1. Operations Management Business Processes Chapter 3 - Hanfield

2. Proctor & Gamble – Old Process

3. Proctor & Gamble – New Process

4. Business Processes
Primary processes Providing a service, producing a product
Support processes Cost accounting, supplier management, etc.
Development processes Developing new products, training new workers, etc.

5. Business Processes New product development
Cut across functions and organizations
For many business processes, no single functional area or supply chain partner has a complete view or control
New product development

6. Improving Business Processes
Improving business processes is at the core of operations and supply chain management
Performance level of most processes decreases over time unless forces are exerted to maintain it
Competitive pressures often force improvement
Customer demands are continually increasing

7. Mapping Business Processes
Relationship maps
Process maps

8. Mapping Business Processes
Relationship maps
Process maps

9. Guidelines for Process Improvement

10. Improving Process Performance
Quality
Cost productivity, efficiency
Time cycle time
Flexibility
Utilize benchmarking to identify, understand, and adapt outstanding practices to improve performance

11. Cycle Time Drivers Waiting time Nonessential process steps
Serial vs. parallel process steps
Repeated steps
Batching
Excessive controls
Outdated technology
Lack of information
Lack of or ineffective training

12. Rummler-Brache Process Mapping

13. Continuous Improvement
Small, incremental improvements that can add up to significant performance improvements over time
Business Process Reengineering
Fundamental rethinking and radical redesign of business processes to achieve dramatic organizational improvements

14. Operations Management Process Management

15. Process Design
High
Variety of Products
How do I produce my goods and services - meeting customer requirements - meeting specifications - within cost and other constraints
Moderate
Low
Low Moderate High
Volume

16. Product – Process Matrix
Job process
Machine shop
Hospital emergency room
King Soopers custom cakes
High
Variety of Products
Batch process
Textbook printing
Forging process
King Soopers pastries
Moderate
Line process
Auto assembly
Cafeteria line
King Soopers bread line
Continuous process
Oil refining process
Telephone line access
Paper production
Low
Low Moderate High
Volume

17. Product – Process Matrix
Job process
Machine shop
Hospital emergency room
King Soopers custom cakes
Mass customization
Dell Computer
Benneton sweaters
Sherwin-Williams paint
High
Variety of Products
Batch process
Textbook printing
Forging process
King Soopers pastries
Moderate
Line process
Auto assembly
Cafeteria line
King Soopers bread line
Continuous process
Oil refining process
Telephone line access
Paper production
Low
Low Moderate High
Volume

18. Product – Process Matrix
Job process
Process-focused
Mass customization
Customization at high volume
High
Variety of Products
Batch process
Process-focused
Moderate
Line process
Repetitive (modular) focus
Continuous process
Product-focused
Low
Low Moderate High
Volume

19. Process Design Low volume, make-to-order process
Less vertical integration
More resource flexibility
More customer involvement
Less capital intensity / automation
High
Variety of Products
High volume, make-to-stock process
More vertical integration
Less resource flexibility
Less customer involvement
More capital intensity / automation
Moderate
Low
Low Moderate High
Volume

20. King Soopers Bakery

21. King Soopers Bakery High Low 7000 loaves/hr 1000 pastries/hr
50 cakes/hr
Bread line
Pastry line
Cake line
High Low

22. Process Design
High
Variety of Products
The choice of process for any activity affects: - how expensive it is to buy & operate - how fast it is - the quality of the outputs - the ability to customize outputs - how easy it is to change (flexibility) - the need for human resources
Moderate
Low
Low Moderate High
Volume