PROCESS

• PROCESS IS THAT PART OF AN I-P-O SYSTEM WITH A SEQUENCE OF

ACTIVITIES THAT IS INTENDED TO ACHIEVE SOME RESULT (OUTPUT) AND/OR
TO ADD VALUE FOR THE OUTPUT.
• IT IS A KNOWN FACT THAT PROCESS BASED DESIGN CHANGES IN A
PRODUCTION SYSTEM ARE LONG LASTING THAN THE PRODUCT BASED
DESIGN CHANGES
 PROCESS SELECTION
• REFERS TO THE STRATEGIC DECISIONS OF SELECTING THE KIND OF PRODUCTION
PROCESS TO HAVE IN A MANUFACTURING PLAN
• REFERS TO THE WAY, IN WHICH THE PRODUCTION OF GOODS AND SERVICES ARE
ORGANIZED.
• IT IS MAKE THE VITAL DECISIONS SUCH AS
◆ CAPACITY PLANNING
◆ FACILITIES LAYOUT
◆ EQUIPMENT AND DESIGN OF WORK SYSTEM
IMPORTANCE OF SELECTION
PROCESS
1. SP ALLOWS AN ORGANIZATION TO OFFER A SAFE AND RELIABLE PRODUCT AND
SERVICES PRAGMATIC DESIGN AND EFFECTIVE CAPACITY PLANNING.
2. WE CAN UNDERSTAND THE DIFFERENT TYPES OF PROCESSING
3. SP ALLOWS AN OPERATION MANAGER TO BETTER UNDERSTAND THE NEED FOR
MANAGEMENT OF TECHNOLOGY.
4. IT HELPS AN ORGANIZATION TO DEVELOP DIFFERENT APPROACHES TO MEET THE
IRREGULAR DEMAND PATTERN OF THE CUSTOMERS.
PROCESS PLANNING

• IS CONCERNED WITH PLANNING THE MOST SUITABLE CONVERSION

PROCESS/ES REQUIRED TO CONVERT THE RM INTO FG.
• CONSIST OF PROCESS DESIGN AND OPERATION DESIGN.
FRAMEWORK OF PROCESS DESIGN

• EXPECTED VOLUME OF OUTPUT AND QUALITY LEVEL/STANDARD

• PRODUCT CHARACTERISTICS AS PER CUSTOMER NEEDS
• KIND OF LABOR SKILL AVAILABLE
• COST OF PROPERTY, MACHINE AND EQUIPMENT
• MAKE OR BUY DECISION
• ECONOMICAL HANDLING OR MATERIAL REQUIRED
PROCESS DESIGN

• INVOLVES WITH OVERALL SEQUENCES OF OPERATIONS REQUIRED TO ACHIEVE

THE REQUIRED PRODUCT SPECIFICATION
• THE SEQUENCE IS DETERMINED BY PRODUCT NATURE, RAW MATERIALS USED,
QUALITY AND QUANTITY REQUIRED
OPERATION DESIGN

◆ IT IS CONCERNED WITH THE DESIGN OF THE INDIVIDUAL MANUFACTURING

OPERATION
◆ IT EXAMINES LABOUR REQUIREMENTS, MACHINE TIME REQUIREMENT ETC.
PROCESS STRATEGY

• IT IS A FIRM'S APPROACH TO PROCESS SELECTION FOR THE PURPOSE OF

TRANSFORMING "RESOURCE INPUT" INTO GOODS AND SERVICES.
• PROCESS STRATEGY SHALL CONTAIN THE FF.
》CAPITAL INTENSIVE
》PROCESS FLEXIBILITY
》MAKE OR BUY ANALYSIS
CAPITAL INTENSIVE

• A MIX OF EQUIPMENT AND LABOR USED BY THE FIRM THAT BEARS A COST TO
THE FIRM
PROCESS FLEXIBILITY

• THE DEGREE TO WHICH THE PROCESS SYSTEM CAN ADJUST TO CHANGES IN

PROCESSING NEEDS.
MAKE OR BUY ANALYSIS

• IN-HOUSE OR OUTSOURCING
FACTORS CONSIDERED IN MAKE OR
BUY ANALYSIS
• AVAILABLE CAPACITY/RESOURCES
• QUALITY CONSIDERATION AND DESIRED LEVEL
• EXPERTISE (OF R&D) AND COMPETENCY
• NATURE OF DEMAND
• COST OF PRODUCTION