POM 3430 CHP 2

The vertical dimension of customer contact matrix deals with what two characteristics?

1. Process divergence 2. Flow

What are the four basic process decisions

1. Process structure 2. Customer involvement 3. Resource flexibility 4. Capital intensity

What are the characteristics of a hybrid office.

1. Some interaction with customers, standard services with some options 2. Flexible flows with some dominant paths with some exceptions to how work is performed. Ex: car wash : you could get just a regular car wash or get something specific like a wax. Ex: going to the bank. You will talk to someone at the bank and ask them about different loan plans. But after you leave they will deal with your account and loans without needing direct contact with you.

The customer contact matrix brings together what 3 elements?

1. The degree of customer contact 2. Customization 3. Process characteristics

What are the three elements of the product process matrix?

1. Volume 2. Product customization 3. Process characteristics

What are the three process structures the manager has to choose from?

1. front office 2. Hybrid office 3. Back office

job process

1. Low volume products made to customer order. 2. Customized process, with flexible and unique sequence of tasks.

Small Batch/Large Batch Process

1. Multiple products, with low to moderate volume 2. Disconnected line flows, moderately repetitive work. Ex: a bakery will make a batch of cookies then switch to cupcakes. There is not enough of a demand to have a constant line flow as the wants and needs of the customers are always changing.

A moment of truth or service encounter is

A face to face interaction that brings the customer and service providers together

service blueprint

A special flowchart of a service process that shows which steps have high customer contact

Swim lane flow chart

A visual representation that groups functional areas responsible for different sub-processes into lanes.

What does control mean in the improvement model?

After the implementation monitor the process to make sure that high performance levels are maintained.

assemble-to-order strategy

An approach to producing a wide variety of products from relatively few subassemblies and components after the customer orders are received. - line process for assembly and a batch process for fabrication. - subway

Black Belts in Six Sigma

Are full-time teachers and leaders of teams involved in six sigma projects

Master Black Belts in Six Sigma

Are full-time teachers for review and mentor black belts

If you're competitive priorities to have delivery speed and variety what kind of production and inventory sure I did you should use choose?

Assemble to order

What is an example of a line process?

Automobile parts

Advantages of more customer focused processes?

Better quality, faster delivery, greater flexibility, and even sometimes lower cost.

flexible automation

Can be changed to handle various products. The ability to reprogram machines is useful for both low and high customization processes. In the case of high customization name is she makes a variety of products in small batches and then can be programmed to alternate between products. My name is Shene has been dedicated to a particular product or family of products, as in this case of low customization and a line flow and the product is at the end of its lifecycle, the machine can simply be reprogrammed with a new sequence of test for a new product.

Customized

Changes from one customer to another

mass production

Combing a line process with the make to stock strategy.

functional benchmarking

Compares areas such as administration, customer service, and sales operations with those of outstanding firms in any industry

Line process examples?

Computers, automobiles, appliances, toys

What are the six key elements of reengineering?

Critical processes Strong leader ship Cross functional teams Information technology Clean slate philosophy Process analysis

What is the primary feature that is left out of the manufacturing product process?

Customer contact

Processes

Involve The use of an organizations resources to provide some thing of value and are perhaps the least understood and manage aspect of a business

resource flexibility

Is the ease with which employees and equipment can handle a wide variety of products, output levels, duties and functions

As flexibility increases what happens to unit cost.

It also increases

Is it easier to measure productivity of front office or back office?

It is easier to measure back office because front office is more subjective. Ex: get your nails done, some people may think the job is better than others. (Front office) get the package delivered on time = you are happy (back office)

When volumes are low what does this generally say about customization?

It is high

What does the measure model mean in the improvement process?

It is important to have good performance measures to evaluate a process for clues and how to improve it.

When volumes are high what does this generally say about customization.

It is low

Economies of scope

Reflect the ability to reduce multiple products more cheaply in combination and separately. Service industry- Disney aggressively link their Internet processes with one another and other parts of Disney. A flexible technology that handles money services together can be less expensive than handling each one separately. Manufacturing industry - some machines may be able to make a certain variety of parts with the same equipment.

Graphs

Represent data in a variety of pictorial formats, such as line charts and pie charts

line chart

Represents day the sequentially with data points connected by line segments to highlight trends in data.

machine shop

Small mom and pop shops that manufacture products for bug automotive companies. They make very customized parts at a low volume.

What prices should you pick when volumes are high and customization is low?

Special purpose equipment. Explanation- The advantage of using this process is that it will keep low variable cost per unit. But it's disadvantage is that it will be a high equipment investment in the us high fixed costs. When annual volume produced is high enough spreading needs fixed costs over more units produced, the vans of low variable cost more than cabin seats for the fixed cost.

