4

Process Design
Weeks 4 (Chapter 7)

Operations Management, Sustainability and Supply Chain Management,

Global Edition, Eleventh Edition, PEARSON
Jay Heizer and Barry Rander © 2014 Pearson Education
 Textbook for
Used

Operations Management, Sustainability and

Supply Chain Management,
Global Edition, Eleventh Edition, PEARSON
Jay Heizer and Barry Rander (2014)
 Outline
► Global Company Profile: Harley-Davidson
► Four Process Strategies
► Selection of Equipment
► Process Analysis and Design
► Special Considerations for Service Process
Design
► Production Technology
► Technology in Services
► Process Redesign
© 2014 Pearson Education
 Global Company Profile
harley DAVIDSON
4
 process
FLOW DIAGRAM

Frame tube Frame-building work Frame Hot-paint

bending cells machining frame painting

THE ASSEMBLY LINE

Engines and
TESTING Incoming parts transmissions
28 tests
Arrive on a JIT
schedule from a
Air cleaners Oil tank work cell 10-station work
cell in Milwaukee
Fluids and mufflers Shocks and forks
Fuel tank work cell Handlebars
Wheel work cell Fender work cell
Roller testing
Crating
 10
OM
STRATEGY
DECISION
▶ Design of Goods and Services
▶ Managing Quality
▶ Process Strategy
▶ Location Strategy
▶ Layout Strategy
▶ Human Resources
▶ SCM
▶ Inventory Management
▶ Scheduling
▶ Maintenace 6
© 2014 Pearson Education
 process
STRATEGY

The objective is to create a process to produce

products that meets customer requirements within
cost and other managerial constraints

© 2014 Pearson Education

 process
STRATEGY
basic strategies
1. PROCESS focus

4 2. REPETITIVE focus
3. PRODUCT focus
4. MASS customization
© 2014 Pearson Education
 4 Process Strategies

Volume Proses
Volume Rendah Volume Tinggi
Berulang
Volume Rendah
Satu atau hanya sedikit
unit dalam sekali produksi FOKUS PADA PROSES MASS CUSTOMIZATION
(memungkinkan adanya Proyek, Job Shops (mesin, (Sangat sulit dicapai, tetapi
kustomisasi) percetakan, tukang kayu) imbalannya tinggi) Dell
Standard Register Computer
Perubahan dalam
Variasi (Fleksibilitas)

Modul
Produksi dalam
jumlah sedang, BERULANG
biasanya berupa (Mobil, motor: Harley-
modul yang Davidson)
distandarisasi

Perubahan Atribut
(Seperti tingkat
STRATEGI YANG BURUK FOKUS PADA PRODUK
kualitas, ukuran,
(baik biaya tetap dan variable (Makanan panggang komersial,
ketebalan dll) hanya
tinggi) baja, kaca) Nucor Steel
berproduksi dalam
jumlah banyak

© 2014 Pearson Education

 1 PROCESS focus

A production facility organized around processes to facilitate

low-volume, high-variety production

 Is devoted to making low-volume, high-variety products in place called

“Job Shops”
 Facilities are organized around specific activities or processes
 Facilities are process focused in terms of equipment, layout and
supervision.
 Each process is designed to perform a variety of activities and handle
frequent change.

© 2014 Pearson Education

 2 REPETITIVE focus

A product-oriented production process that uses modules

 Modules are parts or components previously prepared, often in a

product-focused (continuous) process
 The repetitive process is the classic assembly line
 Widely used in the assembly of virtually all automobiles and household
appliances, it has more structure and consequently less flexibility than
a process-focused facility
 Fast-food firms are another example of a repetitive process using
modules.

© 2014 Pearson Education

 3 PRODUCT focus

A facility organized around product; a product-oriented, high-

volume, low-variety process

 The facilities are organized around products.

 They also called continuous processes, because they have very long,
continuous production runs.
 Product such as glass, paper, tin sheets, as lightbulbs, beer and potato
chips are made via a continuous process.
 A product-focused facility produces high volume and low variety. The
specialized nature of the facility requires high fixed cost, but low
variable cots reward high facility utilization.

© 2014 Pearson Education

 4 MASS CUSTOMIZATION focus
Rapid, low-cost production that caters to constantly changing
unique customer desires

 Our increasingly wealthy and sophisticated world demands

individualized goods and services.
 Operations manager use mass customization to produce this vast array
of goods and service.
 Mass customization is the rapid, low-cost production of goods and
services that fulfill increasingly unique customer desires.
 Mass customization 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.

© 2014 Pearson Education

 process
ANALYSIS
& DESIGN
Is the process designed to achieve competitive advantage in terms of
differentiation, response or low cost?
Does the process eliminate steps that do not value?
Does the process maximize customer value as perceived by the
customer?
Will the process win orders?

© 2014 Pearson Education

 value
STREAM MAPPING
1. Begin with symbols for customer, supplier, and production to ensure the
big picture
2. Enter customer order requirements
3. Calculate the daily production requirements
4. Enter the outbound shipping requirements and delivery frequency
5. Determine inbound shipping method and delivery frequency
6. Add the process steps (i.e., machine, assemble) in sequence, left to right
7. Add communication methods, add their frequency, and show the
direction with arrows
8. Add inventory quantities between every step of the entire flow
9. Determine total working time (value-added time) and delay (non-value-
added time)
© 2014 Pearson Education
 process
REDESIGN
or process reengineering

The fundamental rethinking of business processes to

bring about dramatic improvements in performance

 It works only if the basic process and its objectives are reexamined
 Focuses on those activities that cross functional line
 Focuses on dramatic improvements in cost, time an customer value.

© 2014 Pearson Education

 Thankyou very much
Operations Management, Sustainability and Supply Chain
Management,
Global Edition, Eleventh Edition, PEARSON
Jay Heizer and Barry Rander (2014)