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Questions and Answers
What does process selection and facility layout refer to?
What does process selection and facility layout refer to?
- Ways organizations manage their financial resources
- Ways organizations choose to produce or provide their goods and services (correct)
- Ways organizations market their goods and services
- Ways organizations hire and train employees
What is capital intensity in the context of process selection and facility layout?
What is capital intensity in the context of process selection and facility layout?
- The total amount of capital invested in the organization
- The mix of equipment and labor used by the organization (correct)
- The amount of profit generated by the organization
- The level of competition in the industry
What does process flexibility refer to?
What does process flexibility refer to?
- The degree to which the system can be adjusted to changes in product or service design (correct)
- The number of processes involved in production
- The cost of implementing new technology
- The number of employees in the organization
What is the relationship between volume and variety in process selection?
What is the relationship between volume and variety in process selection?
What is the focus of designing product layouts in the context of process selection and facility layout?
What is the focus of designing product layouts in the context of process selection and facility layout?
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Study Notes
Process Selection and Facility Layout
- Refers to the strategic decisions regarding how products will be made and how the facilities will be organized.
- Involves determining the most effective processes and layouts to optimize production efficiency and meet customer needs.
Capital Intensity
- Describes the extent to which a process requires significant financial investment in machinery and equipment.
- High capital intensity indicates a heavy reliance on automated equipment, while low capital intensity suggests labor-intensive processes.
Process Flexibility
- Refers to the ability of a production system to adapt to changes in product type and volume.
- High flexibility enables quick responses to market demands and customization of products, vital for competitive advantage.
Volume and Variety Relationship
- Indicates the trade-off between the quantity of goods produced (volume) and the number of different products offered (variety).
- High volume typically aligns with low variety, while low volume often correlates with high variety, impacting process selection and layout design.
Product Layout Design Focus
- Aims to arrange resources efficiently to streamline production and minimize movement waste.
- Emphasizes facilitating smooth workflow, reducing lead times, and improving overall productivity in the manufacturing process.
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