Inventory control at wheeled coach case study answers

Lee College Ch 7 Process Strategy at Wheeled Coach Video Case Study Questions
Subject
Business Finance

School
Lee College

Question Description
Review and read the introduction at the end of Chapter 7 Process Strategy at Wheeled Coach. Watch the Wheeled Coach video.

Answer these questions:

1. Why do you think major auto manufacturers do not build ambulances?

2. What is an alternative process strategy to the assembly line that Wheeled Coach currently uses?

3. Why is it more efficient for the work cells to prepare “mod- ules” and deliver them to the assembly line than it would be to produce the component (e.g., interior upholstery) on the line?

4. How does Wheeled Coach manage the tasks to be performed at each work station?

attachment_1
Unformatted Attachment Preview
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. The result (MAN) system. is a huge number of variations in the motorcycles available, The 12.5-million-square-foot York facility includes manu- which allows customers to individualize their purchase. (See www.Harley-Davidson.com for an example of modular machining, painting, and polishing. Innovative manufacturing customization.) The Harley-Davidson production system techniques use robots to load machines and highly auto- works because high-quality modules are brought together on mated production to reduce machining time. Automation and a tightly scheduled repetitive production line. Engines are assembled in Memomonee Falls, Wisconsin, and placed in their own protective containers for shipment to the York facility. Upon arrival in York, engines are placed on an overhead conveyor for movement directly to the assembly line. It all comes together on the line. Any employee who spots a problem has the authority to stop the line until the problem in corrected. The multicolored “andon” light above the line signals the severity of the problem. Rick Friedman/Corbis Nuccio DiNuzzo/KRT/Newscom facturing cells that perform tube bending, frame-building, 281 M09_HEIZ0422_12_SE_C07.indd 281 20/11/15 4:34 PM L E A RNING OBJECTIVES LO 7.1 Describe four process strategies 282 LO 7.2 Compute crossover points for different processes 286 LO 7.3 Use the tools of process analysis 289 LO 7.4 Describe customer interaction in service processes 293 LO 7.5 Identify recent advances in production technology 294 Four Process Strategies Process strategy An organization’s approach to transforming resources into goods and services. LO 7.1 Describe four process strategies In Chapter 5, we examined the need for the selection, definition, and design of goods and services. Our purpose was to create environmentally friendly goods and services that could be delivered in an ethical, sustainable manner. We now turn to their production. A major decision for an operations manager is finding the best way to produce so as not to waste our planet’s resources. Let’s look at ways to help managers design a process for achieving this goal. A process strategy is an organization’s approach to transforming resources into goods and services. The objective is to create a process that can produce offerings that meet customer requirements within cost and other managerial constraints. The process selected will have a long-term effect on efficiency and flexibility of production, as well as on cost and quality of the goods produced. Virtually every good or service is made by using some variation of one of four process strategies: (1) process focus, (2) repetitive focus, (3) product focus, and (4) mass customization. The relationship of these four strategies to volume and variety is shown in Figure 7.1. We examine Arnold Palmer Hospital as an example of a process-focused firm, Harley-Davidson as a repetitive producer, Frito-Lay as a product-focused operation, and Dell as a mass customizer. Process Focus Process focus A production facility organized around processes to facilitate lowvolume, high-variety production. Figure The vast majority of global production is devoted to making low-volume, high-variety products in places called “job shops.” Such facilities are organized around specific activities or processes. In a factory, these processes might be departments devoted to welding, grinding, and painting. In an office, the processes might be accounts payable, sales, and payroll. In a restaurant, they might be bar, grill, and bakery. Such facilities are process focused in terms of equipment, layout, and supervision. They provide a high degree of product flexibility as products move between the specialized processes. Each process is designed to perform a variety of activities and handle frequent changes. Consequently, they are also called intermittent processes. 7.1 Volume Low Volume Process Selected Must Fit with Volume and Variety Variety (flexibility) High Variety one or few units per run (allows customization) Process Focus projects, job shops (machine, print, hospitals, restaurants) Arnold Palmer Hospital High Volume Mass Customization (difficult to achieve but huge rewards) Dell Computer Repetitive (autos, motorcycles, home appliances) Harley-Davidson Changes in Modules modest runs, standardized modules Changes in Attributes (such as grade, quality, size, thickness, etc.) long runs only Repetitive Process Poor Strategy (Both fixed and variable costs are high.) Product Focus (commercial baked goods, steel, glass, beer) Frito-Lay 282 M09_HEIZ0422_12_SE_C07.indd 282 20/11/15 4:35 PM CHAP T ER 7 | PROCESS STRATEGY (a) (b) (c) (d) Process Focus (low-volume, high-variety, intermittent process) Arnold Palmer Hospital Repetitive Focus (modular) Product Focus (high-volume, low-variety, continuous process) Frito-Lay