DESIGN OF THE OPERATION SYSTEM

3.1 Product Design and Development

 Design is the conversion of knowledge and requirement into a
form convenient and suitable for use or manufacture.
 Product design includes, preparation of drawings,
specifications, experimental and development efforts associated
with the product to be produced or manufactured etc.
 Product design deals with its form and function.
 Form implies the shape and appearance of the product
 Function is related to working of the product.

 Product and service design plays a strategic role in the degree to

which an organization is able to achieve its goals.
 It is a major factor in customer satisfaction, quality and
production costs.
 Cont…

 The essence / core of an organization is the goods and

services it offers
– Therefore, every aspect of the organization is
structured around them (i.e, the goods and services
it offers).

 Product and Service design (or redesign) should be

closely tied to an organization’s strategy
 Cont…

• Product design is the process of defining all the features and

characteristics of the company’s product.
• Consumers respond to a product’s appearance, color, texture, and
performance, all of which, summed up, are the product’s design.
• Therefore, Product design:
– Specifies materials required
– Determines product dimensions & tolerances
– Defines appearance
– Sets performance standards
 Cont…

 Product design and process selection affect:

 Product quality,
 product cost, and
 customer satisfaction.
 The product has to be manufactured using materials, equipment,
and labor skills that are efficient and affordable.
 This is called the product’s manufacturability—the ease with
which the product can be made.
 Manufacturability is the ease of fabrication or assembly which is
important for cost, productivity and quality.
 Cont…

 If a product is to achieve customer satisfaction, it must have

the combined characteristics of:
 good design
 competitive pricing, and
 the ability to fill a market need
 The same goes for service design except the fact that services
need to be designed with a due consideration of their unique
characteristics:
– i.e. high degree of customer contact and intangibility.
 Key Questions During Product Design

1. Is there a demand for it?

Market size
Demand profile
2. Can we do it?
Manufacturability - the capability of an organization to produce
an item at an acceptable profit
Serviceability - the capability of an organization to provide a
service at an acceptable cost or profit
3. What level of quality is appropriate?
Customer expectations, Competitor quality
Fit with current offering
4. Does it make sense from an economic standpoint?
Liability issues, ethical considerations, sustainability issues,
costs and profits.
 3.2 Why Companies Design New Products and
Services

• Major reasons include:

– To be competitive (obtain a competitive advantage)
– To increase business growth and profits
– To avoid downsizing with development of new products
– To improve product quality
– To achieve cost reductions in factors of production
– To address customers’ specific requirements
 3.3 Factors to be considered when designing a product
1. Legal Considerations:
– Product liability
The responsibility a manufacturer has for any injuries or
damages caused by as faulty product
Some of the concomitant/associated costs
– Litigation (Lawsuit)
– Legal and insurance costs
– Settlement costs
– Costly product recalls
– Reputation effects
-Uniform Commercial Code (UCC)
Under the UCC, products carry an implication of
merchantability and fitness
 Cont…
2. Ethics
 Designers are often under pressure to:
– Speed up the design process
– Cut costs
 These pressures force trade-off decisions
– What if a product has bugs?
• Release/ announce the product and risk damage to your
reputation.
• Work out the bugs and forego revenue

3. Human Factors
 Safety and Liability/ responsibility
 Adding new features
 Good? Bad?
 Cont…

4. Cultural Factors
 Customers come from all over the world.
 Different designs for different countries or regions.
– Language
– Foodstuff
– Dressing
– Religion
– Holidays and celebrations
– Other?
 Localization
 Cont…

5. Environmental Factors: Sustainability

– Using resources in ways that do not harm ecological systems
that support OUR existence
• Key aspects of designing for sustainability
1. Cradle-to-grave assessment (Life-Cycle assessment)
2. End-of-life programs
3. The 3-Rs:
• Reduction of costs and materials used
• Re-using parts of returned products
• Recycling
• Note: Closed Loop Supply Chain Management is recommended.
 Cont…

• 1. Cradle-to-Grave Assessment
– Life-Cycle Assessment (LCA)
– The assessment of the environmental impact of a
product or service throughout its useful life
focuses on such factors as:
Global warming
Smog/pollution formation
Oxygen depletion
Solid waste generation
• LCA procedures are part of the ISO 14000
environmental management procedures
 Cont…

2. End-of-Life (EOL) Programs

 EOL programs deal with products (business and

consumer) that have reached the end of their useful lives.

