PART 1 Managing Proces PROCESS STRATEGY AND ANALYSIS LEARNING OBJECTIVES A‘tor reading this chapter, you shouldbe able to: 21 Understand the process stucureinsavees and how 24 Oiscuse how proces dciions shoud sategical ‘to poston a sarvice proces onthe custamer-contat togeter ea 25 compare al cotras he to comsny ued sategles 22 Understand the process steturein mansfacturing for chango, ani undastandasytomatic way anaee shaw to poston e manufacturing proces on the and inproveprocoses. product recess mai 26 biscus howto dafine measure, and analy processes 23 Explain tho sor proces statogy cisions antic eee eres 21 Ldenily he commonly used approaches fr lucy improving and controling processes, CVS Pharmacy Po hy 28 pamy B) on ue neta \S Pharmacy isthe largest pharmacy chain in tho United States, with over 9,600 locations and 2016 revenues exceeding USS160 bilion. (Owned by CVS Health, t was originally opened as the Consumer Value Store (CVS) in Lowel, Massachusetts, in 1963. By 2002, CVS had bbocome one of America’s largest rotall drugstores. While it sells a wide” MANAGING Processes ‘assortment of merchandise including cosmetic products, greeting cards, and ‘eonveniance foods among others, ovor two-thirds offs revenue is generated by the pharmacies, CVS also operates 1,100 MinuteClnic medical oiies and Diabetes Care Centers, which are staffed by nurse practitioners and physician assistants specializing in farily healthcare. In response to the pandomic crisis in 2020, CVS Health partnered with the state of New York and also ramped tp its testing capacity across the United States ta nearly 1.8 millon COVID-19 tests per month, Despite a rapid growth and expansion in business, customer satistaction in ‘the pharmacies was decining because of increasing Service failures in its order fulfilment process. This was an important issue because it increased the waiting time for customers and stressed employees working atthe pickup stations. CVS. deployed » taskforce team to identify the root causes behind the poor service and develop a set of process improvornont stratogios. The team found out ‘that because they were not tracking the rll mits in the infrrnation system, ceustomors would not find out whether they would get their efils unt thet ‘ext pickup visit. In addition, the drug utilization reviow systom-—which alerts potential threats arising from using the wrong drug or overarescinton and halts the order fulfilment based on the patient's medication records and possible drug interactions that might take placo-—did not function flawlessly While pharmacists ‘were capable of resolving 90 percent of these prablem cases through a folowup review, the remaining 10 percent ofthe alerts required contacting a doctor, which ‘would delay the prescription fulfillment. The automated insurance checking systom also caused probloms. When customers changod their insurers or jobs, orf there were typos in the script, the employee woukl have to contact the customer, insure, oF sometimes even the dactor to very the information, (CVS would stil fil the prescription even when the insurance issue had not been resolvad; however, the customer hac to pay ful price atthe time of pickup. In addition to process fallures and congestions within the store, there were also ‘other factors that led to frustration at the customers’ end, For examle, patients living with complex nesses such as rheumatoid arthritis often faced difficulties in getting ther medications via in-store visits. Walking into the store was not pleasant experience for these patients, and to make matters worse, the pharmacy often didnot have the required specialty drugs in storage. ‘At a thorough assessment, CVS implemented a number of changes 10 ‘the existing process. Issues with the existing in-store ordar fulfilment process sere eddrezcod by reorgonizing procoas flows. For example, CVE moved the data entry process tothe begining of order dropoff to make sure that al the infomation is acquired while the customer is still present. Next, CVS bundled all {quality related processes together into 8 quality assurance step to ensure that the pharmacists focused on the customers’ safety and getting the correct drug at the right dosage into the packaging. This step aso incuded the drug utilization reviews CVS algo implamented visualization technology to enhance visibility of ‘the current orders and pending asks. An online "virtual queue" allowed workers at the pharmacy station to prioritize their work and focus their efforts on tasks that were congesting the waiting line, Finally, CVS launched an iniative called “Specialty Connect" to provide simpler ordering end delivery options to specialty‘drug customers. rough this program, customers can place orders online to skip the line, or hive madications delivered by mail, Patents could also consult 2 centralized groupof clinical and insuranee experts for assistance, Implementing these procoss changes was not an ensy task. CVS had to present the results ofthe task force team study, including inteviows, analyses, ‘observations, and videos, tothe pharmacy supervisors to persuade them to _edopt the recommendations. Diffusion of best practices relied an a network of jphatmaey Supervsors who would travel around their distets and initiate improvement projets. Asa result, the customer satisfaction on waiting times improved and theoveral satisfaction was greatly onhanced. This improvement in ‘customer satisfaction resulted in ineroased pharmacy contributions to revenue and decreasod customer complaints. Aso, since its launch, Specialty Connect has served approximately 75,000 pationts, with 97 percent reporting saistaction with the program, Understanding and improving their ove customer lacing service processes paid big dividends for CVS." Jn Chaptor 1, ve tun hoe Heme sot ae by propery liga i pean tog the cpl pins copes at hy ens aye in Par fhe bok factor nay neal proce th inline desig th tabs fhe, proces Gp "Proc Steg and Asay), mesure | ae iy roca uty (Cher 3 “ual and Pttormanc’) tnd he si st cat an rte naa aa (ope Pep ca precast 3 ramps Panning. a ayarnaie to ome {Chto Pret Magen as Trecho onan’ povde smth of ae dae sno pry th es wert ged pect oust. No serine pon PORES AS ‘nao pret ean te made wit pesos no proces en st what toon ioe tet veo pout Ben wih eed and vate ape» eno gun compan vse ‘antag ul rosy cons mucha ate tate ewe sain elms one apr ty shout fern compan cpettive ga In aing pcs dec. ee stan con rin tc com ioe pire oe ont, oe are ‘Arexoplified by CW Huron ae " ‘ont iam ngoing ay, wil he sane eine ‘neon rene lee applying to bth Tisttime nd redesign [|r tan nt choi are weal att feral ule once ten ans Suvles, ators, ark lows and meds that Mala Reese eon nn Transform inputs fate opt Another chin Is tl tingoro Wht proces ae oe done imho nd which pang Teton sy fo Bota ‘een oni . in This chaplr, we fas on proce iraagy, ‘which specie the Yat of dacs oaiiaTely aie ‘angi that the process el eee fchlove thei compeitive pontine Despont oes analysis hi he doruanttion sn Seta appeal |} ‘ote desta of ho work prone ‘SA FReAB. tau Sa Ingremno CS." Har os Seal 200} Ce “308 Cro Hs al Opening Sea etl Sere Parmar a Case Cor fos Servs 04356 Shs CS Reps eM Sly coe Ne {a0 pen sipelia cgi Phas Aap 220,a rroune 21 1 dsr ee nes recs site ‘pos pe ti Aiokst enc me, osu sept two, a a ‘hunts ayaa ‘ets mamponont peas pant resis mo tne vam Towa niches eso ptt esa ott te paeon esos Hoy Tees ath theres soqipmt en fa wie ‘ae pe apo, ‘i ats. ceil oty Te ct qm nt an soir an how tc be resigned. Process de Sone diwalyalfoe tho process ell int thn savin th pot hat [wovides Al pa of a npanaton af ll {sexton supple ni ctsonorn across the supply chains tb tvotved to ensue {hat process ae provi the met va fo {hein ad eal eto Process satay guides val of po ‘a desis, and afar ued by open ions aesegy and the orpatons ably terhtain the rxourem necesiy To support ‘hem. We ign by dling our ase prose ‘chins: 1 oes stacey, (2) cutee