Business 140 Second Exam

Business 140 Second Exam - Business 140 Second Exam...

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Business 140 Second Exam Process- transformation strategy- an organization’s approach to transform resources into goods and services, objective is to find a way to produce goods and services that meet customer requirements and product specifications within cost and other managerial constraints, will have long-term effect on efficiency and flexibility of production, as well as on cost and quality of goods Four Process Strategies Process Focus- 75% of all production is devoted to low-volume, high-variety products in places called job shops, these facilities organized around specific activities or processes. In a factory process may be devoted to welding, grinding and painting. In an office processes may be accounts payable, sales, and payroll. In a restaurant it might be bar and grill or bakery. Process focused- the focus of a company in terms of equipment, layout, and supervision, provide high degree of flexibility, each process is designed to perform a wide variety of activities that handle change, also called intermittent process, have high variable costs with low utilization as low as 5% Repetitive Focus- falls between the product and product focuses, line in the classic assembly line, widely used in all automobiles and household appliances, more structure less flexible, modules- process used by fast food, allows more customization than a continuous process Product Focus- high-volume, low variety, facilities organized around products, also called continuous processes because the have very long, continuous production runs, products like glass, paper, tin sheets, light bulbs, and beer are made using continuous process, goal is to be standardized and have an effective quality control, high fixed costs, low variable costs Mass Customization- about what the customer wants and when they want it, rapid low-cost production of goods and services that fulfill increasingly unique customer desires, brings us the variety of products traditionally provided by low-volume manufacture (process focus) at the cost of standardized high-volume (product-focused) production, link between sales and production is tighter, one essential ingredient is a reliance on modular design, build to order- produce to customer orders, rather than forecasts, drives down inventories but increases pressure on scheduling and supply-chain performance, are tough but good organizations are heading there Comparison of Process Choices See Chart 7.2 Crossover Charts- costs at the possible volumes for more than one process Process Analysis and Design - is the process designed to achieve competitive advantage in terms of differentiation,
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Business 140 Second Exam - Business 140 Second Exam...

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