1. POM - J. Galván 1 PRODUCTION AND OPERATIONS MANAGEMENT Ch. 7: Process Strategy SUMMARY

2. BASIC POINTS TYPES OF ORGANIZATIONS/SETUPS FOR MANUFACTURING PRODUCTS OR PROVIDING SERVICES TYPES OF ORGANIZATIONS/SETUPS FOR MANUFACTURING PRODUCTS OR PROVIDING SERVICES Process structures in servicesProcess structures in services Front, back and hybrid office Front, back and hybrid office Product process matrix in manufacturingProduct process matrix in manufacturing Job shop Job shop Small batch Small batch Large batch Large batch Line process Line process Continuous process Continuous process Tools for process designTools for process design Flow diagrams Flow diagrams Process charts Process charts Simulations Simulations The road to automationThe road to automation The breakeven analysis in process design – Should we invest in a new machine/process?The breakeven analysis in process design – Should we invest in a new machine/process? POM - J. Galván 2

3. QUESTIONS (I) What are the advantages of standardization? How do we obtain variety while maintaining standardization? What are the advantages of standardization? How do we obtain variety while maintaining standardization? In an affluent society, how do we produce a wide number of options for products at low cost? In an affluent society, how do we produce a wide number of options for products at low cost? Why has the utilization of robotics proven to be a popular production process? Why has the utilization of robotics proven to be a popular production process? Where does the manager obtain data for beak-even analysis? Where does the manager obtain data for beak-even analysis? What keeps plotted variable and fixed-cost data from failing on a straight line? What keeps plotted variable and fixed-cost data from failing on a straight line? What keeps plotted revenue data from falling on a straight line? What keeps plotted revenue data from falling on a straight line? What are the assumptions of break-even analysis? What are the assumptions of break-even analysis? POM - J. Galván 3

4. QUESTIONS (II) How might we isolate the production/operations process from the customer? How might we isolate the production/operations process from the customer? What are the features of batch production? Taking a hypothetical example, explain how is the economic batch size determined? What are the features of batch production? Taking a hypothetical example, explain how is the economic batch size determined? Discuss the impact of technology on product process design with suitable examples. Discuss the impact of technology on product process design with suitable examples. The system that has the highest equipment flexibility is The system that has the highest equipment flexibility is Job shopJob shop BatchBatch Repetitive productionRepetitive production Continuous processingContinuous processing Benefits of design for manufacturability and value engineering include all of the following except Benefits of design for manufacturability and value engineering include all of the following except Reduced complexity of the product Additional standardization of the components Improved job design and safety Compromise quality

5. QUESTIONS (III) The type of processing structure that is used to produce gasoline, chemicals, and steel is known as. Job Shop Batch Assembly Line Continuous Flow Which of the following refers the way an organization chooses to produce its good or services? Process selection Process reengineering Process redesign Process design

6. POM - J. Galván 6 WHAT IF THE PROCESS DOES NOT WORK?

7. POM - J. Galván 7 THINK ABOUT PROCESSES