Please help finish the Performance Measurement of a Process assignment

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  1. The maximum word length for the assignment is 1000 words (not includingappendices, diagrams and tables). It should be word processed (including yourinformation such as name and student ID).
  2. Read PPT, and answer 4 questions
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ISE538 Assignment 1: Performance Measurement of a Process Select a business process of a company that you are familiar with, or you want to study. Write an essay addressing the following: 1. Briefly explain the process you are studying. What process type and process layout are used in this process? [5 marks] 2. Does the process you discussed in Q1 sit on the diagonal of the product– process matrix? Please justify your opinion. [5 marks] 3. Make reference to the five operations performance objectives as outlined in the lecture, discuss what kind of measures under each performance objectives should be monitored. Which measure(s) contribute most to the success of this process? [5 marks] 4. Based on this case, how the choice of performance measure links to strategic objectives? [5 marks] Note: (i.) The maximum word length for the assignment is 1000 words (not including appendices, diagrams and tables). It should be word processed (including your information such as name and student ID). (ii.) Please submit the assignment via Blackboard link. (iii.) Deadline for submission is 3 Feb 2021. Process and Performance Management (ISE538) Lecture 1 Process Management Outline • • • Introduction to Process Management Process and Layout Types Product-Process Matrix ISE538 Lecture 1 (1) Traditional Business Model Marketing Design Manufacturing Assembly ISE538 Lecture 1 (2) Traditional Business Model • • • • • • Functional focus Multiple handoffs Document duplication Work duplication Little appreciation for customer requirements Not systemic ISE538 Lecture 1 (3) Functional Organisation Goals ISE538 Lecture 1 (4) Functional Organisation • Groups resources into specific departments which perform specific tasks to help the company achieve desired goals.      Research and Development - translates customer needs into tangible products. The goal is to design appealing, easy-to-make products with shorter concept-to-market lead times. Purchasing acquires the right materials at the right price for use in operations. Sourcing’s goal is to select the right suppliers and then build the right relationships with them. Production transforms inputs into a more highly valued and desirable product or service. The goal: to use capital, energy, knowledge, and labour are used to build processes that make low-cost, high-quality goods. Logistics moves and stores goods so they are available for use in operations or for sale to customers. Logistics seeks to leverage critical activities like transportation, warehousing, and order processing to make sure materials and products are where they need to be when they need to be at the lowest cost. Marketing identifies customer needs and communicates to the customer how the company can meet those needs. Marketing’s objective is to perform a liaison role between the company and its customers. ISE538 Lecture 1 (5) (Dys)Functional Behaviour • • • Functional structures result in a failure to see beyond the department level to the end user Decisions are made to achieve local, functional optimum without regard to impact on the remainder of the company Due to inherent conflicts between department goals and measurements, departments are compelled to take dysfunctional actions ISE538 Lecture 1 (6) Business Processes ISE538 Lecture 1 (7) Process-based Business Model Marketing Design Manufacturing Assembly Start End Group e.g. Quality Improvement Team Process ISE538 Lecture 1 (8) Process Thinking • Process thinking aligns decisions with corporate strategy and coordinates actions across functions Each process consists of a set of flows and value-added activities: •    Information Flow Physical Flow Financial Flow ISE538 Lecture 1 (9) Value-Added Process Materials Acquisition New Product Development ISE538 Lecture 1 (10) Cross-Functional Teams • • • Company, department, or sub-unit loyalty can make holistic decision making difficult across the supply chain Cross-functional and Inter-organisational teams help to improve flow of information and builds trust between organisations and functional areas within organisations Co-location promotes spontaneous discussion and collaborative decision making ISE538 Lecture 1 (11) Organisation Structures for Design Processes ISE538 Lecture 1 (12) A Process View of a Company • 1. 2. 3. 4. Decisions made throughout an organisation should focus on using available resources to create customer value: Customer focus defines the company’s value proposition and drives competency Competency guides functional decision making Competency development dictates resource allocation Information and performance systems align efforts on the system’s goal ISE538 Lecture 1 (13) Process Reengineering • Reengineering is the radical redesign of business processes using systems thinking and information technology   Reengineering builds the process from scratch focusing on desired customer outcomes Restructuring replaces resources with technology changing the basic process design or challenging whether the process should be done ISE538 Lecture 1 (14) Steps to Process Reengineering 1. Identify Desired Outcomes – processes are redesigned to fulfil specific customer needs. 2. Make Processes Visible – process mapping identifies activities, resources, and performance dimensions helping management to understand the as-is process. 3. Assign Responsibility for Work – responsibility for redesign should be at the level where work is done; employees understand the process and have untapped ideas for improving it. 4. Leverage Technology – technology makes it possible to achieve outcomes in new ways. ISE538 Lecture 1 (15) Reengineering Systematically • 1. 2. 3. 4. 1. 2. 3. 4. 5. 6. 