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MIM 558 Comparative Operations Management. Dr. Alan Raedels, C.P.M. Process Analysis. What is a Process?. A process is any work that meets four criteria: it is recurrent; it affects some aspect of organizational capabilities;
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MIM 558Comparative Operations Management Dr. Alan Raedels, C.P.M.
What is a Process? • A process is any work that meets four criteria: • it is recurrent; • it affects some aspect of organizational capabilities; • it can be accomplished in different ways that make a difference to the contribution it generates in terms of cost, value, service, or quality; • and it involves coordination. Peter G.W. Keen, The Process Edge, Boston, MA: Harvard Business School Press, 1997, p. 19.
Types of Processes • Identity • Priority • Background • Mandated • Folklore
Process Charts • Systems Flowcharts • Layout Diagrams • Top-Down Flowcharts • Deployment Charts
Functions as a communications tool Functions as a planning tool Provides an overview of the system Defines roles Demonstrates interrelationships Promotes logical accuracy Facilitates troubleshooting Documents a system Advantages of Flowcharts
Manufacturing Process Spectrum Job Shop Continuous Process Batch Flow Assembly Line
Product-Process Matrix Few Major Products, Higher Volume High Volume, High Standard- ization Low Volume One of a Kind Multiple Products, Low Volume Flexibility- Quality Commercial Printer Job Shop Heavy Equipment Batch Assembly Line Automobile Assembly Continuous Flow Sugar Refinery Dependability Cost Flexibility-Quality Dependability-Cost
What Makes Services Different? • A service is produced at the instant of delivery. • A service cannot be centrally produced, inspected, stockpiled, or warehoused. • The product cannot be demonstrated, nor can a sample be sent for customer approval in advance of the service. • The person receiving the service has nothing tangible. • The experience cannot be sold or passed on to a third party.
What Makes Services Different? • If improperly performed, a service cannot be recalled. • Quality assurance must happen before production rather than after production. • Delivery of the service usually requires human interaction to some degree. • The receiver’s expectations of the service are integral to their satisfaction with the outcome. • The more people the customer must encounter during the delivery of the service, the less likely they will be satisfied with the service.
Service Matrix Degree of Interaction and Customization Low High Service factory Airlines Tracking Hotels Resort and recreation Service shop Hospitals Computer dating Repair services Low Degree of Labor intensity Mass services Retailing Wholesaling Schools Retail aspects of commercial banking Professional Services Lawyers Doctors Accountants Architects High