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Chapter 4 Summary

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Chapter 4 Summary
Chapter 4, 5, 6, 7
Summary
Operations can be analyzed at three levels
1. Flow between operations (the level of the supply network)
2. Flow between the processes (the level of operations)
3. Flow between the resources (the level of the processes)
Design
Design is to conceive the looks, arrangements, working of something it is constructed
What is process design?
What are the objectives of process design?
How do volume and variety effect process design?
How are process design identical?
Process Design key component
1. Supply network design
2. Layout and flow
3. Process technology
4. Job design
5. Product and service design
Description
1928- first drive through restaurant was developed in USA (Pig Standard Restaurant)
1975: 90% of Macdonald’s have drive-through restaurants
Today more than 80% of the restaurants have drive through
Macdonald’s claims that its sales increase1% for every six second saved at a drive through
Burger king claim that each of its restaurant’s taking increased by $15000 per year if reduced queuing time by one second

Design of products / services and design of processes are interrelated and should be treated together

Designing the product or services
Products and services should be designed in such a way that they can be created effectively
Designing the processes
Processes should be designed so they can create all products and services which the operation is likely to introduce
Product and service design has impact on processes and vice versa
The overlap between service design and process is more than the product design because it involve customer in various processes.
Objective of the process design
To make sure that performance of the processes is appropriate whatever it is trying to achieve
Strategic performance objectives (quality, speed, dependability, flexibility, cost)
Process design objective
Benefits see table 4.1

Through Put rate
Is the rate at which units emerge from the process (number of units passing through the process

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