Topic 2: Process Strategy Flashcards
Process strategy
Objective is to build a production process that meets customer requirements and product specifications within cost and other managerial constraints’
What are the four process strategies
- Process Focus
- Repetitive Focus
- Product Focus
- Mass Customization
Process Focus
- facilities organized around certain processes or activities
- general purpose equipment and skilled personnel
- high degree of product flexibility
- high costs and low equipment utilization
- product flows may vary considerably making planning and scheduling a challenge
Repetitive Focus
- Faciliities often organized in assembly lines
- characterized by modules with parts and assemblies made previously
- modules may be combined for many output options
- less flexibility than process-focused facilities but more efficient.
Product Focus
Facilities are organized by product
- high volume but low variety of products
- long, continuous production runs enable efficient processes
- typically high fixed cost but low variable cost
- generally less skilled labor
Mass Customization
- rapid, low-cost production of goods and service to satisfy increasingly unquiet customer desires
- combines the flexibility of a process focus with the efficiency of a product focus.
- Imaginative and fast product design
- Rapid process design
- Tightly controlled inventory management
- Tight schedules
- Responsive supply chain partners
Why do companies usually not change processes?
- it is difficult and expensive
- may mean starting over
- process strategy determine transformation strategy for an extended period
- it’s important to get the right strategy for you business.
Flow charts
Shows the movement of materials
Time -function mapping
Shows flows and time frame
Value stream mapping
Shows flows and time and value added beyond the immediate organization
Process charts
Uses symbols to show key activities
Service blueprinting
Focuses on customer/provider interaction
- defines three levels of interaction
- each level has different management issues
- identifies protential failure points.
What does machine technology do?
- increased precision
- increased productivity
- increased flexibility
- improved environmental impact
- reduced changeover time
- decreased size
- reduced power requirements
Automatic Identification Systems (AISs)
-improved data acquisition
-reduced data entry errors
- increased speed
- increase scope of process automation
(Example- bar codes)
When making a process what questions do you want to ask? Process Analysis and Design
Is the process designed to achieve a competitive advantage?
Does the process eliminate steps that do not add value?
Does the process maximize customer value?
Will the process win orders?