Process Flashcards
what are the four process strategies? and what the volume to variety ratio
Process(Low vol;high var), repetitive(High vol;low variety), product(High vol;low variety) and mass customization(high vol;high variety)
the process focus department?
a production facility organized around processes to facilitate low volume high variety production example? operating er room or table
repetitive focus? example?
is used in assembly line it’s used in automibiles and household appliances it has more structure and less flexibility making a harley bike
product focus?(assemble line) example?
has high volume and low variety think a high fixed cost but low variable costs with a high facility utilization ex? lightbulb or potato chip factory
mass customization?
low cost production of goods and sercices that fufill unique desires not about variety but what customer wants making a del computer with different rams
what are the 5 ways that are making mass customization work? whats a example?
- Product Design: Must be imaginative with a limited product line using product modules
- Process Design: must be flexible and able to accommodate changes in design and technology
- Inventory Management: requires tight control. the firm must fight to not be stuck with unpopular or obsolete components
- Digitized Communication tracks: tracks orders and materials from design though delivery to maintain tight schedules
- Responsive partners: in the Supply chain must be effective collaborators.
example being Invisalign
what are some things to consider with serivce process matrix( custimization and labor intensity)
upper quadrants of mass service and professional services shows high labor and managers should focus on HR this is done with significant personel the lower quatrats deealing with low customezation offloaf by automation like seld check out; atm or ticket vending. a reduction in custimization will require strenth in other areas. please not customer feedback is lower in low customizations
what are some techniques for innovative process design in services?
Seperation: customers must go to where service is like tellers for deposits
selve service: think of internet ordering or supermarkets
postponement: customization at delivery: customizing vans at delivery than production
focus: restricting offerings like a limited menu restaurant
module: think of prepackaged food mods in restaurants or investment/insurance selection
Automation: think of automated tellers or ordering food on app
how does design capacity; effective capacity and actual output work together?
design is the ideal conditions of whats being produced( think ideal production amount and how much time the plant operates); Effective capacity is design capacity minus lost output like machine setups; shift change; breaks or changes in production mix; actual output is effective capacity minus unplanned resource idles
what is the utilization equation?
Actual output/Design capacity
what is the efficiency equation?
actual output/effective capacity
Break even point analysis
critical tool for determining the capacity a facility must have to achieve profitability. the goal is to fine the point in dollars and units at which costs equals revenue this requires an estimation of fixed costs, variable costs and revenue
