Mgmt 361 - Ch 2 I[1]

Mgmt 361 - Ch 2 I[1] - MGMT 361 Operations Management (OM)...

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MGMT 361 Operations Management (OM) Ch II: Process Analysis - I Mgmt 361 Chapter 2 Process Analysis 1 Justin Jia
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Outline What is process? Process types. Single stage vs. multi stage Make to stock vs. make to order Process Measure and Analysis Chapter 2 Process Analysis Mgmt 361 2
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Definition of Process A process is any part of an organization that takes inputs and transforms them into outputs that, it is hoped, are of greater value to the organization than the original inputs. Output Input Control Operations Process schematic Transactions (material, etc) go through a process Operations require resources (people, machines, etc.) Mgmt 361 Chapter 2 Process Analysis 3
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Process Flowcharting (AKA: Process (Flow) Diagram, Value Stream Mapping) Ideal methodology by which to begin analyzing a process. Used to present the major elements of a process. Basic elements: tasks (operations), flows of materials or customers, decision points, and storage areas or queues. Resource Buffer Transaction Information Flow. Flow Decision Precedence Diagram. Operation Precedence Mgmt 361 Chapter 2 Process Analysis 4
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Single Stage Stations in parallel, separate queue 2 Stations in parallel, single queue 3 1 In and above, there is a single stage with multiple stations. Multi Stage 1 Process with buffer 2 3 Hybrid Words station and stage will be used interchangeably when there is only one station at each stage. Process types I Which one better???? Mgmt 361 Chapter 2 Process Analysis 5
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Process types II Make to stock Make to order Hybrid Process activated to meet expected or forecast demand. Customer orders are served from target stocking level. Only activated in response to an actual order. Both work in process and finished goods inventory kept to a minimum. Combines the features of both make to order and make to stock. Make to stock Old Process at McDonald’s Raw Mat. Finished goods Cook Assemble Customer Order Deliver Mgmt 361 Chapter 2 Process Analysis 6
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Process types II Make to order Wendy’s Raw Matl. Customer order Assemble Cook Deliver Chili Patties cooking for too long used for chili soup. Hybrid Burger King Finished goods Assemble WIP Raw Matl. Cook Assemble Customer Order Deliver Custom or Standard? C S Mgmt 361 Chapter 2 Process Analysis 7
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Make to Stock vs. Make Order Make to Stock Make to Order Production Before customer order After customer order Final goods inventory Yes No Characteristics Short delivery times Batch production High inventory Long lead time Customization Low inventory Mgmt 361 Chapter 2 Process Analysis 8
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Outline What is process?
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Mgmt 361 - Ch 2 I[1] - MGMT 361 Operations Management (OM)...

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