Chapter 7: Manufacturing Processes

Product Process Matrix

A framework depicting when the different production process types are typically used, depending on product volume and how standardized the product is.

Continuous Process

A process that converts raw materials into finished product in one contiguous process.

Assemble to Order

A production environment where pre-assembled components, sub-assemblies, and modules are put together in response to a specific customer order.

Make to Stock

A production environment where the customer is served "on-demand" from finished goods inventory.

Make to Order

A production environment where the product is built directly from raw materials and components in response to a specific customer order.

Assembly Line

A setup in which an item is produced through a fixed sequence of workstations, designed to achieve a specific production rate.

Project Layout

A setup in which the product remains at one location, and equipment is moved to the product.

Manufacturing Cell

Dedicated area where a group of similar products are produced.

Engineer to Order

Here the firm works with the customer to design the product, which is then made from purchased material, parts and components.

Workcenter

Often referred to as a job shop, a process structure suited for low-volume production of a great variety of non-standard products. These sometimes are referred to as departments and are focused on a particular type of operation.

Lead Time

The time needed to respond to a customer order.

Lean Manufacturing

To achieve high customer service with minimum levels of inventory investment.

Customer Order Decoupling Point

Where inventory is positioned in the supply chain.