GMS 401 Lecture : Chapter 6.docx

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 401
• Professor: Kirk Bailey

Document Summary

Processes convert inputs into outputs; they are at the core of operations management. They affect the entire organization and its ability to achieve its mission. Process design: determining the form and function of how goods or services are produced. It has major implications for layout of facilities, equipment, and design of work systems; it matters when new products are being designed or existing products are redesigned; also occurs due to technological changes in equipment and methods improvement. The first step in process design; make or buy: decide whether to make a part or product in house, or to buy it or a segment of production process, from another company. Make or buy decisions are often strategic, based on existing or desired core capabilities. Can classify processes into four basic types: job shop, batch, repetitive, and continuous. Job shop: a process type used when a low quantity of high-variety customized goods or service is needed.