Ch.3 Process Choice & Layout Decisions Flashcards
2 Reasons why Manufacturing/Srv Processes are important
- They are Expensive & Far Reaching
- Diff. Process Decisions have different +/-
manager choose to support business strategy & targeted Cx needs
3 General Principals to select/implement manufacturing process
- Equip/ Ppl/ Facility/ Phycical Layout/ Info Sys
- Diff. Mfg. Processes
have diff. +/- in making
large/small volumes of items - Might require Diff. Types of Mfg. Processes/ Sites/ Org. in SC
Highly Automated Batch Processes that ↓Cost of making groups of products
Flexible Manufacturing Systems
FMSs
4 Questions to ask when selecting manufacturing process
- Physical Req. of the Product?
- How Similar to one another the products made?
- Production Volumes?
- Where is Customization in Value Chain?
A Paced Manufacturing Process for producing a narrow range of Standard Items
Production Line
A Type of Layout where resources are arranged sequentially, according to paced steps to make a product
Product-Based Layout
best for high-volume standardized production
A Type of Layout where resources are grouped by function
Functional Layout
- Time btw Completions of Successive Units
- Total elapsed time to complete a business process
Cycle Time
a.k.a.
Throughput Time
Characteristics of Production Lines
- Follow Product-Based Layout
- Predetermined Pace to move thru Production Line
- Suit for High-Volume Production of similar attributes products
e.g. auto assembly line
2 Drawbacks of Production Lines
- High Volumes are required to justify investment in equipment & labour
- Inflexible for product characteristics
5 Classic Manufacturing Processes
- Production Lines
- Continuous Flow Processes
- Job Shops
- Batch Manufacturing
- Fixed-Position Layout
JCBPF
A Type of Mfg. Process that
- produces Highly Standardized products
- Tightly linked/paced steps
- Form of product can’t break into discrete units
Continuous Flow Processes
closely resemble Product Lines
*e.g. yarns/ fabrics/ food/ chemical/ oil & gas
A Type of Mfg. Process that
- Makes Wide Variety of Highly Customized Products in Little Qty
- Uses General-Purpose Equipment & Skilled Workers
- Follows Functional Layout
- Meeting Cx’s Unique Req.
Job Shops
e.g. custom furniture/ specialized machine tools/ restoration/ refurbishing
A Type of Manufacturing Process that
- Fits btw Job Shops & Lines in Production Volumes & Flexibility
- Most common process
- Steps not tightly linked as lines
Batch Manufacturing
e.g. Flexible Manufacturing Systems FMSs highly automated, ↓ cost to make groups of products
A Type of Manufacturing Process that
- Fixed Position of the Product
- Material/ Equip/ Worker transported to/from the product
- Product is Bulky/ Massive/ No Movement
Fixed-Position Layout
e.g. ship/ construction/ bldg
A Type of Manufacturing Process that combines > 1 process
Hybrid Manufacturing Process
e.g. machining center/ group tech/ fmss
Rank Production Volume of
Job Shop / Batch / Production Line
Production Line >
Batch > Job Shop
A Manufacturing which requires Customer-Specific Input
Customization
From Start to End,
list 4 Levels of Customization
-
Make-to-Stock/MTS
requires no customization -
Assemble-to-Order/ATO
at very end of process -
Make-to-Order/MTO
standard components which have Cx-specified configuration -
Engineer-to-Order/ETO
from start for unusual req.
Random Variability ↑
⇒ Process Productivity ↓
is the Law of __
Law of Variability
is relevant to customization as upstream activity is NOT affected by Cx order
3 Dims of Services can differ & position operations
-
Nature of Srv Package
Airline vs Law firm -
Deg of Customization
Oil change vs Repair -
Level of Cx Contact
Mail sorting vs Therapist
Service provided to Cx including Value-Added Physical/ Intangible Activities
Service Package
↑ Mngt Attention
to Capital Expenditures/ Material $/ Tangible Assets
when ↑ Emphasis on
Physical Activities
e.g. airline
↑ Critical are
Skilled Employees & firm’s Knowledge Assets
when ↑ Emphasis on
Intangible Activities
e.g. law firm