chapter7

chapter7 - Operations Operations Management Management...

Info iconThis preview shows pages 1–13. Sign up to view the full content.

View Full Document Right Arrow Icon
7-1 Operations Operations Management Management Process Strategy and Process Strategy and Capacity Planning Capacity Planning Chapter 7 Chapter 7
Background image of page 1

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

View Full Document Right Arrow Icon
7-2 Outline Outline Four Process Strategies. Process Focus. Repetitive Focus. Product Focus. Mass Customization Focus. Service Process Design. Process Reengineering. Capacity. Break-Even Analysis. Net Present Value.
Background image of page 2
7-3 Process Strategy Process Strategy How to produce a product or provide a service. Objective: Meet or exceed customer requirements. Achieve competitive advantage. Has long-run effects: Product & volume flexibility. Costs & quality .
Background image of page 3

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

View Full Document Right Arrow Icon
7-4 Four Process Strategies Four Process Strategies Four process strategies: 1. Process focused. 2. Product focused. 3. Repetitive focused. 4. Mass customization. Several strategies may be used within one facility. Process strategies follow a continuum.
Background image of page 4
7-5 Fit of Process, Volume, and Variety Fit of Process, Volume, and Variety PROCESS FOCUS (job shops, printing) REPETITIVE FOCUS (autos, motorcycles) PRODUCT FOCUS (steel, chemicals) High Variety Small production runs (allows customization) Low Variety Long production runs (standardization) MASS CUSTOMIZATION (Dell Computer) POOR STRATEGY Low Volume High Volume
Background image of page 5

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

View Full Document Right Arrow Icon
7-6 1. Process Focus 1. Process Focus Facilities organized by process. Similar processes or equipment grouped together. ( Example: All drill presses are together.) Low volume, high variety products. 75% of all global products. Products follow many different paths. Other names: Intermittent process. Job shop. 1 3 4 2
Background image of page 6
7-7 Process Focus Examples Process Focus Examples Bank Machine Shop Hospital
Background image of page 7

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

View Full Document Right Arrow Icon
7-8 Process Focus - Pros & Cons Process Focus - Pros & Cons Advantages: Greater product flexibility. More general purpose equipment. Lower initial capital investment. Disadvantages: High variable cost per unit. More highly trained personnel. More difficult production planning & control. Low equipment utilization (5% to 25%).
Background image of page 8
7-9 2. Product Focus 2. Product Focus Facilities organized by product. High volume, low variety products. Long, continuous production runs. Discrete unit manufacturing. Continuous process manufacturing. Other names: Line flow production. Continuous production. 1 2 3 4
Background image of page 9

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

View Full Document Right Arrow Icon
7-10 Product Focus Examples Product Focus Examples Light Bulbs (Discrete) Paper (Continuous) . Soft Drinks (Continuous, then Discrete)
Background image of page 10
7-11 Product Focus: Steel Plant Product Focus: Steel Plant
Background image of page 11

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

View Full Document Right Arrow Icon
7-12 Product Focus - Pros & Cons Product Focus - Pros & Cons Advantages: Lower variable cost per unit. Lower but more specialized labor skills. Easier production planning and control. Higher equipment utilization (70% to 90%).
Background image of page 12
Image of page 13
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 55

chapter7 - Operations Operations Management Management...

This preview shows document pages 1 - 13. Sign up to view the full document.

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