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The The Process Flow Process Flow Spectrum Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria ment Science for Decision Making, 1e © 2012 Pearson Prentice-Hall, Inc. Philip A Pearson Prentice-Hall, Inc. Philip A
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Page 1: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

The The Process Flow Process Flow SpectrumSpectrum

Spectrum Overview

Intermittent Flow Operations

Continuous Flow Operations

Repetitive Flow Operations

Selection Criteria

Applied Management Science for Decision Making, 1e © 2012 Pearson Prentice-Hall, Inc. Philip A. Vaccaro , PhD Pearson Prentice-Hall, Inc. Philip A. Vaccaro , PhD

Page 2: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

The Process SpectrumThe Process Spectrum

WorkerPacedLineFlow

BatchFlow

MachinePaced

Line Flow

IntermittentFlow

Operations

( Job Shop )

ContinuousFlow

Operations

(Mass Production)

ALL MANUFACTURING AND SERVICE OPERATIONS ARE

ENCOMPASSED BY THE PROCESS SPECTRUM

RAW MATERIALS RAW MATERIALS TO FINISHED GOODSTO FINISHED GOODS

RAW MATERIALSRAW MATERIALSTO FINISHED GOODSTO FINISHED GOODS

PRE-MADE PARTS ASSEMBLEDPRE-MADE PARTS ASSEMBLEDINTO FINISHED GOODSINTO FINISHED GOODS

Page 3: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Layout DefinitionsLayout Definitions

The spatial or physicalThe spatial or physicalarrangement of:arrangement of:

peoplepeople equipmentequipment materialsmaterials

within an organizationwithin an organization

The placement of:The placement of:

machinesmachines offices and desksoffices and desks service centersservice centers inventoriesinventories

within factories, ware-within factories, ware-houses, banks, offices,houses, banks, offices,stores, hospitals, etcstores, hospitals, etc..

Page 4: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Process Flow Structures AffectProcess Flow Structures Affect

Layout of the facility

Human and material resources

Technology decisions

Work Methods

Productivity

Firm’s strategy for competitive advantage

Costs

Page 5: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Intermittent Flow OperationsIntermittent Flow Operations

Called job shop in everyday parlance.

Can only occur within process layouts.

Their products move very slowlythrough the system due to material

shortages, long set-up times, workerabsenteeism, quality control

problems, technical difficulties,and so on.

Page 6: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Process Layout SchematicProcess Layout Schematic( INTERMITTENT FLOW OPERATIONS )

CuttingCenter

Sanding Center

DrillingCenter

AssemblyCenter

PaintingCenter

FinalInspectCenter

PRODUCT STARTPRODUCT START PRODUCT FINISHPRODUCT FINISH

WA

IT L

INE

WA

IT LINE

WAIT LINE

WA

IT L

INE

EX

ITE

XIT

PRODUCT MOVES FROM CENTER TO CENTER , ENCOUNTERING STOP-AND-GO TRAFFIC FROM START TO FINISH

Page 7: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

CharacteristicsCharacteristicsPROCESS LAYOUT

WORK FLOWS NOT STANDARDIZEDWORK FLOWS NOT STANDARDIZED

ONE OR MORE UNITS OF A PARTICULAR BATCH OF PRODUCT MAY NEED TO BERE-ROUTED THROUGH THE JOB SHOP DUE TO A MACHINE BREAKDOWN, OR SENT

BACK TO THE SAME WORK CENTER TWICE DUE TO QUALITY PROBLEMS OR BREAKAGE.

LABOR – INTENSIVE OPERATIONSLABOR – INTENSIVE OPERATIONS

HAND-CRAFTED OR HUMAN-DIRECTED MACHINE OPERATIONS ON THE GOODSBEING PRODUCED.

HETEROGENEOUS PRODUCT MIXHETEROGENEOUS PRODUCT MIX

A LARGE VARIETY OF DIVERSE PRODUCTS ARE CAPABLE OF BEING PRODUCED.

