MANA 705 DL - WORKSHOP 4
W4_4_4_Narrative
Operations Management
Topic: Process Strategy
Slide 1
Welcome, this is workshop four, the Process Strategy.
Slide 2
 Four Process Strategies
 Process Focus
 Repetitive Focus
 Product Focus
 Mass Customization Focus
 Process Analysis and Design
 Flow Diagrams
 Time-Function Mapping
 Value-Stream Mapping
 Process Charts
 Service Blueprinting
 Service Process Design
 Customer Interaction and Process Design
 More Opportunities to Improve
Service Processes
 Production Technology
 Machine technology
 Automatic identification Systems (AISs)
 Process control
 Vision system
 Robot
 Automated storage and retrieval systems (ASRSs)
 Automated guided vehicles (AGVs)
 Flexible manufacturing systems (FMSs)
 Computer-integrated manufacturing (CIM)
 Redesign process
Slide 3
At the end of the workshop you will be able to:
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MANA 705 DL - WORKSHOP 4
W4_4_4_Narrative
Operations Management
1. Describe the four production processes.
2. Define and analyze process design tools.
3. Describe customer interaction in process design.
4. Identify advances in production technology and redesign process.
Slide 4
The four basic strategies, volume, and variety production processes.
1. Process Focus is low-volume, high variety products in some organizations called
job shops. In a factory, these processes might be departments like welding,
grinding, and painting. In an office the processes might be accounts payable,
sales and payroll. In a restaurant, they might be bar, grill, and bakery.
2. Repetitive Focus falls between product and process focus. Repetitive focus uses
modules that are parts or components previously prepared, often in a continuous
process. This is a classic example of an assembly line. They are used in building
products such as automobiles and household appliances. This type of production
allows more customizing than a continuous process; modules are assembled to
get a quasi-custom product.
3. Product Focus is a high volume, low variety process. The facilities are organized
around products. They are also called continuous process because they have
very long, continuous production runs such as light bulbs and rolls of paper.
The specialized nature of the facility requires high fixed cost, but low variable
costs. The reward is high facility utilization.
4. Mass customization is the rapid, low cost production of goods and services that
fulfill increasingly unique customer desires. But mass customization is not just
about variety; it is about making precisely what the customer wants when the
customer wants it economically. Traditionally, it is low volume manufacturing (a
process focus) at the cost of standardized high-volume (product-focused)
production. However, achieving mass customization is a challenge that requires
sophisticated operational capabilities.
Slide 5
Within these basic strategies there are many ways they may be implemented.
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MANA 705 DL - WORKSHOP 4
W4_4_4_Narrative
Operations Management
Slide 6
Process Focus are low-volume, high variety products that in some organizations are
called job shops. In a factory, these processes might be departments like welding,
grinding, and painting. In an office the processes might be accounts payable, sales,
and payroll. In a restaurant, they might be bar, grill, and bakery. Process focus
may also be called intermittent process. These facilities have high variable costs
with extremely low utilization of facilities. These types of facilities can be hospitals,
machine shops, and restaurants.
Slide 7
This is a process flow diagram that shows the flow of materials, services, or
information with the typical arrows.
Slide 8
Repetitive focus falls between the product and process focus. The repetitive process
is a product-oriented production process that uses modules. Modules are parts or
components of a product previously manufactured or prepared, often in a
continuous process, assembly line or production line. Fast-food firms are an
example of repetitive process using modules. Repetitive process is more structured
and enables quasi-customization.
Slide 9
Product Focus is a high volume, low variety process. Facilities are organized taking
the product into consideration. Continuous improvement of production runs enables
process efficiency. Each station varies depending on the size, shape, or how the
product is packaged for that station. Examples of product focus can be baked
products, steel, glass, light bulbs, or rolls of paper. Typically, facilities require high
fixed cost, low variable costs for high facility utilization and generally less skilled
labor.
Slide 10
Mass customization focus implies rapid, low-cost production that conforms to
unique customer desires. This process is the most complex of the four processes
and requires management to use the facilities to accommodate the customer’s
needs. It is a combination of the flexibility of a process focus with the efficiency of a
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MANA 705 DL - WORKSHOP 4
W4_4_4_Narrative
Operations Management
product focus. The achievement of mass customization is a challenge because it
requires sophisticated operational capabilities.
