Process Selection & Design

By
Hemant Pundle
Manufacturing Process
 Combination of Operations & Activities
(planning, Organizing, control) employed to
create goods & services is known as
Manufacturing Process.
 Selection of Manufacturing process is a long-
term decision. Very expensive to make
change later.
 System selected must give desired output,
required quality & be cost effective.
 Trade off between above. E.g. Doll manufactured
by plastic molding or home-made.
Effect of Volume/ Variety

Project

Jobbing

Batch Production

Mass Production

Process/ Continuous

One off Many/ Continuous

Characteristics of Manufacturing Systems

 Project:
 Example: Building, Road Construction.
 Definite beginning, end date.
 Non-uniform requirement of resources.
 Fixed position layout.
 Scheduling & control most important. (Use
of PERT/CPM).
Characteristics of Manufacturing Systems

 Jobbing Production:
 Example: Ship building, Aircraft
Manufacture, Tailoring, Bike repair.
 Small production run, Discontinuous flow of
material, Long manufacturing cycle time.
 General purpose m/cs.
 Highly skilled labour.
 Highly competent supervisors.
Characteristics of Manufacturing Systems

 Batch Production:
 Examples: Pharmaceuticals, Paint, Heavy
Vehicles.
 Queuing, Large WIP, Short run.
 General purpose m/cs.
 Skilled labor.
 Need to have production planning.
Characteristics of Manufacturing Systems
 Mass Production:
 Examples: Automobile Conveyor Line,
Plastic molding.
 Continuous flow of material, Limited WIP,
Short manufacture cycle time, Mechanized
material handling.
 Lesser flexibility.
 Special Purpose M/cs (SPM).
 Low labour skills.
Characteristics of Manufacturing Systems

 Flow Production:
 Examples: Cement plant, Refinery, Steel
plant, Electricity generation.
 Special purpose plant with built-in controls.
 Negligible WIP.
 Limited production planning.
 Low skill labour.
 Process specialist as supervisors.
 Characteristics of Processes
Type of Product Specialized Product Machine Labour Variable
Equipment Variety setup
Process Volume Skills cost
Frequency

Job Shop
Batch
Flow
Shop
 Characteristics of Processes
Type of Product Specialized Product Machine Labour Variable
Equipment Variety setup
Process Volume Skills cost
Frequency

Job Shop Low. No Large Not High High

Batch of Applicable
one
Batch Medium No Medium Yes High Medium
Flow Large Yes Low No Specializ Low
Shop ed
 Selection of Manufacturing Process

Continuous
Production
Cost Mass Production

Batch
Production
Job Production

Project

Volume
Service Process Design
Distinctive Characteristics
of Services
 Customer participation
 Simultaneity
 Perishability
 Intangibility
 Heterogeneity
Customer Participation
 The customer is more involved in the
delivery of services than products
 Providing services means that you must
pay attention to the service facility
 Customers can play an
integral role in the
delivery of the service
Simultaneity
 Services are consumed simultaneously
(as they are provided)
 There is no inventory
Perishability
 A service is a perishable commodity
(can’t be saved)
 The full utilization of service capacity is
a management concern
 Demand for services is often cyclical
Intangibility
 Services are not tangible things
 Difficult to patent
 Customer relies on reputation since
there is no product to touch
or try out
Heterogeneity
 There are variations of service between
customers
 Direct customer-employee contact
System Elements -
Structural
 Delivery system
 Facility design
 Location
 Capacity planning
System Elements -
Managerial
 Service encounter
 Quality
 Managing capacity and demand
 Information
Service Blueprint
 A diagram of the service process
showing activities, flows, physical
evidence, and lines of visibility and
interaction
Service Blue Print - Components
 1. Customer Actions: Actions actually performed by the customer. This step
assumes huge
importance in self-service sectors.
 2. Onstage Actions: Interactions with employees who are actually visible to
the customer.
Separated from the above step using a “line of interaction”.
 3. Backstage Actions: Interactions where the customer does not see the
employee serving him.
It is separated from the above step by the “line of visibility”.
 4. Support Processes: These are the activities performed by employees who
do not interact
with customers at all. It is separated from the above step by an “internal line of
interaction”.
 5. Physical Evidence: These are the tangibles that a customer comes in
contact with and which
influence a customer’s perception of quality of service.
Service Blueprint
Service Blueprint of Airline Travel
Service-System Design Matrix
Exhibit
Exhibit7.6
7.6
Degree of customer/server contact
Buffered Permeable Reactive
High core (none) system (some) system (much) Low
Face-to-face
total
customization
Face-to-face
Sales loose specs Production
Face-to-face
Opportunity Efficiency
tight specs
Phone
Internet & Contact
on-site
Mail contacttechnology

Low High
 Moments of Truth
 Concept created by Jan Carlzon of
Scandinavian Airways
 Critical moments between the
customer and the organization that
determine customer satisfaction
 There may be many of these
moments
 These are opportunities to gain or
lose business
Unconditional Service
Guarantee
 Unconditional
 Easy to understand and
communicate
 Meaningful
 Easy to invoke
 Easy to collect
Service Guarantees as Design Drivers

 Recent research suggests:

 Any guarantee is better than no
guarantee
 Involve the customer as well as
employees in the design
 Avoid complexity or legalistic language
 Do not quibble or wriggle when a
customer invokes a guarantee
 Make it clear that you are happy for
customers to invoke the guarantee
Service Recovery
 Letters of apology
 Replacement Product/Complimentary
service