Transcript Process Strategy Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3–1

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Process Strategy
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
3–1
Process Strategy Decisions
D1. Process Structure
• Customer-contract position
(services)
• Product-process position
(manufacturing)
• Layout
D2. Customer Involvement
• Low involvement
• High involvement
D3. Resource Flexibility
• Specialized
• Enlarged
D4. Capital Intensity
• Low automation
• High automation
Strategy for Change
• Process reengineering
• Process improvement
Figure 3.1 – Major Decisions for
Effective Processes
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
Effective Process
Design
3–2
Service Process Structuring
Less processes divergence and more line flows
Less customer contact and customization
Process
Characteristics
(1)
Flexible flows with
Individual
processes
(1)
High interaction with
customers, highly
customized service
(2)
Some interaction with
customers, standard
services with some options
(3)
Low interaction with
customers, standardized
services
Front office
(2)
Flexible flows with
some dominant
paths, with
some exceptions
to how work
performed
Hybrid office
(3)
Line flows, routine
work same with all
customers
Back office
Figure 3.2 – Customer-Contact Matrix for Service Processes
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
3–3
Product-Process Matrix
Less customization and higher volume
Less complexity, less divergence, and more line flows
Process
Characteristics
(1)
Customized process,
with flexible and
unique sequence of
tasks
(1)
(2)
Low-volume
Multiple products with low
products, made to moderate volume
to customer
order
(3)
Few major
products,
higher
volume
(4)
High volume, high
standardization,
commodity
products
Job
process
(2)
Disconnected line
flows, moderately
complex work
Small batch
process
Batch processes
(3)
Connected line, highly
repetitive work
(4)
Continuous flows
Large batch
process
Line
process
Continuous
process
Figure 3.3 – Product-Process Matrix for Processes
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
3–4
A: A Flexible Flow Layout
A job shop has a flexible-flow layout.
Grinding
Forging
Lathes
Painting
Welding
Drills
Office
Milling
machines
Foundry
3–5
B: Line Flow Layout
A production line has a line-flow layout.
Station 1
Station 2
Station 3
Station 4
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One Worker,
Multiple Machines
Machine
2
Machine
1
Machine
3
Materials in
Finished
goods out
Machine
5
Machine
4
3–7
Before Group Technology
Jumbled flows in a job shop without GT cells
Lathing
L
L
Milling
L
L
M
Drilling
M
M
D
D
D
D
M
Grinding
L
L
L
L
Receiving and
shipping
M
M
Assembly
A
A
A
A
G
G
G
G
G
G
3–8
Applied Group Technology
Line flows in a job shop with three GT cells
L
L
M
L
G
M
Assembly
area
A
Cell 2
Cell 1
Receiving
D
G
A
G
Cell 3
L
M
D
Shipping
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Total cost (dollars)
Break-Even Analysis
Process 2:
Special-purpose
equipment
Break-even
quantity
Process 1:
General-purpose
equipment
F2
F1
Units per year (Q)
Figure 3.7 – Relationship Between Process Costs and Product Volume
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Decision Patterns for Services
Major process decisions
•
•
•
•
High customer-contact
process
More complexity, more
divergence, more flexible
flows
More customer involvement
More resource flexibility
Capital intensity varies with
volume
Front office
Hybrid office
•
•
•
•
Low customer-contact
process
Less complexity, less
divergence, more line flows
Less customer involvement
Less resource flexibility
Capital intensity varies with
volume
Back office
High
Low
Customer contact and customization
Figure 3.8 – Decision Patterns for Service Processes
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Decision Patterns for Manufacturing
Competitive Priorities
Process Choice
Top-quality, on-time delivery, and
flexibility
Job process or
small batch process
Low-cost operations, consistent
quality, and delivery speed
Large batch, line, or
continuous flow process
(a) Links with Process Choice
Competitive Priorities
Production and Inventory Strategy
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
(b) Links with Production and Inventory Strategy
Figure 3.9 – Links of Competitive Priorities with Manufacturing Strategy
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
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Decision Patterns for Manufacturing
•
Job
process
Small batch
process
Batch processes
Major
process
decisions
•
•
•
Low-Volume,
make-to-order process
More process divergence
and more flexible flows
More customer involvement
More resource flexibility
Less capital intensity
•
•
•
•
High-Volume,
make-to-stock process
Less process divergence
and more line flows
Less customer involvement
Less resource flexibility
More capital intensity
Large batch
process
Line
process
Continuous
process
Low
High
Volume
Figure 3.10 – Decision Patterns for Manufacturing Processes
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
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