Page 8: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

CharacteristicsCharacteristicsPROCESS LAYOUT

INTERRUPTED PRODUCT FLOWINTERRUPTED PRODUCT FLOW

PRODUCT FLOW IS BLOCKED OR DIVERTED BY MACHINE FAILURES,MATERIAL SHORTAGES, CRITICAL WORKER ABSENCES, QUALITYPROBLEMS, OR UNEXPECTED ADDITIONAL PROCESSING TIMES.

LOW PRODUCTION VOLUMELOW PRODUCTION VOLUME

ONE, TWO, OR A FEW DOZEN UNITS OF THE SAME MAKE, MODEL,MATERIALS, SIZE, AND COLOR ARE PRODUCED AT ONE TIME.

NO CLOSE MANAGEMENT SUPERVISIONNO CLOSE MANAGEMENT SUPERVISION

SHOP FOREMAN TELLS WORKERS WHAT TO DO BUT NOT HOW TO DO IT. S/HE SERVES AS A TECHNICAL RESOURCE ON CALL FOR WORKERS, KEEPSTHEM SUPPLIED WITH MATERIALS, AND ACTS AS A LIAISON BETWEEN THE

WORKERS AND THE CUSTOMERS.

Page 9: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

CharacteristicsCharacteristicsPROCESS LAYOUT

GENERAL PURPOSE EQUIPMENTGENERAL PURPOSE EQUIPMENT

EQUIPMENT THAT CAN FABRICATE MANY DIFFERENT TYPES OF PRODUCTSBY MERELY CHANGING THE EQUIPMENT SETTINGS OR ATTACHMENTS.

THE EQUIPMENT CAN BE EMPLOYED IN A WIDE VARIETY OF ENVIRONMENTS,WHICH IN TURN, MAKES IT RELATIVELY INEXPENSIVE TO PURCHASE.

EXAMPLEEXAMPLE

A CARPENTRY JOB SHOP TABLE SAW CAN MAKE CUTS FOR BOOKCASES,CHAIRS, DESKS, CABINETS, AND TABLES VIA A BLADE CHANGE OR MINOR

ADJUSTMENT.

Page 10: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Continuous Flow OperationsContinuous Flow Operations

Called mass production in everyday parlance.

Can only occur within

product layouts.

THEIR PRODUCTS MOVE QUICKLYTHEIR PRODUCTS MOVE QUICKLYFROM STATION TO STATION ON AFROM STATION TO STATION ON ASINGLE PRODUCTION LINE THATSINGLE PRODUCTION LINE THAT

SELDOM STOPS.SELDOM STOPS.

Page 11: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Product Layout SchematicProduct Layout Schematic

1 32 4

Work Stations

Assembly Line or Pipeline

Work-in-Process UnitsWork-in-Process Units Finished UnitsFinished Units

INPUTS

( CONTINUOUS FLOW OPERATIONS ) FLOW OPERATIONS )

LABORMATERIALS

LIQUIDS

Page 12: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

CharacteristicsCharacteristicsPRODUCT LAYOUT

PRODUCT MADE-TO-STOCKPRODUCT MADE-TO-STOCK

IT PRODUCES PRODUCTS THAT ARE DESTINED TO GO TO A WAREHOUSEFOR SUBSEQUENT DISTRIBUTION, OR A RETAILER FOR ROUTINE MERCHANDISE

REPLENISHMENT.

UNINTERRUPTED PRODUCT FLOWUNINTERRUPTED PRODUCT FLOW

PRODUCTION IS HALTED ONLY BY SCHEDULED MAINTENANCE, ACCIDENTS,STRIKES, DELIVERY DELAYS, OR NATURAL DISASTER. MANY PRODUCTION

PLANTS OPERATE 24 HOURS A DAY, 7 DAYS A WEEK.

Page 13: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

CharacteristicsCharacteristicsPRODUCT LAYOUT

HOMOGENEOUS PRODUCT MIXHOMOGENEOUS PRODUCT MIX

A SINGLE BASIC PRODUCT WITH MINOR VARIATIONS SUCH AS COLOR,OPTION PACKAGES, TRIM, SIZE, AND SO ON.

