LAGUNA STATE POLYTECHNIC UNIVERSITY

SANTA CRUZ MAIN CAMPUS

OPERATIONS MANAGEMENT
AND TOTAL QUALITY
MANAGEMENT

Prepared by: Aldon M. Francia, MBA

 LAGUNA STATE POLYTECHNIC UNIVERSITY
SANTA CRUZ MAIN CAMPUS

Module 5:
Process Selection and
Facility Layout

Prepared by: Aldon M. Francia, MBA

 LAGUNA STATE POLYTECHNIC UNIVERSITY
SANTA CRUZ MAIN CAMPUS

Learning Outcomes
At the end of this module, students should be
able to:
1. explain the strategic importance of
process selection and the influence it has
on the organization and its supply chain;
2. name the two main factors that influence
process selection;
3. compare the various processing types; and
4. explain the importance of technology in
 LAGUNA STATE POLYTECHNIC UNIVERSITY
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Introduction
Choosing the organization of the production of
goods or services is referred to as process selection.
It has significant effects on work system design,
facility layout, equipment, and capacity planning.
When new products or services are being designed,
process selection happens routinely. However, it also
happens occasionally as a result of pressure from
rival companies and technological advancements in
goods or machinery.
Lesson 1. Process Selection (Stevenson, 2018)
Demand determines the process selection. The
following two issues are crucial to process selection:

1. What degree of diversity must the procedure be

able to handle?
2. What volume must the procedure be able to
handle?

The solutions to these questions will act as a

guide in choosing the best approach. A higher level
of one usually indicates a lower level of the other;
volume and variety typically go hand in hand.
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Lesson 1. Process Selection (Stevenson, 2018)
However, the degree of diversity that the
process will need to handle will directly affect the
amount of flexibility that is required for employees
and equipment. The larger the variety, the greater
the flexibility required.
Variety also has another crucial component.
Variety entails either having distinct operations for
each good or service, with consistent demand for
each, or being willing to put up with some downtime,
or setting up equipment whenever a new good or
service needs to be produced.

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Lesson 1. Process Selection (Stevenson, 2018)
Process Types
The five fundamental process types are
project, job shop, batch, repetitive, and continuous.

Job Shop
Typically, a job shop operates on a modest
scale. When a small number of diverse products or
services are anticipated to be required, it is used.
Processing occurs sporadically; labor consists of
small projects with varying processing needs. A job
shop should have skilled staff, general-purpose
equipment, and high levels of
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Lesson 1. Process Selection (Stevenson, 2018)
flexibility. A tool and die shop that can create unique
tools is an illustration of a job shop in the
manufacturing industry. A veterinarian's office, which
can handle a range of animals and injuries and
illnesses, is an illustration of a service.

Batch
When a moderate volume of goods or services
is required, batch processing is utilized because it
can manage a moderate range of goods and
services. Processing is still sporadic, but the
equipment does not need to be as adaptable as in a
job shop.
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Lesson 1. Process Selection (Stevenson, 2018)
Because there is less variation in the jobs being
processed than there would be in a job shop, the
skill level of the workers does not need to be as
great. A few examples of batch systems are bakeries
that produce bread, cakes, or cookies in batches,
movie theaters that show films to groups of people
(or batches), and airlines that transport planeloads
of people from one airport to another. Paint, ice
cream, soft drinks, beer, periodicals, and books are
more examples of goods that are well suited for
batch production. Plays, concerts, music videos,
radio and television shows, and public address
announcements are UNIVERSITY
LAGUNA STATE POLYTECHNIC more types of services.
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Lesson 1. Process Selection (Stevenson, 2018)
Repetitive
Repetitive processing is employed when bigger
volumes of more standardized items or services are
required. Because of the standardized output,
minimal equipment flexibility is required. Worker skill
levels are typically poor. Production and assembly
lines are two examples of this kind of system. In fact,
this kind of procedure is occasionally called
assembly. These systems produce common items
like cars, televisions, pens, and computers.

