Page 227 - DMGT501_OPERATIONS_MANAGEMENT

Unit 7: Process Control Charts

9. The value the process generates is the difference between what the final product is worth Notes
to the customer and its initial value
10. Make to stock products are made from previously engineered designs, but only are made
after an order has been received.

7.10 Review Questions

1. Describe the basic features of the five major process types and give an example of each type
in (a) food business, (b) health care, and (c) manufacturing.
Draw out the process diagrams of any two of the above.

2. “Companies are focusing on the things they do best and outsourcing all other functions to
trusted partners.” Explain this statement with examples from Indian Industry.
3. What is the difference between high-contact and low-contact systems? Provide some

examples. Would a hotel such as Holiday Inn be classified as a high-contact operation if a
customer on a business trip spends 8 of the 16 hours on the trip sleeping in the hotel?
(a) How does customer contact affect the operations strategy of a service organization?
(b) What implications do high-contact and low-contact systems have for efficiency,

quality, flexibility, and dependability? Use the example of HMOs pressuring hospitals

to reduce the average length of stay in order to reduce the cost of operations.
4. Describe the differences between process improvement and reengineering. When would
you suggest a focus on process improvement? Under what conditions would you undertake
a reengineering project?

Answers: Self Assessment

1. Process 2. Buffering
3. Make to Stock 4. Assemble to order
5. unique products 6. True

7. True 8. False
9. True 10. False

7.11 Further Readings

Adam & Ebert, Production and Operations Management – Concepts, Models and
Behavior, Prentice Hall of India, 1992.
Bradley Gale, Managing Customer Value: Creating Quality and Service that Customers
Can See, Free Press, NY, 1994.
Budhiraja Sudeep, Piramal Gita, and Ghoshal Sumantra, World Class in India: A
Casebook of Companies in Transformation, Penguin Books, 2003.

Kachru, Upendra, Strategic Management–Concepts and Cases, Excel Books, 2005.
Krajewski and Ritzman, Operations Management, Strategy and Analysis, Pearson
Education; 2002.

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