Process Selection and Capacity Planning
Process Selection and Capacity Planning
CHAPTER: 4 4
Process
Process Selection
Selection and
and
Capacity
Capacity Planning
Planning
Process Design
Selection
Process:
Is any part of an organization which takes a set of
input resources which are then used to transform
something into outputs of products or services.
It is a group of related tasks with specific inputs
and outputs.
Process design defines what tasks need to be done
and how they are to be coordinated among
functions, people, and organizations. 2
Types of Processes
All processes can be grouped into two broad
categories: intermittent operations and repetitive
operations.
Intermittent operations:
Capable of producing a large variety of
product designs in relatively low volumes
Repetitive operations:
Capable of producing one (or a few)
standardized designs in very high volumes
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Project process – make a one-at-a-time product exactly to
customer specifications
Examples, construction, shipbuilding, medical procedures, creation of
artwork, custom tailoring. Customer is usually involved on the design of
the product
Batch process – small quantities of product in groups or
batches based on customer orders or specifications
They are also known as job shops.
Examples can be seen in bakeries, education, and printing shops.
The difference is in the volume and degree of customization.
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Line processes are designed to produce a large volume
of a standardized product for mass production.
They are also known as flow shops, flow lines, or assembly
lines.
produced in high volume with little or no customization.
cars, computers, television sets, shoes, even food items.
Continuous processes operate continually to produce a
very high volume of a fully standardized product .
E.g oil refineries, water treatment plants, and certain paint
facilities.
The products produced are usually in continual rather than
discrete units, such as liquid or gas.
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Continuum of Process
Types
Repetitive
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Differences between
Intermittent and repetitive
Operations
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Cont’d
Type of operation is directly related to
product and service strategy
Three basic strategies include
Make-to- stock ; in anticipation of demand
Assemble-to-order; built from standard
components on order
add options according to customer
specifications
Make-to-order; produce to customer
specification at time of order
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Product and Service Strategy
Options
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Linking Design and Process
Selection
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Capacity Planning
Capacity is defined as the ability to achieve, store or
produce.
For an organization, capacity would be the ability of a
conditions
A bakery can make 30 custom cakes
(realistic) conditions
On the average this bakery can make
actual output 28
Utilization effective (100%) (100%) 140%
effective capacity 20
actual output 28
Utilization design (100%) (100%) 93%
design capacity 30
The current utilization is only slightly below its design
capacity and considerably above its effective capacity
The bakery can only operate at this level for a short period of
time
Capacity consideration
Economies of Scale: Where the cost per unit of output
drops as volume of output increases
average cost of a unit produced is reduced when
as volume increases
Often caused by congestion (overwhelming the