volume of output is lowest for Job shop and gets
progressively higher moving from job shop to continuous processing.

All efficient process types fall on the diagonal of the Product-Process Matrix.
Comparison of Process Types
The following table summarizes the comparison of the four process types on
the four key dimensions: job variety, process flexibility, unit cost, and
output volume Variety is directly related to Flexibility & Unit Cost &
inversely related to Volume).

Dimension Job Shop Batch Repetitive Continuous

Job variety Very High Moderate Low Very low

Process
Very High Moderate Low Very low
flexibility

Unit cost Very High Moderate Low Very low

Volume of
Very Low Low High Very high
output
 Hybrid Process Types

The four processes discussed do not always exist in their “pure”

forms. It is not unusual to find hybrid processes – processes that
have elements of other process types embedded in them.

In a typical manufacturing factory some operations are in Job shop

(repair shop or tool room) or batch shop (press shop or
injection molding shop) & others are in repetitive mode
(assembly lines)
 Process Types: Project Shop

1. Job, Batch, Repetitive & Continuous are ongoing Operations. A Project is not ongoing &

instead it is of limited duration.

2. It is non routine with a unique set of objectives to be accomplished in a limited time frame

3. Equipment flexibility & workers skill range from low to high

4. Examples range from simple to complicated like launching a new product, publishing a

book, building a dam or bridge, shipbuilding

 Technology

Technology refers to application of scientific knowledge to the development & improvement of goods & services and the processes

that produce or provide them.

Process technology includes methods, procedures & equipment used to produce goods & provide services.

Information technology is the science & the use of computers & other electronic equipment to store, process & send information.

Automation refers to machinery that has sensing and control devices that enable it to operate automatically. There are three kinds of

Automation: Fixed, programmable and flexible. Some popular examples & applications of Programmable & Flexible Automation:

1. CAM

2. FMS

3. CIM