Ch07_Process Strategies.pptx

Process Strategies 7 PowerPoint presentation to accompany Heizer, Render, Munson Operations Management, Thirteenth Edition, Global Edition Principles of Operations Management, Eleventh Edition PowerPoint slides by...

Process Strategies 7 PowerPoint presentation to accompany Heizer, Render, Munson Operations Management, Thirteenth Edition, Global Edition Principles of Operations Management, Eleventh Edition PowerPoint slides by Jeff Heyl Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 7-1  Harley-Davidson ► The only major U.S. motorcycle company ► Emphasizes quality and lean manufacturing ► Materials as Needed (MAN) system ► Many variations possible ► Tightly scheduled repetitive production Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 7-2  Learning Objectives When you complete this chapter you should be able to: 7.1 Describe four process strategies 7.2 Compute crossover points for different processes 7.3 Use the tools of process analysis 7.4 Describe customer interaction in service processes 7.5 Identify recent advances in production technology Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 7-3  Process Strategy The objective is to create a process to produce offerings that meet customer requirements within cost and other managerial constraints Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 7-4  Process Strategies ► How to produce a product or provide a service that: ► Meets or exceeds customer requirements ► Meets cost and managerial goals ► Has long term effects on ► Efficiency and production flexibility ► Costs and quality Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 7-5  Process Strategies Four basic strategies 1. Process focus 2. Repetitive focus 3. Product focus 4. Mass customization Within these basic strategies there are many ways they may be implemented Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 7-6  Process Focus ► Facilities are organized around specific activities or processes ► General purpose equipment and skilled personnel ► High degree of product flexibility ► Typically high variable costs and low equipment utilization ► Product flows may vary considerably making planning and scheduling a challenge Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 7-7  Repetitive Focus ► Facilities often organized as assembly lines ► Characterized by modules with parts and assemblies made previously ► Modules may be combined for many output options ► Less flexibility than process-focused facilities but more efficient Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 7-8  Product Focus ► Facilities are organized by product ► High volume but low variety of products ► Long, continuous production runs enable efficient processes ► Typically high fixed cost but low variable cost ► Generally less skilled labor Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 7-9  Mass Customization ► The rapid, low-cost production of goods and service to satisfy increasingly unique customer desires ► Combines the flexibility of a process focus with the efficiency of a product focus Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 7 - 10  Mass Customization ► Imaginative product design ► Flexible process design ► Tightly controlled inventory management ► Tight schedules ► Responsive partners in the supply chain Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 7 - 11  Focused Processes ► Focus brings efficiency ► Focus on depth of product line rather than breadth ► Focus can be ► Customers ► Products ► Service ► Technology Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 7 - 12  Selection of Equipment ▶ Decisions can be complex as alternate methods may be available ▶ Important factors may be ► Cost ► Quality ► Cash flow ► Capacity ► Market stability ► Flexibility Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 7 - 13  Flexibility ► Flexibility is the ability to respond with little penalty in time, cost, or customer value ► May be a competitive advantage ► May be difficult and expensive ► Without it, change may mean starting over Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 7 - 14  Process Analysis and Design ► Is the process designed to achieve a competitive advantage? ► Does the process eliminate steps that do not add value? ► Does the process maximize customer value? ► Will the process win orders? Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 7 - 15  Process Analysis and Design ► Flowchart ► Shows the movement of materials ► Harley-Davidson flowchart ► Time-Function Mapping ► Shows flows and time frame Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 7 - 16  Process Analysis and Design ► Value-Stream Mapping (VSM) ► Where value is added in the entire production process, including the supply chain ► Extends from the customer back to the suppliers Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 7 - 17  Value-Stream Mapping 1. Begin with symbols for customer, supplier, and production to ensure the big picture 2. Enter customer order requirements 3. Calculate the daily production requirements 4. Enter the outbound shipping requirements and delivery frequency 5. Determine inbound shipping method and delivery frequency Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 7 - 18  Value-Stream Mapping 6. Add the process steps (i.e., machine, assemble) in sequence, left to right 7. Add communication methods, add their frequency, and show the direction with arrows 8. Add inventory quantities between I every step of the entire flow 9. Determine total working time (value-added time) and delay (non-value-added time) Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 7 - 19  Service Blueprinting ► Focuses on the customer and provider interaction ► Defines three levels of interaction ► Each level has different management issues ► Identifies potential failure points Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 7 - 20  Service Blueprint Figure 7.7 Personal Greeting Service Diagnosis Perform Friendly Close Service Physical Attributes to Support Service Parking adequate Employee appearance Shop cleanliness Car delivered clean Signage clear Forms Technology Employee appearance Waiting-room amenities F Poka-yokes to address potential failure points Poka-yoke: Bell in Poka-yoke: Conduct Poka-yoke: Review Poka-yoke: Customer driveway in case customer dialog with customer to checklist for compliance. approves invoice. arrival was unnoticed. identify customer Poka-yoke: Service Poka-yoke: Customer Poka-yoke: If customer expectation and assure personnel review invoice inspects car. remains in the work area, customer acceptance. for accuracy. offer coffee and reading material in waiting room. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 7 - 21  Production Technology 1. Machine technology 2. Automatic identification systems (AISs) 3. Process control 4. Vision systems 5. Robots 6. Automated storage and retrieval systems (ASRSs) 7. Automated guided vehicles (AGVs) 8. Flexible manufacturing systems (FMSs) 9. Computer-integrated manufacturing (CIM) Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 7 - 22  Machine Technology ► Increased precision, Comp productivity, and uter n contro umerical flexibility l (CNC ) ► Reduced environmental impact ► Additive manufacturing produces products by adding material, not removing it ► Supports innovative product design, minimal custom tooling required, minimal assembly time, low inventory, and reduced time to market Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 7 - 23  Automatic Identification Systems (AISs) and RFID ► Improved data acquisition ► Reduced data entry errors ► Increased speed ► Increased scope of process automation Bar codes and RFID Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 7 - 24  Process Control ► Real-time monitoring and control of processes ► Sensors collect data ► Devices read data on periodic basis ► Measurements translated into digital signals then sent to a computer ► Computer programs analyze the data ► Resulting output may take numerous forms Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 7 - 25  Vision Systems ► Particular aid to inspection ► Consistently accurate ► Never bored ► Modest cost ► Superior to individuals performing the same tasks Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 7 - 26  Robots ► Perform monotonous or dangerous tasks ► Perform tasks requiring significant strength or endurance ► Generally enhanced consistency and accuracy Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 7 - 27  Computer-integrated manufactur CREDIT TOCOME Automated Storage and Flexible manufacturing system (FMS) Retrieval Systems (ASRSs) Computer-aided manufacturing (CAM) converts raw materials into components or products ► Automated placement and withdrawal of parts and products CREDIT TOCOME ► Reduced errors and labor ASRS (above) and AGVs move incoming materials R eq and parts, work-in-process, an ► Particularly useful in inventory and and complete product. test areas of manufacturing firms Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 7 - 28  Automated Guided Vehicle (AGVs) ► Electronically guided and controlled carts ► Used for movement of products and/or individuals Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 7 - 29  Flexible Manufacturing Systems (FMSs) ► Computer controls both the workstation and the material handling equipment ► Enhance flexibility and reduced waste ► Can economically produce low volume but high variety ► Reduced changeover time and increased utilization ► Stringent communication requirement between components Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 7 - 30  Computer-Integrated Manufacturing (CIM) ► Extend flexible manufacturing ► Backward to engineering and inventory control ► Forward into warehousing and shipping ► Can also include financial and customer service areas ► Reducing the distinction between low- volume/high-variety, and high-volume/low-variety production Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 7 - 31