1. Process Design Strategies Chapter 3

3. Different Dimensions of Customer Contact in Service Processes Figure 3.2 Present Physical presence Absent People What is processed Possessions Active, visible Contact intensity Passive, out of sight Personal Personal attention Impersonal Face to face Method of delivery Regular mail High Contact Dimension Low Contact

4. Customer-Contact Model for Processes Figure 3.3 Front office Hybrid office Back office (1) (2) (3) High interaction with Some interaction with Low interaction with customers, highly customers, standard customers, standardized customized service services with some options services Process Characteristics (1) Jumbled flows, complex work with many exceptions (2) Flexible flows with some dominant paths, moderate job complexity with some exceptions (3) Line flows, routine work easily understood by employees Less Complexity, Less Divergence, More Line Flows Less Customer Contact and Customization Service Package

7. Product-Process Matrix for Processes Figure 3.6 (1) (2) (3) (4) (5) One of a kind Low volume, Multiple Few major High volume products, made low products products, high to customer standardization moderate higher standardization, order volume volume commodity products Process Characteristics (1) Complex and highly customized process, unique sequence of tasks (2) Jumbled flows, complex work with many exceptions (3) Disconnected line flows, moderately complex work (4) Connected line, routine work (5) Continuous flows, highly repetitive work Less Complexity, Less Divergence, More Line Flows Less Customization and Higher Volume Product Design Continuous process Project process Line process Batch process Job process

8. Automobile Assembly Process Figure 3.7 A: Front-end body-to-chassis assembly H: Hood attachment F: Fluid filling S: Start-up testing A S H F Midsized 6 cylinder Midsized 6 cylinder Compact 4 cylinder Compact 4 cylinder

9. The Big Picture King Soopers Bakery

10. The Big Picture King Soopers Bakery Figure 3.8 7000 loaves/hr 1000 pastries/hr 50 cakes/hr Bread line Pastry line Cake line High Low

11. Vertical Integration Figure 3.9 King Soopers In-house processes Backward integration Raw materials (eggs, flour, sugar) Forward integration Customers (grocery stores)

12. Costs and Volume Figure 3.10 F 2 F 1 Process 1: General-purpose equipment Process 2: Special-purpose equipment Break-even quantity Units per year (Q) Total cost (dollars)

13. Decision Patterns for Service Processes High Contact Customer Contact Low Contact Figure 3.11 1. Process Structure Back office Low complexity, low divergence, and line flows Front office High complexity, high divergence, and jumbled flows Varies Varies 5. Capital intensity High Low 4. Resource flexibility Varies Varies 3. Vertical integration High Low 2. Customer involvement

14. Decision Patterns for Manufacturing Processes High Volume Customer Contact Low Volume Figure 3.11 1. Process Structure Project or job process High complexity, high divergence, and diverse flows Line or continuous process Low complexity, low divergence, and line flows High Low 5. Capital intensity Low High 4. Resource flexibility High Low 3. Vertical integration Low High 2. Customer involvement

15. Custom Molds Plant Layout Figure 3.13 Dock Dock Lunch room Cut and trim Receiving raw materials inventory Dry mix Assembly Wet mix Offices Packing and shipping finished goods inventory Testing and inspection Injection machines Mold fabrication