Process Selection Choices in Production and Operations Management

[Music] [Music] Welcome to to the course production and

operations management theory and applications. I am professor Shanjib Chowri from

Indian Institute of Technology Karapur. Today we will start a new module that is process selection module 6 and in this

lecture we will talk about process selection choices. The concepts that will be covered in

this lecture are what are the different process types such as job shop, batch, repetitive,

continuous and project. Then we'll talk about process types and management challenges

and technology technology product technology information technology process technology and others.

So to start with for selecting a process the two key questions in process selections are the variety and volume

like how much variety the process need to handle and how much volume the process

need to handle. So it is the question of variety is the customization. See the white thing and the volume is the

standardizations of the processes so that it gives you more and more volumes of production. So the process selections

are basically depends on this variety to the extent of variety and the volume. The process types as we have already

mentioned are of five types like job shop process, batch process, repetative process, continuous process and project

type. So we will be discussing each of these. So this is the say will show you

different processes. Say when your variety is required of the variety is high and the volume is low then we go

for the job shop. In job shop that that is mostly the customization of the clients need. So such as say repair shop

that in a repair shop there are different types of different varieties of repairs are being done. Then

emergency room in hospital emergency rooms and all the different types of patients come different sorts of the

ailments different sorts of cases and all that is being so variety is very high here job. Then comes the

batch type in batch type is the variety is moderate and the volume is also moderate. It productions or the services

are given in batches. Just for the as for example commercial bakery in bakery we'll talk about it later on you know

bakery different batches of say cookies, bread, cakes and all it it is produced in batch. Then classroom lecture it is

done in batches. Then your airlines, then your uh movie theaters, it is done in batches. Then comes the flow and

repetative. Here variety is coming down low but the volume is high. So like assembly line here less number of

varieties and for one type of assembly lines are it is more like automatic car wash then your production of TV

production of your any product and all this is in flow and repetative then the when there is very low variety and very

high volume that is called continuous flow like refining Then electricity production, water

treatment, all these are the continuously it is done. So it is a standardized process you have to

maintain internet. So very low variety but very high volume. These are the various types of the processes we have.

Now we will further go this where it is their comparison and where they are used like job shop it is used in the

customized goods or services as per the client's need. So you do more of customization and here

you you the advantages are that your workshop or your people the worker can able to handle wide variety of work and

disadvantages are it is slow its cost is high per unit because customers needs are different and complex planning and

scheduuling is required and In batch type of processes it is semi-standards goods or services. It is

semi-standardized fle there are flexibility and easy to add on changes products or services and the batch sizes

disadvantage are moderate cost per unit and moderateuling complexity. Now comes for the flow or

repetitive here standardized goods or services it is has been standardized because it is a large that uh flow

repetative flow. So here as a result low unit cost because your volume is more your process is standardized. So it is

low unit cost high volume and efficient method are the advantages and these advantages are obviously it is less

flexible and high cost of downtime. When your process some breakdown happens the entire

assembly line is under breakdown. So it is a cost of downtime is more continuous processes highly standardized goods or

services as I told like electricity, internet, water treatment all very high volume and very efficient and

disadvantages are very rigid, lack of variety, costly to change, very high cost to downtime.

A refinery or a steel plant is under down is breakdown. It cost is very high. So next process type, service and

product and management challenges. I will give you some examples like the job shop. Job shop. The examples are for

service sector as well as manufacturing sector. I'll give you this blue that uh color the this this shows the

manufacturing job shop is the say hospital tool and die shop in manufacturing here characteristics are

it many specialized departments are required here and what are the management challenges for these

management challenges are balancing utilizations and scheduuling uh of patient for a hospital.

Then batch batch like services, airlines, movie, plays, concert, these are done in batches. Similarly, bakery,

bread, cake, cookies, paint, then paint, ice cream, soft drinks, these all are produced in batches. Group of products

customers treated simultaneously. So management challenges are prioritizing of perishable assets like if a hotel

room it stays vacant for the night you it is perishable that is a perishable asset for you a an airline empty seat

goes that asset that opportunity that asset is lost forever. Okay. Then flow and repetitive it is say

so for services cafeteria automatic car wash for for manufacturing assembly line or automo

such as automo produces that flow is repetative then computers TV sets pencils these are flow

or repetative uh product and services Here fixed sequence of operations and management

challenges are adjusting to demand fluctuation that was the way you keep up with the uh with the fluctuating

demand. Then continuous such as as I already told electric utility, internet, air monitoring, petroleum products, then

steel, cement production, salt production, flour production, sugar continuously it is the plant is

operational. So these are the characteristics are uninterrupted delivery and management challenges are

maintenance and capacity planning. These are very important because downtime is very costly. Then another type of

processes is project like for example for services consulting work making movie making a play new service making

