MIS567 Processes
Classification by Customer Interface
Make to Order
Low volumeHigh Raw Material Average WIPZero or low FGMake to Stock
High volumeLow MaterialAverage WIPHigh FGProcess Architecture
Flow Shop
High volumeLow CostProduct focused Continuous Shop
Only in chemical, refining industriesLine Flow
Specialized EquipmentMight be capital intensiveLow cost productsJob Shop
Low VolumeHigh CostDepartmentally or functionally organizedBatch
It is the result of a job shop receiving an order for the same product over and over again.Project
General equipment is usedSetup, Engineering, and Design all are done specificly to each projectProcess Metrics
Internal Measures
Focus on operations specifications
Flexibility
Flow Time
External Measures
Measures that indicate the level of customer satisfaction.Variety / Flexibility
Customized propositionsVolume flexibility competencyQuality
Conformance - Works??Performance - Additional valueResponse Time
Lead time competencyOn time competencyTime-To-Market competencyLow cost propositions"Survival" Strength
Cash Flow
Relative Measures
ROA
ROI
Inventory Turns
Absolute Measures
Cost
Net Income
Profit
Revenues
Elements of a Process
Examples
Production
Flow Unit-> Products
Transformation -> From the receipt of materials to the completion of the finished product
Order Fullfillment
Flow Unit-> Orders
Transformation -> From the receipt of an order to the delivery of a product
Network of Activities and Buffers
Flow Units
Inventory Analyst
Output->Purchasing plan
Input->Forecast, Available Inventory
McDonalds
Food
Customers
Inputs and Outputs
