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The Process Flow Spectrum

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1 The Process Flow Spectrum
Spectrum Overview Intermittent Flow Operations Continuous Flow Repetitive Flow Selection Criteria Applied Management Science for Decision Making, 1e © Pearson Prentice-Hall, Inc Philip A. Vaccaro , PhD

2 The Process Spectrum Batch Flow Worker Paced Line Flow Machine Paced
RAW MATERIALS TO FINISHED GOODS PRE-MADE PARTS ASSEMBLED INTO FINISHED GOODS RAW MATERIALS TO FINISHED GOODS Intermittent Flow Operations ( Job Shop ) Batch Flow Worker Paced Line Flow Machine Paced Line Flow Continuous Flow Operations (Mass Production) ALL MANUFACTURING AND SERVICE OPERATIONS ARE ENCOMPASSED BY THE PROCESS SPECTRUM

3 Layout Definitions The placement of: machines The spatial or physical
offices and desks service centers inventories within factories, ware- houses, banks, offices, stores, hospitals, etc. The spatial or physical arrangement of: people equipment materials within an organization

4 Process Flow Structures Affect
Layout of the facility Human and material resources Technology decisions Work Methods Productivity Firm’s strategy for competitive advantage Costs

5 Intermittent Flow Operations
Called job shop in everyday parlance. Can only occur within process layouts. Their products move very slowly through the system due to material shortages, long set-up times, worker absenteeism, quality control problems, technical difficulties, and so on.

6 Process Layout Schematic
( INTERMITTENT FLOW OPERATIONS ) PRODUCT START PRODUCT FINISH Cutting Center Sanding Center Final Inspect Center EXIT WAIT LINE WAIT LINE Drilling Center Assembly Center Painting Center WAIT LINE WAIT LINE PRODUCT MOVES FROM CENTER TO CENTER , ENCOUNTERING STOP-AND-GO TRAFFIC FROM START TO FINISH

7 Characteristics PROCESS LAYOUT WORK FLOWS NOT STANDARDIZED
ONE OR MORE UNITS OF A PARTICULAR BATCH OF PRODUCT MAY NEED TO BE RE-ROUTED THROUGH THE JOB SHOP DUE TO A MACHINE BREAKDOWN, OR SENT BACK TO THE SAME WORK CENTER TWICE DUE TO QUALITY PROBLEMS OR BREAKAGE. LABOR – INTENSIVE OPERATIONS HAND-CRAFTED OR HUMAN-DIRECTED MACHINE OPERATIONS ON THE GOODS BEING PRODUCED. HETEROGENEOUS PRODUCT MIX A LARGE VARIETY OF DIVERSE PRODUCTS ARE CAPABLE OF BEING PRODUCED.

8 Characteristics PROCESS LAYOUT INTERRUPTED PRODUCT FLOW
PRODUCT FLOW IS BLOCKED OR DIVERTED BY MACHINE FAILURES, MATERIAL SHORTAGES, CRITICAL WORKER ABSENCES, QUALITY PROBLEMS, OR UNEXPECTED ADDITIONAL PROCESSING TIMES. LOW PRODUCTION VOLUME ONE, TWO, OR A FEW DOZEN UNITS OF THE SAME MAKE, MODEL, MATERIALS, SIZE, AND COLOR ARE PRODUCED AT ONE TIME. NO CLOSE MANAGEMENT SUPERVISION SHOP FOREMAN TELLS WORKERS WHAT TO DO BUT NOT HOW TO DO IT. S/HE SERVES AS A TECHNICAL RESOURCE ON CALL FOR WORKERS, KEEPS THEM SUPPLIED WITH MATERIALS, AND ACTS AS A LIAISON BETWEEN THE WORKERS AND THE CUSTOMERS.

