Sunday, 3 November 2013

Process flow structures, MBA Operations Notes, Operations,

Process flow structures



The structure of the process flow used to make or provide a diagram of installation impacts product or service, the resources, the technology decisions and methods of work. The architecture of process can be an important element in the strategy of the company for the creation of a competitive advantage.
When characterized by its structure of flow, a process can largely be classified as a workshop or a flow shop. A shop employment process uses the resources of general use and is very flexible. A process of flow shop uses specialized resources and work follows a fixed trajectory. Therefore, a store of flow is less flexible than a work shop.
Finer distinctions can be made in the structure of process as follows:
• Project - example: construction of buildings
• Job shop - example: printing
• Processing batch - example: bakery
• Assembly line - example: automobile production line
• Continuous flow - example: oil refinery

These process structures differ in several respects, such as:
• Flow - ranging from a large number of possible sequences of activities and that a sequence as possible.
• Flexibility - a process is flexible to the extent that the performance of the process and the cost is independent of changes in the output. Changes can be changes in the volume of production or product range.
• Number of products - ranging from the ability to produce a multitude of different products in the production of a specific product.
• Capital investment — from using material of generalist cost less than the expensive specialized equipment.
• Cost Variable - ranging from a unit cost on a unit cost low.
• Job content and skill - ranging working high content with great skill to low skill content and low.
• Volume - up to a quantity of large-scale mass production.
It is interesting to note that these aspects generally increase or decrease monotonically when switching between the extremes of process structures. The following table shows how the characteristics of the process vary with the structure.
Comparison of process Structures and characteristics
The following sections describe each of the architectures, highlighting their characteristics.
Project

• Flow - no flow• Flexibility - very high• Products - unique• Capital investment - very low• Cost Variable - very high• The content of work and skills - very high• Volume - a


In a project, the entries are presented in the location of the project, because they are needed; There's no flow in the process. Technically, a project is not a process flow structure because there is no flow of the product - the quantity normally produced is equal to one. However, it should be to treat it as a structure of process here since it represents one extreme of the spectrum.
Projects are suitable for the unique products that are different every time that they are produced. Cabinet brings together resources according to needs, coordinate them using project management techniques.
Job Shop
• Flow - rate collage

• Flexibility – high• Products - many• Capital investment - low• Cost Variable - high• The content of work and skills - high• Volume - down


A workshop is a flexible operation that has several activities through which work can pass. In a workshop, it is not necessary for all activities to be performed on all products, and their sequence may be different for different products.
To illustrate the concept of a workshop, consider the case of a machine shop. In a machine shop, a variety of equipment such as drills, lathes and milling machines is organized in the stations. Work is only transmitted to these machines required by it and the sequence required by it. It is a very flexible arrangement that can be used for a wide variety of products.
A workshop used for general purpose equipment and relies on the knowledge of workers to produce a variety of products. Volume is adjusted by the addition or removal of work according to the needs. Workshops are low in efficiency but rich in flexibility. Rather than selling specific products, a workshop often sells its capabilities.
Batch processing.
• Flow - disconnected, with some dominant stream
• Flexibility - moderate
• Products - more
• Capital investment - moderate
• Cost Variable - moderate
• The content of work and skills - moderate
• Volume - moderate

Batch processing is similar to a workshop, but the sequence of activities tend to be online and offers less flexibility. In a discontinuous process, dominant streams can be identified. All online activities are disconnected from one another. Products are batch, for example, to fill a specific customer orders.
A batch executes different sets for different products. The disadvantage is the time required to switch from one product to the next, but the advantage is that a certain flexibility in the product range can be achieved.
Assembly line process
• Flow - line connected
• Flexibility - bass
• Products - some
• Capital investment - high
• Cost Variable - bass
• The content of work and skills - low
• Volume - high

As a batch process, fixed a line of process work in sequence Assembly. However, the Assembly line connects the activities and do the hundred steps, for example, with a treadmill. A good example of an assembly line is a car factory.
Continuous flow process
• Continuous - flow
• Flexibility - very low
• Products - a
• Capital investment - very high
• Cost Variable - very low
• Content and skills - very low labour, but with qualified auditors
• Volume - very high

As the Assembly line, a continuous flow process has a fixed pace and sets the sequence of activities. Rather than be handled by discrete steps, the product is processed in a continuous stream; its quantity tends to be measured by weight or volume. Hand of direct labour content and the competence associated with is low, but the level of competence required to oversee the sophisticated equipment in the process can be high. Oil refineries and sugar processing plants use a continuous flow process.
Selection process

The main determinants of optimal process are the variety of products and volume. The amount of capital that the company is willing or able to invest may also be a factor, and there is often a compromise between fixed and variable costs.
The choice of the process may depend on the company's marketing plans and business strategy to develop a competitive advantage. From a marketing point of view, a workshop allows the company to sell its capabilities, while the production of flow-shop focuses on the product itself. From the point of view a competitive advantage, a workshop helps a company to follow a strategy of differentiation, while a flow shop is suitable for a low price strategy.
The choice of process may depend on the stage of the life cycle of the product. In 1979 Robert H. Hayes and Steven C. Wheelwright have a matrix of product-process concerning the selection process at the stage of the product life cycle. For example, at the beginning of the product life cycle, a workshop may be a more appropriate structure to quickly meet the demands of early and adapt to changes in the design. When the product reaches maturity, high volumes can justify an assembly line, and in the phase of decline, a batch may be more appropriate than the fall of the volumes of product and a variety of spare parts is necessary.
The optimal process also depends on the local economy. The cost of labor, energy, equipment, transport and all can influence the selection process.
Cost-benefit analysis may be carried out to help in the selection process. A graphic balance reported the cost at the application level in various processes and the selection is made based on anticipated demand.

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