Slide 1Starting from the organization’s strategy…Identify Processes thatSome Basic Process StrategiesProcess FocusProcess Focus (cont’d)Repetitive FocusRepetitive Focus (cont’d)Product FocusProduct Focus (cont’d)Mass Customization FocusMass Customization Focus (cont’d)Comparison of ProcessesComparison of ProcessesIn place of Summary…1BA 341 – Lean OperationsDr. Bogdan BichescuProcess StrategiesStarting from the organization’s strategy…2Identify Processes that…support the Operations strategy and organizational objectivesProduct/service features, e.g., innovative vs. functionalProduct variety, volume, demand uncertaintyCost and quality of produced goods or servicesProduction efficiency and flexibility3Some Basic Process Strategies4Process Focus5Many inputs(surgeries, sick patients, baby deliveries, emergencies)Many different outputs(uniquely treated patients)Many departments and many routings(low-volume, high-variety, intermittent processes)Arnold Palmer HospitalProcess Focus (cont’d)Supports a high degree of product flexibility and customizationLow product volumesGeneral purpose equipment and skilled personnel, typically grouped by functionHigh variable costs and low equipment utilizationVariable product flows  planning and scheduling of resources is challenging6Repetitive Focus7Modules combined for manyOutput options(many combinations of motorcycles)Few modulesRaw materials and module inputs(multiple engine models, wheel modules)(modular)Harley DavidsonRepetitive Focus (cont’d)Characterized by modules with parts and assemblies made previouslyModules may be combined in different ways, resulting in many output optionsFacilities often organized as assembly linesLess product flexibility then process-focused facilities, but more efficient, while also allowing higher product volumes8Product Focus9Few Inputs(corn, potatoes, water, seasoning)Output variations in size, shape, and packaging(3-oz, 5-oz, 24-oz package labeled for each material)(high-volume, low-variety, continuous process)Frito-LayProduct Focus (cont’d)Focus on one product or product familyHigh volume, but low product varietyHighly specialized equipment and generally less skilled laborTypically high fixed costs, but low variable costsTypical of continuous processes (with long production runs), e.g., glass, paper, potato chips, pharmaceuticals, chemicals, refineries 10Mass Customization Focus11Many output versions(custom PCs and notebooks)Many modulesMany parts and component inputs(chips, hard drives, software, cases)(high-volume, high-variety)Dell ComputerMass Customization Focus (cont’d)Aims to combine the efficiency of the product focus with the flexibility of the process focusA response to customers’ increasingly unique demands12ItemNumber of Choices1970s CurrentlyVehicle Models 140 286Vehicle Styles 18 1,212Bicycle Types 8 211,000Yearly Movie Releases 267 765SKUs in Supermarkets 14,000 150,000Comparison of Processes13Comparison of Processes14In place of Summary…15What types of process is used for making PaperCustom homesBig MacsCarsWedding invitationsGasolinePringlesDigital