Manufacturing Strategy MGSC 602 Prof' Saibal Ray

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Manufacturing StrategyMGSC 602Prof. Saibal Ray

• Module 1 - Designing, Managing and Improving
  Operations Processes
• Module 1 Introduction
• Handout 2

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Types of Processes explored in this module

• Elemental Processes
• Grinding
• Hamburger Grilling
• Data-Entry
• Bypass-graft operation
• Compound Processes combine elemental processes
• Gearbox production process
• Fast-food production
• Insurance policy setup
• Heart disease treatment

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Other Levels of Processes not addressed
explicitly in this module

• Coordinative and Business Processes
• Marshall the flow of work and information in
  compound processes
• - How much, when, where, by whom, and how
• Order fulfillment process, capacity management
• Managerial Processes
• Capital investment appraisal process
• Employee development process
• Process of deciding on acquisitions

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Types of Processes
Managerial Processes (e.g. Capital Investment
Process)
Business Processes (e.g. Order-to-Delivery
Process)
Compound Processes (e.g. Gearbox Production)
Focus of this module
Elemental Processes (e.g. Drilling)
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Module Background

• Process Management is changing
• - Process life cycles are shorter and much more
  dynamic
• - Much more operator involvement
• - Need for process capability to provide
  strategic flexibility
• Primary challenge
• - Rapid accumulation of knowledge and proper use
  of that knowledge to foster process improvement
  and capability development

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Focus of Module

• Primary Focus on
• Improvement of existing processes as well as
  development of new processes
• Single Operating Unit/Multi-plant coordination
• Adverse organizational contexts for process
  improvement
• Emphasis on the action to be taken by the
  operations manager

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• Single Product Processes
• Cummins Engine San Luis Potosi
• Display Technologies Inc.
• Corning Glassworks The Z-Glass Project
• Deutsche Allgemeinversicherung (DAV)
• ITT Automotive
• Massachusetts General Hospital (MGH)
• Istituto Clinico Humanitas
• Solagen
• Multi-Product Processes Process Flexibility
• McDonalds Corporation
• Stermon Mills

Increasing Degree of Process Change
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Major Themes

• Designing Processes for Improvement
• Anticipating that a process will be subsequently
  improved
• Managing Processes
• Taking action that integrates operational,
  strategic and technical viewpoints
• Harnessing operator involvement and learning
• Improving Processes
• Building Process Knowledge
• The Four Levels of Process Improvement Action
• Understanding and Improving Process Flexibility

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Some Important Issues

• What actions should managers take to foster rapid
  process improvement?
• How does operations improvement change industry
  structure?
• How can managers grapple with challenges of
  formulating effective operations strategy in a
  rapidly changing environment?
• How should managers balance the need for a stable
  process with the need to improve it?
• What is flexibility and how can it be managed?