9 Characteristics PROCESS LAYOUT GENERAL PURPOSE EQUIPMENT EXAMPLE
EQUIPMENT THAT CAN FABRICATE MANY DIFFERENT TYPES OF PRODUCTS BY MERELY CHANGING THE EQUIPMENT SETTINGS OR ATTACHMENTS. THE EQUIPMENT CAN BE EMPLOYED IN A WIDE VARIETY OF ENVIRONMENTS, WHICH IN TURN, MAKES IT RELATIVELY INEXPENSIVE TO PURCHASE. EXAMPLE A CARPENTRY JOB SHOP TABLE SAW CAN MAKE CUTS FOR BOOKCASES, CHAIRS, DESKS, CABINETS, AND TABLES VIA A BLADE CHANGE OR MINOR ADJUSTMENT.

10 Continuous Flow Operations
Called mass production in everyday parlance. Can only occur within product layouts. THEIR PRODUCTS MOVE QUICKLY FROM STATION TO STATION ON A SINGLE PRODUCTION LINE THAT SELDOM STOPS.

11 Product Layout Schematic
( CONTINUOUS FLOW OPERATIONS ) Work Stations 1 2 3 4 INPUTS LABOR MATERIALS LIQUIDS Work-in-Process Units Finished Units Assembly Line or Pipeline

12 Characteristics PRODUCT LAYOUT PRODUCT MADE-TO-STOCK
IT PRODUCES PRODUCTS THAT ARE DESTINED TO GO TO A WAREHOUSE FOR SUBSEQUENT DISTRIBUTION, OR A RETAILER FOR ROUTINE MERCHANDISE REPLENISHMENT. UNINTERRUPTED PRODUCT FLOW PRODUCTION IS HALTED ONLY BY SCHEDULED MAINTENANCE, ACCIDENTS, STRIKES, DELIVERY DELAYS, OR NATURAL DISASTER. MANY PRODUCTION PLANTS OPERATE 24 HOURS A DAY, 7 DAYS A WEEK.

13 Characteristics PRODUCT LAYOUT HOMOGENEOUS PRODUCT MIX
A SINGLE BASIC PRODUCT WITH MINOR VARIATIONS SUCH AS COLOR, OPTION PACKAGES, TRIM, SIZE, AND SO ON. CAPITAL – INTENSIVE OPERATIONS PRODUCTION THAT RELIES PRIMARILY ON MACHINES, ROBOTS, AND COMPUTERS, WITH NOMINAL OR NO HUMAN INTERVENTION.

14 Characteristics PRODUCT LAYOUT DEDICATED OR SPECIAL-PURPOSE EQUIPMENT
EQUIPMENT DESIGNED FOR ONE SPECIFIC TASK, AND FREQUENTLY, INDUSTRY-UNIQUE. IT IS EXPENSIVE BECAUSE IT IS PRODUCED IN SMALL LOTS AND USUALLY POSITIONED AT MANY POINTS ALONG THE ASSEMBLY LINE, EXAMPLE SPOT-WELD ROBOTS IN AN AUTOMOBILE PLANT ARE UNIQUE TO THAT INDUSTRY AND POSITIONED EVERY FEW HUNDRED FEET ALONG A ONE-MILE ASSEMBLY LINE. PRICES START AT OVER A HALF-MILLION DOLLARS!

15 Repetitive Flow Operations
encompass Intermittent Flow ( Job Shop ) Batch Flow Worker Paced Line Flow Machine Paced Line Flow Continuous Flow ( Mass Production ) A TRANSITION ZONE BETWEEN INTERMITTENT & CONTINUOUS FLOW OPERATIONS

16 Characteristics Assembly of pre-made parts from independent vendors
REPETITIVE FLOW OPERATIONS Assembly of pre-made parts from independent vendors or sister divisions Semi-skilled labor is utilized Limited product menu is produced ( 6 to 12 ) All products “made” on the same assembly line. ( at different times, of course ) Products share similar parts, technology, and processing steps Just-in-time systems are used to control the inventory.

