Process Strategy for Efficient Production
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ScribdTranslationsProcess Strategy for Efficient Production
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ScribdTranslationsPROCESS STRATEGY
What is a process?
Ordered and successive series of activities that people perform on something, for
obtain a result with added value that meets the needs of the clients and of the
stakeholder groups according to the organization's mission.
What is a process strategy?
A strategy of the process (or transformation) is the approach adopted by a
organization to transform resources into goods and services.
The objective of a process strategy is to find the way to produce goods and
services that meet the customer's requirements and the product specifications
regarding costs and other management constraints.
The selected process will have a long-term effect on efficiency and flexibility.
the production, as well as on the cost and quality of the goods produced. Therefore,
a large part of a company's operations strategy is determined at the moment of
make this decision about the process.
Almost every good or service is produced using some variation of one of the four
strategies of the process:
1.-Focus on the process
2.-Repetitive approach
3.-Focus on the product
4.-Mass customization.
The relationship of these four strategies with volume and variety is shown in
the figure.
Figure 1
1.- FOCUS ON THE PROCESS
The vast majority of global production is dedicated to making low-volume products.
and a wide variety of places where 'workshop jobs' are carried out. Such facilities are
they are organized around specific activities or processes.
In a factory, these processes could be the departments dedicated to:
welding
polished
painting
In an office, the processes would be:
accounts payable
Sales
payroll.
In a restaurant, they could be:
Bar
Kitchen
bakery
These facilities are focused on the process in terms of equipment.
distribution and supervision. They provide a high degree of product flexibility
since the products move intermittently between the processes.
Each process is designed to carry out a wide variety of activities and
manage frequent changes.
Consequently, they are also referred to as intermittent processes.
2.- REPETITIVE APPROACH
A repetitive process is classified among the processes that focus on the product and the
process, as we see in figure 1. Repetitive processes use
modules, which are parts or components that are prepared in advance, often
in continuous processes.
The repetitive process line is the classic assembly line. It is widely used in
the assembly of almost all cars and household appliances has more
structure and, consequently, less flexibility than a facility with a focus on the
process.
Fast food companies are an example of a repetitive process that uses
modules.
This type of production allows for greater customization than the continuous process.
the modules (for example, meat, cheese, sauce, tomatoes, onions) are assembled to
to create a nearly personalized product, a cheeseburger. In this way,
the company obtains both the economic advantages of the continuous model (where it
they prepare many of the modules), such as the advantage of model customization
low volume and high variety.
3.- FOCUS ON THE PRODUCT
High volume, low variety processes are focused on the product. The
facilities are organized around products. They are also known as
continuous processes because they have large and continuous production runs.
Products like the following are made through continuous processes.
A facility focused on the product involves high volumes and little variety.
The specialized nature of the installation requires high fixed costs, but the low
Variable costs facilitate the high utilization of the facility.
4.- FOCUS ON MASS CUSTOMIZATION
Mass customization is the fast and low-cost production of goods and services.
that increasingly satisfy the personal desires of the customer. However,
mass customization (see the upper right section of figure 1 not only
refers to the variety, but also to the economical making of what it
the client wants when the client desires.
Achieving mass personalization is a challenge that requires operational capabilities.
sophisticated. The construction of agile processes that produce articles
quickly and inexpensively personalized requires imaginative and dynamic use
of organizational resources. And the link between sales, design, production,
supply chain and logistics must be close
Execution of work for mass personalization The term personalization
massive suggests a system in which products are made to order. 3 The BTO
(Build-To-Order; made-to-order) means to produce according to the
customer orders and not through forecasts.
COMPARISON OF PROCESS ALTERNATIVES
There are advantages across the entire spectrum of processes, and companies can find
strategic advantages in any of them. Each of the processes, when it has
an appropriate correspondence with volume and variety can produce an advantage of
low cost.