Heizer om10 ch07-process startegy

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Heizer om10 ch07-process startegy

  1. 1. 10/16/2010 Process Strategy 7 and Sustainability Global Company Profile: Harley- Outline Davidson Four Process Strategies PowerPoint presentation to accompany Process Focus Heizer and Render Operations Management, 10e Repetitive Focus Principles of Operations Management, 8e Product Focus PowerPoint slides by Jeff Heyl Mass Customization Focus Comparison of Process Choices© 2011 Pearson Education, Inc. publishing as Prentice Hall 7-1 © 2011 Pearson Education, Inc. publishing as Prentice Hall 7-2 Outline – Continued Outline – Continued Special Consideration for Service Process Analysis and Design Process Design Flow Charts Customer Interaction and Process Time Function Time-Function Mapping Design Value-Stream Mapping More Opportunities to Improve Process Charts Service Processes Service Blueprinting Selection of Equipment and Technology© 2011 Pearson Education, Inc. publishing as Prentice Hall 7-3 © 2011 Pearson Education, Inc. publishing as Prentice Hall 7-4 Outline – Continued Outline – Continued Production Technology Production Technology (cont.) Machine Technology Automated Storage and Retrieval Automatic Identification Systems Systems (ASRSs) (AISs) d (AIS ) and RFID Automated G id d Vehicles (AGVs) A t t d Guided V hi l (AGV ) Process Control Flexible Manufacturing Systems Vision Systems (FMSs) Robots Computer-Integrated Manufacturing (CIM)© 2011 Pearson Education, Inc. publishing as Prentice Hall 7-5 © 2011 Pearson Education, Inc. publishing as Prentice Hall 7-6 1
  2. 2. 10/16/2010 Outline – Continued Learning Objectives When you complete this chapter you should be able to: Technology in Services Process Redesign 1. Describe four production processes Sustainability S t i bilit 2. Compute crossover points for different processes 3. Use the tools of process analysis© 2011 Pearson Education, Inc. publishing as Prentice Hall 7-7 © 2011 Pearson Education, Inc. publishing as Prentice Hall 7-8 Learning Objectives Harley- Harley-Davidson When you complete this chapter you should be able to: Repetitive manufacturing works The leading U.S. motorcycle company 4. Describe customer interaction in Emphasizes quality and lean process design manufacturing 5. Identify recent advances in Materials as Needed system production technology Many variations possible 6. Discuss the 4 Rs of sustainability Tightly scheduled repetitive production line© 2011 Pearson Education, Inc. publishing as Prentice Hall 7-9 © 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 10 Process Flow Diagram Process Strategies Frame tube Frame-building Frame Hot-paint bending work cells machining frame painting THE ASSEMBLY LINE TESTING 28 tests Incoming parts Engines and transmissions The objective of a process strategy is From Milwaukee on a JIT arrival to build a production process that Air cleaners Oil tank work cell schedule meets customer requirements and Fluids and mufflers Shocks and forks product specifications within cost Fuel tank work cell Handlebars and other managerial constraints Wheel work cell Fender work cell Roller testing Crating© 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 11 © 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 12 2
  3. 3. 10/16/2010 Process, Volume, and Variety Process Strategies Figure 7.1 Volume Low Repetitive High Volume Process Volume How to produce a product or High Variety one or few Process Focus projects, job shops Mass Customization (difficult to achieve, provide a service that units per run, (allows (machine, print, but huge rewards) customization) hospitals, restaurants) Dell Computer Meets or exceeds customer Arnold Palmer Hospital requirements Changes in Modules modest runs, Meets cost and managerial goals Repetitive standardized (autos, motorcycles, modules home appliances) Has long term effects on Changes in Harley-Davidson Attributes Product Focus Efficiency and production flexibility (such as grade, (commercial Poor Strategy quality, size, thickness, etc.) (Both fixed and baked goods, Costs and quality variable costs steel, glass, beer) long runs only Frito-Lay are high)© 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 13 © 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 14 Process Strategies Process Focus Four basic strategies Facilities are organized around specific activities or processes 1. Process focus General purpose equipment and skilled 2. Repetitive focus personnel 3. Product focus High degree of product flexibility Typically high costs and low equipment 4. Mass customization utilization Within these basic strategies there are Product flows may vary considerably making planning and scheduling a many ways they may be implemented challenge© 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 15 © 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 16 Process Focus Many inputs (surgeries, sick patients, baby deliveries, emergencies) Repetitive Focus Facilities often organized as assembly lines Characterized by modules with parts (low volume, high variety, and assemblies made previously Many departments and intermittent processes) many routings Modules may be combined for many Arnold Palmer Hospital output options Less flexibility than process-focused facilities but more efficient Figure 7.2(a) Many different outputs (uniquely treated patients)© 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 17 © 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 18 3
