Alternative Configurations in

Operations

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 Alternative Configurations in Operations

BROAD FLOW PATTERNS IN OPERATIONS

In all the above examples, the operations vary widely in terms the type of resources used and
the nature of activities done. However, at a higher level, the resources are organized in the
operations system in certain ways so that flow patterns are optimized. In reality, although wide
variations exist in the type of organizations, from an operations management perspective, most
of them fall under three broad flow patterns:

Streamlined or Continuous Flow System

Intermittent Flow System

Jumbled Flow System

It may be very useful to understand which flow pattern an

operations system may closely resemble. It depends on the
nature of the activities that we pursue in an operating system.

For example, if a manufacturing or a service system caters to

a wide range of products and services then it demands a
certain type of process design as opposed to another which
mass produces just one or two variations of a product or a service. This will help an
organization to deploy appropriate operations management tools to effectively control the
overall operations.

Factors Influencing Operational Process

It is important to know what characteristics influence the choice of alternative processes.

Generally, three important aspects that have a significant influence on the process are:

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 Alternative Configurations in Operations

1. Volume

Volume indicates the average quantity of the products or services offered through an
operations system. In reality, there are examples of firms that differ on this from one
end of the spectrum to the other.

Turnkey project management firms such as L&T and BHEL will typically have a
volume of just one, and so will be the firms offering high end professional
consulting services.
At the other extreme, there are several firms catering to the consumer non-
durable and FMCG sector having high volume of production necessitating
continuous production.
Similarly, a fast food joint offering a narrow product portfolio in the commercial
hub of a metro will also belong to low variety high volume system.
In between the two extremes we have the mid-volume mid-variety providers, who
may cater to their customers with several alternative versions of products and
services.

2. Variety

Variety refers to the number of alternative products and services, and variants of each of
these offered through an operations system. It also includes variety in technology and
process choices used in the operating system.
Let us consider the case of a car manufacturer such as Hyundai.

The Hyundai Sonata is available in several varieties. The basic difference is the
Petrol and the Diesel version.
However, within the petrol and the diesel versions, we have several variations.
For example, one version will have a power steering, the second power steering
and power windows, another may have automatic transmission etc.

One sees a similar phenomenon in a service system also.

Assume that a travel agent firm was earlier engaged only in selling tickets for bus
journey from Delhi to Chandigarh.

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 Alternative Configurations in Operations

In course of time, if the agency added booking of bus tickets for multiple
destinations, rail tickets, air tickets for domestic travel and air tickets for
international travel, one can imagine how many alternative choices of processes,
skill sets and resources are required for the travel agency.
Operations management in the latter case is far more involved and complex.

3. Flow

Flow indicates the nature and intensity of various activities carried out in an organization
and provides an understanding of how the inputs in an operations system get transformed
into useful output.

Knowledge of flow provides vital clues to the operations manager about operations
planning and control issues.

Complexity of Operations Management

The three characteristics introduced above are linked with one another. In general, volume and
variety seem to have an
Inverse relationship. When
the volume of production is
very high, it is highly likely
that the firm is engaged in
the offering fewer varieties of
products and services. On the
contrary, if the firm caters to
a wide ranging set of
products and services, then
the production volume of
each of these variations is
likely to be very low.
Furthermore, volume and
variety influences the flow
patterns in a manufacturing
system.

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 Alternative Configurations in Operations

From the above discussion

one can identify factors
that introduce complexity
in operations management.
First, the issue of flow
pattern in a manufacturing
system. As the flow pattern
deteriorates from the
continuous and
streamlined pattern to
intermittent and jumbled,
we can expect the
complexity of operations
management to increase.
At the extreme case of a
turn-key project firms, one
needs to deal with:

Long lead times

High degree of uncertainty
Increase in number of stages in the production

Irrespective of the process flow pattern, as the number of stages increase, the number of
options to be considered and the size of the problem also increases leading to complex
operations management issues. To give a simple example, predicting the nature of disruptions
such as machine breakdown and tool breakdown is relatively much easier in a shop having 20
machines than in another with 40 machines.

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