ECON 1 Lecture Notes - Lecture 6: Business Process, Decision Rule, Takt Time
Document Summary
Chapter 3: process choice and layout decisions in. They tend to be expensive and far reaching. They deserve extra attention, because different processes have different strengths and weaknesses. Processes managers choose have to support the overall business strategy. High quality is nowadays a basic requirement. As manufacturing changes, choosing one manufacturing process will always bring trade-offs. Flexible manufacturing systems (fmss): highly automated batch processes that can reduce the cost of making groups of similar products. Smaller set of standard products are still cheaper, but no flexibility. The time for the finishing of the tasks is limited. Ideally, production lines are suited to the high-volume production of single product or a product that is characterized by similar design attributes. The main difference is the form of the product, which usually cannot be broken into discrete units. Examples include yarns and fabric, food products and chemical products such as oil or gas.
