The document discusses various process strategies including process focus, repetitive focus, product focus, and mass customization. It describes the characteristics of each strategy and compares them in terms of factors like volume, variety, equipment used, and costs. The document also covers topics like process analysis and design tools, production technology alternatives, using technology in services, and process reengineering.
9. Fit of Process, Volume, and Variety Process focus projects, job shops,(machine, print, carpentry) Standard Register Repetitive (autos, motorcycles) Harley Davidson Product focus (commercial baked goods, steel, glass) Nucor Steel High Variety One or few units per run, high variety (allows customization) Changes in modules Modest runs, standardized modules Changes in attributes (such as grade, quality, size, thickness, etc.) Long runs only Mass Customization (difficult to achieve, but huge rewards) Dell Computer Co. Poor strategy Low-Volume (Intermittent) Repetitive Process (Modular) High-Volume (Continuous)
10. Production Process Flow Diagram Shipping Customer Customer sales representative (take order) Prepress Department (Prepare printing plates & negatives) Printing Department Collating Department Gluing, binding, stapling, labeling Polywrap Department Purchasing (order inks, paper, other supplies) Vendors Receiving Warehousing (ink, paper, etc.) Accounting Information flow Material flow
11.
12. Types of Process Strategies Process strategies that follow a continuum Within a given facility, several strategies may be used These strategies are often classified as: Repetitive-Focused Product-Focused Process-Focused Continuum
22. Product-Focused Strategy Facilities are organized by product High volume, low variety products Where found Discrete unit manufacturing Continuous process manufacturing Other names Line flow production Continuous production Operation Products A & B 1 2 3
27. A Comparison (1) Process Focus (Low volume, High variety) Repetitive Focus (Modular) Product focus (High-volume, low-variety) Mass Customization (High-volume, high-variety 1. Small quantity, large variety of products Long runs, standardized product, from modules Large quantity, small variety of products Large quantity, large variety of products 2. General purpose equipment Special equipment aids in use of assembly line Special purpose equipment Rapid changeover on flexible equipment
28. A Comparison (2) Process Focus Repetitive Focus Product focus Mass Customization 3 Broadly skilled operators Modestly trained employees Operators less broadly skilled Flexible operators trained for customization 4 Many instructions because of change in jobs Reduced training and number of job instructions Few work orders and job instructions Custom orders require many instructions 5 Raw material high relative to product value JIT techniques used Raw material low relative to product value Raw material low relative to product value
29. A Comparison (3) Process Focus Repetitive Focus Product focus Mass Customization 6 WIP high relative to output JIT techniques used WIP low relative to output WIP driven down by JIT, kanban, lean production 7 Units move slowly thru plant Movement measured in hours & days Units move swiftly thru facility Goods move swiftly thru facility 8 Finished goods made to order, not stored Finished goods made to frequent forecasts Finished goods made to forecast, then stored Finished goods made to order
30. A Comparison (4) Process Focus Repetitive Focus Product focus Mass Customization 9 Scheduling complex and concerned with trade-off between inventory, capacity, and customer service Scheduling based on building models from a variety of forecasts Scheduling relatively simple, concerns establishing sufficient rate of output to meet forecasts Scheduling sophisticated to accommodate customization 10 Fixed costs low, variable costs high Fixed costs dependent on flexibility of facilities Fixed costs high, variable costs low Fixed costs high; variable costs must be low
31. A Comparison (5) Process Focus Repetitive Focus Product focus Mass Customization 11 Costing, done by job, is estimated prior to doing job but only known after doing job Costs usually known based on experience Because of high fixed costs, cost dependent on utilization of capacity High fixed costs and dynamic variable costs
32. Process Continuum Process Focused (intermittent process) Repetitive Focus (assembly line) Product Focused (continuous process) Continuum High variety, low volume Low utilization (5% - 25%) General-purpose equipment Low variety, high volume High utilization (70% - 90%) Specialized equipment Modular Flexible equipment
33. Volume and Variety of Products Volume and Variety of Products Low Volume High Variety Process (Intermittent) Repetitive Process (Modular) High Volume Low Variety Process (Continuous) One or very few units per lot Projects Very small runs, high variety Job Shops Modest runs, modest variety Disconnected Repetitive Long runs, modest variations Connected Repetitive Very long runs, changes in attributes Continuous Equipment utilization 5%-25% 20%-75% 70%-80% Poor Strategy (High variable costs) Mass Customization
34.