 The goal of such programs is to reduce the dumping or

incineration / burning of products (e.g., electronics)
which may pose hazards to the environment
 3. The 3Rs: Reduce: Costs and Materials
• Value analysis
– Examination of the function of parts and materials in an
effort to reduce the cost and/or improve the performance of a
product
– Common questions used in value analysis
Is the item necessary; does it have value; could it be
eliminated?
Are there alternative sources for the item?
Could another material, part, or service be used instead?
Can two or more parts be combined?
Can specifications be less stringent to save time or money?
Do suppliers/providers have suggestions for improvements?
Can packaging be improved or made less costly?
 Re-Use: Remanufacturing
• Remanufacturing
– Refurbishing used products by replacing worn-out or defective
components
• Can be performed by the original manufacturer or another
company
– Reasons to remanufacture:
Remanufactured products can be sold for about 50% of the
cost of a new product
The process requires mostly unskilled and semi-skilled
workers
In the global market, European lawmakers are increasingly
requiring manufacturers to take back used products
– Design for disassembly (DFD)
• Designing a product to that used products can be easily
taken apart
 Recycle
– Recovering materials for future use
• Applies to manufactured parts
• Also applies to materials used during production
– Why recycle?
• Cost savings
• Environmental concerns
• Environmental regulations
– Companies doing business in the EU must show that a
specified proportion of their products are recyclable
– Design for recycling (DFR)
• Product design that takes into account the ability to
disassemble a used product to recover the recyclable
parts
 3.4 The Product Design Process

• The following steps are most commonly followed in the

development of product designs:
1. Idea generation
2. Product screening
3. Preliminary design and testing, and
4. Final design
Diagrammatic representation of product design process
1. Idea Development (Product Concept)

• All product designs begin with an idea.

• To remain competitive, companies must be innovative and
bring out new products regularly.
• Product ideas can be generated from different sources in
different ways.

• New product ideas may come from inside and outside sources.
• Outside sources: Customers, Foreign product, Competitive
products and Advertising, distributing agencies.

• Inside sources: Sales personnel, Marketing research, Research

and development, Company executives.
 Cont…

The most common sources include:

 From inside the company (sales people, R&D, …)
 Customers
 Competitors
 Unscrupulous
 Suppliers and distributors
 Cont…
 From inside the company
– This includes getting ideas from the salespeople, research and
development, etc.
– a company’s R & D department, whose role is to develop
product and process innovation.
 Customers
– Customers are the first sources of ideas, the driving force in
the design of goods and services.
– Studying customer buying patterns, tastes and preferences
using tools such as customer surveys and focus groups.
– From warranty claims, customer complaints, failures, trial
users
 Cont…

 Competitors
• There are three ways in which companies may generate
product design ideas from competitors
a. Benchmarking: refers to finding the best-in-class
company/process, measuring the performance of your
product or process against theirs.
b. Reverse engineering: refers to carefully dismantling
and inspecting a competitor’s product to look for
design features that can be incorporated into your
own product.
 Cont…

c. Perceptual maps: comparing customer perceptions of a

company’s products with competitors’ products.

Perceptual Map of Breakfast Cereals in terms of taste and nutrition

 Cont…
 Unscrupulous/dishonest firms even engage in “industrial
intelligence” to steal ideas before they are marketed.
-This has prompted the more innovative firms to establish tight
security over their new product development activities.
 Suppliers and distributors
– To remain competitive, companies should build strong
relationships with their suppliers and distributors.
– Suppliers participate in a program called Early supplier
involvement (ESI), which involves them in the early stages
of product design.
 2.Product screening (Performance specifications)

• This stage involves evaluating the product idea to determine its

likelihood of success.
• The product screening team evaluates the idea according to the
needs of the major business functions.
• In their evaluation, executives from each functional area may
explore issues on the requirements of operations, finance and
marketing functions
 Cont…

They may explore issues such as:

 Operations:
What are the production needs of the proposed new product and how do they
match our existing resources? Will we need new facilities and equipment? Do we
have the labor skills to make the product? Can the material for production be
easily obtained?
 Marketing :
What is the potential size of the market for the proposed new product? How much
effort will be needed to develop a market for the product and what is the long-term
product potential?
 Finance:
The production of a new product is a financial investment like any other.
What are the proposed new products’ financial potential, cost, and return on
investment?

