BIT 3414 Lecture Notes - Lecture 2: Batch Production, Iso 9000, Machine Shop
7 Feb 2018
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Document Summary
Process planning determines how a product will be produced or a service provided. Vertical integration extent to which firm will produce inputs and control outputs of each stage of the transformation process. Process flexibility mix of capital (i. e. , equipment, automation) and labor resources used in production process. Inverse relationship: cost of equipment vs. cost of direct labor ease with which resources can be adjusted in response to changes in demand, technology, products or services, and resource availability. Inverse relationship: flexibility of the process vs the efficiency of the process. Customer involvement role of customer in production process. Outsourcing: permits companies to focus on their own core competencies (core competencies tend to be development processes, not products/technologies) Cost is it cheaper to make or buy the item. Capacity spike in demand, would need to outsource does the company have the capacity. Quality can the suppliers provide the quality we want easier to control quality in your own factory.
