Process Choice Decisions in Firms

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10 Questions

What does reengineering involve in business processes?

Fundamental rethinking to achieve dramatic improvements

What is facility layout in the context of an organization?

The specific arrangement of physical facilities

What is an advantage of product layouts?

Higher labor and equipment utilization

What is a disadvantage of product layouts?

A breakdown of one piece of equipment can cause the entire process to shut down

What type of layout is commonly used in job shops?

Process layout

What is the primary characteristic of a process layout?

Functional grouping of equipment or activities

What is the benefit of higher output rates in product layouts?

Improved equipment utilization

Why may product layouts be less flexible?

Due to the high cost of specialized equipment

What is a consequence of a breakdown in product layouts?

The entire process may shut down

What is a key benefit of process layouts?

Increased flexibility

Learn about the three major types of goods and services that firms produce: custom or make-to-order goods and services, examples of which include ships, internet sites, weddings, taxi service, and more. Explore how firms make process choices based on customer orders and demands.

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