BU385 Chapter 6: Chapter 6- Process Design and Facility Layout
Document Summary
Process design: determines form and function of how production of g/s is to occur (sequence of operations) Major implications for layout of facilities, equipment, and design of work/jobs. Occurs as matter of course when new products are being designed or existing products are redesigned; also due to technological changes in equipment and material, and methods/quality improvement. First step: whether to make or buy all of product/segment of production process (insource/outsource) Buy part of production process = eliminates need to produce part of production process inhouse. Decision based on existing or desired core capabilities, and available capacity, quality, whether demand is steady or temporary, secrecy of technology, and cost. Basic process types: job shop, batch, repetitive (assembly line), and continuous. Job shop: process used when low quantity of high-variety customized g/s will be needed; Intermittent = work shifts from one small job to next with slightly diff. requirements.
