OMIS 2010 - Week 2: Transformation Process

What is a process?

related tasks

What is process strategy?

producing approach

• vertical integration

• capital intensity

• process flexibility

• customer involvement

What is process planning?

how firm will produce

• in-house / supplier component

• process

• manufacture / delivery specification

What is vertical integration?

produce degree

What are the outsourcing factors?

• cost

• capacity

• quality

• speed

• reliability

• expertise

What is a sourcing continuum?

company investment

joint venture > strategic alliance > single contract

What are a single contract’s uses?

• short-term contract

• single purchase

• temporary outsource

• standard product → lowest cost

What are a strategic alliance’s uses?

• long-term contract

• collab

  • info share

  • solve problem / improve process

• significant switch cost

What are a joint venture’s uses?

• equity partner

• enter foreign country

  • condition

What is the process planning process?

1. outsource

2. process selection

What are the production process types?

• project

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• batch production

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• mass production

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• continuous production

What is a project?

1-at-a-time production

Wnat is batch production?

different job batch production at same time

What is mass production?

large standard production

What is continuous production?

very high volume production

What are the production process characteristics?

• standardization

• demand volume

>

• customer

• demand

• variety

• system

• equipment

• primary work

• skill

What are the production processes’ standardizations & volumes?

• project

<

• batch production

<

• mass production

<

• continuous production

What are the production processes’ customer types?

• project: 1-at-a-time

• batch production: individuals

• mass & continuous … production: mass

What are the production processes’ demands?

• project: infrequent

• batch production: fluctuate

• mass production: stable

• continuous production: very stable

What are the production processes’ varieties?

• project: infinite

• batch production: many

• mass production: few

• continuous production: very few

What are the production processes’ systems?

• project: long-term

• batch production: discrete (job shop)

• mass production: repetitive (assembly line)

• continuous production: continual (process industry)

What are the production processes’ equipments?

• project: varied

• batch production: general

• mass production: special

• continuous production: automated

What are the production processes’ primary work types?

• project: contract

• batch production: fabrication

• mass production: assembly

• continuous production: mix / treat / refine

What are the production processes’ worker skills?

• project: expert / craftsperson

• batch production: wide range

• mass production: limited range

• continuous production: equipment monitor

What are projects’ advantages?

• custom work

• latest tech

What are batch production’s advantages?

• flexibility

• quality

What are mass production’s advantages?

• efficiency

• speed

• low cost

What are continuous production’s advantages?

• high efficiency

• large capacity

• control ease

What are projects’ disadvantages?

• non-repetitive

• small customer

• expensive

What are batch production’s disadvantages?

• costly

• slow

• difficult to manage

What are mass production’s disadvantages?

• capital investment

• lack of response

What are continuous production’s disadvantages?

• difficult change

• far error

• limited variety

What are some project examples?

• construction

• ship

• spacecraft

What are some batch production examples?

• machine / print shop

• bakery

• education

What are some mass production examples?

• automobile

• TV

• computer

• fast food

What are some continuous production examples?

• paint

• chemical

• foodstuff

What is 1 quantitative process selection example?

break-even analysis

What is a break-even analysis?

cost v.s. demand volume examination

What are the break-even analysis components?

• volume

• cost

  • fixed

  • variable

• revenue

• profit

What is the break-even point formula?

v=\frac{c_{f}}{p-c_{v}}

What is a break-even analysis’ use?

automation degree

• fixed cost > variable cost

What is the break-even analysis process?

1. total cost equation

2. indifference point

3. above indifference point, choose lowest variable cost

4. below indifference point, choose lowest fixed cost

What is an indifference point?

volume at processes’ equal manufacturing cost

What is a process plan?

docs detailing manufacture / service delivery

What do process plans include?

• product design

• assembly chart

• operation sheet // routing sheet

• quality-control check sheet

What is an assembly sheet?

// bills of material

parts & parent relation diagram

What are the basic process analysis tools?

• flowchart

• diagram

• map

What is the flowchart process?

1. objective

2. boundary

3. flow unit

4. type

5. process observation & data collection

6. process

7. validation

What is a flowchart?

non/productive symbol flow doc

What are the standard flowchart symbols?

• ○

• ◻

• ⇒

• D

• ∇

What does ○ represent?

operation

What does ◻ represent?

inspection

What does ⇒ represent?

transport

What does D represent?

delay

What does ∇ represent?

storage

What are the nonproductive flowchart activities?