CAPITAL – INTENSIVE OPERATIONSCAPITAL – INTENSIVE OPERATIONS

PRODUCTION THAT RELIES PRIMARILY ON MACHINES, ROBOTS, ANDCOMPUTERS, WITH NOMINAL OR NO HUMAN INTERVENTION.

Page 14: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

CharacteristicsPRODUCT LAYOUT

DEDICATED OR SPECIAL-PURPOSE EQUIPMENTDEDICATED OR SPECIAL-PURPOSE EQUIPMENT

EQUIPMENT DESIGNED FOR ONE SPECIFIC TASK, AND FREQUENTLY,INDUSTRY-UNIQUE. IT IS EXPENSIVE BECAUSE IT IS PRODUCED IN SMALL LOTS AND USUALLY POSITIONED AT MANY POINTS ALONG

THE ASSEMBLY LINE,

EXAMPLEEXAMPLE

SPOT-WELD ROBOTS IN AN AUTOMOBILE PLANT ARE UNIQUE TOTHAT INDUSTRY AND POSITIONED EVERY FEW HUNDRED FEET ALONG A ONE-MILE ASSEMBLY LINE. PRICES START AT OVER A

HALF-MILLION DOLLARS!

Page 15: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Repetitive Flow Repetitive Flow OperationsOperationsencompassencompass

WorkerPacedLineFlow

BatchFlow

MachinePaced

Line Flow

IntermittentFlow

( Job Shop )

ContinuousFlow

( Mass Production )

A TRANSITION ZONE BETWEEN INTERMITTENT & CONTINUOUS FLOW OPERATIONS

Page 16: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

All products “made” on the same assembly line. ( at different times, of course )

Products share similar parts, technology, and processing steps

Just-in-time systems are used to control the inventory.

Assembly of pre-made parts from independent vendors or sister divisions

Semi-skilled labor is utilized

Limited product menu is produced ( 6 to 12 )

CharacteristicsCharacteristicsREPETITIVE FLOW OPERATIONSREPETITIVE FLOW OPERATIONS

Page 17: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

PROCESS FLOWSPROCESS FLOWS

Let’s take a closer look!Let’s take a closer look!

Page 18: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Process Structure CharacteristicsProcess Structure Characteristics

Flow

Flexibility

Number of Products

Capital Investment

Variable Cost

Labor Content

Labor Skill

Production Volume

EACH OF THESECHANGES AS

WE MOVEACROSS

THESPECTRUM

Page 19: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Process Structure CharacteristicsProcess Structure Characteristics

FLOWFLOW PRODUCT NUMBERPRODUCT NUMBER

VARIABLE COSTVARIABLE COST VOLUMEVOLUME

FROM A LARGE NUMBER OFPOSSIBLE SEQUENCES OFACTIVITIES TO ONLY ONE

POSSIBLE SEQUENCE

FROM THE CAPABILITY OFPRODUCING MANY

DIFFERENT PRODUCTS TOPRODUCING ONLY 1 PRODUCT

FROM A HIGH UNIT COSTTO A LOW UNIT COST

FROM A QUANTITY OF ONETO LARGE-SCALE MASS

PRODUCTION

IntermittentFlow

Operations

ContinuousFlow

Operations

Page 20: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Process Structure CharacteristicsProcess Structure Characteristics

LABOR SKILL / CONTENTLABOR SKILL / CONTENT FLEXIBILITYFLEXIBILITY

CAPITAL INVESTMENTCAPITAL INVESTMENT

FROM HIGH SKILL ANDCONTENT TO LOW

SKILL AND CONTENT

PROCESS PERFORMANCEAND COST ARE

INDEPENDENT OFCHANGES IN OUTPUT

FROM USING LOW COSTGENERAL PURPOSE

EQUIPMENT TO HIGH COSTDEDICATED EQUIPMENT

IntermittentFlow

Operations

ContinuousFlow

Operations

Page 21: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Project ArchitectureProject Architecture

• FLOW – no flow

• FLEXIBILITY – very high

• PRODUCTS – unique

• CAPITAL INVESTMENT – very low

• VARIABLE COST – very high

• LABOR CONTENT & SKILL – very high

• VOLUME – one unit

Page 22: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Project ArchitectureProject Architecture

Resources are brought to the project site as needed.

