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PROCESS SELECTION Process strategies: Determining how to produce a product & provide services Objective o Meet or exceed customer

er requirements o Meet costs and managerial goals Long-run effects o Cost & quality o Product & volume flexibility

3. Product-focused a. Facilities organized by products b. High volume, low variety products c. Where found i. Discrete unit manufacturing ii. Continuous process manufacturing d. Line flow production, continuous production PROS a. b. c. d. CONS a. Lower product flexibility b. More specialized equipment c. Usually higher capital investment MASS CUSTOMIZATION Lower variable cost per unit Lower but more specialized labor skills Easier production planning and control High equipment utilization

Types of Process strategy: 1. Process-focused a. Facilities are organized by process b. Similar processes are together c. Low volume, high variety products d. Jumbled flow e. Intermittent process, Job shop PROS a. Greater product flexibility b. More general purpose equipment c. Lower initial capital investment CONS a. High variable costs b. More highly trained personnel c. More difficult production planning and control d. Low equipment utilization 2. Repetitive-focused a. Facilities organized by assembly lines b. Characterized by modules: parts & assemblies made previously c. Modules combined for many output options d. Assembly line, Production line CONSIDERATIONS a. More structured than process-focused, less structured than product focused b. Enables quasi-customization c. Using modules, it enjoys economic advantage of continuous process, and custom advantage of low-volume, highvariety model

Using technology and imagination to rapidly mass-produce products that cater to sundry unique customer designs Under mass customization the 3 process models become so flexible

Repetitive focus (flexible equipment) -> mass customization = modular techniques Process focused (general purpose equipment) -> mass customization = effective scheduling techniques Product focused (specialized equipment) -> mass customization = rapid throughput techniques TOOLS FOR PROCESS DESIGN Flow diagrams Process charts Time-function/process mapping Work flow analysis

QUESTIONS FOR PROCESS ANALYSIS AND DESIGN Process designed to achieve competitive advantage Process eliminate steps that do not add value

Process maximize customer value as perceived by the customer Process win orders

WORK FLOW ANALYSIS 4 PHASES REQUEST from a customer or an offer to provide services by a performer NEGOTIATION allowing the customer and the performer to agree on how the work should be done and what will constitute customer satisfaction PERFORMANCE of the assignment and completion ACCEPTANCE closing the transaction provided the customer expresses satisfaction and conditions were met ATTAINING LEAN PRODUCTION Focus on inventory production Build systems that help employees Reduce space requirements Develop close relationships with suppliers Educate suppliers Eliminate all but value-added activities Develop the workforce Make jobs more challenging Set sights for perfection