COMMERCE 4OB3 Chapter : 3QC3-CH6.docx

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Process: a group of related tasks with specific inputs and outputs. Process strategy: an organization"s overall approach for physically producing goods and services. Vertical integration: the degree to which the firm will produce the inputs and control the outputs of each stage of the production process. Capital intensity: the mix of capital (ie, equipment, automation) and labour resources used in the production process. Process flexibility: the ease with which resources can be adjusted in response to changes in demand, technology, products or services, and resource availability. Customer involvement: the role of the customer in the production process. Converts design into workable instructions for manufacture or delivery. Decision involves evaluation on the following factors: Projects: one-at-a-time production of a product to customer order. Batch production: processing many different jobs at the same time in groups (or batches) Mass production: producing large volumes of a standard product for a mass market. Breakeven analysis: examines the cost trade-offs associated with demand volume.

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