2 The Process Spectrum Batch Flow Worker Paced Line Flow Machine Paced RAW MATERIALSTO FINISHED GOODSPRE-MADE PARTS ASSEMBLED INTO FINISHED GOODSRAW MATERIALS TO FINISHED GOODSIntermittentFlowOperations( Job Shop )BatchFlowWorkerPacedLineFlowMachinePacedLine FlowContinuousFlowOperations(Mass Production)ALL MANUFACTURING AND SERVICE OPERATIONS AREENCOMPASSED BY THE PROCESS SPECTRUM
3 Layout Definitions The placement of: machines The spatial or physical offices and desksservice centersinventorieswithin factories, ware-houses, banks, offices,stores, hospitals, etc.The spatial or physicalarrangement of:peopleequipmentmaterialswithin an organization
4 Process Flow Structures Affect Layout of the facilityHuman and material resourcesTechnology decisionsWork MethodsProductivityFirm’s strategy for competitive advantageCosts
5 Intermittent Flow Operations Called job shop ineveryday parlance.Can only occur withinprocess layouts.Their products move very slowlythrough the system due to materialshortages, long set-up times, workerabsenteeism, quality controlproblems, technical difficulties,and so on.
6 Process Layout Schematic ( INTERMITTENT FLOW OPERATIONS )PRODUCT STARTPRODUCT FINISHCuttingCenterSandingCenterFinalInspectCenterEXITWAIT LINEWAIT LINEDrillingCenterAssemblyCenterPaintingCenterWAIT LINEWAIT LINEPRODUCT 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 BERE-ROUTED THROUGH THE JOB SHOP DUE TO A MACHINE BREAKDOWN, OR SENTBACK TO THE SAME WORK CENTER TWICE DUE TO QUALITY PROBLEMS ORBREAKAGE.LABOR – INTENSIVE OPERATIONSHAND-CRAFTED OR HUMAN-DIRECTED MACHINE OPERATIONS ON THE GOODSBEING PRODUCED.HETEROGENEOUS PRODUCT MIXA 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, QUALITYPROBLEMS, OR UNEXPECTED ADDITIONAL PROCESSING TIMES.LOW PRODUCTION VOLUMEONE, TWO, OR A FEW DOZEN UNITS OF THE SAME MAKE, MODEL,MATERIALS, SIZE, AND COLOR ARE PRODUCED AT ONE TIME.NO CLOSE MANAGEMENT SUPERVISIONSHOP FOREMAN TELLS WORKERS WHAT TO DO BUT NOT HOW TO DO IT.S/HE SERVES AS A TECHNICAL RESOURCE ON CALL FOR WORKERS, KEEPSTHEM SUPPLIED WITH MATERIALS, AND ACTS AS A LIAISON BETWEEN THEWORKERS AND THE CUSTOMERS.
9 Characteristics PROCESS LAYOUT GENERAL PURPOSE EQUIPMENT EXAMPLE EQUIPMENT THAT CAN FABRICATE MANY DIFFERENT TYPES OF PRODUCTSBY 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.EXAMPLEA CARPENTRY JOB SHOP TABLE SAW CAN MAKE CUTS FOR BOOKCASES,CHAIRS, DESKS, CABINETS, AND TABLES VIA A BLADE CHANGE OR MINORADJUSTMENT.
10 Continuous Flow Operations Called mass production in everyday parlance.Can only occur withinproduct layouts.THEIR PRODUCTS MOVE QUICKLYFROM STATION TO STATION ON ASINGLE PRODUCTION LINE THATSELDOM STOPS.
11 Product Layout Schematic ( CONTINUOUS FLOW OPERATIONS )Work Stations1234INPUTSLABORMATERIALSLIQUIDSWork-in-Process UnitsFinished UnitsAssembly Line or Pipeline
12 Characteristics PRODUCT LAYOUT PRODUCT MADE-TO-STOCK IT PRODUCES PRODUCTS THAT ARE DESTINED TO GO TO A WAREHOUSEFOR SUBSEQUENT DISTRIBUTION, OR A RETAILER FOR ROUTINE MERCHANDISEREPLENISHMENT.UNINTERRUPTED PRODUCT FLOWPRODUCTION IS HALTED ONLY BY SCHEDULED MAINTENANCE, ACCIDENTS,STRIKES, DELIVERY DELAYS, OR NATURAL DISASTER. MANY PRODUCTIONPLANTS 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 OPERATIONSPRODUCTION THAT RELIES PRIMARILY ON MACHINES, ROBOTS, ANDCOMPUTERS, 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 INSMALL LOTS AND USUALLY POSITIONED AT MANY POINTS ALONGTHE ASSEMBLY LINE,EXAMPLESPOT-WELD ROBOTS IN AN AUTOMOBILE PLANT ARE UNIQUE TOTHAT INDUSTRY AND POSITIONED EVERY FEW HUNDRED FEETALONG A ONE-MILE ASSEMBLY LINE. PRICES START AT OVER AHALF-MILLION DOLLARS!
