B A 360 Chapter Notes - Chapter 7: Mass Customization, Process Design, Product Design
Document Summary
Process strategy - organization"s approach to transforming resources into goods and services. Objective is to create a process that can produce offerings that meet customer requirements within cost and other managerial constraints. Process will have a long-term effect on efficiency and flexibility of production, as well as on cost and quality of the goods produced. Process focus - production facility organized around process to facilitate low-volume, high-variety production. Provides a high degree of product flexibility as products move between the specialized processes. Have high variable costs with extremely low utilization of facilities. Job shops - vast majority of global product is devoted to making low-volume, high-variety products in places. Modules - parts or components previously prepared, often in a product-focused process. Has more structure and consequently less flexibility than a process-focused facility. Product focus - facility organized around products, a product-oriented, high-volume, low-variety process. Also called continuous processes because they have very long, continuous production runs.