Slide 11
Flow Diagrams - Show the movement of materials
Time-Function Mapping - Shows flow and time frame
Value-Stream Mapping - Shows flow, time, and value added beyond the immediate
organization
Process Charts - Use symbols to show key activities
Service Blueprinting - focuses on customer/provider interaction
Slide 12
Flow Diagrams are a schematic or drawing of the movement of material, products,
or people. This is a an example of a flow of operations for a factory from the
market needs and demand, all the way to providing the product to the consumer
and accounts for the cost of the product.
Slide 13
Time-Function Mapping is a process in a flow diagram, with time added on the
horizontal axis. This tool is also called process mapping. The nodes indicate the
activities and the arrows indicate the flow direction, with time on the horizontal
axis. This type of analysis allows users to identify and eliminate waste such as
extra steps, duplication, and delay.
Slide 14
Value-Stream Mapping (VSM) is a variation of time-function mapping; however,
value-stream mapping takes an expanded look at where value is added (and not
added) in the entire production process, including the supply chain. The idea is to
start with the customer and understand the production process, but value-stream
mapping extends the analysis back to suppliers.
Slide 15
Process Charts use symbols, time, and distance to provide an objective and
structured way to analyze and record the activities that make up a process. These
charts allow focusing on value-added activities.
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MANA 705 DL - WORKSHOP 4
W4_4_4_Narrative
Operations Management
Slide 16
Service Blueprinting is a tool used in manufacturing products with high service
content. This process focuses on the costumer and the provider’s interaction with
the consumer.
Slide 17
Service process design, by its nature, implies that some interaction and
customization is needed. The more the manager designs the process to
accommodate special requirements, the more effective and efficient the process will
be. Customer interaction and process design will depend on the type of service
organization. Service processes provide more opportunities for improvement.
Layout design is an integral part in many service processes, particularly in retailing,
dining, and banking. Since layout design is such an integral part of many services,
it provides continuing opportunity for increasing orders.
Human Recourses is important particularly because of the recruiting issue and
training. This can have a tremendous impact on the overall process performance.
Slide 18
The nine areas of importance in Production Technology are:
1. Machine technology
2. Automatic identification systems
3. Process control
4. Vision systems
5. Robots
6. Automated storage and retrieval systems
7. Automated guided vehicles
8. Flexible manufacturing systems
9. Computer integrated manufacturing
Slide 19
Machine Technology
 Increased precision
 Increased productivity
 Increased flexibility
 Improved environmental impact
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 Reduced changeover time
 Decreased size
 Reduced power requirements
Automatic Identification Systems (AIS)
 Improved data acquisition
 Reduced data entry errors Increased scope
of process
automation
Radio Frequency Identification (RFID) is a wireless system in which integrated
circuits with antennas send radio waves.
Slide 20
Process Control is the use of information technology to control a physical process.
 Increased process stability
 Increased process precision
 Real-time provision of information for process evaluation
 Data is available in many forms
 Vision systems combine video cameras and computer technology and are
often used as inspection tools.
 Consistently accurate
 Never bored
 Modest cost
 Superior to individuals performing the same tasks
Slide 21
Robot: a flexible machine with the ability to hold, move, or grab items. It functions
through electronic impulses that activate motors and switches.
 Perform monotonous or dangerous tasks
 Perform tasks requiring significant strength or endurance
 Generally enhanced consistency and accuracy
Automated Storage and Retrieval System (ASRS), a computer controlled warehouse
that provides for the automatic placement of parts into and from designated places
within a warehouse.
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W4_4_4_Narrative
Operations Management
Slide 22
Automated Guided Vehicles (AGV), electronically guided and controlled vehicles
used to move material
 Electronically guided and controlled vehicles
 Used for movement of products and/or individuals
Flexible Manufacturing System (FMS): a system that uses an automated work cell
controlled by electronic signals from a common centralized computer facility.
 Computer controls both the workstation and the material handling equipment
 Enhances flexibility and reduced waste
 Can economically produce low volume with high quality
 Reduced changeover time and increased utilization
 Stringent communication requirement between components
Slide 23
Computer-integrated Manufacturing (CIM)
Extension of flexible manufacturing systems
 Backwards 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/lowvariety production
Slide 24
Process Redesign is the fundamental rethinking of business processes to bring
about dramatic improvements in performance.
 The fundamental rethinking of business processes to bring about dramatic
improvements in performance
 Relies on reevaluating the purpose of the process and questioning both the
purpose and the underlying assumptions
 Requires reexamination of the basic process and its objectives
 Focuses on activities that cross functional lines
 Any process is a candidate for redesign
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MANA 705 DL - WORKSHOP 4
W4_4_4_Narrative
Operations Management
Slide 25
After studying the content, please complete the assigned activities.
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