Operations Chapter 6

• 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

• 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

• 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

• Most important characteristics are degree of standardization and demand volume
• 

• 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

• 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

total redesign of a process for breakthrough improvements

document that uses standardized symbols to chart the productive and nonproductive flow of activities involved in a process

A schematic diagram of a product that shows the relationship of component parts to parent assemblies

A set of documents that detail manufacturing and service delivery specification

• 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