Process Types and Strategies

Choice of process types is a strategic decision in Operations Management. Answer the following and include references to this week's course materials, specifically "Operations Management Reading: Designing, Managing, and Improving Operations," to support your response.

• Identify2 different processes used in your industry and classify theminto process types such as job shop, batch processing, assembly line, etc.Explain the rationale for your process type classifications.

Mine Loading & Hauling:

The first identified process relates to a Worker-Paced Line. Workers with mobile mining equipment perform the loading and hauling function of blasted ore and waste in a specified sequence within the mine. (1) The rate of product flow is paced by workers themselves ito loading and hauling rates of the mining equipment. (1) These worker-paced lines are classified as batch processes because every blasted muck pile is viewed as a batch within the mine that is loaded and hauled separately before moving on to the next blasted muck pile. Not having sufficient blasted muck piles will result in the worker-paced line coming to a stop.

Ore Crushing & Screening:

The following identified process step relates to a Continuous-Flow Process. The Continuous flow process (CFP) closely resembles machine-paced lines in that they produce a relatively narrow range of products using a tightly linked, machine-paced sequence of steps. (1) CFPs produce a narrower set of products that flows continuously. (1) Output is denoted in numbers of units, in our case, tons per hour. (1) CFPs are typically highly capital intensive, using technology to produce a standardized product. (1) To amortize the high capital costs, CFPs strive for high volume and machine utilization. (1) CFPs run 24/7, often for months before lengthy shutdowns for cleaning and maintenance. (1)

The mined ore is tipped into a crusher for size reduction, conveyed to screens via conveyor belts, whereafter the crushed ore is stockpiled using an automated stacker facility. When the stockpiled ore is required to be loaded, it is automatically reclaimed with an automated reclaimer and conveyed to an automated silo rail load-out facility.

• Which companies or similar organizations in your industry would you consider to be recognized leaders in any of these process types? How does that compare to your organization?

Competitors use similar crushing and screening facilities. However, it is common knowledge in the industry that our operation has the most technologically advanced crushed ore stacking, reclaiming, and load-out station installed. Loading of rail wagons is typically performed at 50% faster than our competitors, making our mine the obvious choice when loading trains in high demand. Although the capital investment was massive, the payback over time justifies the investment from efficiency and cost-saving perspective.

• What should management focus on in managing those process types?

Management's focus on managing the worker-paced lines relates to designing tasks to minimize delays, minimize idle time and eliminate bottlenecks. (1) Ensuring multiple loading positions, access routes, matching fleet allocation, and sufficient dumping space reduces delays. Further management ensures a sufficient fleet is available at all times to maximize the production rate considering breakdowns, planned maintenance, refueling, and operator attendance. Finally, an ongoing managerial challenge is building workers' skills to allow for cross-training and emphasizing team development. (1)

Management's focus on managing the continuous-flow process lines relates to ensuring the line is continuously running. (1) Downtime may be expensive, and restarting the line is time-consuming. (1) Downtime cuts into capacity and increases unit costs. (1) It remains essential to schedule sufficient planned maintenance to prevent equipment breakdowns and produce a poor quality product. (1)

References:

1. Roy D. Shapiro. September 2013. Operations Management Reading: Designing, Managing and Improving Operations.

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