Chapter 4: Process, Design, Strategy and Management Flashcards
Define a process
It’s a series of steps, that are used continuously, and result in the creation of a product or service, that can be delivered to a customer, at a profit
Outline the two major aims that must be satisfied during the design phase of processes
- The process must add maximum value to the good or service it creates
- The cost added to the good or service during its creation must be minimised
Explain what is a process strategy
It’s an organisations tool for transforming inputs into goods and services
What are the four types of specific process strategies
- Process focus
- Product focus
- Repetitive focus
- Mass-customisation focus
Explain process focus
These processes might be departments or functions that manage a specific task for example painting or managing sales
Explain product focus
These processes are usually high-volume, low-variety processes and are sometimes called continuous processes. For example the production of high-volume products such as cheese or medication.
Explain repetitive focus
This process falls between the product and process focus. The repetitive process is a product-orientated production process that uses parts/elements that are components available from previous processes
Explain mass-customisation focus
This focus aims to meet the needs of customers who want to purchase unique or custom-made products that are delivered quickly and at a low production cost.
Outline the 6 characteristics of the strategic process decisions
Boundaries of the process
1. The good or service must be accurately defined
2. The needs of the customers must be clearly understood
3. All the possible suppliers to an organisation must be identified.
Map of the process
4. The correct process for the goods or services to be produced must be defined
5. The process must be mistake proofed
Process performance standard
6. continuous feedback on process performance must be carried out
Name the four key process types
- Job process
- Batch process
- Line process
- Continuous flow process
Explain job process
It is highly adaptable. The scale of the operations is small and the process is structured around particular events. The result is that the process produces a diversity of highly customised product in small quantities. No work is undertaken without a customer order for a specific product.
Explain batch process
It is the most common type of process utilised in industry. Batch process make use of small or large batches. The process is by nature irregular and is therefore highly flexible. The skills required for this process are much lower than the skills required in the job process.
The most telling difference between batch processing and job processing is the number, range, and quantity of goods and services produced by each process. In the batch process the same parts, components, or products are manufactured continuously .
Explain line process
The line process is also known as the repetitive process or assembly-line process. The process produces one type of product in a straight line. Modular production is a characteristic of the process. The result is high quantities of production. The process seems to be structured around a specific product for example vehicles.
Explain continuous-flow process
It is also known as the product-focused process. A typical example of this process is production at Coca-Cola Beverages Africa. The production volumes in this type of process are very high. Flexibility in the process is non-existent as it can lead to huge losses.
The main characteristic of this process is that only one type of product flows through the process at any one time in the case of Coca-Cola it is soft drinks.
Name the manufacturing strategies that can be used to optimise processes
- Make-to-stock strategy
- Assembled-to-order strategy
- Make-to-order strategy
Explain make-to-stock strategy
The make-to-stock strategy will have large inventories of products available in anticipation of customer orders.
An organisation can satisfy a large number of customer orders in the shortest lead time possible. This strategy is suitable for highly standardised products and where forecasts of customer demand can be undertaken.
It is mostly used by the product-focused process, an example of this is groceries.
Explain assemble-to-order strategy
The assemble to order strategy makes use of a smaller number of assemblies or components to produce a diversity of products. This process begins after an order has been received from a customer.
The main requirement is that the finish product is delivered in the shortest possible time. The production of the components and sub assemblies is achieved through batch production and the final assembly is achieved using the line process.
The strategy requires high volumes of standardised products and results in high levels of inventory, without the high levels of inventory the strategy will be unsuccessful.
Explain make-to-order strategy
Is also known as the manufacture-to-order strategy. This strategy is used with low volume customers specification products that are produced.
The preferred method of production is the job or batch production process. Another characteristic of the strategy is the high level of customisation that is used.
Any process that uses the strategy must have a high degree of flexibility. An example of a make-to-order is the building of a very expensive house or office.
Name the 3 major process types available for the service industry
- Professional service process
- Service shop process
- Mass service process
Explain professional service process
The professional service process is characterised by the production of a variety of services with low volumes. As a result the customer is part of this process for prolonged periods of time.
This process is further characterised by custom-made services and is focused on people rather than equipment and in turn employees in the process of have a high degree of freedom of choice in the way the customer is handled while they are in the system. For example a doctors’ surgery.
Explain service shop process
The service shop process fall somewhere between the professional service service process and the mass service process.
The process experiences high volumes of customers and is distinguished by the degree of custom action in the process. This process is characterised by a high degree of adaptation similar to the professional process .
Example Uber, the customer is heavily involved in the service is adaptable to the customers needs
Explain mass service process
This process is distinguished by a large number of client dealings. As a result there is very little scope for customisation. The process mostly utilises machinery and equipment to produce the output.
Most tasks in the process are carried out by back-office employees. Front-office employees have very little freedom in the way in which they deal with clients for example, till operators and shelf packers.
An example of this process is typically found in supermarkets, for example, pnp, spar and checkers.
What is the main competitive edge for organisations
Cost, logistics and price
What is process performance measurement
It establishes to what extent the process is performing to the specifications
What does the process performance measurement focus on
It focuses on cost containment and reduction.
Explain process performance ratios
The following metrics are used to determine the performance of any process
-Productivity: measures the output of the process against the inputs consumed by the process
-Efficiency: measure the actual output produced by a particular process
-Run time: determine the performance of the process concerning the time it requires to produce a batch of products
-Operations time: is the sum of the run time and set up time when a batch of product is produced on a particular machine
-Throughput: the rate is calculated by adding the labour time utilised for production to the time that the product spent waiting in the process to be worked on