Process Reengineering

The fundamental rethinking and radical redesign of business processes to achieve dramatic improvement in critical measures of performance such as cost, quality, service, and speed.

What does the define mean in the improvement model?

The scope and boundaries of the process to be analyze our first established. Define what the problem is.

During the manufacturing product process matrix as there is less customization what happens?

The volume increases

design-to-order strategy

This happens when a firm can design new products that do not currently exist and then can manufacture them to meet unique customer specifications. - design a pair of shoes for a client

Disadvantages of a flexible workforce?

This may be more responsive as employees will be required to have greater skills and does more training and education. It may also be hard to have a flexible work force if output is not study. When there are peak times when the company is more busy they may need to hire temporary employees who may not be able to get the knowledge and skills required that quickly.

flow chart

Traces the flow of information, customers, equipment, or materials through the various steps of a process. Flow charts are also known as: flow diagrams, process maps, relationship maps, or blueprints

What does analyze mean in the improvement model?

Use the data and measures to perform process analysis to determine where improvements are necessary. They careful analysis of the process and its performance and select the metrics shouldn't cover disconnects, or gaps between actual and desired performance.

Heat treatment process

Used in manufacturing for cars. They condense things in heat.

Time Study

Uses a trained analysis to perform for basic steps and setting a time standard for a job or process. 1. Selecting the work elements within the process to be studied 2. Timing the elements 3. Determining the sample size 4. Setting the final standard

What does the improve mean in The improvement model?

Using analytical and creative thinking, the design team generates a long list of ideas for improvements.

data snooping

Using multiple analyses to find significance and then publishing the results. "torturing the data until they confess"

A good strategy for a manufacturing process depends first and foremost on ?

Volume

process chart

an organized way of documenting all the activities performed by a person or group of people, at a workstation, with a customer, or on materials

process failure

any performance shortfall, such as error, delay, environmental waste, rework, and the like

competitive benchmarking

based on comparisons with a direct industry competitor

Fixed costs (overhead)

costs that do not vary with production or sales level

variable costs

costs that vary with the quantity of output produced

process structure

determines the process type relative to the kinds of resources needed, how resources are partitioned between them, and their key characteristics

plants within plants (PWPs)

different operations within a facility with individualized competitive priorities, processes, and workforces under the same roof

Process Improvement

efforts to increase the effectiveness and efficiency of specific business operations

work sampling

estimates the proportion of time spent by people or machines on different activities, based on observations randomized over time

Reengineering

fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance, such as cost, quality, service, and speed

Green Belts in Six Sigma

incorporate Six Sigma responsibilities with other job obligations. They devote part of their time to teaching and helping teams with their projects and the rest of their time to normally assigned duties.

Internal Benchmarking

involves using an organizational unit with superior performance as the benchmark for other units

Brainstorming

letting a group of people, knowledgeable about the process, propose ideas for change by saying whatever comes to mind

make-to-stock strategy

manufacturing firms hold items in stock for immediate delivery, thereby minimizing customer delivery times. *You make the items ahead before the customer even wants them or needs to use them.* Line and continuous flow processes Example: garden tools, electronic components, diapers, soft drinks

Metrics

performance measures that are established for a process and the steps within it

fixed automation

produces one type of part or product in a fixed sequence of simple operations. Operations managers favor fixed Automation when demand volumes are high, product designs are stable, and product lifecycles are long. Appropriate for - line and continuous flow process choices

customer involvement

reflects the ways in which customers become part of the process and the extent of their participation

strategic

related to long-term plans for achieving a goal

cause and effect diagram

relates a key performance problem to its potential causes

low divergence

repetitive and standardized. This work is performs exactly the same with all customers and tends to be less complex. Example: hotel services and telephone services

streamline

simplify v. to update; to make more efficient

process simulation

the act of reproducing the behavior of a process, using a model that describes each step

Process Analysis

the documentation and detailed understanding of how work is performed and how it can be redesigned

customer contact

the extent to which the customer is present, is actively involved, and receives personal attention during the service process

process divergence

the extent to which the process is highly customized with considerable latitude as to how its tasks are performed. Example: found in concluding, law, and architecture

postponement

the final activities in the provision of a product are delayed until the orders are received

Capital intensity

the mix of equipment and human skills in a process. The greater the cost of equipment relative to the cost of labor, the greater is the capital intensity.

Capital intensity

the mix of equipment and human skills in a process; the greater the cost of equipment relative to the cost of the labor, the greater is the capital intensity.

