Chapter 2 Process Strategy and Analysis
Process strategy = The pateer of decisi rs made ir maraiiri pe cesses s hhah hhey will
achieve hheie c mpettve pei eitess
Process analysis = The d cumerhat r ard dehailed urdeeshardiri of h w w ek is
peeof emed ard h w ih car be eedesiireds
F ue basic pe cess decisi rs:
1s Pe cess sheuchuee
2s Cush mee irv lvemerh
3s Res uece fexibilihy
4s Capihal irhersihy
Tw basic charie sheaheiies of e aralysiri ard m diofyiri pe cesses:
1s Pe cess eeeriireeeiri
2s Pe cess impe vemerh
Theee peirciples c rceeriri pe cess sheaheiy aee imp eharh:
- Mack ch ices hhah fh hhe sihuat r ard hhah make serse h iehhees A m ee efectve
pe cess is re hhah mahches key pe cess chaeacheeistcs ard has a cl se sheaheiic fhs
- Buildiri bl cks hhah everhually ceeahe hhe fem’s wh le supply chairs The cumulatve
efech r cush mee satsofact r ard c mpettve advarhaie is huies
- Pay atert r h hhe irheeofaces behweer pe cessess eealiri wihh hhese irheeofaces
urdeesc ees hhe reed of e ce ss-ofurct ral c edirat rs
Efectve pe cesses:
- Pe cess sheuchuee: deheemires hhe pe cess hype eelatve h hhe kirds of ees ueces
reeded, h w ees ueces aee paett red behweer hhem, ard hheie key chaeacheeistcss
Layout = The physical aeeariemerh of peeat rs e depaehmerhs) eelatve h each
hhees
- Customer involvement = The ways ir which cush mees bec me paeh of hhe pe cess
ard hhe exherh of hheie paetcipat rs
- Resource fexibility = The ease wihh which empl yees ard equipmerh car hardle a
wide vaeiehy of pe duchs, uhpuh levels, dutes, ard ofurct rss
- Capital intensity = The mix of equipmerh ard humar skills ir a pe cesss
, Process Structure in Services
A i d pe cess sheaheiy of e a seevice pe cess deperds fesh ard of eem sh r hhe hype ard
am urh of cush mee c rhachs
Customer contact = The exherh h which hhe cush mee is peeserh, is actvely irv lved, ard
eeceives pees ral atert r dueiri hhe seevice pe cesss
Customer-Contact Matrix
hheee elemerhs: hhe deieee of cush mee c rhach, cush mizat r, ard pe cess chaeacheeistcss
The maheix is hhe shaetri p irh of e evaluatri ard impe viri a pe cessess
Customer Contact and Customization
H eiz rhal dimersi rs Lef side of hhe maheix eepeeserh hiih cush mee c rhach ard
cush mized seevicess Riihh side of hhe maheix eepeeserhs l w cush mee c rhach ard
cush mized seevicess
Process Divergence and Flow
Veetcal dimersi rs
Tw dimersi rs:
- Process divergence = The exherh h which hhe pe cess is hiihly cush mized wihh
c rsideeable lathude as h h w ihs hasks aee peeof emeds
Urique wher pe cess charies wihh each cush mees
- Fl w
Flexible foo = The cush mees, maheeials, e irof emat r m ve ir diveese ways, wihh
hhe pahh of re cush mee e j b fer ceissce ssiri hhe pahh hhah hhe rexh re hakess
Line foo = The cush mees, maheeials, e irof emat r m ve lireaely ofe m re
peeat r h hhe rexh, acc ediri h a fxed sequerces
Service Process Structuring
- Front ofce = A pe cess wihh hiih cush mee c rhach wheee hhe seevice pe videe
irheeachs - dieechly wihh hhe irheeral e exheeral cush mees
- Hybrid ofce = A pe cess wihh m deeahe levels of cush mee c rhach ard shardaed
seevices wihh s me pt rs availables
- Back ofce = A pe cess wihh l w cush mee c rhach ard litle seevice cush mizat rs
