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CHAPTER 7
OM, Ch. 7 Process Selection, Design, and Analysis 2009 South-Western, a part of Cengage Learning
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Exhibit 7.2
Product-Process Matrix
OM, Ch. 7 Process Selection, Design, and Analysis 2009 South-Western, a part of Cengage Learning
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consists of all the process steps and associated service encounters necessary to complete a service transaction and fulfill customers wants and needs.
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OM, Ch. 7 Process Selection, Design, and Analysis 2009 South-Western, a part of Cengage Learning
customers broad freedom to select the pathways that are best suited for their immediate needs and wants, from many possible pathways through the service delivery system.
The customer decides what path to take through the service delivery system with only minimal guidance from management. Examples include searching the Internet, museums, health clubs, and amusement parks.
OM, Ch. 7 Process Selection, Design, and Analysis 2009 South-Western, a part of Cengage Learning
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to follow a very small number of possible and predefined pathways through the service system.
A newspaper dispenser is an extreme example of a service system design with only one pathway, thus allowing a single service encounter activity sequence. Logging on to your secure online bank account is provider-routed.
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Exhibit 7.3
Source: Adapted from D. A. Collier and S. M. Meyer, A Service Positioning Matrix, International Journal of Production and Operations Management, 18, no. 12, 1998, pp. 11231244. Also see D. A. Collier and S. Meyer, An Empirical Comparison of Service Matrices, International Journal of Operations and Production Management, 2000 (no. 56), pp. 705729.
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A task is a specific unit of work required to create an output. An example is drilling a hole in a steel part or completing an invoice. An activity is a group of tasks (sometimes called a
assembly line, a manufacturing cell, or an office cubicle. Value chain and process have been previously defined.
OM, Ch. 7 Process Selection, Design, and Analysis 2009 South-Western, a part of Cengage Learning
workstation) needed to create and deliver an intermediate or final output. Workstations might be a position on an
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process activities and tasks necessary to create and deliver a desired output or outcome.
A process map can include the flow of goods, people, information, or other entities, as well as decisions that must be made and tasks that are performed. Process maps document how work either is, or should be, accomplished, and how the transformation process creates value.
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A process flowchart is the basis for value stream mapping, service blueprinting, and service maps. Service blueprints add a line of visibility that separates the back and front office (rooms) as shown in Exhibit 7.5. Many names are used for the analysis and development of process flowcharts, so dont let corporate fads and buzzwords confuse youthe basics of process analysis dont change, just the buzzwords and consultants sales pitch!
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Exhibit 7.5
Automobile Repair Flowchart
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A value stream map (VSM) shows the process flows in a manner similar to a traditional process flowchart or service blueprint. Traditional flowcharting, service blueprinting, and value stream mapping all try to analyze wait and process times, bottleneck work stations, process throughput, and so on.
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Eliminating non-value-added activities in a process design is one of the most important responsibilities of operations managers.
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1. Define the purpose and objectives of the process. 2. Create a detailed process or value stream map that describes how the process is currently performed. 3. Evaluate alternative process designs. Identify and define appropriate performance measures for the process. 4. Select the appropriate equipment and technology.
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Increasing agility by improving flexibility and response to changes in demand and customer expectations.
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fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed.
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Understanding resource utilization is an important aspect of process design and improvement. Utilization (U) = Resources Demanded Resource Availability [7.1]
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Throughput might be measured as parts per day, transactions per minute, or customers per hour, depending on the context. A bottleneck is the work activity that effectively
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Exhibit 7.11
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Littles Law is a simple formula that explains the relationship among flow time (T), throughput (R) and work-in-process (WIP).
WIP = R T
[7.3]
Flow time, or cycle time, is the average time it takes to complete one cycle of a process.
Littles Law provides a simple way of evaluating average process performance. If we know any two of the three variables, we can compute the third using Little's Law.
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