Technically, a project is not a process flow structure, since there is no flow of product.

However, it is useful to think of a project as one extreme of the process continuum.

Comments

Page 23: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Project ArchitectureProject Architecture

Relatively low fixed costs.

Relatively high direct labor costs.

Relatively high direct materials costs.

Low materials handling costs.

FinancialImplications

Page 24: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Job Shop ArchitectureJob Shop Architecture

• FLOW – jumbled flow

• FLEXIBILITY – high

• PRODUCTS – many

• CAPITAL INVESTMENT – low

• VARIABLE COST – high

• LABOR CONTENT & SKILL – high

• VOLUME – low

Page 25: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Jumbled Jumbled FlowFlow

Center33

Center1

Center5

Center44

Center66

Center2

Product AProduct A Product BProduct B

Product CProduct C

( NO DOMINANT FLOWS THROUGH THE SYSTEMNO DOMINANT FLOWS THROUGH THE SYSTEM )

Product DProduct D

Page 26: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Job Shop ArchitectureJob Shop Architecture

Relatively low fixed costs.

Relatively high direct labor costs.

Relatively high direct materials costs.

High material handling costs.

FinancialImplications

Page 27: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Batch Process ArchitectureBatch Process Architecture

• FLOW – disconnected, with some dominant flows

• FLEXIBILITY – moderate

• PRODUCTS – several

• CAPITAL INVESTMENT – moderate

• VARIABLE COST – moderate

• LABOR CONTENT

& SKILL – moderate

• VOLUME – moderate

Page 28: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Jumbled Jumbled FlowFlow

Center3

Center1

Center5

Center4

Center6

Center2

Product AProduct A Product BProduct B

Product CProduct C

( WITH SOME DOMINANT FLOWS )

Product DProduct D

Page 29: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Jumbled Jumbled FlowFlow

Center3

Center1

Center5

Center4

Center6

Center2

Product AProduct A Product BProduct B

Product CProduct C

( WITH SOME DOMINANT FLOWS )

Product DProduct D

PotentialIslands

OfAutomation

Page 30: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Disconnected Disconnected FlowFlow

Center 1

Center2

Center4

Center3

Center5

Center6

One flow only but the work centers are separated from one another in TIME and SPACE

Building No. 1

Building No. 2

1,000 ft 800 ft

2 miles2 miles

600 ft 900 ft

1st Floor or

2nd Floor or

Page 31: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Batch Process ArchitectureBatch Process Architecture

Products are produced in “batches” ( several dozen units at a time ) .

More frequently produced products begin to create dominant flows between certain work centers.

The sequence of operations subsequently tends to form one or more “production lines”.

The sequence(s) of operations, while “in-line”, is/are still disconnected.

Comments

Page 32: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Assembly Line ArchitectureAssembly Line Architecture

• FLOW – connected line

• FLEXIBILITY – low

• PRODUCTS – a few

• CAPITAL INVESTMENT – high

• VARIABLE COST – low

• LABOR CONTENT & SKILL –– low

• VOLUME – high

WORKER + MACHINE PACEDWORKER + MACHINE PACED

Page 33: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Connected Connected FlowFlow ( All work centers equidistant from one another and synchronized )

Center1

Center2

Center3

Center4

Center6

Center5

3 Minute Time Interval Between Centers

20 Feet of Distance Between Centers

Page 34: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Assembly Line ArchitectureAssembly Line Architecture

Like a “batch” process, it processes work in a fixed sequence.

However, it connects and paces the work via a moving production line.

There is now only one production line!

