Operations management heizer 6e ch07

Operations Management Chapter – Process Strategy PowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 6e Operations Management, 8e © 2006 Prentice Hall, Inc Hall, Inc © 2006 Prentice 7–1 Outline  Global Company Profile: Dell Computer Co  Four Process Strategies  Process Focus  Repetitive Focus  Product Focus  Mass Customization Focus  Comparison of Process Choices © 2006 Prentice Hall, Inc 7–2 Outline – Continued  Process Analysis And Design  Flow Diagrams  Time-Function Mapping  Value Stream Mapping  Process Charts  Service Blueprinting © 2006 Prentice Hall, Inc 7–3 Outline – Continued  Service Process Design  Customer Interaction and Process Design  More Opportunities to Improve Service Processes  Selection Of Equipment And Technology © 2006 Prentice Hall, Inc 7–4 Outline – Continued  Production Technology  Machine Technology  Process Control  Vision Systems  Automated Storage and Retrieval System  Automated Guided Vehicle (AGV)  Flexible Manufacturing System (FMS)  Computer-Integrated Manufacturing (CIM) © 2006 Prentice Hall, Inc 7–5 Outline – Continued  Technology In Services  Process Redesign  Ethics And Environmentally Friendly Processes © 2006 Prentice Hall, Inc 7–6 Learning Objectives When you complete this chapter, you should be able to: Identify or Define:  Process focus  Repetitive focus  Product focus  Process reengineering  Service process issues  Environmental issues © 2006 Prentice Hall, Inc 7–7 Learning Objectives When you complete this chapter, you should be able to: Describe or Explain:  Process Analysis  Service Design  Production Technology  Process Redesign  Ethics and Environmentally Friendly Processes © 2006 Prentice Hall, Inc 7–8 Dell Computer Company “How can we make the process of buying a computer better?”  Sell custom-built PCs directly to consumer  Build computers rapidly, at low cost, and only when ordered  Integrate the Web into every aspect of its business  Focus research on software designed to make installation and configuration of its PCs fast and simple © 2006 Prentice Hall, Inc 7–9 Process, Volume, and Variety Volume Repetitive Process Figure 7.1 Low Volume High Variety one or few units per run, high variety (allows customization) Changes in Modules modest runs, standardized modules Changes in Attributes (such as grade, quality, size, thickness, etc.) long runs only © 2006 Prentice Hall, Inc Process Focus projects, job shops (machine, print, carpentry) Standard Register High Volume Mass Customization (difficult to achieve, but huge rewards) Dell Computer Co Repetitive (autos, motorcycles) Harley Davidson Poor Strategy (Both fixed and variable costs are high) Product Focus (commercial baked goods, steel, glass) Nucor Steel – 10 Automatic Identification Systems (AIS)  Improved data acquisition  Reduced data entry errors  Increased speed  Increased scope of process automation © 2006 Prentice Hall, Inc – 49 Process Control  Increased process stability  Increased process precision  Real-time provision of information for process evaluation  Data available in many forms © 2006 Prentice Hall, Inc – 50 Process Control Software © 2006 Prentice Hall, Inc – 51 Vision Systems  Particular aid to inspection  Consistently accurate  Never bored  Modest cost  Superior to individuals performing the same tasks © 2006 Prentice Hall, Inc – 52 Robots  Perform monotonous or dangerous tasks  Perform tasks requiring significant strength or endurance  Generally enhanced consistency and accuracy © 2006 Prentice Hall, Inc – 53 Robotic Surgery © 2006 Prentice Hall, Inc – 54 Automated Storage and Retrieval Systems (ASRS)  Automated placement and withdrawal of parts and products  Reduced errors and labor  Particularly useful in inventory and test areas of manufacturing firms © 2006 Prentice Hall, Inc – 55 Automated Guided Vehicle (AGV)  Electronically guided and controlled carts  Used for movement of products and/or individuals © 2006 Prentice Hall, Inc – 56 Flexible Manufacturing Systems (FMS)  Computer controls both the workstation and the material handling equipment  Enhance flexibility and reduced waste  Can economically produce low volume at high quality  Reduced changeover time and increased utilization  Stringent communication requirement between components © 2006 Prentice Hall, Inc – 57 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 lowvolume/high-variety, and highvolume/low-variety production © 2006 Prentice Hall, Inc – 58 Computer Integrated Manufacturing (CIM) Figure 7.11 CIM Top management decides to make a product Computeraided design (CAD) designs the product OM runs the production process FMS Management Information System Computer-aided manufacturing (CAM) © 2006 Prentice Hall, Inc Automated storage and retrieval system (ASRS) and automated guided vehicles (AGVs) Robots put the product together – 59 Technology in Services Service Industry Example Financial Services Debit cards, electronic funds transfer, ATMs, Internet stock trading Education Electronic bulletin boards, on-line journals Utilities and government Automated one-man garbage trucks, optical mail and bomb scanners, flood warning systems Restaurants and foods Wireless orders from waiters to kitchen, robot butchering, transponders on cars that track sales at drive-throughs Communications Electronic publishing, interactive TV © 2006 Prentice Hall, Inc Table 7.4 – 60 Technology in Services Service Industry Example Hotels Electronic check-in/check-out, electronic key/lock system Wholesale/retail trade Point-of-sale terminals, e-commerce, electronic communication between store and supplier, bar coded data Transportation Automatic toll booths, satellite-directed navigation systems Health care Online patient-monitoring, online medical information systems, robotic surgery Airlines Ticketless travel, scheduling, Internet purchases © 2006 Prentice Hall, Inc Table 7.4 – 61 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 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 © 2006 Prentice Hall, Inc – 62 Ethics and Environmentally Friendly Processes Reduce the negative impact on the environment  Encourage recycling  Efficient use of resources  Reduction of waste by-products  Use less harmful ingredients  Use less energy © 2006 Prentice Hall, Inc – 63 ... customer and provider interaction  Defines three levels of interaction  Each level has different management issues  Identifies potential failure points © 2006 Prentice Hall, Inc – 37 Service Blueprint