om 6

Job Shop Production

- A job shop is the producer of unique products. This requires workers interpret the customer's design and specifications, which requires a relatively high level of skill and experience. Once the design is specified, one or a small number of skilled employees are assigned to the task and are frequently responsible for deciding how best to carry it out. - Products can be a one-time requirement or characterized by irregular demand with long periods of time between orders. Efficiency is difficult since every output must be treated differently. - the outputs differ significantly in form, structure, materials and/or processing required. Each unique job travels from one functional area to another according to its own unique routing, requiring different operations, using different inputs, and requiring varying amounts of time. This causes the flow of the product through the shop to be jumbled, following no repetitive pattern. - Job shops are usually organized around the function of the individual machines. In other words, machinery is grouped according to the purpose it serves or the capabilities it possesses. This is labeled a process layout.

Cellular Manufacturing

- Cellular manufacturing is a hybrid system that links the advantages of a job shop with the product layout of the repetitive process line. - The cell design provides for quick and efficient flow, and the high productivity associated with assembly lines. - It provides the flexibility of the job shop, allowing both similar and diverse products to be added to the line without slowing the process.

Cellular Manufacturing

- Cellular manufacturing is a manufacturing process that produces families of parts within a single line or cell of machines operated by machinists who work only within the line or cell. - A cell is a small scale, clearly-defined production unit within a larger factory. This unit has complete responsibility for producing a family of like parts or a product. All necessary machines and manpower are contained within this cell, thus giving it a degree of operational autonomy. - Each worker is expected to have mastered a full range of operating skills required by his or her cell. Therefore, systematic job rotation and training are necessary conditions for effective cell development. Complete worker training is needed to ensure that flexible worker assignments can be fulfilled

Batch Processing

- Firms utilizing batch processes provide similar items on a repeat basis, usually in larger volumes than that associated with job shops. The higher volume and repetition of requirements can make more efficient use of capacity and result in significantly lower costs. - Compared to job shops, batch processing has a much smoother flow of work-in-process throughout the shop. While the flow is smoother, the work-in-process still moves around to the various machine groupings throughout the shop in a somewhat jumbled fashion. This is described as a disconnected line flow or intermittent flow.

Continuous Processing

- In continuous manufacturing involves the product flows continuously rather than being divided into discrete units. A basic material is passed through successive operations (i.e., refining or processing) and eventually emerges as one or more products. This process is used to produce highly standardized outputs in extremely large volumes. - Considerable capital investment is required, so demand for continuous process products must be extremely high. Starting and stopping the process can be prohibitively expensive. As a result, the processes usually run 24 hours a day with minimum downtime (hence, continuous flow). This also allows the firm to spread their enormous fixed cost over as large a base as possible.

assembly line (repetitive processes) advantage

- Individual unit of output do not have to be monitored and controlled. - Less skilled workers can be utilized.

Strategic Process Decisions

- Involve determining how to produce a product or provide a service - Meet or exceed customer requirements -Meet cost & managerial goals (e.g. market share) -Has long-run effects -Product & volume flexibility -Costs & quality

Batch Processing advantage

- More efficient and lower cost than Job Shop

bath processing disadvantage

- Process flow is not as smooth as Repetitive Processing

Projects

- Projects have a set beginning and ending. - Large projects are often divided into smaller tasks. - Projects have defined results. - Projects different from operations. - Operations are day to day work but projects often involve cross-functional teams operating outside of day to day operations.

Product Process Matrix

- The product-process matrix is a tool for analyzing the relationship between the product life cycle and the technological life cycle. - It is used facilitate the understanding of the strategic options available to a company. - The matrix consists of two dimensions, product structure/product life cycle and process structure/process life cycle. - The production process used to manufacture a product moves through a series of stages, much like the stages of products and markets, which begins with a highly flexible, high-cost process and progresses toward increasing standardization, mechanization, and automation, culminating in an inflexible but cost-effective process

Assembly Lines (Repetitive Processes)

- When product demand is high enough, the appropriate process is the assembly line (also referred to as mass production.) - Laborers generally perform the same operations for each production run in a standard and hopefully uninterrupted flow. These processes are generally heavily automated, utilizing special-purpose equipment and often some form of conveyor system connecting the operations in a single route through the process. Less skilled workers can be utilized. - The product created by the assembly-line process is discrete; that is, it can be visually counted (as opposed to continuous processes which produce a product that is not naturally divisible). - Firms in the lower-right quadrant (line and continuous) are classified as having a product layout.

assembly line (repetitive processes) disadvantage

-Capital investment -Repetitive and often monotonous work

continuous processing disadvantage

-low flexibility -high investment

continuous processing advantage

-lower variable cost -lower labor needs

The U of I Hospitals is an example of what process strategy? A. Job Shop B. Batch C. Repetitive/modular D. Continuous

A

Which of these requires the highest skilled workers? A. Job shop B. Batch processing C. Repetitive/modular D. Continuous

A

Make-to-Stock

A production system in which an item's production begins before the customer for the item is known. In a make-to-stock system, units are generally placed in inventory to await customer demand

job shop production advantage

Advantages: - Flexibility - General purpose equip.

Assemble To Order - ATO

Assemble to order (ATO) is a business production strategy where products ordered by customers are produced quickly and are customizable to a certain extent. The assemble-to-order (ATO) strategy requires that the basic parts for the product are already manufactured but not yet assembled. Once an order is received, the parts are assembled quickly and sent to the customer. The assemble-to-order (ATO) strategy is a hybrid between a make-to-stock strategy - where products are fully produced in advance - and the make-to-order strategy - where products are manufactured once the order has been received. The ATO strategy attempts to combine the benefits of both strategies - getting products into customers' hands quickly while allowing for the product to be customizable.

The selection of how to make a product should not impact A. efficiency B. cost C. functionality D. quality

C

Make-to-Order Systems

Customer must be patient Customers have a strong preference for variety Mass customization - Each customer's order is unique, customized to her/his exact preference Leftover inventory is expensive Production is reasonably quick

Which of these has the lowest flexibility A. Job shop B. Batch C. Repetitive/modular D. Continuous

D

job shop production disadvantages

Disadvantages: - Trained personnel - Low equip. utilization

Designing Cellular Layouts

Group technology is used to organize parts into families with similar manufacturing requirements.

Make-to-Order

Make-to-order - A production system in which a item's production begins after the customer for the item is known. In a make-to-order system, units are generally delivered to a customer immediately after production is completed, thereby not spending time in inventory.

Make-to-Order Advantages

Make-to-order is opposite of make-to-stock Make-to-order system will not have leftover inventory requiring to be salvaged Make-to-order systems help to reduce stockouts Make-to-order system customers wait to receive their units Production could begin after demand is observed Yields maximum profit

Cellular Manufacturing

More efficient than a process layout. More flexible than a product layout.

Make-to-Order Disadvantages

Need good queuing systems Wait times Wait times growing exponentially as utilization increases Times is Achilles heel of make-to-order Consumers prefer "now" versus "later" How long will consumers wait before going to another supplier

Mass Customization

Production of personalized or custom-tailored goods or services to meet consumers' diverse and changing needs at near mass production prices. Enabled by technologies such as computerization, internet, product modularization, and lean production, it portends the ultimate stage in market segmentation where every customer can have exactly what he or she wants.