17 PROCESS FLOWS Let’s take a closer look!

18 Process Structure Characteristics
Flow Flexibility Number of Products Capital Investment Variable Cost Labor Content Labor Skill Production Volume EACH OF THESE CHANGES AS WE MOVE ACROSS THE SPECTRUM

19 Process Structure Characteristics
Intermittent Flow Operations Continuous Flow Operations FLOW PRODUCT NUMBER FROM A LARGE NUMBER OF POSSIBLE SEQUENCES OF ACTIVITIES TO ONLY ONE POSSIBLE SEQUENCE FROM THE CAPABILITY OF PRODUCING MANY DIFFERENT PRODUCTS TO PRODUCING ONLY 1 PRODUCT VARIABLE COST VOLUME FROM A QUANTITY OF ONE TO LARGE-SCALE MASS PRODUCTION FROM A HIGH UNIT COST TO A LOW UNIT COST

20 Process Structure Characteristics
Intermittent Flow Operations Continuous Flow Operations LABOR SKILL / CONTENT FLEXIBILITY PROCESS PERFORMANCE AND COST ARE INDEPENDENT OF CHANGES IN OUTPUT FROM HIGH SKILL AND CONTENT TO LOW SKILL AND CONTENT CAPITAL INVESTMENT FROM USING LOW COST GENERAL PURPOSE EQUIPMENT TO HIGH COST DEDICATED EQUIPMENT

21 Project Architecture FLOW – no flow FLEXIBILITY – very high
PRODUCTS – unique CAPITAL INVESTMENT – very low VARIABLE COST – very high LABOR CONTENT & SKILL – very high VOLUME – one unit

22 Project Architecture Resources are brought to the project site
Comments Resources are brought to the project site as needed. Technically, a project is not a process flow structure, since there is no flow of product. However, it is useful to think of a project as one extreme of the process continuum.

23 Project Architecture Relatively low fixed costs.
Financial Implications Relatively low fixed costs. Relatively high direct labor costs. Relatively high direct materials costs. Low materials handling costs.

24 Job Shop Architecture FLOW – jumbled flow FLEXIBILITY – high
PRODUCTS – many CAPITAL INVESTMENT – low VARIABLE COST – high LABOR CONTENT & SKILL – high VOLUME – low

25 Jumbled Flow Center 1 Center 2 Center 4 Center 3 Center 6 Center 5
( NO DOMINANT FLOWS THROUGH THE SYSTEM ) Center 1 Center 2 Center 4 Center 3 Center 6 Center 5 Product A Product B Product C Product D

26 Job Shop Architecture Relatively low fixed costs.
Financial Implications Relatively low fixed costs. Relatively high direct labor costs. Relatively high direct materials costs. High material handling costs.

27 Batch Process Architecture
FLOW – disconnected, with some dominant flows FLEXIBILITY – moderate PRODUCTS – several CAPITAL INVESTMENT – moderate VARIABLE COST – moderate LABOR CONTENT & SKILL – moderate VOLUME – moderate

28 Jumbled Flow ( WITH SOME DOMINANT FLOWS ) Center 1 Center 2 Center 4
3 Center 6 Center 5 Product A Product B Product C Product D

29 Jumbled Flow ( WITH SOME DOMINANT FLOWS ) Center 1 Center 2 Center 4
Potential Islands Of Automation ( WITH SOME DOMINANT FLOWS ) Center 1 Center 2 Center 4 Center 3 Center 6 Center 5 Product A Product B Product C Product D

30 One flow only but the work centers are separated from one another
Disconnected Flow One flow only but the work centers are separated from one another in TIME and SPACE Center 1 1,000 ft Center 2 800 ft Center 3 1st Floor or Building No. 1 2 miles 2nd Floor or Center 4 Center 5 Center 6 Building No. 2 600 ft 900 ft

31 Batch Process Architecture
Comments Products are produced in “batches” ( several dozen units at a time ) . More frequently produced products begin to create dominant flows between certain work centers. The sequence of operations subsequently tends to form one or more “production lines”. The sequence(s) of operations, while “in-line”, is/are still disconnected.

32 Assembly Line Architecture
WORKER + MACHINE PACED FLOW – connected line FLEXIBILITY – low PRODUCTS – a few CAPITAL INVESTMENT – high VARIABLE COST – low LABOR CONTENT & SKILL – low VOLUME – high

33 Connected Flow ( All work centers equidistant from one another and synchronized ) 3 Minute Time Interval Between Centers Center 1 Center 2 Center 3 Center 4 Center 5 Center 6 20 Feet of Distance Between Centers

34 Assembly Line Architecture
Comments Like a “batch” process, it processes work in a fixed sequence. However, it connects and paces the work via a moving production line. There is now only one production line!

