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7 Process Strategy PowerPoint presentation to accompany

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1 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.

2 Outline Process Strategies Product-Process Matrix

3 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

4 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

5 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

6 Product-Process Matrix
Introduction Video

7 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

8 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 :

9 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

10 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

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

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