ch 7. Flashcards
four process strategies?
- process focus
- repetitive focus
- product focus
- mass customization
continue process characteristics?
- Process industries
- Highly standardized products
- High volume production
- Capital intensive
- Product oriented facility layout
- Special purpose equipment
- Low labor skill
- Low process flexibility
- Made-to-stock
- High finished goods inventory
- Low in-process inventory
- Simple scheduling
repetitive process characteristics?
- Essentially similar to those of continuous processes
- Applies to production of discrete items (in units)
- Assembly line or mass production systems
- Oftentimes involves modules (components)
Examples:
Automobiles, Televisions, Appliances, etc.
job shop process (examples)
Auto repair, Bakery, Machine shops, Painting shops, Machine tools productions, Printing shops, General hospitals, Fine restaurants, etc.
job shop process characteristics (process focus)
Customized products Made-to-order products Low volume production Small to very small batches Process oriented facility layout General purpose equipment High process flexibility High labor skill Low Finished Goods Inventory High In-Process Inventory Complex scheduling
project examples
Constructing a building, bridge, pipeline, etc. Making an airplane or a ship Launching a satellite Developing a new product Making a movie, etc.
project characterisitics
Unique product/service Highly customized Site-dependent Large number of activities Many inputs Very small batch size (usually one) Equipment – many kinds Labor skill – varied Scheduling – time dependent
mass production:
It involves efficient production of a small variety of goods (standardized goods) in large quantity.
Focus on efficiency
craft production
Use of highly skilled and flexible workers to produce highly differentiated and specialized (customized) goods in small quantities.
focus on customization
mass customization ( aka build to order process)
It involves the delivery of a wide variety of customized goods quickly and efficiently at low cost.
Focus: both customization (flexibility) and efficiency
characteristics of mass customization?
- a trade-off between craft and mass production systems
- retains the advantages of both the systems
- requires a lean (JIT) and flexible process
- uses computer-aided design and manufacturing
- reduces level of needed finished goods inventory
- uses ‘postponement’ or ‘delayed differentiation’ concept
- not suitable for all products (e.g., commodity products)
- an effort to economically combine process- and product-focus strategies (i.e., combination of cost efficiency and production flexibility)
Collaborative Customization
Communicate with customers to determine their needs and customize the product or service accordingly
Examples:
Dell computer (text book)
Eyeglasses, bicycles, etc.
Paint retailers (Lowe’s, Home Depot, etc.)
adaptive customization
Products or services sold to different customers are the same; but customers can customize them according to their needs
Example: Sleep number bed
cosmetic customization
Any form of customization through appearance, packaging, marketing, advertising, etc., although the product or service is the same;
Example: Coca-cola sold in different containers
transparent customization
Manufacturers or service providers observe customers’ needs without any direct communication with them, but provide the products or service with specific features they want. Example: Ritz-Carlton hotels keep records of customer preferences and customize rooms accordingly before the customer arrives.
