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Unit 7: Process Control Charts

example is grocery shopping at Morning Stores. The customer moves from one row to the Notes
next, making product selections and then paying at the end of the line.
2. In-house Production: High volumes make it more likely that the service provider will
minimize the processes that are outsourced.
3. Resource Flexibility: High process volumes and repetition create, less need skill levels that
are not high. Resources can be dedicated to each standardized service, and jobs are more
specialized.
4. Customer Involvement: The customer may be involved in performing self-service activities
or in selecting from standard service options rather than getting customized treatment.
Often, the customer is not present when the process is performed, as in the post office

described earlier. The little contact that occurs between employees and customers is for
standardized services.
5. Automation: High process volumes and the repetitive nature of the tasks allow more
automation. This may require high capital intensity. Where the customer is not involved
with the process, automation possibilities increase.
Low volumes typically mean the following:
1. Process: Such services require to be defined for each new project or job. These can change

considerably from one to the next. Customized treatment means a low-volumes process,
and each customer requires different changes in the process itself. Examples are processes
for physicians and restaurants. A good service operation understands unique individual
needs and accounts for it in the process.
2. Outsourcing: Low volumes make it more likely that the service provider will outsource
processes that can be executed better and cheaper outside.
3. Resource Flexibility: Employees must have high-skill levels and equipment should be
able to handle new or unique services on demand. There is an increased requirement for
versatility and flexibility to handle a wide array of customer requests.

4. Customer Involvement: Low volume is typical of high customer contact. Employees interact
frequently with customers, to understand each customer’s needs. They must also be able to
relate well to their customers. Service quality is assessed not merely on technical skills but
also on judgments the service personnel provide.
5. Capital Intensity: Custom is often very labor-intensive. The major problem with Indian
software companies is the high turnover of highly skilled workers. Equipment may require
little investment but more investment is in retaining skills.
These are general observations and there will be many exceptions. However, these relationships
provide a way of understanding how process decisions can be linked coherently.

7.6 Designing Processes

At the product conception stage, manufacturing proposes and investigates processes and

concepts. When the product concept has been finalized, the role of process management then is

to develop cost estimates, define process architecture, conduct process simulation and validate
suppliers.
Concurrently with the detailed product design, process management is involved in the designing
of the process, designing and developing tooling and participating in building full-scale
prototypes.

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