Operations and Supply Chain Management The Core

414 OPERATIONS AND SUPPLY CHAIN MANAGEMENT
mean producing the best; it means consistently producing products and services
that give the customers their money’s worth.
4. Clarify Process Flows Clarification of flows, based on JIT themes, can dramatically
improve the process performance. Here are three examples:
First, FedEx Corporation changed air flight patterns from origin-to-destination
to origin-to-hub, where the freight is transferred to an outbound plane heading for
the destination. This revolutionized the air transport industry. Second, the order
entry department of a manufacturing firm converted from functional subdepartments
to customer-centered work groups and reduced the order processing lead time
from eight to two days. Finally, Super Maids sends in a team of house cleaners, each
with a specific responsibility, to clean a part of each house quickly with parallel
processes. Changes in process flows can literally revolutionize service industries.
5. Revise Equipment and Process Technologies Revising technologies involves
evaluation of the equipment and processes for their ability to meet the process
requirements, to process consistently within tolerance, and to fit the scale and
capacity of the work group.
Speedi Lube converted the standard service station concept to a specialized
lubrication and inspection center by changing the service bays from drive-in to
drive-through and by eliminating the hoists and instead building pits under the cars
where employees have full access to the lubrication areas on the vehicle.
A hospital reduced operating room setup time so it had the flexibility to perform
a wider range of operations without reducing the operating room availability.
6. Level the Facility Load Service firms synchronize production with demand. They have
developed unique approaches to leveling demand so they can avoid making customers
wait for service. McDonald’s offers a special breakfast menu in the morning. Retail
stores use take-a-number systems. The post office charges more for next-day delivery.
These are all examples of the service approach for creating uniform facility loads.
7. Eliminate Unnecessary Activities A step that does not add value is a candidate
for elimination. A step that does add value may be a candidate for reengineering to
improve the process consistency or to reduce the time to perform the tasks.
PRIOR TO AN OPERATION,
NURSES CHECK THE STERILE
INSTRUMENTS AND OTHER
EQUIPMENT THAT WILL BE
USED. A PRE-OPERATIVE
CHECKLIST IS USED TO
ENSURE THAT THE DOCTORS
WILL HAVE WHAT THEY NEED
DURING SURGERY, THUS
AVOIDING DELAYS AND
INCREASING PATIENT SAFETY.
©Dana Neely/Stone/Getty
Images