1. 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

2. Process Strategies Four basic strategies Process focus
Repetitive focus
Product focus
Mass customization
Within these basic strategies there are many ways they may be implemented

3. Process, Volume, and Variety
Low Volume
Repetitive Process
High Volume
Volume
Figure 7.1
High Variety
one or few units per run,
(allows customization)
Process Focus
projects, job shops (machine, print, hospitals, restaurants)
Arnold Palmer Hospital
Mass Customization
(difficult to achieve, but huge rewards)
Dell Computer
Changes in Modules
modest runs, standardized modules
Repetitive
(autos, motorcycles, home appliances)
Harley-Davidson
Changes in Attributes (such as grade, quality, size, thickness, etc.)
long runs only
Product Focus
(commercial baked goods, steel, glass, beer)
Frito-Lay
Poor Strategy (Both fixed and variable costs are high)
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4. Dealing with Product Variety: Mass Customization
Long
Lead Time
Short
Mass
Customization
Base goal in a supply chain: Flow time reduction (this is what the operations course was all about)
High
Low
Cost
Customization
Low
High

5. Tactics for Matching Capacity to Demand
Making staffing changes
Adjusting equipment
Purchasing additional machinery
Selling or leasing out existing equipment
Improving processes to increase throughput
Redesigning products to facilitate more throughput
Adding process flexibility to meet changing product preferences
Closing facilities

6. Bottleneck Analysis and Theory of Constraints
Each work area can have its own unique capacity
Capacity analysis determines the throughput capacity of workstations in a system
A bottleneck is a limiting factor or constraint
A bottleneck has the lowest effective capacity in a system

7. Process Times for Stations, Systems, and Cycles
The process time of a station is the time to produce a unit at that single workstation
The process time of a system is the time of the longest process in the system … the bottleneck
The process cycle time is the time it takes for a product to go through the production process with no waiting

8. A Three-Station Assembly Line
2 min/unit
4 min/unit
3 min/unit A B C
Figure S7.4
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9. Process Times for Stations, Systems, and Cycles
The system process time is the process time of the bottleneck after dividing by the number of parallel operations
The system capacity is the inverse of the system process time
The process cycle time is the total time through the longest path in the system

10. Capacity Analysis Two identical sandwich lines
Each line has two workers and a toaster to perform the three operations
All completed sandwiches are wrapped
Wrap
37.5 sec/sandwich
Order
30 sec/sandwich
Bread
Fill
Toast
15 sec/sandwich
20 sec/sandwich
40 sec/sandwich
© 2011 Pearson Education, Inc. publishing as Prentice Hall

11. Capacity Analysis
Wrap
37.5 sec
Order
30 sec
Bread
Fill
Toast
15 sec
20 sec
40 sec
Toast work station has the longest processing time – 40 seconds
The two lines each deliver a sandwich every 40 seconds so the process time of the combined lines is 40/2 = 20 seconds
At 37.5 seconds, wrapping and delivery has the longest processing time and is the bottleneck
Capacity per hour is 3,600 seconds/37.5 seconds/sandwich = 96 sandwiches per hour
Process cycle time is = seconds
© 2011 Pearson Education, Inc. publishing as Prentice Hall

12. Capacity Analysis Standard process for cleaning teeth
Cleaning and examining X-rays can happen simultaneously
Check out
6 min/unit
Check in
2 min/unit
Develops X-ray
4 min/unit
8 min/unit
Dentist
Takes X-ray
5 min/unit
X-ray exam
Cleaning
24 min/unit
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13. Capacity Analysis All possible paths must be compared
Check out
6 min/unit
Check in
2 min/unit
Develops X-ray
4 min/unit
8 min/unit
Dentist
Takes X-ray
5 min/unit
X-ray exam
Cleaning
24 min/unit
All possible paths must be compared
Cleaning path is = 46 minutes
X-ray exam path is = 27 minutes
Longest path involves the hygienist cleaning the teeth
Bottleneck is the hygienist at 24 minutes
Hourly capacity is 60/24 = 2.5 patients
Patient should be complete in 46 minutes
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14. Theory of Constraints
Five-step process for recognizing and managing limitations
Step 1: Identify the constraint
Step 2: Develop a plan for overcoming the constraints
Step 3: Focus resources on accomplishing Step 2
Step 4: Reduce the effects of constraints by offloading work or expanding capability
Step 5: Once overcome, go back to Step 1 and find new constraints

15. Bottleneck Management
Release work orders to the system at the pace set by the bottleneck
Lost time at the bottleneck represents lost time for the whole system
Increasing the capacity of a non-bottleneck station is a mirage
Increasing the capacity of a bottleneck increases the capacity of the whole system