Job Shop, Flow Shop, and Batch Processing. 2 Ardavan Asef-Vaziri Jan-1011Operations Strategy: 1- Introduction Facility Layout : Job Shop A C B D Product.

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Presentation transcript:

Job Shop, Flow Shop, and Batch Processing

2 Ardavan Asef-Vaziri Jan-1011Operations Strategy: 1- Introduction Facility Layout : Job Shop A C B D Product 1 Output Input Product 2

3 Ardavan Asef-Vaziri Jan-1011Operations Strategy: 1- Introduction Functional layout: similar resources in the same department. Ex. all press machines are located in stamping department. Ex. Bakeries, law firms, emergency rooms, repair shops. low volume, high variety customized products flexible resources skilled human resources jumbled work flows high material handling large volume of inventories long flow time highly structured information system high cost per unit of product but low investment Job Shop (Functional Layout)

4 Ardavan Asef-Vaziri Jan-1011Operations Strategy: 1- Introduction Facility Layout : Flow Shop Output Input A C BD BA Product 1 Product 2

5 Ardavan Asef-Vaziri Jan-1011Operations Strategy: 1- Introduction Product layout or line layout: Resources are arranged according to the sequence of the operations. Usually requires duplication ( and investment) of a resource pool; dedication of resources. Discrete flow shop; assembly line, Continuous flow shop; beverage. high standardization, high speed low material handling, short flow time low flow unit processing cost high investment cost; needs mass production. special purpose equipment, and low skilled labor prevent flexibility Most processes fall somewhere on the continuum between Job Shop and Flow Shop; batch processing. Flow Shop (Product Layout)

6 Ardavan Asef-Vaziri Jan-1011Operations Strategy: 1- Introduction  Positions outside the diagonal signal misalignment. Threestar chefs who serve simple meals (burritos and tacos) with their highly flexible job shop process incur high opportunity costs. Substantial savings would result from changing resources (including chefs) and streamlining the process into a flow shop.  Asking Chipotle's to change its menu daily would require high changeover costs. Asking it to deliver a three-star dining experience is virtually impossible. The Product-Process Matrix

7 Ardavan Asef-Vaziri Jan-1011Operations Strategy: 1- Introduction  Whereas the strategic operational audit is a highlevel tool for improving fit, the product-process matrix focuses on the match between process technology and delivered product attributes.  The product-process matrix starts by evaluating the promised value proposition and the process used to deliver value. It verifies alignment along one dimension, often by comparing the degree of variety in the value proposition with the degree of process flexibility. This combination is then represented by a covered area in the matrix where the distance to the diagonal represents the degree of misalignment. The Product-Process Matrix

8 Ardavan Asef-Vaziri Jan-1011Operations Strategy: 1- Introduction Matching Process Choice with Strategy: Product-Process Matrix Process Flexibility Jumbled Flow. Process segments loosely linked. Disconnected Line Flow/Jumbled Flow but a dominant flow exists. JOB SHOP (Commercial Printer, Architecture firm) BATCH (Heavy Equipment, Auto Repair) FLOW SHOP (Auto Assembly, Car lubrication shop) CONTINUOUS FLOW (Oil Refinery) Product Variety Low Low Standardization One of a kind Low Volume Many Products Few Major Products High volume High Standardization Commodity Products Connected Line Flow (assembly line) Continuous, automated, rigid line flow. Process segments tightly linked. Opportunity Costs Out-of-pocket Costs High Low High

9 Ardavan Asef-Vaziri Jan-1011Operations Strategy: 1- Introduction Matching Process Choice with Strategy: Product-Process Matrix Process Flexibility Jumbled Flow. Process segments loosely linked. Disconnected Line Flow/Jumbled Flow but a dominant flow exists. JOB SHOP (Commercial Printer, Architecture firm) BATCH (Heavy Equipment, Auto Repair) FLOW SHOP (Auto Assembly, Car lubrication shop) CONTINUOUS FLOW (Oil Refinery) Product Variety Low Low Standardization One of a kind Low Volume Many Products Few Major Products High volume High Standardization Commodity Products Connected Line Flow (assembly line) Continuous, automated, rigid line flow. Process segments tightly linked. Opportunity Costs Out-of-pocket Costs High Low High A similar graph can be prepared to show the relationship between process flexibility and cost, or process flexibility and response time, but not for quality.