involvement, (3) rexnen flit. nd (heap Iniopalty, We aces thos dor "ofr seve and manag ro ‘ros. We py pater alten to ways {ohlch ths deistons gt, depend tn facia mich a eompaits pais, ct rer conta and lune, wih na ead toto change akg raat ‘modifying pense) pots regio Inga (2) procs iprovenent ol these ppraactos nod prone sala to teats ‘a implement ange Thos principles cron pcos ta ay are patently npr 4. The key to aoensfl proces devsions ie to mako choices tha ith station andl that ‘hake soe tga. They should not work at sen poss thse roca opti fal the expan of eer proses. A mae offactive procs son ht maces kay press ‘hearts ale sone stot 2 Allough this section oft text frases on individ proases. thay the blding blacks ‘hat eventually rate The e's whol supply cain. Tho cumulative eflet on customer ‘atsatian and compel anlage ie {3 Whuthr processes in th supply ean as performed tll or by outside supplies and ‘sem, mangos ey pla tation oh intrest processes Doan wth these nrtass underzaresthe need for rss fantom cardiaten, ‘Whether dealing ith procs fr fics srven provdos ae malate, opeaions sages mad contr fur moron proce disione, Pigare 24 ar a yal tipo {ant ope tower an etfetve proc! dangn. Those fur ecatone aren dso tthe oor suprocos rel rar an a th firm evel ‘Pract sructere deers the proces ype reali tho kinds of esos ead how ‘sources prion ewes her anti y chara ages te pal ‘rrongament t operations (or Sopartcns rele To ach ether. 1 Castomernvaboment rofl the ways in which stoners been at fhe paces. Tieantont of patton. 1 Resour xt shew with which employees nd eupment can han wide ery of recs ontp ves des and ona ‘Capital intensity ithe sof enipmet an human kil in poces. The ree the cost TEqaipment eaves cod oer, th tra cal ay “The concepts thal we dovelp around these for decisions ela a funewark ethin ‘whieh wo ran addres the appropriate proces rig in ovry stato, We etalish the is of choi thal eaten god it Betwenn the four dessins. Presa yes wal. Trough 1 munufectving ality shore malariae ow smal fom ene worst othe ‘nt hich wa wil define later ots fine procs, you sould be ted to conc tst tprecssey shouldbe ine processes. Thoy seen a6 eiient an oan However con ‘ting to ine process would be « ig stake I ohumos ar ow ar the produts made ‘ro cntonnand: Resour nel bo noe flexible to handle varity af pooducs in wuch a ‘uation. The result is more dirganied appearance with abe crowing in many dit ferent iretions depending ote prt ing ae. Daspte apenas, thls pro th best choi,PROCESS STRATEGY AND ANALYSIS Process Structure in Services | ‘One oft fet delsion a nig hs in desgning vel acting proceso chon rons yp tat ns achieves th competve priorities for at proces, Sts for dosing Procss en be qultediferan, dending om what serves ing prow ors ree Fatt nafctaed. Webegin we seve procs, given ee haps patio or ork reruns vse count ‘pros aly hl pte caster a and at of f-foadrstanea ‘be he igh proc strata fr ive sar ota spp oni mtn thee oi ym perc ‘ble malate with the roca A ond procs ata for msn ona Jopnts a nd Toramoston tho type and noun estan ental Customer entat the tnt to whi Heel nee ask tho custo prose ely volved, advo psn tention ding ‘sp acy, Prowse Face focoilration,somcimnclleda monent thot serie cout ngs, ME pe ae res sn pnp cen tsetse ‘one of estome contac. Ms jouieca ach of TABLE 21 | DMESIONS OF CUSTOMER CONTAGY ML ume pare oe pes a have ow SEIVIGE PROCESSES rts au hee ihc pig Tag ata | te Customer-Contact Matrix Picanes |oson ——_| ot ‘hocustomencona ti shown in gu 2.2 rings other gpd | Rage | sis al ‘hea laments: (1 th agro of ase eon (2 estos - tion and (procs charts. Tho mae he stating Chit sey | en vete | se, ato at oar vita ier we arate [Rod [ad Guiomar Coma ond Canmiaton Tn dawson Li aa Ps poi i hoe tcl estonia Se Spr igh ctr ona an ily noon nos Tne moe 0 ‘eprom and atv. The procs sor tly obo ible ot estomer,who ones mas sana ttnton. Tho ight sido of ho matixropesents oe ester canta pasivo vole. Fontes pasonaad tonto, anda procs vt ofthe customers ig Process Divegorce and Flow ‘Tho vatical dimuon of tha caster ntact mae dels ith Iwocharictristieso the proces ll () pros veges nd 2) Now Hach proces at be alone thas tw dimensions | t nune 22 forse eres os ins need onroses dence lagen ot ‘om ses ‘Stas promt ete tow ceo ores ‘ton creo ‘cass, an, ese ny feo atin ote as, evan dom ‘Aes i ih sone frets saver ‘oes ety Init fs oro ‘ace lr ith kot Agro oan Strto Proce divergoe the went whe th proces ie highly curonéeed wih eosiderable lait sw how is tsk ae peo the proves changes with ech ust, wrtally ory performance th servers uique. Examples of highly dive sie roses where ‘ony sip inthe change with ach stom se fon ensign, sacha. [Nscrien with lw deogece, in contrat eropeltive und andar hwo yo ‘cnty the sno witha eoniomers on! th tobe Tes comple Carn tel serene telephone ste are highly stand to ensne ual ‘hen dnc cs tho work Hand tee. A exe Noe ane ‘hath inter mtr nfrton ses diveae ways, wih ptt oe caren ‘jb en cscs th pal thal hoa ane aes aoa lo tally ppd Pt, va hugh he fist ges so of disorgnan amble foms Seh a pears ies nalualy es hgh rcs dvengrac. A He Ror mens ln he crest Infaanati owes ney fom ane peraton to he rat rz ose sq he ley ae al the prac standard fine Noe ar a atl Eo Service Process Structuring age. shnes cer ceil oso ne eax ht scl conser mvc oduct ‘eh he rsx meget tho rate, whi a etn, chs fom (i fm en yb ion wd br fen iio ths room nb {entre roost rho oo ean pions ot ‘Stayton oot tntig ua vg int Gre Pig) Such oe tenn oprent oo mach fa dnc teen i evi prvi and on chara Frou Offee fenton recs ha high cstoner cnt whore th saves provide inte fete dry with heir or tora str sauna af the customization of Un seven ‘tnd vary of serie options many ofthe again it ave couaiderabledvepancs, Werk ows ‘rolex and thy vary from ane stomach ea, he ihre vic pees a {os adaptd or trod Yo sel euston, Wybid Ofce A hyn tion ends ob in the mid oft fv dimonsone in Tle 2.1, Prhaps hiph on some contact maura low oor. A yeillen pce car ‘to Tovels of ctatmer contact ant sadard servic, wth sone options walle fea wih th estos chooses Tha work Ne progres rm in ett ha ext on ‘onan pts appar Back Office A buck-offiee procs ha ow canter conte and Ile sricn customization ardzad and voution wil line lus ern ene rice pore the nt wl ltd. Preparing monthly leat fice reponse nell se ‘xs aduty fag example te lw extomer contort lowe diverge, a ive No. Process Structure in Manufacturing ‘Many processes ata manta fem ‘octal sees ntl ar extra tists ands the vious dca. ‘on eervio apn fo them, Saal, ‘anltring presen ‘Ses ean ice and mamufacuring process, Wo no drat view on prs srcite Product-Process Matrix "Te pret pcs ms (igure 23) {ming tate telat (volo, {G) pret eatin, and) process haractrsties. I syeouzs th prod ‘Aired onaibntiicrseserers wth acambaihartone Tispecwssoreshinien | ue to be namafcied withthe manta stone cn, uo Recon ae ess an ace et alg oe, ‘pra ano, ae as. ng pov isl “Ad sae or 9 manutatring, roca pends fest ahd lremost 08solu, Guslomer coma primary flue ‘isto! x fronvonsrelly na "nsideration for manag proceso (laugh {tien factor forthe many ses prcsaes vol ‘wanufetring inns). For many ae pro ‘so high prone easton mee lower a. Stns for yo th tps he proms. The ete Anonsion of tho prduet-yovtrs matrix dels with {he ame te character th exonmrcontal ‘ats: process divrgane and fv Each mam ‘ctring procs ahotid be analyz on thos two Tarpon Te rrupetietie Reescniee rink ewe cmc incon bey] amemennnat eet ues cn nda ve o a a © aime | taifepater.ststotemasaa ine | Feuer pote | Hho oh . ‘woo et Shree | say cone > | : =~ enna “Job Process A jb process creates he tatbiity ‘eed to produ ie ity of prods ‘least quantities, eth eonalerble Svan thst preformed, Cstonzation shige vl time foray one rod eo. Th workin and tauipment aro Mexbl oi considerable task ‘lorpence. Companies hosing proce oe ‘dr work Typically ey mals wots toondr find do ot prac them abe of tne Ese ee ‘de hao git tha i 82h, Shenae mci sew eating