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7 Process Strategy PowerPoint presentation to accompany Heizer and Render Operations Management, Eleventh Edition Principles of Operations Management, Ninth Edition PowerPoint slides by Jeff Heyl © 2014 Pearson Education, Inc.

Outline Process Strategies Product-Process Matrix

Process Strategy A process strategy is an organization’s approach to transforming resources into goods and services. The objective is to create a process to produce products that meets customer requirements within cost and other managerial constraints

Process Strategies How to produce a product or provide a service that Meets or exceeds customer requirements Meets cost and managerial goals Has long term effects on Efficiency and production flexibility Costs and quality

Process Strategies Deciding on the way production of goods or services will be organized variety of output degree of equipment flexibility expected volume of output Five process strategies Project: Building a custom home Job shop: Beauty Shop Batch: Local Bakery Repetitive Process: Cell Phone Assembly Continuous Process: Oil Refinery

Product-Process Matrix Introduction Video

Product-Process Matrix Project (Building a Custom home) High Variety Flexibility Cost Low Job Shop (Beauty Shop) Batch (Local Bakery) Repetitive Process (Cell Phone Assembly) Continuous Process (Oil Refinery) Low Volume High

Discussion Question 1 Consider several members of the supply chain of a company that makes plastic toy cars and trucks. Which of the five processes described in the product-process matrix is likely to be used by the following supply chain members? the company that assembles the toys: the company that produces the plastic :

Discussion Question 2 Which of the five processes described in the product-process matrix is likely to be used? A company that designs custom racing bikes A company that makes low-priced bikes for children

Product-Process Matrix Project (Building a Custom home) High Variety Flexibility Cost Low Mass Customization Job Shop (Beauty Shop) Batch (Local Bakery) Repetitive Process (Cell Phone Assembly) Continuous Process (Oil Refinery) Low Volume High

Product-Process Matrix Mass Customization Use advanced technologies to customize products quickly and at a low cost Dell computer