managing the transformation process

7/30/2019 Managing the Transformation Process

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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.

managing the transformation process

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