Chapter 9

1. Key determinants of process characteristics in operations

Process characteristics are influenced by factors like volume, variety, technology, and customer
demand. For example, in automobile manufacturing (high volume, low variety), the process
emphasizes standardization and automation. In contrast, a custom furniture shop (low volume, high
variety) uses flexible, skilled labor. Technology also plays a role; advanced robotics improves
efficiency in electronics manufacturing, while manual processes dominate handicrafts. Customer
demand impacts speed and quality expectations. These determinants decide whether processes
follow continuous, batch, or job shop systems. Thus, managers must align process choice with
demand, efficiency goals, and cost considerations to achieve operational effectiveness.

2. Relationship between volume, variety, and flow

Volume, variety, and flow are interlinked elements of process design. High volume with low variety
(e.g., packaged soft drinks) leads to standardized continuous flow systems. Low volume with high
variety (e.g., tailor-made clothes) requires flexible, job shop flow. Flow efficiency increases as variety
decreases. For instance, a bakery producing daily bread uses repetitive flow, while a bakery making
custom cakes adjusts processes for variety. Thus, operations managers must balance these factors—
volume defines scale, variety influences flexibility, and flow determines efficiency. Together, they
shape process layout, resource utilization, and customer satisfaction in both service and
manufacturing settings.

3. Continuous flow vs. intermittent flow systems

A continuous flow system involves uninterrupted production, usually for standardized products like
chemicals or petroleum. It emphasizes automation, efficiency, and high capital investment. An
intermittent flow system handles customized, low-volume production, such as machine workshops
or hospitals, where resources shift based on orders. For managers, continuous flow demands focus
on maintenance, cost control, and consistent quality, while intermittent systems require flexibility,
skilled labor, and effective scheduling. The main implication is that managers must choose based on
demand patterns—continuous flow maximizes efficiency for mass production, while intermittent
flow prioritizes adaptability and responsiveness to customer needs.

4. Examples and issues in different systems

 Mass production system: Automobiles, packaged foods, consumer electronics. Issues: cost
efficiency, maintaining uniform quality.

 Process industry: Cement, oil refining, paper manufacturing. Issues: safety, process
optimization.

 Intermittent flow system: Tailoring, machine repair, hospitals. Issues: scheduling, resource
utilization.

 Jumbled flow system: Furniture workshops, specialized printing, custom jewelry. Issues:
workflow management, lead time reduction.
 For managers, key concerns across these systems are balancing efficiency with flexibility and
ensuring cost-effectiveness without compromising quality or delivery timelines. Correct
system selection ensures alignment with organizational goals and customer expectations.

5. Process-product matrix

The process-product matrix links product volume and variety with process type. At one end, low
volume and high variety correspond to job shops and project-based processes (e.g., custom
machines). As volume increases and variety decreases, processes shift through batch production,
assembly lines, and finally to continuous flow for standardized products (e.g., steel, chemicals). The
matrix helps managers decide the right process to achieve cost efficiency, flexibility, and quality.
Misalignment—for example, using batch systems for high-volume products—leads to inefficiency.
Hence, the matrix serves as a guiding tool for strategic process design decisions in operations.

6. Quantitative vs. qualitative approaches in process layout

Quantitative approaches use mathematical models and tools like linear programming, simulation,
and flow analysis to optimize material movement, minimize cost, and improve efficiency. They are
data-driven and provide measurable solutions. Qualitative approaches rely on judgment, experience,
and heuristic methods, such as relationship diagrams or expert opinions, focusing on human
comfort, communication, and flexibility. While quantitative methods provide accuracy and cost
savings, qualitative approaches address softer factors like teamwork and adaptability. For managers,
the best practice is to combine both approaches—ensuring layouts are not only efficient but also
employee-friendly and responsive to change.

7. Performance measures of layout design

Performance measures include:

1. Material handling cost – minimizing distance and movement.

2. Space utilization – efficient use of floor area.

3. Workflow efficiency – smooth flow without bottlenecks.

4. Flexibility – ability to handle product or process changes.

5. Employee safety and satisfaction – ensuring ergonomic design.

6. Throughput and productivity – higher output with reduced cycle time.

These measures help managers evaluate whether the layout supports organizational goals. A
good layout balances cost efficiency, employee well-being, and responsiveness, thereby
improving operational excellence and customer satisfaction.

8. Steps of designing process layout

The process layout design follows systematic steps:

 1. Data collection – gather details of products, processes, and volumes.

2. Flow analysis – study material and information movement.

3. Space requirement – calculate floor area for each department.

4. Develop alternatives – prepare multiple layout options.

5. Evaluate alternatives – compare based on cost, flexibility, and safety.

6. Select and implement – finalize and execute the best option.

7. Monitor and improve – track performance for future adjustments.

This structured approach ensures efficiency, cost-effectiveness, and alignment with business
strategy.

