Operations and Supply Chain Management Chapter 7

Operations and Supply Chain Management, 2e

• Chapter 7a and 7b cover Process Selection, Design, and Improvement
• Learning Outcomes include identifying and defining process choice decisions, principle process types, and relationships between them.
• Students should also understand differentiating process design, process mapping, and value stream mapping.
• Additional learning outcomes include identifying Product Life Cycle (PLC) phases, interpreting the Product-Process Matrix, and the Service-Positioning Matrix

Processes

• Process choice and design are crucial for efficient value chains.
• Process design significantly affects operational costs, customer satisfaction, and sustainability.
• Key decisions include process choice, design, and mistake-proofing.

Process Choice Decisions

• Custom (Make-to-Order): One-of-a-kind or small-quantity production tailored to customer specifications (e.g., custom cabinets)
• Option (Assemble-to-Order): Combining standard parts, sub-assemblies, or services to create customer-configured products (e.g., semi-custom cabinets)
• Standard (Make-to-Stock): Pre-designed products without customer options (e.g., pre-made cabinets)

Principle Process Types

• Projects: Large-scale, customized initiatives with many coordinated tasks to finish on time and within budget
• Job Shops: Organized around specialized equipment to customize work for individual customers; good for wide variety of goods/services in small quantities.
• Flow Shops: Organized around a fixed sequence of activities/steps to produce a limited variety of similar goods/services (e.g., assembly lines).
• Continuous Flow: Highly standardized goods/services in very high volumes; usually 24/7 use highly specialized/automated equipment.

Process Design

• The goal is to combine optimal equipment, labor, software, work methods, and environment to satisfy customer needs.
• Design considerations impact cost, flexibility, and quality.
• Process design happens at hierarchical levels (tasks, activities, processes, and value chains).
• Value Stream Mapping: A valuable tool that describes both current and proposed process flows.
  • Defining process purpose and objectives
  • Creating detailed process/value stream maps
  • Evaluating alternative process designs
  • Identifying performance measures
  • Selecting appropriate equipment/technology
  • Developing implementation plans

Mistake-Proofing Processes

• Humans make mistakes; mistake-proofing practices (Poka-Yoke) are vital.
• Mistake-proofing occurs through process design and includes:
  • Design defects out of the process
  • Identifying and preventing defects before they occur
  • Quick correction after defects occur

Matrices Comparison (Similarities)

• Superior performance generally occurs when remaining close to the matrices' diagonal.
• Moderate portions of the matrices feature a wide variety of intermediate design choices.
• Venturing far off the diagonal may hinder a company's achievements

Product Life Cycle (PLC)

• A characterization of product growth, maturity, and decline over time.
• Understanding the PLC is crucial because goods/services' processes and value chains must adapt with changes in the PLC

Product-Process Matrix

• A model describing the alignment of process choice with manufactured good characteristics.
• The matrix merges product lifecycle with process lifecycle.
• The matrix is a guide for choosing the most appropriate manufacturing process based on product volume/characteristics.

Service-Positioning Matrix

• A model describing the relationship between service encounter levels and management service design to meet customer needs.
• Pathways can be customer-routed or provider-routed depending on the level of customer interaction.
• Matrix depicts the tradeoff between high customer freedom versus high repeatability.

Chapter 7a and 7b Summary

• Understanding process choice, selection, and design (from both a manufacturing and service perspective) is important to make effective managerial decisions and improve efficiency.

This quiz focuses on Process Selection, Design, and Improvement as covered in Chapters 7a and 7b of Operations and Supply Chain Management, 2e. Students will explore key concepts like process choice decisions, process types, design mapping, and the Product-Process Matrix. Test your knowledge on how these elements impact value chains and operational efficiency.