Process Choice refers to the decision about what type of production process should be used to convert inputs into outputs. The choice depends on factors like volume of production, variety of products, nature of demand, degree of customization and cost. A wrong process choice leads to high cost, delays and poor quality. There are four main process choices arranged in order of increasing volume and decreasing variety: Project Process, Batch Process, Mass Process and Continuous Process. As we move from project to continuous, volume increases, variety decreases, and automation and standardization increase.
1. Project Process
In the Project Process, each product is unique, large, complex and made one at a time for a specific customer. Production is not repetitive and requires high skill, flexibility and coordination. Examples include construction of a building, shipbuilding, making a movie or organizing a wedding. The process is temporary and ends after completion of the project. The advantage is high customization and customer satisfaction. However, cost is very high, time is long and planning is difficult. It is suitable when volume is very low, variety is very high and the product is large and complex.
2. Batch Process
In the Batch Process, products are made in groups or batches of similar items. After one batch is completed, machines are reset for the next batch. It is suitable for moderate volume and moderate variety. Examples include bakery products, garments, books, medicines and paints. It provides more variety than mass production and lower cost than project production. However, it needs frequent machine setup, higher work-in-progress inventory and complex scheduling. It is flexible and allows production of different products on the same equipment, making it ideal for companies producing many products in limited quantities.
3. Mass Process
In the Mass Process, a large quantity of standardized products is produced continuously using an assembly line. There is high specialization, division of labour and use of special-purpose machines. Examples include automobiles, mobile phones, televisions and bottled drinks. The main advantage is very low per-unit cost due to economies of scale, high speed and uniform quality. However, it needs huge capital investment, has low flexibility and any breakdown stops the whole line. It is suitable when demand is very high, product design is stable and variety is low.
4. Continuous Process
In the Continuous Process, production runs without interruption, 24 hours a day, with a fixed sequence of operations. Raw materials flow continuously and are converted into finished products. Examples include oil refineries, sugar factories, cement plants and chemical industries. It has the highest volume, lowest variety and highest automation. The advantages are maximum utilization of machines, very low per-unit cost and consistent quality. The disadvantages are very high capital investment, no flexibility and heavy loss if a machine breaks down. It requires continuous demand and accurate planning.
