ECON 1 Lecture Notes - Lecture 6: Intellectual Capital, Job Shop, Decision Rule
Document Summary
Ch 3: process choices and layout decisions in manufacturing and services. Managers, must carefully consider the strengths and weaknesses of different processes and make sure that the process they choose best supports their overall business strategy and, in particular, the needs of their targeted customers. General principals when selecting and implementing a manufacturing process: Selecting an effective manufacturing process means much more than just choosing the right equipment. Manufacturing processes also include people, facilities and physical layouts, and information systems. These pieces must work together for the manufacturing process to be effective. Different manufacturing processes have different strengths and weaknesses. Some are best suited to making small numbers of customized products, while others excel at making large numbers of standard items. Companies must make sure that their manufacturing processes support the overall business strategy. The manufacture of a particular item might require many different types of manufacturing processes, spread over multiple sites and organizations in the supply chain.
