RSM100Y1 Chapter Notes - Chapter 10: Canada Green Building Council, Quality Management System, Oil Refinery
Document Summary
Utility: the want-satisfying power of a good or service: businesses can create or improve 4 basic kinds of utility: time, place, ownership, and form. Production: the use of resources, such as workers and machinery, to covert materials into finished goods and services. The production process is important for both for-profit and not-for-profit organizations. Mass production: a system for manufacturing products in large quantities by using effective combinations of employees with specialized skills, mechanization, and standardization: large quantities at lower prices, 3 elements of mass production: specialization, mechanization, standardization. These principles of specialization, mechanization, and standardization led to development of the assembly line: upsides: Highly efficient for producing large numbers of similar products: limitations: Highly inefficient when producing small batches of different items. Some companies might be tempted to focus on efficient production methods instead of focusing on making what customers want.
