Shouldice Hospital- a Cut Above
Section 2
PROCESSES
3. Strategic Capacity Management 4. Manufacturing Processes 5. Services Processes 6. Six-Sigma Quality
PROCESSES
The second section of Operations and Supply Management: The Core is centered on the design and analysis of business processes. Maybe becoming an efficiency expert is not your dream, but it is important to learn the fundamentals. Have you ever wondered why you always have to wait in line at one store but another one seems to be on top of the crowds? The key to serving customers well, whether with products or with services, is having a great process. We use processes to do most things. You probably have a regular process that you use every morning. What are the tasks associated with your process? Do you brush your teeth, take a shower, dress, make coffee, and read the paper? Have you ever thought about how the tasks should be ordered or what the best way to execute each task is? In making these decisions you are allocating your own personal capacity.* This section is about designing efficient processes and allocating capacity for all types of businesses. Companies also need to develop a quality philosophy and integrate it into their processes. Actually, quality and process efficiency are closely related. Have you ever done something but then had to do it again because it was not done properly the first time? This section considers these subjects in both manufacturing and service industries.
*The original version of the movie “Cheaper by the Dozen” made in the 1950s was based upon the life of Frank Gilbreth who invented motion study in the 1900s. Gilbreth was so concerned with personal efficiency that he did a study of whether it was faster and more accurate to button one’s seven button vest from the bottom up or the top down. (Answer: bottom up!)
Chapter 3
STRATEGIC CAPACITY MANAGEMENT
After reading the chapter you will: 1. Know what the concept of capacity is and how important it is to “manage” capacity over time. 2.
PROCESSES
3. Strategic Capacity Management 4. Manufacturing Processes 5. Services Processes 6. Six-Sigma Quality
PROCESSES
The second section of Operations and Supply Management: The Core is centered on the design and analysis of business processes. Maybe becoming an efficiency expert is not your dream, but it is important to learn the fundamentals. Have you ever wondered why you always have to wait in line at one store but another one seems to be on top of the crowds? The key to serving customers well, whether with products or with services, is having a great process. We use processes to do most things. You probably have a regular process that you use every morning. What are the tasks associated with your process? Do you brush your teeth, take a shower, dress, make coffee, and read the paper? Have you ever thought about how the tasks should be ordered or what the best way to execute each task is? In making these decisions you are allocating your own personal capacity.* This section is about designing efficient processes and allocating capacity for all types of businesses. Companies also need to develop a quality philosophy and integrate it into their processes. Actually, quality and process efficiency are closely related. Have you ever done something but then had to do it again because it was not done properly the first time? This section considers these subjects in both manufacturing and service industries.
*The original version of the movie “Cheaper by the Dozen” made in the 1950s was based upon the life of Frank Gilbreth who invented motion study in the 1900s. Gilbreth was so concerned with personal efficiency that he did a study of whether it was faster and more accurate to button one’s seven button vest from the bottom up or the top down. (Answer: bottom up!)
Chapter 3
STRATEGIC CAPACITY MANAGEMENT
After reading the chapter you will: 1. Know what the concept of capacity is and how important it is to “manage” capacity over time. 2.
Bibliography: Wright, T. P. “Factors Affecting the Cost of Airplanes.” Journal of Aeronautical Sciences, February 1936, pp. 122–128. Yu-Lee, R. T. Essentials of Capacity Management. NewYork: Wiley, 2002.