Process Strategy

the pattern of decisions made in managing processes so that they will achieve their competitive priorities

layout

the physical arrangement of operations (or departments) relative to each other.

layout

the physical arrangement of operations created by the various processes and puts them in tangible form.

focused factories

the result of a firm's splitting large plants that produced all the company's products into several specialized smaller plants

Process Improvement

the systematic study of the activities and flows of each process to improve it. It's purpose is to learn the numbers, understand the process, and dig out the details.

Break-even quantity

the volume at which total revenues equal total costs

industrial robot

versatile, computer-controlled machine programmed to perform various tasks. This is a classic example of flexible automation.

What are some advantages of automating service processes?

- cost reduction - allow more task divergence by making available a wide menu choices to the customer - it can also improve quality by being more consistent. Example: online school, screens that you can place your order on at McDonald's.

What are the characteristics of a front office?

1) high interactions with customers highly customized service 2) flexible flows and individualized processes (Done on the customer) Ex: getting hair done, nails done, doctor doing a surgery.

What are the characteristics of a back office?

1- Low interaction with customers, standardize services 2. Line flows, routine work performed the same with all customers Example : UPS - the customer will drop off package at remote location, then standardized services happen to deliver package to destination.

What are the two main reason that manufacturing processes and services differ?

1. Customer contact difference 2. Manufacturing can use inventory

What are 4 different volumes on the product process matrix?

1. Customized (volume - very low) 2. Multiple items (volume- low) 3. Few major items (volume - medium) 4. Standardized (volume - high)

What are the four strategies that relate to inventory and should be coordinated with the process choice?

1. Design to order 2. Make to order 3. Assemble to order 4. Make to stock

What are the two major drawbacks of fixed automation?

1. Large initial investment cost 2. Relative inflexibility

bar chart

a series of bars representing the frequency of occurrence of data characteristics measured on a yes-or-no basis

Histogram

a summarization of data measured on a continuous scale, showing the frequency distribution of some process failure

Automation

a system, process, or piece of equipment that is self-acting and self-regulating

Benchmarking

a systematic procedure that measures a firm's processes, services, and products against those of industry leaders

process choice

a way of structuring the process by organizing resources around the process or organizing them around the products. Example- all mining machines are grouped together and process all products or parts needing that kind of transformation.

What are the three major techniques for affectively defining and measuring processes?

Flow charts Work measurement techniques Process charts

What kind of process should you use one volumes are low because customization is high?

General purpose equipment. Explanation: by having inexpensive general purpose equipment it will keep them vestment of equipment low which will make fixed costs small. It's a variable unit cost is high. Which means the more orders or business you get the more it will go up. Efficiency - this process will do the job but not at peek efficiency.

Example of automation?

Gillette For example spent 750 million on the production lines in robotics they gave her the capacity to make one .2 billion razor cartridges A year. The equipment is complicated and expensive. Only with such high volumes because this line process produce the product and the price low enough that consumers could afford to buy it.

What is an example of a job shop?

Glasses

What is an example of a batch process?

Heavy equipment parts

mass customization

Highly divergent processes generate a wide variety of customized products at reasonably low costs.

When is the best time for automation to work?

If investment costs are large, automation works best when volume is high, because more customization typically means reduce volume.

Line Flow

Means that the customers, materials, or information move linearly from one operation to the next, according to a fixed sequence

capital input

Money being invested into business (not loans).

When something is more strategic the process will be ?

More effective

What are the five different categories a process chart can be formatted in?

Operation - changes, crates, or add some thing. Drilling a hole or serving a customer or examples of operations. Transportation- moves the study subjects from one place to another. Inspection- checks or verify something but does not change it. Getting customer feedback, checking for blemishes on the surface, weighing a product, and taking a temperature reading or examples of inspections. Delay - occurs when the subject is held up waiting further action. Examples could be time spent waiting for a server, time spent waiting for materials or equipment, cleanup time. Storage - Occurs when something is put away until a later time.

What is an example of a continuous process?

Petroleum refining

continuous flow process

Petroleum refining Chemical processes Paper manufacturing Processes that make steel, soft drinks, food.

What are the two different philosophies for process design and change?

Process reengineering Process improvement

High volumes per part time at a manufacturing process typically mean:

Process structure - hi volumes, combined with a standard product, make a line flow possible. It's just opposite where a job process produces to specific customer orders. Customer involvement - customer involvement is not a factor in most manufacturing processes, except for choices made on product variety and customization. Less discretion is allowed with line or continuous flow processes to avoid the unpredictable demands required by customized orders. Resource flexibility- when volumes are high in process divergence is low flexibility is not needed to utilize resources effectively, and specialization can lead to more efficient processes. Capital intensity- High volume to justify the large fixed cost seven efficient operation.