15 Repetitive Flow Operations encompassIntermittentFlow( Job Shop )BatchFlowWorkerPacedLineFlowMachinePacedLine FlowContinuousFlow( Mass Production )A TRANSITION ZONE BETWEEN INTERMITTENT & CONTINUOUS FLOW OPERATIONS
16 Characteristics Assembly of pre-made parts from independent vendors REPETITIVE FLOW OPERATIONSAssembly of pre-made partsfrom independent vendorsor sister divisionsSemi-skilled labor is utilizedLimited product menu isproduced ( 6 to 12 )All products “made” on thesame assembly line.( at different times, of course )Products share similar parts,technology, and processingstepsJust-in-time systems are usedto control the inventory.
18 Process Structure Characteristics FlowFlexibilityNumber of ProductsCapital InvestmentVariable CostLabor ContentLabor SkillProductionVolumeEACH OF THESE CHANGES AS WE MOVE ACROSS THE SPECTRUM
19 Process Structure Characteristics IntermittentFlowOperationsContinuousFlowOperationsFLOWPRODUCT NUMBERFROM A LARGE NUMBER OFPOSSIBLE SEQUENCES OFACTIVITIES TO ONLY ONEPOSSIBLE SEQUENCEFROM THE CAPABILITY OFPRODUCING MANYDIFFERENT PRODUCTS TOPRODUCING ONLY 1 PRODUCTVARIABLE COSTVOLUMEFROM A QUANTITY OF ONETO LARGE-SCALE MASSPRODUCTIONFROM A HIGH UNIT COSTTO A LOW UNIT COST
20 Process Structure Characteristics IntermittentFlowOperationsContinuousFlowOperationsLABOR SKILL / CONTENTFLEXIBILITYPROCESS PERFORMANCE AND COST ARE INDEPENDENT OF CHANGES IN OUTPUTFROM HIGH SKILL AND CONTENT TO LOW SKILL AND CONTENTCAPITAL INVESTMENTFROM USING LOW COSTGENERAL PURPOSEEQUIPMENT TO HIGH COST DEDICATED EQUIPMENT
21 Project Architecture FLOW – no flow FLEXIBILITY – very high PRODUCTS – uniqueCAPITAL INVESTMENT – very lowVARIABLE COST – very highLABOR CONTENT & SKILL – very highVOLUME – one unit
22 Project Architecture Resources are brought to the project site CommentsResources are brought to the project siteas needed.Technically, a project is not a process flowstructure, since there is no flow of product.However, it is useful to think of a project asone extreme of the process continuum.
23 Project Architecture Relatively low fixed costs. FinancialImplicationsRelatively low fixed costs.Relatively high direct labor costs.Relatively high direct materials costs.Low materials handling costs.
25 Jumbled Flow Center 1 Center 2 Center 4 Center 3 Center 6 Center 5 ( NO DOMINANT FLOWS THROUGH THE SYSTEM )Center1Center2Center4Center3Center6Center5Product AProduct BProduct CProduct D
26 Job Shop Architecture Relatively low fixed costs. FinancialImplicationsRelatively 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 flowsFLEXIBILITY – moderatePRODUCTS – severalCAPITALINVESTMENT – moderateVARIABLE COST – moderateLABOR CONTENT& SKILL – moderateVOLUME – moderate
28 Jumbled Flow ( WITH SOME DOMINANT FLOWS ) Center 1 Center 2 Center 4 3Center6Center5Product AProduct BProduct CProduct D
29 Jumbled Flow ( WITH SOME DOMINANT FLOWS ) Center 1 Center 2 Center 4 PotentialIslandsOfAutomation( WITH SOME DOMINANT FLOWS )Center1Center2Center4Center3Center6Center5Product AProduct BProduct CProduct D
30 One flow only but the work centers are separated from one another Disconnected FlowOne flow only but the work centers are separated from one anotherin TIME and SPACECenter11,000 ftCenter2800 ftCenter31st FloororBuilding No. 12 miles2nd FloororCenter4Center5Center6Building No. 2600 ft900 ft
31 Batch Process Architecture CommentsProducts are produced in “batches”( several dozen units at a time ) .More frequently produced productsbegin to create dominant flows betweencertain work centers.The sequence of operations subsequentlytends to form one or more “productionlines”.The sequence(s) of operations, while“in-line”, is/are still disconnected.
