To Accompany Ritzman & Krajewski, Foundations of Operations Management © 2003 Prentice-Hall, Inc. All rights reserved. Chapter 2 Process Management

To Accompany Ritzman & Krajewski, Foundations of Operations Management © 2003 Prentice-Hall, Inc. All rights reserved. Processes at manufacturing organizations HighLow Volume Customization High Low Figure 2.1a Project process Selecting location for new plant in Europe Installing ERP for a manufacturing firm’s business processes Job process Machining precision metal tubes Internal consulting team at manufacturing firm Batch process Forging process to make fittings for pressure vessels access Producing a batch of textbooks at R. R. Donnelley’s plant Line process Auto assembly King Soopers bread line Continuous process Oil refining process Borden’s pasta making process

To Accompany Ritzman & Krajewski, Foundations of Operations Management © 2003 Prentice-Hall, Inc. All rights reserved. Processes at service providers HighLow Volume Customization High Low Figure 2.1b Project process Real estate process for leasing and constructing facilities for large insurance company Student team’s field project Job process Customer service process at financial services firm General medical practice Batch process Order fulfillment process of importer/distributor Placing purchase orders at public relations agency Line process Cafeteria line Teller line at bank Continuous process Power generation plant Providing telephone line access

To Accompany Ritzman & Krajewski, Foundations of Operations Management © 2003 Prentice-Hall, Inc. All rights reserved. Costs and Volume Units per year (Q) Process 2: Special-purposeequipment Process 1: General-purposeequipment Break-even quantity F2F2 F1F1 Total cost (dollars) Figure 2.2

To Accompany Ritzman & Krajewski, Foundations of Operations Management © 2003 Prentice-Hall, Inc. All rights reserved. Volume and Major Process Decisions Process design choices  Less vertical integration  More resource flexibility  More customer involvement  Less capital intensity/ automation  More vertical integration  Less resource flexibility  Less customer involvement  More capital intensity/ automation Low volume, customized-service process High volume, standardized-service process HighLow Volume Figure 2.3 Project process Real estate process for leasing and constructing facilities for large insurance company Student team’s field project Job process Customer service process at financial services firm General medical practice Batch process Order fulfillment process of importer/distributor Placing purchase orders at public relations agency Line process Cafeteria line Teller line at bank Continuous process Power generation plant Providing telephone line access

To Accompany Ritzman & Krajewski, Foundations of Operations Management © 2003 Prentice-Hall, Inc. All rights reserved. Flow Diagrams * = Points critical to the success of the service † = Points at which failure is most often experienced Customer drops off car Mechanic makes diagnosis* Discuss needed work with customer* Customer departs with car Collect payment Notify customer Check parts availability † Order parts Repair complete Figure 2.4 Repair not authorized Parts available Service visible to customer Repair authorized Service not visible to customer Perform work † Inspect/ test and repair Perform corrected work Corrective work necessary Parts not available

To Accompany Ritzman & Krajewski, Foundations of Operations Management © 2003 Prentice-Hall, Inc. All rights reserved. Process Charts Figure 2.5 Process: Emergency room admission Subject: Ankle injury patient Beginning: Enter emergency room Ending: Leave hospital XEnter emergency room, approach patient window XSit down and fill out patient history XNurse escorts patient to ER triage room XNurse inspects injury XReturn to waiting room XWait for available bed XGo to ER bed XWait for doctor XDoctor inspects injury and questions patient XNurse takes patient to radiology XTechnician x-rays patient XReturn to bed in ER XWait for doctor to return XDoctor provides diagnosis and advice XReturn to emergency entrance area XCheck out XWalk to pharmacy XPick up prescription XLeave the building Step no. Time (min) Distance (ft) Summary Number of steps Activity Time (min) Distance (ft) Transport Operation523— Inspect28— Store——— Delay38— Step description Insert Step Append Step Remove Step