Process Selection, Design, and Analysis

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Process Selection,Design, and Analysis

• Chapter 7
• Operations Management Goods, Services, and
  Value Chains, by D. A. Collier and J. R. Evans

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Process Choice Decisions

• Custom (make to order)
• Ships
• weddings
• Option (assemble to order)
• Dell
• Subway
• Standard (make to stock)
• Appliances
• Credit cards

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Principal Process Types

• Project
• Legal defense preparation
• Construction
• Job shop (batch process)
• Restaurant
• Flow shop (assembly line)
• Automobile production
• Cafeteria
• Continuous flow
• Oil refinery

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Product Process Matrix
Production Volume
Standardization Level
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Process Choice in Services

• Pathways
• Pathway Route
• Customer Determined
• Museum
• Haircut
• Provider Determined
• Cafeteria
• Dept of Motor Vehicles

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Service Positioning Matrix
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Product Lifecycle
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Reengineering Creative Destruction

• Sometimes, it is easier to start from a clean
  sheet
• Reengineering is the fundamental rethinking and
  radical redesign of business processes to achieve
  dramatic improvements
• Creative Destruction is the process of
  eliminating antiquated processes and replacing
  them with new (value is created in excess of
  value destructed)

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Process Design Resource Utilization

• Utilization by Process Design
• Manufacturing
• Job shop 65-90
• Flow shop 80-95
• Continuous flow above 95
• Service
• Movie Theaters 5-20
• Airlines midday flights half-full

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Process Design Resource Utilization
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Process Design Resource Utilization
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One Queue - One Server - No RenegingFormulas
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Queue Management

• Increased utilization leads to improved
  productivity
• BUT
• Increased utilization leads tolong queues
  andlow customer service