What is a Process Structure?
Characteristics
Examples
Selecting the Right Process Structure
What is a process structure?
Process structure falls under the category of process management. A process structure determines if resources are organized according to their products or process. It is important to realize that a process structure should match the company’s strategy and competitive priorities. In the end the process structure should add value to the customer.
Process structure categories:
Ø Project
Ø Job Shop
Ø Batch
Ø Assembly Line
Ø Continuous Flow
Characteristics of each process structure:
Project
Project process has high customization and provides products in low volumes. Normally each product that is produced is specialized according the customers needs and wants. In order to complete a project process a company will normally need to bring in specialized resources. Projects also require workers with specialized skills in order to complete the product or service. This process normally has low capital intensity and high flexibility.
Job Shop
A job shop has low volume with high customization. In this structure there are specific processing steps that are preformed which are different for each product. Workers in this process structure are highly skilled and are able to use different machinery. Job shops are highly flexible and have low capital investment.
Batch
A batch process produces products in batches. Quantities are small to moderate and are some what flexible causing moderate customization.
Assembly Line
A line process has standardized customization and volume. An assembly line uses a line flow of information and material. Companies that use this process generally use a make-to-stock strategy. A line also involves a high amount of capital investment.
Continuous Flow
Continuous flow has a fixed amount of steps for producing each product. This process structure produces high volumes with standardized products. It also has low flexibility and involves high capital investment. With continuous flow manufacturers want to maximize utilization to avoid unnecessary expenses.
Examples
Project: Building a house
Job Shop: Paint shops
Batch: A Bakery
Line: Cafeteria Line
Continuous Flow: Oil Refinery
Selecting the Right Process Structure
If the process requires customization with low volume use a project, job shop or batch process.
If the process requires standardize products in high volumes use an assembly line or continuous flow process.
References:
Ritzman,L.P.(2007).Foundations of Operations Management. Pearson Prentice Hall.
"Job Shop." Answers.Com. Wiki Answers. 24 Feb. 2008
"Process Flow Structure." Net MBA Business Knowledge Center. 2007. 24 Feb. 2008
British Columbia Institute of Technology
Operations Management Program