 Approximately 80% of ideas do not make it pass this stage.

3. Preliminary Design and Testing (Prototype)

• At this stage, design engineers translate general performance

specifications into technical specifications.
– Form and functional designs are created
– Prototypes are built and tested.
– Changes are made based on test results
– The process of revising, rebuilding a prototype, and
testing continues.
• Testing (mini-launching) should not be carried out for too
long or too short period.
4. Final Design (Specific Design Specifications)

• The final specifications are then translated into specific

processing instructions to manufacture the product.

• This includes:
– Selecting tooling and equipment
– Outlining jobs that need to be performed
– Identifying specific materials needed and suppliers that
will be used,
– Prepare job descriptions
– Determine operation & assembly order
 3.5 Other Issues in Product and Service Design

A. Product/service life cycles

B. How much standardization
C. Designing for mass customization
D. Product/service reliability
E. Remanufacturing and etc…
A. Product Life Cycle (PLC)

• Most products go through a series of stages of changing

product demand called the product life cycle.
• There are typically four stages of the product life cycle:

1) Introduction
The early stages of PLC
2) Growth
3) Maturity
The latter stages of PLC
4) Decline
 Cont…

1) Introduction stage
– Products are not well defined, and neither is their
market.
– Customers are uncertain about the product.
– High expenses for research, product development,
process modification & enhancement and supplier
development.
2) Growth stage
– Both product and market continue to be refined.
– Product design begins to stabilize, sales start raising
– Effective forecasting of capacity becomes necessary
 Cont…

3) Maturity stage
– There are usually no design changes
– The product is predictable and so is its market.
– High volume, innovative production may be needed
4) Decline stage
– A decline in demand because of new technology, better
product design, or market saturation.
– Unless product makes a special contribution to the
organization, must plan to terminate offering.
Stages of the product life cycle

A few products, such as paper, pencils, nails, milk, sugar, and flour, do not
go through a life cycle.
 Cont…

• Understanding the stages of the PLC is important for

product design purposes.
• It helps:
– to know at which stage to focus on design changes.
– to estimate future profitability a new product relative to
the initial investment.
 B. Standardization

• Standardization
– Extent to which there is an absence of variety in a product,
service, or process
• Products are made in large quantities of identical items
• Every customer or item processed receives essentially the
same service
 C. Mass customization

• Mass customization
– A strategy of producing basically standardized goods or
services, but incorporating some degree of customization in
the final product or service
– Facilitating Techniques
1. Delayed differentiation:
– The process of producing, but not quite completing, a product
or service until customer preferences are known
– It is a postponement tactic
• Produce a piece of furniture, but do not stain it; the
customer chooses the stain
2. Modular design:
 D. Product/service reliability, failure and normal operating
conditions

 Reliability: The ability of a product, part, or system to perform its

intended function under a prescribed set of conditions

 Failure: Situation in which a product, part, or system does not

perform as intended

 Normal operating conditions: The set of conditions under which

an item’s reliability is specified. These can include:
 load temperature and humidity ranges as well as operating
procedures and maintenance schedules.
 Failure of user to attention these conditions often results in
premature failure of parts or complete systems.
 E. Remanufacturing

• Remanufacturing uses components of old products in the

production of new ones.
• Remanufacturing provides:
– Environmental benefits: through recycling and eliminating
waste.
– Cost benefits: remanufactured products can be half the price of
their new counterparts.
• Remanufacturing is quite popular in the production of
computers, televisions, and automobiles.
 3. 6 Product Designing Techniques

• There are four min product designing techniques that need to

be considered during the product design stage.

• These are :
1. Robust design
2. Concurrent engineering
2.1. Design for manufacturability (DFM)
2.2. Design for environment
2.3. Design for disassembly
3. Modular Design
4. Computer aided design (CAD) and
 1. Robust Design

 A design that results in products or services that can function

over a broad range of conditions.
 A robust product is to be designed that is insensitive to
environmental factors either in manufacturing or in use.
 The more the robust a product is, the less likely that it will fail
due to a change in the environment in which it is used or in
which it perform.
 Pertains to product as well as process design.
 2. Concurrent Engineering (CE)
 It is an approach that brings many people together in the early phase of
product design in order to simultaneously design the product and the
process.
 In its narrowest sense, concurrent engineering means bringing design
and manufacturing engineering people together early in the design phase
to simultaneously develop the product and the processes for creating the
product.

