PROCESS,REPITATIVE,PRODUCT,MASS STRATEGY

Group Members(INTRODUCTION PROCESS STRATEGY & PROCESS FOCUS)

NABEEL SHAHID (REPITATIVE STRATEGY)

MUHAMMAD SHAKEEL (PRODUCT STRATEGY)

ZAHEER NAZEER (MASS CUSTOMIZATION)

Definition Of Process StrategyA process strategy is an organization’s approach to transforming resources into goods and Services,

Objective of Process StrategyThe objective of a process strategy is to build a production process that meet customer requirement and product specification, within cost and other managerial constrains.

Process Strategies How to produce a product or

provide a service that Meets or exceeds customer

requirements Meets cost and managerial goals

Has long term effects on Efficiency and production flexibility Costs and quality

Process StrategiesFour basic strategies

Process focus Repetitive focus Product focus Mass customization

Within these basic strategies there are many ways they may be implemented

Definition Of Process Focus“A production facility organized around process to facilitate low volume, high

variety production”.

Low volume , high variety products in places called “ Job Shops”

Process Focus Facilities are organized around specific

activities or processes General purpose equipment and

skilled personnel High degree of product flexibility Typically high costs and low

equipment utilization Product flows may vary considerably

making planning and scheduling a challenge

Process Focus

Many inputs

High variety

of outputs

Print Shop

Process-Focused Strategy Examples

Bank

© 1995 Corel Corp.

Machine Shop© 1995 Corel Corp.

Hospital© 1995 Corel Corp.

Process Focused Strategy - Pros & Cons

Advantages◦ Greater product flexibility◦ More general purpose equipment◦ Lower initial capital investment

Disadvantages◦ More highly trained personnel◦ More difficult production planning & control◦ Low equipment utilization (5% to 25%)

PRINT COMPANY

HISTORY Copy Cat Print company is a full service digital

printer located in downtown Greenfield. our service since 1985.

The Greenfield store is the only Copy Cat still owned by the original owners, Reza and Jennifer Shafii.

We offer digital color copies, binding, laminating, oversized copies, and much more.

You can order online and we will deliver it to you with a smile. Dealing with a local business with the

ability to order online, at very competitive pricing, makes us a unique and trusted source for all your printing needs.

Copy Cat Greenfield has been serving the local clients since 1992.

Shipping

Customer

Customer sales representative

take order

Prepress Department(Prepare printing plates

and negatives)

Printing Department

Collating Department

Gluing, binding, stapling, labeling

Polywrap Department

Purchasing(order inks, paper,

other supplies)

Vendors

Receiving

Warehousing(ink, paper, etc.)

Accounting

Information flowMaterial flow

PRODUCTS

A leader in Healthcare for over 100 years, Philips is one of the world’s leading manufacturers and suppliers of medical equipment and related services that improve people’s health and well-being. We have the best and top-of-the-range medical diagnostic equipment in 100 COUNTRIES helping surgeons in the battle against heart disease and cancer.

PRODUCTS

HISTORY Philips Medical Systems, a division of

Royal Philips Electronics, with headquarters in the Netherlands and the United States, is one of the world’s largest healthcare companies.

supplying diagnostic imaging equipment, including X-ray, magnetic resonance, computed tomography, nuclear

medicine, positron emission tomography, and ultrasound systems.

Since the late 1990s, the medical division has grown rapidly, more than doubling Its sales between 2000 and 2005

Philips Medical Systems now employs 30,000 people and distributes products

in over 100 countries. In the early years beginning 1948,PAKISTAN

customer

Take order

purchasing warehouse

Prepress Department

Specification add in

Finished product

packing

Shipping

REPETITIVE STRATEGY

Repetitive focus is essentially a customary assemblage line that utilizes modules that are organized earlier than production set in motion.

Facilities often organized as assembly lines

Parts and assemblies made previously

Combined for many output options Less flexibility than process-focused More efficient

REPETITIVE FOCUS

Repetitive Focus

Raw materials

and module inputs

Modules combine

d for many output options

Few modules

Automobile Assembly Line

1903 – William S. Harley and the Davidson brothers – Walter and Arthur – handcraft their first three motorcycles in Milwaukee, Wis. William A. Davidson later joins the enterprise.

Harley is the only major American Manufacturer of heavy weight motor cycles.

