PRODUCT / PROCESS DESIGN AND FACILITY LAYOUT Flashcards
what should the firms do as they grow?
- Focus on existing products or expand its market
- Add new products (complementary)
- Adding new similar products
- Deepen the product mix and expand the product line (Achieving operational synergy), after adding completely different products (Targets marketing synergy)
what is the role of technology in product evolution?
It often plays an important role in the processing techniques used to manufacture the objects.
1. Direct impact on the feasibility of making and marketing new products
2. Possibility to reduce cost, accelerate production, increase volume.
what is the product life cycle?
- introduction phase: first put on the market -> low sales (More of an investment)
- Growth phase: The product becomes more widely known and appreciated, and sales rise.
- Maturity phase: The product is firmly established and sales have reached a peak
- Decline phase: Self-explanatory. Production costs are at their lowest but price are also declining
what is standardization?
This is a strategy seeking uniformity in production and in the parts compromising them.
It is much cheaper and simpler to produce standard goods and services that it can sell to several different customers at a much lower price
Using economies of scale: Larger quantities, lower costs
Use parts and components that are already used in existing products -> reduce the amount of raw material
What is simplification?
Minimizing the number of parts comprising a product
Simple products that are easy to make
Directly impacts the number of manufacturing steps
what is a modular design?
Creating unique finished product lines based on a limited number of standard subassemblies that can be combined in a different configuration.
Important to ensure that new models are compatible with those already used.
what is product flow?
Manner in which products pass form one stage to another in the manufacturing process
What are the types of product flow?
- Intermittent flow: The movement of in-process products from one operation to another is discontinuous. Meaning it is interrupted between each activity.
- Semi-Continuous flow: The goods being transformed move, in a regular, unidirectional manner through a sequence of operations
- Continuous flow: the product moves in a constant, unidirectional manner through a sequence of operations, with little to no stoppage.
What is the process type?
Low volume
High Variety
Intermittent flow
Made-to-order
The job shop
What is the process type?
Low volume
High Variety
Intermittent flow
Made-to-stock
Batch
What is the process type?
High volume
Low Variety
Semi-continuous flow
Made-to-stock
Mass production
What is the process type?
High volume
Low Variety
Continuous flow
Made-to-stock
Continous
what is mass customization?
Mass production process allowing some degree of customization. Different types of combinations.
what is a facility layout?
The spatial arrangement of an organization’s physical resources.
What is this type of facility layout?
Equipment is set up sequentially, in order in which the products move through the different operations.
Flow more or less continuously.
Always moving in the same direction.
“L” “U” “S”
Linear layout
