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Four Types of Process Strategies - Opera

The document outlines four types of process strategies: repetitive process focus, product focus, mass customization, and process focus. Each type is characterized by factors such as volume and variety of products, equipment used, employee skills required, inventory levels, movement of units through the plant, scheduling complexity, and cost structure. The strategies differ primarily in whether they emphasize high or low volume, variety, and the use of flexible or specialized equipment and processes.

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fatin izzati
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1K views

Four Types of Process Strategies - Opera

The document outlines four types of process strategies: repetitive process focus, product focus, mass customization, and process focus. Each type is characterized by factors such as volume and variety of products, equipment used, employee skills required, inventory levels, movement of units through the plant, scheduling complexity, and cost structure. The strategies differ primarily in whether they emphasize high or low volume, variety, and the use of flexible or specialized equipment and processes.

Uploaded by

fatin izzati
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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FOUR TYPES OF PROCESS STRATEGIES

PROCESS
FOCUS

REPETITIVE
FOCUS

PRODUCT
FOCUS

MASS
CUSTOMIZATION

Low volume,
High variety

Modular

High-volume,
low-variety

High-volume,
high-variety

Small quantity, large


variety of products

Long runs,
standardized product,
from modules

Large quantity, small


variety of products

Large quantity, large


variety of products

General purpose
equipment

Special equipment
aids in use of
assembly line

Special purpose
equipment

Rapid change over on


flexible equipment

Broadly skilled
operators

Modestly trained
employees

Operators less
broadly skilled

Flexible operators
trained for
customization

Many instructions
because of change in
jobs

Reduced training and


number of job
instructions

Few work orders and


job instructions

Custom orders
require many
instructions

Raw material high


relative to product
value

JIT techniques used

Raw material low


relative to product
value

WIP high relative to


output

JIT techniques used

WIP low relative to


output

Units move slowly


thru plant

Movement measured
in hours & days

Units move swiftly


thru facility

Goods move swiftly


thru facility

Finished goods made


to order, not stored

Finished goods made


to frequent forecasts

Finished goods made


to forecast, then
stored

Finished goods made


to order

Scheduling complex
and concerned with
trade-off between
inventory, capacity,
and customer service

Scheduling based on
building models from
a variety of forecasts

Scheduling relatively
simple, concerns
establishing sufficient
rate of output to meet
forecasts

Scheduling
sophisticated to
accommodate
customization

Fixed costs low,


variable costs high

Fixed costs
dependent on
flexibility of facilities

Fixed costs high,


variable costs low

Fixed costs high;


variable costs must
be low

Costs usually known


based on experience

Because of high fixed


High fixed costs and
costs, cost dependent
dynamic variable
on utilization of
costs
capacity

Costing, done by job,


is estimated prior to
doing job but only
known after doing job

Raw material low


relative to product
value
WIP driven down by
JIT, kanban, lean
production

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