Strategy process

Types of Processes (1) (12 characteristics)

PROJECT BATCH MASS CONT.

Type of product

Unique One-at-atime

Made-toorder
(customized)

Made-tostock
(standardized )

Commodity

Type of customer

Few individual customers

Mass market

Mass market

Product demand

Infrequent

Fluctuates

Stable

Very stable

Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210 Copyright 2009 John Wiley & 6-2 Sons, Inc.

Types of Processes (2)

PROJECT BATCH MASS CONT.

Demand volume No. of different products Production system

Very low

Low to medium

High

Very high

Infinite variety

Many, varied Few

Very few

Long-term project

Repetitive, Discrete, job assembly shops lines

Continuous, process industries

Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210 Copyright 2009 John Wiley & 6-3 Sons, Inc.

Types of Processes (3)

PROJECT BATCH MASS CONT.

Equipment

Varied

Generalpurpose

Specialpurpose

Highly automated

Primary type of work Worker skills

Specialized Fabrication contracts Experts, craftspersons

Assembly

Mixing, treating, refining

Equipment monitors

Wide range of skills

Limited range of skills

Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210 Copyright 2009 John Wiley & 6-4 Sons, Inc.

Types of Processes (4)

PROJECT BATCH MASS CONT.
Highly efficient, large capacity, ease of control
Difficult to change, far-reaching errors, limited variety

Advantages

Custom work, latest Flexibility, technology quality

Efficiency, speed, low cost

Capital investment; lack of responsiveness

Disadvantages

Non-repetitive, small customer base, expensive

Costly, slow, difficult to manage

Examples

Construction, shipbuilding, spacecraft

Machine shops, print shops, bakeries, education

Automobiles, televisions, computers, fast food

Paint, chemicals, foodstuffs

Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210 Copyright 2009 John Wiley & Sons, Inc. 6-5