Operations Chapter 6

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  1. Elements of process strategy - how capital intensive
    • Overall approach to producing goods and services
    • Defines:
    • -Capital intensity - mix of capital (equipment) and labor used
    • -Process flexibility
    • -Vertical integration- will you produce your own inputs
    • -Customer involvement
  2. Outsourcing decision
    • Cost - production, logistics, inventory, rework, currency
    • Capacity - immediate & longterm
    • Quality - capabilities, consistency, responsiveness
    • Speed - manufacture, delivery, change
    • Reliability - quantity, quality, timing, stability
    • Expertise - intellectual property, knockoffs, potential competitor
  3. Mass production
    • producing large volumes of a standard product for a mass market
    • -Product demand is stable, volume is high
    • -like automobiles, televisions, personal computers, fast food
  4. The product process matrix
    • Most important characteristics are degree of standardization and demand volume
    • Image Upload 1
  5. Continuous production
    • producing very high-volume commodity products
    • -very high volume, very standardized, highly automated, typically continuously in operation
    • -like refined oil, treated water, paints, chemicals, foodstuffs
  6. Batch production
    • processing many different jobs at the same time in groups
    • -typically made to customer order, volume is low, demand fluctuates
    • -like printers, bakeries, machine shops, education
  7. Process innovation
    total redesign of a process for breakthrough improvements
  8. process flowchart
    document that uses standardized symbols to chart the productive and nonproductive flow of activities involved in a process
  9. Assembly charts
    A schematic diagram of a product that shows the relationship of component parts to parent assemblies
  10. Process plans
    A set of documents that detail manufacturing and service delivery specification
  11. Basic types of production systems differ by
    • Type and variety of products
    • Type of customer
    • Volume and variability of demand
    • Type of work,degreeof automation,type of equipment, flower work
    • Worker skills
    • Advantages and disadvantages
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Operations Chapter 6
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