Ch06_6e - Chapter 6 Processes and Technology Lecture...

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Unformatted text preview: Chapter 6 Processes and Technology Lecture Outline Lecture Outline • Process Strategy • Process Planning • Process Analysis • Process Innovation • Technology Decisions Process Strategy Overall approach to producing Overall approach to producing goods and services goods and services Defines: Defines: Capital intensity Process flexibility Vertical integration Customer involvement Outsourcing Decision • Cost – production, logistics, inventory, rework, currency • Capacity – immediate & longterm • Quality – capabilities, consistency, responsiveness • Speed – manufacture, delivery, change • Reliability – quantity, quality, timing, stability • Expertise – intellectual property; knockoffs, potential competitor Sourcing Continuum Arms-Length Relationship (short-term contract or single purchasing decision) Vertical Integration (100% ownership) Joint Venture (equity partner) Strategic Alliance (long-term supplier contract; collaborative relationship) Types of Production Processes Mass Production Continuous Production Batch Production Project Processes & Technology Project Project One-time production of product to customer One-time production of product to customer order order Batch production Batch production Process many jobs at same time in batch Process many jobs at same time in batch Mass production Mass production Produce large volumes of standard product Produce large volumes of standard product for mass market for mass market Continuous production Continuous production Very high volume commodity product Very high volume commodity product Products & Services Products & Services Make-to-order Make-to-order Made to customer specifications Made to customer specifications after order received after order received Make-to-stock Make-to-stock Made in anticipation of demand Made in anticipation of demand Assemble-to-order Assemble-to-order Add options according to customer Add options according to customer specification specification Product-Process Matrix Product-Process Matrix Volume Volume Low Low Low Low High High High High Projects Batch Production Mass Production Continuous Production Standardization Standardization The basic types of production systems differ by • Type and variety of products • Type of customer • Volume and variability of demand • Type of work, degree of automation, type of equipment, flow of work • Worker skills • Advantages and disadvantages Can you describe each system by the above characteristics? 6-11...
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Ch06_6e - Chapter 6 Processes and Technology Lecture...

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