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L7 - Operation

The document discusses the importance of process selection in production and service delivery, highlighting its impact on capacity planning, facility layout, and equipment design. It outlines key aspects of process strategy, including capital intensity and process flexibility, and emphasizes the role of technology in influencing business processes. Additionally, it covers facility layout design objectives and types, aiming to enhance operational efficiency and minimize costs.

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5 views7 pages

L7 - Operation

The document discusses the importance of process selection in production and service delivery, highlighting its impact on capacity planning, facility layout, and equipment design. It outlines key aspects of process strategy, including capital intensity and process flexibility, and emphasizes the role of technology in influencing business processes. Additionally, it covers facility layout design objectives and types, aiming to enhance operational efficiency and minimize costs.

Uploaded by

demro channel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Process Selection

Product and service choices ,capacity planning ,process selection ,and layout of facilities are among the most basic
decisions managers make
Those decisions have long-term consequences for business organizations ,and they impact a wide range of activities
and capabilities.
Process Selection:
Refers to deciding on the way production of goods or services will be organized
• It has major implications for:
• Capacity planning
• Layout of facilities
• Equipment
• Design of work systems

Process Selection and System Design

Key aspects of process strategy:


• Capital intensity
The mix of equipment and labor that will be used by the organization
• Process flexibility
The degree to which the system can be adjusted to changes in processing requirements due to such factors as:
• Product and service design changes Process types )5 basic types(
• Volume changes
• Changes in technology

Two key questions in process selection:


• How much variety will the process need to be able to handle?
• How much volume will the process need to be able to handle?
Project
A nonrepetitive set of activities directed toward a unique goal within a limited time frame.
Examples: - Building a bridge - Consultancy services

Time to Apply
• For each of the following ,determine the best process type based on variety and volume:

Technology
Technology and technological innovation often have a major influence on business processes.
• Technological innovation refers to the discovery and development of new or improved products,
services ,or processes for producing or providing them.
• Technology refers to the application of scientific knowledge and discoveries to the development and
improvement of products ,services ,and operations processes.
Therefore ,the term high technology refers to the most advanced and developed equipment and/or methods.
There are TWO types of Technology
Process Technology refers to the methods ,procedures ,and equipment used to produce goods and provide services
Information Technology refers to the science and use of computers and other electronic equipment to store ,
process ,and send information
- This includes electronic data processing ,the use of bar codes and radio frequency (RFIDs) tags to
identify and track goods ,devices used to obtain point-of-sale information, data transmission ,the
Internet ,e -commerce ,e-mail ,and more.
Process technology and information technology can have a profound impact on:
- Costs - Productivity - Competitiveness
Automation
A key question that is asked in process design is:
Whether to Automate or Not?
Automation is: Machinery that has sensing and control devices that enable it to operate automatically
• Examples of automation in processes;
- Automated inspection - Automated storage systems -Automated package sorting
Facility Layout
Layout is
The configuration of departments ,work centers ,and equipment ,with particular emphasis on movement of
work( customers or materials )through the system
Facilities layout decisions arise when:
• Designing new facilities
• Re-designing existing facilities
Layout decisions are important for three basic reasons:
• They require substantial investments of money and effort.
• They involve long-term commitments.

• They have a significant impact on the cost and efficiency of operations.

Layout Design Objectives


Basic Objective is
• To facilitate a smooth flow of work ,material ,and information through the system
Supporting Objectives
• Facilitate product or service quality
• Use workers and space efficiently
• Avoid bottlenecks
• Minimize material handling costs
• Eliminate unnecessary movement of workers or material
• Minimize production time or customer service time
• Design for safety

Basic Layout Types


• Product layouts
• Process layouts
• Fixed-position layout
• Combination layouts
Types of Layouts
1- Product Layout
Product Layout is A layout that uses standardized processing operations to achieve smooth ,rapid ,high-
volume flow
• The work is divided into a series of standardized tasks ,permitting specialization of equipment and
division of labor
This type of layout is used for
- Repetitive Processing - Continuous processing

Product Layout

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