Oxford University Press, 2012. All rights reserved.
Operations Management Chapter 3 Operations Processes and Life Cycles Jones & Robinson Jones & Robinson: Operations Management Explain how process types have evolved
Define and explain process choice
Explain the role of operations management during the stages of the product life cycle
Explain the role of operations management during the stages of the service firm life cycle Learning Objectives Jones & Robinson: Operations Management Craft Era: before the industrial revolution and characterised by artisans making customised goods usually from their own small businesses Many of these process types are still in use today: Simple project e.g. simple house construction, large sculptures. Nowadays even management consulting or hairdressing Job shop e.g. auto repair shop, General Practitioner, eye glasses or jewellery making Batch process e.g. pharmaceuticals, wine making, wood or plastic products
Evolution of Process Types Jones & Robinson: Operations Management Mass Production Era: after the industrial revolution the following process types emerged: Complex projects e.g. large scale bridge or road building, exploration of outer space Batch production e.g. printing shop, hospital outpatients, classroom based education Assembly line e.g. domestic white goods, computers, automotive assembly Flow process e.g. paper manufacturing, oil and steel production
Evolution of Process Types Jones & Robinson: Operations Management Evolution of Process Types Jones & Robinson: Operations Management Strategic Operations Era: much more is required of business to meet the increasing demands of customers. This led to: Lean production e.g. Toyota; the removal of all waste from processes Agile manufacturing e.g. Benetton; the ability to alter any aspect of an operation to meet demands Mass customization e.g. Dell; low cost goods customized for individual customers Innovation and continuous improvement (CI) e.g. Dyson, Virgin Atlantic; innovation is rapid and significant change. CI is incremental change Evolution of Process Types
Jones & Robinson: Operations Management Process Type and Process Choice Jones & Robinson: Operations Management Process Types in Materials Processing Operations This identifies the standard variety / volume mix of Hayes and Wheelwright (1979) together with the move to a more strategic management approach in recent years Jones & Robinson: Operations Management Process Types in Customer Processing Operations This identifies the standard variety / volume mix of Silvestro et al. (1992) together with the move to a more strategic management approach in recent years Jones & Robinson: Operations Management Characteristics of Process Type Jones & Robinson: Operations Management Product Life Cycle Introduction Growth Maturity Saturation Decline
Jones & Robinson: Operations Management Product Life Cycle Jones & Robinson: Operations Management Service Firm Life Cycle Entrepreneurship Multi-site rationalization Growth Maturity Decline
Jones & Robinson: Operations Management OM Issues during the Service Firm Life Cycle Jones & Robinson: Operations Management Operations have developed from simple craft projects through to job shops and batch production. The industrial revolution brought the opportunity to mass produce goods using assembly line processes. Modern businesses have now developed strategic operations strategies based mainly on providing higher volumes with more customer choice, such as mass customization. The product life cycle has 4 stages: introduction growth maturity and decline
Summary Jones & Robinson: Operations Management The service firm life cycle has 5 stages: entrepreneurial stage multi-site rationalization growth maturity decline