Summary of Operations Process Types

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Write 2 pages summarizing the 4 types of processes in operation: Job Shop, Batch, Repetitive, and Continuous.

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236 Chapter Six Process Selection and Facility Layout Inputs Outputs FIGURE 6.1 Process selection and capacity planning influence system design Forecasting Facilities and equipment Capacity Planning Product and service design Layout Process Selection Technological change Work design INTRODUCTION Process selection refers to deciding on the way production of goods or services will be orga- nized. It has major implications for capacity planning, layout of facilities, equipment, and design of work systems. Process selection occurs as a matter of course when new products or services are being planned. However, it also occurs periodically due to technological changes in products or equipment, as well as competitive pressures. Figure 6.1 provides an overview of where process selection and capacity planning fit into system design. Forecasts, product and service design, and technological considerations all influence capacity planning and pro- cess selection. Moreover, capacity and process selection are interrelated, and are often done in concert. They, in turn, affect facility and equipment choices, layout, and work design. How an organization approaches process selection is determined by the organization's pro- cess strategy. Key aspects include 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 process- ing requirements due to such factors as changes in product or service design, changes in volume processed and changes in technology. PROCESS SELECTION Process choice is demand driven. Three primary questions bear on process selection: 1. How much variety in products or services will the system need to handle? 2. What degree of equipment flexibility will be needed? 3. What is the expected volume of output? Answers to these questions will serve as a guide to selecting an appropriate process. Process pes There are five basic process types: job shop, batch, repetitive, continuous, and project. 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 is able to produce Chapter Six Process Selection and Facility Layout 237 A job shop process: A midwestern hospital medical team performs a diagnostic procedure involving a cardiac catheterization A batch process: Menu items are prepared in batches, in the kitchen of the Spago Restaurant in the Forum at Caesar's Palace, Las Vegas, Nevada A repetitive process: Motorcycles on an assembly line with parts added in a sequential order: A continuous process: An oil refinery performs a continuous process, mixing and separating crude oil into gas, fuel oil, chemicals, and many other products. one-of-a-kind tools. A service example is a veterinarian's office, which is able to process a variety of animals and a variety of injuries and diseases. Batch. 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 need to be as high as in a job shop because there is less variety in the jobs being processed. 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. Other examples of products that lend themselves to batch production are paint, ice cream, soft drinks, beer, magazines, and books. Other examples of services include plays, concerts, music videos, radio and television pro- grams, and public address announcements. 238 Chapter Six Process Selection and Facility Layout Repetitive. When higher volumes of more standardized goods or services are needed, repet- itive 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. In fact, this type of process is sometimes referred to as assembly. Familiar products made by these systems include automobiles, television sets, pencils, and computers. An example of a service system is an automatic carwash. Other examples of ser- vice include cafeteria lines and ticket collectors at sports events and concerts. Also, mass customization is an option. Continuous. When a very high volume of nondiscrete, 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 workers need. Gener- ally, if equipment is highly specialized worker skills can be lower. Examples of nondiscrete products made in continuous systems include petroleum products, steel, sugar, flour, and salt. Continuous services include air monitoring, supplying electricity to homes and busi- nesses, and the Internet. These process types are found in a wide range of manufacturing and service settings. The ideal is to have process capabilities match product or service requirements. Failure to do so can result in inefficiencies and higher costs than are necessary, perhaps creating a competitive disadvantage. Table 6.1 provides a brief description of each process type along with advan- tages and disadvantages of each. Figure 6.2 provides an overview of these four process types in the form of a matrix, with example for each process type. Note that job variety, process flexibility, and unit cost are highest for a job shop and get progressively lower moving from job shop to continuous pro- cessing. Conversely, volume of output is lowest for a job shop and gets progressively higher moving from job shop to continuous processing. Note, too, that the examples fall along the diagonal. The implication is that the diagonal represents the ideal choice of processing system for a given set of circumstances. For example, if the goal is to be able to process a small volume of jobs that will involve high variety, job shop processing is most appropriate. For less variety and a higher volume, a batch system would be most appropriate, and so on. Note that combinations far from the diagonal would not even be considered, such as using job shop for high-volume, low-variety jobs, or continuous processing for low-volume, an TABLE 6.1 Types of processing Job Shop Repetitive/ Assembly Batch Continuous Description Customized goods or services Standardized goods or services Highly standardized goods or services Advantages Able to handle a wide variety of work Semi standardized goods or services Flexibility, easy to add or change products or services Moderate cost per unit, moderate scheduling complexity Low unit cost, high volume, efficient Very efficient, very high volume Disadvantages Slow, high cost per unit, complex planning and scheduling Low flexibility, high cost of downtime Very rigid, lack of variety, costly to change, very high cost of downtime Chapter Six Process Selection and Facility Layout 239 Product or Service and Flexibility Variety and Equipment Flexibility High Moderate Low Very low FIGURE 6.2 Volume, variety, and flexibility of operations processes Low or very low volume Job Shop repair shop emergency room Moderate volume Batch commercial bakery classroom lecture High volume Repetitive assembly line automatic car wash| Very high volume Continuous Flow petroleum refining water treatment high-variety jobs, because that would result in either higher than necessary costs or lost opportun Another consideration is that products and services often go through life cycles that begin with low volume, which increases as products or services become better known. When that happens, a manager must know when to shift from one type of process (e.g., job shop) to the next(e.g., batch). Of