krm8_ism_ch05 - Chapter 5 Process Analysis DISCUSSION...

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Chapter 5 Process Analysis DISCUSSION QUESTIONS 1. The answer can be debated. On one hand, relentless pressure to improve can create considerable benefits over time, and could well put a company at the top of the industry. On the other hand, small improvements do not lead to break-through solutions that might be what is needed to remain competitive, particularly in an industry marked by rapid change. However, radical change and process reengineering is strong medicine and not always needed or successful. 2. This question was inspired by a similar situation faced by Ontario Hydro-Electric. Today electricity is a commodity that competes on the basis of low-cost operations and reliability. If the environmental protection equipment is installed, HEC must either absorb the costs as a loss (immediate bankruptcy) or attempt to pass on the costs to customers and see further erosion of their market (eventual bankruptcy). HEC would probably decide to delay investment in environmental protection equipment for as long as possible. Some discussion may focus on the issue of whether customers, as users of both electricity and the environment, are better served by competition (lower cost of electricity) or by regulated monopolies (better environment).
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66 l PART 2 l Managing Processes PROBLEMS 1. 2. Very simple example Order Number Customer name date order placed date order shipped Total time Raw material ordered Raw material used Material scrapped Material reworked Special tools ordered Machinist days days days weight weight weight # of pieces Y/N name
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Process Analysis l CHAPTER 5 l 67 3. 4. App. # Date Rec’d Date sent to London Date scanned Date app to assoc Info entered Info complete Customer contact date Confirmation letter sent Customer error Associate Error Date problem resolved Date app complete % Associate Error % Custom er Error Total # Apps Total app. time
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68 l PART 2 l Managing Processes 5. 6. Call # Date Call rec’d Data entered NSC solve problem Customer Region Tech selected Date Tech notified Customer notified Service call date Parts needed Service complete Number Date Y/N Y/N (region #) (Tech number) Y/N date
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Process Analysis l CHAPTER 5 l 69 7. King Soopers. The following diagram illustrates the processes in the bakery.
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70 l PART 2 l Managing Processes 8. Referendum 13 Flowchart for yard sign assembly: Gluing Table Printed cards Stakes Glue Stapling Table Staples Completed signs Worker 1 Worker 2 Worker 3 Worker 4 Human resource requirements : One of many possible arrangements is to create several cells with four workers in each cell. Worker 1 is a materials handler, bringing printed cards and stakes (say in stacks or bundles of 25) to the gluing table and taking completed signs (again in bundles of 25) to the shipping area.
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krm8_ism_ch05 - Chapter 5 Process Analysis DISCUSSION...

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