7 Process Design
PowerPoint presentation to accompany
Heizer, Render, and Al-Zu’bi
Operations Management, Arab World Edition
Original PowerPoint slides by Jeff Heyl
Adapted by Zu’bi Al-Zu’bi
Process Strategies
The objective of a process strategy is
to build a production process that
meets customer requirements and
product specifications within cost
and other managerial constraints
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
Process Strategies
Four basic strategies
1. Process focus
2. Repetitive focus
3. Product focus
4. Mass customization
Within these basic strategies there are
many ways they may be implemented
Process Focus
◆ Facilities are organized around specific
activities or processes
◆ General purpose equipment and skilled
personnel
◆ High degree of product flexibility
◆ Typically high costs and low equipment
utilization
◆ Product flows may vary considerably
making planning and scheduling a
challenge
Many inputs
Process Focus
(surgeries, sick patients,
baby deliveries, emergencies)
(low volume, high variety,
Many departments and
intermittent processes) many routings
New Mowasat Hospital
Figure 7.2(a) Many different outputs
(uniquely treated patients)
Repetitive Focus
◆ Facilities often organized as
assembly lines
◆ Characterized by modules with parts
and assemblies made previously
◆ Modules may be combined for many
output options
◆ Less flexibility than process-focused
facilities but more efficient
Raw materials and
module inputs
(multiple engine models,
Repetitive Focus wheel modules)
Few
modules
(modular)
EGA
Modules combined for many
Figure 7.2(b) Output options
(many combinations of cars)
Product Focus
◆ Facilities are organized by product
◆ High volume but low variety of
products
◆ Long, continuous production runs
enable efficient processes
◆ Typically high fixed cost but low
variable cost
◆ Generally less skilled labor
Few Inputs
Product Focus
(corn, potatoes, water,
seasoning)
(High-volume, low variety,
continuous process)
Lays
Output variations in size,
Figure 7.2(c)
shape, and packaging
(3-oz, 5-oz, 24-oz package
labeled for each material)
Mass Customization
◆ The rapid, low-cost production of
goods and service to satisfy
increasingly unique customer
desires
◆ Combines the flexibility of a
process focus with the efficiency
of a product focus
Many parts and
component inputs
Mass Customization (chips, hard drives,
software, cases)
Many modules
(high-volume, high-variety)
Dell Computer
Figure 7.2(d)
Many output versions
(custom PCs and notebooks)
Mass Customization
◆ Imaginative and fast product
design
◆ Rapid process design
◆ Tightly controlled inventory
management
◆ Tight schedules
◆ Responsive supply chain partners
Focused Processes
◆ Focus brings efficiency
◆ Focus on depth of product line rather
than breadth
◆ Focus can be
◆ Customers
◆ Products
◆ Service
◆ Technology
Changing Processes
◆ Difficult and expensive
◆ May mean starting over
◆ Process strategy determines
transformation strategy for an
extended period
◆ Important to get it right
Process Analysis and Design
◆ Is the process designed to achieve a
competitive advantage?
◆ Does the process eliminate steps that
do not add value?
◆ Does the process maximize customer
value?
◆ Will the process win orders?
Process Analysis and Design
◆ Flowcharts - Shows the movement of
materials
◆ Time-Function Mapping - Shows flows and
time frame
Process Analysis and Design
◆ Flowchart - Shows the movement of
materials
◆ Time-Function Mapping - Shows flows and
time frame
◆ Value-Stream Mapping - Shows flows and
time and value added beyond the
immediate organization
◆ Process Chart - Uses symbols to show
key activities
◆ Service Blueprinting - focuses on
customer/provider interaction
Process Chart
Figure 7.7
Service Blueprinting
◆ Focuses on the customer and
provider interaction
◆ Defines three levels of interaction
◆ Each level has different
management issues
◆ Identifies potential failure points
Special Considerations for Service Process
Design
◆ Some interaction with customer is
necessary, but this often adversely affects
performance
◆ The better these interactions are
accommodated in the process design, the
more efficient and effective the process
◆ Find the right combination of cost and
customer interaction
Service Process Matrix
Mass Service and Professional Service
◆ Labor involvement is high
◆ Selection and training highly
important
◆ Focus on human resources
◆ Personalized services
Service Process Matrix
Service Factory and Service Shop
◆ Automation of standardized
services
◆ Low labor intensity responds well
to process technology and
scheduling
◆ Tight control required to maintain
standards
Improving Service Productivity
Strategy Technique Example
Separation Structure service so Bank customers go to a
customers must go manager to open a new
where the service is account, to loan officers
offered for loans, and to tellers
for deposits
Self-service Self-service so Supermarkets and
customers examine, department stores
compare, and evaluate
Internet ordering
at their own pace
Table 7.3
Improving Service Productivity
Strategy Technique Example
Postponement Customizing at delivery Customizing vans at
delivery rather than at
production
Focus Restricting the offerings Limited-menu
restaurant
Modules Modular selection of Investment and
service insurance selection
Modular production Prepackaged food
modules in restaurants
Table 7.3
Improving Service Productivity
Strategy Technique Example
Automation Separating services that Automatic teller
may lend themselves to machines
some type of
automation
Scheduling Precise personnel Scheduling ticket counter
scheduling personnel at 15-minute
intervals at airlines
Training Clarifying the service Investment counselor,
options funeral directors
Explaining how to avoid
problems After-sale maintenance
personnel
Table 7.3
Improving Service Processes
◆ Layout
◆ Product exposure, customer
education, product enhancement
◆ Human Resources
◆ Recruiting and training
◆ Impact of flexibility
Equipment and Technology
◆ Often complex decisions
◆ Possible competitive advantage
◆ Flexibility
◆ Stable processes
◆ May allow enlarging the scope of
the processes
Automatic Identification Systems (AISs)
◆ Improved data acquisition
◆ Reduced data entry errors
◆ Increased speed
◆ Increased scope
of process
automation
Example – Bar codes and RFID
