Operations Management 7: Process Strategy

Crossover chart

-a chart of costs at the possible volumes for more than one process

Product focus

-a facility organized around products -a product-oriented, high-volume, low-variety process -a.k.a continuous process -e.g. glass, paper, tin sheets, lightbulbs, beer, and potato chips -highest equipment utilization

Robot

-a flexible machine with the ability to hold, move, or grab items -it functions through electronic impulses that activate motors and switches -used effectively to perform tasks that are especially monotonous or dangerous or those that can be improved by the substitution of mechanical for human effort

Time-function mapping (process mapping)

-a flowchart with time added on the horizontal axis -shows flows and time frame -nodes indicate the activities and the arrows indicate the flow direction -allows users to identify and eliminate waste such as extra steps, duplication, and delay

Computer-integrated manufacturing (CIM)

-a manufacturing system in which CAD, FMS, inventory control, and shipping are integrated -reducing the distinction between low-volume/high-variety and high-volume/low-variety production

Service blueprinting

-a process analysis technique that lends itself to a focus on the customer and the provider's interaction with the customer -defines 3 levels of interaction (each level has different management issues) -identifies potential failure points

Value stream mapping (VSM)

-a process that helps managers understand how to add value in the flow of material and information through the entire production process, including the supply chain -extends from the customer back to the suppliers

Repetitive process

-a product-oriented production process that uses modules -the classic assembly line -widely used assembly of all automobiles and household appliances -e.g. fast food firms

Process focus

-a production facility organized around processes to facilitate low-volume, high-variety production -finished goods are usually made to order -processes are designed to perform a wide variety of activities -high variable costs with extremely low utilization of facilities -e.g. restaurants, hospitals, machine shops

Flowchart

-a schematic or drawing used to analyze movement of people, product, or material -help understanding, analysis, and communication of a process -e.e. UNI registration

Automatic identification system (AIS)

-a system for transforming data into electronic form where it is easily manipulated, for example, bar codes

Flexible manufacturing system (FMS)

-a system that uses electronic signals from a centralized computer to automate production and material flow -bridges the gap between product-focused and process-focused -reducing the distinction between low-volume/high-variety and high-volume/low-variety production

The value stream map

-a very powerful technique to understand the velocity of process transactions, queue levels and value added ratios in both manufacturing and non-manufacturing processes

Radio frequency identification (RFID)

-a wireless system in which integrated circuits with antennas send radio waves to send signals -provide unique identification that enables the tracking and monitoring of parts, pallets, people, and pets

Process strategy

-an organization's approach to transforming resources into goods and services -objective is to create a process that can produce products that meets customer requirements within cost and other managerial constraints

Process charts

-charts that use symbols, time, and distance to provide an objective and structured way to analyze and record the activities that make up a process -allow us to focus on value-added activities

Automated storage and retrieval system (ASRS)

-computer-controlled warehouses that provide for the automatic placement of parts into and from designated places in a warehouse -commonly used in distribution facilities of retailers such as Walmart, Tupperware, and Benetton

Automated guided vehicle (AGV)

-electronically guided and controlled cart used to move materials (parts and equipment) in manufacturing and warehousing

"job shops"

-low-volume, high-variety -example of an intermittent process -e.g. custom furniture

Computer numerical control (CNC)

-machinery with its own computer and memory

Modules

-parts or components or a product previously prepared, often in a continuous (product-focused) process

Build-to-order (BTO)

-produce to customer order rather than to a forecast

Mass customization

-rapid, low-cost production that caters to constantly changing unique customer desires -it is about making precisely what the customer wants when the customer wants it economically -drives down inventories

Swim-Lane chart

-shows you who or which department is responsible for the steps in a process, which can provide powerful insights in the way a process performs -a timeline can be added to show how long it takes each group to perform their work -each time work moves across a swim lane, there is a "supplier-customer" interaction (usually where bottlenecks and queues form)

Vision systems

-systems that combine video cameras and computer technology in inspection roles -widely used when the items being inspected are very similar -consistently accurate, do not become bored, and are of modest cost

Flexibility

-the ability to respond with little penalty in time, cost, or customer value

Postponement

-the delay of any modifications or customization to a product as long as possible in the production process

Process redesign

-the fundamental rethinking of business processes to bring about dramatic improvements in performance -relies on reevaluating the purpose of the process and questioning both purpose and underlying assumptions -it works only if the basic process and its objectives are reexamined -focuses on activities that cross functional lines

Process control

-the use of information technology to monitor and control a physical process -used to measure the moisture content and thickness of paper as it travels over a paper machine at thousands of feet per minute