4 - Process Selection

4 - Process Selection - Operations Management Operations...

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Unformatted text preview: Operations Management Operations Contemporary Concepts and Cases Process Selection Chapter 4 Outline Product-Flow Characteristics Classification by Type of Customer Order Process Selection Decisions Product-Process Strategy Focused Operations Mass-customization Environmental Concerns Cross Functional Decision Making 4-2 4- Product-Flow Characteristics Types of Product Flow – – – – – 4-3 4- Continuous process Assembly/job shop Line Batch Project Product-Flow Characteristics Continuous Process Process industries (beer, paper, oil, etc.) Process etc Highly standardized and automated High volumes of production Commodity products Low cost is the ‘order winner’ Flexibility limited 4-4 4- Product-Flow Characteristics Assembly Line Flow Linear sequence of operations Discrete products (autos, appliances, etc.) Discrete etc High-volume, standardized products Inflexibility in product and volume Very efficient Large capital investment 4-5 4- Product-Flow Characteristics Batch Flow Production of batches or lots Batches flow from one work center to another Low volume products Many different types of products Flow is jumbled and intermittent Flexible labor and equipment 4-6 4- Classification by Type of Classification Customer Order Customer Make to Stock (MTS) Make to Order (MTO) Assemble to Order (ATO) 4-7 4- Make to Stock (MTS) Produce finished goods; customer buys Produce from inventory from Advantage: smooth production Disadvantage: inventory Key performance measures (next slide) 4-8 4- Make to Order (MTO) Start production when customer orders. Advantage: no finished goods inventory Disadvantage: intermittent production 4-9 4- Assemble to Order (ATO) Make parts and subassemblies; finish when Make customer places order. customer Advantages: less inventory, faster service Disadvantage: some WIP inventory 4-10 4- Process Selection Decisions Process characteristics matrix – – Make to stock vs. MTO/ATO Continuous/discrete, batch & project Factors affecting process choice – – – – 4-11 4- Market conditions Capital requirements Availability and cost of labor State of technology Product-Process Strategy Strategy must consider not only the product or Strategy service, but also how to produce it. service, As many industries move through their As product life cycles, they also move through a process life cycle. e.g. the traditional bread bakery vs. the modern automated bakery. bakery 4-12 4- Product Life Cycle Stages 1. Unique, one of a kind 2. Low volume, low standardization 3. Low volume, multiple products 4. Higher volume, few major products 5. High volume, high standardization, 5. commodity commodity 4-13 4- Process Life Cycle Stages 1. Project 2. Job shop 3. Batch 4. Assembly line 5. Continuous 4-14 4- Focused Operations Company may have products or services with Company different volumes and levels of standardization. different Mixing them in the same operation can cause Mixing significant problems. significant Focus involves separating different products or Focus services in the same facility into PWPs. services 4-15 4- Types of Focus Product focus Process type Technology Volume of sales Make-to-stock and make-to-order New products and mature products 4-16 4- Mass Customization A strategy to provide products in lot sizes of strategy one in high volume. one Possible because of flexible manufacturing. Based on economies of scope instead of Based economies of scale, i.e. a high variety of products from a single process. single 4-17 4- Forms of Mass Customization Modular production & ATO (e.g. Dell) Fast changeover (e.g. Motorola) Postponement of options (e.g. HewlettPackard) 4-18 4- Environmental Concerns Technologies for Pollution Prevention Technologies for Pollution Control Infrastructure Systems and Practices Other concerns – Recycling outputs – Recycling inputs – Remanufacturing Remanufacturing 4-19 4- Summary Product-Flow Characteristics Classification by Type of Customer Order Process Selection Decisions Product-Process Strategy Focused Operations Mass-customization Environmental Concerns Cross Functional Decision Making 4-20 4- End of Chapter Four 4-21 4- ...
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This note was uploaded on 06/21/2011 for the course DSCI 304 taught by Professor Gonzalez,m during the Spring '08 term at CofC.

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