Process Lock-in: Crafting Efficiency and Precision in Process Design

Crafting Efficiency and Precision in Process Design

Process design is the intermediary between product and/or service information and process understanding; it is not just what it looks like or feels like but how the people will perform excellently, how the process will execute efficiently and how the equipment will operate effectively.

At the onset of a process design activity, it is usually good to expose the design objectives which should align closely with the performance goals of the organization and the specific requirements of the products or services being created. These objectives encompass quality, speed, dependability, flexibility, and cost performance. Operations performance objectives directly influence process design goals.

The best way to position this is to identify the volumes and variety characteristics. At a detailed level, process design must optimize flow through the system. This involves managing throughput rate, throughput time, work-in-progress, and resource utilization. Throughput rate measures the volume of items passing through the process per unit of time, while cycle time indicates the time between items emerging from the process.

Throughput time reflects the average time for inputs to move through the process. The number of items in the process at any given time, termed work-in-progress, also requires management. Additionally, optimizing resource utilization ensures that process resources are efficiently employed, maximizing productivity.

Standardizing processes involves adopting a common sequence of activities, methods, and equipment, which can lead to significant advantages in productivity and precision. However, not all processes can be standardized, and organizations face the challenge of determining which processes require standardization and which can remain flexible.

Environmentally sensitive process design focuses on fundamental issues such as the sources of inputs, energy consumption, waste generation, product lifespan, and end-of-life disposal. Product life-cycle analysis evaluates the total energy used and waste emitted at every stage of a product or service's creation, from raw material extraction to final disposal.

Process types and the volume-variety effect on process design

Processes vary in terms of both volume and variety, with high-volume processes typically producing a limited range of products or services, while low-volume processes often offer a wide variety. This volume-variety relationship forms a continuum, from low volume/high variety to high volume/low variety.

Understanding a process's position on this continuum is crucial for its design and management. No single process design suits all requirements; instead, different products or services demand specific process types.

Process types can be categorized into manufacturing and service perspectives, each tailored to address the unique demands of their respective volume-variety positions. Identifying the sweet spot on the volume-variety spectrum guides the optimal design and management of processes as illustrated in the figure below.

Volume - Variety Continuum

Manufacturing Process Types 

There are five primary manufacturing process types based on the location of the sweet spot on the continuum, they are: Project processes, Jobbing processes, Batch processes, Mass Processes and Continuous Processes.

Manufacturing Process Types

1. Project Processes: They handle unique, customized products with distinct start and finish points. Each project may require specialized resources and entails complex, discretionary activities driven by professional judgment.

2. Jobbing Processes: Here, resources are shared among multiple products, leading to less exclusivity. While still complex, jobbing processes often involve physically smaller products and fewer unpredictable circumstances.

3. Batch Processes: They produce more than one item at a time, leading to repetitive activities during batch processing. Batch size influences the degree of repetition, ranging from resembling jobbing processes for small batches to being fairly repetitive for large, familiar batches.

4. Mass Processes: These produce items in high volume and narrow variety. These processes are characterized by repetitive and predictable activities, with variants typically not affecting the core production process.

5. Continuous Processes: Operating at even higher volumes and lower variety than mass processes, continuous processes often run for extended periods, with products flowing seamlessly through the process. These processes feature highly predictable flow and capital-intensive technologies.

Service Process Types

Service process types are also determined by their position on the volume-variety continuum and are categorized into three main types:

1. Professional Services: These processes involve high customer contact and offer extensive customization to meet individual needs. Professional services are typically people-oriented, with staff granted substantial freedom in serving customers.

2. Service Shops: Service shops operate between the extremes of professional and mass services in terms of volume, variety, customer contact, customization, and staff discretion. They combine front- and back-office activities to deliver services.

3. Mass Services: Mass services cater to a large volume of transactions with limited customer contact and minimal customization. Staff roles are often defined, and procedures are followed rigorously.

The product/service–process matrix

The product/service – process matrix illustrates the relationship between a process's volume-variety position and its design characteristics. Most processes should align closely with the diagonal of the matrix, known as the "line of best fit," to minimize excess costs. Deviating from this line can lead to either over-standardization or excessive flexibility, resulting in higher costs and inefficiencies.

Product/Service - Process Line of best fit relationship

Process mapping is also essential for understanding the behavior of a process. It involves identifying individual activities, determining their sequence, and assigning responsibilities. This detailed design ensures that processes effectively meet their objectives and adapt to changes in volume-variety positions over time.

Process design serves as a vital link between product/service requirements and operational excellence. By aligning design objectives with organizational goals and product/service specifics, optimizing flow, and understanding volume-variety dynamics, organizations can tailor processes to maximize efficiency, productivity, and cost-effectiveness. Whether in manufacturing or services, embracing the volume-variety continuum and selecting appropriate process types ensures optimal performance. Moreover, strategic standardization and environmental consciousness enhances process effectiveness and sustainability. Through meticulous process mapping and alignment with the product/service – process matrix, organizations can overcome complexity, minimize costs, and adapt to changing demands, ensuring sustained success in the operational excellence.