Mass Customization (high-volume, high-variety) Many inputs Raw material and module inputs Few inputs Many part and component inputs (surgeries, sick patients, baby deliveries, emergencies) (multiple engines and wheel modules) (corn, potatoes, water, seasoning) (chips, hard drives, software, cases) Harley-Davidson 283 Dell Computer Few modules Many modules Many departments and many routings Figure Many output versions (custom PCs and notebooks) Tund/Shutterstock 300dpi/Shutterstock Output variations in size, shape, and packaging (3-oz, 5-oz, 24-oz packages labeled for each market) Archman/Shutterstock Modules combined for many outputs (many combinations of motorcycles) Brasiliao/Shutterstock Many different outputs (uniquely treated patients) 7.2 Four Process Options with an Example of Each Referring to Figure 7.2(a), imagine a diverse group of patients entering Arnold Palmer Hospital, a process-focused facility, to be routed to specialized departments, treated in a distinct way, and then exiting as uniquely cared-for individuals. Process-focused facilities have high variable costs with extremely low utilization of facilities, as low as 5%. This is the case for many restaurants, hospitals, and machine shops. However, facilities that lend themselves to electronic controls can do somewhat better. Repetitive Focus Repetitive processes, as we saw in the Global Company Profile on Harley-Davidson, use modules (see Figure 7.2b). Modules are parts or components previously prepared, often in a productfocused (continuous) process. The repetitive process is the classic assembly line. Widely used in the assembly of virtually all automobiles and household appliances, it has more structure and consequently less flexibility than a process-focused facility. Fast-food firms are another example of a repetitive process using modules. This type of production allows more customizing than a product-focused facility; modules (for example, meat, cheese, sauce, tomatoes, onions) are assembled to get a quasi-custom product, a cheeseburger. In this manner, the firm obtains both the economic advantages of the product-focused model (where many of the modules are prepared) and the custom advantage of the low-volume, high-variety model. M09_HEIZ0422_12_SE_C07.indd 283 VIDEO 7.1 Process Strategy at Wheeled Coach Ambulance Modules Parts or components of a product previously prepared, often in a continuous process. Repetitive process A product-oriented production process that uses modules. 20/11/15 4:35 PM 284 PA RT 2 | D ES I GN I N G O P ERATI ONS Product Focus Product focus A facility organized around products; a product-oriented, high-volume, low-variety process. High-volume, low-variety processes are product focused. The facilities are organized around products. They are also called continuous processes because they have very long, continuous production runs. Products such as glass, paper, tin sheets, lightbulbs, beer, and potato chips are made via a continuous process. Some products, such as lightbulbs, are discrete; others, such as rolls of paper, are made in a continuous flow. Still others, such as repaired hernias at Canada’s famous Shouldice Hospital, are services. It is only with standardization and effective quality control that firms have established product-focused facilities. An organization producing the same lightbulb or hot dog bun day after day can organize around a product. Such an organization has an inherent ability to set standards and maintain a given quality, as opposed to an organization that is producing unique products every day, such as a print shop or general-purpose hospital. For example, FritoLay’s family of products is also produced in a product-focused facility [see Figure 7.2(c)]. At FritoLay, corn, potatoes, water, and seasoning are the relatively few inputs, but outputs (like Cheetos, Ruffles, Tostitos, and Fritos) vary in seasoning and packaging within the product family. A product-focused facility produces high volume and low variety. The specialized nature of the facility requires high fixed cost, but low variable costs reward high facility utilization. Mass Customization Focus Mass customization Rapid, low-cost production that caters to constantly changing unique customer desires. Our increasingly wealthy and sophisticated world demands individualized goods and services. A peek at the rich variety of goods and services that operations managers are called on to supply is shown in Table 7.1. The explosion of variety has taken place in automobiles, movies, breakfast cereals, and thousands of other areas. Despite this proliferation of products, operations managers have improved product quality while reducing costs. Consequently, the variety of products continues to grow. Operations managers use mass customization to produce this vast array of goods and services. Mass customization is the rapid, low-cost production of goods and services that fulfill increasingly unique customer desires. But mass customization (see the upper-right section of Figure 7.1) is not just about variety; it is about making precisely what the customer wants when the customer wants it economically. Mass customization brings us the variety of products traditionally provided by low-volume manufacture (a process focus) at the cost of standardized high-volume (product-focused) production. However, achieving mass customization is a challenge that requires sophisticated operational capabilities. Building agile processes that rapidly and inexpensively produce custom products requires a limited product line and modular design. The link between sales, design, production, supply chain, and logistics must be tight. Dell Computer [see Figure 