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Process Strategy NOTES

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Shaheryar Rashid
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10 views

Process Strategy NOTES

Uploaded by

Shaheryar Rashid
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Process Strategy: Process strategy refers to the plan or approach that an

organization adopts to produce goods or services efficiently and effectively. It


involves making decisions about how to structure and manage processes within
the organization to achieve its objectives.
Types of Process Strategy:
1.Process Focus:
In this approach, equipment, resources, and workers are grouped together
based on the similarity of their functions. This allows for the efficient production
of a wide variety of products or services. Example include hospitals where
different departments specialize in specific treatments or procedures.
2.Repetitive Focus:
In this approach, facilities are organized to efficiently produce large volumes of
similar items. Production processes are often designed for high-speed, high-
volume operations, frequently used to achieve economies of scale. Examples
include assembly lines in manufacturing plants.
3.Product Focus:
In this approach, resources are dedicated to the design, production, and
marketing of a limited range of products. Production processes are tailored to
the unique requirements of each product, allowing for flexibility and
responsiveness to customer demands. Examples include boutique clothing
stores that produce customized products.
4.Mass Customization:
In this approach, standardized components are produced in high volumes, but
the final products are customized according to customer preferences. This
allows for economies of scale in production while offering customers the
flexibility to personalize their products. Examples include computer
manufacturers that offer customizable hardware components.
Comparison of Processes:
Process Focus Repetitive Focus Product Focus Mass Customization
High variety, low Low variety, high Medium to low High variety, high
volume volume variety, medium volume
volume
High flexibility to Limited flexibility Moderate Flexibility to
handle custom due to flexibility to adapt customize products
orders standardized to changes in
processes product lines
Higher production Generally lower Moderate Higher production
cost production cost production cost cost due to
complexity
Raw material JIT technique is Raw material Raw material
inventory level is used inventory level is inventory level is
high low low
Employees are Employees are Employees are Employees are
skilled moderately less skilled trained for specific
trained purpose
Work in process is JIT technique is Work in process is JIT technique is used
high used low

Cross-over Charts:
Crossover charts are graphical representations used to compare two or more
alternative processes or strategies in terms of their total costs or other relevant
metrics. Crossover charts are particularly useful for decision-making in areas
such as process selection, capacity planning, and outsourcing.
Focused Processes vs Changing Processes:
Focused processes are those activities or operations within an organization that
are specifically designed to serve a particular purpose, product, market
segment, or customer group. By concentrating resources and efforts on specific
areas, organizations can achieve higher levels of efficiency, quality, and
customer satisfaction.
Changing processes refer to activities or operations within an organization that
are undergoing transformation or improvement. Changing processes typically
involve initiatives such as process reengineering, continuous improvement, or
innovation to enhance efficiency, effectiveness, and competitiveness.
Baseline vs Target Time Function Mapping:
Baseline time function mapping involves the analysis of the current time
required to complete various activities or processes within an organization. It
provides a detailed understanding of how time is spent at each stage of a
process.
Target time function mapping establishes the desired time frame for
completing activities or processes based on organizational goals. Target time
function mapping serves as a guide for implementing changes and
enhancements to achieve desired outcomes.

Service blueprinting:
Service blueprinting is a method used in service design and management to
visually map out the processes, touchpoints, and evidences involved in
delivering a service. It provides a comprehensive view of the service journey
from both the customer's and provider's perspectives.

Service process design:


Service process design involves the planning, structuring, and organization of
activities and resources to deliver a service efficiently and effectively while
meeting customer needs and expectations.

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