The selection of the type of process to be used to provide a product or service. Options range from a one-off project approach (e.g. custom-made furniture by a craftsperson), through batch production, to continuous processing that produces large volumes over long periods, e.g. a cement kiln. The process decision usually commits an organization to significant capital expenditure. Each option involves a different combination of workforce skills and job-design issues, planning and control problems, inventory, and scheduling criteria. The option chosen must therefore fit with the method used by the organization to win orders. For example, a decision to compete in a large-volume low-cost market suggests the need for a mass-production line-flow process.
Subjects: Business and Management.