Process strategy is the organization’s approach to transform-
ing resources into goods and services.
Process Focused/Job Shop
Job Shop with components made
in Product Focused and Modular
Service blueprinting is a process analysis technique that fo-
cuses on the provider’s interaction with the customer.
Process reengineering is the rethinking and radical design of
business processes to bring about dramatic improvements in
Techniques for improving service productivity include: sepa-
ration, self-service, postponement, focus, modules, automation,
scheduling, and training.
The 4 quadrants are:
(1) mass service (low interaction/customization; high labor
(2) professional service (high interaction/customization;
high labor intensity)
(3) service factory (low interaction/customization; low
(4) service shop (high interaction/customization; low labor
CIM (computer integrated manufacturing), in its ideal, but
seldom realized form, ties together computer-aided design (CAD),
computer – aided manufacturing, Fexible manufacturing systems
(±MS), the necessary automated storage and retrieval systems
(ASRS) and movement of materials (automated transfer machines
or automated guided vehicles – AGVs) to make it all work.
In process control systems sensors collect data; analog de-
vices read data on a periodic basis; measurements are digitized
and transmitted to a computer; data are analyzed; and output is
presented in various signals, charts, diagrams, messages, etc.
Manufacturing ²rms in each of the process models:
Process focus, your local print shop and Kinko’s
Repetitive focus, Harley-Davidson
Product focus, International paper
Mass customization, Dell Computer
Competitive advantage of manufacturing ²rms in each of the
Process focus, differentiation, and expertise in each
process area. (Kinko’s)
Repetitive focus, rapid response, and ef²ciency (Harley-
Product focus, very low variable cost (International Paper)
Mass customization, low cost, rapid response to unique
customer demands. (Dell Computer)
Students may ²nd ±igure 7.1 and ±igure 7.10 and the related
discussions helpful with this question. Service ²rms in each of the
Process: your local general-purpose hospital. Also most
construction ²rms, such as Bechtel
Repetitive: fast-food restaurants
Product: Shouldice Hospital.
Mass customization: cafeterias and e-trade stockbrokers
such as Schwab
Competitive advantage of service ²rms in each process model:
Process focus for a general-purpose hospital: specialization
of expertise in each hospital discipline, x-ray, physical ther-
apy, blood lab, etc., by both the technician and supervision.