irwin/mcgraw-hill the mcgraw-hill companies, inc. 2004 1 process selection chapter 4
TRANSCRIPT
11Irwin/McGraw-Hill The McGraw-Hill Companies,
Inc. 2004
PROCESS SELECTIONPROCESS SELECTION
Chapter 4Chapter 4
22McGraw-Hill/Irwin The McGraw-Hill Companies,
Inc. 2004
OutlineOutline
Process SelectionProcess Selection
Service Process DesignService Process Design
Choice of TechnologyChoice of Technology
Process-Flow AnalysisProcess-Flow Analysis
33McGraw-Hill/Irwin The McGraw-Hill Companies,
Inc. 2004
Process SelectionProcess Selection
Product-Flow CharacteristicsProduct-Flow Characteristics
Classification by Type of Customer OrderClassification by Type of Customer Order
Process Selection DecisionsProcess Selection Decisions
Product-Process StrategyProduct-Process Strategy
Mass-customizationMass-customization
Cross Functional Decision MakingCross Functional Decision Making
44McGraw-Hill/Irwin The McGraw-Hill Companies,
Inc. 2004
Product-Flow CharacteristicsProduct-Flow Characteristics
Types of Product FlowTypes of Product Flow– Line FlowLine Flow– Batch FlowBatch Flow– Project FlowProject Flow
Characteristics of Flows (see Table 4.1)Characteristics of Flows (see Table 4.1)
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Line FlowLine Flow
WS 1 WS 2 WS 3
WS Task or work station
Product flow
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Batch FlowBatch Flow
WS 1 WS 3 WS 5
WS Task or work station Product flows
WS 2 WS 4
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Project FlowProject Flow
Start
1 3
Task Task or activity Precedence relationship
2 4
End
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Classification by Type of Classification by Type of Customer OrderCustomer Order
Make to Stock (MTS)Make to Stock (MTS)
Make to Order (MTO)Make to Order (MTO)
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Make to Stock (MTS)Make to Stock (MTS)
AdvantagesAdvantages
DisadvantageDisadvantage
Key performance measuresKey performance measures
Information flow (see Figure 4.4)Information flow (see Figure 4.4)
1010McGraw-Hill/Irwin The McGraw-Hill Companies,
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Make to Order (MTO)Make to Order (MTO)
AdvantagesAdvantages
DisadvantageDisadvantage
Key performance measuresKey performance measures
Information flow (see Figure 4.4)Information flow (see Figure 4.4)
1111McGraw-Hill/Irwin The McGraw-Hill Companies,
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MTS and MTO ComparisonMTS and MTO Comparison
Characteristics Make-to-Stock Make-to-OrderProduct Producer-specified
Low varietyInexpensive
Customer-specifiedHigh varietyExpensive
Objectives Balance inventory,capacity, and service
Manage delivery leadtimes and capacity
Main operationsproblems
ForecastingPlanning productionControl of invenntory
Delivery promisesDelivery time
1212McGraw-Hill/Irwin The McGraw-Hill Companies,
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Information-flow ComparisonMake-to-Stock (Figure 4-4)
ForecastedOrders
Sales(Shipm ents)
AccountsReceivable
GeneralLedger
Cost ofSales
Labor
Master Schedule
Bill of Materials
ProductionSchedule
Purchasing
InventoryControl
AccountsPayable
Production
M AKE-TO -STO CK
1313McGraw-Hill/Irwin The McGraw-Hill Companies,
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Information-flow ComparisonMake-to-Order (Figure 4-4)
ActualO rders
Sales(Shipm ents)
AccountsReceiv able
GeneralLedger
Cost ofSales
Labor
Master Schedule
Bill of Materials
ProductionSchedule
Purchasing
AccountsPayable
Production
M AKE-TO -O RDER
1414McGraw-Hill/Irwin The McGraw-Hill Companies,
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Process Selection DecisionsProcess Selection Decisions
Process characteristics matrixProcess characteristics matrix
Factors affecting process choiceFactors affecting process choice
1515McGraw-Hill/Irwin The McGraw-Hill Companies,
