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Distributor Dilemma

In January 2017, Aan, a marketing manager in a


state-owned enterprise cement producer, was thinking hard
on the assignment he just received from the BoD. He needs
to come up with a plan on what the company needs to do
with its 18-distributors.
What a difference a two year time period could
bring. Two years ago, distributors were trying to get the
attention of the company. Now, they have the upper-hands
as many new cement producers have started producing.
Aan wants to manage the distributors. What are the
things that he needs to do?
Process

Process
Group of related tasks, connected with goods
and/or information with specific inputs & outputs
Process design
tasks to be done & how they are coordinated
among functions, people, & organizations
Process strategy
an organizations overall approach for physically
producing goods and services
Process planning
converts designs into workable instructions for
manufacture or delivery

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Product - Process Matrix
Product Structure, Product Life Cycle

Proc. Struct One Low vol. Mod. Vol. Hi. Vol. Hi. Vol. Comp. Key
Proc. Life of a Little Std. Customized Low var. Hi. Std. priority mgmt
cycle kind Hi Variety Multiple prod. Few major prod Commodity QCDF tasks

Project Plant Flex Fast reaction


None Quality Scheduling
Capacity
Print shop Cost est.
Job Shop Debottlenecking
Mach. shop
Order tracing
Fancy rest.
Standards &
Batch Pharmacy methods
Balancing
Car, TV MRP
Assembly Fast food rest Depend- Expansion
ability Efficiency
Continuous None Steel, Paper Cost Tech change
Capital
Vert. Integ.
Dominant Custom design Std. design
Custom design Long runs
competitive Quality control Vol. Mfg.
Gen. Purpose Spc. Equip
Service FGI
mode High margins Econ of Scale
High margins Distribution
Std. materials
Backup suppliers

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Manufacturing Process Selection

Projects
one-of-a-kind production of a product to customer
order
Batch production
process many different jobs at the same time in
groups or batches
Mass production
produce large volumes of a standard product for
a mass market
Continuous production
used for very-high volume commodity products

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Types of Processes

PROJECT BATCH MASS CONT.

Efficiency, Highly efficient,


Custom work, Flexibility,
Advantages latest technology quality
speed, large capacity,
low cost ease of control

Capital
Non-repetitive, Costly, slow, Difficult to change,
Dis- investment;
small customer difficult to far-reaching errors,
advantages lack of
base, expensive manage limited variety
responsiveness
Machine shops, Automobiles,
Construction, print shops, televisions, Paint, chemicals,
Examples shipbuilding,
bakeries, computers, foodstuffs
spacecraft
education fast food

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Service Process Types
Process Process
tasks flow Professional

High
Diverse/ service
Intermittent
complex

Service shop

Variety

Mass service
Low

Repeated/ Continuous
divided Low Volume High

Source: Slackss 2015


Professional service

High levels of customer (client) contact.

Clients spend a considerable time in the service process.

High levels of customization with service processes being highly


adaptable.

Contact staff are given high levels of discretion in


servicing customers.

People-based rather than equipment-based.


Service shops

Medium levels of volumes of customers

Medium, or mixed, levels of customer contact

Medium, or mixed, levels of customization

Medium, or mixed, levels of staff discretion.


Mass service

High levels of volumes of customers

Low to medium levels of customer contact

Low, or mixed, levels of customization

Low, or mixed, levels of staff discretion.


Process mapping symbols
Process mapping symbols Process mapping symbols
derived from Scientific derived from Systems Analysis
Management

Operation (an activity Beginning or end of process


that directly adds value)

Inspection (a check of Activity


some sort)

Transport (a movement Input or Output from the


of something) process

Delay (a wait, e.g. for materials)


Direction of flow

Storage (deliberate storage,


as opposed to a delay) Decision (exercising discretion)
Group Assignment

In a group having a maximum of 4 members:


1. Select a company of the groups interest.
2. Evaluate the business environments of the company (at
least, its biggest competitor)
3. Evaluate appropriate strategy of the company.
4. Evaluate appropriate operations strategy of the company.
Group Assignment

In a group having a maximum of 4 members:


With the chosen company of the groups interest:
1. Evaluate the major business processes of the company

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