Thursday, May 29, 2008

Process Selection

Victoria’s Secret product flow is the Batch flow which produces medium variety and medium volume depending on the customers needs. The products are produced in batches according to their characteristics and sold in batches. Each batch of the product flows from one operation to another. A batch process executes different production runs for different products. The disadvantage is the setup time required to change from one product to the other, but the advantage is that some flexibility in product mix can be achieved. A batch process is similar to a job shop, except that the sequence of activities tends to be in a line and is less flexible. In a batch process, dominant flows can be identified. The activities, while in-line, are disconnected from one another. Products are produced in batches, for example, to fill specific customer orders.

Victoria’s Secret customer order process is Make to stock (MTS) which provides faster service to customers from available stock and lower costs than a make to order process. It has higher flexibility for product customization. Most of Victoria’s Secret products are customized in different colors, sizes, and designs. The MTS process has a standard product line specified by the producer, not by the customer. The products are carried in inventory to immediately fulfill customer demand. Before customer demands the product is all ready in stock. If the product is not available, a back order can be placed or the order can be lost. The MTS process is measured by service level and efficiency in replenishing inventory.

Victoria’s Secret fall into the process of low volume multiple products characteristics matrix were the product is produced in low volume with multiple variety. The life cycle of the product is medium it doesn’t last short and it doesn’t have a long life either. Firms utilizing batch processes provide similar items on a repeat basis, usually in larger volumes than that associated with job shops. Products are sometimes accumulated until a lot can be processed together. When the most effective manufacturing route has been determined, the higher volume and repetition of requirements can make more efficient use of capacity and result in significantly lower costs. Since the volume is higher than that of the job shop, many processes can be utilized in repetition, creating a much smoother flow of work-in-process throughout the shop. While the flow is smoother, the work-in-process still moves around to the various machine groupings throughout the shop in a somewhat jumbled fashion. This is described as a disconnected line flow or intermittent flow.

Victoria’s Secret process selection is influenced by various factors, labor supply and cost, customization, competition in the market, and state of technology. There is competition with other department stores that sell similar products. There’s mostly price competition between other stores and Victoria Secret, however everybody knows Victoria’s Secret brand and that is beneficial for Victoria’s Secret.

Victoria’s Secret cannot adopt a mass customization method because it does not have standardized products with few options. With Victoria’s Secret process selection they do not customize their products for their customers. However their beauty products have different scents to give customers a variety. With Victoria’s Secrets other lines such as its intimate wear it cannot be customized however it is distributed with different sizes and different colors to meet different customer’s wants. Mass customization has changed the dynamics of the product-process matrix.

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