Process strategy
Objective is to build a production process that meets customer requirements and product specifications within cost and other managerial constraints’
What are the four process strategies
- Process Focus
- Repetitive Focus
- Product Focus
- Mass Customization
Process Focus
- facilities organized around certain processes or activities
- general purpose equipment and skilled personnel
- high degree of product flexibility
- high costs and low equipment utilization
- product flows may vary considerably making planning and scheduling a challenge
Repetitive Focus
- Faciliities often organized in assembly lines
- characterized by modules with parts and assemblies made previously
- modules may be combined for many output options
- less flexibility than process-focused facilities but more efficient.
Product Focus
Facilities are organized by product
- high volume but low variety of products
- long, continuous production runs enable efficient processes
- typically high fixed cost but low variable cost
- generally less skilled labor
Mass Customization
- rapid, low-cost production of goods and service to satisfy increasingly unquiet customer desires
- combines the flexibility of a process focus with the efficiency of a product focus.
- Imaginative and fast product design
- Rapid process design
- Tightly controlled inventory management
- Tight schedules
- Responsive supply chain partners
Why do companies usually not change processes?
- it is difficult and expensive
- may mean starting over
- process strategy determine transformation strategy for an extended period
- it’s important to get the right strategy for you business.
Flow charts
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
- defines three levels of interaction
- each level has different management issues
- identifies protential failure points.
What does machine technology do?
- increased precision
- increased productivity
- increased flexibility
- improved environmental impact
- reduced changeover time
- decreased size
- reduced power requirements
Automatic Identification Systems (AISs)
-improved data acquisition
-reduced data entry errors
- increased speed
- increase scope of process automation
(Example- bar codes)
When making a process what questions do you want to ask? Process Analysis and Design
Is the process designed to achieve a competitive advantage?
Does the process eliminate steps that do not add value?
Does the process maximize customer value?
Will the process win orders?
Production Technology
Machine technology Automatic identification systems (AISs) and RFID Process control Vision system Robots Automated storage and retrieval systems (ASRSs) Automated guided vehicles (AGVs) Flexible manufacturing systems (FMSs) Computer-integrated manufacturing (CIM)
Production Technology: Machine technology
Increased precision Increased productivity Increased flexibility Improved environmental impact Reduced changeover time Decreased size Reduced power requirements
Production Technology:Automatic identification systems (AISs) and RFID
Improved data acquisition Reduced data entry errors Increased speed Increased scope of process automation Example – Bar codes and RFID
Production Technology:Process control
Real-time monitoring and control of processes
Sensors collect data
Devices read data on periodic basis
Measurements translated into digital signals then sent to a computer
Computer programs analyze the data
Resulting output may take numerous forms
Production Technology: Vision system
Particular aid to inspection Consistently accurate Never bored Modest cost Superior to individuals performing the same tasks
Production Technology: Robots
Perform monotonous or dangerous tasks
Perform tasks requiring significant strength or endurance
Generally enhanced consistency and accuracy
Production Technology: Automated guided vehicles (AGVs)
Electronically guided and controlled carts
Used for movement of products and/or individuals
Production Technology: 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
Production Technology: 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