so (Getter a eo clr atts Wil a jab pres ail qulpment and workers capable of eran typos of work are positioned Jol hav aden seqaanc of stp this pres "hoion rns lexble ows though the petons rather than ine Ho ‘Apbstpnsubxig ba, wiburkstndae mate tag pes | Batch Process Thatch procs iy athe moet eo css ‘Aer in te ty ‘aside ty {tps heat a, Uunanibrbl dope spon, tate pss Iepnoressesptt ota and qi, ie process ‘eter andeotms fon crise ‘ees gh and oas ‘esa eh ages pi ed Para roa onion pcos Toten doth te sins esa feof upon ‘ing ogy ‘ovate sin rer stato Ast at te ‘es pes at Sone a tan cag a iat tages pian (gn ns beats oe common proces chole fend in pace, ang {ome such a smal etch or kage Daf ha ther distinguish one proces cole rom snather Abate proce itary rom the job proce with rnp vel arya uy, Tas Patmnrydifrene att wouton ae higher cts he sume or sinlas reac paling Into then ar produced vented, Sno Unaconsponents gong a tena proc ay be os navn. Producto lol ronal i ager ior athe) han ate fi jb rocase ball fan pod fr component pa gin io pexbaps ober rad tls procased a thes proton switch tothe nox on. only th fs pols [duced ain. Asch proces saver or moat vole, ht proces dv agence tl tet Lo errant eating spare proce fr mach produc. he proses fla exe, Inter dant paths mags thn at ob process, a some santo he procs have lin aw samples oft ros waning stadt components ht fod aeebly Tine some proctno thal man taure capital eipmen Line Process, Le pros is exwwen tho etch and continuous poze onthe coutiouun slumes ar high and produits rsa, which allows sours a be orp rod fig: zon sin ho prs ie ws ad i eng id tenth rosin stp Fath tap etfs he srs roca ovr md ones ile ‘erably inthe woduce natu: Mogren and metal hing euprenie peal Tae Potuciereved bya line proce inclade the ane of omnplat suemoto op tens, and oy Sundatd oducts are produc in avance of thir nol and lin inventory 0 that hey ‘rund wn aso place an order. Prot vrey spss by afl conto he ‘ili of standard tons othe main pro Continuous Fow Frocoss A continous pres et exten of hgh volun san ardzad production wth ig lin foes Pros civic eligi ae dri ah ‘he way mites move thongh he prosess. Ua, one rman sei auch gu, {por pura] moves witha topping tog the process. A conthous-fse poss ry trons a line proce none portant espera tyre crt) foe ‘hgh the procs thot stoping unt the whole ate leashed. Th ine pan be ‘eer sy orn ara unt amp ction ce ae cho Production and Inventory Stratogios Sages for mansftingproceaes ii fo hog n sav ot nly case fa ener ‘onc and involvament tsb beat ft sity ton avers ota paras ‘aril tals nto form ef subst iso produrte Ass len Chapa thao ar clnty econ lo hele, Avis ha an vena of outst ron ane Ped has sentry ot roan parte Disignto oer tor ase oo, ot ake oc statis aor appears over Ht sho ead ih pom hoe Designto-OrderSuatogy rn us desig torr stategy whan ita din oe pres {tt donot earnty est. and then mance tn to mea uni nso poccalons Typically jl precens x wployed to erent highly exntoond ro,sch dige po shoo or scalar liaMateo QiderSatagy Manus thal als pds to some speciictonn low vl Aes endo wae ho maker seta, coping wih ob or sal atch roca ve ‘How ti prot sb ons sna ig isa nos empl pron on asin ‘final pad tom stndad components Thitsinays providers igh Seger of xtomiation rapa es ob rsa bth roosts The possns hav igh degen ‘dial pment cantngs, and expensive ham re it the makers ae. Assomble-a-OrerStategy The asenbot-rder strategy approach to pocing aie ‘rly of cso eatvly ew sissonblins and components ari ensome orders tered Typ eons penis ae vey an ast dle is Th seo edo state’ ollen valves ine proces for assembly and a Balch pcos for hilo. Heenor hey ev dovted to menacing andar components da eubasbnie i bigh ‘ls the aseation provers four rating popes nmnts of compen eat Fe fort aaembiy profes Once espe er fom he esta ecaved sa fa fissiee poe ‘Stocking inserts would i economically prohibitive bees the numerous pa ‘thin options make orsnsting rately inact Thus, he pineple 9 post ‘pple, whereby th Moa activites inthe provision of prot are dled wat uced Th snl andr stata ss nk tomas castanzaton, he ‘high iv isnt proces gnorale ide vary of customized products at rarontly Tow ents. Both Mako-to Stock Statgy Manat fsns dat hl ams in tek fo ima deliv Ursby minting etomer dlieuy line, use 4 mak-tostck strat Thi stay fe ‘le for tarda prduets with high volun and easly cent Tarts the ventory tao of ces or ln or continu ow oases Examples yrds produced ‘eth a sakatostock stata Sela garden tools leone componos sal dts, ad ‘Conbining alice procs wit the ke iatock ily tomas clad ese pon, us wha he popular prss commonly envisionsas the csc manufacturing proces, baa th environment Is stable and pace with workers epeting mmol dein sks ih Tow verge, mss estization ae everod moro fall Chapt 12, Supply Chal Layout Sect proces srt forthe various paca housed in lity i strate decison, tut mua be flowed by x more aca daiion-~ezeating a lay. & dou ete piel ‘rgaent of operations (or dapartnent) eve rom he aioe paceman pth tang fn For nnzatlonal purpose protested ob str gtr to operations ‘tdepartnanis. An portion group of buat and cal ese perorng alo pat of ‘ne a mors proses ar example an operat eu bo sve catomer serves rpm Alms in customer ercplion ae group acne and workers prodigal phone ‘aking departs apres hee procs ae groped ger ognlatoelyany of ibemncnt ets doparimental mendes Tals oe dpetonal ws could be infer tonal eevice or prt Pecaestractres tht eet a foe exon depen ins ‘via ort proces ee the st challenging lyon preeme Supple Layo Providers orn depth nays howto gathrnteraton and deep tate aot pats Process Strategy Decisions ving covered prove eee rion bat vie tn eamactrng ratnn {Sorel ana no to lisse ogy delon chowe Pls Castner nvelvenant sora exit, deal ines Customer Involvement Customer faolwement alls th way a which esters osm pt ofthe proces and the ‘stent fae ptlpation. asp npn for nny sevice procs, area toro cota so shud be) gh Possible Advantages The advantage of a more castomer faced process might incense the ‘et sal oth tomar Some cater eck sve prtiaton ad conta ve te ser ‘ie procs, ater thoy wl ejoy ving sth pcan nT ana oe ‘ara whther nfvantgonoutelghdinvantpe, jung thom is tre the compete Doritos and eastomorelstin More aster ivolvent ext ea bate quay. ter ate ato ‘Astin ey antares thio pis ene “seein tore, sree oe sates ‘cyt ret a ‘sey pei on ‘ava somes ant nto ‘i any yet rh 3 faut eaosae Tea tang al host recess pale Siena asenes reco sey ot ae tock steny ‘stat ati ety ‘aha, ty mn tse coe es ss rot ee sae pres Hates he eo ack say.eoy,goatr Mest, and ova to fervca ithe chokes of mny rota ach gol ‘Sans, suport, and bu eves Moncey ‘ot products (auch as toy, Heyes, and flr a fs poe to Tt th custome pf thea ase ‘iy tense pdt shipping, and inventory ents antl are lower. Ua Ta IRA Furuta Camps Cite el ited om cao rg troy Invaled int procs ‘Gastomor involvement can sla help coordinate soa the sippy hain (vo Chapter 18, “Supply Chan Intgaton. nrg tadnologis all eopnio o ‘gage non ctv dllogue with stoners ad make ‘hom patter tn erating value and Tecate (cveze0bbe ct Ogh fens Dons Go taste ‘ilabraon th proceso veloping eile ad yoy Bs Sm, an i. ov no lngt ptiva proteome wal ecm Th net foe detonate decent jun date Peter Gamble’ pode Iss daly sland nad wk th Protar Gate eager awning pare Possible Disadvantages Cason involve isnot alwys geod ide, la som ass, ving lteter mare sete cone in anv eos el ut be dep, aking he pret leslie Nog ha ning nod vlome of castor denn ca se lang {The castomar tr pyialy present snd expe prop delivery Expt he ais st ‘tnployees tothe cater ean Inve npn quay pleats (avorae or unterbl) ‘Sud chaager make itorperanal sss prresite tothe series provider’ oy thigh skillovels carat east also might ren having any sao canal facts coset tethovoriowe customer cncantaton are ifthe ctomer comes oth eve providers Resource Flexibility sine nani pale meget srt ba ome conta when whiny venue ixvlrem tec seat eo ‘ons