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B207 - Reading 15: The Design of Processes Process Design - Coggle Diagram
B207 - Reading 15: The Design of Processes Process Design
1. Core Principles and Drivers
Process Design
: The set of activities associated with organising resources to effectively produce the product or service.
Challenge:
To design a process that meets all aspects of operations performance (cost, speed, quality, etc.).
Process Flow
: Operations managers aim for a smooth flow of resources through a process, as smoother flow leads to greater efficiency.
Main Drivers (The Four 'V's)
: Process choice and design are largely driven by these four factors:
Volume:
Scale of work (High volume requires standardisation/automation; Low volume relies on skill/flexibility).
Variety:
Range of outputs/customisation (High variety adds complexity, cost, and requires more skill and flexibility).
Variation (in Demand):
Swings in demand (High variation requires building in volume flexibility or buffering by storing output).
Visibility:
Degree of customer contact (High visibility requires the operation to be much more flexible and deal with the inherent variability of customers).
Ideal Profile:
A vertical profile where all four 'V's are either consistently high (challenging, complex, flexible) or consistently low (ideal for automation, standardisation, stable).
2. Process Choice (The Volume/Variety Diagonal)
Process choice is the high-level decision on how resources are organised, driven by volume and variety
Process Choice Diagonal:
Processes exist on a diagonal, implying a trade-off where high variety limits high volume.
Mass Customisation:
An approach to overcome the trade-off by achieving high volume and high variety simultaneously. It is achieved through modular product design and a process designed with independent production/assembly stages (e.g., Dell PCs, Build-a-Bear).
3. Layout Choice and Detailed Design
Layout Choice (Step 3):
Deciding how resources are grouped (Specialised departments vs. sequential flow).
Four Basic Layout Types:
Fixed Position Layout:
Resources travel to where the work is needed (e.g., construction sites, field service repairs). Disadvantage: Lack of control over the environment.
Functional Layout (Process Layout):
Resources are clustered into departments based on function/skill (e.g., hospital departments). Advantage: Flexibility and functional expertise. Disadvantage: Complex, lengthy journeys; customers can get lost.
Product Layout (Flow Line):
Layout is sequential, designed around the steps needed to produce the product, minimising travel (e.g., self-service cafeteria). Advantage: Clear flow and efficiency. Disadvantage: Restricted flexibility.
Hybrid/Cellular Layout:
Combines features of functional and product layouts (e.g., retail shop-within-a-shop, production cells). Advantage: Shorter distances than functional layout; allows clustering of expertise.
Layout Influence
: Layout choice is influenced by volume and variety. Functional layouts are common for medium variety/volume (Jobbing, Batch, Service Shop). Product layouts are used for higher volumes
Detailed Design (Step 4):
Final floor plan decisions.
Cost-Focused Layouts:
Aim to minimise unit costs, distance travelled, and location costs (common in manufacturing/back offices).
Revenue-Focused Layouts:
Designed to encourage more spending by the customer (common in retail/service). This may result in greater distance travelled or slower journey times.
Spaghetti Diagram
: A tool used to track movement of materials, staff, or customers through a layout to assess complexity and flow.