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Managing theTransformation Process
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The physical layout and the transformation process
that an organization employs are critical factors for
strategic operations management. This is becauseboth the layout and, more specifically, the process
transformation process (or process choice as it is
sometimes called) provide massive clues about
what the organization can do, as well as what it
cannot do. This is important because sometimes an
organization will be attracted to a market
opportunity and the attempt will prove futilebecause the appropriate process choice is not in
place.
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The financial factor inprocess technology
The state of markets for most products and
services means that investment in
technology is seldom a question of choice of
whether or not to invest; the only choice is
often the type and extent of process
technology investment.
Large sums may be involved and there is
often a significant period between the time
of investment and the benefits that might be
attained.
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Investment in technology can provide benefits
for the firm and its workforce, principally by
ensuring continued operation for a plant. Thefirm can gain from consistent process quality and
quicker changeovers (set-up), which will result in
greater flexibility.
Investment decisions are critical and must bemade with the aim of equipping the firm or the
plant to be more competitive in the market.
Furthermore, wrong process choice decisionsmay severely reduce the companys capability to
satisfy customer demands in particular markets.
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There are four basic layout types to be found inmanufacturing and service settings:
Fixed Layout
A fixed layout is used where a
product may be heavy, bulky or fragileand in this approach operators come to
the product itself. The product is
completed on site and is not movedduring completion. The product is
centered around a particular, focused
area.
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Example
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Process Layout
In a process layout, a plant or service
location has specific activities or machinery
grouped together. In manufacturing this allows a
range or variety of products to be made. The
machines are not laid out in a particular,sequential process. Therefore, the product does
not move in a specified sequence but would go to
a machine centre as and when required for the
particular product. The great advantage ofprocess-oriented layouts is the flexibility in both
equipment and labor assignments that they bring.
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The breakdown of a particular machine will
not halt an entire process and work can
therefore be transferred to other machines inthe department. This type of layout is ideal
for manufacturing parts in small batchesor
job lotsand for producing a wide range ofparts in different sizes and forms.
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Example
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The hybrid process/product cell
In manufacturing, machines or activities
are grouped together in a way to bestsupport the manufacture of a particular
family of products or to provide a cluster of
similar services. The variety of products orservices around a particular group or cell
may be quite large, but the essential nature
of the product will remain similar and will
therefore warrant a cell of its own, distinct
from other product family cells.
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Example
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Product Layout
In a product layout, machines are
dedicated to a particular productor a verysimilar small range of productsand each
stage of manufacture is distinct from the next.
Each of the stations shown is laid out in anoperational sequence specific to the
manufacture of a particular product or the
provision of a repetitious service offering.
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Example
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There are five basic typesof process choice:
Project Processes
In project manufacturing environments, the
nature of the products is often large-scale and
complex. The designs of the products undertakenin project manufacturing are, essentially, unique
by virtue of their not being repeated in exactly the
same way. The distinguishing feature betweenproject and job manufacture is that, during the
process of completion, the product in project
manufacture tends tobe fixed.
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Scheduling of projects tends to be
undertaken in a phased completion
programme, where each phase of completion
will be distinct and separate from other
subsequent, or parallel, stages. At the
simplest level of management, tools such asGantt charts will be used. Alternatively,
more complicated programmes such as
project network planning will be employed.
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Job Processes
In manufacturing, job processes are used
for one-off or very small order requirements,similar to project process. However, the
difference is that the product can often be
moved during manufacture. Perceiveduniqueness is often a key factor for job
manufacture. The volume is very small and, as
with project manufacture, the products tend to
be a one-off in terms of design; it is very
unlikely that they will be repeated in the short
term and therefore investment in dedicated
technology for a particular product is unlikely.
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Investment in automation is for general
purpose process technology rather than
product-specific investment. Many different
products are run throughout the plant, and
materials handling has to be modified and
adjusted to suit many different products andtypes. Detailed planning will evolve around
sequencing requirements for each product,
capacities for each work center and orderpriorities; because of this, scheduling is
relatively complicated, in comparison to
repetitive line manufacture.
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Batch Processes
As volume begins to increase, either in
terms of individual products (i.e. total volume)
or in the manufacture of similar types or
families of products (i.e. greater number of
products in any one group or family), theprocess will develop into batch manufacture.
The difficulty in batch manufacturing is that
competitive focus can often become blurredmanagement attention becomes fixed upon
optimizing the batch conditions to the
detriment of customer service.
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The batch process is therefore often difficultto manage; the key is to map the range of products
in terms of either job or line characteristics.Batch production may be arranged either in terms
of the similarity of finishedproducts or by
commonprocess groupings. As a starting point,
each product has to be determined by its volume;focused cells of manufacture will then be
arranged so that low and high volumes can be
separated. Automation, especially for lowervolumes of batch manufacturing, tends to be
general purpose rather than dedicated to a
particular product whose volume does not demand
product-specific investment in automation.
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Scheduling is often complicated and has to be
completely reviewed on a regular basisthis applies
to new products, to one-offs and to higher volume,
standard products: all of these types will need to be
scheduled.
In batch production, operators have to be able toperform a number of functions. This is clearly also true
for job-type processes, but in batch this flexibility is
crucial, as it allows operators to move to various
workstations, as and when required.
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Where automation is being used, set-up times
need to be short, the ideal set-up time being that
necessary to accommodate run lengths of just one unit,
switching over to other models and volumes as
required.
Batch is the most common form of process inengineering and the most difficult to manage. Only
by determining the volumes of each product and
dividing these into low- and high-volume sections can
a company hope to be focused and, in turn, customerdriven.
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Line processes
A line process becomes more appropriate as
the volume of a particular product increases,leading to greater standardization than in low batch
volumes. Each stage of manufacture will be distinct
from the next; value and cost are added at each
stage of manufacture until the product is completed.
The line is dedicated to a particular product
(with possible variations of models) and
introducing new products that are significantlydifferent from the former product is difficult or
even impossible to realize on an existing line
manufacturing process.
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Individual operation process times
should be shortin order to satisfy delivery
expectations. Competitive advantages may begained from simplification in production
planning and control, and the tasks themselves
should also be simplified for each workstation.In line production, there should only be
very small amounts of work in process: where
it does exist, it represents a poorly balancedline loading and is seen as a signal for
necessary improvement.
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Continuous processes
This is used when a process can (or must) run
all day for each day of the year, on a continuousbasis. The volume of the product is typically very
high and the process is dedicated to making only
one product. Huge investment in dedicated plant is
often required. Much automation tends to be
evident and laborinput is one of policing rather
than being highly skilled as an integral input to the
overall process.
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Matrices Used in Service
The Schmenner matrix links the extent of
customization with the level of labor input in
the transformation process. As Schmenner
observes, however, a service, although
essentially rooted within a particular quadrant,
may wander into other quadrants, consciously
or otherwise.
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The Schmenner matrix is of further use
because not only does it help to map the actualnature of the service, it also provides
indications of the challenges that managers
will face as a result of being positioned within
a particular service type.
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The Lovelock matrix helps us to
understand the diverse nature of services,
including the issue that, in some cases,customers must be physically present to
receive services (where they are directed at
their bodies or minds), but need not be presentto receive other services (directed at goods or
intangible assets). This will have a major
impact on service design, especially the design
of service facilities.
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Lovelock statedhow important it is to see the
dimensions of who does what against the
number of sites involved in the service
transfer.