Process & Product Design
● Our Focus: Product volume (how many units you produce) & Product standardization
(how similar units are / how much variety)
● Process = the way inputs (labour, materials, machines) are turned into outputs
(goods/services).
○ Type of product flow:
■ Fixed position
- The product stays in one place, and workers/machines/materials
come to it.
- Used for big, heavy, or hard-to-move things.
- Example: building a house, ship, or airplane.
■ Jumbled Flow
- Each job takes a different path through the facility, depending on
what it needs.
- Lots of variety, low volume, schedules can be messy.
- Example: a hospital (each patient has a different route) or a custom
machine shop.
■ Line Flow
- Products move step-by-step along a line in the same sequence.
- Used for high volume, standardized products.
- Example: car assembly line, bottling line.
■ Continuous Flow
- Product flows non-stop, not in separate units, 24/7.
- Used for very high volume, highly standardized stuff.
- Example: oil refinery, chemical plant, steel mill.
○ Approach to customer orders:
■ Make-to-order (MTO): only produce after an order (custom furniture).
■ Make-to-stock (MTS): produce for inventory (canned soup).
■ Assemble-to-order (ATO): standard parts, customized final combo
- Ex. Dell computers: Standard parts (CPUs, RAM, storage) are in
stock. When you order, they assemble the specific combo you
chose on the website.
○ Amount of customization: how unique each unit is.
- So more unique = more customized (each unit can be different).
Example:
● A wedding planner → low volume, highly customized (each wedding is different).
● A bottled water factory → huge volume, fully standardized bottles.
Classification by Volume and Standardization
This creates four main process types:
● PROJECT & BATCH PROCESS → Intermittent Operations
● MASS PROCESS & CONTINUOUS PROCESS → Repetitive Operations
1. Project (Low volume, low standardization)
○ One-at-a-time product exactly to customer specifications
○ One-off, custom jobs.
○ Examples:
■ Building a bridge.
■ Designing a custom mansion.
○ Each “product” is unique, planned as a project.
2. Batch Process (Medium volume, medium variety)
○ Make small batches of products, based on actual or expected customer demand,
often to order.
○ Examples:
■ A bakery making batches of cookies: 100 chocolate chip, then 200
oatmeal.
■ A small machine shop making 50 parts for one client, then 75 for another.
3. Mass Process (High volume, high standardization, assembly line)
○ Repetitive operations, assembly-line style.
○ Examples:
■ Car assembly lines.
■ Smartphone assembly plants.
○ Same or very similar product repeated continuously.
4. Continuous Process (Very high volume, fully standardized, continuous flow)
○ Product flows non-stop, not in discrete units.
○ Examples:
■ Oil refinery.
■ Chemical plants, steel mills.
○ You don’t make “one unit” of gasoline—you produce a continuous stream
Intermittent vs Repetitive Operations
Intermittent Operations (Projects, batch processes)
● Product variety: Great – many different products or versions.
● Product flow: Jumbled – jobs move in different paths depending on what they need.
- Since every product is more unique and customizable they cant use the same
process for orders
● Customer orders: Typically make-to-order.
● Equipment type: General purpose (flexible machines that can do many tasks, like
drills, lathes, CNCs).
● Automation: Low, more manual work.
● Throughput time: Longer, because of setup, waiting, routing.
● WIP inventory: Usually higher, because jobs wait between steps.
● Critical resource: Labour (skills, flexibility).
Example:
A job-shop machine shop doing custom metal parts for different clients; each job has a different
route and setup.
Repetitive Operations (Mass and continuous processes)
● Product variety: Small – a few standard products.
● Product flow: Line flow – same route, same sequence.
● Customer orders: Mostly make-to-stock.
● Equipment type: Specialized machines dedicated to a narrow set of tasks.
● Automation: High, lots of conveyor belts, robots, and dedicated machines.
● Throughput time: Shorter, items flow continuously with little waiting.
● WIP inventory: Generally lower per unit of output.
● Critical resource: Capital (investment in equipment and automation).
Example:
A bottling plant: every bottle does exactly the same path—fill, cap, label, pack.
Process Type and Facility Layout
For Intermittent Operations → Process Layout
● Process layout = group resources by process type (similar activities together).
● Examples:
○ In a hospital: radiology area, surgery area, lab area, etc.
○ In a machine shop: all drills in one area, all milling machines in another.
● Jobs follow different routes depending on what they need.
● Warehouse layout: focuses on efficient storage and retrieval of items (e.g., grouping by
demand frequency).
● Office layout: arranges desks, offices, and departments to support communication and
workflow.
For Repetitive Operations → Product Layout
● Product layout = group resources in the sequence of operations required for the
product.
● Think of an assembly line: station 1, station 2, station 3…
Hybrids and Special Cases
● Cell Layout (between process and product layouts):
○ Group machines into “cells” that make families of similar parts.
○ Within the cell, flow is more like a small product layout.
○ Example: a cell that only makes all versions of a specific car component.
● Fixed-Position Layout:
○ The product stays in one place because it’s too large or hard to move.
○ Workers, machines, and materials move to the product.
○ Examples: shipbuilding, aircraft assembly, large construction projects.
● Retail Layout:
○ Designed based on customer behaviour (traffic patterns, impulse buying, etc.).
○ Example: grocery stores placing essentials (milk, bread) at the back so customers
walk past other items.