9. Types of layouts and choice decisions

Types include:

1. Process layout – grouping by function (e.g., hospitals).

2. Product layout – arranged in sequence of operations (e.g., car assembly).

3. Fixed-position layout – product remains stationary (e.g., shipbuilding).

4. Cellular layout – grouping machines for specific product families.

Choice depends on factors like product volume, variety, cost, and flexibility. For example,
mass production suits product layout, while customized services fit process layouts.
Managers must select a layout that maximizes efficiency while meeting customer demand
and resource constraints.

Chapter 10

1. Key aspects of service process design vs. manufacturing design

Service process design emphasizes customer interaction, variability, and intangibility, unlike
manufacturing which focuses on physical product efficiency. Key aspects include customer contact,
service customization, and managing demand fluctuations. For example, a hospital must design
processes around patient needs, unlike a factory producing standardized goods. Services often
cannot be inventoried, so efficiency depends on employee skills and customer experience.
Manufacturing, on the other hand, aims for cost control, automation, and scale. Thus, service design
prioritizes responsiveness and satisfaction, while manufacturing prioritizes consistency and
productivity, though both share goals of quality and efficiency.

2. Importance of customer contact in service design

Customer contact defines how much the customer is involved in the delivery process. High-contact
services (like healthcare or restaurants) require greater customization, employee interaction, and
flexibility. Low-contact services (like online banking) rely more on automation and efficiency.
Understanding this helps managers design processes that balance customer satisfaction with cost
efficiency. For example, in a salon, personal interaction is key, while in ATMs, speed and reliability
matter more. Thus, customer contact influences staffing, technology use, and service delivery
models, making it a critical concept in service process design.

3. Importance of service blueprinting (Coffee Day example)

Service blueprinting visually maps out service delivery, highlighting customer interactions, support
processes, and potential failure points. For Café Coffee Day, the blueprint includes:

 Customer actions – ordering coffee, seating, payment.

 Frontstage – cashier taking orders, barista preparing drinks.

 Backstage – inventory handling, kitchen support.

 Support systems – billing software, supply chain.

This helps identify bottlenecks (e.g., long waiting times), ensures quality consistency, and
enhances customer experience. Blueprinting thus provides clarity for improvement and
smooth service delivery, making it a vital tool for service management.

4. Basic elements of a waiting line model & queuing systems

The waiting line (queue) model has four elements: arrival process (rate of customer arrivals), service
mechanism (servers and speed), queue discipline (order of service, like FIFO), and system capacity
(limits of queue). Queuing systems can be:

 Single channel, single phase – one server (ATM).

 Single channel, multiphase – sequential steps (car wash).

 Multichannel, single phase – multiple counters (bank).

 Multichannel, multiphase – hospitals with multiple departments.

These models help balance efficiency with customer satisfaction by managing service speed
and reducing waiting times.

5. Service positioning: labor intensity vs. interaction

Service positioning can be mapped using two dimensions: labor intensity and degree of customer
interaction/customization. For example:

 Low labor, low interaction – vending machines.

 High labor, low interaction – mass education.

 Low labor, high interaction – self-service apps.

 High labor, high interaction – hospitals.

This framework helps managers identify competitive positioning and resource needs. It also
shows trade-offs—high customization requires skilled staff and flexibility, while low-
 interaction services prioritize automation and efficiency. Proper positioning ensures balance
between cost, quality, and customer expectations.

6. Different aspects of service system

A service system includes:

1. Customer interface – how customers interact with the service (online, physical, hybrid).

2. Service operations – processes and activities that deliver value.

3. Technology support – IT tools for efficiency and monitoring.

4. Human resources – employee skills and behavior.

5. Capacity management – handling demand fluctuations.

6. Performance measures – quality, cost, and satisfaction.

Together, these aspects ensure services are efficient, customer-friendly, and adaptable. For
managers, designing service systems means balancing resources with customer expectations
and long-term business goals.

7. Service process designs by degree of customer contact

Service processes are classified into three designs:

1. High-contact systems – customers are directly involved (e.g., healthcare, education).

Processes must be flexible and interactive.

2. Medium-contact systems – partial involvement (e.g., retail shopping). Efficiency and

interaction are balanced.

3. Low-contact systems – minimal involvement (e.g., online ticket booking, ATMs). Processes
emphasize automation and cost efficiency.
This classification helps managers tailor strategies for staffing, technology, and customer
experience. High-contact designs focus on satisfaction, while low-contact systems focus on
speed and scale.