mat they acount for pocsceAvengance and diverse procs lows when Making ‘cubic mens esque Mebilty denon Figure 2. Foresampe high tak divergence and ah poste ‘recto amy, foe ero mona lesb oft proces rosouteas employer, a, and ompinon ‘ies omnes” Enployees ned to ptfonn a roa ano of dats, wud sq ust be pea purpose 3:oymoten we Otherwise resoaren lation lb a Ta or canmieepaatons, ee biel ‘Operations managors must cide vehothor ove a axle workfre, Manes nine Hesource fa exile workfory wv capa o doing any tasks, la atl own wort ety Torn oM str ‘nove fom ono workstaton tomar. Hever. such Moxy etn cones at st reg Kinoeemssto is Get sl sd hus more aig and education. Nevertheless, belts can be lg: Work Feat can to ono he best way to achieve ah castamor eric nd levi eapcly Telenechs Resource Resi hee Yass he feat nine eels nada pera alte ease low ole polation, ‘Toca tess esis oe tl scaling, Bist of worthnes rejetrel to dope ‘he need Yor valuma flesibiity. When conditiont allo fora smoot, steady rato of output to Tkly ‘hole ia prmanent workoroe that expect role fulltime employment. If ho process ubjat to lemand thew of pti a temporary employees {ermpleceat «eller core of fillies employee ‘ys aba slate Haro ha Sr ‘ol be practi! if Eseleige and el rues ret high fr anor orker a pas ely lemon Line abies ums thal proce isgaees shold chet flnble, goneraleerpons uipment igure 2.4 asteto thir relations {by showing he total coe lines for ton diferent yo erred tha con Bl coowners ome Hach li represents the foal annual cot of ‘a oa st sense ay elisa | the proces at ferent volume lvls the sum Se NI caNdue ea cearena oe ‘1 od costs and vaibla costs (se Supple, = Decision Mig’) Won volutes at haccusaminkion i high, prom eh ie i al or Lions gumbo eben nhc ops eta tMorulpment and moka (2) mle ae at coats ic grotto et ins lat ep sop Frc nto not kn ‘Convers, procs the ar cuter wn volumes oi stealer tasivageiioe veiblewh sates 2 his, high fe eats. When anual vans Hooonghesprening ines fsederntscrermorouniis | | rivenlgg of fow vera xcs waren compe LT a to fri high Hea ots ‘spear tHe total costs fr th equal At quantities beyond "sp het fy nto procs 2 sks he es expo sal or than the rekon ih igh eslomiaation and Te velo, he cpt invesionnt of proces 2 inal warened smtoation Capital Intensity cp al eg oat Capita intent the ox of equipment and burn arate sili te proces tha goto sca of eqs Feltve tat cto abr, tho rotor the expt lst. As the capabilites of teciology Incense elite ons dere, snaagor fa an evra ange of cies, fra operations tang wey tle timation to those rogting task-specie sql ‘nail man tert. Amin rors on peo of equpmcot tal self ting ad ringing, Although ssomaion i oles thot torn nocsany to gin competes adensage, ae both adeenages und disadvantage, Ths the to tion deison tgs cart exaninaton Automating Manufacturing Processes Subaiating sng ep eget al toa aoe foley a poring poy a lt eolsty in ualactringpecees ns hier rn rer we volume Ie high, bauer moe entiation fp men "ua volume Gilat reap, spent 720 rion nthe cin nes an os to a apa {iytomole 12Uilon ran edgy, The ip ‘me icampicatd and expensive Only with i high ‘us cl is ins poss pecs ie pect elo enough that eons cul flo I lg ednentnge felt batho ir hvenlanen el a le veure operations ive 2-41 Gonrally. capita ana oper ‘ns mit have high ization ob esi: Ase, titomation ve nt ay align wth 3 compas petitive pct. fm fers int pro te highly sven mpaiie patos may lowers pose i e's supp chal th fecage and toe the roar caved catomlzea Ts paging for fire eons of ho word ‘eltnes forty one type of ecags ae mck lover DBearsut ofthe low volumes Gilets dacs not uae AFL tonal ative sb aot by eh ‘xpmnsivertomtion forthe process nou | tx iy a pg an gn ges emoetcy, Tsalos Sotrees tbo I produces iar ears tostock.wsing | campy opt oe mae iy an pes, nae Highly automate procises and than packages thom | pyogablsgmdesina a ‘uta fashion at one ln on demand. =Awan os at ote oo eat fe pratin Amaury ees a si cargoes veo is etnies sp ccna rt iy ‘opal peas nonce osu mn, sont ‘Manulncrors wi wo typ of aomaton: 1) Ral an (2) axeully appropriation conto flow press choles ae a fe typ of pao ru in x sence fsnple operations: Opentions anaes favor {iced titaton shen dal voles are igh prot dain wee a prt ia ‘elas te any The eoliions compensate fo the pres’ two ray drawback ng ‘sl eves nt and ex Hira ation nas ‘bncy a ils the lest wniable cot pri fe te gh lexis (or programmable) alomation cn be changel uly to bale vio pros The alt toroprogrm mache ef for bath Iowan high-cstmiation press {hen of high eutomtztion nouns ha snakes veil f pence wal ce ot In progeannned io lterat vee product, Wha saline bmn daca lo ptenar rodeo nyo eat ncaa lla csomization a inland te rr FBatiho nd af ts Horvath machine cau simply be eproqremned wile eho a luna fore new prod AN indus old which fn voballocompotr-conroled iene {llr” workers opm dapat af man consol A robs it sp tos saad ‘novemente The rats “hae ean be Ting seably, edt Machine ring a wt niga elle lee saeco to oar fom olmarved ales, wel scouning al soting a gots in detecting rods defce ond abusive cto or va unin alone season, lexi for roam maton predens Aston Seve Passes Using ali lasing dian pri ‘res pcs. n weston! sea, fo example onde essing tly noe pices ren rrr its Uodianal samedi eareigen iy weee isn sets a xa ideo fat gol ht go withthe rin, Justin cage ot oo cot eduction, Saini at actal let re ask diverge making soo ‘ide en of eles ot eso ea ls ia quality by beng more enon "Tho need fr value oly expecsive automation is ss vl mtv proms at for manulctring proceso Iniasing the lume lero eat por doar fe. Vol ‘ssa for any capil nase posses the trmeporaton eommanicatos, and wil icine Economies of Scope aptly high, resoren oii wily ln otal yes ‘of manuetuzing operations ach ae machining and neambly program sutton beaks Thi intserlatop ern rset and captains aks posse bth high capital ints ani high some eit cally oeononto sco, Heol ‘let the ailty to rence multiple rokas nore cheaply i combina a seas tn ‘ch suatons, two cnflltingoampetive eee -entamant ew scence re ie. Howova, aking vag products have enough callective volun oul eqlpmet ly: Athos ember ‘tecope ie adlive nanatrig, whch ees otters (3) printing eect ‘ows ans otto dar tari’ of demand ion! ering odional ea. Changes in ‘lelgn or add complexity dus fo catoniand custo scenton cn bo tnecrprta by ‘Nip tein Ue AB ble of he pedo Simpy by eon sock ave merlin ‘apabitian at deat I Chapt Using ‘Operations to Create Val” fie at able to ‘thlowe sani anon of wage Economie of spe apply to sevio po cossoe Coser, for explo, Disney, hose ‘manages used tho Inara ep he bento ‘condinos of sonpe, Tiny aggressively inkod ‘het ran wine ain ih “ ac oy ‘enemy series tga en ep sive than handling cach ens spay parti. In hen th mart ar ot voi Strategic Fit The manager should undestand bow the owe alr proces dain ts oes st pat ‘ea of previngpenl deg pees. The Sais should tthe atuaton and each aio. ‘he the fino tats the proce ell be ane stngey seo. onanysanyces heh | mee ofl. We examine services an! mane fneturing process, looking for ways To tat or strateDocision Patterns for Service Processes, Aft spaying proces ad deteriningie poston theca contact man Figure ‘tty be upp that iis nope posoned ele too fr ote lo gh to fr 6 tho toy or hats, Opportunities fr mprocenet bceme appre saps, are esto. on aid chatomarean’ shen an the procs exert provides, Pras. fase the Joes divert wth nnacssrly exe ws Reducing diverge gh roca Et ep pct he proves suid wallet i dso compete priorities, Prot fics gery exp size to quality and eso, wre bck fis are mre Hy to emphasis lowest ‘ecatonseoistont ql and abe lv. Th procs stctre selec then pots the ‘tnt appropriate nits ox eastonerhwatonea reset Mex, ant capitalist. Tigh eulome conte lfc svi oes nan 1 pos: ety aed, a 1. Proceer Stretoe. ‘Th ensone (ikea a esi proces oe os nore ikl tobeece 2. Castner Involvement Wen customer ont igh eon ht th proces sre rete for ec esto ung 8 