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Operations, Supply Chain & IT

(4LO510)
Week 2: Process Design and
Operation

Paul Dale

Sensitivity: Internal
Learning objectives
Describe the concept of process design and process
technology.
Explain the link between process design and
operations performance objectives.
Evaluate the concept of process design & process
technology.
Analyse relationship between process design and the
concept of four Vs.

Sensitivity: Internal
Definitions

Take a minute – write down what the following words means to


you (one sentence only).
Design means……………………………………………
Process means………………………………………….
Process Design means………………………………
Process Technology means………………………………

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Design

We will use the following as a working definition:

“To Design” refers to the process of originating and developing a plan for a product, service
or process.

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Process

We will use the following as a working definition:

A Process can occur in any part of an organization - which


takes a set of input resources – and the Process is the
activity that actually transforms the inputs into outputs.

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Process Design

The activity of determining the workflow, equipment needs,


and implementation requirements for a particular process.

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What are the objectives of process
design?

1.Prioritise Better Outcomes: Instead of designing the process and then testing to see if the customer is
satisfied, the process should be designed with the customer in mind from the outset. This will identify areas
where the process could be improved and will also allow you to see where there may be potential bottlenecks.
2.Improve efficiency: Reduces g the amount of time that is required to complete each task or by reducing the
number of resources that are needed. This will minimise the time required to train new staff and will also help to
reduce the number of errors that are made.
3.Dodge The Disorder: Ensure the process is simple and easy to understand. This will help to prevent errors
from being made and will also make it easier to train new staff.
4.Ensure Accountability: Each step in the process should be clearly defined and that there should be a
transparent chain of responsibility.
This will help to ensure that each stage in the process is carried out correctly and will also help to prevent
mistakes from being made.
5.Simplify Collaboration: It should facilitate cooperation and collaboration among the different stakeholders, to
ensure that the process can meet the needs of all the different parties involved and will also help to prevent
misunderstandings from occurring.

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Process design planning

Process design planning is creating a plan for the production


process, with a goal to create a process that is efficient and
effective in producing the desired product )Wang, et al.,2009).
Factors that influences process design planning:
Product type,
Materials needed,
Equipment available, and
The workforce.

Sensitivity: Internal
Steps for process design

1. Determining The Requirement: Ensure there is clear understanding of the


product that needs to be produced, the materials required, the equipment
available, and the workforce.
2. Creating The Plan: Create a plan for the production process, that is efficient and
effective in producing the desired product.
3. Building Team: Build a team of experts who can help with the implementation of
the process design, and provide input and feedback on the process design.
4. Implementing The Plan: Set up the production process, testing the process, and
making any necessary adjustments
5. Monitoring: This is to ensure that process is running smoothly and effectively,
allowing flexibility to make changes to the process as needed to improve its
efficiency and effectiveness.
6. Audit: This ensures that the process meets the requirements of delivering
smooth running of the operations and delivery desired outputs.

Sensitivity: Internal
Product and process Design
Operation’s
performance

Operations Operations
strategy strategy

Operations
management Output
Input Design Improvement
resources products and Customers
services
Process design Planning and
Supply network design control
Layout
and flow

Process People,
technology jobs and
organisation

Product/
service design
Sensitivity: Internal
Five Performance Objectives

Quality Being RIGHT

Speed Being FAST

Competitiveness
Dependability Being ON TIME

Flexibility Being ABLE TO CHANGE

Cost Being PRODUCTIVE

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Operations Performance Objectives vs Process Objectives

The Operations Performance Objectives (Cost, quality, speed,


dependability, flexibility) are therefore the drivers of “Process
Objectives”

Each of the Performance Objectives therefore: “individually will


have their own Process Objectives”

Therefore the design of a process must be compatible with the


Performance Objective.

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Nature and Purpose of Design

• Design is a critical element of the transformation process

• Products, services and the processes (systems) which produce


them all have to be designed – they don’t just happen

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Products and Services Design

• Why is good product and service design important?

• What are the stages in product and service design?

• Why should product and service design and process design


be considered interactively?

• Why appropriate process technology is important?

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Design

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Evolution of mobile phones

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The Design Activity

Designing the Designing


product or the process
service

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

Sensitivity: Internal
Overlap of Activities

Design of Design of Design of


Design
the product the process the
of the
service process

In manufacturing operations In most service operations, the


overlapping the activities of overlap between service and
product and process design is process design is implicit in the
beneficial nature of service

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Product & Service design are - interrelated
to its “process design”

Designing the Designing the


Product or Processes that
Service Produce the Product
or Service

Processes should be
Products and services designed so they can
should be designed in create all products
such a way that they and services which
can be created the operation is likely
effectively to introduce

Decisions taken during the design of the product or service will


have an impact on the process that produces them and vice
versa
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Design activity as an input - transformation -
output process
Transformed resources, e.g.
• Market information
• Technical information
• Time information
Transformation Process
(Design Process)
Product/
Also measured by service
performance objectives: concept
Inputs • Quality
Outputs
• Speed Product/ Product/
Transforming resources, • Dependability service service
e.g. • Flexibility and package process
• Test and design • Cost
equipment
• Design and technical
staff

Sensitivity: Internal
Outputs of a Design Process

A concept the understanding of the nature, use and value of


the service or product;

the group of ‘component’ products and services


A package that provide those benefits defined in the
concept;

the way in which the component products and


A process services will be created and delivered.

