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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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Jones & Robinson: Operations Management

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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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



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Process Type and Process Choice



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



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



Characteristics of Process Type



Product Life Cycle

Introduction

Growth

Maturity Saturation

Decline



Product Life Cycle



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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