  4. 4. 10/16/2010 Raw materials and Repetitive module inputs (multiple engine models, Product Focus Focus wheel modules) Facilities are organized by product High volume but low variety of Few products modules Long, continuous production runs L ti d ti (modular) enable efficient processes Harley Davidson Typically high fixed cost but low variable cost Figure 7.2(b) Modules combined for many Generally less skilled labor Output options (many combinations of motorcycles)© 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 19 © 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 20 Product Focus Few Inputs (corn, potatoes, water, Product Focus seasoning) D A Scrap Nucor Steel Plant steel tinuous caster B C Electric Ladle of molten steel furnace Continuous cast steel Cont sheared into 24-ton slabs (low-volume, high variety, Hot tunnel furnace - 300 ft continuous process) E F Frito-Lay Hot mill for finishing, cooling, and coiling H G Output variations in size, I Figure 7.2(c) shape, and packaging (3-oz, 5-oz, 24-oz package labeled for each material)© 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 21 © 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 22 Mass Customization Mass Customization Number of Choices The rapid, low-cost production of Item 1970s 21st Century goods and service to satisfy Vehicle models 140 286 increasingly unique customer Vehicle types 18 1,212 desires Bicycle types 8 211,000 Software titles 0 400,000 Combines the Web sites 0 162,000,000 Movie releases per year 267 765 flexibility of a New book titles 40,530 300,000 process focus Houston TV channels 5 185 Breakfast cereals 160 340 with the efficiency Items (SKUs) in 14,000 150,000 of a product focus supermarkets LCD TVs 0 102 Table 7.1© 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 23 © 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 24 4
  5. 5. 10/16/2010 Mass Many parts and component inputs Mass Customization (chips, hard drives, Customization software, cases) Repetitive Focus Figure 7.3 Flexible people and equipment Modular techniques Accommodating Product and Responsive Process Design Supply Chains Mass Customization Many modules Rapid (high-volume, high-variety) throughput Effective techniques Dell Computer scheduling techniques Process-Focused Product-Focused High variety, low volume Low variety, high volume Figure 7.2(d) Low utilization (5% to 25%) High utilization (70% to 90%) Many output versions General-purpose equipment Specialized equipment (custom PCs and notebooks)© 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 25 © 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 26 Mass Customization Comparison of Processes Mass Process Focus Repetitive Product Focus Customization Imaginative and fast product (low-volume, Focus (high-volume, (high-volume, high-variety) (modular) low-variety) high-variety) design 1. Small 1. Long runs, 1. Large 1. Large quantity Rapid process design quantity and large variety usually a standardized quantity and small variety and large variety of of products product with of products products are Tightly controlled inventory are produced options, produced are produced produced management from modules Tight schedules 2. Equipment used is 2. Special equipment 2. Equipment used is 2. Rapid changeover on general aids in use of special flexible Responsive supply chain partners purpose an assembly line purpose equipment© 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 27 © 2011 Pearson Education, Inc. publishing as Prentice Hall Table 7.2 7 - 28 Comparison of Processes Comparison of Processes Mass Mass Process Focus Repetitive Product Focus Customization Process Focus Repetitive Product Focus Customization (low-volume, Focus (high-volume, (high-volume, (low-volume, Focus (high-volume, (high-volume, high-variety) (modular) low-variety) high-variety) high-variety) (modular) low-variety) high-variety) 3. Operators 3. Employees 3. Operators 3. Flexible 5. Raw-material 5. JIT 5. Raw material 5. Raw are broadly are modestly are less operators are inventories procurement inventories material skilled trained broadly trained for the high relative techniques are low inventories skilled necessary to the value are used relative to the are low customization of the value of the relative to product product the value 4. There are 4. Repetitive 4. Work orders 4. Custom of the many job operations and job orders require product instructions reduce instructions many job because training and are few instructions 6. Work-in- 6. JIT inventory 6. Work-in- 6. Work-in- each job changes in because they process is techniques process process changes job are high are used inventory is inventory instructions standardized compared to low driven down output compared to by JIT, output kanban, lean production© 2011 Pearson Education, Inc. publishing as Prentice Hall Table 7.2 7 - 29 © 2011 Pearson Education, Inc. publishing as Prentice Hall Table 7.2 7 - 30 5
  6. 6. 10/16/2010 Comparison of Processes Comparison of Processes Mass Mass Process Focus Repetitive Product Focus Customization Process Focus Repetitive Product Focus Customization (low-volume, Focus (high-volume, (high-volume, (low-volume, Focus (high-volume, (high-volume, high-variety) (modular) low-variety) high-variety) high-variety) (modular) low-variety) high-variety) 7. Units move 7. Assembly is 7. Swift 7. Goods move 9. Scheduling 9. Scheduling 9. Scheduling 9. Sophisticated slowly measured in movement of swiftly is complex, is based on is relatively scheduling is through the hours and units through through the concerned building simple, required to facility days the facility is facility with trade trade- various concerned accommodate typical offs between models from with custom orders inventory, a variety of establishing 8. Finished 8. Finished 8. Finished 8. Finished