Comments

Page 35: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Continuous Flow ArchitectureContinuous Flow Architecture

• FLOW – continuous

• FLEXIBILITY – very low

• PRODUCTS – one

• CAPITAL INVESTMENT – very high

• VARIABLE COST - very low

• LABOR CONTENT AND SKILL – very low, but with skilled overseers

• VOLUME – very high

Page 36: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Continuous Continuous FlowFlow

WorkStation

1

Work Station

2

WorkStation

3

WorkStation

4

Work-in-Process Finished Product

Very little or no time interval between work stationsVery little or no physical separation between work stations

VERY HIGH SPEED PRODUCTION RATE

Resource inputs - liquids - materials

Processing Steps - heating - cooling - drying - mixing

( process or actual pipeline )

Page 37: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Continuous Flow ArchitectureContinuous Flow Architecture

Has a fixed pace and sequence of operations.

A single product is processed in a continuous flow, rather than in discrete steps.

Production output is measured in weight or volume.

Comments

Page 38: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Continuous Flow ArchitectureContinuous Flow Architecture

Relatively high fixed costs.

Relatively low direct labor costs.

Relatively low direct materials costs.

FinancialImplications

Page 39: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

The Process Flow Spectrum

Project

Job

Shop

Batch

Process

Assembly

Line

Continuous

Flow

Flow NoneNone JumbledJumbled DisconnectedDisconnected

& Dominant& DominantConnectedConnected ContinuousContinuous

Flexibility Very HighVery High HighHigh ModerateModerate LowLow Very LowVery Low

Number of Products

UniqueUnique ManyMany SeveralSeveral FewFew OneOne

Capital Investment

Very LowVery Low LowLow ModerateModerate HighHigh Very HighVery High

Variable Cost Very HighVery High HighHigh ModerateModerate LowLow Very LowVery Low

Labor Content Very HighVery High HighHigh ModerateModerate LowLow Very LowVery Low

Labor Skill Very HighVery High HighHigh ModerateModerate LowLow Very LowVery Low

Volume One UnitOne Unit LowLow ModerateModerate HighHigh Very HighVery High

Page 40: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Process Selection CriteriaProcess Selection Criteria

Product variety

Product volume

Local economics

Stage in product life cycle

The firm’s business

strategy + marketing

plans

A tradeoff between

fixed + variable cost

The amount of capital

that the firm is able

or willing to invest

Page 41: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Marketing ImplicationsMarketing ImplicationsPROCESS CONTINUUMPROCESS CONTINUUM

A job shop allows a firm

to sell its capabilities

A continuous process

flow allows a firm to

emphasize the product itself

A job shop helps a firm

follow a differentiation

strategy

A continuous process flow helps a firm follow

a low-cost strategy

Page 42: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Labor

Energy

Equipment

Transportation

Economic ImplicationsEconomic ImplicationsPROCESS CONTINUUMPROCESS CONTINUUM

A BREAK-EVEN ANALYSIS MAY BEA BREAK-EVEN ANALYSIS MAY BEPERFORMED TO ASSIST IN THEPERFORMED TO ASSIST IN THE

PROCESS SELECTIONPROCESS SELECTION

A BREAK-EVEN CHART RELATES A BREAK-EVEN CHART RELATES COST TO LEVELS OF FORECASTEDCOST TO LEVELS OF FORECASTED

DEMANDDEMAND

Page 43: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Product Life Cycle ImplicationsProduct Life Cycle ImplicationsPROCESS CONTINUUM

BIRTH

A JOB SHOP MAY

BE THE MOST

APPROPRIATE

IN ORDER TO

FILL EARLY

DEMAND AND

ADJUST TO

DESIGN CHANGES

MATURITY

HIGH PRODUCTION

VOLUMES MAY

JUSTIFY AN

ASSEMBLY LINE

DECLINE

A BATCH PROCESS

MAY BE MORE

APPROPRIATE AS

PRODUCT VOLUME

FALLS AND A

VARIETY OF SPARE

PARTS IS REQUIRED

Page 44: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Traditional Traditional Process Process LayoutLayout