Hi customer contact and a front office service process means:

Process structure -The customer ( internal or external) is present, actively involved, and receives personal attention. These conditions create processes with high divergence and flexible process flows Customer involvement- when customer contact is high, customers are more likely to become part of the process this service created for each customer is unique. Resource flexibility- high process divergence and flexible process flows fit with more flexibility for the processes resources- it's workforce, facilities, and equipment. Capital intensity - When volume is higher, automation in capital intensity or more likely. Even though higher volume is usually assumed in the back office, is just as likely to be in the front office for financial services. Information technology is a major type of automation many service processes, which brings together both resource flexibility and automation.

Flexible workforce

a workforce whose members are capable of doing many tasks, either at their own workstations or as they move from one workstation to another

back office

a process with low customer contact and little service customization. Divergence - low Lime flow- standardized and routine, with lime flows from one service provider to the next until the service is provided. Example- preparing the monthly client fund balance report

line process

1. Few major products, higher volume 2. Connected line, highly repetitive work Ex: assembly of computers and automobiles. There are specific machines that complete specific tasks over and over. Workers complete the same tasks over and over.

continuous flow process

1. High volume, high standardization, commodity products 2. Continuous flows Ex: liquid, gas or power. The process does not stop until the product is finished. The process may take one shift or multiple depending on on the product.

Hybrid office

a process with moderate levels of customer contact and standard services with some options available. Divergence - in the middle Work flow- progresses from one workstation to the next with some dominant paths apparent.

Six Sigma Process Improvement Model

Define, Measure, Analyze, Improve, Control

If your competitive priority is the health tab quality, customization, and variety what kind of production and inventory strategy should you choose?

Design to order

Disadvantages of customer involvement?

Disruption, inefficiencies, quality implications, higher cost of added training and skill level of service providers, revisions to facility layout, decentralized facilities

predetermined data method

Divides each work element even more, into a series of micro motions that make up the element.

Fabrication processes

Example - take steel and bend it, take steel and cut it (welding)

Advantages of PWP's?

Fewer layers of management Greater ability to rely on team problem-solving Shorter lines of communication between departments

What are the two types of automation?

Fixed and flexible

When divergence is greater the work flow tends to be more ?

Flexible

What are the four process choice?

Job process Batch process Line process Continuous flow process

If your competitive priority is to have top quality, & delivery, and flexibility what kind of process choice would you choose?

Job process or small batch process.

What are 4 different processes in the product process matrix?

Job shop Batch Line Continuous

assembly process

Joining things together. Snapping things together, using bolts and knots to keep things together. Example: welding, assembling a bed you bought

If your competitive priorities are low-cost operations, consistent quality, and delivery speed what kind of process choice should you choose?

Large batch, line process, or continuous flow process

During the manufacturing product process matrix as there is less process divergence what happens?

Line flows increase

If your competitive priority is to have top quality, on Time delivery, and flexibility what kind of production and inventory strategy should you choose?

Make to order

If your competitive priority is to have a low-cost operation and delivery speed what kind of production and inventory strategy should you choose?

Make to stock

self-service

Making the customer do the processes themselves. Example : gasoline stations, supermarkets, bank services, IKEA

make-to-order strategy

Manufactures that make products to customer specifications in low volumes tend to use the make to order strategy. This is usually coupled with Job or small batch processes. * the company is making them in response to the order that comes from the customer * Example: specialized medical equipment, castings, expensive homes

Standardized

Mass produced. The same gasoline is used by everyone.

flexible flow

Means that customers, materials, or information move in diverse ways, with the path of one customer or job often crisscrossing the path that the next one takes

Benefits of a flexible workforce?

Worker flexibility can be one of the best ways to achieve reliable customer service and alleviate capacity bottlenecks.

Pareto Chart

a bar graph whose bars are drawn in decreasing order of frequency or relative frequency

elemental standard data

a database of standards compiled by a firm's analysts for basic elements that they can draw on later to estimate the time required for a particular job, which is most appropriate when products or services are highly customized, job processes prevail, and process divergence is great

Checklist

a form used to record the frequency of occurrence of certain process failures

Product-Process Matrix

a framework depicting when the different production process types are typically used depending on product volume and how standardized the product is

operation

a group of resources performing all or part of one or more processes

learning curve

a line that displays the relationship between processing time and the cumulative quantity of a product or service produced

scatter diagram

a plot of two variables showing whether they are related

front office

a process with high customer contact where the service provider interacts directly with the internal or external customer Divergence - High Work flow- flexible and they vary from one customer to the next.