Chapter 4

Question 1

Objective of Process Strategy:

Answer 1

To build a production process that meets customer requirements and product specifications within cost and other managerial constraints.

Question 2

Process Strategy:

Answer 2

How to produce a product or provide a service that:
- Meets or exceeds customer requirements.
- Meets costs and managerial costs.
Has long- term effects on:
- Efficiency and production flexibility.
- Cost and quality.

Question 3

4 Basic Process Strategies:

Answer 3

• Process Focus.
• Repetitive Focus.
• Product Focus.
• Mass Customization.

Question 4

Process Focus:

Answer 4

• Facilities are organized around specific activities or processes.
• General purpose equipment and skilled personnel.
• High degree of product flexibility.
• Typically high costs and low equipment utilization.
• Product flows may vary considerably making planning and scheduling a challenge.
  > MANY INPUTS –> PROCESS FOCUS –> HIGH VARIETY OF OUTPUTS.

Question 5

Repetitive Focus:

Answer 5

• Facilities often organized as assembly lines.
• Characterized by modules with parts and assemblies made previously.
• Modules may be combined for many output options.
• Less flexibility than process- focus facilities but more efficient.
  > RAW MATERIALS & MODULE INPUTS –> FEW MODULE PROCESS –> MODULES COMBINED FOR + OUTPUT OPTIONS.

Question 6

Product Focus:

Answer 6

• Facilities are organized by product.
• High volume but low variety of products.
• Long, continuous production runs enable efficient process.
• Typically high fixed costs but low variable cost.
• Generally less skilled labor.
  > FEW INPUTS –> PRODUCT FOCUS –> OUTPUT VARIATION IN SIZE, SHAPE AND PACKAGING.

Question 7

Mass Customization:

Answer 7

• Rapid, low cost production of goods/ service to satisfy increasing customer desire.
• Combines the flexibility of the process focus with the efficiency of a product focus.
• High volume and high variety.
  > MANY PARTS & COMPONENTS INPUTS –> MANY MODULES –? MANY OUTPUTS VERSIONS.

Question 8

Characteristics of mass customization:

Answer 8

• Imaginative and fast product design.
• Rapid process design.
• Tightly controlled inventory management.
• Tight schedule.
• Responsive supply chain partners.