Lathe CenterLathe Center

Drilling CenterDrilling Center

Cutting CenterCutting Center Inspection CenterInspection Center

PRODUCTS CONTINUALLY TRAVEL BETWEEN WORK CENTERS PRODUCTS CONTINUALLY TRAVEL BETWEEN WORK CENTERS

Page 45: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Work Cell LayoutWork Cell LayoutGROUP TECHNOLOGY GROUP TECHNOLOGY

- All jobs take the same route through the shop- Machine setups for all jobs are accomplished by merely changing the software menu - Interchangeable product parts or parts that merely have to be reduced or increased in size, also make the work cell layout possible

Page 46: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Work Cell LayoutWork Cell Layout

Quick set-up times between jobs

Reprogrammable robots and other equipment

Production of products sharing similar process requirements, parts, materials, shapes,

and handling requirements

REQUIREMENTSREQUIREMENTS

Page 47: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Shop makes storm doorsstorm doors ofall sizes, metals, wood, vinyl,

glass, and colors with theminimum setup times between

each order

Shop makes windowswindows of all sizes, metals, wood, vinyl,

glass, and colors with theminimum setup times between

each order

Work Cell Layout ManagementWork Cell Layout ManagementSTORM DOOR & WINDOW FACTORYSTORM DOOR & WINDOW FACTORY

MajorSetup Time

BetweenWindow

&DoorRuns

Page 48: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Work Cell Layout ManagementWork Cell Layout Management

Setup time is the time to prepare a machineor process for manufacturing an order.It includes time and labor to clean or

change tools, molds, or settings.

Setup cost is highly correlated with setuptime, and also includes the cost of lost

productivity, scrappage, and rework.

Setup Time and Setup CostSetup Time and Setup Cost

Page 49: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Work Cell Layout ManagementWork Cell Layout Management

MAJOR SETUPMAJOR SETUP(CHANGE BETWEEN PRODUCT GROUPS)(CHANGE BETWEEN PRODUCT GROUPS)

WINDOWSWINDOWS DOORSDOORS

OORRDDEERR

11

OORRDDEERR

22

OORRDDEERR

33

OORRDDEERR

11

OORRDDEERR

22

OORRDDEERR

33

Page 50: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Work Cell Layout ManagementWork Cell Layout Management

MINOR SETUPMINOR SETUP(CHANGE WITHIN A PRODUCT GROUP)(CHANGE WITHIN A PRODUCT GROUP)

WINDOWSWINDOWS

OORRDDEERR

11

OORRDDEERR

22

WINDOWSWINDOWS

Page 51: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

The Process SpectrumThe Process Spectrum

WorkerPacedLineFlow

BatchFlow

MachinePaced

Line Flow

IntermittentFlow

Operations

( Job Shop )

ContinuousFlow

Operations

(Mass Production)

ALL MANUFACTURING AND SERVICE OPERATIONS ARE

ENCOMPASSED BY THE PROCESS SPECTRUM

RAW MATERIALS RAW MATERIALS TO FINISHED GOODSTO FINISHED GOODS

RAW MATERIALSRAW MATERIALSTO FINISHED GOODSTO FINISHED GOODS

PRE-MADE PARTS ASSEMBLEDPRE-MADE PARTS ASSEMBLEDINTO FINISHED GOODSINTO FINISHED GOODS

Page 52: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

The Process Flow Spectrum

Project

Job

Shop

Batch

Process

Assembly

Line

Continuous

Flow

Flow NoneNone JumbledJumbled DisconnectedDisconnected

& Dominant& DominantConnectedConnected ContinuousContinuous

Flexibility Very HighVery High HighHigh ModerateModerate LowLow Very LowVery Low

Number of Products

UniqueUnique ManyMany SeveralSeveral FewFew OneOne

Capital Investment

Very LowVery Low LowLow ModerateModerate HighHigh Very HighVery High

Variable Cost Very HighVery High HighHigh ModerateModerate LowLow Very LowVery Low

Labor Content Very HighVery High HighHigh ModerateModerate LowLow Very LowVery Low

