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