007-Process design Flashcards
This refers to the creation and improvement of systems that converts inputs into outputs.
It involves understanding how work is performed within an organization and designing and implementing ways to enhance it
Process Design
Refers to the method an organization uses to produce its goods or services.
It involves making decision about the most appropriate production processes based on product requirements, operational goals, customer needs
This determines how goods or services are created
Process Selection
This is all about making sure that the production process aligns with a company’s goals, whether it’s producing in large quantities or being flexible with product changes
Process Strategy
Capital Intensity: the mix of equipment and labor that will be used by the organization.
Process Flexibility: the degree to which the system can be adjusted changes.
A decision planning process whereby an organization decides to purchase equipment for business purposes.
It refers to choosing the right machinery tools, and technology for the production or service delivery process
Selection of Equipment
It involves totally documenting and understanding how work is performed within an organization.
It identifies inefficiencies and opportunities for improvement ensuring processes are redesigned to align with strategic goals and operational effectiveness
Process Analysis and Design
This refers to the other factors and elements that need to be evaluated and optimized to ensure the effective delivery of services.
Key areas:
* Customer needs
* Service delivery location
* Standardization
* System efficiency
Process Consideration in Service Process Design
This refers to the process of determining the production capacity needed by an organization to meet changing demands for its products
Capacity Planning
Defines as the maximum level of output that a company can sustain to make a product or provide a service.
In process selection____ refers to the maximum output that a production system or processes can handle within a given time period, given its available resources
Capacity
A type of capacity
The maximum output a system is designed to achieve under “ideal conditions”
Design capacity
A type of capacity
The maximum output a system can achieve under normal, realistic conditions, considering light maintenance, downtime, and operational and inefficiencies
Effective Capacity
The actual output that the system produces, which may vary due to unforeseen factors like equipment failures, labor shortages, air supplying chain distributors
Actual Capacity
Use for small production runs or highly customized products.
The production system is highly flexible meaning it can handle a wide variety of different products with low volume
Job Shop
Products are produced and groups (batches) and the production processes flexible enough to change between batches of different products
Batch Processing
Suited for situations where products are produced and moderate to high volumes and have some degree of standardization but still offers light variation
Repetitive Focus
Design for mass production of commodities and are used when production process must be continuous
Continuous Processing
Refers to the application of scientific discoveries to the development and improvements of goods and services
Technology
Encompasses innovations aimed at improving products through enhancement and features, functionality and design
Technology for Competitive Advantage
Refers to the methods and tools utilized in producing goods and services and advancements in this field can yield several significant benefits
Processing Technology
Acknowledges that businesses requirements evolve, necessiting the evaluation and reengineering of processes to maintain their relevance and efficiency.
It involves modifying methods and activities to enhance overall processes performance utilizing benchmark for measuring progress and success
Process Redesign
A strategy for building better businesses by optimizing the processes that help the business achieve its goals
Business Process Redesign
Introduced by Robert Hayes
And Steven Wilwirght
A strategic tool used to visualize the relationship between product characteristics and most suitable product process
Product Process Matrix
Involves linking key products or service requirement to process capabilities
Product and Service Profiling
The use of machinery with sensing and control devices to operate automatically
Automation
Types of Automations:
1. Fixed Automation: first specific task
2. Programmable Automation: performs different task
3. Flexible Automation: can handle a wide range of products or services
A specific point in process where capacities limited causing delays or reduced output
Bottleneck Analysis
Develop by Eliyahu Goldratt
It’s based on the idea that every system has at least one constraints and improving that constraint is the key to improving the overall system
Theory of Constraints
A statistical technique used to determine the optimal decision when face with several options or and the uncertain outcomes
Expected Monetary Value
Investment Analysis Techniques
- Net Present Value: present value of future cash flows
- Internal Rate of Return: determines the discount rate
- Payback Period: measures the time it takes to recover the initial investment.
- Return of Investment: calculate the profitability of an investment as percentage of initial cost
