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LESSON 3: PROCESS DESIGN
THE PROCESS DESIGN AS A SOURCE OF COMPETITIVE
ADVANTAGES
The objective of a process strategy is to build a production process that meets customer requirements and product speci 9 ications within cost and other managerial constraints. Process Development: Every thing that we do in the company need to have de ambition con making money, having a competitive advantage. How to produce a product or provide a service that meets or exceeds customer requirements and meets cost and managerial goals. Apart from what to make the 9 irst thing we need to have in mind is the quality.nWe have and expectation before beginning the process, but there is also perception, what we need to look forward as a company is that perception (how the client see us) exceeds expectation. Has long term effects on: ef 9 iciency and production 9 lexibility and costs and quality. Process types refers to different categories of operations con 9 igurations. Physical layout describes the actual placement of people or machines that take part in the transformation process. So process choice and physical layout are closely linked. Each process is associated with a particular combination of volume and variety. The process used, will be helpful to use larger machines or more specialized workers.
DIFFERENT PROCESS TYPES: PROCESS STRATEGIES
- ProjectProcess
- Job Process
- Batch Process
- Line Process
- ContinuousProcess
PROJECT
JOB-SHOP
BATCH
LINE
CONTINUOUS
Customisation d e g r e e / variety Volume
Project process
‣ Unique / low-volume product and high variety output ‣ Large production cycle ‣ Huge (size) inputs. Must be transported to the production place. ‣ The output remain still in the place: the consultants are often required to go where the work is. So, they work around the client. ‣ Important the coordination between different activities. ‣ Highly 9 lexible and mobile staff are required ‣ Eg: highways, airplanes, bridges, 9 light simulators.
Jobs Process
‣ Small quantities of a single product are processed at the a time. ‣ High variety ‣ Organized in job-shops ‣ In each job-shop we can group the machines, equipment, tools and employees to do a speci 9 ic function. (Eg: painting, packaging, assembly...) ‣ Could be traditional craft manufacturing (speci 9 ic furniture): (small sizes, simple technology) ‣ Eg. A freelance graphic designer or an haute-couture industry.
Batch Process
‣ Products or services are produced in groups of similar outputs ‣ Higher volume and lower variety than in jobbing ‣ Low automation ‣ Choose different volume ‣ Low volume batch production will be similar to job process ‣ High volumen barch production will ressemble a line process. ‣ Eg: wine producers, furniture manufacture
Difference between jobbing and batch
Jobbing printer would copy a small quantity of notes for a lecture programme, with no doubt that the work won’t be repeated.
- So set-up cost low
- Unit costs high Batch printing would become appropriate where the same lecture programme was being tun many times.
- Set-up costs higher than for jobbing.
- Unit costs lower
Line Process
‣ Greater volume ‣ Products and services highly standardized ‣ Little variation ‣ High investment in technology ‣ Advanced technology ‣ Assembly chain ‣ Low 9 lexibility ‣ Disadvantage: for 1 product, as if they change the product it is dif 9 icult to use the existing line. ‣ Eg: cars, tv, computers, fast food service.
There is another classi 9 ication of processes or another focus:
- PROCESS FOCUS : similar to PROJECT, JOBBING AND BATCH
- REPETITIVE FOCUS: similar to LINE
- PRODUCT FOCUS : smilar to CONTINUOUS
- MASS CUSTOMIZATION
Process Focus
‣ Facilities are organized around speci 9 ic activities or processes ‣ General purpose equipment and skilled personnel ‣ High degree of product 9 lexibility ‣ Typically high costs and low equipment utilization ‣ Product 9 lows may vary considerably making planning and scheduling a challenge
Repetitive Focus
‣Facilities often organized as assembly lines ‣Characterized by modules with parts and assemblies made previously ‣Modules may be combined for many output options ‣Less 9 lexibility than process-focused facilities but more ef 9 icient
Product Focus
‣ Facilities are organized by product ‣ High volume but low variety of products ‣ Long, continuous production runs enable ef 9 icient processes ‣ Typically high 9 ixed cost but low variable cost u Generally less skilled labor
Mass
Customisation
‣The rapid, low-cost production of goods and service to satisfy increasingly unique customer desires ‣Combines the 9 lexibility of a process focus with the ef 9 iciency of a product focus
Changing processes
‣ Dif 9 icult and expensive ‣ May mean starting over ‣ Process strategy determines transformation strategy for an extended period ‣ Important to get it right PRODUCTION TECHNOLOGY Advantages: increases precision, increased productivity. Increased 9 lexibility, improves environmental impact, reduced changeover time, decreased size and reduced power requirement.
Automatic Identification System (AISs)
‣ Improved data acquisition ‣ Reduced data entry errors ‣ Increased speed ‣ Increased scope of process automation
Process Control
‣ Real-time monitoring and control of processes ‣ Sensors collect data ‣ Devices read data on periodic basis ‣ Measurements translated into digital signals then sent to a computer ‣ Computer programs analyze the data