Labor Skill Very HighVery High HighHigh ModerateModerate LowLow Very LowVery Low

Volume One UnitOne Unit LowLow ModerateModerate HighHigh Very HighVery High

Page 53: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Intermittent Flow OperationsIntermittent Flow Operations MANUFACTURING MANUFACTURING

Job Shop Batch Flow

ORIGINAL ART WORK TOOL & DIE SHOP CUSTOM JEWELRY HEIRLOOM FURNITURE YACHT SUPER COMPUTER DENTAL CROWNS CUSTOM POOL

LIMITED EDITION ART HEAVY MACHINERY FINE JEWELRY FINE FURNITURE ROBOTICS SUITS AMBULANCES TEXTBOOKS

Page 54: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Repetitive Flow OperationsRepetitive Flow Operations MANUFACTURING MANUFACTURING

Worker-PacedLine Flow

Machine-PacedLine Flow

CAMERA ASSEMBLY COMPUTER ASSEMBLY AUTOMOBILE ENGINE ASSEMBLY STANDARD OFFICE FURNITURE COMMON HAND TOOLS

APPLIANCE ASSEMBLY TOY ASSEMBLY AUTOMOBILE ASSEMBLY NEWSPAPER PUBLISHING BOTTLING PLANT UTENSILS

Page 55: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Continuous Flow OperationsContinuous Flow Operations MANUFACTURING MANUFACTURING

OIL REFINERY CHEMICAL REFINERY PAPER MILL CONCRETE PRODUCTION LIGHT BULB PRODUCTION GLASS PRODUCTION NUT & BOLT PRODUCTION STEEL MILL ELECTRICITY GENERATION

Page 56: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Intermittent Flow OperationsIntermittent Flow Operations SERVICE SECTOR SERVICE SECTOR

Job Shop Batch FlowBatch Flow

TUTORING PHYSICIAN’S OFFICE LIMOUSINE SERVICE CHARTER FLIGHTS LAW FIRM PRIVATE DINING FACILITY INDIVIDUAL SELLING

SMALL CLASSES GENERAL HOSPITAL TAXI SERVICE LOCAL AIRLINE LAW CLINIC FINE DINING RESTAURANT BOUTIQUE

Page 57: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Repetitive Flow OperationsRepetitive Flow Operations SERVICE SECTOR SERVICE SECTOR

Worker-PacedLine Flow

Machine-PacedLine Flow

LECTURE HALL TEACHING HERNIA SURGERY CLINIC BUS SERVICE SUPERMARKET FAST FOOD RESTAURANT SCHEDULED AIR LINE

DISTANCE LEARNING CARWASH CINEMA MULTIPLEX LAUNDROMAT TANNING SALON AMUSEMENT RIDES

Page 58: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

Continuous Flow OperationsContinuous Flow Operations SERVICE SECTORSERVICE SECTOR

ContinuousLine Flow

RADIO - TELEVISION UTILITIES ON-LINE SHOPPING POLICE PROTECTION FIRE PROTECTION NATIONAL DEFENSE

TELEPHONE SERVICE EMERGENCY MEDICAL RESPONSE CHECK CLEARING HOUSE AUTOMATED FLAT- MAIL POSTAL FACILITY

Page 59: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

WE FOCUS ON…..

Classifying Service Classifying Service System ProcessesSystem Processes

1. How much skill and knowledge the worker must bring to the service.

2. The size of the potential customer service group.

3. The level of customer convenience.

Page 60: The Process Flow Spectrum Spectrum Overview Intermittent Flow Operations Continuous Flow Operations Repetitive Flow Operations Selection Criteria Pearson.

The Process SpectrumThe Process Spectrum

THE ENDTHE END

Applied Management Science for Decision Making, 1e Applied Management Science for Decision Making, 1e © 2012 Pearson Prentice-Hall, Inc. Philip A. Vaccaro , PhD© 2012 Pearson Prentice-Hall, Inc. Philip A. Vaccaro , PhD


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