Comparison of process structures and characteristics
- 1. 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.
- 2. Comparison of Process Structures and Characteristics Job Batch Assembly Continuous Project Shop Process Line 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 • Labor content and skill - high • Volume - low
- 3. 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 • Volume - very high .