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QUIZ 4.6.22.pdf - Perez, Roselle D. BSBA- C040 1-4: Four...

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Perez, Roselle D.BSBA- C0401-4: Four Process StrategiesProcess Strategy(Marta Alarcón & Jorge Moreno)A process (or transformation) strategy is an organization’s approach to transformingresources into goods and services.The objective of a process strategy is to build a production process that meets customerrequirements and product specification within cost and other managerial constraints.The process selected will have a long term effect on efficiency and flexibility of production aswell as on cost and quality of the goods produced. Therefore the limitations of a process strategyare at the time of the process decision.Every organization will have one of the four process strategies:Process FocusRepetitive FocusProduct FocusMass CustomizationProcess focusin a factory; these processes might be departments devoted to welding,grinding, and painting. In an office the processes might be accounts payable, sales, andpayroll. In a restaurant, they might be bar, grill, and bakery. The process focuses on lowvolume, high variety products are also called job shop. These facilities are process focusin terms of equipment, layout, and supervision.Repetitive focus;falls between the product and process focus. The repetitive process is aproduct-oriented production process that uses modules. Modules are parts or components
of a product previously manufactured or prepared, often in a continuous process. Fast-food firms are an example of repetitive process using modules.Product focusare high volume, low variety processes; also called continuous processes.Products such as light bulbs, rolls of paper, beer, and bolts are examples of productprocess. This type of facility requires a high fixed cost, but low costs. The reward is highfacility utilization.Mass customizationsfocus; is rapid, low-cost production that caters to constantlychanging unique customer desires. This process is not only about variety; it is aboutmaking precisely what the customer wants when the customer wants it economically.

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