**An operation is process thinking; firms perform “Value
Added Transformation Processes”.
**Market Strategy (Who) -
Value Discipline (What)
Operational Excellence, customer intimacy, Product
leadership – Operational Capabilities (How?)
cost, quality,
speed, flexibility, innovation.
**Customer satisfaction is based on customer expectations
and satisfaction. It is also based on “Value”.
Value is based
on quality and price. Quality is perception of performance
defined by the customer.
**Quality Impacts Customer Experience: Reputation,
Performance, reliability, Tangibles, Responsiveness,
Empathy
**A successful operation strategy depends on the right
capabilities.
Establish capabilities to compete on the basis
of: Cost, Quality, Time, Flexibility, Innovation
**
What is a process: a way of getting things done.
What is
process selection: the set of strategic choices that determine
how the transformation is achieved.
**
Process Fundamentals: Process, Process flowcharts, Basic
Process analysis, Process selection and layout, Process
Improvement, Process Technologies.
**
Process Types: Job shop
low volume, high variety
products, Batch
Small/medium batches of products, one
dominant flow, Line Flow med./high volume, limited
variety, assembly flow, Continuous Flow high volume,
single product automated, rigid flow.
**
Why Analyze a Process: It’s difficult to improve what
you can’t measure, you can’t track improvement without
measure, demonstrating constraints and capabilities.
**The
Big 5 Process Measures: Capacity, Capacity
Utilization, Cycle Time, Throughput Time, Lead Time.
**Capacity: output per unit of time: Laser printers (5 pages
per minute), Ford Plant (2 cars per week), Logan airport
(1000 planes per month)
**
Task Time: time required at a particular task to complete
the activities.
Throughput Time: amount of time a unit
spends in the process, including time at each stage +
