Bài giảng môn Quản trị kinh doanh - Chapter 4: Processes: turning resources into capabilities

Chapter 4Processes: Turning Resources into Capabilities1Learning ObjectivesDescribe the functions and importance of concurrent engineering for product and service design.Describe the service system design matrix and understand the relationships between sales opportunities, customer contact, and process efficiency.Describe the quality function deployment processes.Describe the component matrices in the house of quality.Use the house of quality to structure quality function deployment.Differentiate between lean production, value stream mapping, Six Sigma, business process analysis, reengineering, and poka-yoke.Construct a process flow chart.Construct a service blueprint.2Process DefinitionA process is a collection of tasks and activities that together, and only together, transform inputs to outputs. Processes are organizing structures for resources, which provide the bridge between resources and capabilities.3Process Decisions and Process ChoiceProcess decisions range from strategic to tacticalMany require long-term investmentsAll affect the firm’s ability to compete4General Layout AlternativesProduct-oriented layoutProcess-oriented layoutCellular layout5General Layout DecisionsThe product-oriented layoutProvides resources in a fixed sequenceMatches the sequence of steps required to produce a product or serviceCommon in high-volume manufacturing6Product Oriented LayoutAdvantagesEfficient production of standardized goods and servicesHigh processing speedLow cost per unitDisadvantagesLack of flexibility or customizationEmployee boredom/ dissatisfactionQuality problems7Process Oriented LayoutProcess-oriented LayoutOrganized by functionProcessing steps can be completed in any sequenceProducts or customers can take any “route” necessary.8Process Oriented LayoutAdvantages Flexibility and customizationDisadvantagesHigher cost per unitHigher skilled, high cost employeesTransport/wait time between departments Less consistency9Cellular LayoutsCellular layoutsA compromise of product and process layoutsCreate “families” of products with similar process requirementsA “cell” contains all resources needed for family10Cellular LayoutsAdvantagesFlexibility greater than a product-oriented layoutLess costly than a process-oriented layout Less material transport/waitFewer changeoversDisadvantagesDuplication of resources11Choices for Manufacturers: The Product/Process MatrixProcess TypesProject – Unique, one-of-a-kind, products or customers. Generally large in size (building a bridge, installing a software system, implementing a major improvement effort)Job Shop – Predominantly manufacturing, high customization and flexibility, but higher volume than project.Batch Production – Groups of identical products or customers processed together through one step and then moved together to the next step. More limited product variety, higher production volume.12Process Types (continued)Assembly Line – Narrowly defined processes, made up of equipment with limited flexibility. Much higher volume. Still the possibility of some flexibility.Continuous Flow (Repetitive)– Equipment and workstations dedicated to a single thing. Very high volume. Very low flexibility. Best chance for automation.Choices for Manufacturers:The Product/Process Matrix13Process flow selection and theProduct Process MatrixTend to be product-orientedCan be eitherTend to be process-oriented14Manufacturers match output to demand in different waysMake-to-stock (MTS)Process activated to meet expected or forecast demandCustomer orders are served from target stocking levelShorter lead time for stocked itemsMUCH longer for out of stock itemsRisk of obsolescence, shrink, etc.Make-to-order (MTO)Process activated in response to an actual orderMay be either standard or custom productWIP and finished goods inventory kept to a minimumTends to have longer response timeOther Process Choices: Demand Linkage15Other Process Choices: Demand LinkageAssemble-to-order (ATO)Partially manufactured and held in unfinished stateCustomer order dictates final configurationQuicker response than MTO; More flexible than MTS16Exhibit 4.7 Service System Design MatrixChoices for Service Providers:The Service System Design MatrixCustomer contact & sales opportunity versus efficiency.17Linking Customer Needs to Product/Process Attributes - Quality Function Deployment (QFD)Process design is as important as product design Products and/or services must meet customer needsProcesses must meet product and/or