ProcessProcess Flow DiagramSlide 3Production Process Flow DiagramProcess StrategiesTypes of Process StrategiesSlide 7Process-Focused Strategy Job ShopProcess-Focused Strategy ExamplesProcess Focused Strategy -Pros & ConsSlide 11Batch StrategyBatch Strategy - ConsiderationsSlide 14Repetitive Focused StrategyRepetitive-Focused Strategy - ExamplesRepetitive Focused Strategy - ConsiderationsSlide 18Product-Focused StrategyProduct-Focused ExamplesProduct-Focused Strategy Pros & ConsSlide 22Product-Process ExamplesSlide 24Slide 25Slide 26Slide 27Slide 28EndFit of Process, Volume, and VarietyVolume and Variety of ProductsWork CellsSlide 33Work Cells — Some AdvantagesTransparency Masters to accompany Operations Management, 5E (Heizer & Render)7-8Process•A collection of tasks, connected by flows of goods and information, that transforms various inputs into more valuable outputsTransparency Masters to accompany Operations Management, 5E (Heizer & Render)7-8© 1998 by Prentice Hall, Inc.A Simon & Schuster CompanyUpper Saddle River, N.J. 07458Process Flow Diagram•Tasks are rectangles•Flows are arrows•Inventory is inverted triangle•Decision point is diamondTransparency Masters to accompany Operations Management, 5E (Heizer & Render)7-8© 1998 by Prentice Hall, Inc.A Simon & Schuster CompanyUpper Saddle River, N.J. 07458Process Flow Diagram•May show non-value added steps•Process improvement•Capacity calculationsProduction Process Flow DiagramShippingCustomerCustomer sales representativetake orderPrepress Department(Prepare printing plates and negatives)Printing DepartmentCollating DepartmentGluing, binding, stapling, labelingPolywrap DepartmentPurchasing(order inks, paper, other supplies)VendorsReceivingWarehousing(ink, paper, etc.)AccountingInformation flowMaterial flowTransparency Masters to accompany Operations Management, 5E (Heizer & Render)7-8© 1998 by Prentice Hall, Inc.A Simon & Schuster CompanyUpper Saddle River, N.J. 07458Process Strategies•Involve determining how to produce a product or provide a service•Objective•Meet or exceed customer requirements•Meet cost & managerial goals•Has long-run effects•Product & volume flexibility•Costs & qualityTypes of Process StrategiesContinuumContinuum•Process strategies that follow a continuum•Within a given facility, several strategies may be used•These strategies are often classified as:Repetitive-FocusedProduct-FocusedProcess-FocusedTransparency Masters to accompany Operations Management, 5E (Heizer & Render)7-11© 1998 by Prentice Hall, Inc.A Simon & Schuster CompanyUpper Saddle River, N.J. 07458Process-Focused StrategyJob ShopFacilities are organized by processSimilar processes are togetherExample: All drill presses are togetherLow volume, high variety products‘Jumbled’ flowOperationProduct AProduct B111122223333Other namesIntermittent processJob shopTransparency Masters to accompany Operations Management, 5E (Heizer & Render)7-12© 1998 by Prentice Hall, Inc.A Simon & Schuster CompanyUpper Saddle River, N.J. 07458Process-Focused Strategy ExamplesBank© 1995 Corel Corp.Machine Shop© 1995 Corel Corp.Hospital© 1995 Corel Corp.Transparency Masters to accompany Operations Management, 5E (Heizer & Render)7-13© 1998 by Prentice Hall, Inc.A Simon & Schuster CompanyUpper Saddle River, N.J. 07458Process Focused Strategy -Pros & Cons•Advantages•Greater product flexibility•More general purpose equipment•Lower initial capital investment•Disadvantages•More highly trained personnel•More difficult production planning & control•Low equipment utilization (5% to 25%)Transparency Masters to accompany Operations Management, 5E (Heizer & Render)7-14© 1998 by Prentice Hall, Inc.A Simon & Schuster CompanyUpper Saddle River, N.J. 07458Batch Strategy•Facilities often organized in a line•Product is made in batches•Allows for many output options•Examples: beer, soup, paint, medicines•AKA Disconnected repetitiveTransparency Masters to accompany Operations Management, 5E (Heizer & Render)7-15© 1998 by Prentice Hall, Inc.A Simon & Schuster CompanyUpper Saddle River, N.J. 07458Batch Strategy -Considerations•Allows for greater variety of product•Gains some cost efficiencies•More structured than process-focused, less structured than repetitive•Capacity is set by size of batch processTransparency Masters to accompany Operations Management, 5E (Heizer & Render)7-14© 1998 by Prentice Hall, Inc.A Simon & Schuster CompanyUpper Saddle River, N.J. 07458Repetitive Focused Strategy•Facilities often organized by assembly lines•Characterized by modulesParts & assemblies made previously•Modules combined for many output options•Other namesAssembly line Production lineFlow shopTransparency Masters to accompany Operations Management, 5E (Heizer & Render)7-16© 1998 by Prentice Hall, Inc.A Simon & Schuster CompanyUpper Saddle River, N.J. 07458Repetitive-Focused Strategy - ExamplesTruck© 1995 Corel Corp.Clothes Dryer© 1995 Corel Corp.Fast FoodMcDonald’sover 95 billion servedMcDonald’sover 95 billion served© 1984-1994 T/Maker Co.Transparency Masters to accompany Operations Management, 5E (Heizer & Render)7-15© 1998 by Prentice Hall, Inc.A Simon & Schuster CompanyUpper Saddle River, N.J. 07458Repetitive Focused Strategy -Considerations•More structured than process-focused, less structured than product focused•Enables quasi-customization•Using modules, it enjoys economic advantage of continuous process, and custom advantage of low-volume, high-variety model•Less variety•Change in volume difficultTransparency Masters to accompany Operations Management, 5E (Heizer & Render)7-17© 1998 by Prentice Hall, Inc.A Simon & Schuster CompanyUpper Saddle River, N.J. 07458Product-Focused StrategyFacilities are organized by productHigh volume, low variety productsWhere foundContinuous process manufacturingCommoditiesOperationProducts A & B112233Other namesLine flow productionContinuous productionTransparency Masters to accompany Operations Management, 5E (Heizer & Render)7-19© 1998 by Prentice Hall, Inc.A Simon & Schuster CompanyUpper Saddle River, N.J. 07458Product-Focused Examples© 1995 Corel Corp.Light Bulbs (Discrete)Paper (Continuous)© 1984-1994 T/Maker Co.© 1995 Corel Corp.Soft Drinks (Continuous, then Discrete)Transparency Masters to accompany Operations Management, 5E (Heizer & Render)7-18© 1998 by Prentice Hall, Inc.A Simon
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