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Unformatted text preview: between 0.6 and 1. where As volume increases of a sphere the surface doesn’t increase by as much As (metaphor) (metaphor) Cost Structures of Craft Production and Mass Production (from “The Second Industrial Mass
Divide”, Piore & Sabel, 1986) Piore Operations Management Functions Operations
Facility Location Where we put our layouts How we organize our layouts How do we make sure are products are properly How produced and satisfy consumer needs produced Facility Layout and Production Scheduling Quality Control Inventory Management Facility Location Facility
Resources Labor Raw Material Infrastructure Retail sites Retail Customer interaction “Just in time” Customers “Clusters” (certain areas where b/c of # factors there is a Clusters” critical mass of expertise and available resources that makes particular place a uniquely beneficial location makes Silicon Valley (IT) (California) - given moment a critical mass Silicon was obtained and now it is unthinkable to not have location in Silicon Valley Silicon Boston, New Jersey (chemicals, pharmaceuticals) Manhattan (financial services) Outsourcing Outsourcing
+ Time to focus on Time company’s primary function function + Increased level of Increased expertise expertise + Cost effectiveness + Decreased overhead + Risk reduction + Flexibility + Technology - Less personal approach - Less control by owner in Less planning, implementing & carrying out company’s future future - Potential for competing Potential for the outsourcing firm’s time time Types of Operations Types
Craft production Hi...
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This note was uploaded on 03/08/2009 for the course AEM 1200 taught by Professor Perez,p.d. during the Spring '06 term at Cornell University (Engineering School).
- Spring '06