Process Strategy
Jumbled Production
A type of process where each job follows a distinct routing through the shop, often requiring equipment setups or changeovers, but enabling the production of a great variety of products.
Load-Distance Method
A technique for measuring the movement requirements in an office or functional layout.
Continuous Production
A type of process in which items follow the same equipment routing and can be produced with little or no interruption.
Batch Production
A type of process in which sets of items move through the manufacturing steps in a group.
Responsiveness
A basic strategy in which a firm competes by quickly providing products and services to its customers.
Cost Leadership
A basic strategy in which a firm competes with low prices.
Differentiation
A basic strategy in which a firm competes with unique products and services.
Value Triangle
A conceptual framework that shows the relationship among the basic strategies in which firms compete.
Product-Process Matrix
A conceptual framework to help align operations to company offerings.
Functional Layout
A facility layout composed of groups of general purpose equipment, designed to support a wide variety of product and service deliverables. Examples include print shops, department stores, etc. Syn: Job Shop, Process Layout.
Product Layout
A facility layout composed of specialized equipment, designed to support an assembly line or line flow, producing a limited variety of products or services. Examples include automated car wash, car manufacturing, etc.
ETO (Engineer-to-Order)
A production approach where customer specifications require unique design, customization, or new purchased materials.
ATO (Assemble-to-Order)
A production environment where a good or service can be put together, from standard components, after receipt of the customer order.
MTO (Make-to-Order)
A production environment where products are made after receipt of the customer order. Key components typically include a combination of standard items and custom items.
MTS (Make-to-Stock)
A production environment where products can be finished before receipt of customer orders. Those orders are typically filled by existing inventory.
Fixed-Position Layout
An arrangement where resources are brought to the place of production, typically used on large projects.
Layout
Physical arrangement of resources (machines, people, workstations, storage) within a facility.
Cycle Time
The duration between the completion of two successive, discrete units of production.
Process Flow
The sequence of activities that result in a product or service deliverable.
Idle Time
The time when operators or resources are not producing.
