1. PROCESS STRATEGIES

2. Figure : Relationship of Product Decision and Capacity Planning
Research and Technology
Marketplace and Demand
Product decisions
Process planning and capacity decisions
Workforce
Master work schedule
Aggregate plan for production
Inventory on hand
Raw material available
Master production schedule and MRP system
External Capacity (subcontractors)
Detailed work schedule

3. PROCESS STRATEGIES FOUR PROCESS STRATEGIES Process Focus
Repetitive Focus
Product Focus
Mass Customization Focus
Comparison of Process Choices

4. Fit of Process, Volume, and Variety
Process focus
projects, job shops,(machine, print, carpentry)
Standard Register
Repetitive
(autos, motorcycles)
Harley Davidson
Product focus
(commercial baked goods, steel, glass)
Nucor Steel
High Variety
One or few units per run, high variety
(allows customization)
Changes in modules
Modest runs, standardized modules
Changes in attributes (such as grade, quality, size, thickness, etc.)
Long runs only
Mass Customization
(difficult to achieve, but huge rewards)
Dell Computer Co.
Poor strategy
Low-Volume
(Intermittent)
Repetitive Process
(Modular)
High-Volume
(Continuous)
It may be most useful to begin discussion of this slide with the repetitive process since most students seem to have a concept of an assembly line. Once the repetitive process is introduced, one can then view changing one of the parameters, volume or length of run, and argue the need for process- or product-focus systems.
Once the three types of processes have been introduced, it is probably useful to discuss precisely why the low-volume/long run, and high-volume/short run options are usually poor choices.

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