Presentation is loading. Please wait.

Presentation is loading. Please wait.

Process A collection of tasks, connected by flows of goods and information, that transforms various inputs into more valuable outputs Transparency Masters.

Published by Modified over 8 years ago

Similar presentations

Presentation on theme: "Process A collection of tasks, connected by flows of goods and information, that transforms various inputs into more valuable outputs Transparency Masters."— Presentation transcript:

1 Process A collection of tasks, connected by flows of goods and information, that transforms various inputs into more valuable outputs Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 7-8 8

2 Process Flow Diagram Tasks are rectangles Flows are arrows
Inventory is inverted triangle Decision point is diamond © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 7-8 8

3 Process Flow Diagram May show non-value added steps
Process improvement Capacity calculations © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 7-8 8

4 Production Process Flow Diagram
Customer Purchasing (order inks, paper, other supplies) Customer sales representative take order Vendors Prepress Department (Prepare printing plates and negatives) Accounting Receiving Warehousing (ink, paper, etc.) Printing Department Collating Department Gluing, binding, stapling, labeling The most important point illustrated by this slide is that process design entails both material flow and information flow. Information flow Material flow Polywrap Department Shipping

5 Process Strategies Involve determining how to produce a product or provide a service Objective Meet or exceed customer requirements Meet cost & managerial goals Has long-run effects Product & volume flexibility Costs & quality © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 7-8 8

6 Types of Process Strategies
Process strategies that follow a continuum Within a given facility, several strategies may be used These strategies are often classified as: Process-Focused Repetitive-Focused Product-Focused Continuum This slide can be used to begin discussion of two points: - one seldom employs a pure process strategy (process, repetitive, or product) - but rather a strategy which has elements of each of the pure strategies - i.e., practical strategies lie along a continuum. - one seldom employs only a single strategy.

7

8 Process-Focused Strategy Job Shop
Facilities are organized by process Similar processes are together Example: All drill presses are together Low volume, high variety products ‘Jumbled’ flow Operation Product A Product B 1 2 3 Other names Intermittent process Job shop © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 7-11 11

9 Process-Focused Strategy Examples
Hospital © 1995 Corel Corp. Machine Shop © 1995 Corel Corp. Bank © 1995 Corel Corp. © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 7-12 12

10 Process Focused Strategy -Pros & Cons
Advantages Greater product flexibility More general purpose equipment Lower initial capital investment Disadvantages More highly trained personnel More difficult production planning & control Low equipment utilization (5% to 25%) © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 7-13 13

11

12 Batch Strategy Facilities often organized in a line
Product is made in batches Allows for many output options Examples: beer, soup, paint, medicines AKA Disconnected repetitive © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 7-14 14

13 Batch Strategy - Considerations
Allows for greater variety of product Gains some cost efficiencies More structured than process-focused, less structured than repetitive Capacity is set by size of batch process © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 7-15 15

14

15 Repetitive Focused Strategy
Facilities often organized by assembly lines Characterized by modules Parts & assemblies made previously Modules combined for many output options Other names Assembly line Production line Flow shop © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 7-14 14

16 Repetitive-Focused Strategy - Examples
Fast Food McDonald’s over 95 billion served © T/Maker Co. Clothes Dryer © 1995 Corel Corp. Truck © 1995 Corel Corp. © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 7-16 16

17 Repetitive Focused Strategy - Considerations
More structured than process-focused, less structured than product focused Enables quasi-customization Using modules, it enjoys economic advantage of continuous process, and custom advantage of low-volume, high-variety model Less variety Change in volume difficult © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 7-15 15

18

19 Product-Focused Strategy
Facilities are organized by product High volume, low variety products Where found Continuous process manufacturing Commodities Operation Products A & B 1 2 3 Other names Line flow production Continuous production © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 7-17 17

20 Product-Focused Examples
© 1995 Corel Corp. Soft Drinks (Continuous, then Discrete) © 1995 Corel Corp. Light Bulbs (Discrete) Paper (Continuous) © T/Maker Co. Mass Flu Shots (Discrete) © 1995 Corel Corp. © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 7-19 19

21 Product-Focused Strategy Pros & Cons
Advantages Lower variable cost per unit Lower but more specialized labor skills Easier production planning and control Higher equipment utilization (70% to 90%) Disadvantages Lower product flexibility More specialized equipment Usually higher capital investment © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 7-18 18

22

23 Product-Process Examples
Auto industry Prototype to high volume manufacturing Food prep Dream Dinners example for batch © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 7-15 15

24

25 Product-Process Examples
Auto industry Prototype to high volume manufacturing Food prep Dream Dinners example for batch © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 7-15 15

26

27 Product-Process Examples
Auto industry Prototype to high volume manufacturing Food prep Dream Dinners example for batch © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 7-15 15

