3 – 1 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Process Strategy 3.
-
Upload
clark-codling -
Category
Documents
-
view
214 -
download
0
Transcript of 3 – 1 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Process Strategy 3.
3 – 1Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
Process StrategyProcess Strategy3
3 – 2Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
Process Strategy DecisionsProcess Strategy Decisions
Figure 3.1 – Major Decisions for Effective Processes
D1. Process Structure• Customer-contract position
(services)• Product-process position
(manufacturing)• Layout
D3. Resource Flexibility• Specialized• Enlarged
D2. Customer Involvement• Low involvement• High involvement
Effective Process Design
Strategy for Change• Process reengineering• Process improvement
D4. Capital Intensity• Low automation• High automation
3 – 3Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
Service Process StructuringService Process Structuring
Front office
Hybrid office
Back office
Less customer contact and customization
Les
s p
roce
sses
div
erg
ence
an
d m
ore
lin
e f
low
s
(1) (2) (3)High interaction with Some interaction with Low interaction withcustomers, highly customers, standard customers, standardizedcustomized service services with some options services
ProcessCharacteristics
(1)Flexible flows withIndividual processes
(2)Flexible flows withsome dominantpaths, withsome exceptions to how work performed
(3)Line flows, routinework same with all customers
Figure 3.2 – Customer-Contact Matrix for Service Processes
3 – 4Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
Product-Process MatrixProduct-Process Matrix
Continuousprocess
Jobprocess
Lineprocess
Large batchprocess
Small batchprocess
(1) (2) (3) (4)Low-volume Multiple products with low Few major High volume, highproducts, made to moderate volume products, standardization,to customer higher commodity order volume products
ProcessCharacteristics
(1)Customized process, with flexible and unique sequence of tasks
(2)Disconnected line flows, moderately complex work
(3)Connected line, highly repetitive work
(4)Continuous flows
Le
ss
co
mp
lex
ity
, le
ss
div
erg
en
ce
, a
nd
mo
re l
ine
flo
ws
Less customization and higher volume
Batch processes
Figure 3.3 – Product-Process Matrix for Processes
3 – 5
A: A Flexible Flow LayoutA: A Flexible Flow Layout
FoundryMilling
machines
LathesGrinding
Painting Drills
Office
Welding
Forging
A job shop has a flexible-flow layout.
3 – 6
B: Line Flow LayoutB: Line Flow Layout
Station 1 Station 2 Station 3 Station 4
A production line has a line-flow layout.
3 – 7
Machine 1
Machine 2
Machine 3
Machine 4Machine
5
Materials in
Finished goods out
One Worker, One Worker, Multiple Machines Multiple Machines
3 – 8
Before Group TechnologyBefore Group Technology
Drilling
D D
D D
Grinding
G G
G G
G G
Milling
M M
M M
M M
Assembly
A A
A A
Lathing
Receiving and shipping
L
L L
L L
L L
L
Jumbled flows in a job shop without GT cellsJumbled flows in a job shop without GT cells
3 – 9
Applied Group TechnologyApplied Group TechnologyLine flows in a job shop with three GT cells Line flows in a job shop with three GT cells
Cell 3
L M G G
Cell 1 Cell 2
Assembly area
A A
L M DL
L MShipping
D
Receiving
G
3 – 10Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
Break-Even AnalysisBreak-Even Analysis
Process 2: Special-purpose equipment
Process 1: General-purpose equipment
Break-even quantity
To
tal c
ost
(d
olla
rs)
Units per year (Q)
F2
F1
Figure 3.7 – Relationship Between Process Costs and Product Volume
3 – 11Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
Decision Patterns for ServicesDecision Patterns for Services
Front office
Hybrid office
Back office
Low customer-contact process
• Less complexity, less divergence, more line flows
• Less customer involvement• Less resource flexibility• Capital intensity varies with
volume
High customer-contact process
• More complexity, more divergence, more flexible flows
• More customer involvement• More resource flexibility• Capital intensity varies with
volume
Figure 3.8 – Decision Patterns for Service Processes
LowHighCustomer contact and customization
Maj
or
pro
ces
s d
ecis
ion
s
3 – 12Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
Decision Patterns for ManufacturingDecision Patterns for Manufacturing
Competitive Priorities Process Choice
Competitive Priorities Production and Inventory Strategy
(b) Links with Production and Inventory Strategy
Top-quality, on-time delivery, and flexibility
Job process or small batch process
(a) Links with Process Choice
Low-cost operations, consistent quality, and delivery speed
Large batch, line, or continuous flow process
Top-quality, on-time delivery, and flexibility Make-to-order
Delivery speed and variety Assemble-to-order
Low-cost operation and delivery speed Make-to-stock
Figure 3.9 – Links of Competitive Priorities with Manufacturing Strategy
3 – 13Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
Decision Patterns for ManufacturingDecision Patterns for Manufacturing
Continuousprocess
Jobprocess
Lineprocess
Large batchprocess
Small batchprocess
Batch processes
Figure 3.10 – Decision Patterns for Manufacturing Processes
Ma
jor
pro
ce
ss
d
ec
isio
ns
Low HighVolume
High-Volume, make-to-stock process
• Less process divergence and more line flows
• Less customer involvement• Less resource flexibility• More capital intensity
Low-Volume, make-to-order process
• More process divergence and more flexible flows
• More customer involvement• More resource flexibility• Less capital intensity