2. Note on the use of these slides These slides provide the
basic theory that I would like you to know. There are many more
techniques on the slides that came with the textbook, which are
also available on eFundi. As I talk you through this slide show,
please stop where you don't understand, go to either the textbook
(Heizer and Render) or the Heizer & Render slides and make sure
you understand them. If you still do not understand, on the first
page that you have to submit is space for you to tell me what you
do not understand so that I can cover it in class. Once you have
gone through the slides, go to the template on eFundi and prepare
your submissions for the next contact session.
4. Outcomes for today's contact OUTCOMES OF THEME G Interpret
the product-process matrix using real-life companies Master the
theory of the service-process matrix and interpret the matrix using
real-life organisations. Use process analysis techniques to
critically analyse existing real-life manufacturing and service
processes Demonstrate a thorough understanding of the concepts by
applying the theory to a real-life organisation. OUTCOMES OF THEME
H Understand the basic layout configurations Demonstrate a thorough
understanding of the concepts by applying the theory to a real-life
organisation.
5. Chapter 7 Theory Process strategy
6. Basic work flow structures Project layout Workcenter
Manufacturing cell Assembly Line Continuous process
7. Product-Process Matrix Source: Chase & Jacobs 2013
Manufacturing cell Batch process Assembly line Continuous
process
8. Process, Volume, and Variety Process Focus projects, job
shops (machine, print, carpentry) Standard Register Repetitive
(autos, motorcycles) Harley-Davidson Product Focus (commercial
baked goods, steel, glass) Nucor Steel High Variety one or few
units per run, high variety (allows customization) Changes in
Modules modest runs, standardized modules Changes in Attributes
(such as grade, quality, size, thickness, etc.) long runs only Mass
Customization (difficult to achieve, but huge rewards) Dell
Computer Poor Strategy (Both fixed and variable costs are high) Low
Volume Repetitive Process High Volume VolumeFigure 7.1
9. p258 Source: Chase & Jacobs
10. Service Factory Service Shop Degree of Customization Low
High DegreeofLabor Low High Mass Service Professional Service
Service Process Matrix Commercial banking Private banking General-
purpose law firms Law clinics Specialized hospitals Hospitals
Full-service stockbroker Limited-service stockbroker Retailing
Boutiques Warehouse and catalog stores Fast-food restaurants
Fine-dining restaurants Airlines No-frills airlinesFigure 7.11
11. Process flowcharting Defined Process flow diagrams is the
use of a diagram to represent the main elements of a process The
basic elements can include operations, material or customer flow,
decision points, storage areas and queues A flow diagram is an
ideal method to start process analysis
12. Goldratts Goal of the Firm The goal of a firm is to make
money
13. Performance Measurement: Operational 1. Throughput the rate
at which money is generated by the system through sales 2.
Inventory all the money that the system has invested in purchasing
things it intends to sell 3. Operating expenses all the money that
the system spends to turn inventory into throughput
14. Goldratts Theory of Constraints (TOC) Identify the system
constraints Decide how to exploit the system constraints
Subordinate everything else to that decision Elevate the system
constraints If, in the previous steps, the constraints have been
broken, go back to Step 1, but do not let inertia become the system
constraint
15. Other Proses Terminology Blocking Occurs when the
activities in a stage must stop because there is no place to
deposit the item just completed If there is no room for an employee
to place a unit of work down, the employee will hold on to it not
able to continue working on the next unit Starving Occurs when the
activities in a stage must stop because there is no work If an
employee is waiting at a work station and no work is coming to the
employee to proses, the employee will remain idle until the next
unit of work comes
16. Chapter 9 Theory Layout
17. Innovations at McDonalds Indoor seating (1950s)
Drive-through window (1970s) Adding breakfast to the menu (1980s)
Adding play areas (late 1980s) Redesign of the kitchens (1990s)
Self-service kiosk (2004) Now three separate dining sections Six
out of the seven are layout decisions!
19. Your assignment Step 1: Make sure you understand the
concepts that are covered in this slide show. If necessary, go
through it again or study the textbook. The slides by Heizer &
Render (available on eFundi) also give valuable extra information.
Step 2: Prepare a one-page summary of the theory. Make sure it fits
into the template in the study guide. Remember to make a note of
those issues that you want explained in class. Step 3: Find out how
processes are managed in your organisation. Give a one-page summary
on the template. Step 4: Critique the way processes are designed
and managed in your organisation. Where necessary, suggest
improvements. Give a one-page summary on the template. (If there
are diagrams, you are allowed a fourth page for them). Step 5:
Submit your three-page report on efundi before Thursday night
23:59. This counts towards your individual assignment and your
final pass mark! Step 6: For your group assignment, prepare a
three-slide PowerPoint show: Slide 1: Briefly present the essence
of processes and layout to your community organisation. Slide 2:
Explain the processes and flow in their business venture. Slide 3:
Give them advice on how to improve their processes. Use the
template that is on eFundi. One group member must submit on efundi
before Thursday night 23:59 as well! Names of both documents must
be as indicated in your study guide.
