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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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 10.5015XEnter emergency room, approach patient window 210.0-XSit down and fill out patient history 30.7540XNurse escorts patient to ER triage room 43.00-XNurse inspects injury 50.7540XReturn to waiting room 61.00-XWait for available bed 71.0060XGo to ER bed 84.00-XWait for doctor 95.00-XDoctor inspects injury and questions patient 102.00200XNurse takes patient to radiology 113.00-XTechnician x-rays patient 122.00200XReturn to bed in ER 133.00-XWait for doctor to return 142.00-XDoctor provides diagnosis and advice 151.0060XReturn to emergency entrance area 164.00-XCheck out 172.00180XWalk to pharmacy 184.00-XPick up prescription 191.0020XLeave the building Step no. Time (min) Distance (ft) Summary Number of steps Activity Time (min) Distance (ft) Transport911815 Operation523— Inspect28— Store——— Delay38— Step description Insert Step Append Step Remove Step