1. Operations Management
Jones & Robinson
Operations Management
Chapter 3
Operations Processes
and Life Cycles

2. Learning Objectives Explain how process types have evolved
Define and explain process choice
Explain the role of operations management during the stages of the product life cycle
Explain the role of operations management during the stages of the service firm life cycle

3. Evolution of Process Types
Craft Era: before the industrial revolution and characterised by artisans making customised goods usually from their own small businesses
Many of these process types are still in use today:
Simple project – e.g. simple house construction, large sculptures. Nowadays even management consulting or hairdressing
Job shop – e.g. auto repair shop, General Practitioner, eye glasses or jewellery making
Batch process – e.g. pharmaceuticals, wine making, wood or plastic products

4. Evolution of Process Types
Mass Production Era: after the industrial revolution the following process types emerged:
Complex projects – e.g. large scale bridge or road building, exploration of outer space
Batch production – e.g. printing shop, hospital outpatients, classroom based education
Assembly line – e.g. domestic white goods, computers, automotive assembly
Flow process – e.g. paper manufacturing, oil and steel production

5. Evolution of Process Types

6. Evolution of Process Types
Strategic Operations Era: much more is required of business to meet the increasing demands of customers. This led to:
Lean production – e.g. Toyota; the removal of all waste from processes
Agile manufacturing – e.g. Benetton; the ability to alter any aspect of an operation to meet demands
Mass customization – e.g. Dell; low cost goods customized for individual customers
Innovation and continuous improvement (CI) – e.g. Dyson, Virgin Atlantic; innovation is rapid and significant change. CI is incremental change

7. Process Type and Process Choice

8. Process Types in Materials Processing Operations
This identifies the standard variety / volume mix of Hayes and Wheelwright (1979)
together with the move to a more strategic management approach in recent years

9. Process Types in Customer Processing Operations
This identifies the standard variety / volume mix of Silvestro et al. (1992) together
with the move to a more strategic management approach in recent years

10. Characteristics of Process Type

11. Product Life Cycle
Introduction
Growth
Maturity
Saturation
Decline

12. Product Life Cycle

13. Service Firm Life Cycle
Entrepreneurship
Multi-site rationalization
Growth
Maturity
Decline

14. OM Issues during the Service Firm Life Cycle

15. Summary
Operations have developed from simple craft projects through to job shops and batch production.
The industrial revolution brought the opportunity to mass produce goods using assembly line processes.
Modern businesses have now developed strategic operations strategies based mainly on providing higher volumes with more customer choice, such as mass customization.
The product life cycle has 4 stages:
introduction growth maturity and decline

16. Summary The service firm life cycle has 5 stages:
entrepreneurial stage
multi-site rationalization
growth
maturity
decline