Operations and Supply Chain Management Chapter 7

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Questions and Answers

What is the primary shift in structure according to the described concepts?

From high volume and flexibility to standardization

From low volume to high volume with flexibility

From low volume and high flexibility to higher volumes and more standardization (correct)

From high volume and low flexibility to low volume and high standardization

What effect does off-diagonal positioning strategy have on a company?

It leads to uniformity in offerings

It encourages a focus on low-cost production

It reduces its competitiveness

It allows for differentiation from competitors (correct)

Which of the following is a benefit of off-diagonal positioning strategies?

Increased reliance on standardized processes

Enhanced capability for mass-customization (correct)

Elimination of competitive advantages

Reduction in product variety

Which of the following metrics would be most relevant when analyzing the performance of a business adopting mass-customization strategies?

Customer satisfaction rates Signup and view all the answers

In the context of strategic design choices, which factor is emphasized for effective differentiation?

Positioning off the diagonal Signup and view all the answers

What key concept is associated with moving businesses towards higher volumes while increasing standardization?

Repeatability in service processes Signup and view all the answers

Which of the following best describes the trend of companies towards off-diagonal positioning?

It is increasingly viable for many businesses Signup and view all the answers

When assessing strategic design choices, which outcome is most likely from a shift to higher volumes with standardization?

Uniform customer experiences Signup and view all the answers

What is the primary focus of a value stream map?

Illustrating both value-added and nonvalue-added activities with associated costs Signup and view all the answers

Which method is NOT part of mistake-proofing processes?

Increasing the complexity of process steps Signup and view all the answers

What does 'Poka-Yoke' primarily aim to achieve in processes?

Utilizing methods to prevent human error and ensure defect recognition Signup and view all the answers

Why is process design critical to an efficient value chain?

It affects operations cost, customer service, and sustainability Signup and view all the answers

Which of the following activities is most closely associated with value-added activities?

Steps that enhance the product or service Signup and view all the answers

Which process choice is characterized by a product designed to meet specific customer specifications in small quantities?

Custom (Make-to-Order) Signup and view all the answers

What is the purpose of incorporating costs into a value stream map?

To measure overall process efficiency and value Signup and view all the answers

What is a primary characteristic of Standard (Make-to-Stock) processes?

Products are sold without customer customization. Signup and view all the answers

Which of the following best describes a strategic choice in process design?

Balancing equipment, labor, and software to meet demands Signup and view all the answers

In which process choice does a customer select from a limited set of configurations?

Option (Assemble-to-Order) Signup and view all the answers

Process design decisions primarily impact which of the following areas?

Cost of operations Signup and view all the answers

How does identifying defects soon after they occur benefit a process?

It allows for immediate corrective actions, reducing long-term impact Signup and view all the answers

What is the relationship between process mapping and value stream mapping?

Process mapping focuses on individual processes while value stream mapping looks at the overall flow. Signup and view all the answers

Which of the following is NOT a principle process type discussed?

Mass Customization Signup and view all the answers

Performance metrics in process design analyze which of the following?

Operational efficiency and service quality Signup and view all the answers

Which decision is NOT aligned with the principles of strategic design choices in operations management?

Basing decisions solely on cost reduction Signup and view all the answers

Study Notes

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.

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Description

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.