7. Michael Hammer suggests that companies: Look for role models outside your industry. Identify and defy a constraining assumption. Make the special case into the norm. Rethink the following dimensions of work: What results the work delivers Who performs the work Where work is done When work is performed Whether the work should be done What information the work requires How thoroughly the work is performed ISE538 Lecture 1 (16) Process Management • • • It’s a shift from competing on what we make to how we make it (David Robinson, President CSC Index on the need for process thinking) Functional thinking limits cooperation and impedes creative thinking Process management promotes collaboration, facilitating customer satisfaction at low cost ISE538 Lecture 1 (17) Process Management • Process Management requires companies to: 1. Recognise the limiting nature of functional structures 2. Instill process thinking throughout the company • Process integration remains rare  • Michael Hammer estimates less than 10% of companies have made a serious and successful effort Requires major changes to measurement, job design, management roles, and organisational structure ISE538 Lecture 1 (18) Process-based Business Model • The operations in any organisation comprise of: Processes, Activities, Tasks  • • • • • No product or service can exist without processes Process focussed Improved communication Single documentation Appreciation of customer Systemic ISE538 Lecture 1 (19) Process Management • Process management is the selection of the operations and work flows that transform inputs into outputs Processes underlie all work activity and are found in all organisations and all functions •  • Processes cut across functional lines Processes are nested within other processes in the organisation and its supply chain ISE538 Lecture 1 (20) Process Management • Process management involves: Design, Management and Continuous Improvement Operational decisions include •     What processes How to organise and coordinate them Strategic decisions about ‘make or buy’ How to manage process interfaces ISE538 Lecture 1 (21) Process Management • Process decisions have to decide the proper mix of human skills and equipment:      Which parts of the process can be automated? Are the processes efficient and effective? Are they flexible? Are the processes consistent with the organisations process flow strategy? Does the organisation have the ability to obtain resources to support that strategy and the core processes. ISE538 Lecture 1 (22) Process Management • Process decisions must be made when:        a new or substantially modified product or service is being offered, quality must be improved, competitive priorities have changed, demand for a product or service is changing, current performance is inadequate, competitors are gaining by using a new process or technology, the cost or availability of inputs has changed. ISE538 Lecture 1 (23) Designing Processes • There are different ‘process types’:  • Process types are defined by the volume and variety of ‘items’ they process Process types go by different names depending on whether they produce products or services ISE538 Lecture 1 (24) Process Management Example: Line Flows in a Factory Large Engine (6 cylinder) A B C D Small Engine (4 cylinder) A = Front-end body assembly C = Fluids • B = Bonnet assembly D = Start and test The system is organised around the product or service itself ISE538 Lecture 1 (25) Process Management Example: Flexible Flows in a Hospital Physical Examination Doctor Malaria Pharmacy Radiology Triage Blood Test Flu Dead Person Broken Leg The system is organised around the processes used to provide the service or product ISE538 Lecture 1 (26) Process Flows • Line Flows - system is organised around the product or service itself     • Flexible Flows - system is organised around the processes used to provide the service or product     • Standardised products and services, with high volumes Consistent quality Emphasis on low cost Short delivery times Customised products and services, with low volumes High performance design quality Customisation and volume flexibility Longer delivery times Intermediate Flows - Many systems combine the other two extremes ISE538 Lecture 1 (27) A project process with a small part of the process map that would describe the whole process ISE538 Lecture 1 (28) Project  Processes that produce products of high variety and low volume are termed projects.  Project processes are used to make a one-off product to a customer specification.  A feature of a project that the location of the product is stationary. ISE538 Lecture 1 (29) Preparing photolithography materials on a jobbing basis with a typical process map ISE538 Lecture 1 (30) Jobbing  Processes that produce products of high variety and low volume are termed jobbing.  Jobbing processes are used to make a oneoff (or low volume) product to a customer specification.  A feature of a jobbing process is that the product moves to the location of transforming resources such as equipment. ISE538 Lecture 1 (31) A batch process in a kitchen together with an illustrative process map ISE538 Lecture 1 (32) Batch  Processes that produce products of medium variety and medium volume are termed batch.  The size of a batch or group can range from one to hundreds.  A feature of batch processes is that, because it is difficult to predict when a batch of work will arrive at a machine, a lack of coordination can lead to many products waiting for that machine at any one ISE538 time.Lecture 1 (33) A mass process – a packing process ISE538 Lecture 1 (34) Mass  Processes that produce products of high volume and low variety are termed line or mass processes.  Although there may be variants within the product design the production process will essentially be the same for all the products.  Because of the high volumes of product it is cost effective to use specialised labour and equipment. ISE538 Lecture 1 (35) Part of a continuous process and a typical process map ISE538 Lecture 1 (36) Continuous  Processes that operate continually to produce a very high volume of a standard product are termed continuous.  The products produced by a continuous operation are usually a continuous flow such as oil and gas.  Continuous processes use a large amount of equipment specialised and dedicated to producing a single product (such as an oil refinery for example).  