GMS 401 Lecture Notes - Job Shop, Flexible Manufacturing System, Process Design

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Processes convert inputs into outputs; they are at the core of operations management. But the impact of processes goes beyond operations management: they affect the entire organization and its ability to achieve its mission. Layout of facilities: equipment, design of work systems, process design occurs when, new products are being designed, existing products are being redesigned, make or buy. Many manufacturing firms have the equipment and skilled trades which will allow them to make almost anything. First step in process design is to consider whether to make or buy some or all of a product or a segment of the production process. If a decision is made to buy a part/ product or a segment of the production process, this eliminates the need to produce the part/product or perform that segment of production process. Make-or-buy decisions are often strategic, based on existing or desired core capabilities.

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