Lecture 4: Process Perspectives Flashcards
Forecasting
- the aim to forecast as accurately as possible but demand is unpredictable
- forecasting is where capacity planning and control kicks in
choosing the best type of process
- Consider: overall demand, changes in demand, product design, variability in design, product quality, product lifecycle, skill and experience, customer involvement
Making the right design decision
- Layout and flow: - physical location of the creating of products or services and the allocation of tasks creating products or services
- Process technology: - the machines, equipment and devices that create/deliver products or services
- Job design: - how each job is structured
Primary Processes
- A process is a set of logically related tasks or activities performed to achieve a defined business outcome
- a value of chain is a collection of processes that are performed by a company to create value for its customers
Porter’s value chain (primary and secondary processes)
Primary processes: New Product development > Inbound logistics > marketing and sales > operations > distribution > after-sales service
Secondary processes: Finance, accounting, legal information, technology, human resources
Suppler chain operations Reference (SCOR) model (SMDR)
-Your company has a plan to source, make, deliver and make return
Mapping out a business process
To change the activities and prices to improve you need to: cost – reduce activities, quality – reduce daisy at each activity, speed – improve cycle time so they are completed faster, flexibility- design more options at each activity and environment impact – reduce waste created