PROCESS STRATEGY

A process strategy is an organization’s approach to transforming resources into goods and

services. The objective is to create a process that can produce offerings that meet customer
requirements within cost and other managerial constraints.

Four Process Strategies

1. Process focus is a production facility organized around processes to facilitate lowvolume,

high-variety production.
2. Repetitive focus is a product-oriented production process that uses modules. Modules Parts
or components of a product previously prepared, often in a continuous process.
3. Product focus. High-volume, low-variety processes are product focused. The facilities are
organized around products .
4. Mass customization is the rapid, low-cost production of goods and services that fulfill
increasingly unique customer desires
Four Process Options with an Example of Each

Source: ay Heizer Barry Render,Chuck Munson Operations_Management Book

Making Mass Customization Work

Mass customization suggests a high-volume system in which products are built-to-order. Build-
to-order (BTO) means producing to customer orders, not forecasts. But high-volume build-to-
order is difficult. Some major challenges are:
1. Product Design. Must be imaginative, with limited product lines and modules. Successful
designs balance standardization and customization.
2. Process Design. Requires flexibility to accommodate changes in design and technology.
Manufacturing processes should be agile and adaptable.
3. Inventory Management. Demands tight control to avoid obsolete components. Balancing
stock levels with demand is crucial.
4. Tight Schedules. Essential for tracking orders and materials from design to delivery.
Efficient project management and real-time tracking are necessary.
5. Responsive Partners. Supply chain collaboration is vital. Partners must be able to adapt
quickly to changes in demand or specifications.
Selection of Equipment
Picking the best equipment requires understanding the specific industry and available
processes and technology. To make this decision, operations managers develop documentation
that indicates the capacity, size, tolerances, and maintenance requirements of each option.
Flexibility is the ability to respond with little penalty in time, cost, or customer value. This may
mean modular, movable, or digitally con-trolled equipment. For instance, changes may be
necessary in: purchasing (a different quality of meat, perhaps with more fat content, and
supplies such as charcoal) quality standards (how long and at what temperature the patty will
cook) equipment (the charbroiler) layout (space for the new process and for new exhaust vents)
training, and maintenance.
Process Analysis and Design
1. The first tool is the flowchart , which is a schematic or drawing of the movement of
material, product, or people.
2. A second tool for process analysis and design is a modified flowchart with time added on
the horizontal axis. Such charts are sometimes called time-function mapping, or process
mapping . With time-function mapping, nodes indicate the activities, and the arrows
indicate the flow direction, with time on the horizontal axis.
3. The third tool is the process chart. Process charts use symbols, time, and distance to
provide an objective and structured way to analyze and record the activities that make up a
process. 1 They allow us to focus on value added activities.
4. Value-stream mapping (VSM) A process that helps managers understand how to add
value in the flow of material and information through the entire production process.
5. Service blueprinting. A process analysis technique that lends itself to a focus on the
customer and the provider ’ s interaction with the customer.
Special Considerations for Service Process Design
1. Separation. Separation involves structuring services so customers must go to specific
locations for different services. For example, in banks, customers visit managers to open
new accounts, loan officers for loans, and tellers for deposits.
2. Self-service. Self-service allows customers to examine, compare, and complete
transactions at their own pace. Examples include supermarkets, department stores, and
internet ordering.
3. Postponement. Postponement involves customizing at delivery rather than during
production. An example is customizing vans at delivery instead of during manufacturing.
4. Focus. Focus refers to restricting offerings, as seen in limited-menu restaurants. By
narrowing the range of services, businesses can excel in specific areas, improve quality,
and increase operational efficiency.
5. Modules. Modules involve modular selection of services or modular production. Examples
include investment and insurance selection, and prepackaged food modules in restaurants.
6. Automation. Automation involves separating services that lend themselves to some type
of automation, such as automatic teller machines.
7. Scheduling. Scheduling focuses on precise personnel scheduling, exemplified by
scheduling airline ticket counter personnel at 15-minute intervals.
8. Training. Training involves clarifying service options and explaining how to avoid
problems. Examples include training for investment counselors, funeral directors, and after-
sale maintenance personnel.
Production Technology
1. Machine Technology that is closely RFID related to operational activities.
2. Automatic Identification Systems (AISs) and technology. New control for
manufacturing machines through digital electronic signals
3. Process Control. The use of information technology to monitor and control physical
processes.
4. Vision Systems a system that uses video cameras and computer technology.
5. Robot. a production tool designed to facilitate humans work.
6. Automated Storage and Retrieval Systems (ASRSs)
7. Automated Guided Vehicles (AGVs) material handling systems that transport goods or
materials within a controlled environment without the need for a human operator or driver.
8. Computer Integrated Manufacturing (CIM). Use of computers to control the entire
production process.
Technology In Service
Technology has transformed the service industry across various sectors. In finance, digital
banking and online trading have simplified transactions and expanded investment access.
Education has seen global reach through online platforms. Healthcare utilizes patient
monitoring systems and robotic surgery to improve care. Hospitality employs electronic
systems for efficiency. Digital training enhances workforce development. These innovations
have created more automated, data-driven, and user-centric service models, reshaping both
customer expectations and business operations in today's digital age.
Process Redesign
Process Redesign is the rethinking of fundamental business processes to bring about
dramatic performance improvements. A typical process redesign example is transforming a
paper-based invoice system to a digital one. The original process involves manually receiving,
entering, routing, and filing paper invoices, followed by manual payment processing. The
redesigned process utilizes electronic invoices, OCR technology for data extraction, digital
approval workflows, cloud storage, and automated payments. This streamlined approach
reduces manual labor, accelerates processing times, minimizes errors, and enhances
information accessibility and tracking, ultimately improving efficiency and accuracy in
accounts payable operations.