Ch 7: Manufacturing Processes Flashcards
3-step production process
1) source the parts
2) make the product
3) deliver
make-to-stock
to manufacture a product and immediately put it in stock
saving on the front-end b/c buying source in bulk but possibility of operating at a loss if make too much
assemble-to-order**
defining an order in terms of the components needed as they are carried in inventory
make/engineer-to-order
building something for customer from the ground-up; customer- and manufacturer-involved
lead time
time needed to respond to a customer order; aka duration from when co. receives order to when customer receives product
customer order decoupling point
the point in the supply chain where the product is linked to a customer order
lean manufacturing
achieving high customer service w/ minimal inventory investment
project layout
product remains in a fixed location and manufacturing equipment moved to the product
work-center/job shop/process layout
similar functions grouped together
manufacturing cell
dedicated area where products alike in processing grouped together to complete a product
assembly line/product layout
continuous process
mass production
2 things we should consider in MANUFACTURING
- volume (how much)
- variation/variety (how distinct are the products)
break-even point =
(purchase cost of equip)/(price per unit - cost per unit)
or
(total fixed cost)/(unit price for customer - VC/unit)
flow charts
show process where something moves throughout plant and how much time it takes to complete
