Operations Management - Process Strategy and Sustainability

Flashcards covering process strategy, different types of process layouts, and techniques for process analysis and design.

Process Strategy

An organization's approach to transforming resources into goods and services; the objective is to create a process that can produce offerings that meet customer requirements and cost constraints.

McDonald's Process Strategy

Designed for high volume demand and low to medium variety, focusing on quick service and affordable prices.

French Dining Restaurant Process Strategy

Designed for low volume but high variety to cater to customer taste, prioritizing high quality and a relaxed experience.

Process Focus Strategy

Suited for products with low volume and high variety, utilizing flexible labor and equipment in different departments to customize products based on customer needs. Characterized by low equipment utilization.

Product Focus Strategy

Geared towards products with high volume and low variety that require long, continuous production to take advantage of economies of scale, often involving multiple shifts. (ex. Frito Lay products)

Repetitive Focus Strategy

Combines benefits of product and process focus by using modules for product components, allowing for customization and high-volume production of individual modules. (ex. Harley Davidson motorcycles)

Mass Customization Focus Strategy

A process that can be used to make unique products for different customers even for every single customer as the customer wishes.It aims to offer variety High volume.

Crossover Charts

Compares the costs of different processes at the possible volume, units cost will be less; used to the total cost of producing V units of products with variable costs (C) and fixed costs (F).

Total Cost Function

The total cost of the process would be F + C*V, where F is the fixed cost, C is the variable cost per unit, and V is the volume in units.

Flowchart

Also known as process flow diagram or process map, is a diagram using different steps illustrating how different steps and different operations they are connected together.

Time Function Mapping

Similar to a flowchart, but it includes time as the x-axis to show how long different process steps take, helping to identify and eliminate unnecessary waiting times.

Value Stream Mapping

Mapping the full supply chain to identify non-value-added time due to high inventory and buffers, enabling improvements in efficiency and productivity.

Process Chart

Technique for process analysis using symbols for operations, transportation, inspection, delay, and storage, helps to identify and focus on value-added activities.

Service Blueprinting

Applicable for high service processes, identifying three different levels: activities under customer control, interactions between service provider and customer, and activities not visible to customers to avoid any mistake.

Office Layout

Grouping workers, their equipment, spaces, offices to provide for comfort, safety, and ease of movement of information, often using relationship charts to determine proper layout.

Retail Layout

aim to maximize profitability per square foot of floor space by exposing more products and customers, increasing sales and return on investment.

Warehouse and Storage Layout

Optimizes trade-offs between handling costs and costs associated with warehouse space, balancing vertical moves and safety considerations to minimize material handling costs (incoming outgoing transport, all the people equipment). Vertical move is also important.

Fixed Position Layout

The product remains in one place, workers and equipment come to the site in order to do the production (example: ship or aircraft building), or operations (operating room).

Process Oriented Layout

Layout of choice for a typical job shop, banks, cafeterias, hospitals, each raw material components may go through different directions.

Work Cells Layout

Recognizes people and machines into groups focusing on single products or product groups, requires identification of family of products.

Line Balancing

Assigning work, jobs, activities to stations in a line so as to achieve the desired output rate with the smallest number of work stations.

Cycle Time

The duration in which in every workstation is the same, and equal to the time it should take to complete the product, so that you can meet the demand.

Office Layout

Grouping workers, their equipment, spaces, offices to provide for comfort, safety, and ease of movement of information, often using relationship charts to determine proper layout.

Retail Layout

aim to maximize profitability per square foot of floor space by exposing more products and customers, increasing sales and return on investment.

Warehouse and Storage Layout

Optimizes trade-offs between handling costs and costs associated with warehouse space, balancing vertical moves and safety considerations to minimize material handling costs (incoming outgoing transport, all the people equipment). Vertical move is also important.

Fixed Position Layout

The product remains in one place, workers and equipment come to the site in order to do the production (example: ship or aircraft building), or operations (operating room).

Process Oriented Layout

Layout of choice for a typical job shop, banks, cafeterias, hospitals, each raw material components may go through different directions.

Work Cells Layout

Recognizes people and machines into groups focusing on single products or product groups, requires identification of family of products.

Line Balancing

Assigning work, jobs, activities to stations in a line so as to achieve the desired output rate with the smallest number of work stations.

Cycle Time

The duration in which in every workstation is the same, and equal to the time it should take to complete the product, so that you can meet the demand.

Manpower Calculation

A methodology to determine the Target Manpower for an operation or Manufacturing process.

Flow Time

The reciprocal of throughput; it measures the average time a unit spends in the system, encompassing both processing and waiting time.

Capacity

The number of units a facility can hold, receive, store, or produce in a period of time.

Design Capacity

The theoretical maximum output of a system in a given period under ideal conditions.

Effective Capacity

The capacity a firm expects to achieve given current operating constraints, such as maintenance downtime, worker breaks, and scheduling difficulties.

Utilization

Actual output as a percentage of design capacity.

Efficiency

Actual output as a percentage of effective capacity.

Capacity Cushion

Capacity that exceeds the expected demand over a long-term horizon.