 More recently, this concept has been enlarged to include

manufacturing personnel (e.g., materials specialists) and
marketing and purchasing personnel in loosely integrated,
cross-functional teams.
 In addition, the views of suppliers and customers are frequently
sought.
 Cont…

 Problems with the old approach (over-the-wall approach)

 it is very inefficient and costly
 takes a longer amount of time
 does not create a team atmosphere
Whereas, CE is efficient, time saving and it creates team
spirit.
Breaking Down Barriers to Effective Design
 Cont…

• Major considerations while designing a product through

concurrent engineering are:
Design for Manufacture: Considering the effectiveness with which an item
can be made during initial development.
Design for procurement: Considering component parts supply during initial
periods of product design
Design for environment: Considering environmental impact of product
design from extraction of raw materials to their disposal.
Design for Robustness : considering the ability of a product to withstand
variations in environmental/operational conditions.
Design for Assembly: The ease which product component parts can be
dismantled or disassembled.

Lets discus in detail about these major considerations as follows:

 Cont…
Design for Manufacture (DFM)

• DFM represents the ability to design a product for easy &

economical production
• It involves incorporating production design early in the
design phase
 Benefits
– Improves quality and reduces costs
– Shortens time to design and manufacture
• In general, DFM is a series of guidelines that we should
follow to produce a product easily and profitably.
 Cont…

Guidelines for DFM

– Minimize the number of parts and sub-assemblies..
– Use standard parts when possible and repeatable processes
– Design parts for many uses, and use modular design.
– Design for ease of assembly, minimal handling, and proper
presentation.
– Allow for efficient and adequate testing and replacement of
parts.
 Cont…

DFM guidelines focus on two issues:

1.Design simplification and Value Analysis
 Design simplification: reducing the number of parts and
features of the product whenever possible.
 Value Analysis (Engineering): was developed by General
Electric in 1947 to eliminate unnecessary features and
functions in product designs.
 It also helps to assess the environmental impact of
materials and operations via cross functional design teams
Design simplification: Example
 Cont…
2. Design standardization
– It refers to the use of common and interchangeable parts.
– Using interchangeable parts enabled to achieve:
• Greater variety of products
• Fewer inventory
• Significantly lower cost and
• Greater flexibility.

Design for Assembly (DFA):

Design that focuses on:
 Reducing the number of parts in a product and
 The sequence of assembly operations.
 Cont…

Design for Environment:

It broadens the concepts of design for manufacturability even
further to include the environmental impact of a design, from the
extraction of raw materials to their disposals.
 Design safe and environmentally sound (eg. recyclable)
products.
 Design from recycled material
 Use materials which can be recycled
 Minimize packaging
 Minimize material & energy
used during manufacture, consumption & disposal.
 Cont…

Design for Procurement:

 It places explicit considerations of component parts
supply during the initial development of product- service
design.
 What is the supply base for the required component
parts?
 What is the capacity of that supply base?
 3. Modular design
• It is a form of standardization in which component parts are
subdivided into modules that are easily replaced or
interchanged.
• Modular design makes it possible to have relatively high product
variety and low component variety at the same time.
• The basic idea is to develop a series of basic product components
(or modules) which can be assembled in to a large number of
different products.
• To the customer, it appears there are a great number of different
products.
• To operations, there are only a limited number of basic
components.
 Cont…

Advantages
• easier diagnosis of failures and easier replacement
• simplification of manufacturing and assembly
• flexibility to both production and marketing
Disadvantage
• Limited ability to repair a faulty module; the entire module
must be scrapped
 4. Computer Aided Design (CAD)

 Computer-aided design (CAD) is the use of computers to

interactively design products and prepare engineering
documentation.
 CAD uses computer graphics for product design.
 CAD uses three-dimensional drawing to save time and money by
shortening development cycles for virtually all products.
 i.e., the designer can create drawings and view them from any
angle on a display monitor.
 The speed and ease with which sophisticated designs can be
manipulated, analyzed, and modified with CAD makes review of
numerous options possible before final commitments are made.
 Cont…

 The designer can modify an existing design or create a new

one on a monitor by means of a light pen, a keyboard, a
joystick, or a similar device.

