Manegement - Process Strategy

Process Strategy Organization's approach to transforming resources into goods and services. Objective is to create a process that can produce offerings that meet customer requirements within cost and other managerial constraints. 1. Describe four production processes Process Focus - projects. Job shops (machine, print, hospitals, restaurants) Vast majority of global production devoted to low-volume, highvariety products--> Arnold Palmer Hospital; many inputs --. Many departments and routings--> many different outputs Repetitive focus - autos, motorcycles, home appliances Product focus - commercial baked goods, steel, glass beer Mass customization 2. Compute crossover points for different processes 3. Use several tools of process analysis Identify or Define: • Process focus • Repetitive focus • Product focus • Mass customization Added comments • Understand three basic process strategies: Process-focused, repetitive, and product focus ○ Process-focused is high variety, low-volume ○ Repetitive is a repetitive process, with changes in modules (less flexible) -- classic assembly line -- both product-focused, lowvolume, high-variety, but less flexibility ○ Product focused is high volume, low variety processes. § Long, continuous production runs § Glass, paper, tin sheets, lightbulbs beer and potato chips Know how to characterize these three process strategies with regard • • Know how to characterize these three process strategies with regard to volume, variety, flexibility and equipment utilization • Know the various names used to describe these processes (i.e., job shop (process), ass’y line (repetitive), continuous flow (product), ect....) as well as some of the major issues affecting these processes Understand the major characteristics of Mass customization. How does mass customization relate to the three basic strategies? ○ Products from a process focused (low-volume), cost of standardized (high-volume). Requires sophisticated operational capabilities. • • • • Identify a few typical questions brought up within process analysis and design ○ Is the process designed to achieve competitive advantage in differentiation, response or low cost? ○ Does the process eliminate steps that do not add value? ○ Does the process maximize customer value as perceived by the customer? ○ Will the process win orders? Understand the basic concepts for the tools of process design paying particular attention to crossover charts, flow diagrams, and service blueprints. ○ Flow chart; schema or drawing of the movement of material, product or people ○ Crossover Charts: the comparison of processes can be further enhanced by looking at the point where the total cost of the processes changes. § Process A has the lowest cost volumes below V1, process B has the lowest cost between V1 and V2, process C has the lowest cost at volumes above V2 Review ‘Self Test’ questions found on page 296 of text. ○ Low-volume, high-variety processes aka: § process-focused ○ A crossover chart for process selection focuses on: § fixed and variable costs ○ Tools for process analysis include all of the following but: B. Vision systems ○ Customer feedback in process design is lower as: § C - the degree of customization is lowered ○ Computer-integrated manufacturing (CIM) includes manufacturing systems that have: § A - computer-aided design, direct numerical control machines, and material-handling equipment controlled by automation