4.
Chapter 4
Process design
Shenval. Alamy
Slack, Chambers and Johnston, Operations Management, 6th Edition,
4.1
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
Process design
4.2
Operations
strategy
Process design Operations
Supply network design Design management Improvement
Layout
Planning and
and flow
control
Process People, jobs
technology and
organization
Product/ service
design
Slack, Chambers and Johnston, Operations Management, 6th Edition,
4.2
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
Key operations questions
4.3
In Chapter 4 – Process design – Slack et al. identify the
following key questions:
•What is process design?
•What objectives should process design have?
•How does volume and variety affect process
design?
•How are processes designed in detail?
Slack, Chambers and Johnston, Operations Management, 6th Edition,
4.3
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
Nature and purpose of the design activity
4.4
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, 6th Edition,
4.4
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.5 The design of products/services and processes are interrelated
and should be treated together
•Products and services should be designed in
such a way that they can be created effectively.
•Product/service design has an impact on the
process design and vice versa.
•Processes should be designed so they can
create all products and services which the
operation is likely to introduce.
Slack, Chambers and Johnston, Operations Management, 6th Edition,
4.5
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
The overlap of activities is greater in service design
4.6
• 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.
Slack, Chambers and Johnston, Operations Management, 6th Edition,
4.6
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
The Smart car uses environmentally friendly design principles
4.7
Slack, Chambers and Johnston, Operations Management, 6th Edition,
4.7
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
Process mapping symbols
4.8
Process mapping symbols Process mapping symbols
derived from ‘Scientific derived from Systems
Management’ Analysis
Operation (an activity Beginning or end of
that directly adds process
value)
Inspection (a check of Activity
some sort)
Transport (a movement Input or Output from the
of something) process
Delay (a wait, e.g. for materials)
Direction of flow
Storage (deliberate
storage, as opposed to a Decision (exercising discretion)
delay)
Slack, Chambers and Johnston, Operations Management, 6th Edition,
4.8
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
Designing processes
4.9
•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, 6th Edition,
4.9
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
Manufacturing process types
4.10
Process Process
tasks flow
High
Diverse/ Project
Intermittent
complex
Jobbing
Variety
Batch
Mass
Contin-
Low
Repeated/ Continuous uous
divided
Low Volume High
Slack, Chambers and Johnston, Operations Management, 6th Edition,
4.10
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
Project processes
4.11
One-off, complex, large scale, high work content
‘products’
Specially made, every one customized
Defined start and finish: time, quality and cost objectives
Many different skills have to be coordinated.
Slack, Chambers and Johnston, Operations Management, 6th Edition,
4.11
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
Jobbing processes
4.12
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, complete whole product.
Slack, Chambers and Johnston, Operations Management, 6th Edition,
4.12
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
Batch Processes
4.13
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.
Slack, Chambers and Johnston, Operations Management, 6th Edition,
4.13
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
Mass (line) processes
4.14
Higher volumes than batch
Standard, repeat products (‘runners’)
Low and/or narrow skills
No set-ups, or almost instantaneous ones.
Slack, Chambers and Johnston, Operations Management, 6th Edition,
4.14
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
Continuous processes
4.15
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.
Slack, Chambers and Johnston, Operations Management, 6th Edition,
4.15
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
Service process types
4.16
Process Process
tasks flow
High
Diverse/ Professional
Intermittent
complex service
Variety Service shop
Mass service
Low
Repeated/ Continuous
divided
Low Volume High
Slack, Chambers and Johnston, Operations Management, 6th Edition,
4.16
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
Professional service
4.17
High levels of customer (client) contact.
Clients spend a considerable time in the service process.
High levels of customization with service processes being
highly adaptable.
Contact staff are given high levels of discretion in
servicing customers.
People-based rather than equipment-based.
Slack, Chambers and Johnston, Operations Management, 6th Edition,
4.17
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
Service shops
4.18
Medium levels of volumes of customers
Medium, or mixed, levels of customer contact
Medium, or mixed, levels of customization
Medium, or mixed, levels of staff discretion.
Slack, Chambers and Johnston, Operations Management, 6th Edition,
4.18
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
Mass service
4.19
High levels of volumes of customers
Low to medium levels of customer contact
Low, or mixed, levels of customization
Low, or mixed, levels of staff discretion.
