LSCM 3403 Lecture Notes - Lecture 5: Process Design, Mass Customization, Job Shop
30 Jun 2020
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Document Summary
**first step in production/service design is to decide whether to make or buy some or all of a product. **make to stock: producing & holding items in inventory for fat delivery to customers. Standardized products that have high predictable demand. **make to order: producing variety of products to customer specifications. Low demand customized products produced with complex but flexible processes resulting in long production lead time. **assemble to order: producing large variety of products after customer orders received. Standardized sub-assemblies & components held in inventory. Final assembly postponed until actual order for final product is received. **process design: determining the form & function of goods or services are produced. Job shop: small scale, high variety of goods/services, high flexibility [surgery, hair salon] Batch: moderate volume & variety of goods/services, moderate flexibility [bread, cookies, beer] Repetitive: high volume of standardized goods/services, slight flexibility of equipment. Continuous: very high volumes of non-discrete goods [gasoline, steel]
