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2002 CBS Casebook_12 - PD PD F XC h a n g e Vi e w F XC h a...

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Columbia Business School Management Consulting Association Guidebook 2002 12 Please do not duplicate, copy, print or photocopy Types of Processes Depending on the goals of the firm, processes range from assembly lines (mass production of one product for maximum throughput and minimum flexibility) to projects (slow leadtimes but maximum flexibility). In between are batch processes and job shops. Definitions Bottlenecks: When one part of a process is slower than the ones preceding it, then there is a bottleneck. These are indicated by work-in-process inventory piling up in front of it. (For example, imaging two people are making sandwiches. Person #1 gets out the bread, and person #2 puts on the meat, condiments, etc. on it. If person #1 can get out two slices of bread every 5 seconds and it takes person #2 10 seconds to finish the sandwich, then stacks of bread – i.e., work-in-process inventory – will build up in front of person #2). Lot Sizes:
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