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PROCESS SELECTION

PROCESS SELECTION. Chapter 4. Outline. Process Selection Service Process Design Choice of Technology Process-Flow Analysis. Process Selection. Product-Flow Characteristics Classification by Type of Customer Order Process Selection Decisions Product-Process Strategy Mass-customization

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PROCESS SELECTION

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  1. PROCESS SELECTION Chapter 4

  2. Outline • Process Selection • Service Process Design • Choice of Technology • Process-Flow Analysis

  3. Process Selection • Product-Flow Characteristics • Classification by Type of Customer Order • Process Selection Decisions • Product-Process Strategy • Mass-customization • Cross Functional Decision Making

  4. Product-Flow Characteristics • Types of Product Flow • Line Flow • Batch Flow • Project Flow • Characteristics of Flows (see Table 4.1)

  5. Line Flow WS 1 WS 2 WS 3 WS Task or work station Product flow

  6. Batch Flow WS 2 WS 4 WS 3 WS 1 WS 5 WS Product flows Task or work station

  7. Project Flow 2 4 Start End 1 3 Task Task or activity Precedence relationship

  8. Classification by Type of Customer Order • Make to Stock (MTS) • Make to Order (MTO)

  9. Make to Stock (MTS) • Advantages • Disadvantage • Key performance measures • Information flow (see Figure 4.4)

  10. Make to Order (MTO) • Advantages • Disadvantage • Key performance measures • Information flow (see Figure 4.4)

  11. MTS and MTO Comparison

  12. Information-flow Comparison Make-to-Stock (Figure 4-4)

  13. Information-flow Comparison Make-to-Order (Figure 4-4)

  14. Process Selection Decisions • Process characteristics matrix • Factors affecting process choice

  15. Process Characteristics Matrix(Table 4.3)

  16. Factors Affecting Process Choice • Market conditions and competition • Capital requirements • Labor supply and cost • Management skills • Materials supply and cost • State of technology

  17. Product-Process Strategy • Product-Process Matrix (see Figure 4-5) • Product Life Cycle (PLC) stages • Process Life Cycle stages • Modified Product-Process Matrix (see Figure 4-6) • Cross functional decision making and product-process strategy

  18. Product Life Cycle Stages • Low volume-low standardization, one of a kind • Multiple products, low volume • Few major products, higher volume • High volume-high standardization, commodity product

  19. Process Life Cycle Stages • Jumbled flow (job shop) • Disconnected line flow (batch) • Connected line flow (assembly line) • Continuous flow

  20. I Jumbled flow (job shop) II Disconnected line flow (batch) III Connected line flow (assembly line) IV Continuous flow PRODUCT-PROCESS MATRIX (Figure 4.5) PRODUCT STRUCTURE (Product Life Cycle) I Low volume-low standardization, one of a kind II Multiple products, low volume III Few major products higher volume III High volume-high standardization, commodity products NONE Commercial Printer Heavy Equipment Automobile assembly PROCESS STRUCTURE (Process Life Cycle) NONE Sugar Refinery

  21. MODIFIED PRODUCT-PROCESS MATRIX(Figure 4.6) PRODUCT STRUCTURE (Product Life Cycle) I Low volume-low standardization, one of a kind II Multiple products, low volume III Few major products higher volume III High volume-high standardization, commodity products I Jumbled flow (job shop) NONE Commercial printer II Disconnected line flow (batch) Heavy Equipment III Connected line flow (assembly line) Automobile assembly NONE PROCESS STRUCTURE (Process Life Cycle) IV Continuous flow Sugar Refinery

  22. Mass Customization • Definition • Economies of scale • Economies of scope • Mass customization of service • Modular production • Postponement

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