Process strategy
Process strategy is an organization’s approach to transforming resources into goods and services. The objective of a process that meets customer requirement and product specification within cost and other managerial constrain.
FOUR PROCESS STRATEGIES
Process Focus
Process focus is a production facility organized around processes to facilitate low-volume, high-variety production.
Repetitive Focus
Repetitive process use modules. Modules is a part or components of a product previously prepared, often in continuous process. Repetitive Process is a product-oriented production process that uses modules. In repetitive process allows more customizing than continuous process.
Product Focus
Product focus also called continuous processes, because they have very long, continuous production runs. Product focus is a facility organized around products; a product oriented, high-volume, low variety process.
Mass Customization
Focus
In spite of this proliferation of product, operation manager
have improved product quality when reducing cost. Operation manager use mass
customization to produce this vast array of goods and services. Mass
customization is the rapid, low cost production of goods and services that
fulfill increasingly unique customer desire. But mass customization is not just
about variety; it is about making precisely what the customer wants when the
customer wants it economically.
Mass customization suggests a system in which product are built-to-order. Built-to-order means producing. But build-to-order is difficult. Some major challenges are:
- Product design must be imaginative and fast
- Process design must be rapid, flexible and able to accommodate changes in design and technology
- Inventory management require tight control
- Tight schedule that track order and material from design through delivery can be effectively implemented only with dedicated personnel.
- Responsive partners in supply chain yield effective collaboration.
PROCESS ANALYSIS AND DESIGN
When analyzing and designing processes to transform resources into goods and service we ask question such as :
- Is the process designed to achieve competitive advantages in term of differentiation, response, or low cost?
- Does the process eliminate steps that do not add value?
- Does the process maximized customer value as perceived by customer?
- Will the process win order?
Flow diagrams
Flow diagram schematic or drawing of the movement of material, product or people.
Time Function Mapping
Time function mapping is flow diagram with time value added on the horizontal axis. This chart also called process mapping. With process mapping, nodes indicate the activities and the flow direction, with time horizontal axis.
Value Stream Mapping
Value stream mapping is a process that helps managers understand how to add value in the flow of material and information through the entire production process. Value stream mapping takes an expanded look at where value is added (and not added) in entire production process, including the supply chain. As with time-function mapping, the idea is to start with the customer and understand the production process, but value stream mapping extends the analysis back to supplier.
Process Chart
Process chart is the charts that use symbols to analyze the movement of people or material. Process chart use symbols, time, and distance to provide an objective and structured way to analyze and record to activities that make up a process. They allow us to focus on value-added activities.
Service Blueprinting
Service blueprinting is a process analysis technique that lends itself to a focus on the customer and provider’s interaction with the customer. Product with a high service content may warrant use of yet a fifth process technique.
SERVICE PROCESS DESIGN
Customer Interaction and Process Design
- In the upper section (quadrant) of mass service and professional service, where labor content is high, we expect the manager to focus extensively on human resources. This quadrant require that managers find ways of addressing unique issue that satisfy customer and win orders.
- The quadrant with low customization tent to (1) standardize or restrict some offering. (2) automate. (3) remove some services, such as seat assignment, as has southwest airlines.
More Opportunities to Improve Service Process
Layout
Layout design is an integral part of many service process, particularly in retaining, dining, and banking.
Human Resources
Because so many services involve direct interaction with the customer, the human resource issue of recruiting and training can be particularly important ingredient in service processes.
SELECT OF EQUIPMENT AND TECHNOLOGY
Picking the best equipment means understanding the specific industry and available process and technology. The selection of equipment for a particularly type of process can also provide competitive advantage. This advantage may result in added flexibility in meeting customer requirements, lower cost, or higher quality. Modern technology also allows operations managers to enlarge the scope of their processes. As a result, an important attribute to look for in new equipment and process selection is flexible equipment. Flexibility is the ability to response with little penalty in time, cost, or customer value.
PRODUCTION TECHNOLOGY
Machine Technology
Most of the world’s machinery that performs operation such as cutting, drilling, boring, and milling is undergoing tremendous progress in both precision and control. Machinery of 21st century is often five times more productive than the previous generation while being smaller and using less power. The intelligent now available for controlling of new machinery via computer chips allows more complex and precise item to be made faster. Machinery with its own computer and memory is called computer numerical control (CNC) machinery.
Automatic Identification Systems (AISs) and RFID
Automatic identification system is a system for transforming data into electronic form, for example bar codes. AISs help us move data into electronic form, where it is easily manipulated.
RFID (Radio frequency identification) is a wireless system in which integrated circuits with antennas send radio waves.
Process Control
Process control is the use of information technology to monitor and control a physical process. Process control systems operate in a number of ways, but the following is typical:
- Sensors collect data
- Devices read data on some periodic basis, perhaps one a minute or once every second
- Measurements are translated into digital signals, which are transmitted to a digital computer
- Computer programs read the file and analyze the data
- The resulting output may take numerous forms.
Vision System
Vision system is a system that combine video cameras and computer technology and are often used in inspection role.
Robots
Robots are mechanical devices that may have a few electronic impulses stored on semiconductor chips that will active motors and switches. Robots may be used effectively to perform task that especially monotonous or dangerous or those that can be improved by substitution of mechanical for human effort.
Automated Storage and Retrieval System (ASRSs)
Auto storage and retrieval system is a computer-controlled warehouse that provide for the automatic placement of part into and form designated place within warehouse.
Automated Guide Vehicles (AGVs)
Automated guide vehicles are electronically guide and controlled carts used in manufacturing to move parts and equipment.
Flexible Manufacturing System
Flexible manufacturing system Is a system that uses an automated work cell controlled by electronic signals from a common centralized computer facility. An FMS is flexible because both the material-handling devices and the machine themselves are controlled easily changed electronic signals.
Computer-Integrated Manufacturing (CIM)
Computer integrated Manufacturing is a system manufacturing in which CAD,FMS, inventory warehousing, and shipping are integrated.
TECHNOLOGY IN SERVICES
PROCESS REDESIGN
Process redesign is the fundamental rethinking of business processes to bring about dramatic improvements in performance. Effective process redesign relies on reevaluating the purpose of the process and questioning both purpose and underlying assumption. It work only if the basic process and its objectives are reexamined.
ETHICS AND ENVIRONMENTALLY FRIENDLY PROCESSES
Many firm have found opportunities in their production processes to reduce the negative impact on the environment. The opportunities range from activities that society perceives as ethical and socially responsible to action that are legally required, such pollution prevention. These activities include a focus on such issues as efficient use of resources, reduction of waste by products, emission controls, and recycling. Process can be ethical, environmentally friendly, and socially responsible while still contributing to profitable strategies.