1 Manufacturing Processes BA 339 Mellie Pullman

2 Process Choice & Layout

3 Process Types (in order of decreasing volume) Continuous Flow Production Line Batch Job Shop Project

4 Mixing Together the Process Types... Spindles Arms and Legs Seats BATCH for fabricating parts... ASSEMBLY LINE for putting together final product

5 Choosing a Process type Job ShopBatchLine Volume Variety Skills AdvantageFlexibilityPrice and Delivery

6 Product – Process Matrix One of a Kind Low Volume Multiple Products Moderate Volumes Few Major Products High Volume Commodity Products Job Shop Batch Line Very Poor Fit

7 What is “Customization”? An operations-centric view: “Customization occurs when a customer’s unique requirements directly affect the timing and nature of operations and supply chain activities”

8 Customization Models Definitions: ETO – engineer to order MTO – make to order ATO – assemble-to-order MTS – make to stock Upstream: before the customization point, “off-line” activities Downstream: after the customization point, “on-line” activities

9 Make-to-Stock Planning Issues When, how much, and how to replenish stock at location Success Balancing level of inventory against level of service Other examples?

10 Assemble-to-Order Success comes from: Flexible Engineering design Modularity

11 ATO Planning Issues Options configurations (Smart Car) 8 different colors 2 different trims 2 different seats Possible combinations? Less finished good inventory & waste than MTS

12 Make-to-order or Engineer-to-order The Joinery

13 MTO or ETO Customer Information intensive Usually requires engineer or designer Minimal “unsold” inventory on hand

14 Difficulty versus Customization

15 Service Processes BA 339

16 Services... Process and “product” are inseparable Marketing and sales often tightly integrated Customer often part of the process Performance metrics can be harder to define Nevertheless: Focus and process choices / trade-offs still apply

17 Degree of Customer Contact Low Contact “off-line” Can locate for efficiency Can smooth out the workload Check clearing, mail sorting High Contact “on-line” Can locate for easy access Flexibility to respond to customers Harder to manage Hospitals, food service

Service-System Design Matrix Mail contact Face-to-face loose specs Face-to-face tight specs Phone Contact Face-to-face total customization LowMediumHigh Low High Low Degree of customer/server contact Internet & on-site technology Sales Opportunity Production Efficiency

19 Classifying Services “Front Room” versus “Back Room” Back room – what the customer does not see Managed for efficiency and Productivity Package sorting, car repair, blood test analysis, accounting department Front room – what the customer can see Managed for flexibility and customer service Customer lobbies, bank teller, receptionist

20 Layout Decision Models Process-layout Usually best for a job shop Distance between steps a measure Product-based layout Usually best for a line operation Cycle time a primary measure