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Lecture 5

GMS 401 Lecture Notes - Lecture 5: Process Flow Diagram, Fuel Tank, Customer Service


Department
Global Management Studies
Course Code
GMS 401
Professor
Wally Whistance- Smith
Lecture
5

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Isaiah Ferris Winter 2017
GMS401 Class 5 Main Points (Long Version)
Process selection
o Deciding on the way production of goods or services will be organized
Major implications
o Capacity planning
o Layout of facilities
o Equipment
o Design of work systems
Process Selection and System Design
o
Process Flow Diagram
o
Process Strategies
o Process or Transformation Strategy- A ogaizatio’s appoah to tasfoig esoues
into goods and services.
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Isaiah Ferris Winter 2017
o 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.
o How to produce a product or provide a service that
Meets or exceeds customer requirements
Meets cost and managerial goals
o Has long-term effects on
Efficiency and production flexibility
Costs and quality
o Four basic strategies
Process focus
Repetitive focus
Product focus
Mass customization
o Within these basic strategies there are many ways they may be implemented
Process Focus
o Facilities are organized around specific activities or processes
o General purpose equipment and skilled personnel
o High degree of product flexibility
o Typically high costs and low equipment utilization
o Product flows may vary considerably making planning and scheduling a challenge
Repetitive Focus
o Facilities often organized as assembly lines
o Characterized by modules with parts and assemblies made previously
o Modules may be combined for many output options
o Less flexibility than process-focused facilities but more efficient
Product Focus
o Facilities are organized by product
o High volume but low variety of products
o Long, continuous production runs enable efficient processes
o Typically high fixed cost but low variable cost
o Generally less skilled labour
Mass Customization
o The rapid, low-cost production of goods and service to satisfy increasingly unique customer
desires
o Combines the flexibility of a process focus with the efficiency of a product focus
o Imaginative and fast product design
o Rapid process design
o Tightly controlled inventory management
o Tight schedules
o Responsive supply chain partners
Comparison of Processes
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Isaiah Ferris Winter 2017
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