1. Process Strategy & Analysis
Students should be able to:
1. Use the customer contact model and the product process matrix to assess the proper positioning of a firm’s operations.
2. Apply the steps in the systematic approach to process analysis.
3. Flowchart a business process and assess its weaknesses.

2. Major Decisions for Effective Process Design
Customer Involvement
Low involvement
High involvement
Resource Flexibility
Specialized
Generalized
Strategy for Change
Process
Reengineering
Improvement
Process Structure
Customer-contact position
(services)
Product-process position
(manufacturing)
Effective Process Design
Vertical Integration
In-house
Outsource
Capital Intensity
Low automation
High automation

3. Customer-Contact Model for Processes
Front office
Hybrid office
Back office
(1) (2) (3)
High interaction with Some interaction with Low interaction with
customers, highly customers, standard customers, standardized
customized service services with some options services
Process
Characteristics
(1)
Jumbled flows,
complex work with
many exceptions
(2)
Flexible flows with
some dominant
paths, moderate job
complexity with
some exceptions
(3)
Line flows, routine
work easily
understood by
employees
Less Complexity, Less Divergence, More Line Flows
Less Customer Contact and Customization
Service Package
First the framework for the analysis of process alternatives is established.
Figure 3.3

4. Embedding Strategy Into Service Processes
Competitive Priorities
Process Choice
Top quality; customization
Front office
Low-cost operation; consistent
quality; on-time delivery
Back office
The common denominator for decisions on
service processes is customer contact.

5. Product-Process Matrix for Processes
(1) (2) (3) (4) (5)
One of a kind Low volume, Multiple Few major High volume
products, made low products products, high
to customer standardization moderate higher standardization,
order volume volume commodity
products
Process
Characteristics
(1)
Complex and highly customized process, unique sequence of tasks
(2)
Jumbled flows, complex work with many exceptions
(3)
Disconnected line flows, moderately complex work
(4)
Connected line, routine work
(5)
Continuous flows, highly repetitive work
Less Complexity, Less Divergence, More Line Flows
Less Customization and Higher Volume
Product Design
Continuous
process
Project
Line
Batch
Job
First the framework for the analysis of process alternatives is established.
Figure 3.6

6. Embedding Strategy Into Manufacturing Processes
Competitive Priorities
Process Choice
Top quality; on-time
delivery; flexibility
Job process
Low-cost operations;
consistent quality;
delivery speed
Batch, line,
continuous
Competitive Priorities
Production and Inventory
Top quality, on time
delivery; flexibility
Make-to-order
Delivery speed; variety
Assemble-to-order
Low-cost operations;
delivery speed
Make-to-stock
The common denominator for decisions on
manufacturing processes is volume.

7. A Systematic Approach to Process Analysis
Define
Scope 2
Identify
Opportunity 1
Document
Process 3
Implement
Changes 6
Redesign
Process 5
Evaluate Performance 4

8. Custom Molds Process Analysis
1. Identify the Opportunity (gaps, strategic fit)
2. Define the Scope (boundaries of analysis)
3. Document the Processes (flowcharts)
4. Evaluate the Performance (metrics, measures)
5. Redesign the Process (decisions, actions)
6. Implement the Changes (projects)

9. How to Draw a Flowchart 1. Describe the process to be charted.
2. Start with a “trigger” event.
3. Note each successive action concisely and clearly.
4. Go with the main flow; put additional detail in other charts.
5. Make cross references to supporting information.
6. Follow the process to a useful conclusion; identify a “target” point.

11. Plant Layout for Custom Molds, Inc.

12. Seven Mistakes to Avoid
Not connecting to strategic issues.
Not involving the right people in the right way.
Not giving the design teams a clear charter and then holding them accountable.
Not satisfied unless fundamental reengineering changes are made.
Not considering the impact on people.
Not giving attention to implementation
Not creating the infrastructure for continuous process improvement.