Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Chapter 4 Process design Source: Joe Schwarz,

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Process design Operations strategy Design Improvement Planning and control Operations management Process design Supply network design Layout and flow Process technology Job design Product/service design

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 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

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 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 Design of products / services and design of processes are interrelated and should be treated together

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Design of the Service Design of the Process Design of the Product Design of the Process In most service operations the overlap between service and process design is implicit in the nature of service In manufacturing operations overlapping the activities of product and process design is beneficial

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 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

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 High VolumeLow High Variety Low Manufacturing process types Process tasks Process flow Diverse/ complex Repeated/ divided Intermittent Continuous

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 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 Project processes

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 A project process describes the whole process

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 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 Jobbing processes

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Preparing photolithography materials on a jobbing basis with a typical process map

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 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 Batch processes

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 A batch process in a kitchen

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Higher volumes than batch Standard, repeat products (‘runners’) No set-ups, or almost instantaneous ones Low and/or narrow skills Mass (line) processes

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 A mass process – a packing process

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 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 Continuous processes

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Part of a continuous process

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 VolumeLow High Variety Low High Service process types Process tasks Process flow Diverse/ complex Repeated/ divided Intermittent Continuous

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 A professional service – Consultants planning how best to help their client

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 A service shop – This health club offers some variety within a standard set of facilities and processes

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 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

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Deviating from the ‘natural’ diagonal on the product–process matrix has consequences for cost and flexibility None Less process flexibility than is needed so high cost More process flexibility than is needed so high cost The ‘natural’ line of fit of process to volume/variety characteristics Project Jobbing Batch Mass Continuous Manufacturing operations process types Professional service Service shop Mass service Service operations process types Variety Volume

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 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

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Flow (layout), technology and job design are all influenced by process positioning None Variety Volume Machine tool maker Custom furniture maker Automobile factory Petro- chemical refinery Flow Technology Jobs Unorganized Predictable Little / general Specialist Varied / high discretion Routine / low discretion Manufacturing

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Flow (layout), technology and job design are all influenced by process positioning None Variety Volume Flow Technology Jobs Unorganized Predictable Little / general Specialist Varied / high discretion Routine / low discretion Customer service branch Investment banking Bank call centre Credit card processing Services

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 The Service Package (or Bundle) is a concept used to alayse and design services and consists of the following 4 features: 1Supporting Facility. 2Facilitating goods. 3Sensual benefits or Explicit services 4Psychological benefits or Implicit services Service Management Fitzsimmonds and Fitzsimmonds, Service Management 4 th Edition, 2004, McGraw Hill. (p22)

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Supporting Facility Architectural appropriateness Interior decorating Facility layout Supporting equipment Service Management Fitzsimmonds and Fitzsimmonds, Service Management 4 th Edition, 2004, McGraw Hill. (p22)

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Facilitating goods Consistency Quantity Selection Service Management Fitzsimmonds and Fitzsimmonds, Service Management 4 th Edition, 2004, McGraw Hill. (p22)

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Explicit services Training of service personnel Comprehensiveness Consistency Availability Service Management Fitzsimmonds and Fitzsimmonds, Service Management 4 th Edition, 2004, McGraw Hill. (p22)

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Implicit services Attitude of service personnel Privacy and security convenience Atmosphere Waiting Status Sense of well-being Service Management Fitzsimmonds and Fitzsimmonds, Service Management 4 th Edition, 2004, McGraw Hill. (p22)