Part Two

Design
Chapter 4
Process design
 Slack et al.’s model of operations management
Operations
strategy

Topics covered
in this chapter Process design Operations
Design management Improvement
Supply network design

Layout
and flow Planning
and control

Process People, jobs

technology and
organisation

Product/service
design

Figure 4.1 Process design activities in operations management are covered in this chapter.
Key questions What is process design?

What objectives should process design have?

How does volume and variety affect process design?

How are processes designed in detail?

What are the effects of process variability?

Nature and purpose of the design activity –
operations principle
The design of processes cannot be done independently of the services
and/or products that they create.

Decisions taken during the design of a product or service will have an

impact on the decisions taken during the design of the process that
produces those products or services and vice versa.

The design of any process should be judged on its quality, speed,

dependability, flexibility and cost performance.
What Does Product & Service Design Do?

1. Translate customer wants and needs into product and service requirements
2. Refine existing products and services
3. Develop new products and services
4. Formulate quality goals
5. Formulate cost targets
6. Construct and test prototypes
7. Document specifications
8. Translate product and service specifications into process specifications

Involve Inter-functional Collaboration

4-5
Key Questions

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

4-6
Key Questions (contd.)

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

4-7
 Designing Designing
the product the process
or service

Product/
service Processes should
Products and services design has be designed so
should be designed in an impact they can create all
such a way that they on the the products and
can be created process services the
effectively. design and operation is likely
vice versa to introduce.

Figure 4.2 The design of products/services and processes are interrelated and should be treated together
 Operations
performance Typical process design objectives
objective
Provide appropriate resources, capable of achieving the specification of
Quality product of services
Error-free processing
Minimum throughput time
Speed
Output rate appropriate for demand
Provide dependable process resources
Dependability
Reliable process output timing and volume
Provide resources with an appropriate range of capabilities
Flexibility Change easily between processing states (what, how or how much is being
processed?)
Appropriate capacity to meet demand
Eliminate process waste in terms of,
 excess capacity
Cost  excess process capability
 in-process delays
 in-process errors
 inappropriate process inputs

Table 4.1 The impact of performance objectives on design

 Operations
performance Some benefits of good process design
objective
Products and service produced ‘on-specification’
Quality
Less recycling and wasted effort within the process
Short customer waiting time
Speed
Low in-process inventory
On-time deliveries of products and services
Dependability
Less disruption, confusion and rescheduling within the process

Ability to process a wide range of products and services

Low cost/fast product and service change
Flexibility
Low cost/fast volume and timing changes
Ability to cope with unexpected events (e.g. supply or a processing failure)

Low processing costs

Cost Low resource costs (capital costs)
Low delay/inventory costs (working capital costs)

Table 4.1 The impact of performance objectives on design (continued)

 Environmentally sensitive process design
Some fundamental issues:

● The sources of inputs to a product or service. (Will they damage rainforests?

use up scarce minerals? exploit the poor or use child labour?)

● Quantities and sources of energy consumed in the process. (Do plastic

beverage bottles use more energy than glass ones? Should waste heat be
recovered and used in fish farming?)

● The amounts and type of waste material that are created in the
manufacturing processes. (Can this waste be recycled efficiently, or must it be
burnt or buried in landfill sites?)

● The life of the product itself. If a product has a long useful life will it consume
fewer resources than a short-life product?

● The end-of-life of the product. (Will the redundant product be difficult to dispose
of in an environmentally friendly way?)
 Process types
There are different ‘process types’.

Process types are defined by the volume and variety of ‘items’ they
process.

Process types go by different names depending on whether they produce

products or services.
 High Variety Low

Diverse/
Project
complex Intermittent

Jobbing

Process Process Batch

tasks flow

Mass

Contin-
Repeated/ Continuous uous
divided
Low Volume High

Figure 4.3 Different process types imply different volume–variety characteristics for the process.
 High Variety Low

Diverse/
complex Intermittent Professional
service

Service
shop
Process Process
tasks flow

Mass
service
Repeated/ Continuous
divided
Low Volume High

Figure 4.3 Different process types imply different volume–variety characteristics for the process (continued).
 Project processes
One-off, complex, large scale, high work content ‘products’.

Specially made, ‘every one customised’.

Defined start and finish: time, quality and cost objectives.

Many different skills have to be coordinated.

Examples: Major construction site. Each item building is different and

poses different challenges to those running the process
 Jobbing processes
Very small quantities: ‘one-offs’, or only a few required.

Specially made. High variety, low repetition.

Skill requirements are usually very broad.

Skilled jobber, or team, complete whole product.

Customer furniture making, each series of items has its own

specific needs.
 Batch processes
Higher volumes and lower variety than for jobbing.

Specialised, narrower skills.

Standard products, repeating demand. But can make specials.