• inspection

• transport

• delay

• storage

What are the productive flowchart activities?

• operation

What is a map?

// swimlane chart

What is process innovation?

process redesign → breakthrough improvement

What is a process innovation team encouraged to do to achieve 50% - 100% improvement?

rethink purpose / output / structure / task / tech

What is process innovation most successful in?

organization that views system as functions vying for limited resources processes providing value

What is the process innovation procedure?

1. strategic directive

2. baseline data v.s. benchmark data / customer requirement / strategic directive

3. determine whether process needs redesign

4. preliminary analysis & specific goal / unspecific specs

5. high-level process map

• innovate

  • work backward

• design

  • add subprocess

6. detailed process map

• allocate resource / work method

• set key performance measure

• validate

  • simulate

  • interview

  • partial test

7. pilot study

8. full implementation

What are some redesign process principle examples?

• remove / simplify / consolidate

• link

• let swift company execute

• flex

• capture / propagate digital info

• provide visibility by fresh / rich status info

• fit sensor / feedback loop

• add analytic

• connect / collect / create knowledge

• personalize

What are some innovative idea generation technique examples?

• problem = entry

• analogy

• perspective

• inverse & attribute brainstorm

• chain

What is a additive manufacture tech synonym?

// rapid prototype

What are additive manufacture tech benefits?

• lower entry cost

• shorten design time-to-market

• eliminate inventory

• save resource

• is better for environment

What is the next additive manufacture tech evolution?

electronic embed

What is the next additive manufacture tech revolution?

4D printing

What is the 4th additive manufacture tech dimension?

assembly instruction embed

• change molecular structure to reform

What is a capital budget technique?

consider money’s time value / risks will not accrue

What are some capital budget technique examples?

• PBP

• NPV

• IRR

What are some overlooked financial tech analysis factor examples?

• purchase cost

• operation cost

• annual savings

• revenue enhancement

• replacement analysis

• risk / uncertainty

• piecemeal analysis

What are some manufacture tech examples?

• computer design & machine

• robot

• guided vehicle

• automated storage / retrieval

• flexible system

What is CIM?

|:| computer-integrated manufacture

computer-automated manufacture system

What is the IIoT?

|:| industrial Internet of Things

auto equipment / info control sensor → remote location

What are the digital transformation components?

• product

• process

• manufacture

• info

What is the indifference point formula?

\left\vert\frac{c_{f2}-c_{f1}}{c_{v1}-c_{v2}}\right\vert

What is a service?

act serving customer

• time

• place

• form

• utility

What is a good?

tangible object

What are the service characteristics?

• intangible

• variable

• higher contact

• perishable

• = delivery

• decentral

• consumed more

• emulated

What is the service concept?

target market / customer experience

What is the service design process?

1. service concept

2. service package

— customer / provider →

3. performance specs

— customer / provider →

4. design specs

— customer / provider →

5. delivery specs

— customer / provider →

6. service delivery

What is a service package?

physical item / sensual & psychological benefit mix

What are performance specs?

customer expectation / requirement outline

What are design specs?

activity / facility / skill / cost & time outline

What are delivery specs?

schedule / deliverable / location outline

What is the service-process matrix?

customization & labour

• professional service

• service shop

• mass service

• service factory

What are a professional service’s service-process matrix characteristics?

very high customization & labour

What are a service shop’s service-process matrix characteristics?

high customization & labour

What are a mass service’s service-process matrix characteristics?

low customization & labour

What are a service factory’s service-process matrix characteristics?

very low customization & labour

What are the service contact design decisions?

• facility location & layout

• quality

• capacity

• skill

• sched

• process

• service package

What are some service design tool examples?

• QFD

• service blueprint

• script

• servicescape

• quantitative technique

What is a service blueprint?

service flowchart

What are the service blueprint lanes?

1. influence / physical evidence

— influence line —

2. customer action

— interaction line —

3. onstage // front office action

— visibility line —

4. backstage // back office action

— support line —

5. support

What is the manufacture firm’s activity focus?

back office

What is the service firm’s activity focus?

front office

What are the typical front office goals?

• courtesy

• transparency

• response

• use

• fun

What are the typical back office goals?

• efficiency

• productivity

• standardization

• scale

What is 1 front/back compromise example?

mass customization