35. Mass Customization - More Choices Than even Early 21 st Century Item Early 1970s Vehicle models 140 260 Vehicle styles 18 1,212 Bicycle types 8 19 Software titles 0 300,000 Web sites 0 30,727,296 Movie releases 267 458 New book titles 40,530 77,446 Houston TV channels 5 185 Breakfast cereals 160 340 Item SKUs in supermarkets 14,000 150,000 Number of Choices
36. Process Strategies Rapid throughput techniques Mass Customization Modular techniques Repetitive Focus Modular design Flexible equipment Product-focused Low variety, high volume High utilization (70% - 80%) Specialized equipment Process-focused High variety, low volume Low utilization (5% - 20%) General purpose equipment Effective scheduling techniques
37.
38. Crossover Charts $ $ $ Fixed cost Variable cost Fixed cost – Process A Fixed cost – Process B Fixed cost – Process C 200,000 300,000 400,000 $ Total process C costs Total process A costs Process A Process B Process C V 1 (2,857) V 2 (6,666) Volume Total process B costs
39.
40. Production Process Flow Diagram Shipping Customer Customer sales representative take order Prepress Department (Prepare printing plates and negatives) Printing Department Collating Department Gluing, binding, stapling, labeling Polywrap Department Purchasing (order inks, paper, other supplies) Vendors Receiving Warehousing (ink, paper, etc.) Accounting Information flow Material flow
41. Time Function Map (Baseline) Customer Sales Production control Plant A Warehouse Plant B Transport Order Product Process Order Print Extrude Receive product Wait Move Wait Wait Wait Move Order Order WIP WIP WIP WIP Product Product Product 12 days 1 day 1 day 1 day 1 day 13 days 4 days 10 days 9 days 52 days
42. Time Function Map (Target) 1 day 1 day 1 day 1 day 2 days Customer Sales Production control Plant Warehouse Transport Order Product Process Order Print Extrude Receive product Wait Wait Move Order Order Product Product WIP 6 days
43. Process Chart Example SUBJECT: Request tool purchase Dist (ft) Time (min) Symbol Description D Write order D On desk 75 D To buyer D Examine = Operation; = Transport; = Inspect; D = Delay; = Storage
44. Process Chart – Hamburger Assembly Dist. (Ft) Time (Mins) Chart Symbols Process Description - Meat Patty in Storage 1.5 .05 Transfer to Broiler 2.50 Broiler .05 Visual Inspection 1.0 .05 Transfer to Rack .15 Temporary Storage .5 .10 Obtain Buns, Lettuce, etc. .20 Assemble Order .5 .05 Place in Finish Rack 3.5 3.15 TOTALS Value-added time = Operation time/Total time = (2.50+.20)/3.15=85.7% Ⅾ Ⅾ Ⅾ Ⅾ Ⅾ Ⅾ Ⅾ Ⅾ Ⅾ Ⅾ 2 4 1 - 2
48. Customer Interaction and Process Strategy Mass Service Professional Service Service Factory Service Shop Commercial Banking General purpose law firms Fine dining restaurants Hospitals Airlines Full-service stockbroker Retailing Personal banking Boutiques Law clinics Fast food restaurants Warehouse and catalog stores No frills airlines Limited service stockbroker For-profit hospitals Degree of Interaction and Customization Degree of Labor Intensity Low High High Low
49.
50.
51.
52. Production Process & Technology Alternatives # Different Products or Parts Flexible Manufacturing System Low High Volume of Products or Parts Low High CIM General Purpose, NC, CNC Dedicated Automation
64. Technology in Services Service Industry Example Financial services Debit cards, electronic funds transfer, ATMs, Internet stock trading Education Electronic bulletin boards, on-line journals Utilities and government Automated one-man garbage trucks, optical mail sorters, scanners, flood warning systems Restaurants and foods Wireless orders from waiters to kitchen, robot butchering, transponders on cars to track drive-thrus Communication Electronic publishing, interactive TV Hotels Electronic check-in/check-out, electronic key/lock systems Wholesale/retail trade Point-of-sale terminals, e-commerce, electronic communication between store and supplier, bar coded data
65. Technology in Services - Continued Service Industry Example Transportation Automatic toll booths, satellite-directed navigation systems, route planning, progress monitoring Health care On-line patient monitoring, on-line medical information systems, robotic surgery, expert system diagnosis assistance Airlines Ticketless travel, scheduling, Internet ticket sales, improved navigation and route planning
You might begin the discussion of Dell Computer Company by asking: Why do they operate in this fashion? What is their mission?”
