1. Chapter 4
Process design
Source: Joe Schwarz,

2. Process design Process design Operations strategy
Supply network design
Layout
and flow
Operations management
Design
Improvement
Process technology
Job
design
Planning and control
Product/service design

3. Nature and purpose of the design activity
Products, services and the processes which produce them all have to be designed
Decisions taken during the design of a product or service will have an impact on the decisions taken during the design of the process which produces those products or services, and vice versa

4. Designing the product or service
Design of products / services and design of processes are interrelated and should be treated together
Products and services should be designed in such a way that they can be created effectively
Designing the product or service
Processes should be designed so they can create all products and services which the operation is likely to introduce
Designing the process
Product / service design has an impact on the process design and vice versa

5. Design of the Product
Design of the Process
Design of the Service
Design of the Process
In manufacturing operations overlapping the activities of product and process design is beneficial
In most service operations the overlap between service and process design is implicit in the nature of service

6. Process mapping symbols derived from ‘Scientific Management’
Delay (a wait, e.g. for materials)
Operation (an activity that directly adds value)
Inspection (a check of some sort)
Transport (a movement of something)
Storage (deliberate storage, as opposed to a delay)
Process mapping symbols derived from ‘Scientific Management’
Decision (exercising discretion)
Process mapping symbols derived from Systems Analysis
Direction of flow
Input or output from the process
Activity
Beginning or end of the process

7. Designing processes
There are different ‘process types’
Process types are defined by the volume and variety of ‘items’ they process
Process types go by different names depending on whether they produce products or services

8. Manufacturing process types
Process tasks
Process flow
Diverse/ complex
Repeated/ divided
Intermittent
Continuous
Project
High
Jobbing
Batch
Variety
Mass
Contin-uous
Low
Low
Volume
High

9. Project processes
One-off, complex, large-scale ‘products’ with high work content
Specially made, every one ‘customized’
Defined start and finish: time, quality and cost objectives
Many different skills have to be coordinated

10. A project process with a small part of the process map that would describe the whole process

11. Jobbing processes
Very small quantities: ‘one-offs’, or only a few required
Specially made: high variety, low repetition, ‘strangers’, every one ‘customized’
Skill requirements are usually very broad
Skilled jobber, or team, completes whole product

12. Preparing photolithography materials on a jobbing basis with a typical process map

13. Batch processes
Higher volumes and lower variety than for jobbing
Standard products, repeating demand. But can make specials
Specialized, narrower skills
Set-ups (changeovers) at each stage of production

14. A batch process in a kitchen together with an illustrative process map

15. Mass (line) processes
Higher volumes than batch
Standard, repeat products (‘runners’)
Low and/or narrow skills
No set-ups, or almost instantaneous ones

16. A mass process – a packing process

17. Continuous processes
Extremely high volumes and low variety: often single product
Standard, repeat products (‘runners’)
Highly capital-intensive and automated
Few changeovers required
Difficult and expensive to start and stop the process

18. Part of a continuous process and a typical process map

19. Service process types Process tasks Process flow High
Diverse/ complex
Repeated/ divided
Intermittent
Continuous
High
Professional service
Service shop
Variety
Mass service
Low
Low
Volume
High

20. A professional service – Consultants planning how best to help their client

21. A service shop – This health club offers some variety within a standard set of facilities and processes

22. A mass service – This call centre can handle a very high volume of customer enquiries because it standardizes its process
Source: Royal Bank of Scotland Group

23. Deviating from the ‘natural’ diagonal on the product–process matrix has consequences for cost and flexibility
Project
Jobbing
Batch
Mass
Continuous
Manufacturing operations process types
Volume
Professional
service
Service
shop
Mass
Service operations process types
Variety
The ‘natural’ line of fit of process to volume/variety characteristics
None
More process flexibility than is needed so high cost
Less process flexibility than is needed so high cost
None 9

24. Old process, new product New process, new product
Deviating from the ‘natural’ diagonal on the product–process matrix has consequences for cost and flexibility
None
Variety
Volume
Old process
Old process, new product
New process, new product 9

25. Flow (layout), technology and job design are all influenced by process positioning
None
Variety
Volume
Flow
Technology
Jobs
Little / general
Specialist
Varied / high discretion
Routine / low discretion
Custom furniture maker
Unorganized
Predictable
Machine tool maker
Automobile factory
Petro- chemical refinery 9

26. Flow (layout), technology and job design are all influenced by process positioning
None
Variety
Volume
Flow
Technology
Jobs
Unorganized
Little / general
Varied / high discretion
Investment banking
Customer service branch
Bank call centre
Credit card processing
Routine / low discretion
Predictable
Specialist 9

27. Process mapping symbols derived from ‘Scientific Management’
Delay (a wait, e.g. for materials)
Operation (an activity that directly adds value)
Inspection (a check of some sort)
Transport (a movement of something)
Storage (deliberate storage, as opposed to a delay)
Process mapping symbols derived from ‘Scientific Management’
Decision (exercising discretion)
Process mapping symbols derived from Systems Analysis
Direction of flow
Input or output from the process
Activity
Beginning or end of the process

28. Customized sandwich – old process
Raw materials
Stored sandwiches
Move to outlets
Stored sandwiches
Take payment
Assembly
Customer request
Sell
Standard sandwich process

29. Customized sandwich – old process
Raw materials
Take payment
Customer request
Assembly

30. The operation of making and selling customized sandwiches
Outline process of making and selling customized sandwiches
Prepare
Assemble as required
Take payment
Sandwich materials and customers
Customers ‘assembled’ to sandwiches
Bread and base filling
Stored ‘bases’
Fillings
Assemble whole sandwich
Customer request
Use standard ‘base’?
Assemble from standard ‘base’ No
Yes
Detailed process of assembling customized sandwiches

