Process design is a critical component of supply chain management. According to Chandra and Grabis (30), process design becomes critical in supply chain because, in a business, there can be a very large number of processes. Thus, process design helps in managing the different processes in an organization.
Process design as a concept in supply chain management involves a service-process matrix design and a product-process matrix design. Sinha (59) notes that developing a composite process design presents an organization with a major problem. This is because such a process requires the correct integration of the different processes based on the similarities of features and characteristics. Sufficient integration in the process design ensures the achievement of optimization.
Application of Process design to the Case study
According to Boyer and Verma (103), businesses that deal with both products and services may employ both these two-matrix design in the process design. For instance, Carver’s organics deals with both services and products. Services and products include a food cafe, warehousing, and distribution, sale of fruits and vegetables, marketing and organization of seasonal events. Thus, based on this company’s level of products and services it is vital to have a process design.
Service operations are normally classified based on customer involvement and labor intensity. The services of Carvers Organics need to be oriented toward these two aspects of the service-process matrix. According to Boyer and Verma (104), involving customers in the service process is essential to ensure customers receive customized services. However, involving customers in the service process may generate inefficiencies in the production process. This hence presents a challenge that needs to be addressed. For instance, as the cafe increased in business more and more clients showed some aspects of customer involvement such as home deliveries. Adoption of this strategy resulted in development of production inefficiencies, for instance, some of the clients complained that the recipe of their dishes had been changed. Suggestions have been made by some of the staff at Carvers that may help in improving or addressing the production inefficiencies. According to Boyer and Verma (108), standardizing is key to ensuring that processes runs smoothly. Emma suggests that this can be achieved by the application of technology. An IT system may assist in scheduling and managing all the products. Menus will be already decided by the system hence there is less confusion, as was the case with the old-fashioned shuffle cards. Therefore, big operations require integration of technology that will improve production inefficiencies while still meeting the requirements of the clients.
Operational and Logistics Problems
Some of the operational problems emanate from the lack of standardization. For instance, the lack of a standardized menu has generated problems and has affected, negatively, the recipes of clients. This is the case where Emma is one who decides the recipes, but the chefs end up trying their own recipes. Additionally, supply challenges exist at the visitor center and shop. Jeremy faces the challenge of predicting the sales, which makes it difficult in planning for the T-shirts. According to Lan and Unhelkar (39), having a demand forecasting software may help in solving problems of predicting sales. The customers end up being frustrated. Logistical challenges exist at the warehouse where the business does not have sufficient trucks and drivers to handle the demand. The lack of a stock management system compounds the problem further. As the business expands, Emma views that it would be advisable to include a separate firm that deals in logistics to handle the issue of warehousing. Businesses that seek to enter into the global market are normally faced with supply chain problems (Kuei, Madu, and Lin 4460). Since the Carver business is seeking to expand their markets, new challenges will develop that require the application of process design.
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