Operations Management Jones & Robinson Operations Management Chapter 9 Designing Processes and Using Technology

Learning Objectives Outline the principles of process design using different types of process chart Discuss alternative approaches to process improvement Discuss the role of technology in materials processing operations (MPOs) Discuss the role of technology in customer processing operations (CPOs)

Process & Technology Process is a systematic arrangement of actions design to achieve specific outcomes Technology – the use of technical means to achieve process outcomes

Process Design The characteristics of a well designed process are: each element is consistent with the overall purpose of the operating system the whole process is user friendly, with easy to understand steps the whole process is robust (i.e. can take small variations without affecting delivery) consistency is easily maintained at every stage there are effective links with other processes within the operating system the whole process is cost effective

Process Flow Chart A method of identifying key aspects of an operations process using symbols Easy to identify value adding and non-value adding processes An aid to process design and layout design

Process Flow Chart Operation Inspection Transportation Delay NOTE: Only the Operation Process adds value all the others add cost Storage

Process Flow Chart A process flow chart includes: Communication – showing the relationship between task owners, usually depicted by a line or arrow Activity – i.e. operation, inspection, transport, storage or delay Time – cycle time, process time, wait time Distance – distance between operations and the distance workers need to move between individual steps in the process.

Some Basics of Process Design Are the steps arranged in a logical sequence? Are the capacities of each step balanced? How much flexibility is available at each step? Can steps be combined or should parallel steps be considered? Have customer process interactions been considered at each step?

Process Improvement A number of different tools and techniques: Pareto analysis – the ‘80/20’ rule Pairs comparison – to create a priority list Soft systems analysis – so-called ‘rich pictures’ qualitative problem analysis Failure mode and effect analysis (FMEA) – a system to analyze potential failures within a system. Fishbone (cause and effect) analysis

Fishbone Analysis Example of Fishbone (Cause and Effect) Analysis

Technology in MPO’s Technology can impact on materials processing operations (MPO’s) in a number of ways: The operation itself (such as moulding, fabricating or printing) Transport and movement systems Storage systems Inspection technologies

Technology in CPO’s Technology can be introduced into customer processing operations (CPO’s) in a number of different ways: Both customers and employees interact with it e.g. supermarket checkout Only the employee interacts with it e.g. hotel check-in Only the customer interacts with it e.g. vending machine The customer interacts passively with it e.g. passive display boards There is ‘hidden’ technology e.g. CCTV surveillance

Technology in CPO’s