In-Depth Notes on Process Strategy and Technology in Production

Learning Objectives

• Describe four process strategies.
• Compute crossover points for different processes.
• Utilize tools of process analysis.
• Describe customer interaction in service processes.
• Identify recent advances in production technology.

Global Company Profile: Harley-Davidson

• A leader in the motorcycle industry emphasizing:
  • Quality and lean manufacturing principles.
  • Materials as Needed (MAN) system.
  • Various product configurations.
  • Tightly scheduled production lines.

Four Process Strategies

• A process strategy defines how a product is produced or how a service is provided.
• Strategies have long-term effects on:
  • Efficiency
  • Production flexibility
  • Costs
  • Quality

Types of Process Strategies

1. Process Focus

   • Organized around specific activities or processes.
   • High degree of product flexibility using general-purpose equipment.
   • High costs, low equipment utilization; variable product flows.

2. Repetitive Focus

   • Assembly line organization, facilities characterized by modularity.
   • More efficient than process-focused, with limited flexibility.
   • Example: Harley-Davidson uses modules for multiple motorcycle configurations.

3. Product Focus

   • Facilities organized by product lines, high volume but low variety.
   • Long, continuous production runs improve efficiency with less skilled labor.
   • Example: Frito-Lay's snack production.

4. Mass Customization

   • Combines flexibility of process focus with efficiency of product focus.
   • Example: Dell Computer's customizable PCs.
   • Requires efficient product design, tightly controlled inventory, and responsive supply chains.

Process Comparison

• Characteristics vary by process type:
  • Process Focus: Low volume, high variety; skilled operators, high raw material inventories.
  • Repetitive Focus: Modular outputs; training reduced through repetitive operations.
  • Product Focus: High volume, low variety; costs managed through fixed and variable expense balancing.
  • Mass Customization: High variety, low fixed costs; requires extensive training for customization.

Tools of Process Analysis

• Flow Charts: Visual depiction of material movement.
• Time-Function Mapping: Displays processes over time, showing delays.
• Value-Stream Mapping: Analyzes flows and value addition across the supply chain.
• Process Charts: Symbolic representation of key activities in a process.
• Service Blueprinting: Focuses on customer and provider interactions.

Special Considerations for Service Processes

• Importance of customer interaction in the design of service processes:
  • Needs to improve efficiency without adversely affecting performance.
  • Finding a balance between cost efficiency and customer interaction.

Technology in Services

• Technologies impact across various sectors:
  • Financial Services: ATM, online banking, etc.
  • Education: Online assignments, interactive tools.
  • Restaurants: Wireless ordering, transponders for tracking sales.
  • Health Care: Robotic surgeries, online monitoring.

Recent Advances in Production Technology

• Machine Technology: Increased precision and productivity, reduced environmental impact.
• Automatic Identification Systems (AIS): Use of bar codes and RFID for improved data entry.
• Process Control: Real-time monitoring using sensors and computers.
• Vision Systems: Aid in inspection and quality assurance.
• Robotics: Enhanced efficiency and safety by performing dangerous or monotonous tasks.
• Automated Systems: Systems for storage, retrieval, and material handling.
  • Example: Automated Guided Vehicles (AGVs) enhance mobility in production areas.
• Computer-Integrated Manufacturing (CIM): Integrates all aspects of production including engineering and supply chain.