Chapter 6 Learning Objectives MGMT
180
1)
Explain the strategic importance of process selection:
(P.217)
a)
Process selection refers to deciding on the way
production of goods or services will be organized. Processes convert inputs to
outputs; they are the core of operations management.
2)
Explain the influence that process has on an
organization: (P. 217)
a)
Process Selection affects the entire organization and
its ability to achieve its mission, and affects the organization’s supply
chain.
3)
The basic processing types are: (P. 218-220)
a)
Job Shop: Usually operates on a relatively small
scale. It is used when a low volume of high-variety goods or services will be
needed. High flexibility and skilled workers are necessary. Example:
Veterinarian Office
b)
Batch: Used when a moderate volume of goods or
services are needed. The skill level of workers need not be as high, and
equipment need not be as flexible. Examples: Bakeries, movie theaters, and
airlines.
c)
Repetitive: Used when high volumes of standardized
goods or services are needed. Slight flexibility of equipment is needed. Skill
of workers is relatively low. This process type is often referred to as an assembly. Examples: TVs, automobiles,
and computers.
d)
Continuous: Used when a high volume of nondiscrete, highly standardized output is desired. These
systems have almost no variety in output and need no equipment flexibility.
Skill of workers can range from high to low depending on the complexity of the
system. Examples: process to make steel, salt, sugar, and flour.
e)
Project: Used for work that is non routine, with a
unique set of objectives to be accomplished in a time frame. Examples: putting
on a play, publishing a book, and building a bridge.
4) Discuss
automated approaches to processing: (P.
222)
a)
Automation is machinery that has sensing and control
devices that enable it to operate automatically. There are three types of
automation:
1.
Fixed Automation: It uses high-cost, specialized equipment
for a fixed sequence of operations.
2.
Programmable Automation: Involves
the use of high-cost, general purpose equipment controlled by a computer
program that provides both the sequence of operations and specific details
about each operation.
3.
Flexible Automation: It uses equipment more customized than
that of programmable automation. A key difference between the two is that
flexible automation requires less changeover time.
5)
List some reasons for redesign of layouts: (P.227)
a)
The most common reason for redesign of layouts include
inefficient operations, accident or safety hazards, changes in the design of a
products or services, introduction of new products and services, changes in the
volume of output, changes in methods of equipment, changes in environmental or
other legal requirements and morale problems.
1) Describe
the basic layout types: (P.231-232)
a)
Product Layout: Uses standardized processing operations
to achieve smooth, rapid, high-volume flow.
b)
Process Layout: Layouts that can handle varied processing
requirements.
c)
Fixed Position Layout: Layout
where the product or project remains stationary, and workers, materials and
equipment are moved as needed.
2)
List the main advantages and disadvantages of product
layouts and process layouts:
a) Product
Layouts (P.229): Advantages:
i.
high output
ii.
low unit cost due to volume
iii.
labor specialization reduces training costs and time
iv.
high utilization of labor and equipment
v.
routing and
scheduling are part of initial design, therefore not requiring much time once
the operation has begun.
vi.
Accounting, purchasing, and inventory control are
fairly routine
Disadvantages:
i.
intensive division of labor
ii.
poorly skilled
workers show little interest in maintaining equipment.
iii.
System is inflexible
iv.
System is highly susceptible to shutdowns
v.
Preventative maintenance quick repairs and spare parts
inventories are necessary expenses.
vi.
Incentive plans cause variations among outputs of
workers
b) Processes
Layouts (P.232): Advantages:
i.
Systems can handle a variety of processing
requirements
ii.
Systems are not vulnerable to equipment failures
iii.
General-purpose equipment is less costly than
specialized equipment
iv.
It is possible to use individual incentive plans
Disadvantages:
i.
In-process inventory costs can be high if batch
processing is used
ii.
routing and scheduling pose continual
challenges
iii.
equipment utilization rates are low
iv.
material handling is slow and inefficient
v.
job complexities often reduce the span of
supervision and result in higher supervisory costs.
vi.
Special attention necessary for each product or
customer
vii.
Accounting, inventory control and purchasing are much
more involved