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Ops Management (chapter 7)

Terms in this set (26)

Process Selection
Deciding on the way production of goods or services will be organized.
Process Strategy
An organization's overall approach for physically producing goods and services
Key aspects to process strategy
Capital Intensity
Process Flexibility
Capital Intensity
the mix of equipment and labor that will be used by the organization
Process Flexibility
Ease with which resources can be adjusted in reponse to changes in demand, technology, products, or services, and resource availability
Process Types
Job shop
batch
repetitive
continuous
project
Key questions in process selection
1) how much variety of products or services will the process need to handle?
2) What is the expected volume of output?
3)What level of skilled employees and equipment flexibility will be needed?
Job Shop Processing
Able to produce customized goods or services and is able to handle variety of work. Intermittent basis. Requires high skilled employees.
Advantages of Job Shop
handle a wide variety of work on relatively short notice
Disadvantages of Job Shop
Slow process, High cost per unit, complex capacity planning and production scheduling.
Batch Processing
Business requires the ability to create a moderate variety of products or services. Skilled employees.
Advantages to batch processing
flexibility and ability to add or change products or services in reasonable amount of time.
Disadvantages to batch processing
relatively high cost per unit, and moderately complex capacity planning and production scheduling.
Repetitive Processing
Used when a business requires the ability to create a standardized product or service. Lower skilled employees.
Continuous Processing
Used when a business requires the ability to create a highly standardized product or service.
Product Layout
A layout requiring that production be broken down into relatively simple tasks assigned to workers, who are usually positioned along an assembly line
Advantages to Product Layout
Labor specialization, high utilization of labor and equipment, and low material handling cost per unit.
Disadvantages to Product Layout
Creates dull jobs, fairly inflexible, and highly susceptible to shutdowns.
Process Layout
A layout that organizes the transformation process into departments that group related processes.
Advantages to Process Layout
can handle a variety of processing requirements, and not vulnerable to equipment failures.
Disadvantages to Process Layout
in-process inventories can be high, equipment utilization rates are low, and high material handling cost per unit.
Fixed Position Layout
layout in which the product or project remains stationary, and workers, materials, and equipment are moved as needed
Combination Layout
Use elements of product, process and fixed position layouts to meet needs of a production process.
Automation
involves the use of machinery that has sensing and control capabilities that enable it to operate automatically.
Cellular Production
Workstations laid out into cells to process items with similar processing requirements.
Computer integrated Manufacturing
involves using computer systems to link a broad range of manufacturing related activities.
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