Process Selection and Technology Management Lecturer Nopadol Rompho 26th September 2003

1. 1 Process Selection and Technology ManagementLecturer Nopadol Rompho26th September 2003

2. 2 Outline GLOBAL COMPANY PROFILE: DELL COMPUTER CO. FOUR PROCESS STRATEGIES Process Focus Repetitive Focus Product Focus Mass Customization Focus Comparison of Process Choices

3. 3 Outline - Continued PROCESS ANALYSIS AND DESIGN Flow Diagrams Time-Function Mapping Process Charts Service Blueprinting SERVICE PROCESS DESIGN Customer Interaction and Process Design More Opportunities to Improve Service Processes SELECTION OF EQUIPMENT AND TECHNOLOGY

4. 4 Outline - Continued PRODUCTION TECHNOLOGY Machine Technology Process Control Vision Systems Automated Storage and Retrieval System Automated Guided Vehicle (AGV) Flexible Manufacturing Systems (FMS) Computer-Integrated Manufacturing (CIM)

5. 5 Outline - Continued TECHNOLOGY IN SERVICES ENVIRONMENTALLY FRIENDLY PROCESSES PROCESS REENGINEERING

6. 6 Learning Objectives When you complete this chapter, you should be able to : Identify or Define: Process focus Repetitive focus Product focus Process reengineering Service process issues Environmental issues

7. 7 Learning Objectives - Continued When you complete this chapter, you should be able to: Describe or Explain: Process analysis Service design Green manufacturing Production technology

8. 8 Outline GLOBAL COMPANY PROFILE: DELL COMPUTER CO. FOUR PROCESS STRATEGIES PROCESS ANALYSIS AND DESIGN SERVICE PROCESS DESIGN SELECTION OF EQUIPMENT AND TECHNOLOGY PRODUCTION TECHNOLOGY TECHNOLOGY IN SERVICES PROCESS REENGINEERING ENVIRONMENTALLY FRIENDLY PROCESSES

9. 9 Dell Computer Company �How can we make the process of buying a computer better?� Sell custom-build PCs directly to consumer Integrate the Web into every aspect of its business Operate with six days inventory Build computers rapidly, at low cost, and only when ordered Focus research on software designed to make installation and configuration of its PCs fast and simple You might begin the discussion of Dell Computer Company by asking: Why do they operate in this fashion? What is their mission?�You might begin the discussion of Dell Computer Company by asking: Why do they operate in this fashion? What is their mission?�

10. 10 Outline GLOBAL COMPANY PROFILE: DELL COMPUTER CO. FOUR PROCESS STRATEGIES PROCESS ANALYSIS AND DESIGN SERVICE PROCESS DESIGN SELECTION OF EQUIPMENT AND TECHNOLOGY PRODUCTION TECHNOLOGY TECHNOLOGY IN SERVICES PROCESS REENGINEERING ENVIRONMENTALLY FRIENDLY PROCESSES

11. 11 Fit of Process, Volume, and Variety It may be most useful to begin discussion of this slide with the repetitive process since most students 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 usually poor choices.It may be most useful to begin discussion of this slide with the repetitive process since most students 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 usually poor choices.

12. 12 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 This slide can be used to introduce the concept of trade-off in process design.This slide can be used to introduce the concept of trade-off in process design.

13. 13 Types of Process Strategies 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.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.

14. 14 Process-Focused Strategy You can use this slide to introduce a discussion of process-focused strategy. Examples are suggested in the following slide or may be requested of students. You can use this slide to introduce a discussion of process-focused strategy. Examples are suggested in the following slide or may be requested of students.

15. 15 Process Focus It is probably most useful to introduce process focused production systems by example.It is probably most useful to introduce process focused production systems by example.

16. 16 Process-Focused Strategy Examples

17. 17 Process Focused Strategy - Pros & Cons Advantages Greater product flexibility More general purpose equipment Lower initial capital investment Disadvantages High variable costs More highly trained personnel More difficult production planning & control Low equipment utilization (5% to 25%) Select one of the examples you have presented of process-focused strategy, and ask students to identify the sources of advantage and disadvantage.Select one of the examples you have presented of process-focused strategy, and ask students to identify the sources of advantage and disadvantage.

18. 18 Job Shop Process at Standard Register The most important point illustrated by this slide is that process design entails both material flow and information flow.The most important point illustrated by this slide is that process design entails both material flow and information flow.

19. 19 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 You can use this slide to begin your discussion of repetitive strategies; the next suggests additional characteristics; the slide following that, some examples.You can use this slide to begin your discussion of repetitive strategies; the next suggests additional characteristics; the slide following that, some examples.

