GMS 401 Lecture Notes - Lecture 5: Shoppers Drug Mart, Ikea, Automatic Identification System

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Process or transformation strategy- an organization"s approach to transforming resources into goods and services. The objective of a process strategy is to build a production process that meets customer requirements and product specifications within cost and other managerial constraint. Four basic strategies: process focus, repetitive focus, product focus, mass customization. They contain different (and general purpose) machines, such as drills, fabricating, They have high flexibility in product engineering: they make parts for farm machineries, aircraft industries, etc. (high variety) They have high expansion flexibility (machines are easily added or substituted) Facilities are organized around specific activities or processes. A production facility organized around processes to facilitate low volume, high-variety production. The vast majority of global production is devoted to making low volume, high variety products in places called job shops. A manufacturing process in which parts are added in sequence as the semi-finished assembly moves from workstation to workstation until the final assembly is produced.

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