9-1: Argue for the strategic importance of process selection to an organization, and identify factors that affect process choice.

Companies use the information they receive from the external environment, including customer demand for goods and services, technological changes, and the type of product or service to help them make choices about capacity planning and process selection. All processes have to be implemented in the situations in which they will bring the highest benefit to the organization. Some factors that affect the choice of process are the type of product or service, varieties of products or services offered, risk of customer dissatisfaction, capital investment, and process flexibility. Understanding and correctly interpreting the effects that these different factors have on the choice of process can be critical. Other factors that should be included in process selection are market requirements, technological considerations, degree of automation available and desired, and sustainability.

9-2: List the unique features in the design of service processes.

Service process design focuses on how the most efficient combinations of customization and customer interaction should interact with labor intensity for service operations. Most service organizations seek to optimize these elements and find an efficient means to produce their services. The service process design matrix allows firms to categorize their services as compared with others in their industry and strike a balance between customization and labor intensity. Thus, in industries that gravitate toward efficient operations, which are organized as a service factory, it may be possible to market high-end services by employing more labor or customization of the product line to offer customers more choices.

9-3: Defend the reasons that it is important for companies to synchronize their internal processes with the external processes of their supply chain partners.

To provide customers with high-quality products and services at the lowest possible cost, and at the locations most convenient for them, companies need to design their individual internal processes in ways that maximize the performance of their supply chains. That is, companies need not only to synchronize their individual internal processes but also to link them with the external processes of their supply chain partners. To succeed in a global competitive environment, companies need fast and flexible manufacturing processes that can adapt quickly to change. To achieve this objective, the different manufacturing processes should be integrated across a customer-focused supply chain. In a manufacturing supply chain, depending on the nature of the product, different types of processes link multiple supply chain partners.

9-4: Describe the unique challenges involved in designing global processes.

Companies with global operations often have several plants located in different countries, and they must decide what processes to use and how should they be designed. These companies have to redesign their products and processes to varying degrees to suit the needs of the local market. Because of the variability in global markets, companies must respond quickly to meet the requirements of their customers. In most cases, they rely on mass customization and adaptive manufacturing.

9-5: Construct the different layout types, and identify their features.

After firms decide on the appropriate processes (usually intended to provide the best efficiency while allowing the firm to maximize its responsiveness), these decisions shape the design of layout. For both service and manufacturing operations, layout analysis and design contribute to the firm’s competitive advantage. Layout planning decisions encompass designing layout for new facilities as well as redesigning layouts for existing facilities. Several different layout options are available for an organization to choose from, depending on such features as the demand for their products, the type of products, and flexibility in producing the products. Among the more common layouts are process, product, and fixed position. An innovative layout is cellular manufacturing methods, which can offer workers a wider range of activities and job responsibilities, even though it requires extra training and may not motivate all employees. Service layout should consider the servicescape or the ambiance in the physical features and environment surrounding the service and how they affect service delivery satisfaction. There are various service layouts, each with its own features that must be considered in enhancing the servicescape. Among the types of service layouts are warehousing, office, retail, and restaurants.

9-6: List strategies that companies can take to address the legal, ethical, and sustainability issues in process design and layout planning.

A challenge for organizations in both the manufacturing and service industries is to design processes and layouts that are sustainable. Some strategies companies can use to design and operate sustainable processes include using nontoxic and recyclable materials, designing lean processes to prevent waste, and designing processes that ensure the safety of workers and the general public. Sustainable layouts employ a variety of strategies to ensure energy efficiency, safety, and the comfort of workers and prevent environmental degradation. Finding better means to ventilate, provide electricity and light, improve working conditions to minimize worker fatigue, or economize on power sources are all necessary steps in making our layouts both more efficient and more sustainable.

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