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Lecture Operations now: Supply chain profitability and performance (3/e): Chapter 4 - Byron J. Finch

Chapter 4 - Processes: Turning resources into capabilities. After reading the material in this chapter, you should be able to: Describe the functions and importance of concurrent engineering for product and service design; describe the service system design matrix and understand the relationships between sales opportunities, customer contact, and process efficiency; describe the quality function deployment processes;. | Chapter 4 Processes: Turning Resources into Capabilities Learning Objectives Describe the functions and importance of concurrent engineering for product and service design. Describe the service system design matrix and understand the relationships between sales opportunities, customer contact, and process efficiency. Describe the quality function deployment processes. Describe the component matrices in the house of quality. Use the house of quality to structure quality function deployment. Differentiate between lean production, value stream mapping, Six Sigma, business process analysis, reengineering, and poka-yoke. Construct a process flow chart. Construct a service blueprint. 4- Process Definition A process is a collection of tasks and activities that together, and only together, transform inputs to outputs. Processes are organizing structures for resources, which provide the bridge between resources and capabilities. 4- Process Decisions and Process Choice Process decisions | Chapter 4 Processes: Turning Resources into Capabilities Learning Objectives Describe the functions and importance of concurrent engineering for product and service design. Describe the service system design matrix and understand the relationships between sales opportunities, customer contact, and process efficiency. Describe the quality function deployment processes. Describe the component matrices in the house of quality. Use the house of quality to structure quality function deployment. Differentiate between lean production, value stream mapping, Six Sigma, business process analysis, reengineering, and poka-yoke. Construct a process flow chart. Construct a service blueprint. 4- Process Definition A process is a collection of tasks and activities that together, and only together, transform inputs to outputs. Processes are organizing structures for resources, which provide the bridge between resources and capabilities. 4- Process Decisions and Process Choice Process decisions range from strategic to tactical Many require long-term investments All affect the firm’s ability to compete 4- General Layout Alternatives Product-oriented layout Process-oriented layout Cellular layout 4- General Layout Decisions The product-oriented layout Provides resources in a fixed sequence Matches the sequence of steps required to produce a product or service Common in high-volume manufacturing 4- Product Oriented Layout Advantages Efficient production of standardized goods and services High processing speed Low cost per unit Disadvantages Lack of flexibility or customization Employee boredom/ dissatisfaction Quality problems 4- Process Oriented Layout Process-oriented Layout Organized by function Processing steps can be completed in any sequence Products or customers can take any “route” necessary. 4- Process Oriented Layout Advantages Flexibility and customization Disadvantages Higher cost per unit Higher skilled, high cost employees Transport/wait time