Sunday, 27 March 2016

Process Strategy

A process or transformation strategy is an organization's approach to transform resources into goods and services. These goods or services are organized around a specific activity or process..
Involves determining how to produce a good or service within constraints.




Objective:
  • Meet or exceed customer requirements
  • Meet cost & managerial goals
Type of Process strategies:
  1. Process focus
  2. Repetitive focus
  3. Product focus
  4. Mass customisation
Process focus
It is when a production capability categorised around processes to assist low-volume, high- variety production.

Advantages
  • Greater product flexibility
  • More general purpose equipment – equipments not dedicated to one product

Disadvantages
  • High production cost per unit
  • More difficult production planning & control
  • Low equipment utilization (5% to 25)
Repetitive focus
It is essentially a customary assemblage line that utilized modules that are organised earlier than production set in motion.

Product focus
It  is a high volume, low variety process where the amenities are controlled around the product.

Advantages
  • Lower production cost per unit
  • Lower but more specialized labor skills
  • Easier production planning and control
  • Higher equipment utilization (70% to 90%)


Disadvantages
  • Lower product flexibility
  • More specialized equipment 


Mass customisation
It is the most complex of the 4 processes and present operation manager to make inspired and destructive use of organisational resources to put up the unique requirements of their consumer.

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