OM week 2-2

Tuesday go get book from his office
latent demand - out there, not aware of it

Product Orientated Layout
Advantages- Efficient production of standardized goods and services
-High processing speed
-Low cost per unit

Disadvantage - Lack of flexibility or customization
-Employee boredom/ dissatisfaction
-Quality problems

Process-Oriented Layout
-Organization by function
-Processing steps can be completed in my sequence
-Products or customers can take my "route" necessary
ADV
-Flexibility
-Customization
DISADV
-Higher cost per unit
-Higher skilled, high cost employees
-Transport/wait time between departments
-Less consistency

Chopshop is the cost highest way to produce thing> depend

CELLUAR LAYOUTS
-A compromise of product and process layout
-Create "families" of products with similar process requirements
-A "cell" contains all resources needed for family

ADV
-Flexibility greater than a product-oriented layout
-Less costly than a process-oriented layout
-Less material transport/wait
-Fewer changeovers
DISADV
-Duplication of resources

Chopshop- within my charter
Cellular- divide up

The Product/Process Matrix
Process Types
Project - unique, one-of-a-kind, products or customers. Generally large in size (building a bridge, installing software system, implementing a major improvement effort)
Job Shop - Predominantly manufacturing, high customization and flexibility, but higher volume than project.
Batch Production- Group of identical products or customers processed together through one step and then move together to the step. More limited product variety, higher production volume.
Assembly Line - Narrowly defined processes, made up of equipment with limited flexibility. Much higher volume. Still the possibility of some flexibility.
Continuous flow (repetitive)- Equipment and stations dedicated to a single thing. Very high volume. Very flow flexibility. Best chance for automation.

Market Orientation: Demand Linkage
*Make-to-stock (MTS)
-Process activated to meet expected or forecast demand
-Customer orders are served from target stocking level
-Shorter lead time for stocked item /Much longer for out of stock item
*Make-to-order (MTO)
-Process activated in response to an actual order
*may be either standing or custom product (AKA ENG-To-Order)
-WIP and finished goods inventory kept to a minimum
-Tend to have longer response time
*Assemble-to-order (ATO)
-Partially manufactured and held in unfinished state
-Customer order dictates final configuration
-Quicker response than MTO; More flexible than MTS