Layout Diagram
The slide shows diagrams for process, product, and cell layouts, and a small healthcare
example.
Roughly:
● Process layout diagram:
○ Machines of the same type grouped: e.g., area 1, 2, 3, 4, 5, 6.
○ Product A travels something like 1 → 4 → 6, product B maybe 2 → 3 → 5.
● Product layout diagram:
○ Stations arranged in line: 1 → 2 → 3 for product A.
● Cell layout diagram:
○ A, B, C are product families handled inside a cell with machines 1, 2, 3, 4, 5.
● Healthcare example:
○ Rooms like Lobby, Exam room, Radiology, Surgery, Laboratory, Physical
Therapy arranged based on patient flow.
Process Type and Technology Adoption
Instead of process types, they now show technology choices:
● General Purpose
○ Used at low volume, low standardization (intermittent).
○ Flexible machines: standard lathes, mills, general 3D printers.
○ Good for custom work.
● Group Technology (GT)
○ Used in moderate volume/variety areas; groups machines for families of parts.
○ Supports cell layouts.
● Flexible Manufacturing System (FMS)
○ More volume and more standardization.
○ Computer-controlled machines, automated handling, can switch between a limited
variety of products quickly.
● Focused Automation / Dedicated Automation
○ High volume, high standardization (repetitive/continuous).
○ Focused automation: automation aimed at a narrow range of
products/operations.
○ Dedicated automation: machines built for one product or operation (e.g., a
custom machine that only drills a specific pattern of holes in a specific part).
Idea:
As volume and standardization go up, it’s worth spending more on specialized, automated
equipment.
Manufacturing Technologies
1. Group Technology (GT)
○ Group dissimilar machines into cells that make a family of similar parts.
○ Instead of organizing the plant by process (all drills in one room, all lathes in
another), you group machines into “cells” that can make a certain type of product
from start to finish.
○ Reduces movement and setup times.
○ Example: a cell that makes all variants of small metal brackets with similar
shapes.
2. Flexible Manufacturing System (FMS)
○ Many programmable machine tools connected by automated material
handling (robots, conveyors).
○ Machines are controlled by computers and can be reprogrammed to make
different products.
○ Can change between different products with minimal manual intervention.
○ Example: an automotive engine plant that can make several engine variants using
computer programs.
3. Robotics
○ Computer-controlled devices that can perform complex or repetitive tasks.
○ They can weld, paint, assemble, lift heavy items, etc., often faster and more
accurately than humans.
○ Examples: welding robots in car factories, pick-and-place robots in electronics.
4. Computer-Aided Manufacturing (CAM)
○ Using computers to control machines directly (CNC).
○ The computer sends precise instructions to machines about cutting paths, speeds,
drilling locations, etc.
○ Often based on a design made in CAD (computer-aided design).
○ Example: A furniture company designs a table leg in CAD. That file is sent to a
CNC router (CAM), which cuts the exact shape out of wood with no manual
measuring or marking.
5. Computer-Integrated Manufacturing (CIM)
○ Everything is connected by computers
○ Integrates product design, process planning, and manufacturing through
computers (All these steps share data automatically.)
○ Data flows from design (CAD) → process planning → CAM → scheduling etc.
○ Goal: seamless flow of information, quicker and more accurate production.
Process Selection
This slide links process type to corporate strategy.
Intermittent Processes (Project/Batch)
● Corporate strategy: customized products, niche markets.
● Operations strategy: low volume, high customization.
● Competitive priorities:
○ Volume flexibility (able to ramp up/down as needed).
○ Customization (tailoring to individual customers).
Example:
A custom kitchen cabinet manufacturer—customers choose sizes, finishes, and layouts.
Repetitive Processes (Mass/Continuous)
● Corporate strategy: mass market, standardized products.
● Operations strategy: high volume production.
● Competitive priorities:
○ Low cost (efficiency, economies of scale).
○ Sometimes also consistent quality and fast delivery.
Example:
McDonald’s or Coca-Cola bottling plants—huge volumes, very standardized.
Big idea:
Your process must support your strategy.
If your strategy is “super customized, premium product,” but you use a rigid assembly line,
you’ll struggle.
Product Design
Product Design = Defining All the Product’s Characteristics
● Dimensions, materials, performance, appearance, reliability, etc.
General Steps in Product Design
1. Idea Development
○ Sources: customers, competitors (reverse engineering), R&D, market trends.
○ Example: customers ask for a lighter laptop → idea for a new thin model.
2. Product Screening (Feasibility Study)
○ Ask: Is this idea technically feasible? Financially viable?
○ Do we have the technology and capacity? Is there demand?
3. Preliminary Design and Testing
○ Build prototypes, run tests, get feedback.
○ Example: prototype of a new running shoe tested by athletes.
4. Final Design
○ Lock in specs, materials, manufacturing process, quality standards.
○ Documentation is finalized for production.
Faster Introduction of New Products
● Concurrent Engineering
○ A multifunctional team (design, operations, marketing, etc.) works together at
the same time rather than in sequence.
○ Speeds up development and ensures the product is design-for-manufacturability.
● Computer-Aided Design (CAD)
○ Using computer graphics to design products (3D models).
○ Makes changes fast, can test fit and appearance virtually.
● 3D Printing (Additive Manufacturing)
○ Makes objects layer by layer from a CAD model.
○ Great for rapid prototypes and sometimes small batch production.
○ Example: printing a custom phone case prototype or a custom implant.