Exam 2 - Manufacturing and Service Processes Flashcards
Process
Any activity or group of activities that takes one or more inputs, transforms them, and provides one or more outputs for its customers
Elements of a process
Inputs
Outputs
Internal & external customers
Processes and operations
Info on performance
Inputs
Workers, managers, equipments, facilities, materials, land, etc.
Outputs
Goods, services, combo
Product-Process Matrix
Categorized products based on:
- Output volume
- Variety
Most important concern for developing manufacturing strategy is _____
Volume
In service processes, _____ ______ is generally a major concern
Customer contact
_____ levels of product customization lead to ____ levels of volume in many steps of the process
High ; Low
Project
A one-time or infrequently occurring set of activities that create outputs w/in pre-specified time and cost schedules
Flexible outputs = high levels of customer involvement
Ex. Canvas stadium
Job-Shop
A flexible process structure for products that require different inputs and have different flows through processes
Custom-but not one of a kind- low volume
Ex. Paint shop
Batch
A process in which goods or services are produced in groups (or a batch) and not a continuous stream
Moderate volume/variety
Ex. Mystery Flavor of Dum Sums
Repetitive Process
Process in which discreet (different) products flow through the same sequence of activities
Standardized products w/ limited range of options
Ex. Car assembly line
Continuous Process
Single-flow process for high-volume, non-discrete, standardized products
Made-to-stock w/ little (or no) variety
Products follow a sequence
Ex. Oil refining
Mass customization
Uses advanced tech to mass produce customized products quickly and at low cost
3D printing
Automation
Ex. Invisalign
Engineer to Order (ETO)
- Unique, customized products
- Designed for specific customers
- Longer lead times
- Order placed before work can begin
Ex. Disney cruise
Make to Order (MTO)
- Products with similar designs that allow for some customization
- Order place before work begins
- Lower lead time (not re-designed every time)
Ex. Converse customization
Assemble to Order (ATO)
- Produced from standard components & modules
- Can be assembled in multiple ways
- Assembled after customer order
Ex. Paint
Make to Stock (MTS)
- Finished goods that are held in inventory in advance of customer orders
- Required more careful forecasting
- Standardized, mature products
Ex. iPhones
Service Process Matrix
Categorizes services based on degree of both customization/customer interaction and labor intensity
Labor intensity
Ratio of labor spend to capital/equipment spend
Not how hard someone is working
Service Process Matrix order
Professional Service –> Mass Services –> Service Factory –> Service Shop
Mass Service
- Low customization/customer contact & high labor intensity
- Meet standard needs of large volume of customers
- Do the same few things repeatedly
Ex. Gas
Service factory
- Low customization/customer contact & low labor intensity
- Range of standard services offered to customers who prioritize low prices
- All about getting max utilization out of expensive capital equipment/buildings
Ex. Flights
Service Shop
- High customization/customer contact and low labor intensity
- Premium on cutting-edge tech
- Very high capital expenditures
Ex. UCHealth
Professional Service
- High customization/customer contact and high labor intensity
- Work closely with customer to provide customized services
Ex. Lawyer
Service Blueprinting
A “process mapping” approach - analyzing interface between customers and service processes
Customer Actions
All actions done by customers during service delivery
Front office
Employee actions in the face-to-face encounter
Back office
Behind the scenes activities
Support processes
Activities necessary for the service, don’t by employees without direct customer contact
Physical evidence
Tangibles the customers see or collect from the organization
Service blueprinting example
Customer Action: Arrive at hotel, give bags to bell person
Onstage contact person: Greet and take bags
Backstage contact person: Take bags to room
Support Processes: Registration system
Fixed Position
Product cannot be moved during production
Functional Layout
Groups together similar resources (departments)
Product Layout
Resources arranged by regularly occurring sequence of activities
Cellular Layout
Arrange workstations to form a # of small assembly lines called work cells
- Combines flexibility of job shop w/ efficiency of repetitive line
- Divided by product families (similar processing requirements)
Line Balancing
Used to assign individuals tasks to work areas for a desired output rate
Goal: Smooth, continuous flow
Steps to line balancing
- Determine order of events and time that it will take to complete each event
- Calculate takt time
- Determine the theoretical minimum number of work stations
- Determine efficiency
Takt time
The max amount of time at each work station based on customer demand
Cycle time
Bottleneck (longest workstation time)
