OPERATIONS MANAGEMENT

Lecture 11

Process Selection
Process Selection: Process selection refers to deciding on the way production of goods or services will be organized. Process selection occurs as a matter of course when new production or services are being planned. However, it also occurs periodically due to technological changes in products or services in products or equipment, as well as competitive pressures.

Process Selection
Three primary questions bear on process selection: 1. How much variety in products or services will the system need to handle? 2. What degree of equipment flexibility will be needed? 3. What is the expected volume of output? Process Types: There are five basic process types: 1. Job Shop 2. Batch 3. Repetitive 4. Continuous 5. Project

Process Types
1. Job Shop: Operates on relatively small scale Used when a low volume is needed High variety of goods/services High flexibility using general purpose equipment Skilled workers Examples: Dress designing, Medical services by doctors etc.

Process Types
2. Batch: Used when moderate volume of goods or services is desired Processing at regular intervals Equipment need not to be flexible The skill level of workers need not be too high Examples: Bakeries, movie theaters, paints, ice creams magazines etc.

Process Types
3. Repetitive: Higher volumes of more standardized goods or services The standardized processing means only slight flexibility of equipment needed Skill of workers is generally low Examples: Automatic car wash, assembly lines etc.

Process Types
4. Continuous: When a very high volume of nondiscrete goods are required Highly standardized output is desired No need for equipment flexibility Workers skill requirements can range from low to high Examples: Petroleum products, steel, sugar flour etc.

Product and Service Processes

Variety Job Shop Batch Repetitive Continuous Low Volume
Emergency Rooms Commercial bakery Automatic Car Wash Petroleum Refinery

High