20. 20 Repetitive Focus

21. 21 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

22. 22 Repetitive-Focused Strategy - Examples At this point, you might compare in more detail, McDonalds (which uses a batch system) with Wendy�s (which, at least at high volumes, perhaps more closely resembles a simple assembly line).At this point, you might compare in more detail, McDonalds (which uses a batch system) with Wendy�s (which, at least at high volumes, perhaps more closely resembles a simple assembly line).

23. 23 Flow Diagram Showing the Production Process for Harley Davidson, York, PA.

24. 24 Product-Focused Strategy You can use this slide to begin a discussion of product-focused strategy. The following slide outlines some advantages/disadvantages of this approach.You can use this slide to begin a discussion of product-focused strategy. The following slide outlines some advantages/disadvantages of this approach.

25. 25 Product Focus As before, it is probably most useful to introduce product focused production systems by example.As before, it is probably most useful to introduce product focused production systems by example.

26. 26 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

27. 27 Product-Focused Examples Some examples of products produced using a product-focused strategy.Some examples of products produced using a product-focused strategy.

28. 28 Flow Diagram Showing the Steelmaking Process at NUCOR

29. 29 Mass Customization Using technology and imagination to rapidly mass-produce products that cater to sundry unique customer desires. Under mass customization the three process models become so flexible that distinctions between them blur, making variety and volume issues less significant. Once students understand what mass customization is, they should be asked to consider whether such an approach will move from an �option� at present, to a �necessity� in the future.Once students understand what mass customization is, they should be asked to consider whether such an approach will move from an �option� at present, to a �necessity� in the future.

30. 30 Mass Customization - More Choices Than even

31. 31 Process Strategies

32. 32 A Comparison (1)





37. 37 Process Continuum Another slide which may be used to summarize differences between the process strategies.Another slide which may be used to summarize differences between the process strategies.

38. 38 Questions for Process Analysis and Design Is the process designed to achieve competitive advantage in terms of differentiation, response, or low cost? Does the process eliminate steps that do not add value? Does the process maximize customer value as perceived by the customer? Will the process win orders? You might use this slide to frame a discussion on process evaluation. Once you have discussed the questions posed on the slide, you might ask students to suggest additional questions or �tests� by which one might evaluate the �quality� of a process.You might use this slide to frame a discussion on process evaluation. Once you have discussed the questions posed on the slide, you might ask students to suggest additional questions or �tests� by which one might evaluate the �quality� of a process.

39. 39 Crossover Charts


41. 41 Tools for Process Design Flow Diagrams � A drawing used to analyze movement of people or material Process Charts � Charts using symbols to analyze the movement of people or material. Time-Function/Process Mapping � A flow diagram but with time added on the horizontal axis. This slide introduces tools for process design. While examples of flow diagrams and process charts have arisen earlier in the presentation, they are repeated in the next two slides.This slide introduces tools for process design. While examples of flow diagrams and process charts have arisen earlier in the presentation, they are repeated in the next two slides.

42. 42 Production Process Flow Diagram The most important point illustrated by this slide is that process design entails both material flow and information flow.The most important point illustrated by this slide is that process design entails both material flow and information flow.

43. 43 Time Function Map(Baseline) It is probably useful to walk students through both the content and structure of this diagram.It is probably useful to walk students through both the content and structure of this diagram.

44. 44 Time Function Map(Target) It is probably useful to walk students through both the content and structure of this diagram.It is probably useful to walk students through both the content and structure of this diagram.

45. 45 Process Chart Example You can use this slide as an example of a process chart, use it to guide students in developing their own charts for some common activity.You can use this slide as an example of a process chart, use it to guide students in developing their own charts for some common activity.

46. 46 Process Chart � Hamburger Assembly


48. 48 Customer Interaction and Process Strategy This slide can be used to introduce the design of service processes, or to frame a discussion of the impact of customer interaction on the design of process in general. Here it is probably useful to ask that students define the nature of the customer interaction represented in each quadrant, and identify ways in which the process must be modified in light of these interactions.This slide can be used to introduce the design of service processes, or to frame a discussion of the impact of customer interaction on the design of process in general. Here it is probably useful to ask that students define the nature of the customer interaction represented in each quadrant, and identify ways in which the process must be modified in light of these interactions.

49. 49 Techniques for Improving Service Productivity Separation Self-service Postponement Focus Structure service so customers must go where service is offered Self-service so customers examine, compare and evaluate at their own pace Customizing at delivery Restricting the offerings Students should be asked to suggest examples of companies/products employing the techniques listed on this and the next two slides.Students should be asked to suggest examples of companies/products employing the techniques listed on this and the next two slides.

