Operations
Operations
Management
Management
Process Strategy
Process Strategy
and Design
and Design
Chapter 5
Learning Objectives
Learning Objectives
When you complete this chapter, you should be
able to :
Identify or Define
:
Process focus
Repetitive focus
Product focus
Production Process Flow Diagram
Production Process Flow Diagram
Shipping
Customer
Customer sales
representative
take order
Prepress Department
(Prepare printing plates
and negatives)
Printing Department
Collating
Department
Gluing, binding,
stapling, labeling
Polywrap
Department
Purchasing
(order inks, paper,
other supplies)
Vendors
Receiving
Warehousing
(ink, paper, etc.)
Accounting
Types of Process Strategies
Types of Process Strategies
Process strategies that follow a continuum
Within a given facility, several strategies may be
used
These strategies are often classified as:
Repetitive-Focused
Process-Focused Strategy
Process-Focused Strategy
Facilities are organized by process
Similar processes are together
Example: All drill presses are together
Low volume, high variety products
‘Jumbled’ flow
Operation
Product A
Product B
1
1
1
1
2
2
2
2
3
3
3
3
Other names
Intermittent process
Figure 5 A
Process-Focused Strategy Examples
Process-Focused Strategy Examples
Bank
© 1995 Corel Corp.
Machine
Shop
© 1995 Corel Corp.
Process Focused Strategy
Process Focused Strategy
Pros & Cons
Pros & Cons
Advantages
Greater product flexibility
More general purpose equipment
Lower initial capital investment
Disadvantages
More highly trained personnel
Repetitive Focused Strategy
Repetitive Focused Strategy
Facilities often organized by assembly lines
Characterized by
modules
Parts & assemblies made previously
Modules combined for many output options
Other names
Figure 5 B
Repetitive Focused Strategy
Repetitive Focused Strategy
-Considerations
Considerations
More structured than process-focused, less
structured than product focused
Enables quasi-customization
Using modules, it enjoys economic
Repetitive-Focused Strategy -
Repetitive-Focused Strategy -
Examples
Examples
Truck
Clothes
Dryer
© 1995 Corel Corp.
Fast
Food
McDonald’s
over 95 billion served
McDonald’s
over 95 billion served
Figure 5.3
Product-Focused Strategy
Product-Focused Strategy
Facilities are organized by product
High volume, low variety products
Where found
Discrete unit manufacturing
Continuous process manufacturing
Products A & B
1
1
2
2
3
3
Other names
Figure 5 C
Product-Focused Strategy
Product-Focused Strategy
Pros & Cons
Pros & Cons
Advantages
Lower variable cost per unit
Lower but more specialized labor skills
Easier production planning and control
Higher equipment utilization (70% to 90%)
Disadvantages
Lower product flexibility
More specialized equipment
Product-Focused Examples
Product-Focused Examples
© 1995 Corel Corp.
Light Bulbs
(Discrete)
Paper (Continuous)
© 1984-1994 T/Maker Co.© 1995 Corel Corp.