28

29 End

30 Fit of Process, Volume, and Variety
Low-Volume (Intermittent) Repetitive Process (Modular) High-Volume (Continuous) Process focus projects, job shops,(machine, print, carpentry) Standard Register Mass Customization (difficult to achieve, but huge rewards) Dell Computer Co. High Variety One or few units per run, high variety (allows customization) Changes in modules Modest runs, standardized modules Repetitive (autos, motorcycles) Harley Davidson Changes in attributes (such as grade, quality, size, thickness, etc.) Long runs only It may be most useful to begin discussion of this slide with the repetitive process since most student seem to have a concept of an assembly line. Once the repetitive process is introduced, one can then view changing one of the parameters, volume or length of run, and argue the need for process- or product-focus systems. Once the three types of processes have been introduced, it is probably useful to discuss precisely why the low-volume/long run, and high-volume/short run options are poor choices. Poor strategy (Variable costs are high) Product focus (commercial baked goods, steel, glass) Nucor Steel

31 Volume and Variety of Products
Low Volume High Repetitive High Volume Variety of Variety Process Process Low Variety Products (Intermittent) (Modular) Process (Continous) One or very few Projects Poor Strategy (Fixed costs and cost changing to other products are high) units per lot Very small runs, high Job Shops variety Modest runs, modest Disconnected variety Repetitive Batch Long runs, modest Poor Strategy (High variable costs) Connected variations Repetitive Very long runs, Continuous Changes in attributes Equipment utilization 5%-25% 20%-75% 70%-80% © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 7-24 24

32 Work Cells Used when volume warrants a special arrangement of equipment Take people and machines ordinarily dispersed Arrange in a small group to focus on production of single product or group of related products

33 Work Cells A temporary assembly-line-oriented arrangement of machines and personnel in what is ordinarily a process-oriented facility Example: job shop with rearranged machinery and personnel to produce 30 unique control panels

34 Work Cells — Some Advantages
Reduced work-in-process inventory Less floor space required Reduced raw material and finished goods inventories required Reduced direct labor costs Heightened sense of employee participation Increased utilization of equipment machinery Reduced investment in machinery and equipment Note: Green & Sadowski report increased capital investment and lower machine utilization TM

Download ppt "Process A collection of tasks, connected by flows of goods and information, that transforms various inputs into more valuable outputs Transparency Masters."

Similar presentations

© 1997 Prentice-Hall, Inc. 5 - 1 Principles of Operations Management Process & Capacity Design Chapter 5.

© 1997 Prentice-Hall, Inc Principles of Operations Management Process & Capacity Design Chapter 5.
Process Strategy and Capacity Planning

Process Strategy and Capacity Planning
Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 1-6 © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle.

Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 1-6 © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle.
7 - 1© 2011 Pearson Education, Inc. publishing as Prentice Hall 7 7 Process Strategy and Sustainability PowerPoint presentation to accompany Heizer and.

7 - 1© 2011 Pearson Education, Inc. publishing as Prentice Hall 7 7 Process Strategy and Sustainability PowerPoint presentation to accompany Heizer and.
Process Strategies How to produce a product or provide a service that

Process Strategies How to produce a product or provide a service that
Location Strategy and Layout Strategy

Location Strategy and Layout Strategy
© 2006 Prentice Hall, Inc.7 – 1 Operations Management Chapter 7 – Process Strategy © 2006 Prentice Hall, Inc. PowerPoint presentation to accompany Heizer/Render.

© 2006 Prentice Hall, Inc.7 – 1 Operations Management Chapter 7 – Process Strategy © 2006 Prentice Hall, Inc. PowerPoint presentation to accompany Heizer/Render.
Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc.

Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc.
Operations Management Process Strategy Chapter 7

Operations Management Process Strategy Chapter 7
Job Shop, Flow Shop, and Batch Processing. 2 Ardavan Asef-Vaziri Jan-1011Operations Strategy: 1- Introduction Facility Layout : Job Shop A C B D Product.

Job Shop, Flow Shop, and Batch Processing. 2 Ardavan Asef-Vaziri Jan-1011Operations Strategy: 1- Introduction Facility Layout : Job Shop A C B D Product.
Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 4-20 © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle.

Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 4-20 © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle.
© 2006 Prentice Hall, Inc.7 – 1 Operations Management Chapter 7 – Process Strategy © 2006 Prentice Hall, Inc. PowerPoint presentation to accompany Heizer/Render.

© 2006 Prentice Hall, Inc.7 – 1 Operations Management Chapter 7 – Process Strategy © 2006 Prentice Hall, Inc. PowerPoint presentation to accompany Heizer/Render.
Chapter 7: Process Strategy and Sustainability

Chapter 7: Process Strategy and Sustainability
Learning Modules Introduction to POM Chapters, 1, 2, & 3

Learning Modules Introduction to POM Chapters, 1, 2, & 3
Operations Management

Operations Management
© 2006 Prentice Hall, Inc.7 – 1 Process Strategy Chapter7.

© 2006 Prentice Hall, Inc.7 – 1 Process Strategy Chapter7.
6-1 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

6-1 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Layout Strategy. Introduction What – Layout Decisions Where – For efficiency or customer appeal Why – Improve Profitability.

Layout Strategy. Introduction What – Layout Decisions Where – For efficiency or customer appeal Why – Improve Profitability.
Session-17-23 Pooja patnaik.

Session Pooja patnaik.
PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 7-1 Operations.

PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J Operations.

Similar presentations

Ads by Google