50. 50 Techniques for Improving Service Productivity - Continued Modules Automation Scheduling Training Modular selection of service. Modular production Separating services that lend themselves to automation Precise personnel scheduling Clarifying the service options Explaining problems Improving employee flexibility

51. 51 More Opportunities to Improve Service Processes Layout Human Resources Technology Ask students to suggest at least one example of the use of each of these approaches.Ask students to suggest at least one example of the use of each of these approaches.


53. 53 Areas of Technology Machine technology Automatic identification systems (AIS) Process control Vision system Robot Automated storage and retrieval systems (ASRS) Flexible manufacturing systems (FMS) Computer-integrated manufacturing (CIM)

54. 54 Machine Technology Increased precision Increased productivity Increased flexibility Decreased pollution Decreased size Decreased power requirements

55. 55 Automatic Identification Systems (AIS) A system for transforming data into electronic form, for example, bar codes Improved data acquisition Increased scope of process automation

56. 56 Process Control The use of information technology to control a physical process Increased process stability Increased process precision Real-time provision of information for process evaluation Multi-mode information presentation

57. 57 Vision Systems Using video cameras and computer technology in inspection roles Particular aid to inspection Consistently accurate Never bored Modest cost Superior to individuals performing the same tasks

58. 58 Robots A flexible machine with the ability to hold, move, or grab items. It functions through electronic impulses that activate motors and switches Perform monotonous, or dangerous tasks, or those requiring significant strength or endurance Enhanced consistency, accuracy, speed strength, power when substituted for human effort

59. 59 Automated Storage and Retrieval Systems (ASRS) Computer-controlled warehouses that provide for the automatic placement of parts into and from designated places within the warehouse Automated placement and withdrawal of parts and products Particularly useful in inventory and test areas of manufacturing firms

60. 60 Automated Guided Vehicle (AGV) Electronically guided and controlled cart used to move materials

61. 61 Flexible Manufacturing Systems (FMS) A system using an automated work cell controlled by electronic signals from a common centralized computer facility Computer controls both the workstation and the material handling equipment Computer control enhance flexibility Can economically produce low volume at high quality Reduced costs of changeover and low utilization Stringent communication requirement between components within it

62. 62 Computer Integrated Manufacturing (CIM) A manufacturing system in which CAD, FMS, inventory control, warehousing, and shipping are integrated Extension of flexible manufacturing systems Backwards to engineering and inventory control Forward into warehousing and shipping Can also include financial and customer service areas Reducing the distinction between low-volume/high-variety, and high-volume/low-variety production Heavy reliance on information technology

63. 63 Computer Integrated Manufacturing


65. 65 Technology in Services

66. 66 Technology in Services - Continued


68. 68 Process Reengineering The fundamental rethinking and radical redesign of business processes to bring about dramatic improvements in performance Relies on reevaluating the purpose of the process and questioning both the purpose and the underlying assumptions Requires reexamination of the basic process and its objectives Focuses on activities that cross boundaries This slide merits discussion. While Process Reengineering has the potential to significantly improve both efficiency and effectiveness of an organization�s processes, its actual implementation often results in failure. Some of the points to be made: - process reengineering, if successful, will result in significant change in process, responsibilities, patterns of communication, and other organization staples. - process reengineering cannot be implemented top down - the workers actually performing the process should be the ones to redesign it. - process reengineering requires that fundamental questions (e.g., �Why are we doing this?� and �Why are we doing this this way?�) must be asked and answered.This slide merits discussion. While Process Reengineering has the potential to significantly improve both efficiency and effectiveness of an organization�s processes, its actual implementation often results in failure. Some of the points to be made: - process reengineering, if successful, will result in significant change in process, responsibilities, patterns of communication, and other organization staples. - process reengineering cannot be implemented top down - the workers actually performing the process should be the ones to redesign it. - process reengineering requires that fundamental questions (e.g., �Why are we doing this?� and �Why are we doing this this way?�) must be asked and answered.


70. 70 Showing Sensitivity to the Environment Make products recyclable Use recycled materials Use less harmful ingredients Use light components Use less energy Use less materials While this slide may be used simply as a reminder that one can design a process while remaining sensitive to the environment - it should be given additional emphasis. Students should be asked to identify companies or products that emphasize environmentally sound practices, and discuss how these practices impact their process design strategies.While this slide may be used simply as a reminder that one can design a process while remaining sensitive to the environment - it should be given additional emphasis. Students should be asked to identify companies or products that emphasize environmentally sound practices, and discuss how these practices impact their process design strategies.

Process Selection and Technology Management Lecturer Nopadol Rompho 26th September 2003

Process Selection and Technology Management Lecturer Nopadol Rompho 26th September 2003

Presentation Transcript

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