1. Copyright © 2014 McGraw-Hill Higher Education. All rights reserved. CHAPTER 5 Manufacturing and Service Process Structures McGraw-Hill/Irwin

2. Learning Objectives 5–2 LO5-1 Compare and contrast the process structures LO5-2 Compare and contrast the goals and challenges associated manufacturing and service processes LO5-3 Describe how and why each of the operations layouts is designed LO5-4 Analyze a product layout using line balancing LO5-5 Explain how technology is used in the supply chain LO5-6 Use indifference analysis in process selection decisions

3. Product-Process Matrix 5–3 Figure 5-1 LO5-1

4. Process Structure and Market Orientation 5–4 Engineer to Order (ETO): unique, customized products Make to Order (MTO): similar design, customized during production Assemble to Order (ATO): produced from standard components and modules Make to Stock (MTS): goods made and held in inventory in advance of customer orders LO5-1

5. Service Process Matrix 5–5 LO5-2

6. Service Blueprinting Customer actions: all actions done by customers during service delivery Front office: employee actions in the face-to-face encounter Back office: behind the scenes activities Support processes: activities necessary for the service, done by employees without direct customer contact Physical evidence: tangibles the customers see or collect from the organization 5–6 LO5-2

7. Operations Layout Fixed position: product cannot be moved during production Functional: groups together similar resources Product: resources arranged by regularly occurring sequence of activities 5–7 LO5-3

8. Line Balancing in Product Layouts Used to assign individual tasks to work areas for a desired output rate 1.Determine precedence relationships 2.Calculate Takt time 3.Determine minimum number of work stations 4.Determine efficiency 5–8 LO5-4

9. Supply Chain Technologies 5–9 Decisions Support Computing power and data management Processing Material and data processing Communications Greater connectivity Integrative Combine all other capabilities LO5-5

10. Manufacturing/Service Process Summary 1.Product-process matrix classifies processes based on volume and variety 2.Service are categorized by customization and labor/capital intensity 3.Services processes can be front or back office 4.Layouts should fit with processes used 5.Process automation and technology affects costs and capabilities 5–10