CH_06_10th_Edition

CH_06_10th_Edition - Process Selection and Facility Layout...

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Process Selection and Facility Layout CHAPTER 6 PROCESS SELECTION AND FACILITY LAYOUT KEY IDEAS 1. Process Selection. Process selection involves making choices concerning the way an organization will produce its products or provide services to its customers. It has major implications for capacity planning, layout and work methods. 2. Process Types. Managers can select from five different types of processes: job shop, batch, repetitive, continuous and projects. Job shops are used to produce a low volume of each of a large variety of products or services. Equipment flexibility must be high to handle the high variety of jobs. Batch processing involves less variety, less need for equipment flexibility, and higher volumes of each type of product. Repetitive processing has even less variety, less need for equipment flexibility, and higher volume. Continuous processing has the lowest variety, the lowest need for equipment flexibility, and the highest volume. Job shops and batch processing are classified as intermittent systems, meaning that output frequently switches from one product or service to another. Repetitive and continuous systems are classified as continuous processing because there is little or no switching from one product to another. Projects are used for non-routine work that is intended to meet a given set of objectives in a limited time frame. Job variety is high, volume is usually low, and equipment flexibility needs can range from low to high. 3. Product Profiling. Process selection can involve substantial investment in equipment. Mismatches between operations capabilities and market demand and pricing or cost strategies can have a negative impact on the ability of the organization to operate effectively. Hence, it is highly desirable to assess process choices relative to market conditions prior to making process choices in order to achieve an appropriate matching. Product profiling can be used to avoid any inconsistencies by identifying key product or service dimensions and then selecting appropriate
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CH_06_10th_Edition - Process Selection and Facility Layout...

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