Chapter 3 - Process Strategy Flashcards
supply chain processes
business processes that have external customers or suppliers
process structure
the process type relative to the kinds of resources needed, how resources are partitioned between them, and their key characteristics
layout
the physical arrangement of operations created by the various processes
customer involvement
the ways in which customers become part of the process and the extent of their participation
resource flexibility
the ease with which employees and equipment can handle a wide variety of products, output levels, duties and functions
capital intensity
the mix of equipment and human skills in a process
customer contact
the extent to which the customer is present, actively involved, and receives personal attention during the service process
process divergence
the extent to which the process is highly customized with considerable latitude as to how its tasks are performed
flexible flow
the customers, materials, or information move in diverse ways, with the path of one customer or job often crisscrossing the path that the next one takes
line flow
the customers, materials, or information move linearly from one operation to the next, according to a fixed sequence
front office
a process with high customer contact where the service provider interacts directly with the internal or external customer
hybrid office
a process with moderate levels of customer contact and standard services with some options available
back office
a process with low customer contact and little service customization
process choice
a way of structuring the process by organizing resources around the process or organizing them around the products
job processes
a process with the flexibility needed to produce a wide variety of products in significant quantities, with considerable divergence in the steps performed
batch process
a process that differs from the job process with respect to volume, variety and quantity
line process
a process that lies between the batch and continuous processes on the continuum; volumes are high and products are standardized, which allows resources to be organized around particular products
continuous flow process
the extreme end of high volume standardized production and rigid line flows, with production not starting and stopping for long time intervals
make to order strategy
a strategy used by manufacturers that make products to customer specifications in low volumes
assemble to order strategy
a strategy for producing a wide variety of products from relatively few subassemblies and components after the customer orders are received
postponement
the strategy of delaying final activities in the provision of a product until the orders are received
mass customization
the strategy that uses highly divergent processes to generate a wide variety of customized products at reasonably low costs
make to stock strategy
a strategy that involves holding items in stock for immediate delivery, thereby minimizing customer delivery times
mass production
a term sometimes used in the popular press for a line process that uses the make to stock strategy
block plan
a plan that allocates space and indicates placement of each operation
closeness matrix
a table that gives a measure of the relative importance of each pair of operations being located close together
weighted distance method
a mathematical model used to evaluate layouts (of facility locations) based on closeness factors
euclidean distance
the straight line distance, or shortest possible path, between two points
rectilinear distance
the distance between two points with a series of 90 degree turns, as along city blocks
flexible workforce
a workforce whose members are capable of doing many tasks, either at their own workstations or as they move from one workstations to another
automation
a system, process, or piece of equipment that is self-acting and self-regulating
fixed automation
a manufacturing process that produces one type of part or product in a fixed sequence of similar operations
flexible (programmable) automation
a manufacturing process that can be changed easily to handle various products
industrial robot
versatile, computer-controlled machine programmed to perform various tasks
economies of scope
economies that reflect the ability to produce multiple products more cheaply in combination than separately
plants within plants (PWPs)
different operations within a facility with individualized competitive priorities, processes, and workforces under the same roof
focused factories
the result of a firm’s splitting large plants that produced all the company’s products into several specialized smaller plants
reengineering
the fundamental rethinking and radical redesign of processes to improve performance dramatically in terms of cost, quality, service, and speed
process improvement
the systematic study of the activities and flows of each process to improve it
process strategy
the pattern of decisions made in managing processes so that they will achieve their competitive priorities
