The document discusses process design strategy and major process design decisions. It describes process design as selecting inputs, resources, workflows and methods to transform inputs into outputs. Major process design decisions include process structure, customer involvement, vertical integration, resource flexibility, and capital intensity. The document provides details on each of these decisions and how they impact process design for both services and manufacturing.
Product design and development by Karl T. UlrichJoy Biswas
Chapter 1
Introduction to Product design and Development by Karl T. Ulrich. Here is the presentation file of chapter 1 by the students of SUST IPE 2010-11 batch.
Facility Location Planning
What is facility location ?
Operations Strategies for Multiple Facilities
Factors affecting Facility Location Planning
Dimensional Analysis
Brown and Gibson Model for Site location
Locating Foreign Operations Facilities
Product design and development by Karl T. UlrichJoy Biswas
Chapter 1
Introduction to Product design and Development by Karl T. Ulrich. Here is the presentation file of chapter 1 by the students of SUST IPE 2010-11 batch.
Facility Location Planning
What is facility location ?
Operations Strategies for Multiple Facilities
Factors affecting Facility Location Planning
Dimensional Analysis
Brown and Gibson Model for Site location
Locating Foreign Operations Facilities
Competitive dimensions - strategic management - Manu Melwin Joymanumelwin
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Manufacturers across globe are facing tough times due to increasing costs and competition. This raises the need to focus on automating their business processes. And this process becomes even more critical when they try to achieve higher flexibility and agility to respond to dynamic market conditions and prepare them to introduce new products and services to market. The biggest concern lies in optimizing the traditional supply chain as companies tend to procure from low-cost centers. This results in highly complex supply chains that are difficult to manage.
We have developed an integrated solution - Lean-ERP, which leverages the virtues of both lean manufacturing and enterprise resource planning (ERP) so manufacturing enterprises can achieve sustainable bottom line improvements.
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Business processes and decisions are the backbone of every company, from small to the Fortune 50. It is these processes and decisions that can create competitive advantage, helping the company react more quickly to changing trends. The processes can also drag the company down if they do not serve the business with agility. The first step in building business agility is to understand how the business works today, what are the processes, what are the decisions we should take, and how should we take them. Understanding these processes and decisions can enable a company to improve, streamline, and increase efficiency.
IBM Blueworks Live provides a single, shared repository where all the stakeholders can find a single version of truth about any process. It facilitates successful process improvement projects by enabling all the users in the process improvement team to be aligned to the process goals, problems, and areas of improvement. IBM Blueworks Live directly integrates with IBM Business Process Manager so that documentation of the business processes are implemented, run, and optimized.
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Ethnobotany in herbal drug evaluation,
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The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
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Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
10. Customer-Contact Matrix forCustomer-Contact Matrix for
Service ProcessesService Processes
Less Customer Contact and CustomizationLess Customer Contact and Customization
ServiceService PackagePackage
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
LessComplexity,LessDivergence,MoreLineFlows
11. Process Structure in ManufacturingProcess Structure in Manufacturing
Manufacturing processes convert materials into goods that
have a physical form.
12. Process choicesProcess choices
Project Process:Project Process: A process characterized by a high degree ofA process characterized by a high degree of
customization, the large scope of each product, and the release ofcustomization, the large scope of each product, and the release of
substantial resources once it is completed.substantial resources once it is completed.
Job ProcessJob Process: A process with the flexibility needed to produce a: A process with the flexibility needed to produce a
wide variety of products in significant quantities, with considerablewide variety of products in significant quantities, with considerable
complexity and divergence in the steps performed.complexity and divergence in the steps performed.
Batch ProcessBatch Process: A process that differs from the job process with: A process that differs from the job process with
respect to volume, variety and quantity.respect to volume, variety and quantity.
Line ProcessLine Process: A process that lies between the batch and: A process that lies between the batch and
continuous processes on the continuum; volumes are high andcontinuous processes on the continuum; volumes are high and
products are standardized, which allows resources to be organizedproducts are standardized, which allows resources to be organized
around particular products.around particular products.
ContinuousContinuous FlowFlow: The extreme end of high-volume, standardized: The extreme end of high-volume, standardized
production and rigid line flows, with production not starting andproduction and rigid line flows, with production not starting and
stopping for long time intervals.stopping for long time intervals.