Process strategy = The pateer of decisi rs made ir maraiiri pe cesses s hhah hhey will
achieve hheie c mpettve pei eitess
Process analysis = The d cumerhat r ard dehailed urdeeshardiri of h w w ek is
peeof emed ard h w ih car be eedesiireds
F ue basic pe cess decisi rs:
1s Pe cess sheuchuee
2s Cush mee irv lvemerh
3s Res uece fexibilihy
4s Capihal irhersihy
Tw basic charie sheaheiies of e aralysiri ard m diofyiri pe cesses:
1s Pe cess eeeriireeeiri
2s Pe cess impe vemerh
Theee peirciples c rceeriri pe cess sheaheiy aee imp eharh:
- Mack ch ices hhah fh hhe sihuat r ard hhah make serse h iehhees A m ee efectve
pe cess is re hhah mahches key pe cess chaeacheeistcs ard has a cl se sheaheiic fhs
- Buildiri bl cks hhah everhually ceeahe hhe fem’s wh le supply chairs The cumulatve
efech r cush mee satsofact r ard c mpettve advarhaie is huies
- Pay atert r h hhe irheeofaces behweer pe cessess eealiri wihh hhese irheeofaces
urdeesc ees hhe reed of e ce ss-ofurct ral c edirat rs
Efectve pe cesses:
- Pe cess sheuchuee: deheemires hhe pe cess hype eelatve h hhe kirds of ees ueces
reeded, h w ees ueces aee paett red behweer hhem, ard hheie key chaeacheeistcss
Layout = The physical aeeariemerh of peeat rs e depaehmerhs) eelatve h each
hhees
- Customer involvement = The ways ir which cush mees bec me paeh of hhe pe cess
ard hhe exherh of hheie paetcipat rs
- Resource fexibility = The ease wihh which empl yees ard equipmerh car hardle a
wide vaeiehy of pe duchs, uhpuh levels, dutes, ard ofurct rss
- Capital intensity = The mix of equipmerh ard humar skills ir a pe cesss
, Process Structure in Services
A i d pe cess sheaheiy of e a seevice pe cess deperds fesh ard of eem sh r hhe hype ard
am urh of cush mee c rhachs
Customer contact = The exherh h which hhe cush mee is peeserh, is actvely irv lved, ard
eeceives pees ral atert r dueiri hhe seevice pe cesss
Customer-Contact Matrix
hheee elemerhs: hhe deieee of cush mee c rhach, cush mizat r, ard pe cess chaeacheeistcss
The maheix is hhe shaetri p irh of e evaluatri ard impe viri a pe cessess
Customer Contact and Customization
H eiz rhal dimersi rs Lef side of hhe maheix eepeeserh hiih cush mee c rhach ard
cush mized seevicess Riihh side of hhe maheix eepeeserhs l w cush mee c rhach ard
cush mized seevicess
Process Divergence and Flow
Veetcal dimersi rs
Tw dimersi rs:
- Process divergence = The exherh h which hhe pe cess is hiihly cush mized wihh
c rsideeable lathude as h h w ihs hasks aee peeof emeds
Urique wher pe cess charies wihh each cush mees
- Fl w
Flexible foo = The cush mees, maheeials, e irof emat r m ve ir diveese ways, wihh
hhe pahh of re cush mee e j b fer ceissce ssiri hhe pahh hhah hhe rexh re hakess
Line foo = The cush mees, maheeials, e irof emat r m ve lireaely ofe m re
peeat r h hhe rexh, acc ediri h a fxed sequerces
Service Process Structuring
- Front ofce = A pe cess wihh hiih cush mee c rhach wheee hhe seevice pe videe
irheeachs - dieechly wihh hhe irheeral e exheeral cush mees
- Hybrid ofce = A pe cess wihh m deeahe levels of cush mee c rhach ard shardaed
seevices wihh s me pt rs availables
- Back ofce = A pe cess wihh l w cush mee c rhach ard litle seevice cush mizat rs
