Operations Management /Administración de Operaciones 1 Universidad del Turabo MANA 705 DL - Workshop Four Topic: Process Strategy Introduction Welcome to workshop four of the Operations Management course. In this workshop we will examine the need for the selection, definition, and design of goods and services and finding the best way to produce or design a process for achieving the company’s goal. A process or transformation strategy is an organization’s approach to transform resources into goods and services. Enjoy the workshop! Learning Objectives At the end of the workshop, each student will be able to: Describe the four production processes Use the tools of process analysis Describe customer interaction in process design. Identify advances in production technology and redesign process. Language Objectives Oral o Express ideas orally in a PowerPoint presentation video discussing one of the process analysis and design. Read o Apply a variety of reading strategies to identify recent advances for process design. Write o Develop a case study or problem in which he/she will determine the best answer for a service or product process design. Listen o Listen and evaluate a PowerPoint discussion comparing the four process strategies. ---------------------------------------------------------------------------------------- MANA 705 DL © Ana G. Méndez University System, 2012. All rights reserved. Operations Management /Administración de Operaciones 2 Content 4.1 Four Process Strategies A process or transformation strategy is an organization’s approach to transform resources into goods and services. These goods or services are organized around a specific activity or process. Every organization will have one of the four process strategies: a. Process focus in a factory; these processes might be departments devoted to 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. The process focuses on low volume, high variety products are also called job shop. These facilities are process focus in terms of equipment, layout, and supervision. b. 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. Fast-food firms are an example of repetitive process using modules. c. Product focus, are high volume, low variety processes; also called continuous processes. Products such as light bulbs, rolls of paper, beer, and bolts are examples of product process. This type of facility requires a high fixed cost, but low costs. The reward is high facility utilization. d. Mass customizations focus; is rapid, low-cost production that caters to constantly changing unique customer desires. This process is not only about variety; it is about making precisely what the customer wants when the customer wants it economically. Achieving mass customization is a challenge that requires sophisticated operational capabilities. -----------------------------------------------------------------------------------------4.2 Process Analysis and Design Tools When an organization analyzes and designs the process they use to transform their goods and services they ask the following questions: Is the process designed to achieve competitive advantage in terms of differentiation, response, or low cost? MANA 705 DL © Ana G. Méndez University System, 2012. All rights reserved. Operations Management /Administración de Operaciones Does the process eliminate steps that do not add value? Does the process maximize customer value as perceived by the 3 customer? Will the process increase orders? The following tools are simple ways to understand the complexity of a process design and redesign. 1. Flow Diagrams are a schematic or drawing of the movement of material, product, or people. 2. 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. 3. 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. 4. 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. 5. Service Blueprinting is a tool used in manufacturing products with a high service content. This process focuses on the consumer and the provider’s interaction with the consumer. Each process analysis tool has its strengths and variations. Flowcharts are quick ways to view the big picture and try to make sense of the entire system. Timefunction mapping adds some rigor and time element. Value-stream mapping extends beyond the immediate organization to consumer and suppliers. Process charts are designed to provide a much more detailed view of the process, adding items such as value-added time, delay, distance, storage, and so forth. Service blueprinting, on the other hand, is designed to help us focus on the customer interaction part of the process. MANA 705 DL © Ana G. Méndez University System, 2012. All rights reserved. Operations Management /Administración de Operaciones 4 ---------------------------------------------------------------------------------------4.3 Service Process Design 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. ----------------------------------------------------------------------------------------4.4 Production Technology and Redesign Process The nine areas of Production Technology are: 1. Machine technology 2. Automatic identification systems (AIS) Process control 3. Vision systems 4. Robots 5. Automated storage and retrieval systems 6. Automated guided vehicles 7. Flexible