Post on 01-Apr-2015
Management in Organisations
Process Design
What is process design ?
The differentiation between manufacturing and service design.
When is process design required ?
1
Topics to be coveredTopics to be covered
The Service package / Service Triangle
Developing a service delivery system
Manufacturing process alternatives and their evaluating criteria.
The effects of product life cycles on process design.
A new or substantially modified product or service is being offered.
Competitive priorities have changed.
Demand or volume for a product is changing.
Current performance is inadequate.
Competitors are gaining a competitive advantage either by process or technology change.
The cost or availability of inputs has changed.
Process design or redesign decisions must be made when:
Process design is the selection of
Schroeder, section 3 - page 165
However, these must be consistent with
the positioning strategy
Manufacturing Process
Service Operations Design
Choice of Technology
Process Flow Analysis
Layout of Facilities
Seven distinctive
characteristics of service operations
Seven distinctive characteristics of service
operations
Customer as a participant in the service process
Presence of the customer
Customer as an active player
Simultaneous production and
consumption
Precludes inventory
Service capacity
Quality problems
Time perishable resource
Lost opportunity
Variable demand options
a) Smooth demand
b) Adjust Service Capacity
c) Allow customers to wait
Site location dictated by customer
Scales of economy
Control of services
Labour intensiveness
Skill turnover
Moments of truth
Intangibility
Difficulty in measuring output
Ideas and concepts
Service charters
Process Design
Services
Design Design
Execution
The Service Triangle
ServiceStrategy
Customer
WorkforceSystem
Adapted from Abrecht and Zemke 1985
ServiceStrategy
Customer
WorkforceSystemExecution
Adapted from Abrecht and Zemke 1985
PromotionProductNeeds
Job DesignRewards SystemStaff Skills& Image
FacilityLocationLayout ImageCapacityFront Back-Room Split
The Service Triangle
The Service Package (orBundle) consists of the following 4 features:
1 Supporting Facility.
2 Facilitating goods.
3 Sensual benefits or Explicit services
4 Psychological benefits or Implicit services
Supporting Facility
Architectural appropriateness
Interior decorating
Facility layout
Supporting equipment
Facilitating goods
Consistency
Quantity
Selection
Explicit services
Training of service personnel
Comprehensiveness
Consistency
Availability
Implicit services
Attitude of service personnel
Privacy and security
convenience
Atmosphere
Waiting
Status
Sense of well-being
Accumulation of information
Design of conceptual
alternatives
Design and testing of
prototypes
Final design and
specification
The major steps in service design are:
Va
riet
yProcess types in Services
High
Low
VolumeLow High
ProfessionalService
Service Shop
Mass Services
Process Design
Manufacturing
Project / Jobbing
Batch / Intermittent
Flow / Line
There are three main types of manufacturing process :
Process types in ManufacturingProcess types in Manufacturing
JobbingJobbing
FlowFlow
BatchBatch
HighHigh
LowLow HighHighVolumesVolumes
VVaarriieettyy
The Product/Process Matrix
Jumbled flow
(job shop)
Disconnected line flow(batch)
Connected line flow
(assembly line)
Continuous flow)P
RO
CE
SS
CH
AR
AC
TE
RIS
TIC
S
Low volumeLow standardization
INCREASING VARIETY
Low volumeMultiple products
Higher volumeFew major products
High volumeHigh standardization
INCREASING VOLUME
PRODUCT CHARACTERISTICS
Project
Jobbing
Batch
Mass
Continuous
Batch
£
Volume
Least Cost Envelope
Schroeder, figure 6.5 - page 178
Project
Line
Least CostEnvelope
Capital Intensity
Organisational
implications
Product or service
Implications
Resource flexibility
Whether manufacturing or mass service situations, operations managers must address 4 common facets of process design
Task - 10 mins
Identify one Manufacturing and one Service example. Outline their process characteristics highlighting the relevant Capital, Organisational, Product/Service, and Resource Flexibility implications
Vertical integration
A Identify examples of forward and backward integration
B The oil Industry is heavily integrated vertically.
What are the possible reasons for this?
Product Life Cycle
Emphasis of operations during thelife cycle