uh developing a new service and for manufacturing new product development building of dam

building of bridge building of factory building of highways these are the these are all project what is a project a

project is a temporary endeavor uh undertaken to create a unique product,

service or result and it is one of a kind in the sense that it has an established objective and project has a

lifespan. It has an beginning. It has an end and it has to have certain meet certain objectives. That is the their

project specification. This is one of a kind project. So we will talk about the project more in the uh last but one

chapter that is the chapter 16 that is project managing project services. There we will talk about more. Now we will be

not talk about much about here. So it is project challenges are staffing and scheduuling. So these are the management

challenges for various process types. Then this shows the process types comparison among then among the this job

batch type repetative type continuous and projects. So cost estimation for these for a job shop is bit difficult

because varieties of job customized jobs are being done. Batch type somewhat routine because say airlines or hotels

and all it is routinely it goes somewhat routine. Repetative it is routine because it is cost estimates and all all

are standardized. Continuous is also routine. standardized and project from the simplex to complex because simple

project to complex project depending on this cost estimations will also vary. Cost per unit for job shop it is high

because volume is less variety is more batch it is moderate for repetative continuous uh for repetative flow type

it is low and continuous it is low project cost per unit is very high. Then your equipment used general purpose job

shop general purpose batch also it is general purpose equipments are used for repetative and continuous special

purpose equipments are required because it is standardized. Then projects it is varied depending on the project. Then

fixed cost fixed cost are low for the job shop. For batch it is moderate and repetitative it is high and continuous

it is very high because here you have standardized the process. So equipment process things assets has to be made

and project it is varied. So variable cost is high for job shop because of customization because of variety where

it batch type it is moderate for repetative flow type it is low continuous variable cost is very low and

project it is high labor skills required for job shop is very high because you are doing the skilled labors are

required for customization work for batch type it is moderate repeated negative it is low because here the

system the standardization takes care of it. So role of the workers are very negligible. So it is

low for continuous it is low to high projects also low to high. Marketing promote capabilities here for batch

promote capabilities. Sim semi-standardized goods and services and repetitive it also promote standardized

goods and services. So is the continuous and here project promote capabilities. Then shoulduling is complex in job shop

whereas moderate in batch routine in repetative and continuous type of flow. Then complex subject to for project it

is complex subject to change. For work in process it is dropshop is high batch is high. Whereas routine and continuous

it is low and projects for projects it is varied. So these are some of the comparisons. Now we will talk about

technology. The role of technology for the process selections that product there are three types of technology

generally we use it. One is the product technology. Product technology is the the technology you use for the goods and

services for different sector different industries you use different types of product technology.

Then information technology information technology nowadays is spreading like and it has invaded all the manufacturing

and service sectors and all. So we cannot think of we have to take leverage of the information technology to get

competitive advantage. For example, information technology we use generally use in manufacturing and services. One

is electronic data processing. It increases the speed tremendously. Then barcode, RFID, radio frequency

identifications that tag, then many microprocessor chips and all in the product embedded in the product. These

are all the information technology we take take the uh advantage of it for the products or services. Then the process

technology. Process technology is the development of methods, procedures and equipment used to produce your goods and

pro goods and provide services process technology. Then in nowadays what we find the process and information

technology have a major impact on the cost, productivity and competitiveness. No. In order to get competitive

advantage, we are banking more and more on process and information technology so as to improve the product development

and services and try to reduce the cost and try to improve the productivity. Then there are say kinds of automation.

This technology also is related with automation. So what are there are different types of automations are

there. One is called fixed automation. In fixed automation it is least flexible and uses high cost specialized equipment

for a fixed sequence of operation as we have seen it. You know continuous continuous that flow that is the

refinery electricity generations water treatment these are continuously done. So what you need you need the here

specialized equipment and these equipments are capital intensive. So that is why it is costly and also these

are least flex flexible because you want standardized work. These are then there are

programmable automation such as you take take the advantage of having computer added

manufacturing CAM then numerically controlled automation then your computerized numerical control NC

machine that a machine CNC machine you must have heard about it then direct numerical control so all these are

programmable able automation you can change it according to your need and programs. Then there are flexible

automation such as flexible manufacturing system computer integrated manufacturing system. We will talk about

this flexible manufacturing system in the more in the next lecture. We'll give you the some examples and its details.

So to sum it up in this lecture we have what we have discussed we have discussed in this lecture process selection

choices that have strategic implications for organizations as they influence cost quality and productivity. Different

types of processes namely job shop, batch, flow or repetative and continuous processing have been discussed including

their advantages and disadvantages. Process type and layouts are closely related. The need for volume and variety

usually guides process selection. It further explains process analysis and management challenges associated

technologies such as product information and process technology and kinds of automation.

These are the reference books you can go through and further

enrich your knowledge. Thank you very much for attending today's class.