Process Strategy and Analysis
Concentric AB follows a set of managing processes and strategies to distinguish from others and reach a competitive advantage.
Process Structure in Service - Hybrid Office Structure
Concentric AB follows
a hybrid office structure model since it’s divided into several departments
going from sales to manufacturing. It’s a combination of both front and back;
it starts with the sales department where customer contact is highly performed.
The sale representative works one on one with the customer to obtain all the
order details and having the order placed to the back where there’s no customer
contact anymore. At this point the product is being manufactured based on the
order details received. The work here is standardized going from one service
provider to the next until the product is completed.
Process Structure in Manufacturing - Job Process Strategy
Concentric
AB follows a job process in regards to manufacturing. A job process
consists of going from raw material to finished products with low
volumes and high customization. As each order is completed operators
become better skilled. Concentric AB takes each new order as a single
unit and processes it separately. Most orders consist of a sequence
of different processing steps to complete a product. In this company
the largest inventory is the work in progress rather than the raw
material available at hand, the cost here is relatively high due to
the highly specialized workers and the flexible equipment needed to
obtain the final product.
Production
and Inventory Structure - Make-to-Order
Currently, Concentric
uses the “make-to-order” strategy to work with their production and inventory.
The company only begins to produce once the order from the customer has been
received or after the consultation process. This strategy requires sales
representatives to be highly involved with the customers to obtain all the
necessary information to produce the desired products. Concentric AB uses a
variety of product designs to meet with all customer demands. In this
environment, the make-to-order processing and planning is highly specialized
since the products produced are one of a kind. It consists of taking into
considerations several factors such as the value of the product, customer
patience, and the manufacturing lead-time.
Cause-and-Effect Fishbone Diagram
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