capacity, and modules to output rate goods are goods made goods are goods are customer forecasts sufficient to usually made to frequent usually made often build- service meet to order and forecast to forecast to-order forecasts not stored and stored (BTO) 10. Fixed costs 10. Fixed costs 10. Fixed costs 10. Fixed costs tend to be dependent tend to be tend to be low and on flexibility high and high, variable variable of the variable costs must be costs high facility costs low low© 2011 Pearson Education, Inc. publishing as Prentice Hall Table 7.2 7 - 31 © 2011 Pearson Education, Inc. publishing as Prentice Hall Table 7.2 7 - 32 Crossover Charts Focused Processes Variable costs $ Variable costs $ Variable costs $ Focus brings efficiency Fixed costs Fixed costs Fixed costs Focus on depth of product line Low volume, high variety Repetitive High volume, low variety rather than breadth Process A Process B Process C Focus can be F b $ Customers 400,000 Products 300,000 200,000 Service Fixed cost Fixed cost Fixed cost Process A Process B Process C TechnologyFigure 7.4 (2,857) V1 V2 (6,666) Volume© 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 33 © 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 34 Changing Processes Process Analysis and Design Difficult and expensive Is the process designed to achieve a May mean starting over competitive advantage? Process strategy determines P t t d t i Does the process eliminate steps that do not add value? transformation strategy for an extended period Does the process maximize customer value? Important to get it right Will the process win orders?© 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 35 © 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 36 6
  7. 7. 10/16/2010 Process Analysis and “Baseline” Time-Function Map Time- Design Customer Order product Receive product Process Sales order Flow Charts - Shows the movement of Order materials Production control Wait Product Time Function Time-Function Mapping - Shows flows and der Plant Pl t A Ord Print Pi t time frame Product WIP Warehouse Wait Wait Wait Product WIP WIP WIP Plant B Extrude Transport Move Move 12 days 13 days 1 day 4 days 1 day 10 days 1 day 0 day 1 day Figure 7.5 52 days© 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 37 © 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 38 “Target” Time-Function Map Time- Process Analysis and Customer Order Receive Design product product Flow Charts - Shows the movement of Sales Process order materials Time-Function Mapping - Shows flows and Product Order Production Wait control time frame Order r WIP Plant Print Extrude Value-Stream Mapping - Shows flows and time and value added beyond the Product Warehouse Wait immediate organization Process Charts - Uses symbols to show Product Transport Move key activities 1 day 2 days 1 day 1 day 1 day 6 days Service Blueprinting - focuses onFigure 7.5 customer/provider interaction© 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 39 © 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 40 Value- Value-Stream Mapping Process Chart Figure 7.6© 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 41 © 2011 Pearson Education, Inc. publishing as Prentice Hall Figure -7.7 7 42 7
  8. 8. 10/16/2010 Service Blueprint Service Blueprinting Personal Greeting Service Diagnosis Perform Service Friendly Close Level Customer arrives for service. Customer departs #1 (3 min) Focuses on the customer and F provider interaction Determine specifics. Notify Customer pays bill. (4 min) Warm greeting customer (5 min) No and recommend Defines three levels of interaction and obtain service request. (10 sec) an alternative provider. F Standard Can F Level request. (7min) Each level has different #2 Direct customer (3 min) service be done and does customer No Notify customer the management issues to waiting room. approve? (5 min) car is ready. (3 min) Identifies potential failure points F F F F Yes Yes Perform Level required work. F Prepare invoice. #3 (varies) (3 min) Figure 7.8© 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 43 © 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 44 Process Analysis Tools Special Considerations for Flowcharts provide a view of the Service Process Design big picture Some interaction with customer is Time-function mapping adds rigor necessary, but this often affects and a time element performance adversely Value-stream analysis extends to The better these interactions are customers and suppliers accommodated in the process design, the more efficient and effective the Process charts show detail process Service blueprint focuses on Find the right combination of cost and customer interaction customer interaction© 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 45 © 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 46 Service Process Matrix Service Process Matrix Degree of Customization Low High Mass Service Professional Service Traditional Private banking orthodontics Mass Service and Professional Service Commercial banking High Full-service General- purpose law firms Labor involvement is high stockbroker Selection and training highly g g y bor Digital Boutiques Degree of Lab orthodontics Retailing important Service Factory Law clinics Service Shop Limited-service Specialized Focus on human resources stockbroker hospitals Warehouse and catalog stores Fast-food Fine-dining restaurants Hospitals Personalized services Low restaurants Airlines No-frills airlinesFigure 7.9© 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 47 © 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 48 8
