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Process Selection

Refers to deciding on the way production of goods or services will be organized. Processes convert inputs to outputs; they are the core of operations management.

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Debz Ponlaon
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41 views

Process Selection

Refers to deciding on the way production of goods or services will be organized. Processes convert inputs to outputs; they are the core of operations management.

Uploaded by

Debz Ponlaon
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 6

Pages 1-4

Process selection- refers to deciding on the way production of goods or services will be organized.
Processes convert inputs to outputs; they are the core of operations management.

Process design -is an important operational decision that affects the cost of operations, customer
services, and sustainability.

Process choice decisions-firms generally produce either in response to customer orders and demand or
anticipation of them.

This leads to 3 major types of goods and services: Custom, option-oriented and standard.

Product life cycle is characterization of product growth. Maturity and decline overtime.

Four major types of processes are used to produce goods and services:

1 Projects- are large-scale, customized initiatives that consists of many smaller tasks and activities that
must be coordinated and completed to finish on time and within budget.

2 Job shop processes- are organized around particular parts types of general-purpose equipment that
are flexible and capable of customizing work for individual customers.

3 Flow shop processes- are organized around a fixed sequence of activities and process steps, such as an
assembly line, to produce a limited variety of similar goods and services.

4 Continues flow process- create highly standardized goods and services, usually around the clock in
very high volumes.

The product-process matrix is a model that describes the alignment of process choice with the
characteristics of the manufactured good.

The service- positioning matrix- The service positioning matrix shows how the desired nature of the
customer's service encounter activity sequence translates into a recommended service system design.

Pages 5-8

Process Selection

It refers to the way an organization chooses to produce its goods or services.


PROCESS DESIGN

It is the process of defining all of the company's product characteristics.

VARIOUS ASPECTS IN PRODUCT DESIGN

Design for function

Design for making

Design for selling


PROCESS ANALYSIS

It is the documentation and detailed understanding of how work is performed and how it can be
redesigned.

1. IDENTIFY OPPORTUNITY
2. DEFINE SCOPE
3. DOCUMENT PROCESS
4. EVALUATE PERFORMANCE
5. REDESIGN PROCESS
6. IMPLEMENT CHANGES

A SYSTEMATIC APPROACH TO PROCESS ANALYSIS

 SUGGESTION SYSTEM
 DESIGN TEAM
 METRICS
 FLOWCHARTS
 SERVICE BLUEPRINT

Pages 9-12

(1ST SLIDE)
PROCESS DESIGN AND RESOURCE UTILIZATION

(2ND SLIDE)

PROCESS DESIGN- is at the heart of operations management (OM). It is the process of creating and
improving systems that convert inputs into outputs. Process design involves understanding how work is
done within an organisation and then designing and implementing ways to improve it.

RESOURCE UTILIZATION- is the measure of how much of your available resources you are currently
using. It can help you to plan how to utilize your resources more effectively to ensure that your
organization is being as productive as possible.

(3RD SLIDE)

UTILIZATION- is the fraction of time a workstation or individual is busy over the long run.

TWO WAYS OF COMPUTING RESOURCE UTILIZATION:

(4TH SLIDE)

EXAMPLE:

The resource utilization for Work Activity #3. Assuming only one chef and two ovens, is computed as:

(20 orders/hour)

(5 orders/hour)

1chef = 4.0, or 400 percent


(5TH SLIDE)

THROUGHPUT- is the number of units or tasks that are completed per unit time from a process.

BOTTLENECK- is the work activity that effectively limits the throughput of the entire process.

FLOW TIME (CYCLE TIME) is the average time it takes to complete one cycle of a process.

LITTLE'S LAW- is a simple equation that explains the relationship among flow time (T), throughput (R),
and work-in-process (WIP).

Formula:

[WIP= R X T]

Work-in-process = throughput x flow time

(6TH SLIDE)

EXAMPLE OF BOTTLENECK:
EXAMPLE OF THROUGHPUT:

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