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ProcessStrategy,Section2:OperationsDesignaproduct-oriented,high-volume,low-varietyprocess.Alsocalledcontinuousprocesses,Fewinput,Outputvariationsinsize,shape,andpackaging,21,MassCustomizationFocus,Rapid,Low-costproductionofproductorservicethatcaterstoconstantlychanginguniquecustomerdesire.Low-volumemanufacture(aprocessfocus)atthecostofstandardizedhigh-volumeproduction(aproductfocus).OperationManagementuseimaginativemodularization,powerfulscheduling,andrapidthroughputtoachievemasscustomization.,22,23,MassCustomization,Process-focusedHighvariety,lowvolumeLowutilization(5%to25%)General-purposeequipment,Product-focusedLowvariety,highvolumeHighutilization(70%to90%)Specializedequipment,Schedulingtechniques,Rapidthroughput,Modulartechniques,RepetitivefocusedModulardesignFlexibleequipment,24,ComparisonofProcessChoices,25,ProductandProcessMatrix,26,FourToolsforProcessAnalysisandDesign,Anumberoftoolshelpusunderstandthecomplexitiesofprocessdesignandredesign,thatmakesenseofwhathappensormusthappeninaprocess.Fourofthesetoolsis:1.ProcessFlowChart2.Time-FunctionMapping3.Processchart4.ServiceBlueprinting,27,ProcessFlowchartingDefine,Processflowchartistheuseofadiagramtopresentthemajorelementsofaprocess.Thebasicelementscanincludetasksoroperations,flowsofmaterialsorcustomers,decisionpoints,andstorageareasorqueues.Itisanidealmethodologybywhichtobeginanalyzingaprocess.,28,FlowchartSymbols,Tasksoroperations,Examples:Givinganadmissiontickettoacustomer,installingaengineinacar,etc.,DecisionPoints,Examples:Howmuchchangeshouldbegiventoacustomer,whichwrenchshouldbeused,etc.,Adrawingusedtoanalyzemovementofpeopleormaterial.,Symbols:,29,FlowchartSymbols(Continued),Storageareasorqueues,Examples:Sheds,linesofpeoplewaitingforaservice,etc.,Flowsofmaterialsorcustomers,Examples:Customersmovingtotheaseat,mechanicgettingatool,etc.,30,Example:FlowchartofStudentGoingtoSchool,Yes,No,Goofoff,Gotoschooltoday?,Walktoclass,Drivetoschool,31,ProcessFlowchartexample,32,Time-functionMapping,Aflowdiagrambutwithtimeaddedonthehorizontalaxis.Example:,Orderproduct,Processorder,wait,Print,Extrude,wait,Move,Receiveproduct,1day2day1day1day1day,6days,33,ServiceBlueprinting,Aprocessanalysistechniquethatlendsitselftoafocusonthecustomerandtheprovidersinteractionwiththecustomer.Auniquefeatureoftheserviceblueprintisthedistinctionmadebetweenthehighcustomercontactaspectoftheserviceandthoseactivitiesthatthecustomerdoesnotsee.Thedistinctionismadewitha“LineofVisibility”ontheflowchart.,34,Aserviceblueprintforanautomotiveoperation,35,ProcessPerformanceMetrics,Setuptime+RuntimeThroughputtime=AveragetimeforaunittomovethroughthesystemThroughputtimeValue-addedtime,Operationtime=,Velocity=,36,37,CycleTimeExample,Supposeyouhadtoproduce600unitsin80hourstomeetthedemandrequirementsofaproduct.Whatisthecycletimetomeetthisdemandrequirement?Answer:Thereare4,800minutes(60minutes/hourx80hours)in80hours.Sotheaveragetimebetweencompletionswouldhavetobe:Cycletime=4,800/600units=8minutes.,38,Example5-2:Manufacturingprocessanalysis,Thecompanysuppliesacomponenttoseverallargeautomanufacturers.Thiscomponentisassembledinashopby15workersworkingan8hoursshiftonanassemblylinethatmovesattherateof150componentsperhour.Theworkersgettheirpayintheformofagroupincentiveamountingto30centspergoodpart.Partsforthefinalassemblycomefromtwosource:1.themoldingdepartmentmakesoneverycriticalpart-thereare11machinescapableofmoldingtheonepart;1machineisbeingoverhauledatanygiventime;eachmachinerequiresafull-timeoperator.Themachineproduce25partsperhourandtheworksarepaidontherateof20centsperpart.,39,Continued:,Now,6workersareonthejob.Therawmaterialsforeachpartmoldedcost10cents;2centsofelectricityisusedinmakingeachpart;.2.Therestpartcomefromsuppliers.Eachpartcost30centsforeachfinalcomponentproduced.Theentireoperationsislocatedinarentedbuildingcosting$100perweek;otheremployeesreceive$1,000perweek;theaccountingdepartmentchargesdepreciationforequipmentagainstthisoperationsat$50perweek.,40,flowchartforthiscompany,Input,Moldparts,inventory,Finalassembly,partsfromvendor,inventory,Finishedgoods,components,41,Solution:,Determinethecapabilityoftheentireprocess-arethecapacitiesofalltheprocessesbalanced?capacityofthemoldingprocessMolding6machines25parts/hour/machinecapability8hours/day5days/week=6,000parts/weekcapacityoftheassemblyprocessassembly=150components/hour8hours/daycapability5days/week=6,000components/weekINBALANCE!,42,b.Ifthemoldingprocessweretouse10machineinsteadof6,andnochangesweretobemadeinthefinalassemblytask,whatwouldbethecapacityoftheentireprocess?Molding=10machines25parts/hour/machinecapability8hours/day5days/week=10,000parts/weekc.Ifourcompanywenttoasecondshiftof8hoursontheassemblytask,whatwouldbethenewcapacity?assembly=150components/hour16hours/daycapability5days/week=12,000components/weekd.Determinethecostperunitoutput(p165),43,ProcessReengineering,Itisthefundamentalrethinkingandredesignofbusinessprocessestobringaboutdramaticimprovementsinperformance.Itreliesonreevaluatingthepurposeoftheprocessandquestioningbothpurposeandunderlyingassumption.Itcastsasideallnotionsofhowtheprocessiscurrentlybeingdoneandfocusesondramaticimprovementsincost,time,andcustomervalue.,44,Summary,Effectiveoperationsmanagerselectaproductionprocesswiththenecessaryquality,flexibility,andcoststructuretomeetproductandvolumerequirement.Theyalsoseekcreativ

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