OM (Chapter 7)

PROCESS SELECTION, DESIGN, AND ANALYSIS

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Custom, make to order

Generally produced and delivered as one-of-a-kind or in small quantities, and are designed to meet specific customers’ specifications.

Ex: ships, weddings

option, assemble to ordner

Configurations of standard parts, subassemblies, or services that can be selected by customers from a limited set.

Ex: Computer, Sandwich

standard, make to stock

Made according to a fixed design, and the customer has no options from which to choose.

Ex: Shoes, credit cards

projects

L-scale, customized initiatives that consist of many smaller tasks and activities that must be coordinated and completed to finish on time and within budget.

Characteristics: One of a kind, large scale, complex

Ex: Construction, consulting, software development

Job shop process

Organized around particular types of general-purpose equipment that are flexible and capable of customizing work for individual customers.

Characteristics: Significant setup and/or changeover time, batching, low to moderate volume, many routes, many different products, high work-force skills, customized to customer’s specs.

Examples: hospital, legal service, some restaurants

flow shop process

Organized around a fixed sequence of activities and process steps, such as an assembly line, to produce a limited variety of similar goods or services.

Characteristics: Little / no setup time, dedicated to small range of goods or services that are similar, similar sequence of process steps, moderate to high volume.

Examples: Assembly of automobiles etc., production of insurance policies

continuous flow process

Tt creates highly standardized goods or services, usually around the clock in very high volumes.

Characteristics: Very high volumes in a fixed processing sequence, high investment in system, 24-hour/7-day continuous operation, automated, dedicated to a small range of goods or services.

Examples: Chemical, gasoline, paint, toy, steel factories; electronic funds transfer

produc life cycle

Characterization of product growth, maturity, and decline over time.

(Important implications in terms of process design & choice)

product-process matrix

(y) - process choice decision

(x) - product characteristics

4 levels of process design

Task (specific unit of work required to create output)
activity - a group of tasks (sometimes called a workstation) needed to create and deliver an intermediate or final output.
process - a group of activities
value chain - a network of processes

process map (flowchart)

Describes the sequence of all process activities and tasks necessary to create and deliver a desired output or outcome.

value stream

Refers to all value-added activities involved in designing, producing, and delivering goods and services to customers.

value stream map

A VSM shows the process flows in a manner similar to an ordinary process map; however, the difference lies in that value stream maps highlight value-added versus non-value-added activities and include costs associated with work activities for both value- and non-value-added activities.

Questions to ask for process analysis

Are the steps in the process arranged in logical sequence?
Do all steps add value?
Are capacities of each step in balance; that is, are there any bottlenecks for which customers would have to wait for a long time?
What skills, equipment and tools are required at each step of the process? Should some steps be automated?