fesoce Flas igh poems divergence and esi process fos ft with moe fx {ity from ho process eonrers-—aeworaa,fae, and equ, Gupta iensiy. When eolume i Wigher, lotion and capt Sntnsly are more Tiel: Eventhough higher ve oval assuned in tebe ff, sus a ty {or int fat oti for incl seviem. Tforastion tachnology is «major ype of ‘ivfonutian at many sarvew processes, ehh brings togeler both tasource HexD find uatamation (ours ist proves gnoral onder than gl precios. Exons can tw fun bt thes lationship provides aya detain hove serie prs cons ‘hub ink eon Decision Patterns for Manufacturing Processes. Js sarven process cam bo repositioned in the estore contact mats « manulataring ‘process cal snowed fn the proscprocss ras Changes can he mad ether In the Torizontal direction of Figur 2.3 by changing the digs of evtomization al volume, o Hey he moved inthe verti diction by chnging proces vernon. Compeitive pies ‘tua be cansered shes tenlatingsaogy Ino ape ‘ic mantacsing process: Figure 23 ah0ws wotm Capea tes ‘tra andro lund np fb nd sl ch se | petite | ea ty otis in aan Meni are give primary emphasis: Large ch, = Tad contone foe procs match ap wih at mplasison law-cost opentions, consent quality, | Uikeal gaan aaa ‘in dtvery speed. ‘sy noe oe The production and inventory sategy should leo be chosen to be consistant withthe compote gts ah Ree a Prices emphesid: Av shown tn Figo 25, the {sign oder strlegy i consistent wih top quality, cae ‘atomization and arty. Tho focus san ments Samm ‘mig ci cms pal ding, | wank aaa) ] ‘vara of pire rein the customer see ae factions Ts mokotrardr sate mother ph foxy (pmratary cstonenten} and To - iy toamedalvery pool bmoo aca, soci, (aaa “nin Alder nd nse delivery gah mpi on ts {in divonsion. The atmo seg alos ‘sis ety pia at) — be shies tho makoso-stck sag tte Site fates ea ‘oomplnst Respingenir instock ensues uid = Avery conse peel enable hea ee e ‘et igen poring Hh lame pep or {pportunto trae eat ‘ona ed Tha proc srr srt ncn agin pte ray toappropatechotco on customer insert, Ua Pon tS y FIGURE 25 ‘ahah alg, |p ea |surety, nd eal ney ih values erp a ‘manufacturing process typically mean: mn 1 amr th olson wi an Ibosute lo specie easter ener ' nto trent Cot inlvnn c oae i mst ‘rubetetig rein Seas Cae math en nce anil i hi em” fae doe " metyewens 2. fhesoes Pi: Wn rks ehh sod poo dirgce ‘ior fy pot note talon eee ok *poctlzation con lato moe ele grove 4. Gopitat Inti igh voles ay he lrg sent an chet oper Gaining Focu a he pat now servis or poets ton yore ae to lity inthe ‘one atitrcng iad cots and Keon everyting unr hese Foot Tho esi was junble of eanpeltive prot, pcs ste, Sint ecnofogls- nthe effet to do ween, nothing was dn ell. ‘Aprons hat ans toate lo os nd ellen shoul ot be mer tela proces tht ves tof Hebe andl lag prot vat, oc sane chong ome oh ctr but nal boi sllnecay Inte ‘ay Focus by Process Sogmonts_ fh operations olen ean bo nither hac nesta design for cn slo compat rie ad te tc chaie AU serves fai, some pt the poss might a aces Fest tos aos en ag. ihe jit scsi tose tonne! | et ke ont fice nother part ik each oc. Such arenes ‘ray aul te aporstenses ros) | Ga be ef, provid at ucla cin aio och re ‘usc oityngrentin ts | ean sting hin spat rns he Fewest nhs, | 2 Plans within plants (ws) ao dren opratins witha tity winnie cape pnts, procenes,and woes under the sino root Boundaries for PUWPs may he esa by pselly an win aise) spain subunit simpy eis patina ltonhps At sac PP ceoizaton, Die grees ty tl infonety volume, thd lhe eanatip eerste I cmpiomentary, Ts ‘ahi campo is, reese ass ‘ns tags of PPS er nerf range, gene aly aly on on blo sa, td shorelines of mmnkcation tte departs ltt x Moan Palc 24 Fond Corperstion is opts PW fae satya highly steal Conca lat ut, chr sveral suppor: prods pate under hsm roa tho gal nla Plants-Within-a-Plant at Ford Gamacari Ford Motor Company go sana c ‘one tna nui eta sino tnt en ba vu, Oo ite ery ms. i tala Siemens tl co ee Doe, etre valent ee aN TIONS Sees ein tre bolas omnie & carne ent cheondmnrsataielh MA acinient nds) annonce oy became ‘gee emmy caren ania Ste ctw mee ae seatos arte melon nis Goes et ei soa cepa ae pa oa maemo tt rocimaion una bred Sins snr ow ot on fs ed Soichemlaaret cette) SS wp ote ics Co formance eter rataenctccenaia aS conprat mp eee loot on ae Seomeiieinn Decale emet OL oat ale at a pacanpe ht esto ot Saute ty eam mesa wa pg ta a a teat seb cen earths dient et ptset oe ies Go ne] ta up Sori htaros coud rnc badtest akan use pan er oc aan aap | Semactonsrtnaasitinarcne' | Swmaxmoemsunaineatenotenastet Moc Carga ssety work sso ne $e mes a ceaosa eens Dat ‘ei oon iho et i eon tok tie desc nate po, Aowh so sls ae neresprble re tral ase, sme cay at aly eck meses end ‘etoonafese or ems plats Ts asia ep sis at ‘elon create pis aa pees: d tite ‘pay ed eas hap eae a "hc Cana ie ie la he ‘ote ir es rely 800 saa, nag os. ‘ae ie my a hay eel we mr hey ‘roo 90 ten page. sce vain pagan nrc eatshaes sey noes an aes cae abot at ptm shin Ut ng US. als he ‘to eens sy el a pce ass, a econo an 2 ays as oes, al. esimvostent By Sus a, Fa aa re ml spe ot tote tec fe ae ode eae hy gd tet pa ‘paola oa sg Tels eu fro pe ‘eg na ory eee er esa ‘ly Wane panama stp ovat areas dvb qe coe vcr mn so a bert oar al pj Fes wey fog: ces ans ana passin soo Fa ‘anh ted eth i res ‘ap oppeasontins nes eases notre. Tv es oy ag te en snp 9 etapa aa, aoe eek yn ne erage Say opis ay a we e's Se, ok ea forts spe Oessan magenta lage re 2 er en ents, ie ee ape of a te pe vagy oxen csyestn lacy ak Tyee thease Ory anol emia meg ogy ces plies i oo a Fay ness nee ae or ls any Woe ‘ah sitos ones a te i We mea as ea Imuoveman are ik Kirt bo eon wi ce rt. aay we Fad ache 9 ‘tal, god pentose al hse sper lnc nt Concrete es nae Fen natie eta he Cana ta argo hau BoP crap can ces tej asl es ay anata sey ne oon ty tines tis eae pony a pian ee Fucus Seve Operations Service ndusieals pena the conc of focus and PP Specialty raion opened store ith sal, ure scale spaces, These focused aces teal chipped say the hiner of lg deerme store: Using he sun plulsopby, Enne depart stor now fa on sprite osromars or product Remodeled stars cele hot of ny sl utes wd on oot Fecusod FataiesHowot-Parknra Rostov, Jp’ Rico and Mitsui, a Beans Tinea Chase lado PLC so son tho Bre tha rtd feast, spt lang planeta produced al tha company’ roduc ino several spocaiznd smaller plats "he theory tha raring tang of dora ona ity il I obser prormanee Ucn magento ca ccna eros Id workore teed» sng gl ert fe iy ‘ifs ons ate ones passa Strategies for Change The four nj procs dcvons prs oad sateen dine nate of ho pe ‘ono ood compete eet owner, cists tha ee made aa be elt {iowa preredaigu or odasg, Tw ao diferent it complementary plane foxpro dig aa eng (2) poss wangivening a 2 press improvomert. oes ‘alysis seppared by tho tol dscibed ne, s nod vos of wher romping br proces provement attempted ida ru who am examines he proces and Teak tor aystasieomline tke whole procs ly ct esi ater Sars iprose the envronmenor make ese Hy eomebonsively analy he procs, nem th ays Yo in ee deel pre sone salsacton, "Sc Win, Po et a: Bei Cm a al rh Pe, Ze era Ae [Bo Sao, "Osan of Tsk ond oto as tne en Aaa a Dl lms rom} pater (0,emg Tht eg ate kg pe mao ota dats Intemsofost aay svc. pe recess nee hogs stuf ase ean heel eh cet mgr Reengineering isthe fandatona thing ard acl sgn of roc to pve pero ‘nan dramatically n tr ent qty, serio, and spo oes -negheting she ‘einention saler than nceaental improvement Ie ston made aa ot shy de Sraorcaafl Pann te fon offs nl Ta hts or vein in nero teciolgy almost aay accompanies mnasve chang, Hovrever sngieing procera Tee hig pals Talo ate eBay laments ofthe overall appro ‘TLE 22 | KEY ELEMENTS OF REENGINEERING ‘lewent =| terpon Cedgroases | hear ease tut ncn orbs sees. Noma pS nro antes cbt ea poe ‘pleco | Sui omer au pm eng tod remakes be exon hori, cncon ssanos vo i Wal bok} a ae se re ed chs ‘esos | Aan tg omens an och can we ail ye pan do ‘sata cma aeons