32 Assembly Line Architecture WORKER + MACHINE PACEDFLOW – connected lineFLEXIBILITY – lowPRODUCTS – a fewCAPITAL INVESTMENT – highVARIABLE COST – lowLABOR CONTENT & SKILL – lowVOLUME – high
33 Connected Flow( All work centers equidistant from one another and synchronized )3 Minute Time Interval Between CentersCenter1Center2Center3Center4Center5Center620 Feet of Distance Between Centers
34 Assembly Line Architecture CommentsLike a “batch” process, it processeswork in a fixed sequence.However, it connects and paces thework 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 overseersVOLUME – very highFLOW – continuousFLEXIBILITY – very lowPRODUCTS – oneCAPITAL INVESTMENT – very highVARIABLE COST - very low
36 Continuous Flow Work Station 1 Work Station 2 Work Station 3 Work Very little or no time interval between work stationsVery little or no physical separation between work stationsWorkStation1WorkStation2WorkStation3WorkStation4Processing Steps- heating- cooling- drying- mixingResource inputs- liquids- materialsWork-in-ProcessFinished ProductVERY HIGH SPEED PRODUCTION RATE( process or actual pipeline )
37 Continuous Flow Architecture CommentsHas a fixed pace and sequence ofoperations.A single product is processed in acontinuous flow, rather than indiscrete steps.Production output is measured inweight or volume.
38 Continuous Flow Architecture FinancialImplicationsRelatively high fixed costs.Relatively low direct labor costs.Relatively low direct materialscosts.
39 The Process Flow Spectrum ProjectJobShopBatchProcessAssemblyLineContinuousFlowNoneJumbledDisconnected& DominantConnectedFlexibilityVery HighHighModerateLowVery LowNumber of ProductsUniqueManySeveralFewOneCapital InvestmentVariable CostLabor ContentLabor SkillVolumeOne Unit
40 Process Selection Criteria The firm’s businessstrategy + marketingplansA tradeoff betweenfixed + variable costThe amount of capitalthat the firm is ableor willing to investProduct varietyProduct volumeLocal economicsStage in productlife cycle
41 Marketing Implications PROCESS CONTINUUMA job shop allows a firmto sell its capabilitiesA continuous processflow allows a firm toemphasize the product itselfA job shop helps a firmfollow a differentiationstrategyA continuous process flow helps a firm followa low-cost strategy
42 Economic Implications PROCESS CONTINUUMLaborEnergyEquipmentTransportationA BREAK-EVEN ANALYSIS MAY BEPERFORMED TO ASSIST IN THEPROCESS SELECTIONA BREAK-EVEN CHART RELATESCOST TO LEVELS OF FORECASTEDDEMAND
43 Product Life Cycle Implications PROCESS CONTINUUMBIRTHA JOB SHOP MAYBE THE MOSTAPPROPRIATEIN ORDER TOFILL EARLYDEMAND ANDADJUST TODESIGN CHANGESMATURITYHIGH PRODUCTIONVOLUMES MAYJUSTIFY ANASSEMBLY LINEDECLINEA BATCH PROCESSMAY BE MOREAPPROPRIATE ASPRODUCT VOLUMEFALLS AND AVARIETY OF SPAREPARTS IS REQUIRED
44 Traditional Process Layout PRODUCTS CONTINUALLY TRAVEL BETWEEN WORK CENTERSLathe CenterDrilling CenterCutting CenterInspection 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 thesoftware menu- Interchangeable product parts or parts that merely have to be reducedor 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 equipmentProduction of products sharing similar process requirements, parts, materials, shapes,and handlingrequirements
47 Work Cell Layout Management STORM DOOR & WINDOW FACTORYMajorSetup TimeBetweenWindow&DoorRunsShop makes windows ofall sizes, metals, wood, vinyl,glass, and colors with theminimum setup times betweeneach orderShop makes storm doors ofall sizes, metals, wood, vinyl,glass, and colors with theminimum setup times betweeneach order
48 Work Cell Layout Management Setup Time and Setup CostSetup time is the time to prepare a machineor process for manufacturing an order.It includes time and labor to clean orchange tools, molds, or settings.Setup cost is highly correlated with setuptime, and also includes the cost of lostproductivity, scrappage, and rework.
49 Work Cell Layout Management MAJOR SETUP(CHANGE BETWEEN PRODUCT GROUPS)WINDOWSDOORSORDER 1ORDER 2ORDER 3ORDE1ORDE2ORDE3
50 Work Cell Layout Management MINOR SETUP(CHANGE WITHIN A PRODUCT GROUP)WINDOWSWINDOWSORDE2ORDE1
51 The Process Spectrum Batch Flow Worker Paced Line Flow Machine Paced RAW MATERIALSTO FINISHED GOODSPRE-MADE PARTS ASSEMBLED INTO FINISHED GOODSRAW MATERIALS TO FINISHED GOODSIntermittentFlowOperations( Job Shop )BatchFlowWorkerPacedLineFlowMachinePacedLine FlowContinuousFlowOperations(Mass Production)ALL MANUFACTURING AND SERVICE OPERATIONS AREENCOMPASSED BY THE PROCESS SPECTRUM
52 The Process Flow Spectrum ProjectJobShopBatchProcessAssemblyLineContinuousFlowNoneJumbledDisconnected& DominantConnectedFlexibilityVery HighHighModerateLowVery LowNumber of ProductsUniqueManySeveralFewOneCapital InvestmentVariable CostLabor ContentLabor SkillVolumeOne Unit
59 Classifying Service System Processes WE FOCUS ON…..How much skill and knowledge the worker mustbring to the service.2. The size of the potential customer service group.3. The level of customer convenience.