3
Process Strategies
6
Process Flow Diagram
Customer
Customer sales
Purchasing
representative
Raw Modules
materials combined
and for many
module output
inputs options
Few
modules
9
Process Flow Diagram
Frame tube Frame-building Frame Hot-paint
bending work cells machining frame painting
THE ASSEMBLY LINE
TESTING Engines and
Incoming parts transmissions
28 tests
From Milwaukee
on a JIT arrival
Air cleaners Oil tank work cell schedule
Figure 7.3
10
Product Focus
Output
variations
Few in size,
inputs shape,
and
packaging
12
Product Focus
D A Scrap
Nucor Steel Plant steel
Continuous caster
B
C Electric
Ladle of molten steel furnace
H G
I
13
Mass Customization
Figure 7.5
Repetitive Focus
Flexible people
and equipment
Supportive
supply Modular techniques
chains
Mass Customization
Effective Rapid
scheduling throughput
techniques techniques
Process-Focused Product-Focused
High variety, low volume Low variety, high volume
Low utilization (5% to 25%) High utilization (70% to 90%)
General-purpose equipment Specialized equipment
16
Comparison of Processes
Process Focus Repetitive Focus Product Focus Mass Customization
(Low volume, high (Modular) (High-volume, low- (High-volume, high-
variety) variety) variety)
Table 7.2
17
Comparison of Processes
Process Focus Repetitive Focus Product Focus Mass Customization
(Low volume, high (Modular) (High-volume, low- (High-volume, high-
variety) variety) variety)
Table 7.2
19
Comparison of Processes
Process Focus Repetitive Focus Product Focus Mass Customization
(Low volume, high (Modular) (High-volume, low- (High-volume, high-
variety) variety) variety)
Table 7.2
20
Comparison of Processes
Process Focus Repetitive Focus Product Focus Mass Customization
(Low volume, high (Modular) (High-volume, low- (High-volume, high-
variety) variety) variety)
Table 7.2
21
Comparison of Processes
Process Focus Repetitive Focus Product Focus Mass Customization
(Low volume, high (Modular) (High-volume, low- (High-volume, high-
variety) variety) variety)
Fixed costs low, Fixed costs Fixed costs high, Fixed costs high,
variable costs high dependent on variable costs low variable costs must
flexibility of the be low
facility
Costing estimated Costs usually known High fixed costs High fixed costs
before job, known due to extensive mean costs and dynamic
only after the job experience dependent on variable costs make
utilization of costing a challenge
capacity
Table 7.2
22
Focused Processes
23
Changing Processes
24
Process Analysis and Design
Flow Diagrams - 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
25
“Baseline” Time-Function Map
Order Receive
Customer product product
Process
Sales order
Production Wait
control
Plant A Print
Plant B Extrude
Process
Sales order
Production
control Wait
Warehouse Wait
Transport Move
Figure 7.8
28
Process Chart
Figure 7.9
29
Service Blueprint
30
Service Blueprint
Personal Greeting Service Diagnosis Perform Service Friendly Close
Level Customer arrives
#1 for service Customer departs
F
Customer pays bill
Determine Notify
Warm greeting specifics customer
and obtain No and recommend
service request an alternative F
Standard provider
request Can
Level service be F
#2 done and does No
Direct customer customer
to waiting room approve? Notify
customer the
car is ready
F F F
Yes Yes
Perform
Level required work
#3
F
Prepare invoice
Figure 7.10 F
31
Process Analysis Tools
Flowcharts provide a view of the
big picture
Time-function mapping adds rigor
and a time element
Value-stream analysis extends to
customers and suppliers
Process charts show detail
Service blueprint focuses on
customer interaction
32
Service Process Matrix
Degree of Customization
Low High
Mass Service Professional Service
Private
banking
Commercial
banking
High General-
Full-service purpose law firms
stockbroker
Degree of Labor
Boutiques
Retailing
No-frills
Figure 7.11 airlines
33
Service Process Matrix
Mass Service and Professional Service
Labor involvement is high
Selection and training highly important
Focus on human resources
Personalized services
Service Factory and Service Shop
Automation of standardized services
Low labor intensity responds well to
process technology and scheduling
Tight control required to maintain
standards
34
Improving Service Productivity
Table 7.3
35
Improving Service Productivity
Table 7.3
36
Improving Service Productivity
Layout
Product exposure, customer
education, product enhancement
Human Resources
Recruiting and training
Impact of flexibility
38
Equipment and Technology
39
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)
40
Machine Technology
Increased precision
Increased productivity
Increased flexibility
Improved environmental impact
Reduced changeover time
Decreased size
Reduced power requirements
41
Automatic Identification
Systems (AISs)
Improved data acquisition
Reduced data entry errors
Increased speed
Increased scope
of process
automation
43
Process Control Software
44
Vision Systems
45
Robots
46
Automated Storage and
Retrieval Systems (ASRSs)
47
Automated Guided Vehicle
(AGVs)
48
Flexible Manufacturing
Systems (FMSs)
Computer controls both the workstation
and the material handling equipment
Enhance flexibility and reduced waste
Can economically produce low volume at
high quality
Reduced changeover time and increased
utilization
Stringent communication requirement
between components
49
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
Reducing the distinction between low-
volume/high-variety, and high-
volume/low-variety production
50
Computer-
Integrated
Manufacturing
(CIM)
Figure 7.12
51
Technology in Services
Service Industry Example
Table 7.4 52
Technology in Services
Service Industry Example