Sensitivity: Internal
The stages of product / service design

Evaluation and Prototyping


Concept Concept Preliminary
improvement and final
generation screening design
design

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Concept Generation

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Design Funnel- reducing options until the final
design is reached
Large number of design
options
CONCEPT
Choice and
evaluation
‘Screens’
Uncertainty
regarding the final
design

TIME
Certainty
regarding the
final design
One design which is launched
FINAL DESIGN
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SPECIFICATON
Concept screening…

Feasibility – What investment


How difficult is both managerial and
financial will be
it? needed?

The What return Overall


criteria for Acceptability – in terms of benefits evaluation
screening How worthwhile is to the operation will of the
concepts it? it give?
concept

Vulnerability – What risks


What could go do we run if things
wrong? go wrong?

Sensitivity: Internal
Process Design

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.

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Process Types

• Process types in Manufacturing

• Process types in Services

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Process Types in Manufacturing
• Projects

• Jobbing

• Batch

• Mass (Line)

• Continuous

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Projects

One-off, complex, large scale, high work content

Specially made, every one customized

Quality, Cost, Time

Many different skills have to be coordinated.

E.g. Large sporting events, bridges

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Jobbing

Very small quantities: ‘one-offs’, or only a few required

Specially made. High variety, low repetition, all customized

Skill requirements are usually very broad

Skilled jobber, or team, complete whole product.

E.g. Machine components, specialised surgeries

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Batch Production

Higher volumes and lower variety

Standard products, repeating demand. But can make specials

Specialized, narrower skills

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

E.g. Bread, tutorials

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Mass (Production line)

Higher volumes, lower variety

Standard, repeat products (‘runners’)

Low and/or narrow skills

No set-ups, or almost instantaneous ones.

E.g. Cars, army induction


Sensitivity: Internal
Continuous Production
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.

E.g. Water, electricity


Sensitivity: Internal
Re-visiting the Four Vs

Low Volume High


High

High Variety Low

High Variation in demand Low

High Visibility Low

Sensitivity: Internal
Process Types in Manufacturing

High
Diverse/ Project
Intermittent
complex

Jobbing

Variety
Process Process Batch
tasks flow

Mass

Low Contin-
Repeated Continuous uous

Low Volume High

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Process Types in Services

• Professional Services

• Service Shops

• Mass Services

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Professional Service

High levels of customer (client) contact.

Clients spend a considerable time in


the service process.

High levels of customization with service processes being


highly adaptable.

Contact staff are given high levels of discretion in


servicing customers.

People-based rather than equipment-based.


Sensitivity: Internal
Service Shops

Medium levels of volumes of customers

Medium, or mixed, levels of customer contact

Medium, or mixed, levels of customization

Medium, or mixed, levels of staff discretion.

Sensitivity: Internal
Mass Service

High levels of volumes of customers

Low to medium levels of customer contact

Low, or mixed, levels of customization

Low, or mixed, levels of staff discretion.

Sensitivity: Internal
Process Types in Services

High
Diverse/ Professional
Intermittent
complex service

Service shop

Variety
Process Process
tasks flow

Mass service
Repeated/
Low
Continuous
divided
Low Volume High

Sensitivity: Internal
Process Technology

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What is Process Technology?

Process technologies are “the machines, equipment, and


devices that create and/or deliver products and services”.

Technology is required as a support function to provide the


competitive advantage for an organisation.

Production Technology
Service Technology

Sensitivity: Internal
Types of Process Technologies

Material processing
Manual technology
machine tools

Mail Baggage
processing handling
system Electronic systems
point of sale
systems
Milking machines
Automated
(cows are
scheduling Global positioning customers too!)
system system

Information processing Customer processing


Sensitivity: Internal technology technology
Production Technology
Machine Technology
Automatic Identification System and Radio Frequency
identification (RFID)
Process Control
Vision Systems
Robots
Automated Storage and Retrieval systems
Automated Guided Vehicles
Flexible Manufacturing systems
Computer Integrated Manufacturing

Sensitivity: Internal
Technology in Service

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Different process technologies are appropriate for
different volume–variety combinations
High Variety Low
Scale/ Flexibility
Automation
scalability
Low Volume High

Low Low Flexible/


unconstrained Manual, general-
purpose, small-
scale, flexible
technology

Automated,
dedicated, large-
scale, relatively
Inflexible/ inflexible
High High technology
constrained

Sensitivity: Internal
Understanding & evaluating process technologies
• Does the technology fit the processing task?

• What does the technology do that is different from other similar


technologies?

• What benefits does using the technology give to the operation?

• Feasibility, Acceptability, Vulnerability


• Is the implementation of the technology financially and operationally
feasible?
• Does the technology give an acceptable financial return?
• What are the constraints or risks of using the technology?

Sensitivity: Internal
Process design
Summary
The Operations Performance Objectives Supply network design
(Cost, quality, speed, dependability, flexibility)
Layout
are therefore the drivers of “Process and flow
Objectives
Process People,
Process design is the activity of determining the technology jobs and
organisation
workflow, equipment needs, and
implementation requirements for a particular Product/
service design
process
Therefore the design of a process must be
compatible with the Performance Objective
Process technologies are “the machines,
equipment, and devices that create and/or deliver
products and services”.

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Further Reading
Slack, N., Brandon-Jones, A. and Johnston, R.,
Operations Management 7th Edition.
• Part Two: DESIGN
• 4 Process design – page 96
• 5 Innovation and design in services and products – page 125

Wang L, Keshavarzmanesh S, Feng HY, Buchal RO.


Assembly process planning and its future in
collaborative manufacturing: a review. The
International Journal of Advanced Manufacturing
Technology. 2009 Mar 1;41(1-2):132-44.

Sensitivity: Internal

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