Sl rata Monon eee easter ao eo tr dyer. omen? | nwa ney a nay our a oes ght Hogg rp ds pars ong Wena osc casera lie ‘havaeutibany | Raphsoty oye an tsy—talb, a th ey he esr rsh cago one oi an, ms hia andtn canr apes Rees, Fowssaus |g edn stn. ening emt td re a coe ss wal Pro perms aa a afl. at bat kate eed nee hears Eagan, cae and will entinusto dos, Hote, ot snp opi forall proces al rpintions The bot undead ‘ta process, and hott nprove olen es ih te poole who perk he wrk each day hol wih ess funtion one lop mage Process Improvement rocss npravment isthe stone oth iv a of ene {they stotoes the membre meta th pon nd diet hs dale Gace a twoetsisrealy dss ican be rove. Tho ones prsmie oprovid ater ler pie tht compan mt eotinaly oval spe of he ope ‘rcs tmprenenet geo or ns pat gona ter ‘we. Mant prion at spre wongan ink of «yan ipernity. Ins companies wl er np roca a the changing ness fener or cms fo Shin Loma acess cae a ager and employers th realy dean shots. ‘eb ut alo often, highly publica erat se tier quis solutions a ine {pt expecitions oor te log al be hey pregame fr conclu bsinoas Vln, ducing cle transforma eanpaigso ovidng farsi ani. ‘sth flan Massel Challenge iste, analyzing an Inpro acess ro al ton cron aol endo cso cre ht ing ane sang, td acon l Tampon, ne. 2 packagny prodets manvtactvng company wih dvs opaatons oer ‘eo dwn cours setae ature the gabe. Ag wom stoning packer a mas, so custonoestha dosgn andi oetine et ephn cle mung ackgethe pets. Trees ondirnetng tet Tamoeton ps en ly daeop doe ct aorips by tahng aa cyleaperaas oth eb rd pa fs pecs, Ths pposch eure uso ha Temioionwtsavceorreparayets rectines wef tha econo hesitation, Wan packagr machines rant rp ora agar ann fo tee raat ah,hich han anges forthe ope moc oe et Tepes nara don epost Ter rocersing tse ores The cy, tran el degrose ote ro, wer ee rrelkntorng ase rssh lent a ono. The cepa ha saad tuner ne 25 conc deo les fr ting Wess custome rece Lucy Slr hee rein craving a sb feng Packaging Frode tvison res he steady rexeasng customs conan aout epae overs bang dyed ard afin Proccton. A qk check ved thal mr hn 65% of i errs ve he past qtr he bean thay bey 25 dys, ih 35% of ees tl at beng ied tor 2 mora, Armes by those tales, Ly shred hs etomerdata th Feer Jonon, Wo pan manager oe ep ey ‘gine ine Unto Sates, wich Rade a au quote wei. Thay aged oath parson th ln th abv Mor ey dri Ly he potas al ha mag 0 mH, ‘eo sme Tos tg olwean her dapat ating hearer rues, aang To the dary oe mec rep, ae heal me Pots ty rcv sma. Mich of tho 25: ope was cored ys peocss. THs ps the epar process nan xpado mae mucho ha tne. The shop Ber Kot vas cuted with sve diferent cus ea ‘ders ong werked Yoon sneanouy al ery wostans. The stag aeafer tha shen xd machine esunbes wakes oy. Ly que reed tha 1 Wu aay and roe tho proces n er depariment anda he pln, ah would need 1 understand wa pane To 8 "pla! custard when econo tha sales department, when ad how tho or a he mlknetening modi ronstin oh a Int areh shop a, nowlon & aka 9 compte, ow tg ene sieping departs and wat ocurs theproctesng of th paparwer to-doee ct to order and gat tlre cot 10 he cat sl A races anaes ha et bee | ‘done at he Vig ast or wal over a cacada Tops cova anti this chap wil be hp toLuoy and Per asthe era pon hail! sysomaticaly exon th rep akg ‘nd compton process a Tampon nd ene agan matig tho cuslera save peices made by thls and matting tan Process Analysi Process analysis the dacanontaion and dtl understanding of how work te performed ‘and how be odosigned. Looking lhe stag asus ean ap Maly opportune for inmprovenant De gape eit blr roe’ copliv pies nd is caste cause “paisa ws foo for the aseneven of opraions satya uel ev eso {Ghapee "Using Operations to Crone Vale? Do ull measures cost, op quay. qual ‘onsen, clvry spre, an ona dliery mato exes exactions the 3 gd Strategie vin ha yobs? i the press provides mses, does positon on the casamer ‘Sint sari so gue 22 ss propriate? How dav the do of easter cata mate tart procemsetur, customer favlvemot,resouros Resi, snd capil toni? ie questions should ake abt mnnutacringprocesns roaring the steno ‘etn proce chine, ana end roa isto atin, rovers mls bon eh dealing and dll ow opportunity for improvement sl est implementing el ennalig avised poss and which Wo capture Cough the Six Sigma Proves Improvement Mel. Other approaches to pructssimprovemeat ary fsa procs contol und proms epsiiy way diced ni uy ad ‘verap by covering each achiq fx fen hie ining tthe sence ote spre ‘cover cach chapter, Th epee do have shared got Ber prea ‘hx Sigs Procas Inravament Model igor 2.0 shoes the Six Signa Proce Improvnent ‘Modal fvesep prot that nso mprowements xpress prtormane, Ths et {heappiel wo proj Involving incremental provements to proceso to poets equi ‘uj change tthading resign a wn exlting poo ore developmen ft nt proces “The allowing tps onsite the ha Define Th sop sad boundavis of the prone to be analy ae feels. tt tom prt hat sachs aeoes he who onan, iwolng many slp al any ‘ployee o sia or nrrvlybrackted tad bproen that is pat ne por EnTs[eh? A proce cope cn ito now or oo bot: Fr example, a roxy defined tht use the rere weal, Stes alle "tying bal the aa,” {loomed bose will incre onlays ftation without producing any rol y FIGURE 26 SS ea| roe is90 PANT? MANAGING PRoceSsES Plone wn a0 staan Egos tome asioes ‘ote as ‘Sonapopan an sp pt ie oa thane pee saat ngs sas ahs It tag ae Sion poms ent ale tr me cnt oes. Mat ck Futino xa ob sv ck ae Thoresoures het management tins to inproving a ngiarng proce shal ach to scope th procs, Once spe ellis, donne the heii oth pr ‘ants cu thd ae aria to cttone asiscon and igus ary gape btwn oe ‘haces and th proces’ eapblite. Cat pear otha cament prs by doc ‘ering sng acne eine hector i 1 Mensur simpetant to have god prlrnaes meaeues oa proces res ob Enya lepers lt Matin re jecortmnco nemres fro rove en oe ge ‘Nqood pact sta! rh compen pire, but they fo to esp Th ata rane tipo measures of gun, customer ston tne opi each toh ‘ce procs cs, eros sy, etionmenal oases ote dalivery ea ad tho ike Once tho mts ao Loto ts tie toca nara en hw te pos seat pertaining on econo. Mason a oh sao ae stn SHI portant to qt hee the poss de hat alles pop, Selet a eo ny dala soured peptone ‘Analyze. Uso the data on oasutes to perfor procs analysis detemine where itmprovemonts ze ees atl nays of Cho press df ptm the Salocted aries should nacover disconnects oe yups, between acta nn sited Petraes: Mg sing eseanss steps ean fate peforamnen gape. Tey ean le ened by mores ha enrol of eal depatnente when ih ne pas rss srr depron ha i po Find the rot ents of performance gape: Fc ining fo saying a si delays ean provide important inoraton [oon Suppement By “Waiting Lines" and ‘nln Supplement Ey "Simulation What or not jr radsign bet, sta ror to make he dei outcome on, ‘Improve. Using analytical an rete thnk, the design taam generates lng st of ‘ane for proven Ths ae ae Un sed a eld, Mita re ste ‘what Bnet outeigh esis, are alata fe nou pros design le mnt Peanancn ebjtives. The wow design sould be eamented "ae roponed" Combining {sw pecan sign wif the dammnenaian ef ho cnvol pec reeel et Iain ea ten Tho recesses dear vind proce ‘el ork cde pestanen expr rb vernix und. rp om Regen, {Congo Ate th splemeatatin, monitor the procs to make sit ht high performance Ieee are matinee gyn, tn aly tol ca bo an te ponte he poco Implensntatien sre than doveloping plan and ayn out Many roe hve boas ‘esgne flactvay, bat over gt uploanted Poplars charge "Wa ase uy fone tha way” Wo rod at foro Widespron! pata in pres nays tease, not ony rena of th work involved bt als baa bis comtont Tis mck castor to implement something that pay your own ie. nation petal ‘expats ay be aed sch as for devolopingsofvare New jobs andl be ode {involving ttning und lavestnents nn leglogy npletnttes ad cnt ngs {olathe stope neo toring the redesigned prose olin. Manapaoent or he scr, ‘nite mst make sure hat Ihe plomanaion projec gas scoring i sched ‘Suceosul uses