07 Process Selection & Capacity Planning

07 Process Selection & Capacity Planning - Lesson...

Info iconThis preview shows pages 1–11. Sign up to view the full content.

View Full Document Right Arrow Icon
07 - 1 Process selection refers to the way an organization chooses to produce its goods or services Lesson 07 Process Selection & Capacity Planning
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
07 - 2 a series of actions or operations that transforms inputs into outputs Feedback Operation A Outputs Inputs Operation B Process
Background image of page 2
07 - 3 Process Selection Forecast Product and/or Service Design Technology Capacity Planning Facilities/Equipm ent Work Design Components of Process Selection
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
07 - 4 . Make vs Buy - utilize internal capacity, subcontract, purchase sub-components based on .. cost .. available capacity .. expertise .. quality considerations .. nature of the demand (e.g. high or low, short or long range) .. speed .. reliability . Capital Intensity - the mix of equipment and labor . Process flexibility Factors In Process Selection Decisions
Background image of page 4
07 - 5 Continuous - a system that produces highly uniform products (e.g. chemicals, paper, photographic film, steel) Repetitive - a semi-continuous system which produces output that may be similar but not identical (e.g. electronics, automobiles, computers) Intermittent - usually lower volume output with greater variety in both product and processing .. batch processing - produces moderate volumes of similar items (e.g. ice cream manufacturing - strawberry then vanilla) .. job shop - produces a unit or small volumes of units to meet customer specifications (e.g. machine shop) Types of Processes
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
07 - 6 Product Process Matrix Product Process Product Variety & Equipment Flexibility Matrix High Moderate Low Very Low Low Volume Job Shop Moderate Volume Batch High Volume Repetetive Assembly Very High Continuous Flow Commercial Printer Heavy Equipment Automobile Assembly Sugar Refinery
Background image of page 6
07 - 7 Automation refers to machinery that has the ability to sense and control devices that enable it to operate automatically ( e.g. CAM, numerically controlled (N/C) machines , robots, Computer Integrated Manufacturing (CIM) ) Automation
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
07 - 8 Capacity is the upper limit or ceiling on the load that an operating unit can handle. There are many questions that must be answered and the the detail required to answer each will depend on whether the demand is short, intermediate or long range. . What kind of capacity is needed? - depends on the products/services that management intends to produce or provide . How much is needed? . When is it needed? – depends on the stage of completion of a product/service Capacity Planning 6 Month Forecast 1 2 3 4 5 6 10 8 12 14 10 8 10 10 10 12 12 10 10 12 10 8 10 12 Forecast Demand Production Plan Inventory
Background image of page 8
07 - 9 Capacity decisions . have a real impact on the ability of an organization to meet future demands for products/services . affect operating costs - too much can sometimes be as bad as too little . are usually a major determinant of initial cost . involve long tem commitment of both financial and human resources - once implemented, it may be very costly to modify capacity decisions without major costs . can affect competitiveness - the ability to quickly add or utilize unproductive capacity may Capacity Decisions
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
07 - 10 Capacity Concepts Design Capacity - refers to the maximum output that can possibly
Background image of page 10
Image of page 11
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 51

07 Process Selection & Capacity Planning - Lesson...

This preview shows document pages 1 - 11. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online