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Learning Goals-1 1.Describe each of the main process decisions and how they must relate to volume. 2.Explain the meaning of automation and economies of scope. 3.Describe the key elements of process reengineering and analyze a process for improvements, using flow diagrams, process charts, and a questioning attitude Process and Process Management Process:is any activity or group of activities that take one or more inputs, transforms and adds value to them, and provides one or more outputs for its customers. Process design is deciding how to make products or provide service. Process and Process Management A process to make Hamburg in McDonald’s and others Process and Process Management Two important principles concerning about process management: 1.Processes underlie all work activity and are found in all organizations and in all functions of an organization. 2.Processes are nested with other processes along an organization’s supply chain. What is process management Process management is the selection of the inputs,operations,work flows, and methods that transform inputs into outputs. Process decisions must be made when A new or substantially modified product or service is being offered Quality must be improved Competitve priorities have changed Demand for a product or service is changing Process decisions must be made when Current performance is inadequate The cost or availability of inputs has changed Competitors are gaining by using a new process New technologies are available Five basic process decisions Process choice Vertical integration Resource flexibility Customer involvement Capital intensity Change of enterprises living environment the focal point of the competition price the variety of delivery date the variety the development of advanced manufacturing technology Trend of globalization management The Value Chain Operations Strategy Strategy and Decisions Strategy and Decisions Strategy and Decisions Strategy and
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