COMMERCE 2OC3 Study Guide - Midterm Guide: Carbon Footprint, Flowchart, 3D Scanner
5 Jun 2018
School
Department
Course
Professor
A process strategy is an organization's approach to transforming resources into G&S.
Type of
Process
Strategy
Characteristics
Examples
Pros and Cons
Process focus
(job shop)
Facilities organized by process with similar
activities or equipment grouped together
•
High variety, low volume products follow
different paths
•
General purpose equipment used by broadly
skilled operators
•
Make-to-order, not make-to-stock
•
Hospital
•
Restaurant
kitchen
•
Amusement park
•
Farm
•
Flexibility
•
Ability to customize
•
Difficulty scheduling and controlling
•
Low utilization of resources
•
High variable costs
•
High WIP compared to output
•
Product
focus
Facilities often organized by product
•
Long, continuous production lines
•
High volume, low variety
•
Specialized equipment with less skilled labour
•
Few inputs with output variation in size, shape,
and packaging
•
Potato chip
manufacturing
•
Gasoline industry
•
Glass
•
Paper
•
Farm products
•
Low variable cost
•
Fast flow
•
Easier production scheduling and control
•
High equipment utilization
•
High WIP compared to output
•
Low flexibility
•
High fixed cost compared to product
value
•
Repetitive
focus
Facilities often organized by assembly lines
characterized by modules
•
Assembly of many pre-made G&S
•
Balance between cost and variety
•
Economic advantages of the product focus model
and custom advantage of process model
•
Car assembly
•
Household
appliances
•
Fast food
restaurants
•
Mass focus
Rapid, low-cost production of G&S to satisfy
increasingly unique customer desires
•
Combines the flexibility of a process focus with
the efficiency of a product focus
•
Combines variety provided by process focus, low
cost of standardized high-volume in product
focus, and use of modules in repetitive focus for
more variety with less cost
•
Built-to-order instead of forecast
•
Very hard to achieve
•
3D scanning and
printing for
custom footwear
•
Challenge: must be innovative and
flexible
•
Adidas Futurecraft 4D
•
Soft contact lenses
•
Orthodontic appliances
•
Custom-built PC's
•
Comparison of Strategies
Ask if the process is designed to achieve competitive advantage, maximize customer value, win orders,
and eliminate steps that do not add value
•
Process Analysis and Design Tools
Process Analysis and Theory of Constraints
January 19, 2018
2:34 PM
Operations Management Page 1
Document Summary
A process strategy is an organization"s approach to transforming resources into g&s. Facilities organized by process with similar activities or equipment grouped together. High variety, low volume products follow different paths. General purpose equipment used by broadly skilled operators. Few inputs with output variation in size, shape, and packaging. Facilities often organized by assembly lines characterized by modules. Economic advantages of the product focus model and custom advantage of process model. Rapid, low-cost production of g&s to satisfy increasingly unique customer desires. Combines the flexibility of a process focus with the efficiency of a product focus. Combines variety provided by process focus, low cost of standardized high-volume in product focus, and use of modules in repetitive focus for more variety with less cost. Ask if the process is designed to achieve competitive advantage, maximize customer value, win orders, and eliminate steps that do not add value. Flowchart describes the flow of material, products, people.