31. Customized sandwich – new process
Assemble whole sandwich
Assembly of ‘sandwich bases’
Customer request
Use standard ‘base’? No
Yes
Take payment
Fillings
Bread and base filling
Stored ‘bases’
Assemble from standard ‘base’

32. Flow process charts for processing expense reports at Intel before and after improving the process
Send to accounts receivable
Reports to batch control
Reports filed
Confirm payment
Report arrives
Stamp and date report
Send cash to receipt desk
Wait for processing
Check expenses report
Check employee record
Check advance payment
Send to account payable
Attach payment voucher
Collect retorts into batch
Check against rules
Batch control number
Check payment voucher
Log report
Batch to audit desk
Wait for batching
Batch of reports logged
Copy of reports to filing
Description of activity
Totals 8 1 2 4 5 6 7 9 10 3 18 11 12 14 15 16 17 19 20 13 26 22 23 24 25 21
Payment voucher to keying
Reports to batch control
Reports filed
Payment voucher to keying
Confirm payment
Report arrives
Stamp and date report
Check expenses report
Wait for processing
Check reports and vouchers
Attach payment voucher
Collect retorts into batch
Batch control number
Batch to audit desk
Wait for batching
Copy of reports to filing
Description of activity
Totals 8 1 2 4 5 6 7 9 10 3 11 12 14 15 13

33. Little’s law (a really quite useful law)
Throughput (TH) = Work in process (WIP) × Cycle time (CT)
Cycle time = 2 minutes
WIP = 10
Throughput time = ?
Throughput time = 10 × 2 minutes
= 20 minutes

34. Little’s law (a really quite useful law)
Throughput (TH) = Work in process (WIP) × Cycle time (CT)
500 exam scripts need to be marked in 5 days (working 7 hours a day). It takes 1 hour to mark a script. How many markers are needed?
Throughput time = 5 days × 7 hours = 35 hours
35 hours = 500 scripts × Cycle time
Cycle time = hours
500 scripts
= 0.07 hours
Number of markers = Work content = 1 hour = 14.29
Cycle time
0.07

35. Throughput efficiency
Throughput efficiency is the work content of whatever is being processed as a percentage of its throughput time
Throughput efficiency =
Work content
Throughput time
× 100

36. Arrival frequency (demand)X
5–15 mins
Arrival frequency (demand)
Processing time
Utilization < 100% Q > 0
Arrival frequency (demand) X
Utilization = 100 % Q = infinity
9 mins X
Utilization = 50 % Q = 0
20 mins X
10 mins
Utilization = 100 % Q = 0
30 mins
10 mins
Processing time
Utilization = % Q = 0
High
High utilization but long throughput times
Low utilization but short throughput times
Reduce process variability
Process throughput time
(or inventory)
Average length of queue X X
Low X
20%
40%
60%
80%
100%
Capacity utilization

37. The relationship between process utilization and number of units waiting to be processed for variable arrival and activity times
High utilization but long waiting time
Average number of units waiting to be processed
Decreasing variability
Average number of units waiting to be processed
Reduction in process variability X
Short waiting time but low utilization Z Y 10 20 30 40 50 60 70 80 90
100 10 20 30 40 50 60 70 80 90
100
Utilization
Utilization
(a) Decreasing variability allows higher utilization without long waiting times
(b) Managing process capacity and/or variability

38. Key Terms Test Throughput time
The time for a unit to move through a process.
Utilization
The ratio of the actual output from a process or facility to its design capacity.
Life cycle analysis
A technique that analyzes all the production inputs, the life cycle use of a product and its final disposal in terms of total energy used and wastes emitted.

39. Key Terms Test Process types
Terms that are used to describe a particular general approach to managing processes. In manufacturing these are generally held to be project, jobbing, batch, mass and continuous processes; in services they are held to be professional services, service shops and mass services.
Project processes
Processes that deal with discrete, usually highly customized, products.
Jobbing processes
Processes that deal with high variety and low volumes, although there may be some repetition of flow and activities.

40. Key Terms Test Batch processes
Processes that treat batches of products together, and where each batch has its own process route.
Continuous processes
Processes that are high volume and low variety; usually products made on continuous processes are produced in an endless flow, such as petrochemicals or electricity.
Professional services
Service processes that are devoted to producing knowledge-based or advice-based services, usually involving high customer contact and high customization. Examples include management consultants, lawyers, architects, etc.

41. Key Terms Test Service shops
Service processes that are positioned between professional services and mass services, usually with medium levels of volume and customization.
Mass services
Service processes that have a high number of transactions, often involving limited customization, for example mass transportation services, call centres, etc.
Product–process matrix
A model derived by Hayes and Wheelwright that demonstrates the natural fit between volume and variety of products and services produced by an operation on one hand, and the process type used to produce products and services on the other.

42. Key Terms Test Process mapping
Describing processes in terms of how the activities within the process relate to each other (may also be called process blueprinting or process analysis).
Process mapping symbols
The symbols that are used to classify different types of activity, usually derived either from scientific management or from information systems flowcharting.
High-level process mapping
An aggregated process map that shows broad activities rather than detailed activities (sometimes called an outline process map).

43. Key Terms Test Work content
The total amount of work required to produce a unit of output, usually measured in standard times.
Throughput time
The time for a unit to move through a process.
Cycle time
The average time between units of output emerging from a process.

44. Key Terms Test Work-in-process
The number of units within a process waiting to be processed further (also called work-in-progress).
Little’s Law
The mathematical relationship between throughput time, work-in-process and cycle time:
Throughput time = work-in-process × cycle time