GMS 401 Lecture Notes - Lecture 5: Fast Product, Focus 3, Mass Customization
Document Summary
Deciding on the way production of goods or services will be organized: major implications: A(cid:374) orga(cid:374)izatio(cid:374)"s approach to tra(cid:374)sfor(cid:373)i(cid:374)g resources into goods and services. The objective of a process strategy is to build a production process that meets customer requirements and product specifications within cost and other managerial constraints: how to produce a product or provide a service that: Meets cost and managerial goals: has long-term effects on: 4 basic strategies: process focus, repetitive focus, product focus, mass customization, within these basic strategies there are many ways they may be implemented. Repetitive focus: 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-focused facilities but more efficient. Gms401: facilities are organized by product, high volume but low variety of products, long, continuous production runs enable efficient processes, typically, high fixed cost but low variable cost, generally, less skilled labour.