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Lesson 1. Process Selection (Stevenson, 2018)
Continuous
A continuous system is employed when a very
high volume of non-discrete, highly uniform output
is sought. Since the output from these systems is so
uniform, there is no need for flexible equipment.
Depending on the complexity of the system and the
level of expertise required by the workforce, the skill
requirements might range from minimal to high. In
general, workers' skills may be lower if the equipment is
highly specialized. Petroleum, steel, sugar, bread, and
salt are a few examples of non-discrete goods produced
in continuous systems. The provision of power to homes
and businesses, as well as the Internet, are continuous
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Lesson 1. Process Selection (Stevenson, 2018)
These types of processes can be found in a
variety of manufacturing and service environments.
It is preferable for process capabilities to align with
those of the required goods or services. Failure to do
so may lead to inefficiencies, unnecessarily high
expenses, and possibly a competitive disadvantage.
The highest levels of work diversity, process
flexibility, and unit cost are found in job shops, and
these values decrease steadily as one moves from a
job shop to continuous processing. In contrast, the
output volume is lowest for a job shop and increases
steadily as one moves from a work shop to
continuous
LAGUNA STATEprocessing.
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Lesson 1. Process Selection (Stevenson, 2018)
Project
A project is used for non-routine labor that has
a specific set of goals that must be achieved in a
finite amount of time. Examples range from
straightforward to complex and include staging a
play, advising, producing a movie, launching a new
good or service, publishing a book, constructing a
bridge, and building a dam. Worker skill levels and
equipment adaptability might range from low to
high.

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Lesson 1. Process Selection (Stevenson, 2018)
Process type affects supply chain needs as
well. Processes that are repetitive and ongoing
require consistent inputs of high-volume
commodities and services. Delivery dependability in
terms of timing and quality is crucial. Suppliers may
need to be able to handle orders with changing
quantity and timing due to job shop and batch
processing. Seasonality may play a role in some
situations, therefore suppliers must be able to meet
spikes in demand.

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Lesson 1. Process Selection (Stevenson, 2018)
Product and Service Profiling
By identifying important product or service
dimensions and then choosing the proper methods,
product or service profiling can be utilized to prevent
any irregularities. The variety of goods or services
that will be processed, anticipated order volumes,
pricing schemes, anticipated frequency of schedule
adjustments, and order-winning requirements are
frequently key aspects.

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Lesson 1. Process Selection (Stevenson, 2018)
Lean Process Design
Lean process design is advised by broad
principles. Waste minimization is one principle that is
of special significance in this context because it ties
to sustainability goals. In order to achieve level
production and hence enhance process flow, lean
design also emphasizes the elimination of workload
variance throughout the entire process.

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Lesson 2. Technology (Stevenson, 2018)
The use of technology and technical innovation
frequently has a significant impact on corporate
operations. The discovery and development of new
or improved goods, services, or methods for
delivering them are referred to as technological
innovation. Technology is the use of scientific
knowledge to develop and improve products,
services, and/or the methods used to
manufacture or deliver them. High technology
describes the most cutting-edge and developed tools
and/or procedures.

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Lesson 2. Technology (Stevenson, 2018)
Costs, productivity, and competitiveness can be
significantly impacted by process technology and
information technology. Process technology refers to the
techniques, tools, and processes used in the
manufacture of products and the delivery of services.
This extends to supply chain procedures in addition to
internal organizational activities. Information
technology (IT) is the study of how to store,
process, and send information using computers
and other electronic devices. IT has a significant
impact on how businesses operate nowadays. This
covers electronic data processing, the use of bar codes
and RFID tags to identify and track products, data
transfer,
LAGUNA the Internet,UNIVERSITY
STATE POLYTECHNIC e-commerce,
- SANTA CRUZe-mail, and more. It
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also covers devices used to collect point-of-sale
Lesson 2. Technology (Stevenson, 2018)
Items can be traced during manufacture and in
inventory via radio frequency (RFID) tags. Before
sending products to a client or a distribution center,
readers at a packing station can confirm that the correct
items and amounts were picked for outbound goods.
RFID tags can be applied in a medical setting in a
variety of ways. One is to make it easier to keep an
accurate inventory of hospital clothing by automating
the distribution of clean clothing. Each individual
working in the hospital may wear an RFID tag.