 The heart of CAD is a powerful desktop computer and graphics

software that allow a designer to manipulate geometric shapes.

 Faster development, better products, and accurate flow of

information to other departments all contribute to a
tremendous payoff for CAD.
Cont…
 Cont…

Advantages
 Increases productivity of designers, 3 to 10 times
 Creates a database for manufacturing information on
product specifications
 Provides possibility of engineering and cost analysis on
proposed designs
 CAD that includes finite element analysis (FEA) can
significantly reduce time to market
 Enables developers to perform simulations that aid in the
design, analysis, and commercialization of new products.
 3.7 Quality Function Deployment (QFD)

 Quality function deployment (QFD) refers to both (1) determining what

will satisfy the customer and (2) translating those customer desires into the
target design.
 It is also known as “House of Quality”
 A critical aspect of building quality into a product is to ensure that
the product design meets customer expectations.
 QFD involves the need to translate customers’ everyday
language into specific technical requirements.
 It is a useful approach for integrating the voice of the customer
into the product development process.
 It is also useful in enhancing communication between different
functional areas.
Quality Function Deployment Process

Steps

Importance
5
• Identify customer wants
Correlation matrix
• Identify how the product
will satisfy customer 3
wants Design
• Relate customer wants requirements
to product hows
• Identify relationships 1 4 2
between the firm’s hows Customer Relationship Competitive
• Develop importance requirements matrix assessment
ratings
• Evaluate competing
products 6 Target values
House of Quality: Example

Correlation:
X Strong positive
Positive
X X
X X X Negative
* Strong negative
Im

Accoust. Trans.
Energy needed
Energy needed
po Engineering

resistance
Competitive evaluation

Door seal
to close door
rta Characteristics

to open door
Check force on
nce

level ground
X = Us

resistance
Window
Customer to A = Comp. A
Cu B = Comp. B

Water
st. (5 is best)
Requirements 1 2 3 4 5
X AB
Easy to close 7
Stays open on a hill 5 X AB

Easy to open 3 XAB

A XB
Doesn’t leak in rain 3
No road noise 2 X A B

Importance weighting 10 6 6 9 2 3 Relationships:

level to 7.5 ft/lb

Reduce energy
Reduce energy

Strong = 9
Reduce force
current level

current level
current level
to 7.5 ft/lb.
Medium = 3
Target values
Maintain

Maintain
Maintain
Small = 1
to 9 lb.

5 B
BA BA
B B BXA X
Technical evaluation 4
3
A
X
A X
(5 is best) 2 X
X A
1
Benefits of QFD

 Promotes better understanding of customer demands

 Promotes better understanding of design interactions
 Involves manufacturing in the design process
 Breaks down barriers between functions and departments
by enhancing communication between functional areas.
 Provides documentation of the design process
 II. Service Design

 Most of the issues discussed in product design are applicable to

service organizations.
 However, there are issues unique to services that pose
special challenges for service design.
 These are related to the two unique features of service firms.
– Intangibility of the product: For services to be successful,
the customer experience needs to meet or even exceed their
expectations.
– High degree of customer contact: For services to succeed
customers’ contact needs to be a positive experience.
 Cont…
• Characteristics of A Well-Designed Service System is:
 Consistent with firm’s strategic focus
 User friendly
 Robust if variability is a factor.
 Easy to sustain
 Effectively linked between front & back office
 Cost effective
 Having a single, unifying theme, such as convenience or speed.
 Having design features and checks that will ensure service that is
reliable and of high quality.
The service Design Process

• The steps in the service design process are explained below:

1. The service concept
– It defines the target customer and the desired customer
experience.
– It also defines how the service is different from others.
 Service blueprinting: a method used in to conceptualize a
service design or to describe and analyze a proposed service.
2. Service package
– The service package consists of a mixture of physical items,
sensual benefits, and psychological benefits.
 Cont…

• For instance for a restaurant service:

– Physical items: consist of the facility, food, drinks,
tableware, napkins, and other touchable commodities.
– Sensual benefits: include the taste and aroma/ smell of the
food and the sights and sounds of the people.
– Psychological benefits: are rest and relaxation, comfort,
status, and a sense of well-being.
– Effective service design defines all components of a service
package
The service design process: Diagrammatic presentation
 Cont…

3. Service specifications
– At this stage, service specifications are developed for
performance, design, and delivery.
a. Performance specifications: outline expectations and
requirements for general and specific customers.
b. Design specifications: describe the service in sufficient detail
for the desired service experience.
• Consist of activities to be performed, skill requirements and
guidelines for service providers, cost and time estimates, facility
layout and location issues.
 Cont…

c. Delivery specifications: outline the steps required in the

work process.
• It includes the work schedule, deliverables, and the
locations at which the work is to be performed.

