Chapter 7: Process Strategy and
Sustainability
7-1
Summary
Global Company Profile: Harley-
Davidson
Four Process Strategies
Process Focus
Repetitive Focus
Product Focus
Mass Customization Focus
Comparison of Process Choices
7-2
Outline
Process Analysis and Design
Flow Charts
Time-Function Mapping
Value-Stream Mapping
Process Charts
Service Blueprinting
7-3
Outline – Continued
Special Consideration for Service
Process Design
Customer Interaction and Process
Design
More Opportunities to Improve
Service Processes
Selection of Equipment and
Technology
7-4
Outline – Continued
Production Technology
Machine Technology
Automatic Identification Systems
(AISs) and RFID
Process Control
Vision Systems
Robots
7-5
Outline – Continued
Production Technology (cont.)
Automated Storage and Retrieval
Systems (ASRSs)
Automated Guided Vehicles (AGVs)
Flexible Manufacturing Systems
(FMSs)
Computer-Integrated Manufacturing
(CIM)
7-6
Outline – Continued
Technology in Services
7-7
Process Strategies
Four basic strategies
1. Process focus
2. Repetitive focus
3. Product focus
4. Mass customization
Within these basic strategies there are
many ways they may be implemented
7-8
Process Focus
Facilities are organized around specific
activities or processes
General purpose equipment and skilled
personnel
High degree of product flexibility
Typically high costs and low equipment
utilization
Product flows may vary considerably
making planning and scheduling a
challenge
7-9
Many inputs
Process Focus
(surgeries, sick patients,
baby deliveries, emergencies)
(low volume, high variety,
Many departments and
intermittent processes) many routings
Arnold Palmer Hospital
Figure 7.2(a) Many different outputs
(uniquely treated patients)
7 - 10
Repetitive Focus
Facilities often organized as
assembly lines
Characterized by modules with parts
and assemblies made previously
Modules may be combined for many
output options
Less flexibility than process-focused
facilities but more efficient
7 - 11
Raw materials and
module inputs
Repetitive Focus (multiple engine models,
wheel modules)
Few
modules
(modular)
Harley Davidson
Figure 7.2(b) Modules combined for many
Output options
(many combinations of motorcycles)
7 - 12
Product Focus
Facilities are organized by product
High volume but low variety of
products
Long, continuous production runs
enable efficient processes
Typically high fixed cost but low
variable cost
Generally less skilled labor
7 - 13
Few Inputs
Product Focus
(corn, potatoes, water,
seasoning)
(low-variety, high volume,
continuous process)
Frito-Lay
Output variations in size,
Figure 7.2(c) shape, and packaging
(3-oz, 5-oz, 24-oz package
labeled for each material)
7 - 14
Product Focus
D A Scrap
Nucor Steel Plant steel
Continuous caster
B
C Electric
Ladle of molten steel furnace
Continuous cast steel
sheared into 24-ton slabs
Hot tunnel furnace - 300 ft
E F
Hot mill for finishing, cooling, and coiling
H G
I
7 - 15
Mass Customization
The rapid, low-cost production of
goods and service to satisfy
increasingly unique customer
desires
Combines the
flexibility of a
process focus
with the efficiency
of a product focus
7 - 16
Mass Customization
Number of Choices
Item 1970s 21st Century
Vehicle models 140 286
Vehicle types 18 1,212
Bicycle types 8 211,000
Software titles 0 400,000
Web sites 0 162,000,000
Movie releases per year 267 765
New book titles 40,530 300,000
Houston TV channels 5 185
Breakfast cereals 160 340
Items (SKUs) in 14,000 150,000
supermarkets
LCD TVs 0 102
Table 7.1
7 - 17
Many parts and
component inputs
Mass Customization (chips, hard drives,
software, cases)
Many modules
(high-volume, high-variety)
Dell Computer
Figure 7.2(d)
Many output versions
(custom PCs and notebooks)
7 - 18
Mass Customization
Repetitive Focus
Figure 7.3 Flexible people
and equipment
Modular
techniques
Accommodating
Product and Responsive
Process Design Supply Chains
Mass Customization
Rapid
