OPERATIONS MANAGEMENT
AGENDA
A. Learning Outcomes
B. Rules of Engagement
C. Discussion of the Lesson
D. Deepening
E. Synthesis
F. Task Analysis
LEARNING OUTCOMES
At the end of this lesson, the students
should be able to:
Differentiate the various process
strategies.
Choose the appropriate process focus for
a workplace.
Familiarize with process reengineering.
RULES OF ENGAGEMENT
▪ Read the textbook and the assigned
article
▪ Active participation in class
▪ Respect each other
▪ Listen to the person who is sharing
his/her ideas during the class discussion
TOPICS
PROCESS STRATEGIES
Four Process Strategies
◦ Process Focus
◦ Repetitive Focus
◦ Product Focus
◦ Mass Customization Focus
Technology in Services
Process Redesign
PROCESS STRATEGY
It is an organization’s approach to
transforming resources into goods and
services
Objective: To create a process that can
produce offerings that meet customer
requirements within cost and other
managerial constraints.
FOUR PROCESS STRATEGIES
1. Process Focus
2. Repetitive Focus
3. Product Focus
4. Mass Customization
Fit of Process,Volume, and Variety
I. PROCESS FOCUS
It provide a high degree of product
flexibility as products move between the
specialized processes.
Each process, also called as intermittent
processes, is designed to perform a
variety of activities and handle frequent
changes.
Its facilities have high variable costs with
extremely low utilization of facilities, as
low as 5%.
1. PROCESS FOCUS
Restaurant Kitchen
Operating Room
Machine Shops
II. REPETITIVE FOCUS
It is the “classic” assembly line, which
has more structure and consequently
less flexibility than a process-focused
facility.
This type of production allows more
customizing than a product-focused
facility
Modules are assembled to get a quasi-
custom product
II. REPETITIVE FOCUS
The firm obtains both the economic
advantages of the product-focused
model and the custom advantage of the
low-volume, high-variety model.
II. REPETITIVE FOCUS
Home Appliance
Factory
Motorcycle Factory
III. PRODUCT FOCUS
It is a facility organized around products
High-volume, low-variety processes,
which are also called, “continuous
process”
The specialized nature of the facility
requires high fixed cost, but low variable
costs reward high facility utilization.
III. PRODUCT FOCUS
Chips Factory
Bread Factory
Beer Factory
IV. Mass Customization Focus
It is the rapid, low-cost production of goods
and services that fulfill increasingly unique
customer desires
It is not just about variety; it is about
making precisely what the customer wants
when the customer wants it economically.
It brings us the variety of products
traditionally provided by low-volume
manufacture (a process focus) at the cost of
standardized high-volume (product-
focused) production.
IV. Mass Customization Focus
It is challenging because it requires
sophisticated operational capabilities.
The link between sales, design, production,,
supply chain, and logistics must be tight.
IV. Mass Customization Focus
Computer Assembly
Globe Post Paid Plan
MAKING MASS CUSTOMIZATION WORK
1. Product design must be imaginative.
2. Process design must be flexible and able to
accommodate changes in both design and
technology.
3. Inventory management requires tight
control.
4. Tight schedules that track orders and
material from design through delivery are
another requirement of mass customization.
5. Responsive partners in the supply chain can
yield effective collaboration.
PRODUCTION TECHNOLOGY
MACHINE TECHNOLOGY
PRODUCTION TECHNOLOGY
AUTOMATIC IDENTIFICATION SYSTEMS &
RADIO FREQUENCY IDENTIFICATION
PRODUCTION TECHNOLOGY
ROBOTS
PRODUCTION TECHNOLOGY
AUTOMATED STORAGE &
RETRIEVAL SYSTEMS (ASRSs)
PRODUCTION TECHNOLOGY
AUTOMATED GUIDED VEHICLES (AGVs)
PRODUCTION TECHNOLOGY
FLEXIBLE MANUFACTURING SYSTEMS
PRODUCTION TECHNOLOGY
COMPUTER-INTERGRATED MANUFACTURING
TECHNOLOGY’S IMPACT IN SERVICES
SERVICE EXAMPLES
INDUSTRY
Financial Services Debit cards, electronic fund transfer,
automatic teller machines, internet stock
trading, online banking via cell phone
Education Online newspapers and journals,
interactive assignments via WebCT,
Blackboard, and
smart phones
Utilities and Automated one-person garbage trucks,
government optical mail scanners, flood-warning
systems, meters that allow homeowners
to control energy usage and costs
TECHNOLOGY’S IMPACT IN SERVICES
SERVICE EXAMPLES
INDUSTRY
Restaurants and Wireless orders from waiters to the
foods kitchen, robot butchering, transponders
on cars that track sales at drive throughs
Communications Interactive TV, e-books via Kindle
Hotels Electronic check-in/check-out, electronic
key/lock systems, mobile Web bookings
Wholesale/retail Point-of-sale (POS) terminals, e-
trade commerce, electronic communication
between store and supplier, bar-coded
data, RFID
TECHNOLOGY’S IMPACT IN SERVICES
SERVICE EXAMPLES
INDUSTRY
Transportation Automatic toll booths, satellite-directed
navigation systems, Wi-Fi in automobiles
Healthcare Online patient-monitoring systems, online
medical information systems, robotic
surgery
Airlines Ticketless travel, scheduling, Internet
purchases, boarding passes downloaded as
two-dimensional bar codes on
smartphones
PROCESS REDESIGN
Sometimes called, Process Reengineering
It is defined as fundamental rethinking of
business processes to bring about dramatic
improvement in performance.
The world is a dynamic place, and customer
desires, product technology, and product
mix change. Consequently, processes are
redesigned.
PROCESS REDESIGN
It focuses on the activities that cross
functional lines.
It also focuses on dramatic improvements in
cost, time, and customer value.
ANY PROCESS is a candidate for radical
redesign.
DEEPENING
1. Group yourselves composed of 5-6
members.
2. Think of a particular process you would
like to improve by presenting the
“before” and “after” of that process. Use
some drawings and labels in a Manila
paper.
3. State the benefits it will give as you
implement the new process.
SYNTHESIS
How do you think process
reengineering creates positive
impact in cost, time, and
customer value in business
operations?
TASK ANALYSIS
1. Group yourselves composed of 5-6
members.
2. Make further research on the four
process strategies.
3. Make a comparative table to illustrate
their differences. Use at least five bases
of comparison.
Thank you!
