POLYTECHNICUNIVERSITY OF THE PHILIPPINES

PROCESS DESIGN

Jamaica A. Bumacod
Operations Management and Total Quality Management
Bachelor of Science in Management Accounting 2-2

October 13, 2023

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TABLE OF CONTENTS

PAGE

6.3. Volume – Variety effect on Process Design…………………………………

6.3.1. How do volume and variety affect process design?....................
6.3.2. What is the relationship between volume and variety?..............
6.2. Process Mapping……………………………………………………………..
6.4.1. How are processes designed in detail?....................................
References………………………………………………………………………….

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6.3. VOLUME - VARIETY EFFECT ON PROCESS DESIGN

6.3.1. How do volume and variety affect process design?

In process design, volume and variety are the two important factors that can
significantly impact the design activities in various fields such as manufacturing, data
management and information systems. The design of any process should be
governed by the volume and variety it is required to produce. High volume operation
processes often produce a narrow variety of products/services while high variety
processes often result in high products and services variety.

6.3.2. What is the relationship between volume and variety?

Based on the article published by Li (2018), volume and variety usually come
together in a reversed way in a single operation process. If we consider this volume –
variety spectrum as a continuum from high volume/low variety to low volume/high
variety, we can place a process in a certain point in this continuum based on its
volume/variety characteristics. Understanding this inverse correlation between
volume and variety can help operation managers understanding the nature of
manufacturing operation. According to the position of a process on this volume/variety
spectrum, an overall design of the operation process can be determined. This is
called Process Types.

Process Types

Project Processes
 A one-time event, such as construction of an apartment building,
implementation of a new ERP system, or writing a book, would all be
considered a project type of process. Each of these projects have a high
degree of customization, substantial use of resources, and a complex
set of related activities. There is only a single output at the end of the
project.

Jobbing Processes
 Jobbing Processes deal with very high variety and low volumes.
Whereas in project processes each product has resources devoted

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more or less exclusively to it, however, in jobbing processes each

product has to share the operation’s resources with many others. The
resources of the operation will process a series of products but,
although all the products will require the same kind of attention, each
will differ in its exact needs. Examples of jobbing processes include
many precision engineers such as specialist toolmakers, furniture
restores and the printer who produces tickets for the local social event.
Jobbing processes produce more and usually smaller items than project
processes but, like project processes, the degree of repetition is low.
Most jobs will probably be ‘one-offs’.

Batch processes
 Batch process can often look jobbing processes, but batch does not
have quite the degree of variety associated with jobbing. As the name
implies, each time batch processes produce a product they produce
more than one. Each part of the operation has periods when it is
repeating itself, at least while the ‘batch’ is being processed. The size of
the batch could be just two or three, in which case the batch process
would differ little from jobbing, especially if each batch is a totally novel
product. Conversely, if the batches are large, and especially if the
products are familiar to the operation, batch processes can be fairly
repitive. Because of this, the batch type of process can be found over a
wider range of volume and variety levels than other process types.
Examples of batch processes include machine tool manufacturing, the
production of some special gourmet frozen foods, the manufacture of
most of the component parts which go into mass-produced assemblies
such as automobiles, and the production of most clothing.

Mass Processes
 Mass processes are those which produce goods in high volume and
relatively narrow variety – narrow, that is, in terms of the fundamentals
of the product design. An automobile plant, for example, might produce
several thousand variants of car if every option of engine size, colour,
extra equipment, etc. is taken into account. Yet essentially is is a mass
operation because the different variants of its product do not affect the
basic process of production. The activities in the automobile plant, like
all mass operations, are essentially repetitive and largely predictable.
Examples of mass processes include automobile plant, most consumer
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durable manufacturers such as a television plant, most of processes

such as a frozen pizza manufacturer, a beer bottling plant and CD
production.

Continuous Processes
 Continuous processes are one step beyond mass processes insomuch as they
operate at even higher volume and often have lower variety. They also usually
operate for far longer periods of time. Sometimes they are literarily continuous
in that their products are inseparable, being produced in an endless flow. They
may even be continuous in that the operation must supply the products without
a break. Continuous processes are often associated with relatively inflexible,
capital-intensive technologies with highly predictable flow. Examples of
continuous processes include petrochemical refineries, electricity utilities, steel
making and some paper making.

Service Process Types

Professional Services
 Professional services are defined as high-contact organizations where
customers spend a considerable time in the service process. Such services
provide high levels of customization, the service process being highly
adoptable in order to meet individual customer needs. A great deal of staff time
is spent in the front office and contact staff are given considerable discretion in
servicing customers. The amount of time and attention provided for each
customer probably means that the ratio of staff to customers is high.
Professional services tend to be people-based rather than equipment-based,
with emphasis placed on the process (how the service is delivered) rather than
the ‘product’ (what is delivered). Professional services include management
consultants, e.g. Andersen Consulting, lawyer’s practices, architects, doctors’
surgeries, auditors, health and safety inspectors and some computer field
service operations.

