Chapter 04 – Process Selection
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Chapter 4
Process Selection
Teaching Notes
The purpose of this chapter is to describe the major types of processes available and the
factors that should be considered in any process selection decision. Two major dimensions of
process classification are considered; flow of the product, and type of customer order. The
product-process matrix, formulated by Hayes and Wheelwright, provides a basis for process
selection by linking product-process and corporate strategy. Focused Operations, Mass
Customization and 3D Printing are also covered as part of process selection decisions.
In teaching this chapter, we give examples of different types of processes and their major
characteristics. We also emphasize the interaction between product and process through the
product-process matrix. Students often have many questions about this matrix and they find the
product-process relationships quite interesting. We frequently find one or more students who
feel they have gained insight about marketing policy as a result of thinking about process
selection decisions. The focused operation section follows quite easily from the product-process
matrix. Mass customization and 3D Printing are treated as a new type of process and product
combination. The Internet exercises are virtual plant tours that students find very interesting. By
using these exercises students can be exposed to real processes in operations.
Answer to Questions
1. a. Doctor’s office – job shop or project. All patients do not require the same
procedures, namely the service(s) offered are custom in nature.
b. Automatic car wash – assembly line flow. There is a linear sequence of
Chapter 04 – Process Selection
2. Reasons for efficiency, but less flexibility of the line than the batch process:
a. Standardization of tasks
3. Yes, the rate of productivity improvement in the service industries can be partly
attributed to process selection decisions. Service industries typically select a batch or
project process to provide customized service. This is usually less efficient than the
assembly line or continuous process approach.
The problems in using more efficient processes in the service industries are:
– Possible customer dissatisfaction with standardized product
4. Some companies in these industries have, of course, progressed down the diagonal. On
the whole, however, these industries remain in the upper left quadrant.
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5.
Fast Food Expensive
Product Cafeteria Restaurant Restaurant
Order type Large Batch Batch Batch or single
Portion
6. They will, of course, have to develop an inventory. This will require storage and
inventory control procedures.
– They will need to develop standard product lines.
Chapter 04 – Process Selection
7. Distinctive Competence Product/Process
a. McDonald’s Fast, inexpensive, Product
Restaurant consistent food, pleasant &
8. Some of the concerns that other functions of the firm might have when it considers
moving from a batch process to a assembly line process are:
Marketing – Can the higher volumes of product and more restricted variety be sold?
9. Answers will vary based on different sources students will use.
Nike launched NikeID, a website that allows customers to order a growing number of
personalized running shoes and cross trainers. Hoping to avoid the manufacturing and
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10. There are three forms of mass customization: modular production, fast changeover, and
postponement of options. Information technology and computer equipment are essential
11. There are many applications of 3D Printing on the Internet. Some examples are from:
12. Economies of scale are based on producing high volumes of a standardized common
13. Classic signs of an unfocused operation:
a. Operations viewed as just a place to produce the company’s products, rather than
providing a competitive advantage.
b. Uncoordinated decisions made according to implicit goals such as minimum cost
14. Organizing a plant-within-a-plant has several drawbacks. Some economies of scale can
be forfeited as a result of smaller-scale production, use of special purpose equipment that
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mission. The result of a focused operation is a consistent set of cost, delivery, quality and
flexibility objectives.
15. Operations should be concerned with environmental issues because in most companies
sustainability is a critical objective and strategy for operations and the supply chain. The
16. The main ways in which processes are managed to accommodate environmental
regulations is to focus on pollution prevention, control or practices. Pollution prevention
is achieved by using new technologies resulting in less air and water pollution, fewer