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• Process strategy


  An organisation's approach to transforming resources into goods and services
• Objective of Process Strategy

  • To build a production process that meets customer requirements and product specifications within cost and other managerial constraints
• Process Focus


  1. Facilities are organized around specific activities or processes in terms of equipment, layout, and supervision

  2. High degree of product flexibility as products move between processes

  3. Typically high costs and low equipment utilization
• Process Focus


  • Milpak Hospital
• Repetitive Focus


  1. Facilities often organized as assembly lines

  2. Characterized by modules with parts and assemblies made previously in a continuous process

  3. Modules may be combined for many output options
• Repetitive Focus


  • Harley Davidson
• Product Focus


  1. Facilities are organized by product, also called continuous process

  2. High volume but low variety of products

  3. Long, continuous production runs enable efficient processes
• Product Focus


  • Frito-Lay
• Mass Customization


  • The rapid, low-cost production of goods and services to satisfy increasingly unique customer desires
  • Combines the flexibility of a process focus with the efficiency of a product focus
• Mass Customization


  • Dell Computer
• Process Analysis and Design Tools

  • Flow Charts/diagram
  • Value-Stream Mapping
  • Process Charts
  • Service Blueprinting
• Process Flow Diagram


  • The Assembly Line
• Value-Stream Mapping


  • Figure 7.6
• Process Chart


  • Figure 7.7
• Service Blueprinting


  • Focuses on the customer and provider interactions
  • Defines three levels of interaction
  • Each level has different management issues
  • Identifies potential failure points
• Service Blueprint


  • Figure 7.8
• Improving Service Productivity Strategies

  • Separation
  • Self-service
  • Automation
• Production Technology


  • Machine technology
  • Automatic identification systems (AISs)
  • Process control
  • Vision system
  • Robot
  • Automated storage and retrieval systems (ASRSs)
  • Automated guided vehicles (AGVs)
  • Flexible manufacturing systems (FMSs)
  • Computer-integrated manufacturing (CIM)
• Machine Technology


  • Increased precision
  • Increased productivity
  • Increased flexibility
  • Improved environmental impact
• Automatic Identification Systems (AISs)

  • Improved data acquisition
  • Reduced data entry errors
  • Increased speed
  • Increased scope of process automation
• Process Control


  • Real-time monitoring and control processes
  • Sensors collect data
  • Devices read data on a periodic basis
  • Measurements translated into digital signals then sent to a computer
  • Computer programs analyze the data
  • Resulting output may take numerous forms
• Vision Systems


  Use video cameras and computer technology in inspection roles
• Robots


  • Perform monotonous or dangerous tasks
  • Perform tasks requiring significant strength or endurance
  • Generally enhanced consistency and accuracy
• Automated Storage and Retrieval Systems (ASRSs)


  • Automated placement and withdrawal of parts and products
  • Reduced errors and labor
  • Particularly useful in inventory and test areas of manufacturing firms
• Automated Guided Vehicle (AGVs)


  • Electronically guided and controlled cars
  • Used for movement of products and/or individuals
• Flexible Manufacturing Systems (FMSs)


  • Computer controls both the workstation and the material handling equipment
  • Enhance flexibility and reduced waste
  • Can economically produce low volume and high quality
• Computer-Integrated Manufacturing (CIM)


  • Extension of flexible manufacturing systems
  • Backwards to engineering and inventory control
  • Forward into warehousing and shipping
  • Can also include financial and customer service areas
• Computer-Integrated Manufacturing (CIM)


  • Figure 7.10
• Business Process Redesign


  • The fundamental rethinking of business processes to bring about dramatic improvements in performance
  • Relies on reevaluating the purpose of the process and questioning both the purpose and the underlying assumptions
  • Requires reexamination of the basic process and its objectives
  • Focuses on activities that cross functional lines
  • Any process is a candidate for redesign