Process-selection-design-and-analysis.pptx

Process/selection/ design and analysis

1. Process selection, design, and analysis

2. Learning objectives Describe the four types of processes used to produced goods and services. Explain the logic and use the product – process matrix. Explain the logic and the use of the service – positioning matrix. Describe how to apply process and value stream mapping for process design Explain how to improve process design and analyze process maps. Describe how to compute resource utilization and apply little’s law.

3. Introduction Process design is an important operational design that affects the of operations, customer service, and sustainability. Example: Ford plant in Wayne Michigan the first to make gas, electric, hybrid, plug- in hybrid vehicles on the same production line.

4. 5-1 process choice decisions Firms generally, produce either in response to customer orders and demand or aim anticipation and demand of them. This leads to three type of goods and services. Custom or make to order goods and services Are generally produced and delivered as one of a kind or in small quantities, and in design to make specific customers specification. Examples: -Building - Weddings - Estate plans - Ships - Taxi service - Surgery

5. 2. Option or assemble - to – order, goods and services are configurations of standard parts, sub assemblies, or services that can be selected by customer from limited set. Examples: - Dell Computer Subway sandwiches Travel agent services

6. 3. Standard, or make-to-stock, goods and services are made according to fix design, and the customer has no option from which to choose Example: Appliances - online web-based courses Shoes - bus service Sporting goods Credit cards

7. Note: In the future, process managers will not only need to quantify trade-offs among cost, quality, time, and other priorities, but also the carbon footprint of their processes. Example: Alfa Laval, a Swedish company

8. Four principal types of processes to produce goods and services 1. Projects are large scale, customized initiative that consists of many smaller task and activities that must be coordinated and completed to finish on time and within budget. Example: -legal defense preparation Software development 2. Job Shop Processes are organized around particular types of general- purpose equipment that are flexible and capable of customizing work for individual customers.

9. 3 . Flow Shop Services are 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. Example: -automobiles - checking accounts statements -appliance - hospitals laboratory work - Insurance polices

10. 4. Continuous Flow Processes create highly standardized goods or services, usually around the clock in very high volumes. Examples: - car washes - electronic Paper - Paint factories Steel mills Each process type has distinct characteristics suited for different production needs.

11. Rethinking Airplane Manufacturing Traditionally project-based due to customization. Boeing is shifting towards standardized manufacturing techniques for efficiency. Inspired by Toyota’s production system. Improves sequencing, reduces inventory, and lowers costs.

12. Exhibit 5.1: Characteristics of Processes Project: One of a kind, complex, large scale. Job Shop: Customized, low-to-moderate volume. Flow Shop: Moderate-to-high volume, standardized. Continuous Flow: Very high volume, automated, continuous.

13. The Product-Process Matrix Proposed by Hayes and Wheelwright. Aligns process choice with product characteristics. Diagonal Path best alignment of product type and process structure. Off-diagonal positioning may cause inefficiencies.

14. Off-the-Diagonal Strategy Some firms deliberately choose off-diagonal positioning. Differentiation strategy (e.g., Rolls-Royce with luxury cars). May result in higher costs but justified by premium pricing.

15. The Service-Positioning Matrix Adapts the product-process matrix to services. Focuses on pathways in service delivery. Two dimensions: 1. Customer discretion and decision-making power. 2. Degree of repeatability in service encounters.

16. Customer-Routed vs Provider-Routed Customer-Routed: High discretion, unique pathways (e.g., online shopping). Provider-Routed: Low discretion, standardized pathways (e.g., ATM, postal services). Midrange: Combines elements of both.

17. Apple: New Design Requires New Processes Apple redesigned MacBooks using precision unibody enclosures. CNC machines cut aluminum blocks with high precision. •Improved strength, reduced thickness, and enhanced durability. Required entirely new manufacturing processes.

18. Process Design Definition: Creating the right mix of equipment, labor, software, and methods to deliver goods/services Four hierarchical levels: Task, Activity, Process, Value Chain

19. Process & Value Stream Mapping Purpose: Visualize how processes deliver value Six major activities of process design Identify objectives and performance measures

20. Example – Antacid Tablet Production Hierarchy of work shown in Exhibit 5.4 Cascading flowcharts: Value Chain → Production Process → Workstation → Tasks

21. Process Maps Definition: Sequence of activities to deliver an output Process boundary: defines start and end Symbols: start/end, decision, waiting, transfer

22. Example – Automobile Repair Process Flowchart (Exhibit 5.5) Line of customer visibility Division of responsibilities: mechanic vs. customer service

23. Restaurant Fulfillment Process Order posting and fulfillment steps (Exhibit 5.6) Value Stream Map (Exhibit 5.7) Value-added vs. non-value-added activities

24. Process Analysis & Improvement Increase revenue, agility, and quality Decrease costs and process flow time Reduce carbon footprint of operations

25. Process Design & Resource Utilization Utilization: fraction of time resources are used Equations: U = Resources Used / Resources Available Or: U = Demand Rate / (Service Rate × Servers)

26. Example – Inspection Station (Example 5.2) Utilization = 40 / (30×2) = 67% Target service rate for 85% utilization = 23.5 printers/hour

27. Restaurant Fulfillment Resource Utilization Exhibits 5.8 – 5.10 show resource analysis Bottleneck: Work Activity #3 (prepares side dishes) Balancing utilization improves flow

28. Little’s Law Formula: WIP = R × T Work-in-process (WIP), Throughput (R), Flow time (T) Helps analyze average process performance

29. Little’s Law – Examples (Example 5.3) Voting facility: ~8–9 voters in process Bank loan dept: R = 500 applications/month Pizza restaurant: T = 0.35 weeks (~2.5 days)

30. Key Takeaways Process design links resources, flow, and customer value Mapping identifies bottlenecks and inefficiencies Little’s Law is a owerful tool for process analysis