Chpt 6 Flashcards
(36 cards)
What are process innovation projects typically chartered in response to?
In response to a breakthrough process innovations
What is the common performance improvement range for process innovation projects within 12 months?
50% to 100%
What are important issues in process design?
Types (of processes), planning, analysis and innovation, and technology decisions.
What does process planning determine?
How a product will be produced or a service provided.
What decisions are made during process planning?
- What will be made in-house vs. supplier
- Which processes to use
- Development for specifications of manufacture and delivery
What factors determine the type of production process selected?
Demand volume and degree of product standardization.
What is project production?
Projects are produced one at a time to customer order.
What is batch production used for?
To process a variety of low-volume jobs.
What does mass production produce?
Large volumes of a standard product for a mass market.
What is continuous production used for?
Very high-volume commodity products.
What is break-even analysis?
Examination of cost trade-offs associated with demand volume.
What are the components of break-even analysis?
- Volume (the level of production) 2. Cost (both fixed and variable)
- Revenue (the price at which an item is sold)
- Profit (the difference between total revenue and total cost)
What is process analysis?
Examination of all aspects of a process (to improve it)
What are the basic tools of process analysis?
Process flowcharts, diagrams, and maps.
What does a classic process flowchart examine?
The manufacture of a product or delivery of a service from a broad perspective
How can process flowcharts be used?
To analyze the efficiency of a series of processes and to suggest improvements.
What is a benefit of using process flowcharts?
- A standardized method for documenting the steps in a process
- Can be used as a training tool
What are process maps?
Process maps are named because they map out the activities performed by various people in the process
What additional feature do process maps often include?
A time scale
What is process innovation?
The complete redesign of a process for breakthrough improvements
When are process innovation projects typically chartered?
In response to a breakthrough goal for rapid, dramatic improvement in process performance
What is the first step in the process of process innovation?
Establishing the goals for process performance
What is prepared after the general concept of redesign is agreed on?
A detailed map is prepared for each subprocess or block in the high-level map.
Why are blocks added to the detailed block diagramming map?
If the action contributes to the output goal
