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Block 1 - Session 12: Process design - The four-step approach (Step 2:…
Block 1 - Session 12: Process design - The four-step approach
Step 1: Understanding the design factors
What factors drive my process choice decisions?
Four V's that influence operations' design (Slack et al. (2010))
Volume
Large volumes require automated equiptment with staff each having a role e.g. McDonalds
Small volumes require less systematisation but staff may perform more than one role and rely on skills and flexibility e.g. Boutique restraunt
Variety
How much choice does the consumer have about the product/service. Can they tailor it so suit their needs or does it come in a set way.
Variation (in demand)
Does the demand stay at the same rate consistently or does it fluctuate/fall at certain times
Visibility
How much separation is there between the customer and the process. e.g. Healthcare = high visibility as the patient has to be present.
Slack et al. suggest profiling each operation in the four dimensions. (See diagram in book)
Step 2: Process choice
Which process choice should I make?
Idea that volume and variety drive the configuration
Eight process choice types of manufacturing/services
Batch processes
Medium levels of volume and medium levels of variety
Medium volume
Mass processes
Large volume in relatively small range of varieties.
High volume
Jobbing processes
Producing small numbers of unique or precise components. Tailored to meet exact needs
Low volume
Continuous processes
One continuous stream of output at a steady rate
High volume
Professional services
Low output, highly customised to meet customer needs
Low voume
Service shops
Choice is restricted by whatever is available.
Medium volume
Project processes
Complexity, long timescale, large scale, multi-disciplinary teams
Low volume
Mass services
One type of service at high volume
Each is related to their volume and variety
Mass customisation
Can produce goods and services with high variety but not in high volume
Allows a highly customised product to be made in a facility with a good process flow without excess unit cost.
Step 3: Layout choice
What layout type do I need?
4 Basic types of layout
Function layout
Resources clustered into departments e.g. hospital
Medium levels of volume and variety
Product layout
Each step in the process is adjacent to ones immediately before it. Work flow. e.g. canteen
Higher volumes of output
Fixed position layout
Resources have to travel to where the work is needed elsewhere e.g. Construction sites
Hybrid and mixed layouts
Mixes both functional and product layouts. Production cells. e.g. house of Fraser has brand departments within the shop.
Medium levels of volume and variety
Step 4: Detailed design
How do I physically arrange the facilities to create flow?
The floor plan needs to be designed according to the key objectives.
Do we want customers to spend more?
Do we want them to be in and out quickly?
Spaghetti diagram
This shows movement of a customer through a service.