The main goals of this chapter are to: Understand what a production process is, understand the idea of production process mapping, define Little's law, demonstrate how production processes are organized, describe the product-process matrix, provide an overview of how the different types of production processes are designed, understand how to design and analyze an assembly line. | Manufacturing and Service Processes Chapter 06 McGraw Hill Irwin Copyright 2013 by The McGraw Hill Companies Inc. All rights reserved. Learning Objectives 1. Understand what a production process is. 2. Understand the idea of production process mapping. 3. Define Little s law. 4. Demonstrate how production processes are organized. 5. Describe the product-process matrix. 6. Provide an overview of how the different types of production processes are designed. 7. Understand how to design and analyze an assembly line. 6 2 Types of Firms 6 3 Make-to-Stock Examples of products Televisions Clothing Packaged food products Essential issue in satisfying customers is to balance the level of inventory against the level of customer service Easy with unlimited inventory but inventory costs money Trade-off between the costs of inventory and level of customer service must be made Use lean manufacturing to achieve higher service levels for a given inventory investment 6 4 Assemble-to-Order A primary task is to define a customer s order in terms of alternative components since these are carried in inventory An example is the way Dell Computer makes their desktop computers One capability required is a design that enables as much flexibility as possible in combining components There are significant advantages from moving the customer order decoupling point from finished goods to components 6 5 Make-to-Order Engineer-to- Order Boeing s process for making commercial aircraft is an example Customer order decoupling point could be in either raw materials at the manufacturing site or the supplier inventory Depending on how similar the products are it might not even be possible to pre-order parts 6 6 Production Process Mapping Develop a high-level map of a supply chain process Useful to understand how material flows and where inventory is held First step in analyzing the flow of material through a production process 6 7 Inventory Measures Total average value of inventory - the sum of the .