manufacturing systems 8. Computer integrated manufacturing Process Redesign is fundamental rethinking of business processes to bring about dramatic improvements in performance. Redesign also focuses on those activities that cross functional lines. MANA 705 DL © Ana G. Méndez University System, 2012. All rights reserved. Operations Management /Administración de Operaciones To view the PowerPoint presentation with audio, please click the link: MANA 705 DL_W4_4_4 Process Strategy presentation To access the narrative of the presentation in Word, click on the link MANA 705 DL_W4_4_4_Narrative (Document MS Word) To access the electronic link, follow these instructions: Place the cursor over the link and simultaneously press the CTRL + click. Forum for Doubts: If you have any questions, access Comunicación/Communication link, and press Workshop Four: Doubts and Questions where we can discuss any doubts. To participate, click on the forum title. -------------------------------------------------------------------------------------- MANA 705 DL © Ana G. Méndez University System, 2012. All rights reserved. 5 Operations Management /Administración de Operaciones 6 Tasks/Activities: Workshop Four Task 4.1: Power Point with audio (oral presentation) Instructions 1. Look for the rubric Appendix F - Rubric to Evaluate Video or PowerPoint Presentation Individual/Group to evaluate Video or PowerPoint with audio in the syllabus. Access Blackboard e-lab tutorial on how to present PowerPoint with audio. 2. Prepare a presentation with a minimum of 10 slides using MS PowerPoint with audio. 3. Your presentation will explain an organization process strategy from one of the four process strategies: a. process focus b. repetitive c. product d. mass customization focus. 4. You will also pick one of the tools below and explain how it works with the company you are presenting. It could be, for example, a department process such as a production process, product, or service they offer. a. Flow Diagram b. Time function mapping c. Value stream mapping d. Process chart e. Service Blueprint 5. Make sure your presentation is APA Style, version six. Remember to reference the source of any chart or graph used from web sites, books, journal, and so forth. 6. Save your presentation as follows: T4.1.name.last name. 7. Send the document accessing Tareas/Tasks, click Workshop Four and identify T4.1 PPT Process Strategy. Value = 20 points ---------------------------------------------------------------------------------------MANA 705 DL © Ana G. Méndez University System, 2012. All rights reserved. Operations Management /Administración de Operaciones 7 Task 4.2: Case Study (written) Instructions 1. Read “Process Strategy”, chapter 7 in the text, case “Rochester Manufacturing Corporation”. Complete the following: a. Answer the three case questions in detail. b. Explain what type of process strategy the company has. c. Explain what would be the opposite of high-variety, low-volume. 2. Write the answers and explanations APA Style version Six. Using Times New Roman font, size 12, MS Word or compatible software. 3. Look for the rubric Appendix H – Case study grading rubric at the end of the Syllabus. 4. Save your document as T4.2.name.last name. 5. Send your document accessing Tareas/Tasks, then click Workshop Four and identify the T4.2 Case Study. Value = 20 points --------------------------------------------------------------------------------------------Task 4.3 Discussion Forum (written) Instructions The discussion for this task is the following: a. Look for more information on Production Technology. b. Pick one of the technologies discussed in the workshop. c. Bring to the discussion forum an organization that uses one of these technologies. d. How does it work? What are the benefits? Explain. e. Your peers will ask questions or bring more information on other ways this technology is used and how other companies use the same technology. 1. Look for Appendix E: Discussion Forum Rubric (oral or written) in the syllabus. 2. Access e-lab for instructions on how to use the written Discussion forum. 3. Access Tareas/Tasks, click Workshop Four/T4.3 DF Production Technology and post your answer. MANA 705 DL © Ana G. Méndez University System, 2012. All rights reserved. Operations Management /Administración de Operaciones 8 4. Read your classmate’s postings and react to at least two of your peer’s comments. Value = 10 points ---------------------------------------------------------------------------------Task 4.4 Voice Reflective Journal (oral) Instructions The purpose of the reflexive diary is to think, write, or orally communicate about the concept, the feelings, and attitudes that are generated with discussion and assignments of each workshop. 1. Look for Appendix C: Reflective Journal Template in the syllabus to create the Journal. 2. Appendix D Reflective Journal Rubric which will be used to evaluate the task. 3. The Oral Reflective Journal should be completed in the same language as the workshop. 4. Please, watch the tutorial for voice recording in the e-lab link. Value = 10 points Congratulations, you have completed Workshop Four! Proceed with Workshop Five. MANA 705 DL © Ana G. Méndez University System, 2012. All rights reserved.