Chapter 7

Chapter 7 - Chapter 7: Process Strategy I. Introduction a....

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Chapter 7: Process Strategy I. Introduction a. Process Strategy: an organization’s approach to transform resources into goods and services i. Objective = find a way to produce goods and services that meet customer II. Four Process Strategies a. 75% if of all global production is devoted to making low-volume, high variety products b. Processed Focused : a production facility organized around processes to facilitate low-volume, high-variety production i. Provide high degree of product flexibility ii. Intermittent Processes designed to perform a variety of activities and handle changes iii. High variable cost with extremely low utilization of facilities c. Repetitive Focus : a production oriented production processes that uses modules i. Modules parts or components previously prepared, often in a continuous process ii. Classic assembly line iii. More structure and less flexibility d. Production Focus : facility organized around products a product-oriented, high- volume, low variety process i. Called continuous processes because they have very long, continuous production runs ii. Standardization and effective quality control established product-focused facilities iii. High fixed cost but low variable costs because of facility utilization e. Mass Customization Focus: rapid, low cost production that caters to constantly changing unique customer desires i. Providing variety and economically making what the customer wants when the customer wants it
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ii. OMs must make imaginative and aggressive use of organizational resources to build agile processes that rapidly and inexpensively produce custom products iii. Essential Ingredients in mass customization 1. Modular techniques 2. Rapid throughput techniques 3. Effective scheduling techniques iv. Build-to-order : produce to customer orders, not forecasts 1. drives down inventories 2. increases pressure on scheduling and supply-chain performance f. Comparison of Process Choices i. This is lame but see table 7.2 for t his section :D
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Chapter 7 - Chapter 7: Process Strategy I. Introduction a....

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