Process Selection & Layout Planning • What things shall we need

to consider?
Process • What process structure
Selection shall we implement?
• How do we manage our
process structures?
How to
provide What Processes
service or Shall We Do?
make Effectiveness & Efficiency
products?
Process Strategy
Coping with our Scope
•Outsource
•Integrate
What
things
shall we
consider?

What Process
Structure
Should
We Use?
• Process: Use of an organization’s Process Structure
resources to produce something of value •Job Shop
• General: Way an organization will •Batch
produce •Repetitive
its products or provide services •Continuous
• Specific: Deciding a way the production •Projects
of
goods or provision of services will be Job Process
• Low Volume, High Variety Goods or
Services
• Products or services has different
processing requirements
• Product: Customized Bags,
Portrait Paintings
• Service: Emergency Room,
Psychological Therapy,
Batch Processing
• Moderate Volume, Semi-
standardized goods
• Products or services has
processing requirements
organized which can be done per group or set
• Product: Food, Village
When does Process Bakeries,
Selection Occurs? • Service: Movie Theaters,
• New Product Planning Teaching, Movie House,
• New Technology Arises Concerts, Restaurants
• Competitive Pressures in Batch cooking
• Growth/Decline
Questions to be Answered
• What processes/ Repetitive/ Line/ Mass
activities shall we • High Volume, Standardized Goods or
perform/ do? Services
• Products or services has standardized •What do we do in layout
or planning?
repetitive processing requirements •Why is it important?
• Product: Cars, TV sets, •What’s our objective?
Pencils, Computers •What are the basic
• Service: Automatic layouts?
Carwash, Ticket Collectors • How can we layout
effectively & efficiently
physical arrangement
Continuous Department Work centers
• Higher Volume, Highly Standardized Equipment Operations
Goods (No Variety) or Services
• Products or services has highly
standardized or processing
requirements
• Product: Petroleum Refinery,
Sugar Production,
• Service: Electricity and
Internet

Project
• Limited Time Frame/ Non
Routine
• Making a motion picture,
publishing a book,
building a dam, building a Strategic Importance
bridge • Investment
• Long-Term/Fixed
•Operating Cost and
How do we Efficiency
keep our Competitive
process Advantage
properly
managed?
Managing Process Needs:
• Up-to-date forecasting
• Constant environmental scanning
• Accurate demand planning
• Factor flexibility in Operations
• Keep up with Technology

What We Know So Far?

• Process is the way we produce
goods
• Process selection has strategic
importance Objectives
• Process selection depends on various • Attain product or service QUALITY
factors • Use workers and Space EFFICIENTLY
• Process selected may affect other • Avoid BOTTLENECKS
factors • Eliminate UNCESSARY MOVEMENTS
• Process depends on Products • Minimize PROUCTION/ SERVICE TIME
• Design for SAFETY
Basic Layouts
LayoutPlanning
Product
Questions to be Answered Layout
Process • A general process layout with
Layout components using product
Layouts
Product Layout
• Sequential, Arranged by Process layout shall follow process
• Uses standardized processing to
achieve smooth rapid, General Reminders
high-volume flow • Check flow of
• Takes advantage of “specialization” • Inputs, Products, Resources, Outputs
• Requires closely tied processes • People & Information
• For Repetitive and Continuous • Improve production time and quality
• Minimize stress and movement
Advantage • Maximize space
• Very efficient
• Specialization What We Know So Far?
• Labor and Equipment • Layout is affected by the
are utilized process we have selected
• Three major layout kinds
Disadvantage • Product àContinuous & Repetitive
• Process àJob Shop & Batch
• Inflexible • Fixed
• Dull & Repetitive Task • Layout may provide strategic
àBoredom advantage to us
• Vulnerable to shut down
• Preventive
Maintenance
• Quick repair
Process Layout
• Designed to process items or provide
services that
involve variety of processing
requirements
• Discontinuous Workflow/ Intermittent
• Arranged by Type/ Department
• Skilled and Semi Skillled Workers
• Job Shop and Batch
• Ex: Hospitals, Research, Banks, Airlines,

Advantage
• Can handle variety
• Flexible
• Not Vulnerable
Disadvantage
• Inventory costs
• Equipment utilization is
low
• Relatively slow
• Complex jobs requires
superior skill
• Low Volumes

Fixed Layout
• Item being done remains stationary
• Construction Projects
• Ship Building
Combination
• Components (product/process),
assembled in fix layout