ave found tht i essential ta sgoroaly follow the steps in th Six Sign inprovement Medal, which is smote ela ta a the CAN procs hee name i om sng the eat tra ech tin th dal) Toaesompieh oo gos Sx Si. ‘ployens must be tase ia the whys” and the “howe f poses ptrmanen adh Timea to custmers, bh ntral sil estar. Saco ems sng Si Sign dvelop ‘adr tonal echoes who thon se esponsible for taehing and at ons hvolved 8 ‘races impravement proc. Thee tahors hae leon ite depend on hl exparence ‘nd oval of achievement. Groen els dots pat of hal tno oth and pig ons ‘th ter projets snd thors of tr to ter moma ie Black Hae Title woches and ads fans iol a Sx Sign pojet il, Mast Black els ‘ofall ln onchrs who svi an nator "Black Ba” ‘Weave tle deopr int the is thse pases af Tue DMA pcos nest, wil lab tng othe prove and Contd pate in Caper Quality and Parone Defining, Measuring, and Analyzing the Process ‘in Si sgn Foc Impovonat Model str it Stn al undetning th {not sna extn pecs cn ft a red ms fyb topos td fi a ta Gao tnpove dob ond cote noel ‘Sigua st po Fon mater lint doing acdc roc fect (ahh nr! nao ara ase Tay asta ea atInside" o ste how an cuanization das ts work ‘Yas can sos how a pro opens, any Towel of dt nd how well is peraaiag Tsing to fret one of Una ight eve ea ck tay etaishel procs Hay aot be a pty ete. bt Ht fe how work ntualy gets done “oetnigne or deinng he proces lel homens to filing peiormane ape, generating io or recess inproverent, wl documenting the oak ‘ened proce, Flowcharts ‘flowchart traces the fe of information enon: ‘rs aqaipmen oF maton through hs euro ops of a procs, Mowehart are alzo Known at How dagrtns, prone maps rltlonship mae. oF ‘pr Fosse have no pol forma Iyplaly wo rao th boxes Goh det dasrp How af tha stop iste) cmd with ies and ances | ann siete twshow sequencing. The rectangle Ch sae tue ‘ol choi or ah allo ster sapas(0, GV, or an deere bean dire types of tps (og. opratin, dy. storage and ‘nepetio) Colvs al sing ex la eall tention to dillon yp of sp ach thse Ptelarly high proce evergance. Dirge eso commited seen a onl Externe ap opis ove or nore sr in led tin Lea, Alleghany ‘emanate rust be erat othe antineoe hy an b ‘er laysomrhore nthe ower andar decribed is acsmpanyng teste lo pt {communicate fer nfarmation, iter ror, costs serial) eng ack "You ca cielo owas wih sovoral programs eon PowerPoint ots many ferent fonnating choles fr lowes se the Flowchart ubmana ude Aha) Oterposera snfar plage far owcharing and drawing dagen sch as ranization chars and dei of reer Sinatra sar dae.con), eos Vso (reantost come! ‘so end Mlcopras oner erogeeco- rn dowalond aw aval a ch ts conta baie lovharis ca be xno for several lov inthe onpzation, For example state Ioel they eld sho eae pocaee sd Uae (an Pine a) Ati ve, the fioehara donot ve ach ltl weve, thy give aed ee ew of ave sine Jot dont core prc an hop neers chapter we fc te procs Iovn, wher we tino dts of thw process bing analy. Many stops ay ae sco nasted witht then. Ratha than rapresnting verything In ane Nowe, an overview fat the hte prods can fist bo cea. Stsequonly Howat an bo develop tes ot ‘lad procs Tis ning appronch ft bam rete! nore bose oly so mach htc be owe ny sng lhe Swi Lanp Flowekart One of the most comionly used forme of lowchatt Ist ‘Svim lane Hacer Ia visalseresrttion faa ros Gant sat vsjnal or ‘crt odppecenes tos levee 1 cal npepst-nan Ibe sins jen pa eer “rpartmont bounded cher paral es sar oles nase pool seperate ‘ach departmental aes Swns lane a ed according tothe cial groipe thy ropa an an beara ithe horizontally or verte “The sm lan Mowat nique 2 lutte tho ordrpicomont aa ceopance proces ‘ve manfag ompuny he proces starts hon an edt f gonoatd yt astra fds when anes actualy reject. md, approved by tho company nonstate ‘eth deste Al fxs cotati this roost ato cluded In the Howehar. The ‘oluune represent diferatdapertments or fntiona ras and th stops appear inthe dar ‘nl colt whore they ae perforased. hectare sas shoven ove th colin ead Inge Thespesia he fandom one depart! anther when the agg a {ebm a sop gust motor column: Special etic fre tvs ore eeu wey to ce baci Thm pnt whercromfenclanal ooninaion ia pcr ak he iam {ali Misindeeanndings bneblopy andere ae nore Maly a these pte igure 27 rates one ot fst. The dso tape) presenta ye/no decision or outeome, such athe sults of en inspocton or rwgniton of dferent kinds of estoner ‘olen nPgure 2, the dlanend ropes thee yesno deison points within Rae fl an ath wiles and opatons. Ts yesno dason olns mo mr ly to appear ‘oh process igh in dverene Ope esting ox Cardin anon ho wollen oma ‘seat Aaya at ce ttrtanay te, ue sas ah Inowsnis psa pos, vin no at ‘algo at os ‘anal as este ‘See spss nos {seo artnet ‘Seotnatianes92 PANT. MANAGING PROCESSES Sam Lr cat (oe Pos ‘Soaho nats an Cet serv pin Asp cto son cs at sti te haste ct $i lane lwcharts alow the process analyst nd managers to look at de hrzontal on ization rathor than the wet] crgnaton aM dapatnenal boundaries imped by yp ‘al engniatonal char, Svan lane warts sow how agusations produce oe oxpats ‘trough cros-tmcional work proceeer nall th ia fa ate theese neces tne fanctlons and departinents Service Blueprint service banpriat is a special owe of «seven procs tat shows ‘wich ope have hgh customer coat Iusara date lw of viii to enty which stops tne vile a th estoaar and hs ake mre rates proces) nd those hat eno Aone Ofc ily stow pc casera hy ‘Moqtaly capiure hn acvely ths castor i nea ox how mach pers tention Ie eq sree blurt cans elo shading on box shape, sono th is of Tis. to show the elant niyo of easton contac. Ateorappreh to seven mpg fetoag each tp ets auburn then havo at accompanying hat deere etal theese ata! For each naar stp. Tha fs no a night sy" 1 tele Heat easton veri Work Measurement Techniques Procss dfsiton would not be complate without estate of tho average tne wc sap the props woul ako, Tne stints ave noodd nt js for prac vena flor bt fr fnpety planing, constant manana, pecan appraisal, and sched, Haina tank ies ean bet apie as mage raed gues, eaiags Kaowledgei pron, o te Ingnote wile cerving the proces Mare xlensiesadio env cling at for soverl ‘vtela, anti cl wel daa cr choking dla cond inert ot Formal technique ately the fdgment sil abarves ow lo allah () dhe ‘ie study tho (2th sont tana dat tho) he pdt dn mtn, ‘nd (0 ork samping. A fh mt, awn ev anaes spat ppp Shen anu prt or procaine an th tn yor tnt pote sot J sa Tas The math eos dopends onthe purpose a th dla, proces ypu jt at ot ie), an does of product customization. A'wove com prohansive Wantnent af hese techniques Dovid in cui Supplement H, "Nesting Outpt Rats” ad online Supple "sea IngCrve Amt.”Time Staly Motbed Time study soe «tinea to perform four bse steps in sting Hine stand fora jb proce: 1) slecting he work lees (step fw owehart ep ct win tps oe tie (mig tle) domi th asi ‘om nd (4) setng th a stone i seni the avenge He obsess or onal effort and taking an allowann for bras unaeoeabi dla an h ik. The malt ‘aed tne spent on eth eloment oth prs Yn sted using sopra, ad eos the ine spnt on each elmet fr serrations. Tho analyst sss pefrinnen rating, fer sch coment to ut for noc ela Barve elements ny perform fat or lower thn nse he aon ude, The allowance expressed propartn or porcnt tthe eal ona lomoaal Standard Data Methow Another nto is sd when poets or sien ane ight eeomtr,jobprnsses poaad pron doengmco ge honontlstandad dala ieatdtchone of sted com pad bya fins ana for as enon tht heen de on ‘tei contain jb ate sir to thane in other os Sots, the tno ould fr 8 ‘ork loment depends vara eiecerits of he a, sc a thea of oa ob ‘oposite fora welling poco. Instr eases, an ton that rolts hae carats a That quired a stored inthe dab. Another method, such ane sy a pst nena must band compa th oa ina before the slows raed soe Mh da, Tine Sly of Wate sony Process ‘press a watch asoanbly pant has been charged The = ‘ie sided eo te work ere ive shits Oven Povrmod wh he flowing resus. Tho tr Start o- ‘re roan ais 5 res. ace