throughput
Effective techniques
scheduling
techniques
Process-Focused Product-Focused
High variety, low volume Low variety, high volume
Low utilization (5% to 25%) High utilization (70% to 90%)
General-purpose equipment Specialized equipment
7 - 19
Mass Customization
Imaginative and fast product
design
Rapid process design
Tightly controlled inventory
management
Tight schedules
Responsive supply chain partners
7 - 20
Comparison of Processes
Mass
Process Focus Repetitive Product Focus Customization
(low-volume, Focus (high-volume, (high-volume,
high-variety) (modular) low-variety) high-variety)
1. Small 1. Long runs, 1. Large 1. Large quantity
quantity and usually a quantity and and large
large variety standardized small variety variety of
of products product with of products products are
are produced options, are produced
produced produced
from modules
2. Equipment 2. Special 2. Equipment 2. Rapid
used is equipment used is changeover on
general aids in use of special flexible
purpose an assembly purpose equipment
line
Table 7.2
7 - 21
Comparison of Processes
Mass
Process Focus Repetitive Product Focus Customization
(low-volume, Focus (high-volume, (high-volume,
high-variety) (modular) low-variety) high-variety)
3. Operators 3. Employees 3. Operators 3. Flexible
are broadly are modestly are less operators are
skilled trained broadly trained for the
skilled necessary
customization
4. There are 4. Repetitive 4. Work orders 4. Custom
many job operations and job orders require
instructions reduce instructions many job
because training and are few instructions
each job changes in because they
changes job are
instructions standardized
Table 7.2
7 - 22
Comparison of Processes
Mass
Process Focus Repetitive Product Focus Customization
(low-volume, Focus (high-volume, (high-volume,
high-variety) (modular) low-variety) high-variety)
5. Raw-material 5. JIT 5. Raw material 5. Raw
inventories procurement inventories material
high relative techniques are low inventories
to the value are used relative to the are low
of the value of the relative to
product product the value
of the
product
6. Work-in- 6. JIT inventory 6. Work-in- 6. Work-in-
process is techniques process process
high are used inventory is inventory
compared to low driven down
output compared to by JIT,
output kanban, lean
production
Table 7.2
7 - 23
Comparison of Processes
Mass
Process Focus Repetitive Product Focus Customization
(low-volume, Focus (high-volume, (high-volume,
high-variety) (modular) low-variety) high-variety)
7. Units move 7. Assembly is 7. Swift 7. Goods move
slowly measured in movement of swiftly
through the hours and units through through the
facility days the facility is facility
typical
8. Finished 8. Finished 8. Finished 8. Finished
goods are goods made goods are goods are
usually made to frequent usually made often build-
to order and forecast to forecast to-order
not stored and stored (BTO)
Table 7.2
7 - 24
Comparison of Processes
Mass
Process Focus Repetitive Product Focus Customization
(low-volume, Focus (high-volume, (high-volume,
high-variety) (modular) low-variety) high-variety)
9. Scheduling 9. Scheduling 9. Scheduling 9. Sophisticated
is complex, is based on is relatively scheduling is
concerned building simple, required to
with trade- various concerned accommodate
offs between models from with custom orders
inventory, a variety of establishing
capacity, and modules to output rate
customer forecasts sufficient to
service meet
forecasts
10. Fixed costs 10. Fixed costs 10. Fixed costs 10. Fixed costs
tend to be dependent tend to be tend to be
low and on flexibility high and high, variable
variable of the variable costs must be
costs high facility costs low low
Table 7.2
7 - 25
Summary
Global Company Profile: Harley-
Davidson
Four Process Strategies
Process Focus
Repetitive Focus
Product Focus
Mass Customization Focus
Comparison of Process Choices
7 - 26
