Process Configuration Flashcards
Process Management
Selection of inputs, activities, and methods to transform inputs into outputs
Process Configuration (4)
Customer Involvement
Resource Flexibility
Process Structure
Capital Intensity
3 Principles Concerning Process Configuration
- competitive and cohesively fit together
- building blocks to supply chain
- connection between firm - supplier and customer
Service Counter
time customer is in contact (not always interacting, with a service product. Inital to completion
Customer Interaction
customer is present and engaged face to face
Customer involvement 5
- Physically Present
- What is Processed
- see and actively participate in process
- service highly personal or impersonal
- service delivered immediately or delayed
Processes (4)
- Project
- Batch
- Line
- Continuous
Project:
one at a time product (specialization)
Batch
small quantity of products for actual or expected customer orders
Mass
large volume of standardized products, assembly line format
continuous
high volume of fully standardized product produced
Process Structure Alignment (5)
- Make-to-Stock
- Assemble-to-order
- Mass Customization
- Make-to-order
- Mass production
Make to Stock
building inventory of completed projects
Assemble to order
standardization components put together after order received
Mass customization
assemble to order and flexiblity
make to order
product made to the exact customer specifications, low volume
Mass Production
line process that used make to stock strategy
Resource Flexibility
How easily can workforce and equipment handle a variety of functions
Workforce Training
Are employees trained to take on multiple roles depending on demand, or are they limited to a specific function
Equipment
Are you using highly specialized tools or general purpose equipment?
Economies of Scale
Competitive Advantage, ability to produce multiple products more cheaply in combination than separately
Capital Intensity high and low
high scale - more autonomous for efficiency
low scale - more human skills
3 capital intensity factors
- automation vs human labour
- balance cost, quality and productivity
- Tradeoff between fixed and variable cost
What type of relationship is capital intensity and resource flexibility
inverse relationship
