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Chapter 6 MGT - Chapter 6 Learning Objectives 1 Explain the...

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Chapter 6 Learning Objectives 1. Explain the strategic importance of process selection (p241) a. The idea is to have process capabilities match product or service requirements. Failure to do so can result in inefficiencies and higher costs than is necessary, perhaps creating a competitive disadvantage. 2. Explain the influence that process selection has on an organization (p242-243) a. It influences a great many activities of the organization. Table 6.2 describes some of those influences 3. Describe the basic processing types (p239) (look at slides for list) a. Job Shop: usually operates on relatively small scale. It is used when a low volume of high-variety goods or services will be needed. Processing is intermittent; work includes small jobs, each with somewhat different processing requirements. High flexibility using general-purpose equipment and skilled workers are important characteristics of a job shop. A manufacturing example of a job shop is a tool and die shop that is able to produce one of a kind tools. A service example is a veterinarian’s office, which is able to process a variety of animals and a variety of injuries and diseases. b. Batch: Used when a moderate volume of goods or services is desired, and it can handle a moderate variety in products or services. The equipment need not be flexible as in a job shop, but processing is still intermittent. The skill level of workers doesn’t need to be high because there is less variety in the jobs being processed. Examples include bakeries, movie theaters, and
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airlines. c. Repetitive: Used when higher volumes of more standardized goods or services are needed. The standardized output means only slight flexibility of equipment is needed. Skill of workers is generally low. Examples include production/assembly lines. This is sometimes even referred to as just assembly. Examples are automobiles, television sets, pencils, and computers. d. Continuous: Used when a very high volume of non-discrete, highly standardized output is desired. These systems have almost no variety in output, and hence, no flexibility is needed. Workers’ skill requirements can range from low to high, depending on the complexity of the system and the expertise workers need. Generally, if equipment is highly specialized, worker skills can be lowers. Examples include petroleum products, steel, sugar, flour, and salt.
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