35 Continuous Flow Architecture
LABOR CONTENT AND SKILL – very low, but with skilled overseers VOLUME – very high FLOW – continuous FLEXIBILITY – very low PRODUCTS – one CAPITAL INVESTMENT – very high VARIABLE COST - very low

36 Continuous Flow Work Station 1 Work Station 2 Work Station 3 Work
Very little or no time interval between work stations Very little or no physical separation between work stations Work Station 1 Work Station 2 Work Station 3 Work Station 4 Processing Steps - heating - cooling - drying - mixing Resource inputs - liquids - materials Work-in-Process Finished Product VERY HIGH SPEED PRODUCTION RATE ( process or actual pipeline )

37 Continuous Flow Architecture
Comments Has a fixed pace and sequence of operations. A single product is processed in a continuous flow, rather than in discrete steps. Production output is measured in weight or volume.

38 Continuous Flow Architecture
Financial Implications Relatively high fixed costs. Relatively low direct labor costs. Relatively low direct materials costs.

39 The Process Flow Spectrum
Project Job Shop Batch Process Assembly Line Continuous Flow None Jumbled Disconnected & Dominant Connected Flexibility Very High High Moderate Low Very Low Number of Products Unique Many Several Few One Capital Investment Variable Cost Labor Content Labor Skill Volume One Unit

40 Process Selection Criteria
The firm’s business strategy + marketing plans A tradeoff between fixed + variable cost The amount of capital that the firm is able or willing to invest Product variety Product volume Local economics Stage in product life cycle

41 Marketing Implications
PROCESS CONTINUUM A job shop allows a firm to sell its capabilities A continuous process flow allows a firm to emphasize the product itself A job shop helps a firm follow a differentiation strategy A continuous process flow helps a firm follow a low-cost strategy

42 Economic Implications
PROCESS CONTINUUM Labor Energy Equipment Transportation A BREAK-EVEN ANALYSIS MAY BE PERFORMED TO ASSIST IN THE PROCESS SELECTION A BREAK-EVEN CHART RELATES COST TO LEVELS OF FORECASTED DEMAND

43 Product Life Cycle Implications
PROCESS CONTINUUM BIRTH A JOB SHOP MAY BE THE MOST APPROPRIATE IN ORDER TO FILL EARLY DEMAND AND ADJUST TO DESIGN CHANGES MATURITY HIGH PRODUCTION VOLUMES MAY JUSTIFY AN ASSEMBLY LINE DECLINE A BATCH PROCESS MAY BE MORE APPROPRIATE AS PRODUCT VOLUME FALLS AND A VARIETY OF SPARE PARTS IS REQUIRED

44 Traditional Process Layout
PRODUCTS CONTINUALLY TRAVEL BETWEEN WORK CENTERS Lathe Center Drilling Center Cutting Center Inspection Center

45 Work Cell Layout GROUP TECHNOLOGY
- All jobs take the same route through the shop - Machine setups for all jobs are accomplished by merely changing the software menu - Interchangeable product parts or parts that merely have to be reduced or increased in size, also make the work cell layout possible

46 Work Cell Layout REQUIREMENTS Quick set-up times between jobs
Reprogrammable robots and other equipment Production of products sharing similar process requirements, parts, materials, shapes, and handling requirements

47 Work Cell Layout Management
STORM DOOR & WINDOW FACTORY Major Setup Time Between Window & Door Runs Shop makes windows of all sizes, metals, wood, vinyl, glass, and colors with the minimum setup times between each order Shop makes storm doors of all sizes, metals, wood, vinyl, glass, and colors with the minimum setup times between each order

48 Work Cell Layout Management
Setup Time and Setup Cost Setup time is the time to prepare a machine or process for manufacturing an order. It includes time and labor to clean or change tools, molds, or settings. Setup cost is highly correlated with setup time, and also includes the cost of lost productivity, scrappage, and rework.

