1 Business Processes BA 339 Mellie Pullman

2 Littlefield Login Buy your code this week! Log onto: Enter “dollars” It will ask for your team name & password must consist only of numbers and lower case letters must not contain spaces or punctuation

3 After Game has started Oct. 8 at 5 PM, you will then logon with: We will look at the running factories on October 10 in class but you can make changes as soon as it starts on October 8.

4 Process Analysis Terms Process: Is any part of an organization that takes inputs and transforms them into outputs. Cycle Time: Is the average time needed to complete a business process. Utilization: Is the ratio of the time that a resource is actually activated relative to the time that it is available for use.

5 Process Throughput Rate or Flow Rate R Number of jobs (or customers) that flow through the system per unit of time. Cakes per hour Kitchen orders per shift Drive-in customers per day Process Throughput rate R = 1. Takt Time

6 Bottleneck Slowest activity or operation in system. Sets the pace for throughput rate of system.

7 Process Choice & Layout

8 Process Types (in order of decreasing volume) Continuous Flow Production Line Batch (High Volume) Batch (Low Volume) Job Shop Project

9 Continuous Flow Large production volumes High level of automation Basic material passed along, converted as it moves Usually very high fixed costs, inflexible

10 Production Line High-volume production of standard products or “design window”

11 Job Shop Low volume, one-of-a-kind products Job shops sell their capability Highly flexible equipment, skilled workers Equipment arranged by function

12 Batch I Somewhere in between job shop and line processes Moderate volumes, multiple products Production occurs in “batches”

13 Batch II Layout is a cross between that found in a line and that found in a job shop: Group Technology

14 Project Used when a product is: one-of-a-kind too large to be moved Resources moved to where needed Equipment, people, etc. are highly flexible Finite duration, often with deadline

15 Mixing Together the Process Types... Spindles Arms and Legs Seats BATCH for fabricating parts... ASSEMBLY LINE for putting together final product

16 Choosing a Process type Job ShopBatchLine Volume Variety Skills AdvantageFlexibilityPrice and Delivery

17 Product – Process Matrix One of a Kind Low Volume Multiple Products Moderate Volumes Few Major Products High Volume Commodity Products Job Shop Batch Line Very Poor Fit

18 What is “Customization”? An operations-centric view:

19 Customization Models Definitions: ETO – engineer to order MTO – make to order ATO – assemble-to-order MTS – make to stock Upstream: before the customization point, “off-line” activities Downstream: after the customization point, “on-line” activities

20 Make-to-Stock Planning Issues When, how much, and how to replenish stock at location Success Balancing level of inventory against level of service Other examples?

21 Assemble-to-Order Success comes from: Flexible Engineering design Modularity

22 ATO Planning Issues Options configurations (Smart Car) 8 different colors 2 different trims 2 different seats Possible combinations? Less finished good inventory & waste than MTS

23 Make-to-order or Engineer-to-order The Joinery

24 Difficulty versus Customization