7.2(d)] has demonstrated that the payoff for mass customization can be substantial. More traditional manufacturers include Toyota, which recently announced TABLE 7.1 Mass Customization Provides More Choices Than Ever NUMBER OF CHOICESa ITEM 1970s 21ST CENTURY Vehicle styles 18 1,212 Bicycle types 8 211,000c iPhone mobile game apps 0 1,200,000g Web sites 0 634,000,000d 267 1,551e 40,530 300,0001 Movie releases per year New book titles Houston TV channels Breakfast cereals Items (SKUs) in supermarkets High-definition TVs 5 185 160 340 14,000b 150,000f 0 102 Source: Various; however, many of the data are from the Federal Reserve Bank of Dallas. aVariety available in America; worldwide the variety increases even more. b1989. cPossible combinations for one manufacturer. dRoyal Pingdom Estimate (2015). ewww.the-numbers.com/movies/year/2014. fSKUs managed by H. E. Butts grocery chain. gBusiness Week, April 26, 2015. M09_HEIZ0422_12_SE_C07.indd 284 20/11/15 4:35 PM CHAP T ER 7 | PROCESS STRATEGY 285 delivery of custom-ordered cars in 5 days. Similarly, electronic controls allow designers in the textile industry to rapidly revamp their lines and respond to changes. The service industry is also moving toward mass customization. For instance, not very many years ago, most people had the same telephone service. Now, not only is the phone service full of options, from caller ID to voice mail, but contemporary phones are hardly phones. They may also be part camera, computer, game player, GPS, and Web browser. Insurance companies are adding and tailoring new products with shortened development times to meet the unique needs of their customers. And firms like iTunes, Spotify, Rhapsody, Amazon, and eMusic maintain a music inventory on the Internet that allows customers to select a dozen songs of their choosing and have them made into a custom playlist. Similarly, the number of new books and movies increases each year. Mass customization places new demands on operations managers who must create and align the processes that provide this expanding variety of goods and services. Mass customization suggests a high-volume system in which products are built-to-order. Build-to-order (BTO) means producing to customer orders, not forecasts. But high-volume build-to-order is difficult. Some major challenges are: Making Mass Customization Work ◆ ◆ ◆ ◆ ◆ Product design must be imaginative. Successful build-to-order designs include a limited product line and modules. Ping Inc., a premier golf club manufacturer, uses different combinations of club heads, grips, shafts, and angles to make 20,000 variations of its golf clubs. Process design must be flexible and able to accommodate changes in both design and technology. For instance, postponement allows for customization late in the production process. Toyota installs unique interior modules very late in production for its popular Scion, a process also typical with customized vans. Postponement is further discussed in Chapter 11. Inventory management requires tight control. To be successful with build-to-order, a firm must avoid being stuck with unpopular or obsolete components. With virtually no raw material, Dell puts custom computers together in less than a day. Tight schedules that track orders and material from design through delivery are another requirement of mass customization. Align Technology, a well-known name in orthodontics, figured out how to achieve competitive advantage by delivering custom-made clear plastic aligners within 3 weeks of the first visit to the dentist’s office (see the OM in Action box “Mass Customization for Straight Teeth”). Responsive partners in the supply chain can yield effective collaboration. Forecasting, inventory management, and ordering for JCPenney shirts are all handled for the retailer by its supplier in Hong Kong. Build-to-order (BTO) Produce to customer order rather than to a forecast. Postponement The delay of any modifications or customization to a product as long as possible in the production process. Mass customization/build-to-order is the new imperative for operations. There are advantages to mass customization and building to order: first, by meeting the demands of the marketplace, firms win orders and stay in business; in addition, they trim costs (from personnel to inventory to facilities) that exist because of inaccurate sales forecasting. Mass Customization for Straight Teeth Align Technology of Santa Clara, California, wants to straighten your teeth with a clear plastic removable aligner. The company is a mass customizer for orthodontic treatments. Each patient is very custom, requiring a truly unique product; no two patients are alike. Based on dental impressions, X-rays, and photos taken at the dentist’s office and sent to Align headquarters, the firm builds a precise 3-D computer model and file of the patient’s mouth. This digitized file is then sent to Costa Rica, where technicians develop a comprehensive treatment plan, which is then returned to the dentist for approval. After approval, data from the virtual models and treatment plan are used to program 3-D printers to form molds. The molds are then shipped to Juarez, Mexico, where a series of customized teeth aligners—usually about 19 pairs—are made. The time required for this process: about 3 weeks from start to finish. M09_HEIZ0422_12_SE_C07.indd 285 The clear aligners take the place of the traditional “wire and brackets.” Align calls the product “complex to make, easy to use.” With good OM, mass customization works, even for a very complex, very individualized product, such as teeth aligners. Hugh Grannum/KRT/Newscom OM in Action Sources: Busine ...
Purchase answer to see full attachment