nthe a re hy, ould a andl eis? “hen me study had an ial sample of fur sna wih the reals stan the losing lable. The padomarce rag feces chow fo oxch emote aut rr flr snd the ahowance lar te ol proces 18 pest of hs tal aman. ‘he | one? | abe | on woes | 200 | 236 | are | 296 aoe? | 49¢ | 478 [830 | 480 10.08 mio. ‘Tonornatino tran dmertin he bo is erage. phy tho RF. Tho tala tino or he wh process the ou ft rata ins Ieee demas, 10.015 minute “To galthe standard ine (So theres, at cd ino alowarce, oF S1-= 100151 +0418) th.2mntosvath Dretton Powe “hone toasserbie a vach appaar to have dette conisraby. However, baad on he pe con that manageent was, th ret doi to neeats Weslo ae blr alin a a Sunda One Soplaro H. Masser Oui ates” gives mare hloraton on dete to tern oa ters es testy yeoman tas ‘eng etodom)a pram farts igen sie straps “seen (roe posesog Ar no ass braudeonngte ‘ent, ana ese ‘Se aay toe Soot snd dala lose ned leapt ea ao Swern, Ieopesn pon a oossaniere sgt Wr soma aa say na eho LaDao lon no Sr, Suita,Ac eon eis Set dnc tat conte tra es te fl yf poole one, Secaretee ttm Pinas pert isin onan Tae phos mes at ee be higap epee tertile ceeti rk Sampling Method Work sampling stinaes the propastion of tne spent by pple or ‘oon ‘ahines fren actos, base onsets vandal ver ins esp of hast fies include working ot selene, dang pure, wn For stoi wok sang ‘alin nailer, orbeng ile Sch dlaca hs bi aod aes proses reli Aes estinisste 3M. etinate the allowances needed tat sandals oer work arene med fertility,‘ ts or proces iprovemant sts! whan he proceso ar hy verge ith Chacuseie eats lee Senn Pree 0 deel oged er cod senha cl sb two of ena Eten teatloncoenrs Mow ile tine of 1.81 porcont for the wook nn aso port that 237 mow observations eens ‘Senedd tg arhiov th confdency and poco lavels oli wih pt dato Uae ‘Selasons ane recha is explaned in alin Supplannt H, "Mest Gulp Has.” gu oa to (nm on oat ress Otzevaens | _ Renew AnOneeaton_| Pont oie es com ee Hee reece» IE Total shane vont 2 ‘Obcrvaton Paid Tinws Busy Tne tle Observations inna oberon 37 ee ee : , “FP aa 8 3D rota By 0 o A FiGURE28 isccuncaysijot ning Curve Analisis The tne estimation techni ost cove nso tht dh peas is ees igre fh retin cls bt rr en te ecto a a re ks ee ea Cs hc ea i ee nr a Vee nero ee socs yee sees carer an Ametcmmnurran rin rn emg inp ice i a et eee ae nari ese ieanemaiaael aorta unre eigenen tpi ng tt sobre pron Tein ats, wh ir it kin 10D howe onthe cama ang i or Mis 10 uns praca Tho lamin rt ce se enh cio tha it oa Th ae fsthosscnd unt: pce of ft (20.000 a0 ~ a. 000 hours th te thot ‘iB pron! fhe cad nt or 600 590 ~ 78,900 hors a on. nding th ie ata far unit hats notan osc doing Gh as tho hi) an als the cunaatvo seas "ner fst 10unts espa a oli Supplement Loan Cae os a = » < ricune29 leat Crew an eve ae OM Om per Ley ee hePROCESS STRATEGY AND ANALYSIS EHAPTER2 95 Process Charts ‘A proces chal ian expo wy of acaenling al he alvilos pc bya pron or froup a poop ats worttaton, eto, rng ih eva aerial anal "proces sng tbl, ad provides inormaton about sch step sth procs a ont wets, st lan wets and serie ern reqs the ie oat or trmstrarin ohnigues ever ints serio fen tt se el doen tote bevel {aren nid person, tan, a oes nse. hean have mn formal: He soup the typo fetes for wtp pons a ve eta: 1 Operation. Changs, rates ras something Drilling a hole an serving. a custome ae ‘Sample operations 1 Pansportation Move tudysubjt fromone poco to another (smatne lle mato ‘tig sien a psn, sal, oo Po ep ‘onion anda esnveyor caryng pray completed prodvct tom ne workstation 0 the ast ae examps a spartan I cold asp br Uk shipment fa ash pel tots cutomer ara wars, 1 Iupection Chace varios something al dos ol change it Gating customer diac, ‘ecg fr blemishes on a scm, righ rnc, dking omer ai tn eunpleofaapetien Daley. Occ who hese hall wp ating fer ation Tne pant wating fra Serer: ine spent waiting formal or pn lap an Kha ork ‘ockinr,ororkstaton elle haces he no Lo compl ae samp ‘ely. Store Occurs whan something spay ais erie Supple loaded an placed ina dororoum es inventory, oqupment pu avayar us, and papers pu nw Ml abit te examples a storage Depaning on the situation, ether caters can bused. For example, subcontcting fo ‘outedo oles might be neslogorytmporey sone and persbancnt rage or oneronnental tute ight be fre spaata eerie. Choosing tho right entogry for ach city os Taking the perspective ofthe sub hace, A deay fort oqufpment cold inspection ot Irangporain for the operat “Fo complet chat fora ns proces, ha analyst mst ony each slap performed he ocean existing one the nualye mt ttaly choco Ihe slope and cnaperan aah op ‘tcoding to the suet olng studied. "The anal then cords the distance tenet he ti te a por cach aap Ar scoring ves eed sym i le et ties top tines a sence at, gut 230s a provers chur peepee ing OM [ixplona’sPocew Gort Solver it isforn pation wha wiser nl being Wen ats hora The proces begins mt the enrance as ends with the patient extng fr picking up 8 proseption, ‘Allo jrocess i chatted, tho analyst souetines estates dhe annual cost ofthe etre procs. Iebeeames banehunarkagatat we ote mods for pertain the races ea {eSewnuaed Anna lar eost en be ented by ing tho pret a (Une in ows 0 eros Ie procs each ine, (2 vara cot pr howe (mb of Un th procs tea en Annual __ (‘Tine to porfonn)/Vasale costs) /Nutar oF tines procs abo ost the pocassin hous), yerhour —)\ is pefonno per year $25 pr hour and 40 customers are sared pr yar, then the labor x eS per eat {craieusomer % 825M 10 cutee! ‘thee ofthe pation! i Fgare240, he convesson would not be nncesnry, with total att ine tg sunt What i boing wacked othe pants ne, nt th i and costs Dt sare roe "You can design your own process chat spreadshets ong ut tse tat ae patie lay tnportant for he process you aro aualsing. sch as alors for easter conta rots frees and Ms Lo, You ca waa ie parents sents lb han Ge lind distance tele, nich wor ate tn adilion, you ea sso cents dlleent versa of the procs char sprendshort that examines prorarts much az done wih lloweharts, exept now in the form of aie. Th clams thal extern the aciity type cou he roped by one or mora cols rportng diferent motes of nore rather a yng to hem Tivo ate Although night not took ae olan, Ht could be fst a informative ‘ler ore ens agi nf met ltt parent oss psp po, a Satan irae,FiGUnE 2.10 » eos aay om mane Peoescatotney7 St ‘ny eto Ted ads pasts el ct Ht om cn iin a yay He tioned ‘easel baked ean ee ed een mes Tents et seta pz Th gut Ba ‘ih et corn gt ea os menor ‘ees nine ‘om ve aed fants on psa. trees te pena era ah ‘Ser, iy, cot hecklsts Dts cls ‘ta moti, A chock ion tough tho ws af cect ft Tea fom tind to recor he fue of ceeence oferta perce {tuo A prooas lle any arora row, an tho ka, The charactors nny bo measurable om continua wale igh "Serr fests, patent Pa ts wan Chapin “Cay vl Tete We ntsc ihm hse ansehen vou ie ones Ee ms ew ay yw »|r| — Exec am apo pa ee Seeescm (cece cena | (eee aes +) (SR eee ‘iets eae | (een ite nae femme Bae ce fee fens Data Analysis Tools Mss wad perfemanoninfarmatice. comple the dos entation af procs. The specific mses mys chose ‘ponds on te paces bing sly dom the emt tveprecie Ged sting pointe pont proses, {inland eet a sac sop a the tine lapend fom beg ing sn ofthe proces Capaciy ition environmental Jsses and castor ob) wating ts ve whe te res lays are ast ial to osc Custom salon ‘ows, eor rae ad ep als ens prsbe qu {ty profs We tntodaco any eh een ego ‘opr, Only wh thes aiequent chapter oe enderond ‘lowe relly complete ur diseaeron a prea aie Nis ca bsp neon ay: Someta hey ‘nadie ean tie Deiat orn het ‘nf tie ur lly, anthropos ote s ‘erring rd esate sae nti oe ‘Thocolunns oth cent pera, sd, on pans ‘0s forverions matic, Vato oe av bt el on Toten th ess of hse rtm ges and pans Fi ops i ols choc) Haga ed bo ‘hats (Pt ct, sate dig ee “gan a ps. oy of ho ere dele tly ‘oanlyzqunty snes, but hy apply ogy la pcan mal he ea sain th soa ce ahora ro, deena se, lags, clay ine ith