1986 – Entered into American & New York stock exchanges 2003 – more than 950,000 bikes were sold in U.S & 28 million world

wide

Main features

• Harley Davidson Softail Family eg:narrow seats, tombstone tail lights, full length floor boards • Harley Davidson Sportster Family eg: low-rise handlebars, bullet style headlight.• Harley Davidson Touring (Dressers) Family large windshield & have a full front fairing. leather

saddlebags, optional sidecar, & option to customize.• Engines Big V-twins, Small V-twins, and the Revolution engine

COCA COLAINCORPORATE IN 1892 USARECIPE INVENTED BY JOHN STITH PEMBERTON

400 BRAND IN OVER 200 COUNTRIES

PRODUCE CONCENTRATE CYRUP

SOLD TO FRANCHISES

COCA COLA PRODUCTS

PRODUCT STRATEGY

Facilities are organized by productHigh volume but low variety of productsLong, continuous production runs enable

efficient processesTypically high fixed cost but low variable

costGenerally less skilled labor

Product Focus

Few inputs

Output variations

in size, shape,

and packagin

g

Continuous Work Flow

BLUM: PERFECTING MOTION

Julius Blum 1 March 1952 in Hickory, North Carolina.Currently, BLUM 450,000 square foot building Provide on-the-job trainingfirst companies in the industry to earn ISO 9001 certificationEurope’s Environmental Management System (EMAS) criteria

PRODUCTS

BLUM PRODUCT STRATEGYWe build quality kitchen hardware for

residential kitchen customers.Our customers are young American families. They are interested in materials that are

safe for children and eco-friendly.We sell our products through a retail

channel.Our products are priced per unit, and are

considered “high-end” hardware solutions.

History of Frito lays 1932,Herman W Lay opened a snack shop He purchased the barrette Food Company renaming it “H. W . Lay & Company Firs potato chip to appear on television 1995 merged with Pepsi-cola to form “PepsiCo”

Product FocusFacilities are organized by productHigh volume but low variety of productsLong, continuous production Efficient processesTypically high fixed cost but low variable cost

Mass customizationMass customization is the most complex of the four processes and present operations manager to make inspired and destructive use of organizational resources to put up the unique requirements of their consumers.

MASS CUSTOMIZATION FOCUSThe rapid, low-cost production of goods

and servicesatisfy increasingly unique customer

desiresCombines the flexibility of a process focus

with the efficiency of a product focus

General Motors

Intro General Motors’’

World’s second largest in usHead quarter at Detroit, Michigan. The business has been speeded in about 120 countries. installed the world's largest rooftop solar power their

Zaragoza Manufacturing Plant The Zaragoza solar covers about 2,000,000 sq. ft. of

roof besides

PROCESS

Launched first car (SA Model) in 1947.The Founder name was Kiichiro toyoda.

Introduction On Toyota Motors

3rd largest automotive manufacturerHeadquartered in Toyota City, AichiAnnual sales of $120 BillionProduces 5.5 million vehicles per yearFrom 56 manufacturing plants across6 continents

Best Car of ToyotaToyota Land Cruiser 200 V8 (the king of roads)Capacity of seats 7.Price $90,000 (PKR 9,630,000)Turbo, Deisel, 4.5l engine , Powerful engine.

PROCESS

Comparison of ProcessesProcess Focus

(Low volume, high variety)

Repetitive Focus

(Modular)

Product Focus(High-volume,

low-variety)

Mass Customization(High-volume, high-variety)

Small quantity, large variety of products

Long runs, standardized product made 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 changeover on flexible equipment



Repetitive Focus

(Modular)


low-variety)


Operators are broadly skilled

Employees are modestly trained

Operators are less broadly skilled

Flexible operators are trained for the necessary customization

Many job instructions as each job changes

Repetition reduces training and changes in job instructions

Few work orders and job instructions because jobs standardized

Custom orders require many job instructions



Repetitive Focus

(Modular)


low-variety)


Raw material inventories high

JIT procurement techniques used

Raw material inventories are low

Raw material inventories are low

Work-in-process is high

JIT inventory techniques used

Work-in-process inventory is low

Work-in-process inventory driven down by JIT, lean production



Repetitive Focus

(Modular)


low-variety)


Units move slowly through the plant

Movement is measured in hours and days

Swift movement of unit through the facility is typical

Goods move swiftly through the facility

Finished goods made to order

Finished goods made to frequent forecast

Finished goods made to forecast and stored

Finished goods often build-to-order (BTO)



Repetitive Focus

(Modular)


low-variety)


Scheduling is complex, trade-offs between inventory, availability, customer service

Scheduling based on building various models from a variety of modules to forecasts

Relatively simple scheduling, establishing output rate to meet forecasts

Sophisticated scheduling required to accommodate custom orders



Repetitive Focus

(Modular)


low-variety)


Fixed costs low, variable costs high

Fixed costs dependent on flexibility of the facility

Fixed costs high, variable costs low

Fixed costs high, variable costs must be low

Costing estimated before job, known only after the job

Costs usually known due to extensive experience

High fixed costs mean costs dependent on utilization of capacity

High fixed costs and dynamic variable costs make costing a challenge

Education

PROCESS,REPITATIVE,PRODUCT,MASS STRATEGY