Student has agreed that all tutoring, explanations, and answers provided by the tutor will be used to help in the learning process and in accordance with Studypool's honor code & terms of service.
Tags: business management operations management Lee College process strategy Strategy at Wheeled Coach alternative process strategy
Final Answer

EXMenWriter (15644)
UCLA
COMPLETION STATUS:
100%
15 MILLION STUDENTS HELPED!
Sign up to view the full answer
Review

Honor Code
flag
Report DMCA

Anonymous
Great content here. Definitely a returning customer.

Studypool

4.7

Trustpilot

4.5

Sitejabber

4.4
Similar Questions
MKT 571 Marketing exam
Need help with a MKT 571 exam for the end of course test which is due in a week....
ACC 418 Unit 4 Information Asymmetry responses
** There are 2 responses to read. After reading, write a 100 word response per response.Response 1:Our week four lecture n...
most important external environment of cruise industry
Discuss the Royal Caribbean Cruises of the external environment you think is most important in the industry you are studyi...
Apple & Toyota Global Creative Organizations Study
The purpose of this assignment is to provide students an opportunity to apply research definitions of a creative organizat...
Bus 415 DQ Unit 5 Security Interest
** There are two questions, write a 250 word response for each. Discussion Question 1: Discuss the general rules of priori...
Case study
Develop a 1,050-word essay to identify one global creative organization, as defined in Ch. 10 and 11 of Mastering Leadersh...
Related Tags
math business and finance business and finance Total Rewards Package information-gathering tools communication case study website design Assessment Criteria zoning plan project management standard deviation