Process Design

Harry Kogetsidis

School of Business

Lecture’s topics

• What is process design and why is it

important?

• What are the main process types?
• How can simulation modelling help in

process design?

Process Design

A

process

is an arrangement of resources

that

make a product.

Process Design

Process design

is about conceiving the looks,

arrangement and workings of a process

before it is

created.

Process Design

Selecting a process type is a strategic decision

for

the organisation, as it usually represents a

large

amount of capital investment in terms of

equipment

and human resources.

e.g. a car manufacturer building a new assembly
line.

Process Types

Different process types have been

suggested

depending on

certain product

characteristics

.

variety

volume

Manufacturing Process Types

Project processes

House builders

Project processes

• Are used to make one-off products to a customer

specification.

• Require transforming resources to move to the

location of the product.

• Transforming resources typically comprise general-

purpose equipment that can be used on a number
of projects.

• Normally consist of many activities and require a

problem-solving approach.

Examples: building a house, writing a book, making a movie.

Jobbing processes

Makers of custom-built furniture

Jobbing processes

• Are used to make one-off, or low volume,

products to a customer specification.

• Require the product to move to the location of the

transforming resources.

• Transforming resources are shared between

different products.

• Require the use of skilled labour in order to cope

with the need for customisation (variety) of the
finished product.

Examples: makers of custom-built furniture, tailors.

Batch processes

Bakers

Batch processes

• Group products into batches, whose batch size can

range from two to hundreds.

• Require the product to move to the location of the

transforming resources.

• Transforming resources are shared between different

batches.

• Batch processes can reduce delays and costs by

making more units of each product in each run, with
any units not needed for current orders put into a
stock of finished
products.

Example: bakeries.

Mass processes

Car manufacturers

Mass processes

• Make products of low variety and high volume.
• There is little variety in the product except small

changes to the basic model introduced in the
finishing.

• Production process broken down into a number of

small, simple tasks.

• Setting up of equipment is minimised (high

utilisation).

Examples: car manufacturers, computer manufacturers.

Continuous processes

Electricity production

Continuous processes

• Make a standard product of a very high volume.
• A large amount of equipment is used, which is

dedicated to producing a single product.

• To make this large investment in equipment cost-

effective, continuous processes are often in
operation 24 hours a day.

• The role of labour is mainly one of monitoring and

control of the process equipment with little
contact with the product itself.

Examples: oil refinery, steel making, electricity production.

Manufacturing Process Types

Which of the five manufacturing process

types are

customer-to-order

systems and which ones

are

make-to-stock

systems?

Manufacturing Process Types

Project processes

Jobbing processes

Batch processes

Mass processes

Continuous processes

Service Process Types

Professional Service processes

Doctors

Professional Service processes

• Operate with high variety and low volume.
• Each service delivery is tailored to meet

individual customer needs (high customisation).

• High level of communication between service

provider and customer and therefore a high level
of customer contact.

• The emphasis is on the service delivery process

itself rather than a tangible item associated with
that service.

Examples: Services provided by doctors, architects,

accountants etc.

Service Shop processes

Small s

hops

Service Shop processes

• Operate with medium variety and medium volume.
• Some customisation of the service to individual

customer needs but not as extensive as in
professional services.

• A high level of customer contact but not as

significant as in professional service processes.

• The emphasis is both on the service delivery

process itself and on any tangible items that are
associated with that service.

Examples: Services provided by shops, banks, schools, hospitals

etc.

Mass Service processes

Supermarkets

Mass Service processes

• Operate with low variety and high volume.
• Little customisation of the service to individual

customer needs.

• Low level of customer contact.
• The emphasis is on the tangible item that is

associated with the service delivery process.

Examples: Services provided by supermarkets, cinemas,

airports etc.

Simulation modelling

Simulation

is a modelling approach which

attempts

to imitate the dynamic operations of a real-

world

system.

It can help organisations design their

processes

effectively and efficiently.

Simulation examples

Simulation examples

Simulation examples