UGBA 10 Lecture Notes - Lecture 4: Soy Milk, Capital Intensity, High High

• School: Berkeley
• Department: Business Administration Undergraduate Program
• Course: UGBA 10
• Professor: John Briginshaw

Document Summary

****4 decisions of process strategy: process structure (layout), customer involvement, Customer involvement (ci): especially important if customer contact is high. Sbucks has designed its processes so that it can offer thousands of diff. drinks at the same location (no whip, double shot, soy milk --- literally thousands of combinations, very high customization) Cups are designed so that cashier can convey detailed order simply and effectively using universal code (sm = soy milk, wc = whipped cream, etc. ) Advantages of high ci: better quality, faster delivery, greater flexibility, lower cost, supply chain coordination, collaboration. Disadvantages of high ci: disruption, inefficiencies, quality implications, higher cost of added training and skill level of service providers, revisions to facility layout, decentralized facilities. Resource flexibility (rf): high task divergence and variable process flows require more flexibility of the process" resources; its workforce, equipment and facilities. Flexibility is the ease with which employees/equipment can handle wide variety of products, output levels, duties and functions.