Is a rapid low cost production process that caters to constantly changing unique customer desires?

156

CHAPTER 7: PROCESS STRATEGY

TRUE/FALSE

1.Dell's approach to personal computer manufacturing is to use a product focus, which gives the

company its low-cost competitive advantage.

False (Global company profile, easy)

2.A firm's process strategy is its approach to transforming resources into goods and services.

True (Introduction, easy)

3.Intermittent processes are organized around processes.

True (Four process strategies, easy)

4.In process-focused facilities, equipment utilization is low.

True (Four process strategies, moderate)

5.The typical full-service restaurant uses a product-focused process.

False (Four process strategies, moderate)

6.Harley-Davidson, because it has so many possible combinations of products, utilizes the process

strategy of mass customization.

False (Four process strategies, moderate)

7.A value-stream map includes both (1) inventory quantities, and (2) symbols for customers and

suppliers.

True (Process analysis and design, moderate)

8.The assembly line is a classic example of a repetitive process.

True (Four process strategies, easy)

9.One essential ingredient of mass customization is modular design.

True (Four process strategies, moderate)

10.The tool that calculates which process has the lowest cost at any specified production volume is a

crossover chart.

True (Four process strategies, moderate)

11.The term focused processes refers to the quest for increased efficiency, whether in goods or

services, that results from specialization.

True (Four process strategies, moderate)

12.Service blueprinting is a process analysis technique that focuses on the customer and the provider's

interaction with the customer.

True (Process analysis and design, moderate)

13.Activity times should not be included in a service blueprint.

False (Process analysis and design, moderate)

Running Head: COMPARATIVE PROCESS ANALYSISComparative Process AnalysisOMGT 5003 – Introduction to Operations ManagementUniversity of Arkansas

2COMPARATIVE PROCESS ANALYSISExecutive SummaryThe four process strategies are process focus, repetitive process, product focus, and mass customization focus. Process focus organizes around low volume but high variety production. The repetitive process uses modules, which are previously prepared products, often used in a continuous process. When a process is organized around high volume but low variety of products, this is called product focus. And lastly, mass customization focus is a rapid, low-cost production that pursues constantly changing customer desires. HOMAG, Stanley Healthcare, andHarley Davidson each use specific process strategies. HOMAG utilizes the mass customization focus, while Stanley uses process focus, and Harley Davidson leverages the repetitive process.The suggestion to move HOMAG, Stanley Healthcare, and Harley Davidson to a productfocus strategy is not recommended for all three companies. If each company were to switch tothis strategy, tremendous consequences would be faced. HOMAG profits from customer’sfreedom to order exactly what they want, which would be taken away in a product focus strategy.This is similar to Harley Davidson, which offers an individualized product for their customers.Stanly Healthcare would be forced to focus on the limits of different services they offer.

3COMPARATIVE PROCESS ANALYSISIntroductionHOMAG, Stanley Healthcare’s Florida Hospital, and Harley Davidson have each created wildly successful businesses. German company HOMAG, builds high quality customized office furniture and has been in business for 60 years. Stanley Healthcare creates medical systems that monitor movement and activity around a patient care process. And motorcycle manufacturer Harley Davidson has become one of the most recognizable American brands. Each of these companies utilizes different process strategies that they’ve based their business around. A processflowchart map can describe the systems for HOMAG and Stanley Healthcare, starting with customer input and registration working towards a finished product and patient discharge to help explain their process strategies. Each of these companies utilizes a specific process strategy that complements their product, and movement to different strategies could be damaging to their business.

4COMPARATIVE PROCESS ANALYSISFlowcharts

5COMPARATIVE PROCESS ANALYSISFour Process StrategiesThe first process strategy is process focus. Process focus is organizing around low volume, high variety production. (Heizer, Render, Munson, p.282) This means the processes are highly flexible with the restriction of not being able to produce a lot of volume. Think of a restaurant. A typical restaurant likely has 150 spots for seating available. If customers are spending an hour or two (or three) taking up space, the number of units (in this case, meals) that

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Stanley Healthcare, HOMAG

Is a rapid low cost production process that caters?

What are the 4 types of process strategy?

Which process strategy is high volume low variety and continuous process?

Is a process analysis technique that focuses on the customer and the producers interaction with the customer?