course, some operations remain at a certain level (e.g., magazine pub- lishing), while others increase or decrease as markets become saturated) over time. Again, it is important for a manager to assess his or her products and services and make a judgment on whether to plan for changes in processing over time. All of these process types (job shop, batch, repetitive, and continuous) are typically ongo- ing operations. However, some situations are not ongoing but instead are of limited durations. In such instances, the work is often organized as a project. Project. A project is used for work that is nonroutine, with a unique set of objectives to be Project A nonrepetitive set accomplished in a limited time frame. Examples range from simple to complicated, including of activities directed toward a such things as putting on a play, consulting, making a motion picture, launching a new prod- unique goal within a limited time uct or service, publishing a book, building a dam, and building a bridge. Equipment flexibility frame. and worker skills can range from low to high. The type of process or processes used by an organization influences a great many activities of the organization. Table 6.2 briefly describes some of those influences. Process type also impacts supply chain requirements. Repetitive and continuous pro- cesses require steady inputs of high-volume goods and services. Delivery reliability terms of quality and timing is essential. Job shop and batch processing may mean that suppliers have to be able to deal with varying order quantities and timing of orders. In some instances seasonality is a factor, so suppliers must be able to handle periodic large demand. The processes discussed do not always exist in their “pure" forms. It is not unusual to find hybrid processesprocesses that have elements of other process types embedded in them. For instance, companies that operate primarily in a repetitive mode, or a con- tinuous mode, will often have repair shops (i.e., job shops) to fix or make new parts for equipment that fails. Also, if volume increases for some items, an operation that began, say, in a job shop or as a batch mode may evolve into a batch or repetitive operation. This may result in having some operations in a job shop or batch mode, and others in a repetitive mode. SUPPLY CHAIN 240 Chapter Six Process Selection and Facility Layout TABLE 6.2 Process choice affects numerous activities/functions Activity Function Job Shop Batch Repetitive Continuous Projects Routine Cost estimation Cost per unit Equipment used Fixed costs Variable costs Labor skills Marketing Difficult High General purpose Low High High Promote capabilities Somewhat routine Moderate General purpose Moderate Moderate Moderate Promote capabilities, semi- standardized goods and services Moderately complex Routine Low Special purpose High Low Low Promote standardized goods/services Low Special purpose Very high Very low Low to high Promote standardized goods/services Simple to complex Very high Varied Varied High Low to high Promote capabilities Scheduling Complex Routine Routine Complex, subject to change Varied High High Low Low Work-in-process inventory Morton Salt OPERATIONS TOUR Introduction The salt is stored in silos until it is needed for production, or it Morton Salt is a subsidiary of Morton International, a manufac- is shipped in bulk to industrial customers. Conveyors move the salt turer of specialty chemicals, air bags, and salt products. The Mor- to each of the four dedicated production areas, one of which is ton salt-processing facility in Silver Springs, New York, between round can production. (See diagram.) The discussion here focuses Buffalo and Rochester , is one of six similar Morton salt-processing exclusively on round can production. facilities in the United States. The Silver Springs plant employs about 200 people, ranging from unskilled to skilled. It produces salt Round Can Production products for water conditioning, grocery, industrial, and agricul- Annual round can production averages roughly 3.8 million cans. tural markets. The grocery business consists of 26-oz. round cans Approximately 70 percent of the output is for the Morton label, of iodized salt. Although the grocery business represents a rela- and the rest is for private label. There are two parallel, high- tively small portion of the total output (approximately 15 percent), speed production lines. The two lines share common processes it is the most profitable. at the beginning of the lines, and then branch out into two iden- tical lines. Each line is capable of producing 9,600 cans per hour Salt Production (160 cans per minute). The equipment is not flexible, so the pro- The basic raw material, salt, is obtained by injecting water into duction rate is fixed. The operations are completely standard- salt caverns that are located some 2,400 feet below surface. ized; the only variable is the brand label that applied. One line There, the salt deposits dissolve in the water. The resulting brine requires 12 production workers, while both lines together can is pumped to the surface where it is converted into salt crystals. be operated by 18 workers because of the common processes. The brine is boiled, and much of the liquid evaporates, leaving Workers on the line perform low-skilled, repetitive tasks. salt crystals and some residual moisture, which is removed in The plant produces both the salt and the cans the salt is pack- a drying process. This process is run continuously for about six aged in. The cans are essentially a cylinder with a top and a bot- weeks at a time. Initially, salt is produced at the rate of 45 tons tom; they are made of cardboard, except for a plastic pour spout per hour. But the rate of output decreases due to scale buildup, in the top. The cylinder portion is formed from two sheets of chip so that by the sixth week, output is only 75 percent of the initial board that are glued together and then rolled into a continuous rate. At that point, the process is halted to perform maintenance tube. The glue not only binds the material, it also provides a mois- on the equipment and remove the scale, after which, salt produc- ture barrier. The tube is cut in a two-step process: it is first cut tion resumes. (continued)
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Running Head: OPERATION PROCESS TYPES

Operation Process Types
Name
Institutional Affiliations
Date

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OPERATION PROCESS TYPES

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Operation Process Types

Manufacturing a product involves a series of processes and events that involve changing
an input to output. The term input may involve raw materials, labor, equipment’s and
information, on the other hand, inputs stand for the end product or service that will lead to
consumer satisfaction. The type of operation processes engaged depending on the project the
firm wishes to establish in the business. However, there must be integrated market research on
the demand, demographical aspects of the prospective buyers and the existing statute that govern
product in regard to cost minimization and profit maximization of the business project.
Job shops are the type of process that a ...


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