MAN4504 Process Stategy PDF

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Summary and practical examples about the concepts learned in class and in the book....

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MAN 4504 Process Strategy and Sustainability Summary We will be talking about utilizing capacity at its full in all time period of the year, because infrastructure investment was made and there is capacity to be utilized Focus Cells: cells in the production line in which people are specialized in that specific cell

Process Strategies To build a production process that meets requirements specifications within cost and other managerial constraints.

Process Focus Customized processes that is characterized by a low volume and high variety. That means that there is a lot of customization for each different product or service, so the product or service is more expensive and not many are made / performed. High skill labor, many different types of outputs

Repetitive It a medium in production and customization. A good example can be the creation of the car in which they are not made in so huge volume but there is a consistency in the final product. Medium skill labor, some outputs

Product Focus High volume and low customization. People want and expect for it to be the same every time the product is purchased. For example, ketchup, pringles, seasoning. Low skill labor, one same output.

Mass customization High volume and high customization, but it is expensive and requires automation of many areas inside the production line. The use of technology to provide customized products to different individuals at a high volume.

Crossover Charts

Changing Processes Difficult and expense because the company already spent all the money to start it. Then the new process might need new equipment again and it goes from there.

Process Analysis and Design – Will be on exam asking for the differences, which will be best used Time-Function Map: the amount of time it takes for the order to the final customer.

Target Time-Function Map: the amount of time it takes for the order to the final customer.

Value Stream Mapping Value is added to the production process, including the supply chain. Value added time: taking raw material and converting it into a finished good NO SERVICE BLUEPRINT

RFID IDs used to keep track of what is happening or what is inside, or where it is. Used in marathons and shipping containers to know what’s inside

Vision Systems Check the products to shape, cooking period, and get rid off bad products.

Bottleneck constraint analysis Throughput: the number of units a facility can hold, receive, store, or produce in a period of time. Throughput = Actual output Design capacity: the maximum theoretical output of a system. Effective capacity: the actual capacity a firm expects to achieve given the current operating constraints Utilization: % of design capacity achieved. 

Actual output/Design capacity

Efficiency % of the effective capacity achieved 

Not going to b h

Actual output/Effective capacity

Activity Time: The time it takes for a unit to be completed – WILL BE ON THE EXAM LIKE THIS Classic Exam question: What is my capacity to make skateboards? Utilization of stations: throughput of stations (bottleneck of stations) / capacity of station A: 12/20 = 60% utilized B: 12/12 = 100% utilized C: 12/15 = 80% Cycle time Efficiency: Cycle time of processes/Act cycle time in total – going to be on the exam, lecture 9 20~43

Break-Even Analysis: to know the number of units required to break even at that specific fixed cost and contribution Fixedcost/ Contribution or Fixedcost/(Sales-Variable cost) Break-even point In dollars in a multiproduct case

EXAM QUESTIONS...