Set-ups (changeovers) at each stage of production.

In restaurant, food is being prepared in batches. All batches go through the

same sequence (preparation, cooking and storage) but each batch is of a
different dish.
 Mass processes
Higher volumes than batch.

Standard, repeat products (‘runners’).

Low and/or narrow skills.

No set-ups or almost instantaneous ones.

The automobile plant is everyone’s idea of a mass process.

Each product is almost (but not quite) the same and made in large quantities.
 Continuous processes
Extremely high volumes and low variety: often single product.

Standard, repeat products (‘runners’).

Highly capital-intensive and automated.

Few changeovers required.

Difficult and expensive to start and stop the process.

Continuous water treatment plant almost never stops.

(It only stops for maintenance) and performs only one task,
(filtering impurities). Often we only notice the process when it goes wrong.
 Professional services
High levels of customer (client) contact.

Clients spend a considerable time in the service process.

High levels of customisation with service processes being highly adaptable.

Contact staff are given high levels of discretion in servicing customers.

People-based rather than equipment-based.

Examples, consultants.
 Service shops
Medium levels of volumes of customers.

Medium, or mixed, levels of customer contact.

Medium, or mixed, levels of customisation.

Medium, or mixed, levels of staff discretion.

Example: Health club

 Mass services
High levels of volumes of customers.

Low to medium levels of customer contact.

Low, or mixed, levels of customisation.

Low, or mixed, levels of staff discretion

Example, call centre for a medical aid. Deals with many customers
and enquiries daily.
 The product–process matrix
Manufacturin Service Low volume High volume
g operations operations Product/service
process process High variety characteristics Low variety
types types
Project Professional
service
More process
flexibility than is
Jobbing needed, so high
cost

Service
Batch shop

Less process
Mass flexibility than is
needed, so high
cost
Mass
Continuous service

Figure 4.4 Deviating from the ‘natural’ diagonal on the product–process matrix has consequences
for cost and flexibility.
 Product–process matrix – water meter example

Low volume Product/service High volume

High variety characteristics Low variety

Original service New service, old

with appropriate A B process, so excess
process process flexibility

Process characteristics
characteristics and high cost

New service with

The ‘natural’ new process having
C
diagonal or ‘line appropriate process
of fit’ characteristics

Figure 4.5 A product–process matrix with process positions from the water meter example
 Process mapping symbols
Process mapping symbols derived Process mapping symbols
from scientific management derived from systems analysis

Operation (an activity Beginning or end of

that directly adds process
value)
Inspection (a check of Activity
some sort)

Transport (a movement Input or output from the

of some thing) process

Delay (a wait, e.g. for materials) Direction of flow

Storage (deliberate Decision (exercising discretion)

storage, as opposed to a
delay)
 Process map – ‘enquire to delivery’ at stage lighting firm

Send
Supplier
customer Call Supplier’s equipment
guide customer to store

N N

Customer Y Y Confirm Stored

wants Search Find supplier ? to equip.
search? supplier

Check Y Reserve on
Customer Supply from Kit wagon to Assemble
availability availability
request stock ? file store kit
file

Deliver to Pack for N Needs Check Kit to

customer delivery attention? equipment workshop

Repair

Figure 4.7 Process map for ‘enquire to delivery’ process at stage lighting operation
 ‘Supply and install’ process mapped at three levels

The operation of The outline process of supplying and

supplying and installing lighting equipment
installing lighting ‘Enquire ‘Install ‘Collect
equipment to and test’ and
delivery’ check’

File
failure Inform
note customer
N

Y
Rectify in
time ? Rectify

N
To Y Routine Y
Safety Pass Job Return
customer Compliant? Install control
check check? sign-off to base
site check
N

The detailed process of Y

Rectify in
N
Call for
Rectify
‘Install and test’ activity time ? help

Figure 4.8 The ‘supply and install’ operations process mapped at three levels.
 ‘Collect and check’ process – levels of process visibility

Call Very high

Check it Agree customer
worked ok
Worked
report to agree
visibility
ok?
N terms
Y Line of interaction

Take out High

equipment
visibility

Medium
To site To base visibility
Line of visibility

Prepare Amend Back office –

report usage
records low visibility
N

Check and Did it Equipment to

clean work ok? store
equipment Y

Figure 4.9 The ‘collect and check’ process mapped to show different levels of process visibility.
 PAST TEST/EXAM QUESTIONS ON THIS
CHAPTER
• You are required to list and explain what the typical design objectives are.
You explanation should also include the benefits of each objective (see
page 77).

• No one type of process design is best for all types of requirement in all
circumstances – different products or services with different volume-variety
positions require different processes (see page 79).

You are required to list and explain the different manufacturing process types.
You are required to provide appropriate examples.
You are required to list and explain the different service process types. You are
required to provide appropriate examples.