Mass Services
 Mass services have many customer transactions, involving limited contact time
and little customization. Such services are often predominantly equipment-
based and ‘product’ oriented, with most value added in the back office and
relatively little judgement applied by front-office staff. The mainly non-
professional staff are likely to have closely defined division of labor and to

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follow set procedures set procedures. Mass services include supermarkets, a

national rail network, e.g. airport, telecommunications service, library,
television station, the police service, and the enquiry desk at a utility.

Service Shops
 Service shops are characterized by levels of customer contact, customization,
volumes of customers and staff discretion which position them between the
extremes of professional and mass services. Service is provided by means of
mixes of front- and back-office activities, people and equipment, and of
product/processes emphasis. Service shops include banks, high street shops,
holiday tour operators, car rental companies, schools, most restaurants, hotels
and travel agents.

The Product Process Matrix (PPM)

In both manufacturing and service operations, because the different process
types overlap, organizations often have a choice of what type of process to employ.
This choice will have consequences to the operation, especially in terms of its cost
and flexibility.

Deviation, Cost and Flexibility

The classic representation of how cost and flexibility vary with process choice
comes from Professors Hayes and Wheelwright of Harvard University. They represent
process choices on a matrix, with the volume – variety as one dimension, and what
we have called process types as the other. The figure above shows their matrix
adapted to fit with the terminology used here. Most operations stick to the ‘natural’
diagonal of the matrix, and few, if any, operations are found in the extreme corner of
the matrix. However, because there is some overlap between the various process
types, operations might be positioned slightly off the diagonal (Pycraft et al.,1997, p.
129).
The diagonal of the matrix shown in the figure above represent a ‘natural’
lowest cost positioned for an operation. Operations which are on the right of the
‘natural’ diagonal have process which would normally be associated with lower
volumes and higher variety. This means that their processes are likely to be more
flexible that seems to be warranted by their actual volume – variety position. Because
of this, their costs are likely to be higher than they would be with a process which was
closer to the diagonal. Conversely, operations who are on the left of the diagonal
have adopted processes which would normally be used in a higher volume and lower
variety situation. Their processes will therefore be ‘over-standardized’ and probably

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too inflexible for their volume - variety position. This lack of flexibility can also lead to
high costs because the process will not be able to change from one activity to anther
as efficiently as a more flexible process.

Process Performance Metrics

Process Performance Metrics are measurements of different process
characteristics that tell us how process is performing. Just as Accountants and
Finance Managers use financial metrics, operations managers use process
performance metrics to determine how process is performing and how it is changing
over time.

6.4. Process Mapping

6.4.1. How are processes designed in detail?
Processes are designed initially by breaking down into their individual
activities. Often common symbols are used to represent types of activities. The
sequence of activities in a process is then indicated by the sequence of symbols
representing activities. This is called “Process Mapping”.
Process Map

 A fundamental and highly underrated business tool that facilitates engagement.

 Highly visual tool with graphical representations of steps in a business
process.
 Uses universal shapes or symbols.

Benefits of Process Mapping

 Visualizes the process and aligns the key stakeholders.
 Identifies potential areas for business risk.
 Can be used to create department or individual performance metrics.
 Uncovers areas of waste
 Can be used as a training, education or induction tool.

Why do we need Process Maps?

 Pictures are better than words, conveys clearer messaging.
 Aids the agreement on specific areas for improvement.

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 Facilitates quicker decision making, fact-based rather than subjective.

 Facilitates easier auditing or checking.
 Aids change management.

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REFERENCES
Gadam, S. (2023, April 7). The product process matrix (PPM):Definition, examples
and template. https://blog.logrocket.com/product-management/product-process-
matrix-ppm-definition-examples-template/?fbclid=IwAR1q2x3i0FDA-
UQpBGrICQ3nd923Mw7rN5rTsZ7hsnjKGLbtClyD0JLJUFA

Li, M. (2018, June 27). Operation Managers Need To Know – The volume/variety
spectrum. https://www.linkedin.com/pulse/operation-managers-need-know-the-
volumevariety-spectrum-li

Pycraft, M. et al., (1997). Operations Management: Process Design.

https://books.google.com.ph/books?
id=v6tVJ43nuD0C&printsec=frontcover&num=100&fbclid=IwAR0F8L7_7WCndUJQzr
SqQnS-Wq_7gNOaFiH1v2---ez-Oqt_98XeeklLv44#v=onepage&q&f=false

Process Flow Charts https://www.youtube.com/watch?v=wLkvvqypq1E

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