8/15/2019 Four Types of Process Strategies - Opera

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FOUR TYPES OF PROCESS STRATEGIES

PROCESS

FOCUS

REPETITIVE

FOCUS

PRODUCT

FOCUS

MASS

CUSTOMIZATION

Low volume,

High varietyModular 

High-volume,

low-variety

High-volume,

high-variety

Small quantity, large

variety of products

Long runs,

standardized product,

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

apid change over on

fle!ible equipment

"roadly s#illed

operators

Modestly trained

employees

$perators less

broadly s#illed

%le!ible operators

trained for

customization

Many instructions

because of change in

 &obs

educed training and

number of &ob

instructions

%ew wor# orders and

 &ob instructions

'ustom orders

require many

instructions

aw material high

relative to product

value

()* techniques used

aw material low

relative to product

value

aw material low

relative to product

value

+) high relative to

output()* techniques used

+) low relative to

output

+) driven down by

()*, #anban, lean

production

nits move slowly

thru plant

Movement measured

in hours . days

nits move swiftly

thru facility

Goods move swiftly

thru facility

%inished goods made

to order, not stored

%inished goods made

to frequent forecasts

%inished goods made

to forecast, then

stored

%inished goods made

to order 

Scheduling comple!

and concerned with

trade-off between

inventory, capacity,

and customer service

Scheduling based on

building models from

a variety of forecasts

Scheduling relatively

simple, concerns

establishing sufficient

rate of output to meet

forecasts

Scheduling

sophisticated toaccommodate

customization

%i!ed costs low,

variable costs high

%i!ed costs

dependent on

fle!ibility of facilities

%i!ed costs high,

variable costs low

%i!ed costs high/

variable costs must

be low

'osting, done by &ob,

is estimated prior to

doing &ob but only#nown after doing &ob

'osts usually #nown

based on e!perience

"ecause of high fi!ed

costs, cost dependent

on utilization ofcapacity

High fi!ed costs and

dynamic variablecosts