13. Product-Process Matrix for ProcessesProduct-Process Matrix for Processes
ProcessProcess
CharacteristicsCharacteristics
(1)(1)
Complex and highlyComplex and highly
customized process,customized process,
unique sequence ofunique sequence of
taskstasks
(2)(2)
Disconnected lineDisconnected line
flows, moderatelyflows, moderately
complex workcomplex work
(3)(3)
Connected line, ,Connected line, ,
highly repetitive workhighly repetitive work
(4)(4)
Continuous flowsContinuous flows
LessComplexity,LessDivergence,MoreLineFlowsLessComplexity,LessDivergence,MoreLineFlows
Less Customization and Higher VolumeLess Customization and Higher Volume
Product DesignProduct Design
Continuous
process
Project
process
Line
process
Batch
process
Job
process
One-of-a-kindOne-of-a-kind
products, madeproducts, made
to customerto customer
orderorder
Low volume,Low volume,
lowlow
standardizationstandardization
MultipleMultiple
products,products,
moderatemoderate
volumevolume
Few majorFew major
products,products,
higher volumehigher volume
High volume,High volume,
highhigh
standardizationstandardization
14. Production and Inventory StrategiesProduction and Inventory Strategies
Make-to-order strategyMake-to-order strategy: A strategy used by manufactures: A strategy used by manufactures
that make products to customer specifications in lowthat make products to customer specifications in low
volume.volume.
Assemble-to-orderAssemble-to-order strategystrategy: A strategy for producing a: A strategy for producing a
wide variety of products from relatively few assemblies andwide variety of products from relatively few assemblies and
components after the customer orders are received.components after the customer orders are received.
Make-to-stockMake-to-stock strategystrategy: A strategy that involves holding: A strategy that involves holding
items in stock for immediate delivery, thereby minimizingitems in stock for immediate delivery, thereby minimizing
customer delivery times.customer delivery times.
Mass productionMass production: A term sometimes used in the popular: A term sometimes used in the popular
press for a line process that uses the make-to-stockpress for a line process that uses the make-to-stock
strategy.strategy.
15. Customer InvolvementCustomer Involvement
Good or Bad?Good or Bad?
Improved Competitive CapabilitiesImproved Competitive Capabilities: More customer: More customer
involvement can mean better quality, faster delivery,involvement can mean better quality, faster delivery,
greater flexibility, and even lower cost.greater flexibility, and even lower cost.
– Customers can come face-to-face with the service providers,Customers can come face-to-face with the service providers,
where they can ask questions, make special requests on thewhere they can ask questions, make special requests on the
spot and provide additional information.spot and provide additional information.
– Self-service is the choice of many retailers.Self-service is the choice of many retailers.
16. Customer InvolvementCustomer Involvement
Good or Bad?Good or Bad?
• However customer involvement can be disruptive and makeHowever customer involvement can be disruptive and make
the process less efficient.the process less efficient.
– Greater interpersonal skills are required.Greater interpersonal skills are required.
– Quality measurement becomes more difficult.Quality measurement becomes more difficult.
18. Resource FlexibilityResource Flexibility
Flexible workforceFlexible workforce: A workforce whose members are: A workforce whose members are
capable of doing many tasks, either at their owncapable of doing many tasks, either at their own
workstations or as they move from one workstation toworkstations or as they move from one workstation to
another.another.
– Job EnlargementJob Enlargement
– Job RotationJob Rotation
– Job EnrichmentJob Enrichment
19. Resource FlexibilityResource Flexibility
• Flexible equipmentFlexible equipment: Low volumes mean that process: Low volumes mean that process
designers should select flexible, general-purposedesigners should select flexible, general-purpose
equipment.equipment.
20. Capital IntensityCapital Intensity
Capital IntensityCapital Intensity is the mix of equipment and human skills in theis the mix of equipment and human skills in the
process; the greater the relative cost of equipment, the greater isprocess; the greater the relative cost of equipment, the greater is
the capital intensity.the capital intensity.
AutomationAutomation is a system, process, or piece of equipment that isis a system, process, or piece of equipment that is
self-acting and self-regulating.self-acting and self-regulating.
Fixed automationFixed automation is a manufacturing process that produces oneis a manufacturing process that produces one
type of part or product in a fixed sequence of simple operations.type of part or product in a fixed sequence of simple operations.
Flexible automationFlexible automation is a manufacturing process that can beis a manufacturing process that can be
changed easily to handle various products.changed easily to handle various products.
21. Economies of ScopeEconomies of Scope
Economies of scopeEconomies of scope are economies that reflect the ability toare economies that reflect the ability to
produce multiple products more cheaply in combination thanproduce multiple products more cheaply in combination than
separately.separately.
With economies of scope, the often conflicting competitiveWith economies of scope, the often conflicting competitive
priorities of customization and low price become morepriorities of customization and low price become more
compatible.compatible.
22. Strategies for ChangeStrategies for Change
Process ReengineeringProcess Reengineering is a fundamental rethinking and drasticis a fundamental rethinking and drastic
redesign of processes to improve performance dramatically inredesign of processes to improve performance dramatically in
terms of cost, quality, and speed.terms of cost, quality, and speed.
Process improvementProcess improvement is the systematic study of the activitiesis the systematic study of the activities
and flows of each process to improve it.and flows of each process to improve it.
Editor's Notes
This presentation covers the graphical material in Chapter 2 - Operations Strategy.