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Oxford University Press, 2012. All rights reserved.
Operations Management
Chapter 3
Operations Processes
and Life Cycles
Jones & Robinson
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Explain how process types have evolved
Define and explain process choice
Explain the role of operations management during the
stages of the product life cycle
Explain the role of operations management during thestages of the service firm life cycle
Learning Objectives
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Mass Production Era: after the industrial revolution
the following process types emerged:
Complex projectse.g. large scale bridge or
road building, exploration of outer space
Batch productione.g. printing shop, hospital
outpatients, classroom based education
Assembly linee.g. domestic white goods,
computers, automotive assembly
Flow processe.g. paper manufacturing, oil
and steel production
Evolution of Process Types
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Evolution of Process Types
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Strategic Operations Era: much more is required of
business to meet the increasing demands of
customers. This led to:
Lean productione.g. Toyota; the removal of
all waste from processes
Agile manufacturinge.g. Benetton; the ability
to alter any aspect of an operation to meet demands
Mass customizatione.g. Dell; low cost goods
customized for individual customers
Innovation and continuous improvement (CI)
e.g. Dyson, Virgin Atlantic; innovation is rapid and
significant change. CI is incremental change
Evolution of Process Types
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Process Type and Process Choice
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Process Types in Materials Processing
Operations
This identifies the standard variety / volume mix of Hayes and Wheelwright (1979)
together with the move to a more strategic management approach in recent years
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Process Types in Customer Processing
Operations
This identifies the standard variety / volume mix of Silvestro et al. (1992) togetherwith the move to a more strategic management approach in recent years
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Characteristics of Process Type
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Product Life Cycle
Introduction
Growth
Maturity Saturation
Decline
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Product Life Cycle
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Service Firm Life Cycle
Entrepreneurship
Multi-site rationalization
Growth Maturity
Decline
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OM Issues during the
Service Firm Life Cycle
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Operations have developed from simple craft projects
through to job shops and batch production.
The industrial revolution brought the opportunity to
mass produce goods using assembly line processes.
Modern businesses have now developed strategic
operations strategies based mainly on providing
higher volumes with more customer choice, such as
mass customization.
The product life cycle has 4 stages:
introduction growth maturity and decline
Summary
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The service firm life cycle has 5 stages:
entrepreneurial stage
multi-site rationalization
growthmaturity
decline
Summary
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