Lecture Introduction to operations management - Chapter 4: Process selection

In this chapter we will discuss: Product-flow characteristics, approaches to order fulfillment, product-process strategy, focused operations, mass customization, environmental concerns, cross-functional decision making. | Chapter 4, Process Selection INTRODUCTION to Operations Management 5e, Schroeder Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Chapter Outline Product-Flow Characteristics Approaches to Order Fulfillment Product-Process Strategy Focused Operations Mass Customization Environmental Concerns Cross-Functional Decision Making Product-Flow Characteristics Types of Product Flow Continuous process Assembly line Batch Job shop Project Product-Flow Characteristics Continuous Process Process industries (beer, paper, oil, etc.) Highly standardized and automated High volumes of production Commodity products Low cost is the ‘order winner’ Flexibility limited Product-Flow Characteristics Assembly Line Flow Linear sequence of operations Discrete products (autos, appliances, etc.) High-volume, standardized products Inflexibility in product and volume Very efficient Large capital investment Assembly Line Flow (metal bracket, see Fig. ) paint drill bend Task or work station Product flow cut Product-Flow Characteristics Batch Flow Production of batches or lots Batches flow from one work center to another Low volume products Many different types of products Flow is jumbled and intermittent Flexible labor and equipment Batch Flow (three metal brackets, see Fig. ) Cut Paint Task or work station Product flows Bend Drill Batch A Batch B Batch C Product-Flow Characteristics Job Shop Production of small batches or lots Orders are customized for particular customer orders Low volume products Many different types of products Flow is jumbled and intermittent Flexible labor and equipment Product-Flow Characteristics Project Production of customized single products Labor and materials brought to site Planning, scheduling challenges Unique (one of a kind) products Little automation Flexible labor and equipment Approaches to Order Fulfillment Make-to-Stock (MTS) Make-to-Order (MTO) Assemble-to-Order (ATO) Make-to-Stock (MTS) Produce finished . | Chapter 4, Process Selection INTRODUCTION to Operations Management 5e, Schroeder Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Chapter Outline Product-Flow Characteristics Approaches to Order Fulfillment Product-Process Strategy Focused Operations Mass Customization Environmental Concerns Cross-Functional Decision Making Product-Flow Characteristics Types of Product Flow Continuous process Assembly line Batch Job shop Project Product-Flow Characteristics Continuous Process Process industries (beer, paper, oil, etc.) Highly standardized and automated High volumes of production Commodity products Low cost is the ‘order winner’ Flexibility limited Product-Flow Characteristics Assembly Line Flow Linear sequence of operations Discrete products (autos, appliances, etc.) High-volume, standardized products Inflexibility in product and volume Very efficient Large capital investment Assembly Line Flow (metal bracket, see Fig. ) paint drill bend .

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