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CHAPTER 5: PROCESS STRATEGIES & LAYOUT DECISION - Coggle Diagram
CHAPTER 5: PROCESS STRATEGIES & LAYOUT DECISION
DEFINITION OF PROCESS STRATEGIES
A process or (transformation) strategy is an organization's approach to transforming resources (inputs) into goods and services (outputs).
The objectives of process strategies are
Meet or exceed customer requirements
Meet cost managerial goals.
TYPES OF PROCESS STRATEGIES
1) PROCESS FOCUS
'General purpose' equipment usage
Customized products
Skilled personnel
High product variety, but low volume
'Jumbled' production flow
Low equipment usage
High variable cost per unit
2) REPETITIVE FOCUS
Combined modules
Less flexible, but more efficient
Semi-customized outputs
Less skilled personnel
3) PRODUCT FOCUS
High volume, but low product variety
More specialized equipment
Long, continuous production runs, which enable process efficiency
High fixed costs but low variable costs
Less skilled labor
Standardized products
4) MASS CUSTOMIZATION
Large quantities, large variety of products
Efficient production flow
Customized products
Complex planning and scheduling to accommodate custom orders
DEFINITION OF LAYOUT
The physical arrangement or location of equipment, departments, rooms, workstation and so on, within an organization with a description of resources locations and their relationship to each other.
Overall arrangement of machines, departments, work centers, equipment, material handling, service facilities to facilitate movement of work, customers or materials through system.
To develop and effective and efficient layout that will meet firm competitive requirements.
IMPORTANCE
Higher utilization of space
Reduced bottlenecks in moving people or material
Improved employees' morale and safer working conditions
Efficient use of labor
Improved customer and vendor interaction
Reduced material handling cost
Minimum equipment investment
TYPES OF LAYOUT
Product layout
Refers to a production system, where the workstations and equipment are located along the production line, as with assembly lines.
Process-oriented layout
Arrangement of equipment and facilities according to their functions to improve efficiency.
Fixed-position layout
Typical of projects where the product produced is too fragile, bulky or heavy to move.
Office layout
The grouping of workers, their equipment, and the space or offices involved to provide comfort, safety, and information movement.
Retail or service layout
Retail or service layouts, allocate shelf space and respond to customers' behaviour.
Warehouse layout
Designed to maximize the warehouse functions to achieve the highest efficiency and space utilisation.
Cellular (Work cell) layout
Arranges machinery and equipment to focus on the production of a single product or a group of related products.