Disadvantages the flexibility and lower capital costs

Info icon This preview shows pages 70–72. Sign up to view the full content.

View Full Document Right Arrow Icon
Disadvantages The flexibility and lower capital costs for job-shop processes are not free; the following are some corresponding disadvantages. 1) General-purpose equipment is usually less efficient at processing materials. 2) More skilled, higher-paid employees are needed to set up and operate general purpose quipment and to modify work methods to make a variety of products. 3) Less efficient but more flexible material-handling methods, such as fork lifts and hand trucks, are required. 4) Work-in-process inventories are needed to keep the work centers operating during equipment setups, as well as to provide the scheduling flexibility needed to coordinate the variety of products and job processing times. 5) The large in-process inventories and flexible material-handling systems require more space than do flow processes. 6) Quality conformance is difficult because workers must be familiar with a wider range of quality requirements, they perform more product changeovers, and they cannot spend as much time refining their wok methods for any one product. 7) The variability in process sequencing, lot sizes, and processing times, as well as possible uncertainty about order receipts and due dates, make scheduling and coordinating jobs and equipment very complex. These factors, along with the large in-process inventories, result in long throughput times. 8) The variety of products and their processing requirements make it difficult to assign costs to each product, so it is more difficult to determine the profitability of individual products.
Image of page 70

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

View Full Document Right Arrow Icon
65 5.3.5 CELLULAR PROCESSES Organizations often capture some of the efficiencies of flow processes and the flexibility of job-shop processes by creating hybrids of the two, called cellular processes. A cellular process can be thought of as a mixture of mini flow processes, called work cells (or cells), and a job-shop operation. The work cells may perform only two or three activities in a spatially connected flow process, or they may perform several activities connected in sequence. Cellular processes are most commonly used as substitutes for job-shop processes that need increased productivity. Increasingly, however, they are being used in place of flow processes to obtain greater flexibility. They are also becoming a popular way to organize service operations. To create a cellular process, an organization divides its products into families or group of products that require similar processing steps in the same sequence. A work call is then created to perform these steps in the designated sequence for all the products in the family. The output of the cell may be a finished product or a semi finished product that must be sent elsewhere for further processing. Some products will not be appropriate for any cell, and many products cannot be made entirely at a single cell, so there will normally be a job-shop subsystem (cell) that can do all the processing steps in any sequence.
Image of page 71
Image of page 72
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern