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