It may be most useful to begin discussion of this slide with the repetitive process since most students seem to have a concept of an assembly line. Once the repetitive process is introduced, one can then view changing one of the parameters, volume or length of run, and argue the need for process- or product-focus systems. Once the three types of processes have been introduced, it is probably useful to discuss precisely why the low-volume/long run, and high-volume/short run options are usually poor choices.
The most important point illustrated by this slide is that process design entails both material flow and information flow.
This slide can be used to introduce the concept of trade-off in process design.
This slide can be used to begin discussion of two points: - one seldom employs a pure process strategy (process, repetitive, or product) - but rather a strategy which has elements of each of the pure strategies - i.e., practical strategies lie along a continuum. - one seldom employs only a single strategy.
You can use this slide to introduce a discussion of process-focused strategy. Examples are suggested in the following slide or may be requested of students.
It is probably most useful to introduce process focused production systems by example.
Select one of the examples you have presented of process-focused strategy, and ask students to identify the sources of advantage and disadvantage.
You can use this slide to begin your discussion of repetitive strategies; the next suggests additional characteristics; the slide following that, some examples.
At this point, you might compare in more detail, McDonalds (which uses a batch system) with Wendy’s (which, at least at high volumes, perhaps more closely resembles a simple assembly line).
You can use this slide to begin a discussion of product-focused strategy. The following slide outlines some advantages/disadvantages of this approach.
As before, it is probably most useful to introduce product focused production systems by example.
Some examples of products produced using a product-focused strategy.
Another slide which may be used to summarize differences between the process strategies.
This slide resembles a slide used earlier, but adds more detail. You may wish to use this slide in review or summary, or, simply skip it and move on.
Once students understand what mass customization is, they should be asked to consider whether such an approach will move from an “option” at present, to a “necessity” in the future.
You might use this slide to frame a discussion on process evaluation. Once you have discussed the questions posed on the slide, you might ask students to suggest additional questions or “tests” by which one might evaluate the “quality” of a process.
This slide introduces tools for process design. While examples of flow diagrams and process charts have arisen earlier in the presentation, they are repeated in the next two slides.
The most important point illustrated by this slide is that process design entails both material flow and information flow.
It is probably useful to walk students through both the content and structure of this diagram.
It is probably useful to walk students through both the content and structure of this diagram.
You can use this slide as an example of a process chart, use it to guide students in developing their own charts for some common activity.
This slide can be used to frame a discussion of Work Flow Analysis.
This slide can be used to frame a discussion of lean production. It should also be used to stress that process design is all encompassing - not simply an issue for those workers in the “production” department.
This slide can be used to introduce the design of service processes, or to frame a discussion of the impact of customer interaction on the design of process in general. Here it is probably useful to ask that students define the nature of the customer interaction represented in each quadrant, and identify ways in which the process must be modified in light of these interactions.
Students should be asked to suggest examples of companies/products employing the techniques listed on this and the next two slides.
Ask students to suggest at least one example of the use of each of these approaches.
We have looked previously at the three types of process. This slide introduces the differences in technology appropriate to the different process strategies.
This slide merits discussion. While Process Reengineering has the potential to significantly improve both efficiency and effectiveness of an organization’s processes, its actual implementation often results in failure. Some of the points to be made: - process reengineering, if successful, will result in significant change in process, responsibilities, patterns of communication, and other organization staples. - process reengineering cannot be implemented top down - the workers actually performing the process should be the ones to redesign it. - process reengineering requires that fundamental questions (e.g., “Why are we doing this?” and “Why are we doing this this way?”) must be asked and answered.
While this slide may be used simply as a reminder that one can design a process while remaining sensitive to the environment - it should be given additional emphasis. Students should be asked to identify companies or products that emphasize environmentally sound practices, and discuss how these practices impact their process design strategies.
These factors should be explored either through examples which you present or which are suggested by the students. Again, if all else fails, discussion of the processes employed at your college or university should provide good examples.