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Chapter 4
Process design
Source: Joe Schwarz, www.joyrides.com
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Process design
Process design
Operations
strategy
Supply network design
Layout
and flow
Process
technology
Design
Job
design
Product/service
design
Operations
management
Improvement
Planning and
control
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Nature and purpose of the design activity
Products, services and the processes which
produce them all have to be designed
Decisions taken during the design of a product or
service will have an impact on the decisions
taken during the design of the process which
produces those products or services, and vice
versa
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Design of products / services and design of processes
are interrelated and should be treated together
Designing the
product or service
Products and services
should be designed in
such a way that they
can be created
effectively
Designing the
process
Product / service
design has an
impact on the
process design and
vice versa
Processes should be
designed so they can
create all products
and services which
the operation is likely
to introduce
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Design of
the Product
Design of
the Process
In manufacturing operations
overlapping the activities of
product and process design
is beneficial
Design of
the Service
Design of
the Process
In most service operations
the overlap between service
and process design is
implicit in the nature of
service
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Designing processes
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
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Process
flow
Diverse/
complex
Intermittent
High
Repeated/
divided
Continuous
Variety
Process
tasks
Low
Manufacturing process types
Low
Volume
High
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Project processes
One-off, complex, large-scale ‘products’ with
high work content
Specially made, every one ‘customized’
Defined start and finish: time, quality and cost
objectives
Many different skills have to be coordinated
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
A project process describes the whole process
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Jobbing processes
Very small quantities: ‘one-offs’, or only a few
required
Specially made: high variety, low repetition,
‘strangers’, every one ‘customized’
Skill requirements are usually very broad
Skilled jobber, or team, completes whole
product
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Preparing photolithography materials on a jobbing basis
with a typical process map
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Batch processes
Higher volumes and lower variety than for
jobbing
Standard products, repeating demand. But can
make specials
Specialized, narrower skills
Set-ups (changeovers) at each stage of
production
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
A batch process in a kitchen
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Mass (line) processes
Higher volumes than batch
Standard, repeat products (‘runners’)
Low and/or narrow skills
No set-ups, or almost instantaneous ones
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
A mass process – a packing process
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
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
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Part of a continuous process
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Process
flow
Diverse/
complex
Intermittent
High
Repeated/
divided
Continuous
Variety
Process
tasks
Low
Service process types
Low
Volume
High
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
A professional service –
Consultants planning how best to help their client
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
A service shop – This health club offers some variety
within a standard set of facilities and processes
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
A mass service – This call centre can handle
a very high volume of customer enquiries because it
standardizes its process
Source: Royal Bank of Scotland Group
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Deviating from the ‘natural’ diagonal on the product–process
matrix has consequences for cost and flexibility
Manufacturing
operations
process types
Variety
None
Project
Jobbing
Batch
Service
operations
process types
Volume
Less process
flexibility than
is needed so
high cost
More
process
flexibility
than is
needed so
high cost
Professional
service
Service
shop
Mass
Continuous
Mass
service
None
The ‘natural’ line of fit of process to
volume/variety characteristics
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Deviating from the ‘natural’ diagonal on the product–process
matrix has consequences for cost and flexibility
Volume
Variety
None
Old
process
Old
process,
new
product
New
process,
new
product
None
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Flow (layout), technology and job design are all influenced
by process positioning
Flow
Technology
Volume
Jobs
Variety
Unorganized
Little /
general
Varied / high
discretion
None
Custom
furniture
maker
Machine
tool maker
Automobile
factory
Predictable
Specialist
Routine / low
discretion
None
Petrochemical
refinery
Manufacturing
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Flow (layout), technology and job design are all influenced
by process positioning
Flow
Technology
Volume
Jobs
Variety
Unorganized
Little /
general
Varied / high
discretion
None
Investment
banking
Customer
service
branch
Bank call
centre
Predictable
Specialist
Routine / low
discretion
None
Credit card
processing
Services
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
The Service Package (or Bundle) is a concept used to alayse
and design services and consists of the following 4 features:
1
Supporting Facility.
2
Facilitating goods.
3
Sensual benefits or Explicit services
4
Psychological benefits or Implicit services
Service Management
th
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Fitzsimmonds
and Fitzsimmonds, Service Management 4 Edition, 2004, McGraw Hill. (p22)
Supporting Facility
 Architectural appropriateness

Interior decorating

Facility layout

Supporting equipment
Service Management
th
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Fitzsimmonds
and Fitzsimmonds, Service Management 4 Edition, 2004, McGraw Hill. (p22)
Facilitating goods
 Consistency

Quantity

Selection
Service Management
th
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Fitzsimmonds
and Fitzsimmonds, Service Management 4 Edition, 2004, McGraw Hill. (p22)
Explicit services
 Training of service personnel

Comprehensiveness

Consistency

Availability
Service Management
th
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Fitzsimmonds
and Fitzsimmonds, Service Management 4 Edition, 2004, McGraw Hill. (p22)
Implicit services
 Attitude of service personnel
 Privacy and security
 convenience
 Atmosphere
 Waiting
 Status
 Sense of well-being
Service Management
th
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Fitzsimmonds
and Fitzsimmonds, Service Management 4 Edition, 2004, McGraw Hill. (p22)