  9. 9. 10/16/2010 Service Process Matrix Improving Service Productivity Service Factory and Service Shop Strategy Technique Example Automation of standardized Separation Structure service so Bank customers go to customers must go a manager to open a services where the service is new account, to loan offered ff d officers for loans, and ffi f l d Low labor intensity responds well to tellers for deposits to process technology and Self-service Self-service so Supermarkets and scheduling customers examine, department stores compare, and Internet ordering Tight control required to maintain evaluate at their own standards pace Table 7.3© 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 49 © 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 50 Improving Service Improving Service Productivity Productivity Strategy Technique Example Strategy Technique Example Postponement Customizing at Customizing vans at Automation Separating services Automatic teller delivery delivery rather than at that may lend machines production themselves to some type o auto at o of automation Focus Restricting the Limited-menu Scheduling Precise personnel Scheduling ticket offerings restaurant scheduling counter personnel at Modules Modular selection of Investment and 15-minute intervals at service insurance selection airlines Modular production Prepackaged food Training Clarifying the service Investment counselor, modules in options funeral directors restaurants Explaining how to After-sale maintenance avoid problems personnel Table 7.3 Table 7.3© 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 51 © 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 52 Improving Service Equipment and Technology Processes Often complex decisions Layout Possible competitive advantage Product exposure, customer education, product enhancement Flexibility Human Resources Stable processes Recruiting and training May allow enlarging the scope of the processes Impact of flexibility© 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 53 © 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 54 9
  10. 10. 10/16/2010 Production Technology Machine Technology Machine technology Automatic identification Increased precision systems (AISs) Increased productivity Process control Vision system Increased flexibility Robot Improved environmental impact Automated storage and retrieval systems Reduced changeover time (ASRSs) Automated guided vehicles (AGVs) Decreased size Flexible manufacturing systems (FMSs) Reduced power requirements Computer-integrated manufacturing (CIM)© 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 55 © 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 56 Automatic Identification Process Control Systems (AISs) Real-time monitoring and control of processes Improved data acquisition Sensors collect data Reduced data entry errors Devices read data on periodic basis Increased speed Measurements translated into digital Increased scope signals then sent to a computer of process Computer programs analyze the data automation Resulting output may take numerous forms Example – Bar codes and RFID© 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 57 © 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 58 Vision Systems Robots Particular aid to inspection Perform monotonous or dangerous Consistently tasks accurate Perform tasks Never bored requiring significant strength or Modest cost endurance Superior to Generally enhanced individuals performing the same consistency and tasks accuracy© 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 59 © 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 60 10
  11. 11. 10/16/2010 Automated Storage and Automated Guided Vehicle Retrieval Systems (ASRSs) (AGVs) Automated placement and Electronically guided and withdrawal of parts and products controlled carts Reduced errors and labor Used for movement of products Particularly useful in inventory and and/or individuals test areas of manufacturing firms© 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 61 © 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 62 Flexible Manufacturing Computer- Computer-Integrated Systems (FMSs) Manufacturing (CIM) Computer controls both the workstation Extension of flexible manufacturing and the material handling equipment systems Enhance flexibility and reduced waste Backwards to engineering and inventory control Can economically produce low volume at Forward into warehousing and shipping high quality Can also include financial and customer Reduced changeover time and increased service areas utilization Reducing the distinction between low- Stringent communication requirement volume/high-variety, and high- between components volume/low-variety production© 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 63 © 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 64 Computer- Computer- Technology in Services Integrated Service Industry Example Manufacturing (CIM) Financial Debit cards, electronic funds transfer, ATMs, Services Internet stock trading, on-line banking via cell phone Education Electronic bulletin boards, on-line journals, WebCT, WebCT Blackboard and smart phones Utilities and Automated one-man garbage trucks, optical government mail and bomb scanners, flood warning systems, meters allowing homeowners to control energy usage and costs Restaurants and Wireless orders from waiters to kitchen, foods robot butchering, transponders on cars that track sales at drive-throughs Figure 7.10 Communications Interactive TV, ebooks via Kindle 2© 2011 Pearson Education, Inc. publishing as Prentice Hall 7 - 65 © 2011 Pearson Education, Inc. publishing as Prentice Hall Table 7.4 7 - 66 11

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