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Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. 2004 1 PROCESS SELECTION Chapter 4.

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Presentation on theme: "Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. 2004 1 PROCESS SELECTION Chapter 4."— Presentation transcript:

1 Irwin/McGraw-Hill The McGraw-Hill Companies, Inc PROCESS SELECTION Chapter 4

2 McGraw-Hill/Irwin The McGraw-Hill Companies, Inc Outline Process Selection Service Process Design Choice of Technology Process-Flow Analysis

3 McGraw-Hill/Irwin The McGraw-Hill Companies, Inc Process Selection Product-Flow Characteristics Classification by Type of Customer Order Process Selection Decisions Product-Process Strategy Mass-customization Cross Functional Decision Making

4 McGraw-Hill/Irwin The McGraw-Hill Companies, Inc Product-Flow Characteristics Types of Product Flow –Line Flow –Batch Flow –Project Flow Characteristics of Flows (see Table 4.1)

5 McGraw-Hill/Irwin The McGraw-Hill Companies, Inc Line Flow WS 1WS 2WS 3 WS Task or work station Product flow

6 McGraw-Hill/Irwin The McGraw-Hill Companies, Inc Batch Flow WS 1 WS 3 WS 5 WS Task or work station Product flows WS 2WS 4

7 McGraw-Hill/Irwin The McGraw-Hill Companies, Inc Project Flow Start 1 3 Task Task or activityPrecedence relationship 24 End

8 McGraw-Hill/Irwin The McGraw-Hill Companies, Inc Classification by Type of Customer Order Make to Stock (MTS) Make to Order (MTO)

9 McGraw-Hill/Irwin The McGraw-Hill Companies, Inc Make to Stock (MTS) AdvantagesDisadvantage Key performance measures Information flow (see Figure 4.4)

10 McGraw-Hill/Irwin The McGraw-Hill Companies, Inc Make to Order (MTO) AdvantagesDisadvantage Key performance measures Information flow (see Figure 4.4)

11 McGraw-Hill/Irwin The McGraw-Hill Companies, Inc MTS and MTO Comparison

12 McGraw-Hill/Irwin The McGraw-Hill Companies, Inc Information-flow Comparison Make-to-Stock (Figure 4-4)

13 McGraw-Hill/Irwin The McGraw-Hill Companies, Inc Information-flow Comparison Make-to-Order (Figure 4-4)

14 McGraw-Hill/Irwin The McGraw-Hill Companies, Inc Process Selection Decisions Process characteristics matrix Factors affecting process choice

15 McGraw-Hill/Irwin The McGraw-Hill Companies, Inc Process Characteristics Matrix (Table 4.3)

16 McGraw-Hill/Irwin The McGraw-Hill Companies, Inc Factors Affecting Process Choice Market conditions and competition Capital requirements Labor supply and cost Management skills Materials supply and cost State of technology

17 McGraw-Hill/Irwin The McGraw-Hill Companies, Inc Product-Process Strategy Product-Process Matrix (see Figure 4-5) Product Life Cycle (PLC) stages Process Life Cycle stages Modified Product-Process Matrix (see Figure 4-6) Cross functional decision making and product-process strategy

18 McGraw-Hill/Irwin The McGraw-Hill Companies, Inc Product Life Cycle Stages Low volume-low standardization, one of a kind Low volume-low standardization, one of a kind Multiple products, low volume Multiple products, low volume Few major products, higher volume Few major products, higher volume High volume-high standardization, commodity product High volume-high standardization, commodity product

19 McGraw-Hill/Irwin The McGraw-Hill Companies, Inc Process Life Cycle Stages Jumbled flow (job shop) Jumbled flow (job shop) Disconnected line flow (batch) Disconnected line flow (batch) Connected line flow (assembly line) Connected line flow (assembly line) Continuous flow Continuous flow

20 McGraw-Hill/Irwin The McGraw-Hill Companies, Inc PRODUCT-PROCESS MATRIX (Figure 4.5) I Low volume-low standardization, one of a kind Commercial Printer Heavy Equipment Automobile assembly Sugar Refinery II Multiple products, low volume III Few major products higher volume III High volume-high standardization, commodity products PRODUCT STRUCTURE (Product Life Cycle) PROCESS STRUCTURE (Process Life Cycle) I Jumbled flow (job shop) II Disconnected line flow (batch) III Connected line flow (assembly line) IV Continuous flow NONE

21 McGraw-Hill/Irwin The McGraw-Hill Companies, Inc I Low volume-low standardization, one of a kind II Multiple products, low volume III Few major products higher volume III High volume-high standardization, commodity products MODIFIED PRODUCT-PROCESS MATRIX (Figure 4.6) PRODUCT STRUCTURE (Product Life Cycle) PROCESS STRUCTURE (Process Life Cycle) I Jumbled flow (job shop) II Disconnected line flow (batch) III Connected line flow (assembly line) IV Continuous flow NONE Commercial printer Heavy Equipment Automobile assembly Sugar Refinery

22 McGraw-Hill/Irwin The McGraw-Hill Companies, Inc Mass Customization Definition Economies of scale Economies of scope Mass customization of service Modular production Postponement


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