Chapter 7 exam 3 Flashcards
Objective of ________ is to create a process to produce offerings that meet customer requirements within cost and other managerial constraints.
Process strategy
Process strategies focus on how to produce a product or provide a service that
Meets or exceeds customer requirements
Process strategies has a long term effect on: acronym EPFCQ
Efficiency, product flexibility, costs and quality.
Four basic process strategies:
- Process focus
- Repetitive focus
- _____ focus
- ____________
Product, mass customization
Facilities are organized around specific activities or processes; General purpose equipment and skilled personnel; high degree of product flexibility; typically high costs and low equipment utilization; product flows may vary considerably making planning and scheduling a challenge.
Process focus
Low volume, high variety, intermittent processes. Examples include hospitals
Process focus
Facilities often organized as assembly lines; characterized by modules with parts and assemblies made previously; modules may be combined for many output options; less flexibility than process-focused facilities but more efficient.
Repetitive focus
Used for virtually all automobile and household appliances, also can be used for fast food restaurants.
Repetitive focus.
Parts or components of a product previously prepared, often in a continuous process.
Modules.
Facilities are organized by product; high volume but low variety of products; long, continuous production runs enable efficient processes; typically high fixed costs but low variable cost; generally less skilled labor
Product focus
The rapid, low cost production of goods and services to satisfy increasingly unique customer desires; combined the flexibility of a process focus with the efficiency of a product focus.
Mass customization
High volume, high variety process.
Mass customization
Characteristics of this process: Imaginative product design Flexible process design Tightly controlled inventory management Tight schedules Responsive partners in supply chain
Mass customization
Focus brings efficiency; focus on depth of product line rather than breadth; focus can be customers, products, service and technology.
Focused processes
Important factors to ______ ________; cost, cash flow, market stability, quality, capacity, flexibility.
Selection of equipment
Ability to respond with little penalty in time, cost of customer value; may be a competitive advantage; may be difficult and expensive; without it, change may mean starting over.
Flexibility
Shows the movement of materials; examples included from Harley Davidson
Flowchart
Shows flows and time frame
Time function mapping
Where value is added in the entire production pieces, including the supply chain; extends from the customers back to the suppliers.
Value-stream mapping
Steps of value stream mapping:
- Begin with symbols for customer, supplier and production to ensure big picture
- Entire customer ____ requirements
- Calculate daily production requirements
- Enter the outbound shipping requirements and delivery frequency
- Determine inbound shipping method and delivery frequency.
Order
Value stream mapping steps cont.
- Add the process steps
- Add ______ methods, add their frequency, show the direction with arrows
- Add inventory quantities between every step of the entire flow
- Determine total ____ ______ and delay
Communication, working time
Focuses on the customer and provider interaction; defines three levels of interaction; each level has different management issues; identified potential failure points.
Service blueprinting
focus on Human Resources; selection and training highly important; personalized services. This is part of the service process matrix
Mass service and professional service
Automation of standardized services; restricted offerings; low labor intensity responds well to process technology and scheduling; tight control required to maintain standards; part of the service process matrix.
Service factory and service shop