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Process Characteristics MatrixProcess Characteristics Matrix (Table 4.3)(Table 4.3)
Characteristics Make-to-StockMake-to-OrderAssemble-to-Order
Line Flow
Oil refineryFlour millingCanneryCafeteria
Automobile assemblylineTelephone companyElectric utility
Batch Flow
Machine shopFast foodGlassware factoryFurniture
Machine shopRestaurantHospitalCustom jewelry
Project
Speculation homesCommercial painting
BuildingsMoviesShipsPortraits
1616McGraw-Hill/Irwin The McGraw-Hill Companies,
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Factors Affecting Process Factors Affecting Process ChoiceChoice
Market conditions and competitionMarket conditions and competition
Capital requirementsCapital requirements
Labor supply and costLabor supply and cost
Management skillsManagement skills
Materials supply and costMaterials supply and cost
State of technologyState of technology
1717McGraw-Hill/Irwin The McGraw-Hill Companies,
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Product-Process StrategyProduct-Process Strategy
Product-Process Matrix (see Figure 4-5)Product-Process Matrix (see Figure 4-5)
Product Life Cycle (PLC) stagesProduct Life Cycle (PLC) stages
Process Life Cycle stagesProcess Life Cycle stages
Modified Product-Process Matrix (see Modified Product-Process Matrix (see Figure 4-6)Figure 4-6)
Cross functional decision making and Cross functional decision making and product-process strategyproduct-process strategy
1818McGraw-Hill/Irwin The McGraw-Hill Companies,
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Product Life Cycle StagesProduct Life Cycle Stages
Low volume-low standardization, one of a Low volume-low standardization, one of a kindkind
Multiple products, low volumeMultiple products, low volumeFew major products, higher volumeFew major products, higher volumeHigh volume-high standardization, High volume-high standardization,
commodity productcommodity product
1919McGraw-Hill/Irwin The McGraw-Hill Companies,
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Process Life Cycle StagesProcess Life Cycle Stages
Jumbled flow (job shop)Jumbled flow (job shop)Disconnected line flow (batch)Disconnected line flow (batch)Connected line flow (assembly line)Connected line flow (assembly line)Continuous flowContinuous flow
2020McGraw-Hill/Irwin The McGraw-Hill Companies,
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PRODUCT-PROCESS MATRIX (Figure 4.5)
ILow volume-low standardization, oneof a kind
CommercialPrinter
HeavyEquipment
Automobileassembly
SugarRefinery
IIMultiple products,low volume
IIIFew major productshigher volume
IIIHigh volume-highstandardization,commodity products
PRODUCT STRUCTURE (Product Life Cycle)P
RO
CES
S S
TR
UC
TU
RE (
Pro
cess L
ife C
ycle
)
IJumbled flow(job shop)
IIDisconnectedline flow(batch)
IIIConnectedline flow(assemblyline)
IVContinuousflow NONE
NONE
2121McGraw-Hill/Irwin The McGraw-Hill Companies,
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ILow volume-low standardization, one of a kind
IIMultiple products,low volume
IIIFew major productshigher volume
IIIHigh volume-highstandardization,commodity products
MODIFIED PRODUCT-PROCESS MATRIX (Figure 4.6)PRODUCT STRUCTURE (Product Life Cycle)
PR
OC
ES
S S
TR
UC
TU
RE (
Pro
cess L
ife C
ycle
)
IJumbled flow(job shop)
IIDisconnectedline flow(batch)
IIIConnectedline flow(assemblyline)
IVContinuousflow NONE
NONECommercial
printer
HeavyEquipment
Automobileassembly
SugarRefinery
2222McGraw-Hill/Irwin The McGraw-Hill Companies,
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Mass CustomizationMass Customization
DefinitionDefinition
Economies of scaleEconomies of scale
Economies of scopeEconomies of scope
Mass customization of serviceMass customization of service
Modular productionModular production
PostponementPostponement