comparison of process structures and characteristics

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Different types of Process: Project: In a project, the inputs are brought to the project location as they are needed; there is no flow in the process.The firm brings together the resources as needed, coordinating them using project management techniques.Since there is no flow of product - the quantity produced usually is equal to one.Example: building construction Job Shop: Companies choosing a job process often bid for work. Typically, they make products to order and don't produce them ahead of time. The specific needs of the next customer are unknown, and the timing of repeat orders from the same customer is unpredictable. Each new order is handled as a single unit--as a job. Batch Process: Products are produced in batches, for example, to fill specific customer orders. A batch process executes different production runs for different products. The disadvantage is the setup time required to change from one product to the other, but the advantage is that some flexibility in product mix can be achieved Assembly Line Process: An assembly line processes work in fixed sequence. However, the assembly line connects the activities and paces them, for example, with a conveyor belt. A good example of an assembly line is an automobile plant. Continuous Process: Like the assembly line, a continuous flow process has a fixed pace and fixed sequence of activities. Rather than being processed in discrete steps, the product is processed in a continuous flow; its quantity tends to be measured in weight or volume. The direct labor content and associated skill is low, but the skill level required to oversee the

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Page 1: Comparison of process structures and characteristics

Different types of Process:Project:

In a project, the inputs are brought to the project location as they are needed; there is no flow in the process.The firm brings together the resources as needed, coordinating them using project management techniques.Since there is no flow of product - the quantity produced usually is equal to one.Example: building construction

Job Shop:

Companies choosing a job process often bid for work. Typically, they make products to order and don't produce them ahead of time. The specific needs of the next customer are unknown, and the timing of repeat orders from the same customer is unpredictable. Each new order is handled as a single unit--as a job.

Batch Process:

Products are produced in batches, for example, to fill specific customer orders. A batch process executes different production runs for different products. The disadvantage is the setup time required to change from one product to the other, but the advantage is that some flexibility in product mix can be achieved

Assembly Line Process:

An assembly line processes work in fixed sequence. However, the assembly line connects the activities and paces them, for example, with a conveyor belt. A good example of an assembly line is an automobile plant.

Continuous Process:

Like the assembly line, a continuous flow process has a fixed pace and fixed sequence of activities. Rather than being processed in discrete steps, the product is processed in a continuous flow; its quantity tends to be measured in weight or volume. The direct labor content and associated skill is low, but the skill level required to oversee the sophisticated equipment in the process may be high. Petroleum refineries and sugar processing facilities use a continuous flow process.

Page 2: Comparison of process structures and characteristics

Comparison of Process Structures and Characteristics

  ProjectJob

ShopBatch

ProcessAssembly

LineContinuous

Flow

Flow  None   Continuous

Flexibility   High   Low

No. of Products   High   Low

Capital Investment   Low   High

Variable Cost   High   Low

Labor Content   High   Low

Labor Skill   High   Low

Volume   Low   High

Project

Flow - no flow Flexibility - very high

Products - unique

Capital investment - very low

Variable cost - very high

Labor content and skill - very high

Volume - one

Job Shop

Flow - jumbled flow Flexibility - high

Products - many

Capital investment - low

Variable cost - high

Page 3: Comparison of process structures and characteristics

Labor content and skill - high

Volume - low

Batch Process

Flow - disconnected, with some dominant flows Flexibility - moderate

Products - several

Capital investment - moderate

Variable cost - moderate

Labor content and skill - moderate

Volume - moderate

Assembly Line Process

Flow - connected line Flexibility - low

Products - a few

Capital investment - high

Variable cost - low

Labor content and skill - low

Volume - high

Continuous Flow Process

Flow - continuous Flexibility - very low

Products - one

Capital investment - very high

Variable cost - very low

Labor content and skill - very low, but with skilled overseers

Page 4: Comparison of process structures and characteristics

Volume - very high

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