To make this large investment in dedicated equipment cost effective ISE538 Lecture 1 (37) A Professional Service • Consultants planning how best to help their client ISE538 Lecture 1 (38) Professional Service • Professional Service processes operate with high variety and low volume. • They are characterised by high levels of customisation, in that each service delivery will be tailored to meet individual customer needs. • This customisation requires communication between the service provider and customer and so professional services are characterised by high levels of customer contact and a relatively high proportion of staff supplying the service in relation to customers. • The emphasis in a professional service is on delivering a process rather than a tangible product associated with a process. ISE538 Lecture 1 (39) A Service Shop • This health club offers some variety within a standard set of facilities and processes ISE538 Lecture 1 (40) Service Shop • Service Shop processes operate with a medium amount of variety and volume. • There will be a certain amount of customisation of the service, but not as extensive as in professional services. • There will be therefore a mix of staff and equipment used to deliver the service. • There is an emphasis both on the service delivery process itself and any tangible items that are associated with the service. ISE538 Lecture 1 (41) A Mass Service • This call centre can handle a very high volume of customer enquiries because it standardizes its process ISE538 Lecture 1 (42) Mass Service  Mass Service processes operate with a low variety and high volume.  There will be little customisation of the service to individual customer needs and limited contact between the customer and people providing the service.  Because the service is standardised it is likely that equipment will be used to improve the efficiency of the service delivery process.  The emphasis in a mass service is on the tangible item that is associated with the service delivery. ISE538 Lecture 1 (43) Choosing a Process Type • Now, you should know various types of processes • The next question really is, how to select an appropriate process? • A choice of process type must meet both market needs in terms of the volume and variety requirements of customers and also the technical needs in terms of the configuration of resources to deliver a service or product ISE538 Lecture 1 (44) Choosing a Process Type • Process type choice is strategic because it can represent a large amount of capital investment in terms of equipment and workforce and so sets a constraint around which the company can compete • The difficulty of the procedure of process type choice is that process decisions can take a relatively large amount of time and money to implement whereas market needs in a competitive environment can change rapidly ISE538 Lecture 1 (45) Choosing a Process Type • For a certain volume and variety combination an organisation needs to make a choice regarding which process type to use • Hayes and Wheelwright describe this choice in terms of a trade-off between cost and flexibility • The model is call Product-Process Matrix ISE538 Lecture 1 (46) Matching Process Type with Volume and Variety ISE538 Lecture 1 (47) Matching Process Type with Volume and Variety • In figure 3.12 the volume and variety position shown by the dotted lines leads to a match for the production of product ‘A’ with a batch process type. This means for this particular volume and variety position a batch process provides what is termed the ‘lowest cost’ position. • If a jobbing process type was used in this position then operations would have too much flexibility for the amount of variety required. Thus they would have higher costs than another producer supplying the same market using a batch process type. • If a mass process type was used in this position then the operation would have too little flexibility for the amount of variety required. Thus they would have higher costs than another producer supplying the same market using a batch process type. ISE538 Lecture 1 (48) Process tasks Process flow Diverse/ complex Intermittent High Manufacturing Process Types Project Variety Jobbing Batch Mass Continuous Continuous Low Repeated/ divided Low Volume High ISE538 Lecture 1 (49) Process flow Diverse/ complex Intermittent Professional service Service shop Variety Process tasks High Service Process Types Repeated/ divided Continuous Low Mass service Low Volume ISE538 Lecture 1 (50) Deviating from the ‘natural’ diagonal on the product–process matrix has consequences for cost and flexibility Manufacturing operations process types Variety None Project Jobbing Batch Service operations process types Volume Less process flexibility than is needed so high cost More process flexibility than is needed so high cost Professional service Service shop Mass Continuous Mass service None The ‘natural’ line of fit of process to volume/variety characteristics ISE538 Lecture 1 (51) Deviating from the ‘natural’ diagonal on the product–process matrix has consequences for cost and flexibility Volume Variety None Old process Old process, new product New process, new product None ISE538 Lecture 1 (52) Flow (layout), technology and job design are all influenced by process positioning Flow Technology Volume Jobs Variety Unorganised Little / general Varied / high discretion None Custom furniture maker Machine tool maker Automobile factory Predictable Specialist Routine / low discretion None Petrochemical refinery ISE538 Lecture 1 (53) Flow (layout), technology and job design are all influenced by process positioning Flow Technology Volume Jobs Variety Unorganised Little / general Varied / high discretion None Investment banking Customer service branch Bank call centre Predictable Specialist Routine / low discretion None Credit card processing ISE538 Lecture 1 (54) Layout Types • Following the selection of the operations process type it is necessary to select the layout (arrangement of facilities) of the operation • However, there is often a choice of layout types for a particular process type (such as a process layout or cell layout for batch process types). ISE538 Lecture 1 (55) Layout Types • In this case the choice will depend on the characteristics of the layout type that are particularly relevant for the product or service that is to be delivered. • The characteristics of each of the layout types will now be considered. • There are four basic layout types of fixed position, process/funcational, cell and product layout ISE538 Lecture 1 (56) Fixed Position Layout ISE538 Lecture 1 (57) Fixed Position Layout • • • This layout design is used when the product or service cannot be moved and so the transforming process must take place at the location of product creation or service delivery. In a fixed position layout all resources for producing the product, such as equipment and labour must move to the site of the product or service. The emphasis when using a fixed-position layout is on the scheduling and coordination of resources to ensure that they are available in the required amounts at the required time. ISE538 Lecture 1 (5 ...
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