SCM300 - Module 3

SCM300 - Module 3 - SCM 300 MODULE 03 Study Packet Module...

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Study Packet Module 03: Make It (Manufacturing Strategy, Facilities Location, Mfr Layout, Line Balancing and Capacity) While many people have a reasonable grasp on purchasing and logistics concepts, they tend to overlook issues that fall into the category of manufacturing. Everything we buy is produced, manufactured, and/or assembled in its own unique way and thus each item requires its own manufacturing strategy. Each item must be manufactured or assembled somewhere, and much to the surprise of most people, choosing a facility’s location based only on where low cost labor is available is simply ridiculous. As far as the inner workings of production facilities are concerned, most business students need to have at least a rudimentary grasp of typical layout strategies as well as an understanding of manufacturing constraints. Following completion of this module, students should understand enough about manufacturing/assembly that they can at least ask the appropriate purchasing and logistics questions. Reading Assignments: Text: YOGA Reading Assignment: Pages 268-272 Text: Marble Reading Assignment: Pages 53-61, 66-73 New Product Development – Slides 02-07 Provide examples of strategic, design, and operating decisions. Strategic: long range goals, What type of business are we going to be? Design: plan to achieve a goal, How can we do this? Operating: day to day decisions, What can we do everyday to ensure success? What are the key questions that must be answered when formulating a production strategy? Size Cost Weight Materials Customer desires Technology requirements/availability How do marketing and strategy decisions affect all areas of the supply chain? They impact the: Supplier requirements Materials, costs, location, technology Manufacturing strategy Assembly line, hand made, made-to-stock, made-to-order Facilities location Consider where suppliers/customers might be located, other issues Facilities design Consider volume, manufacturing systems, delivery, packaging, materials Distribution requirements Locations, size, fast distribution, warehousing, technology Service systems Locations, maintenance, repair, phone/web support, material requirements How will organizational decisions related to new product development impact profits, information systems, organizational competitiveness, and the effective utilization of organizational resources? Keeping track of money/data: costs, revenues, order sizes, and efficiency, outputs, inputs and waste Resources: people, machines and facilities How do production strategies affect the competitive priorities (cost, speed, flexibility, and quality)? Always consider the previous factors
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This note was uploaded on 04/10/2008 for the course SCM 300 taught by Professor D during the Fall '07 term at ASU.

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SCM300 - Module 3 - SCM 300 MODULE 03 Study Packet Module...

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