Four process strategies

GLOBAL COMPANY PROFILE: Harley-Davidson ◆ Four Process Strategies 282 ◆ Selection of Equipment 288 ◆ Process Analysis and Design 288 ◆ Special Considerations for Service Process Design 293 ◆ ◆ ◆ Production Technology 294 Technology in Services 298 Process Redesign 298 Alaska Airlines Alaska Airlines CHAPTER OUTLINE C H A P T E R 7 Process Strategy 10 OM STRATEGY DECISIONS • • • • • Design of Goods and Services Managing Quality Process Strategy Location Strategies Layout Strategies • • • • • Human Resources Supply-Chain Management Inventory Management Scheduling Maintenance 279 M09_HEIZ0422_12_SE_C07.indd 279 20/11/15 4:34 PM C H A P T E R 7 Repetitive Manufacturing Works at Harley-Davidson GLOBAL COMPANY PROFILE Harley-Davidson S ince Harley-Davidson’s founding in Milwaukee in 1903, it has competed with hundreds of manufacturers, foreign and domestic. The competition has been tough. Recent competitive battles have been with the Japanese, and earlier battles were with the German, English, and Italian manufacturers. But after over 110 years, Harley is the only major U.S. motorcycle company. The company now has five U.S. facilities and an assembly plant in Brazil. The Sportster powertrain is manufactured in Wauwatosa, Wisconsin, and the sidecars, saddlebags, windshields, and other specialty items are produced in Tomahawk, Wisconsin. The Touring and Softail bikes are assembled in York, Pennsylvania, while the Sportster models, Dyna models, and VRSC models of motorcycles are produced in Kansas City, Missouri. As a part of management’s lean manufacturing effort, Harley groups production of parts that require similar processes together. The result is work cells. Using the latest technology, work cells perform in one location all the operations necessary for production of a specific module. Raw materials are moved to the work cells for module production. The modules then proceed Frame tube bending Frame-building work cells Flowchart Showing the Production Process at Harley-Davidson’s York Assembly Plant Hot-paint frame painting Frame machining THE ASSEMBLY LINE TESTING 28 tests Engines and transmissions Incoming parts Air cleaners Oil tank work cell Fluids and mufflers Shocks and forks Fuel tank work cell Handlebars Wheel work cell Fender work cell Roller testing Engines arrive on a JIT schedule from a 10-station work cell in Milwaukee. In less than 3 hours, 450 parts and subassemblies go into a Harley motorcycle. Crating fckncg/Alamy 280 M09_HEIZ0422_12_SE_C07.indd 280 20/11/15 4:34 PM Rick Friedman/Corbis Rick Friedman/Corbis Wheel assembly modules are prepared in a work cell for JIT delivery to the assembly line. For manufacturers like Harley Harley-Davidson, Davidson which produces a large number of end products from a relatively small number of options, modular bills of material provide an effective solution. to the assembly line. As a double check on quality, Harley precision sensors play a key role in maintaining tolerances has also installed “light curtain” technology, which uses an and producing a quality product. Each day the York facility infrared sensor to verify the bin from which an operator is produces up to 600 heavy-duty factory-custom motorcycles. taking parts. Materials go to the assembly line on a just-in- Bikes are assembled with different engine displacements, time basis, or as Harley calls it, using a Materials as Needed multiple wheel options, colors, and accessories.