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Lesson 2. Technology (Stevenson, 2018)
Processing technology innovation can have a
huge positive impact on enterprises by improving
quality, reducing costs, boosting efficiency, and
extending processing capabilities. Examples include
the use of lasers in surgery and the development of
laser measuring tools, improvements in medical
diagnostic technologies, high-speed Internet access,
high-definition television, online banking, information
retrieval systems, and quick search engines. Processing
technologies are frequently acquired rather than
developed internally by a company.

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Lesson 2. Technology (Stevenson, 2018)
Automation refers to equipment with sensing and
control components that allow it to function
automatically. It might take the form of single
automated operations or fully automated factories.
Services that are automated are becoming more
and more crucial. Examples include automated
inspection, automated storage and retrieval systems,
package sorting, mail processing, e-mail online banking,
and E-Z pass. They range from automated teller
machines (ATMs) to automated heating and air
conditioning.

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Lesson 2. Technology (Stevenson, 2018)
In comparison to human work, automation
has a lot of benefits. It has little variation, whereas it
is challenging for a human to carry out a task
repeatedly, accurately, and in the same amount of
time. Variability has a negative impact on quality and
the capacity to fulfil deadlines in a production
environment. In addition, machines don't become bored
or distracted, go on strike, demand more pay, or file
labor complaints. Automation also has the benefit of
lowering variable expenses. Job-processing needs must
be specified for automated processing to be an option
(i.e., have very little or no variety).

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Lesson 2. Technology (Stevenson, 2018)
Automation is being used more frequently
by businesses in both the industrial and service
sectors to cut costs, boost productivity, and enhance
consistency and quality.
The promotion of automation as a tactic
essential for competitiveness is common. However,
compared to human work, automation also has
several drawbacks and restrictions. First of all, it can
be expensive. Technology is expensive; often, high
output quantities are needed to cover high
expenditures.

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Lesson 2. Technology (Stevenson, 2018)
Furthermore, compared to human labor, automation
offers significantly less flexibility. Once a process
has been automated, there are compelling reasons to
keep it that way. Additionally, people sometimes
worry about automation because they think it will
make them lose their jobs. The morale and production
may suffer as a result.

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Lesson 2. Technology (Stevenson, 2018)
In order to properly appreciate all the
implications, decision-makers must carefully
choose whether to automate or how much to
automate. A manufacturing system must be
carefully planned and thought out in order to include
automation. Otherwise, it could result in serious
issues. Automation has significant effects on cost and
flexibility in addition to how well it fits with broader
strategic aims. If it has decided to automate, caution
must be used to eliminate trash from the system
before automating in order to prevent the waste from
being built into the automated system.
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Lesson 2. Technology (Stevenson, 2018)
Automation can be divided into three
categories: fixed, programmable, and flexible.
The least flexible type of automation is fixed. It
employs expensive, specialized equipment to
carry out a predetermined set of tasks. Its main
benefits are low cost and high volume, while its main
drawbacks are limited diversity and the high expense
of making significant modifications to either the
product or the manufacturing process.

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Lesson 2. Technology (Stevenson, 2018)
Utilizing expensive general-purpose machinery
under the supervision of a computer software that
specifies both the order of operations and specifics
regarding each activity is known as programmable
automation. With this kind of automation, a broad
range of low-volume products can be affordably
produced in tiny batches. Applications of
programmable automation include some robots and
numerically controlled (N/C) devices.