4. Service Delivery
– Rendering the service to the customer in the specified
premise.
 Factors to be Considered While Designing Services

A) Customer Contact
 Customer contact for service operation can be high or low.
 If customer contact is high, the customer can disrupt the production process by
demanding certain types of services or special treatment.
 Therefore, high customer contact leads to inefficient production process
because of high customer interference.
 A high efficient system is the one with no customer contact, where the order can
be processed away from the customer.
 Therefore, the service designer should identify customer contact points and
reduce contacts where appropriate.
 Cont…

B) Service Recovery:
 Service recovery is the ability to quickly compensate for the failure
and restore if possible.
C) Cycle of Service
 The service provided must be considered not only in a light of a
single service encounter but in terms of the entire cycle of service
delivery.
 Every service is delivered in a cycle of services beginning with the
point of initial customer contact and proceeding through steps or
stages until the entire service is completed.
 Cont…

D) Service Guarantee
 Many companies are now beginning to offer service guarantees as
a way to ensure its satisfactory delivery to the customer.
 Service guarantee help the service provider to build confidences of
the customers towards their service quality level.
 A service guaranty is like its counterpart the product guarantee,
except for one thing:
 The customer cannot return the service if he/she does not like it.
 Guidelines for Successful Service Design

1. Define the service package in detail. A service

blueprint may be helpful for this.
2. Focus on the operation from the customer’s
perspective.
3. Consider the image that the service package will
present both to customers and to prospective
customers.
4. Recognize that designers’ familiarity with the system
may give them a quite different perspective than that
of the customer, and take steps to overcome this.
 Cont…
5. Make sure that managers are involved and will support
the design once it is implemented.
6. Define quality for both tangibles and intangibles.
7. Make sure that recruitment, training, and reward
policies are consistent with service expectations.
8. Establish procedures to handle both predictable and
unpredictable events.
9. Establish systems to monitor, maintain, and improve
service.
 Cont…

A simple service blueprint for a restaurant

3.2. Process Selection

• A process is a group of related tasks with specific inputs and

outputs.
• Processes exist to create value for the customer, the
shareholder, or society.
• Process selection represents the act of deciding on the way
production of goods or services will be organized.
• Process design defines what tasks need to be done and how
they are to be coordinated among functions, people, and
organizations.
 Cont…

• Processes are planned, analyzed, and redesigned as required

by changes in strategy and emerging technology.

• Process strategy is an organization’s overall approach for

physically producing goods and providing services.

• A firm’s process strategy defines its vertical integration, capital
intensity, process flexibility, and customer involvement.
 Cont…

 Vertical integration: The extent to which the firm controls

the production process.
 Capital intensity: The mix of capital (i.e., equipment,
automation) and labor resources used.
 Process flexibility: The ease with which resources can be
adjusted in response to changes in demand, technology,
products or services, and resource availability.
 Customer involvement: The role of the customer in the
production process.
 Cont…

• Process planning determines how a product will be produced

or a service provided.
• Production planning:
– decides which components will be made in-house and
which will be purchased from a supplier,
– selects processes, and develops and documents the
specifications for manufacture and delivery
Types of Production Processes

• Production processes can be classified into five classes:

1. Project process
2. Job-shop process Intermittent Operations
Processes used to produce a variety of
3. Batch process products in lower volumes.

