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Process Strategy: Powerpoint Slides by Jeff Heyl

The document discusses four basic process strategies: process focus, repetitive focus, product focus, and mass customization. It provides details on each strategy, including how facilities may be organized and examples of companies that use each strategy.

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0% found this document useful (0 votes)
216 views13 pages

Process Strategy: Powerpoint Slides by Jeff Heyl

The document discusses four basic process strategies: process focus, repetitive focus, product focus, and mass customization. It provides details on each strategy, including how facilities may be organized and examples of companies that use each strategy.

Uploaded by

Muizz
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
  • Introduction to Process Strategy
  • Overview of Process Strategies
  • Basic Process Strategies
  • Process Focus
  • Repetitive Focus
  • Product Focus
  • Mass Customization

Process Strategy

PowerPoint slides by Jeff Heyl

2014 Pearson Education, Inc.

Process Strategy
The objective is to create a process
to produce products that meets
customer requirements 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

Low volume and high variety

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

Facilities are organized around specific


activities or processes

Process Focus

(low-volume, high-variety,
intermittent processes)

Many inputs
(surgeries, sick patients,
emergencies)

Many departments and


many routings

Arnold Palmer 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

Repetitive
Focus

Raw materials and


module inputs
(multiple engine models,
wheel modules)

Few
modules

(modular)
Harley Davidson

Figure 7.2(b)

Modules combined for many


Output options
(many combinations of motorcycles)

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

Product Focus

Few Inputs
(corn, potatoes, water,
seasoning)

(high-volume, low-variety,
continuous process)
Frito-Lay

Figure 7.2(c)

Output variations in size, 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

Mass
Customization

Many parts and


component inputs
(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

Flexible process design

Tightly controlled inventory


management

Tight schedules

Responsive supply-chain partners

Process Strategy
PowerPoint slides by Jeff Heyl
77
© 2014 Pearson Education, Inc.
Process Strategy
The objective is to create a process 
to produce products that meets 
customer requirements within cost 
and
Process Strategies
►How to produce a product or provide a 
service that
►Meets or exceeds customer requirements
►Meets cost a
Process Strategies
Four basic strategies
1. Process focus
2. Repetitive focus
3. Product focus
4. Mass customization
Within t
Process Focus
►Low volume and high variety
►General purpose equipment and skilled 
personnel
►High degree of product flexibil
Process Focus
Many inputs
(surgeries, sick patients, 
 emergencies)
Many different outputs
(uniquely treated patients)
Many d
Repetitive Focus
►Facilities often organized as assembly 
lines
►Characterized by modules with parts 
and assemblies made pre
Repetitive 
Focus
Raw materials and 
module inputs
Modules combined for many
Output options
(many combinations of motorcycles
Product Focus
►Facilities are organized by product
►High volume but low variety of 
products
►Long, continuous production run
Product Focus
Few Inputs
(corn, potatoes, water, 
seasoning)
Output variations in size, shape, 
and packaging
(3-oz, 5-oz, 24

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