49 Work Cell Layout Management
MAJOR SETUP (CHANGE BETWEEN PRODUCT GROUPS) WINDOWS DOORS O R D E R 1 O R D E R 2 O R D E R 3 O R D E 1 O R D E 2 O R D E 3

50 Work Cell Layout Management
MINOR SETUP (CHANGE WITHIN A PRODUCT GROUP) WINDOWS WINDOWS O R D E 2 O R D E 1

51 The Process Spectrum Batch Flow Worker Paced Line Flow Machine Paced
RAW MATERIALS TO FINISHED GOODS PRE-MADE PARTS ASSEMBLED INTO FINISHED GOODS RAW MATERIALS TO FINISHED GOODS Intermittent Flow Operations ( Job Shop ) Batch Flow Worker Paced Line Flow Machine Paced Line Flow Continuous Flow Operations (Mass Production) ALL MANUFACTURING AND SERVICE OPERATIONS ARE ENCOMPASSED BY THE PROCESS SPECTRUM

52 The Process Flow Spectrum
Project Job Shop Batch Process Assembly Line Continuous Flow None Jumbled Disconnected & Dominant Connected Flexibility Very High High Moderate Low Very Low Number of Products Unique Many Several Few One Capital Investment Variable Cost Labor Content Labor Skill Volume One Unit

53 Intermittent Flow Operations
MANUFACTURING Job Shop Batch Flow ORIGINAL ART WORK TOOL & DIE SHOP CUSTOM JEWELRY HEIRLOOM FURNITURE YACHT SUPER COMPUTER DENTAL CROWNS CUSTOM POOL LIMITED EDITION ART HEAVY MACHINERY FINE JEWELRY FINE FURNITURE ROBOTICS SUITS AMBULANCES TEXTBOOKS

54 Repetitive Flow Operations
MANUFACTURING Worker-Paced Line Flow Machine-Paced Line Flow CAMERA ASSEMBLY COMPUTER ASSEMBLY AUTOMOBILE ENGINE ASSEMBLY STANDARD OFFICE FURNITURE COMMON HAND TOOLS APPLIANCE ASSEMBLY TOY ASSEMBLY AUTOMOBILE ASSEMBLY NEWSPAPER PUBLISHING BOTTLING PLANT UTENSILS

55 Continuous Flow Operations
MANUFACTURING OIL REFINERY CHEMICAL REFINERY PAPER MILL CONCRETE PRODUCTION LIGHT BULB PRODUCTION GLASS PRODUCTION NUT & BOLT PRODUCTION STEEL MILL ELECTRICITY GENERATION

56 Intermittent Flow Operations
SERVICE SECTOR Job Shop Batch Flow TUTORING PHYSICIAN’S OFFICE LIMOUSINE SERVICE CHARTER FLIGHTS LAW FIRM PRIVATE DINING FACILITY INDIVIDUAL SELLING SMALL CLASSES GENERAL HOSPITAL TAXI SERVICE LOCAL AIRLINE LAW CLINIC FINE DINING RESTAURANT BOUTIQUE

57 Repetitive Flow Operations
SERVICE SECTOR Worker-Paced Line Flow Machine-Paced Line Flow LECTURE HALL TEACHING HERNIA SURGERY CLINIC BUS SERVICE SUPERMARKET FAST FOOD RESTAURANT SCHEDULED AIR LINE DISTANCE LEARNING CARWASH CINEMA MULTIPLEX LAUNDROMAT TANNING SALON AMUSEMENT RIDES

58 Continuous Flow Operations
SERVICE SECTOR Continuous Line Flow RADIO - TELEVISION UTILITIES ON-LINE SHOPPING POLICE PROTECTION FIRE PROTECTION NATIONAL DEFENSE TELEPHONE SERVICE EMERGENCY MEDICAL RESPONSE CHECK CLEARING HOUSE AUTOMATED FLAT- MAIL POSTAL FACILITY

59 Classifying Service System Processes
WE FOCUS ON….. How much skill and knowledge the worker must bring to the service. 2. The size of the potential customer service group. 3. The level of customer convenience.

60 The Process Spectrum THE END
Applied Management Science for Decision Making, 1e © 2012 Pearson Prentice-Hall, Inc Philip A. Vaccaro , PhD


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