Layout strategy of Production and operation management

2. Process strategy

3. outline
 Process strategy
 Types of process strategy
 Process focus
 Repetitive focus strategy
 Product focus strategy
 Mass customization strategy

4. Process strategy

5. process
 Fundamental rule is to create product or service
 Transforming inputs into outputs
 Passive entity
 Should achieve competitive advantage

6. Strategy
 Detail road map for achieving the organizations objective
 Detail planning

7. Process strategy
 Detail plan to transform your inputs into outputs
 But why we need this??
value
Customer
requirement
Product
specification

8. Objective of process strategy
 Objective is to develop a production process that will meet the customer
requirement and product specification within the cost and other
managerial constraints
 Cost
 Time
 Resource
 Energy

9. Types of process strategy

10. Types of process strategy
 Types of process strategy
 Process focus
 Repetitive focus
 Product focus
 Mass customization

11. Trade off between volume and variety
Process focus: job
shops,(machine job,
print, hospitals)
Repetitive
(autos, motorcycles)
Product focus
(paper, steel, glass)
High Variety
One or few units per
run (customization)
Medium Variety
(Change product with
standardized modules)
Low Variety
(Similar products
with minor changes)
Mass
Customization
(difficult to achieve,
but huge rewards)
Poor strategy
(High variable cost)
Low-Volume
(Intermittent)
Medium-Volume
(Modular)
High-Volume
(Continuous)

12. Process focus
 Produce high variety, low
volume product
 Focus on departmental process
that are intermittent.
 Job shops
 Operate on small scale
 Finished goods are made to
orders

13. Process focus applications….
 Used in both manufacturing and service sector
 Banks
 Restaurants
 Hospitals
 Machine shops
 Print
 University etc.

16. Royal children hospital (Australia)
 Founded in 1870 by Drs William smith& john singleton.
 First name “Melbourne free hospital for sick children
 Ranked 1st in Australia
 Ranked 53 by world bank

17. Royal children hospital (Australia)
 Provide 200 services
 Psychology
 Surgery
 Urology
 Trauma
 Dentistry
 Cardiac surgery etc.
 83000 patients annually, up to 350 daily
 70+ staff over 24/7
 Waiting time for checkup 6hrs

19. Umair Ashraf

20. Repetitive focus

21. Repetitive focus
 The repetitive strategy is the classic assembly line which is widely
used and has an application in assembly of all automobiles and
household appliances.
 It uses modules

22. Repetitive Focused Strategy
 Repetitive focus strategy are organized by assembly lines
 Characterized by modules
Parts & assemblies made previously
 Modules are combined for desired output.
 Other names
Assembly line
Production line

23. Trade off between volume and variety
Process focus
Repetitive
(autos, motorcycles)
Product focus
High Variety
One or few units per
run (customization)
Medium Variety
(Change product with
standardized modules)
Low Variety
(Similar products
with minor changes)
Mass
Customization
Poor strategy
Low-Volume
(Intermittent)
Medium-Volume
(Modular)
High-Volume
(Continuous)

25.  Home appliances
 Autos
 Motorcycle
Example

26. Honda
 Japanese public multinational corporation
 manufacturer of automobiles, motorcycles and power equipment
 September 24, 1948
 Takeo Fujidawa and Soichiro honda
 Head quarter in Minato Tokyo Japan
 Well recognized company in the world

28. Hafiz Usama

29. Product focus

30. Product-Focus
 In product focus the organization is build around the product
 How this product will be made
 Then deciding the process, layouts, equipment's etc.

31. Product-Focused Strategy
2/22/2017
Facilities are organized by product
High volume, low variety products with high fixed cost
Where found
 Discrete unit manufacturing
 Continuous process manufacturing
 Other names
 Line flow production
 Continuous production

32. Trade off between volume and variety
Process focus: job
shops,(machine job,
print, hospitals)
Repetitive
(autos, motorcycles)
Product focus
(paper, steel, glass)
High Variety
One or few units per
run (customization)
Medium Variety
(Change product with
standardized modules)
Low Variety
(Similar products
with minor changes)
Mass
Customization
(difficult to achieve,
but huge rewards)
Poor strategy
(High variable cost)
Low-Volume
(Intermittent)
Medium-Volume
(Modular)
High-Volume
(Continuous)

34. Mitsui & co
 Established in July 25,1947 as Daiichi Bussan Kaisha, Ltd.
 In 1959, merged with several other trading companies and changed its name
to Mitsui & Co., Ltd.
 Headquarter : Tokyo japan
 Slogan: 360° business innovation
 No of employees: 47,118
 Six major business areas:
 Energy, Chemicals , Metals, Machinery and Infrastructure, Lifestyle, Information and
Corporate Development

36. Kirran Siddique

37. Mass
Customization

38. “Mass Customization”-
is the process of
delivering wide-market
goods and services that
are modified to satisfy
a specific customer
need

39. Mass Customization
(high volume & high variety)

40. Founder: Kiichiro Toyoda
Founded: August 28, 1937; 78 years ago
Headquarters: Toyota, Aichi, Japan
Products: Automobiles, luxury vehicles, commercial vehicles, engines
No. of employees: 344,109 (2015)

42. Build-to-order Manufacturing
It is a system that starts with an order,
depending on the demands of customers,
(frequently customized).
Example: manufacturing or assembling
only starts after an order is received.

43. Founder: Bill Bowerman & Phil Knight
Founded: January 25, 1964; 52 years ago
(as Blue Ribbon Sports)
1971 (as Nike, Inc.).
Head quarters: Washington County, Oregon,
United States (Near Beaverton, Oregon).
Products:
Athletic footwear
and apparel,
sport equipment
& other athletic and recreational products

45.  Dell Headquarters in Round Rock, Texas.
 Industry: Computer hardware, Computer software, IT services, IT consulting
 Founded: February 1, 1984; 32 years ago
 Products serving world wide:
 Personal computers
 Servers
 Peripherals
 Smartphones
 Televisions