Supply Chain Processes - Test 1 Ch 2

process strategy

the pattern of decisions made in managing processes so that they will achieve their competitive priorities

process structure in services

customer contact; customization; process divergence; flow

customer contact

the extent to which the customer is present, actively involved, and receives personal attention during the service process

customization

service level ranging from high customized to standardized

process divergence

the extent to which the process is highly customized with considerable latittude as to how its tasks are performed fl

flow

how the work progresses through the sequence of steps in a process

dimensions of customer contact

physical presence, whats processed, contact intensity, personal attention, method of delivery

Customer Contact Matrix for Service Processes

front office

flexible flows with individualized processes; high interaction with customers (highly customized)

hybrid office

flexible flows with some dormant paths; some customer interaction; standard services with some options

back office

line flows, routine work performed the same way with all customers; low interactions with customers, standardized services

process strategy decisions

customer involvement; resource flexibility; capital intensity

advantages of customer involvement

increased net value to customers; better quality/delivery/flexibility/cost; reduction in product/shipping/inventory costs; coordination across supply chain

disadvantages of customer involvement

disruptive; managing timing/volume is challenging; quality implications; needs interpersonal skills; multiple locations may be necessary

resource flexibility workforce

flexible

resource flexibility equipment

general purpose; special purpose

break even volume (Q) equation

Break even volume = fixed cost/ (revenue per patient - variable cost per unit)

process reengineering

the fundamental rethinking and radical redesign of processes to improve performance dramatically in terms of cost, quality, service, and speed

key elements of process reengineering

critical processes; strong leadership; cross functional teams; info technology; clean slate philosophy; process analysis

process improvement

the systematic study of the activities and flows of each process to improve it

process analysis

the documentation and detailed understanding of how work is performed and how it can be redesigned

six sigma process improvement model

define; measure; analyze; improve; control

DMAIC Roadmap

define; measure; analyze; improve; control

define

the scope and boundaries of the process to be analyzed are first established

measure

the metrics to evaluate how to improve the process are determined

analyze

a process analysis is done, using the data on measures, to determine where improvements are necessary

improve

the team uses analytical and critical thinking to generate a long list of ideas for improvement

control

the process is monitored to make sure that high performance levels are maintained

defining, measuring, and analyzing the process

flowcharts; work measurement techniques; process charts; data analysis tools

flowchart

a diagram that traces the flow of information, customers, equipment, or materials through the various steps of a process

service blueprint

a special flowchart of a service process that shows which steps have higher customer contact

capital intensity

the mix of equipment and human skills in the process the greater the relative cost of equipment, the greater the capital intensity

swim lane flowchart

a visual representation that groups functional areas responsible for different subprocesses into lanes

work measurement techniques

time study; elemental standard data method; predetermined data method; work sampling method; learning curve analysis

process charts

an organized way of documenting all the activities performed by a person or group of people, at a workstation, with a customer, or working with certain materials

categories of activities

operation; transportation; inspection; delay; storage

purpose of a process chart

helps logistics managers understand, analyze, and improve the flow of goods

data analysis tools

checklists; histograms/bar charts ; Pareto charts; scatter diagrams; cause and effect diagrams (fishbone); graphs

process chart: operation

circle

process chart: transportation

arrow

process chart: inspection

square

process chart: delay

semicircle

process chart: storage

triangle

redesigning and managing process improvements

questioning/brainstorming; benchmarking; implementing

brainstorming

letting a group of people, knowledgable about the process, propose ideas for change by saying whatever comes to mind

questions for uncovering ideas

what is being done; when is it being done; who is doing it; where is it being done; how is it being done; how well does it do on the various metrics of importance

benchmarking

a systematic procedure that measures a firm’s processes, services, and products against those of industry leaders

the set up of a cause and effect diagram

how to develop a pareto chart

Collect data → Rank causes → Draw bars → Calculate cumulative % → Find the biggest contributors

pareto principle

80% of results come from roughly 20% of causes; a small number of problems creates a large percentage of the overall issues

implementing: mistake 1

not connecting with strategic issues

implementing: mistake 2

not involving the right people with the right way

implementing: mistake 3

not giving the design teams and process analysts a clear charter/holding them accountable

implementing: mistake 4

not being satisfied unless fundamental “reenginering” changes are being made

implementing: mistake 5

not considering the impact on people

implementing: mistake 6

not giving attention to implementation

implementing: mistake 7

not creating an infrastructure for continuous process improvement

purpose of benchmarking

allows the company to compare, identify gaps, and improve performance