Process Strategy
1. The Process Structure is a framework of process components that are observable and measurable (steps, events, tasks, procedures, actions) that create a hierarchy of processes and decide how the process will be conducted. This describes process boundaries through which every component is linked to one another. Within Crate and Barrel, following a step by step procedure is crucial for staying organized. The manufacturing structure used is a batch process. A batch process is repetitive, with multiple products that have a significantly low level of volume. Crate and Barrel uses a back office service structure, being that they have a low amount of customer interaction and rely on standardized line flows and services.
2. Consumer involvement is characterized as a state of mind that motivates consumers to identify their consumption habits and consumption actions with product / service offerings. It is the amount of physical and mental effort put into a buying decision by a customer. When creating an idea to involve your consumers you must focus on the productivity within the employees, as well as the attention grabbers for customers. By offering different types of services such as discounted items, and high quality products and performance it causes a better chance for consumers to be involved. The products purchased by customers are already built and put together, so these efforts are necessary for a company like Crate and Barrel, being that customer involvement is limited. Comparing costs from other corporations influences the consumers buyer choice to be geared towards Crate and Barrel.
3. Resource flexibility is reflected by the ability of the resources to deal with a broad range of manufacturing tasks effectively. In response to design changes and the launch of new products, versatile resources are particularly important. With a concrete schedule, there will be an ability to do tasks effectively. Inventory management along with, scheduling and planning, expands the idea of creating a set schedule on how to launch new products etc. Crate and Barrel would create an idea of where these products will go, as well as how the tasks will get done. By using a concrete schedule, it will be easier to plan ahead to be effective. Also, having resources such as delivery services, will cause a large attraction towards consumers by providing your employees with a set schedule as well as a nice work environment, increasing their work ethic.
4. Capital intensity refers to market processes or sectors that need a product or service to generate significant quantities of investment and thus have a high percentage of fixed assets, such as land, plant, and equipment. High levels of depreciation are also characterized by companies in capital-intensive industries. Crate and Barrel has a factory which was invested in to create products faster as well as provide the best quality for consumers. By investing the money you are capable of saving funds by just hiring employees to provide good customer service.
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