Tài liệu tiếng Anh session 1 chapter 3 Seveloping a process strategy

Tài liệu tiếng Anh session 1 chapter 3 Seveloping a process strategy, dành cho cao học.

Developing a Process Strategy

Chapter 3

03 -01

What is Process Strategy?

Process Strategy

The pattern of

decisions made in

managing processes,

so that the processes

will achieve their

competitive priorities.

Supply Chain Processes

Process Description Process Description

Service

Business Function Processes

Process Strategy

• Principles of process strategy

1 Make choices that fit the situation and that make sense

together, that have a close strategic fit

2 Individual processes are the building blocks that eventually create the firm’s whole supply chain

3 Management must pay particular attention to the interfaces between processes

• There are four basic process decisions

1 Process structure including layout

2 Customer involvement

3 Resource flexibility

4 Capital intensity

Process Strategy Decisions

Customer Contact in Services

DIMENSIONS OF CUSTOMER CONTACT IN SERVICE PROCESSES

Contact intensity Active, visible Passive, out of sight

Process Structure in Services

Customer Contact

Customization

Process Divergence

Flexible Flow

Service Customer-Contact Matrix

 Production and inventory strategies

include make-to-order, assemble-to-order, and make-to-stock

Process Structure in Manufacturing

Process Structure in Manufacturing

Production and Inventory Strategies

• Layout - The physical arrangement of human

and capital resources

• Operation - A group of resources performing

all or part of one or more processes

• Layout involves three basic steps

1 Gather information

2 Develop a block plan

3 Design a detailed layout

• Develop a Block Plan

• Use a Closeness Matrix

• Euclidian distance is the straight-line

distance between two possible points

• Rectilinear distance measures the distance

between two possible points with a series

of 90-degree turns

B A

B A

Example 3.1

Develop an acceptable block plan for the Office of Budget Management that locates departments with the greatest interaction as close to each other as possible.

Example 3.1

Excel Solver evaluation

of solution

Application 3.2

Matthews and Novak Design Company has been asked to design the layout for a newly constructed office building of one of its clients The closeness matrix showing the daily trips between its six department offices is given below.

Departments Trips between Departments

Pair

Closeness Factor

Pair

Closeness Factor

evaluate it in terms of the load-distance score.

Customer Involvement

• Possible Disadvantages

• Can be disruptive

• Managing timing and volume can be challenging

• Quality measurement can be difficult

• Requires interpersonal skills

• Layouts may have to be revised

• Multiple locations may be necessary

Customer Involvement

• Possible Advantages

• Increased net value to the customer

• Can mean better quality, faster delivery, greater flexibility, and lower cost

• May reduce product, shipping, and inventory costs

• May help coordinate across the supply chain

• Processes may be revised to accommodate the

customers’ role

BBC is deciding whether to weld bicycle frames manually or to

purchase a welding robot If welded manually, investment costs for equipment are only $10,000 The per-unit cost of manually

welding a bicycle frame is $50.00 per frame On the other hand, a robot capable of performing the same work costs $400,000 Robot operating costs including support labor are $20.00 per frame.

At what volume would BBC be indifferent to these alternative

methods?

Welded manually

(Make) Welded by robot (Buy) Fixed costs $10,000 $400,000 Variable costs $50 $20

= $10,000 – $400,000

$20 – $50 = 13,000 frames

Strategic Fit

• The process chosen should reflect the

desired competitive priorities

• The process structure has a major impact

on customer involvement, resource

flexibility, and capital intensity

Decision Patterns for Service

Processes

Link of Competitive Priorities to

Manufacturing Strategies

Decision Patterns for Manufacturing

Processes

Gaining Focus

• Operations can be focused by process

segments when competitive priorities differ

• Plants within plants (PWPs) are different

operations under the same roof

• Service can be focused in much the same way

• Focused factories can be created by splitting

a large plant into several smaller plants

dedicated to narrower product lines

Strategies for Change

• Process reengineering is the fundamental

rethinking and radical redesign of a process to improve performance

• Can be successful but it is not simple or easy

• The people who are involved with the process

each day are the best source of ideas on how

to improve it

• Process improvement is the systematic study

of activities and flows of a process to find

ways to improve it

Solved Problem 1

A defense contractor is evaluating its machine shop’s current layout The figure below shows the current layout and the table shows the closeness matrix for the facility measured as the number of trips per day between department pairs Safety and health regulations

require departments E and F to remain at their current locations.

a Use trial and error to find a better layout

b How much better is your layout than the current layout in

terms of the wd score? Use rectilinear distance.

Trips Between Departments

Solved Problem 1

a In addition to keeping departments E and F at their current locations, a good plan would locate the following department pairs close to each other: A and E, C and F, A and B, and C and E

The below figure was worked out by trial and error and satisfies all these requirements

•Start by placing E and F at their current locations

•Then, because C must be as close as possible to both E and F, put C between them

Place A below E, and B next to A

•All of the heavy traffic concerns have now been accommodated.

Trips Between Departments

current plan to 67 for the revised plan, a 27 percent reduction.

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END