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Lesson 2. Technology (Stevenson, 2018)
Flexible automation is employed in a variety of
formats in real life.
A flexible manufacturing system (FMS) is a
collection of devices that includes robots or other
automated processing machinery, autonomous material
handling, and supervisory computer control. These
systems are able to create a variety of items that are
identical thanks to reprogrammable controllers. Systems
can have three, four, or even more than a dozen
devices. They are made to address sporadic processing
demands while utilizing some of the advantages of
automation and some of the flexibility of standalone, or
individual, devices.
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Lesson 2. Technology (Stevenson, 2018)
3D Printing
The method of creating three-dimensional items
by the application of successive layers of material is
known as additive manufacturing, or 3D printing. Almost
any size or shape is possible for the objects. These
processes remove material using techniques including
cutting, grinding, sanding, drilling, and milling, which
makes them distinct from many well-known processes
that use subtractive manufacturing to create products.
Additionally, the time required to produce an object
using 3D printing is typically substantially longer than
the time required to produce an object using more
traditional methods in a factory.
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Lesson 2. Technology (Stevenson, 2018)
Applications
Along with a few consumer uses, 3D technology is
being used commercially in a variety of industries.

Benefits
Despite the fact that 3D printing isn't expected to
displace more popular high-volume production methods
in the near future, primarily due to its relative slowness,
it does offer an alternative production method that has
value in a variety of applications.

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Lesson 2. Technology (Stevenson, 2018)
Manufacturers have been able to significantly cut the
cost and/or time needed to design or build products in
some of those areas. Production of replacement parts in
the event of equipment failure when no spare parts are
available is one of the examples.

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Lesson 2. Technology (Stevenson, 2018)
Drones
Drones are typically small, unmanned aircraft
flown remotely. Drones are proving to be very helpful in
assessing storm and earthquake damage, especially in
situations where access by vehicles or on foot is difficult
or impossible due to the terrain, debris, or where roads
or bridges are impassable. They are also useful for
assessing crop damage, monitoring forest fires, and
obtaining visual detail in places that are hazardous to
humans or that are not readily accessible.

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Lesson 2. Technology (Stevenson, 2018)
Drones can also be used to carry medicines and
medical supplies when they are urgently needed in far-
off locations. Despite all of these advantages, using
drones has a number of drawbacks. In addition to
mechanical failure or operator mistake, there is a
chance that the drone will crash into other drones,
electrical wires, birds, or other objects, which could
prevent it from carrying out the planned duty.
Additionally, crashes may result in property damage or
injury to people nearby.

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Lesson 3. Process Strategy (Stevenson, 2018)
Flexibility does not always provide the best option
when processing decisions. Systems and equipment that are
more versatile are frequently more expensive and less
effective than less flexible alternatives. Flexibility isn't
always necessary because the items are mature, require few
design modifications, and have a consistent production
volume. This kind of circumstance typically necessitates
specialized processing equipment, with little requirement for
flexibility. The message is obvious: Flexibility should be
applied with extreme caution and should only be used in
instances when it is obviously necessary. In reality, flexible
systems are chosen by decision-makers for one of two
reasons: demand diversity or demand uncertainty. With
better forecasting, the second cause can be removed.
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Lesson 4. Strategic Resource Organization: Facilities
Layout (Stevenson, 2018)
With a focus on the flow of work (customers or
materials) through the system, layout refers to the
arrangement of departments, work centers, and
equipment. The primary layout design categories and
the models used to assess design choices are discussed
in this section.
Layout decisions, like those in other aspects of
system design, are crucial for three main reasons:
(1) they demand significant outlays of time and
resources; (2) they entail long-term commitments,
which makes errors challenging to correct; and (3) they
have a big impact on the cost and effectiveness of
operations.
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Lesson 5. Forecasting Capacity Requirements
(Stevenson, 2018)
Obtaining a forecast of future demand,
translating it into the quantity and timing of
capacity requirements, and deciding whether to
expand, decrease, or leave the capacity as is are
appropriate approaches to evaluating capacity
requirements. The expansion or shrinkage of an existing
facility, the establishment or closing of branch facilities,
and the relocation of current operations are long-term
capacity alternatives. A choice must now be made
regarding whether to produce a good or purchase one, or
whether to offer or purchase a service.

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Reference
Operations Management and Total Quality Management (2019).
McGraw-Hill Education. Philippines