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Chapter 4

GMS 401 Chapter Notes - Chapter 4: Process Flow Diagram, Flexible Manufacturing System, Process Design

Global Management Studies
Course Code
GMS 401
Robert Meiklejohn

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GMS – Chapter 4 – Process Design and Facility Layout
Process design – determining the form and function of how G or S are produced (sequence of
Make or buy – decide whether to make a part of product in-house or to buy it or a segment of
production process from another company
Decisions based on existing or desired core capabilities
Other factors include available capacity, quality, whether demand is steady or
temporary, the secrecy of technology and cost
Job shop – a process type used when a low quantity of high-variety customized G or S is needed
High flexibility of equipment and skilled workers are important characteristics
Managerial challenge is to schedule the jobs so that the due dates are met and the
resources are utilized as much as possible
Batch process – a type of process used when a moderate quantity and variety of G and S is
desired (small bakeries)
Managerial challenge is scheduling batches in order to meet planned production and
demand while utilizing the resources at a high level
Repetitive process – a type of process used when higher quantities or more standardized G or S
are needed
Production line – a sequence of machines/work stations that perform operations on a
Assembly line – a production line where parts are added to a product sequentially
The managerial challenges are capacity balance, technology management, quality and
materials management
Continuous process – used when a high volume of highly standardized output is required
The managerial challenges are the same as repetitive process but because of faster
speed of production greater care is required for automated control of the flow and start
and stop of production are more challenging
Process technology includes methods, procedures and equipment used to produce G and S
Information technology is the science and use of computers and other electronic equipment to
store, process and send information
Automation – using machinery/equipment with sensing and control devices that enable it to
operate automatically
Advantages: low variability, reduce costs, increase productivity and improve quality and
Disadvantages: high initial cost, much less flexible
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