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Ritzman O.M Ch-2 Process
Ritzman O.M Ch-2 Process
Analysis
Chapter 2
• Process Analysis:
The documentation and detailed understanding of
how work is performed and how it can be
registered.
Service Package
(1) (2) (3)
Process High interaction with Some interaction with Low interaction with
customers, highly customers, standard customers, standardized
Characteristics customized service services with some options services
(1)
Jumbled flows,
complex work with Front office
many exceptions
(2)
Flexible flows with
some dominant
paths, moderate Hybrid office
job complexity with
some exceptions
(3)
Line flows, routine Back office
work easily
understood by
employees
Service Process Structuring
The manager has three process structure which from a
continuum to choose from are-
1.Front Office-This process has high customer contact where
service provider interacts directly with the internal or external
customers. Because the customization, verity, steps in
production of the services have considerable divergence. The
work flow is flexible.
2. Hybrid Office- A process with moderate levels of customer
contact and standard services with some options available. The
work flow progresses from one workstation to next with some
dominant paths.
Product Design
(1)
Complex and highly
customized process, Project
unique sequence of process
tasks
Job
(2) process
Disconnected line
flows, moderately
complex work Batch
process
(3) Line
Connected line, , process
highly repetitive work
(4) Continuous
Continuous flows process
Manufacturing Process
Structuring
Project Process: A process characterized by a high degree
of customization, the large scope of each product, and the
release of substantial resources once it is completed.
Job Process: A process with the flexibility needed to
produce a wide variety of products in significant
quantities, with considerable complexity and divergence in
the steps performed. Customization is high, volume for
any one product is low and resources can handle flexible.
Batch Process: A process that differs from the job process
with respect to volume, variety and quantity. It could me in
small or large batch. The main difference volume of
products. It has average or moderate volume but process
Manufacturing Process
Structuring
divergence is still to great and a separate process for each
product.
Line Process: A process that lies between the batch and
continuous processes on the continuum; volumes are high and
products are standardized, which allows resources to be
organized around particular products. Divergence is minimal
in the process and little inventory is held between processing
steps.
Continuous Flow: The extreme end of high-volume,
standardized production and rigid line flows, with production
not starting and stopping for long time intervals.
Backward
integration
King In-house
Soopers processes
Forward
integration
Customers
(grocery stores)
Figure 3.9
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.
Types of Vertical Integration
There are two types of vertical integration system can be used
to design the processes of the organization. They are:
1.Forward Integration- In this type of integration a company in
the supply chain merges with a distribution channel.
2.Backward Integration- It is a type of vertical integration
which is considered an ‘upstream ; business move because it
involves a company expanding backward by purchasing and
controlling earlier stages of the supply chain. It allows them to
control the raw materials needed to create the final product.