4. Mass production
Repetitive Operations
5. Continuous process Processes used to produce one or a few
standardized products in high volume.
1.Project process

• Project is a type of process used to make a one-at-a-time

product exactly to customer specifications.
• It is used when there is high customization and low product
volume.
• Customer is usually involved in deciding on the design of the
product.
• Projects take long time to complete, and involve a huge amount
of investment.
• Examples: construction, shipbuilding, aircraft building, and
interior design.
2.Job-shop (Jobbing) process

• Job-shop process is characterized by:

– High variety of products and low volume.
– Use of general purpose machines.
– Highly skilled operators who can take up each job as a
challenge because of uniqueness.
– Large inventory of materials, tools, parts.
– Detailed planning is essential to sequence the requirements
of each product.
• In jobbing processes each product has to share the operation’s
resources with many others.
 Cont…

• Jobbing processes produce more and usually smaller items than

project processes.
• However, like project processes, the degree of repetition is low.
 Examples:

Specialist toolmakers, furniture restorers,

bespoke tailors, and the printer who
produces tickets for the local social event,
the artistic bakers hired to bake a
wedding cake to specifications, medical
procedures, creation of artwork.
 3.Batch process

• Batch processes are used to make small quantities of products in

groups or batches based on customer orders or product
specifications.
• The volumes of each product produced are still small.
• The degree of customization is still high.
– However, it does not have quite the degree of jobbing possesses.
• Batch processes can be fairly repetitive, mostly if the batches are
large.
 Examples
– Bakeries, education, and printing shops, special frozen foods
 Cont…

• Batch Production is characterized by:

– Products are typically made to order, volume is low, and
high demand fluctuation.
– Shorter production runs.
– Plant and machinery are flexible [in the way they can
handle many different batches].
– Manufacturing costs are lower as compared to project and
job shop process.
4.Mass production (Line Process)

• These are designed to make a large volume of a standardized

product for mass production.
– also known as flow shops, flow lines, or assembly lines.
• With line processes the product that is produced is made in high
volume with little or no customization.
• The machines are arranged in a line or product layout.
 Example:
Think of a typical assembly line
that produces everything from cars,
computers, television sets, shoes,
candy bars, even food items.
 Cont…

• Mass Production is characterized by:

– Standardization of product and process sequence.
– Dedicated special purpose machines with higher production
capacities and output rates.
– Large volume of products and stable product demand.
– Shorter cycle time of production and Lower WIP inventory.
– Material flow is continuous and without any back tracking.
– Production planning and control is easy.
– Material handling can be completely automatic.
5.Continuous Process

• It operates continually to produce very high volume of fully

standardized commodity products.
• The system is highly automated and is typically in operation
continuously 24 hours a day.
• The products are usually in continual rather than discrete
units, such as liquid or gas.
• The Facilities are usually highly
capital intensive and automated.
• Examples
Oil refineries, water treatment
plants, and certain paint facilities.
 Cont…

• Continuous process is characterized by:

– Dedicated plant and equipment with zero flexibility.
– Material handling is fully automated.
– Process follows a predetermined sequence of operations.
– Components cannot be readily identified with final product.
– Planning and scheduling is a routine action.
– They usually have single input and limited variety of
outputs.
Types of processes based on product volume and standardization

Dear students For more understanding look the following figures

Product-Process Grid
Intermittent VS. Repetitive Facility Layouts
Types of Service Processes

• Service Processes can be classified in to three major classes.

1. Professional services
2. Service shops
3. Mass services
1.Professional services

• Theses are high-contact organizations where customers spend a

considerable time in the service process.
• Such services provide high levels of customization:
– i.e. the service process being highly adaptable in order to meet
individual customer needs.
• A great deal of staff time is spent in the front office.
• Contact staff are given considerable discretion in servicing
customers.
• Professional services are people-based rather than equipment-
based.
 Cont…

• Emphasis is placed on the process (how the service is delivered)

rather than the ‘product’ (what is delivered).
• There is frequent contact between the service provider and the
client.
 Examples:
– Management consultants, lawyers’ practices, architects,
doctors’ surgeries, auditors, health and safety inspectors and
some computer field service operations.
2.Service shops

• Theses are characterized by moderate levels of customer

contact, customization, volumes of customers and staff
discretion.
• Service is provided via mixes of front- and back-office
activities.
• The front-office may give advise customers on the service, but
back-office operations look after purchasing and administration.
 Examples
– Banks, high-street shops, holiday tour operators, car rental
companies, schools, most restaurants, hotels & travel agents.
3.Mass services
• Have many customer transactions, involving limited contact
time and little customization.
• Such services may be equipment-based and ‘product’-oriented,
with most value added in the back office.
• Relatively little judgement is applied by front-office staff.
• Staff are likely to have a closely defined division of labour and to
follow set procedures.
• Examples:
– Supermarkets, national rail network, airport, libraries,
telecommunications services, television stations, the police
service etc.