1. Process strategy is the organization’s approach to transforming resources into goods and services. 2. Product Beer Wedding invitations Automobiles Paper “Big Mac” Custom Homes Likely Process Product Focused/Continuous Process Focused/Job Shop Modular/Repetitive Product Focused/Continuous Modular/Repetitive Job Shop with components made in Product Focused and Modular facilities Modular/Repetitive
Manufacturing ﬁrms in each of the process models:
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Process focus, your local print shop and Kinko’s Repetitive focus, Harley-Davidson Product focus, International paper Mass customization, Dell Computer
10. Competitive advantage of manufacturing ﬁrms in each of the process models: I
Process focus, differentiation, and expertise in each process area. (Kinko’s) Repetitive focus, rapid response, and efﬁciency (HarleyDavidson) Product focus, very low variable cost (International Paper) Mass customization, low cost, rapid response to unique customer demands. (Dell Computer)
3. Service blueprinting is a process analysis technique that focuses on the provider’s interaction with the customer. 4. Process reengineering is the rethinking and radical design of business processes to bring about dramatic improvements in performance. 5. Techniques for improving service productivity include: separation, self-service, postponement, focus, modules, automation, scheduling, and training. 6. The 4 quadrants are: (1) mass service (low interaction/customization; high labor intensity) (2) professional service (high interaction/customization; high labor intensity) (3) service factory (low interaction/customization; low labor intensity) (4) service shop (high interaction/customization; low labor intensity). 7. CIM (computer integrated manufacturing), in its ideal, but seldom realized form, ties together computer-aided design (CAD), computer – aided manufacturing, ﬂexible manufacturing systems (FMS), the necessary automated storage and retrieval systems (ASRS) and movement of materials (automated transfer machines or automated guided vehicles – AGVs) to make it all work. 8. In process control systems sensors collect data; analog devices read data on a periodic basis; measurements are digitized and transmitted to a computer; data are analyzed; and output is presented in various signals, charts, diagrams, messages, etc.
11. Students may ﬁnd Figure 7.1 and Figure 7.10 and the related discussions helpful with this question. Service ﬁrms in each of the process models: I
Process: your local general-purpose hospital. Also most construction ﬁrms, such as Bechtel Repetitive: fast-food restaurants Product: Shouldice Hospital. Mass customization: cafeterias and e-trade stockbrokers such as Schwab Process focus for a general-purpose hospital: specialization of expertise in each hospital discipline, x-ray, physical therapy, blood lab, etc., by both the technician and supervision. Repetitive focus: high-quality modules as in most fastfood (very limited menu) restaurants, and law clinics— with the low cost of the uncontested divorce. Product focus: Southwest Airlines and e-trade stockbrokers may be good examples of low-cost advantage. Mass customization, per the text, McDonald’s is trying this in a limited way. Charles Schwab seems to be effective at this in the ﬁnancial services areas. They seek competitive advantage via low cost and high customization.
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Competitive advantage of service ﬁrms in each process model: I
13. Numerically controlled machinery means the equipment is computer controlled via programming languages known as APT and Compact II. Machinery with its own programmable computer
is sometimes called computer numerically controlled (CNC), implying that there is computer memory at the machine. Machines that are wired to a central machine are sometimes...