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The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

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Presentation on theme: "The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson."— Presentation transcript:

1 The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson Prentice-Hall, Inc. Philip A. Vaccaro, PhD Applied Management Science for Decision Making, 1e © 2012 Pearson Prentice-Hall, Inc. Philip A. Vaccaro, PhD

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

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

4 Process Flow Structures Affect Layout of the facility Human and material resources Technology decisions Work Methods Productivity Firms 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 ) Cutting Center Sanding Center Drilling Center Assembly Center Painting Center Final Inspect Center PRODUCT START PRODUCT FINISH WAIT LINE EXIT 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 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 1324 Work Stations Assembly Line or Pipeline Work-in-Process Units Finished Units INPUTS FLOW OPERATIONS ) ( CONTINUOUS FLOW OPERATIONS ) LABOR MATERIALS LIQUIDS

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

16 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. Assembly of pre-made parts from independent vendors or sister divisions Semi-skilled labor is utilized Limited product menu is produced ( 6 to 12 )Characteristics REPETITIVE FLOW OPERATIONS

17 PROCESS FLOWS Lets 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 FLOW PRODUCT NUMBER VARIABLE COST VOLUME 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 FROM A HIGH UNIT COST TO A LOW UNIT COST FROM A QUANTITY OF ONE TO LARGE-SCALE MASS PRODUCTION Intermittent Flow Operations Continuous Flow Operations

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

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 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. Comments

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

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 Center3 1 Center 5 Center4 6 2 Product A Product B Product C NO DOMINANT FLOWS THROUGH THE SYSTEM ( NO DOMINANT FLOWS THROUGH THE SYSTEM ) Product D

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

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

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

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

31 Batch Process Architecture 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. Comments

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

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

34 Assembly Line Architecture 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! Comments

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

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

37 Continuous Flow Architecture 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. Comments

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

39 The Process Flow Spectrum Project Job Shop Batch Process Assembly Line Continuous Flow NoneJumbledDisconnected & Dominant & DominantConnectedContinuous Flexibility Very High HighModerateLow Very Low Number of ProductsUniqueManySeveralFewOne Capital Investment Very Low LowModerateHigh Very High Variable Cost Very High HighModerateLow Very Low Labor Content Very High HighModerateLow Very Low Labor Skill Very High HighModerateLow Very Low Volume One Unit LowModerateHigh Very High

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

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 Labor Energy Equipment Transportation Economic Implications PROCESS CONTINUUM 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 Lathe Center Drilling Center Cutting Center Inspection Center PRODUCTS CONTINUALLY TRAVEL BETWEEN WORK CENTERS

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

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

48 Work Cell Layout Management 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. Setup Time and Setup Cost

49 Work Cell Layout Management MAJOR SETUP (CHANGE BETWEEN PRODUCT GROUPS) WINDOWS DOORS ORDER1ORDER2ORDER3 ORDE OORRDDEER1R1OORRDDEER1R1ORDE OORRDDEER2R2OORRDDEER2R2ORDE OORRDDEER3R3OORRDDEER3R3

50 Work Cell Layout Management MINOR SETUP (CHANGE WITHIN A PRODUCT GROUP) WINDOWS ORDER1 ORDER2 WINDOWS

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

52 The Process Flow Spectrum Project Job Shop Batch Process Assembly Line Continuous Flow NoneJumbledDisconnected & Dominant & DominantConnectedContinuous Flexibility Very High HighModerateLow Very Low Number of ProductsUniqueManySeveralFewOne Capital Investment Very Low LowModerateHigh Very High Variable Cost Very High HighModerateLow Very Low Labor Content Very High HighModerateLow Very Low Labor Skill Very High HighModerateLow Very Low Volume One Unit LowModerateHigh Very High

53 Intermittent Flow Operations MANUFACTURING Job ShopBatch 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 PHYSICIANS 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 WE FOCUS ON….. Classifying Service System Processes 1.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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