Slack, Chambers and Johnston, Operations Management, 6th Edition,
4.19
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.20 Deviating from the ‘natural’ diagonal on the product–process
matrix has consequences for cost and flexibility
Manufacturin Volume Service
g operations operations
process types Variety process types
Project None Professional
service
More process
Jobbing flexibility than
is needed so
high cost Service
Batch shop
Less process
Mass flexibility than
is needed so Mass
high cost
service
Continuous None
The ‘natural’ line of fit of process to
volume/variety characteristics
Slack, Chambers and Johnston, Operations Management, 6th Edition,
4.20
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.21 Deviating from the ‘natural’ diagonal on the product–process
matrix has consequences for cost and flexibility (Continued)
Volume
Variety
None
Old
Old process
process new
product
New
process
new
product
None
The ‘natural’ line of fit of process to
volume/variety characteristics
Slack, Chambers and Johnston, Operations Management, 6th Edition,
4.21
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
Customized sandwich – old process
4.22
Raw Stored Move to Stored Take
Assembly Sell
materials sandwiches outlets sandwiches payment
Standard sandwich process
Customer
request
Slack, Chambers and Johnston, Operations Management, 6th Edition,
4.22
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
Customized sandwich – old process (Continued)
4.23
Raw Take
materials Assembly payment
Customer
request
Slack, Chambers and Johnston, Operations Management, 6th Edition,
4.23
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
Higher level process map
4.24
Assemble as Take
Prepare required payment
The operation of Sandwich Customers
making and selling materials and ‘assembled’ to
customized customers sandwiches
sandwiches
Bread and
base filling The outline process of
Assemble whole making and selling
sandwich
Use standard
customized sandwiches
‘base’?
No
Yes Fillings
Customer request The detailed process of
assembling customized
Assemble from
standard ‘base’
sandwiches
Stored
‘bases’
Slack, Chambers and Johnston, Operations Management, 6th Edition,
4.24
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
Customized sandwich - new process
4.25
Assemble whole
sandwich
Assembly of Take
Use standard
‘sandwich No
‘base’? payment
bases’
Fillings
Bread and Yes
Customer request
base filling
Assemble from
Stored ‘bases’
standard ‘base’
Slack, Chambers and Johnston, Operations Management, 6th Edition,
4.25
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
Flow process charts for processing expense
4.26
Description of activity
Description of activity
1 Report arrives
1 Report arrives
2 Wait for processing
2 Stamp and date report
3 Check expenses report 3 Check expenses report
4 Stamp and date report 4 Attach payment voucher
5 Send cash to receipt desk 5 Wait for batching
6 Wait for processing
6 Collect retorts into batch
7 Check advance payment Batch to audit desk
7
8 Send to accounts receivable
8 Wait for processing
9 Wait for processing 9 Check reports and vouchers
10 Check employee record 10 Reports to batch control
11 Send to account payable 11 Batch control number
12 Attach payment voucher
12 Copy of reports to filing
13 Log report
13 Reports filed
14 Check against rules 14 Payment voucher to keying
15 Wait for batching Confirm payment
15
16 Collect retorts into batch
17 Batch to audit desk Totals 5 5 2 2 1
18 Wait for processing
19 Batch of reports logged
20 Check payment voucher
21
22
Reports to batch control
Batch control number
Before
23 Copy of reports to filing After
24 Reports filed
25 Payment voucher to keying
26 Confirm payment
Totals 7 8 5 5 1
Slack, Chambers and Johnston, Operations Management, 6th Edition,
4.26
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
Little’s law (a really quite useful law)
4.27
Throughput (TH) = Work In Process (WIP) x Cycle Time (CT)
Cycle time
= 2 mins
WIP = 10
Throughput time = ?
Throughput time = 10 × 2 mins
Throughput time = 20 mins
Slack, Chambers and Johnston, Operations Management, 6th Edition,
4.27
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
Little’s law (a really quite useful law) (Continued)
4.28
Throughput (TH) = Work In Process (WIP) x Cycle Time (CT)
Need to mark 500 exam scripts in 5 days (working 7 hours a day). 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 times
Cycle time = 35 hours = 0.07 hours
500 scripts
Number of markers = Work content = 1 hour = 14.29
Cycle time 0.07
Slack, Chambers and Johnston, Operations Management, 6th Edition,
4.28
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
Throughput efficiency
4.29
Throughput efficiency is the work content of whatever is
being processed as a percentage of its throughput time
Work content
Throughput efficiency = × 100
Throughput time
Slack, Chambers and Johnston, Operations Management, 6th Edition,
4.29
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
4.30
Throughput time Arrival
Arrival 9 5–15 105–15
30 Processing
frequency 20
frequency 10 Processing
and capacity (demand) mins mins
(demand) mins time
mins time
utilisation
X
Utilization
Utilization
Utilization===100
33.33
50
100%%
%%% QQ
<100% Q
Q====0infinity
0>0
High
time
length of queue
High utilization but
long throughput times
Average throughput
(or inventory)
X
Process
Low utilization but
short throughput times
X
Reduce process
Low X variability
X X X
0 20% 40% 60% 80% 100%
Capacity utilization
Slack, Chambers and Johnston, Operations Management, 6th Edition,
4.30
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
Process utilization, waiting time and variability
4.31
Average number of units
Average number of units
waiting to be processed
waiting to be processed
High utilization
but long waiting
time
Decreasing Reduction in
process X
variability variability
Short waiting
time but low
utilization
Y Z
0 10 20 30 40 50 60 70 80 90 100 0 10 20 30 40 50 60 70 80 90 100
Utilization Utilization
(a) Decreasing variability allows higher (b) Managing process capacity
utilization without long waiting times. and/or variability.
Slack, Chambers and Johnston, Operations Management, 6th Edition,
4.31
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
