lecture 4 - process prospective

Question 1

Process – Value

Answer 1

Process delivers by a specific type of value measured by
- Cost
- Quality
- Delivery
- Flexibility
- Service
Value – maintain fit between value and process. Increase ratio of value-adding to cost-adding activities

Question 2

Primary Processes

Answer 2

• A process is a set of logically related tasks or activities performed to achieve a defined business outcome.
• a value chain is a collection of processes that are performed by a company to create value for its customers.

Question 3

Supply Chain Operations Reference (SCOR) model.

Answer 3

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Question 4

Choosing the best type of process.

Answer 4

Some considerations (Waters, 2004)
– Overall demand ( first question we should be asking)
– Changes in demand (volatile the demand is, ideally want a stable demand)
– Product design
– Variability in design
– Product quality
– Product lifecycle
– Skill and experience
Customer involvement

Question 5

Different process technologies are appropriate for different volume–variety combinations.

Answer 5

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Question 6

Making the right design decision. A B C

Answer 6

A. Layout & flow – is concerned with the:
– physical location of the transforming resources.
– allocation of tasks to transforming resources
B. Process technology
– The machines, equipment and devices that create and/or deliver products & services
C. Job design
– Job design is how each job is structured taking into account transformed and transforming resources.

Question 7

Why worry about a business process?

Answer 7

• Collections of activities in the process
• Helps you to manage something to address performance objectives
• When you have competitive priorities
  – Identify and map out processes
  – Improve processes, guided by competitive priorities

Question 8

How can you change the activities and processes to improve:

Answer 8

• Cost – reduce activities
• Quality – reduce fails at each activity
• Speed – improve cycle time so they are completed faster
• Flexibility – design more options at each activity
• Environmental impact – reduce waste created

Connect these improvements back to the operations strategy and how the organisation is positioned; focus on the ‘competitive priorities.’