Process Strategy

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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.


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