service needs18Quality Function Deployment: Phase 1 ExamplePhase 1: Product PlanningTranslating customer wants and needs into technical design parameters that can guide development of products and services.19The relationships between the WHATs and the HOWsWHAT customers wantHOW it can be achieved, in measurable technicaltermsThe relationships among the HOWsPerformance Goals for the HOWSThe “House of Quality” Supports QFD by providing a structured framework for linking customer to product and process20Relative importance of the WHATsPerformance on WHAT’s relative to competitorsPerformance goals achieved by competitorsRelative importance of performance goal to delivery of customer wantsThe “House of Quality” links to competitors21WHATSHOWSRelationshipsbetween WHATsand HOWSRelationships amongHOWSGoals for HOWSPhase 1 House of Quality22Quick delivery is most important to customersPhase 1 House of Quality (continued)It is also somethingMary is very goodat.It is measured inminutesThe goal is < 20 minutesANDIt can affect howhot a pizza is when it arrives23The House of QualityThe “House” is used repetitively to drive customer requirements closer to the product and process design.“Hows” from prior phase become “Whats” of current phasePhase 2Part DeploymentPhase 3Process PlanningPhase 4Production PlanningPhase 1 Product Planning24Phase 2 House of Quality (continued)Phase 2: Part DeploymentTechnical design parameters provide information to guide the development of the components of the product or service.25Phase 3: Process PlanningBased on component characteristics, processes are designed.Specifying process requirementsSpecific decisions on resource allocation and configurationPrioritizing process requirementsAnalyzing competitive offeringsPhase 3 House of Quality26The House of QualityPhase 4: Production PlanningProcess requirements are used to design a system that will control the process and make sure it continues to meet expectations. The result is a discernable and measurable link betweenThe “wants” of the customer and the design of the product or servicePhase 2Part DeploymentPhase 3Process PlanningPhase 4Production PlanningPhase 1 Product Planning27New Product and New Service DevelopmentDesign for manufacture and assembly (DFMA)Product and process engineers consult to ensure that the product can be produced easily and at low costDesign for logistics (DFL)Product design considers costs associated with transportationDesign for environment (DFE)Product design includes environmental concerns such as the manufacturing process, packaging issues, disposal, refurbishing, and recyclingConcurrent engineeringThe ultimate in integrating process design and new product or service design28A Closer Look at Concurrent EngineeringPerforming product and service development engineering functions in tandem to reduce time and improve communication.29Process Improvement ToolsProcess MapsA visual model of a process30Process Improvement Tools (continued)Value Stream MappingA common “lean systems” toolExamines entire value stream for waste31Process Improvement Tools (continued)Service Blueprints32Business Process AnalysisFocus on processes that cross functional boundaries and transitions between departmentsIdentified nonvalue-adding activitiesOther Process Improvement Tools33ReengineeringClean slate Focus on behind-the-scenes activitiesHigh use of technologyHigh rate of use in the service sectorOther Process Improvement Tools34Process selectionIdentify potential areas for improvement based on need and likelihood of successDescription of current processUsing process flow diagram techniques, describe, precisely, the current processProcess improvementIdentify new ways to accomplish the process goalsTechnology is often used as a catalyst for improvement“Technology-enabled reengineering”Process verificationIdentify problems with the proposed changes and ensure that they can be eliminatedImplementing and monitoringMake the changes and monitor the results for effectivenessReengineering steps35Other Process Improvement ToolsPoka-YokeMistake-proofing products and servicesPreventing errors, reducing costs and improving qualityDesign to prevent doing it any but the correct wayMcDonald’s wrapping of burgerCar won’t start unless transmission is in “Park”“Deadman switch” on lawn mower36Broad Improvement FrameworksLean SystemsOrganization-wide waste eliminationEvolved from JITCovered extensively in Chapter 13Six SigmaStructured quality improvement processTraining intensiveElimination of variability is focusCovered Extensively in Chapter 637