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Questions and Answers

What is a characteristic of equipment used in a job shop process?

General-purpose equipment

What type of products are often manufactured using a job shop process?

Made-to-order products

What is a common challenge in a project process?

Difficult planning and scheduling problems

What is a characteristic of labor in a job shop process?

Highly skilled and flexible Signup and view all the answers

What is a result of the flow of products in a job shop?

Jumbled and intermittent Signup and view all the answers

What type of equipment is used in a project process?

Materials and labor are brought to the project site Signup and view all the answers

What is a characteristic of a project process?

Used for unique or creative single products Signup and view all the answers

What is a characteristic of labor in a project process?

Highly skilled Signup and view all the answers

What type of projects require customization and uniqueness?

Construction of buildings, roads, and dams, and production of large aircraft, and concerts Signup and view all the answers

What is the main characteristic of Make-to-Stock (MTS) approach?

Goods are made and stored before customer orders are received based on the anticipated consumer demand Signup and view all the answers

What is the advantage of using the Make-to-Stock (MTS) approach?

Faster fulfillment of customer demand and low cost of production Signup and view all the answers

What is the disadvantage of using the Make-to-Stock (MTS) approach?

Inventory holding costs and slower response to changes in customer preferences Signup and view all the answers

What is the 'push strategy' in the context of order fulfillment?

Make-to-Stock (MTS) approach, where products are built and stockpiled in advance of actual customer orders Signup and view all the answers

What is the purpose of calculating performance measures in order fulfillment?

To evaluate the effectiveness of the order fulfillment approach Signup and view all the answers

What is the significance of forecast in Make-to-Stock (MTS) approach?

It is used to anticipate customer demand and produce products accordingly Signup and view all the answers

What is the main difference between Make-to-Stock (MTS) and other approaches to order fulfillment?

Products are made and stored before customer orders are received Signup and view all the answers

What is the primary goal of mass customization?

To provide custom products in lot sizes of one in high volume Signup and view all the answers

How does modular production contribute to mass customization?

By providing a variety of options through assemble-to-order process Signup and view all the answers

What is the significance of digital control in mass customization?

It enables production to be uniquely identified by a bar code or other identifier, specifying customer options Signup and view all the answers

What is the concept of postponement in mass customization?

Deferring a portion of production until the point of delivery Signup and view all the answers

How does mass customization reduce average unit cost?

By producing several products through the same process Signup and view all the answers

What is the key difference between traditional mass production and mass customization?

Mass production focuses on economies of scale, while mass customization focuses on variability of scope Signup and view all the answers

What is an example of a company that uses mass customization?

Dell Signup and view all the answers

What is the primary advantage of fast changeover in mass customization?

Enabling production of lot sizes of one economically Signup and view all the answers

What is the primary purpose of a decoupling point in a production process?

To separate the production of core products from their configuration into final products demanded by customers Signup and view all the answers

What are the two key aspects of agility in a supply chain?

Speed of reaction and ability to tailor operations to demands from individual customers Signup and view all the answers

What is the primary implication of an agile supply chain strategy?

Putting service first, even if it means slightly higher costs Signup and view all the answers

What is the primary difference between the supply chains for electric vehicles and those for legacy carmakers?

Electric vehicle supply chains require significant investments in new technologies and production capacity, whereas legacy carmakers may struggle to adapt. Signup and view all the answers

What is the significance of Tesla's investment in capital over the past two decades?

To build production capacity, develop new technologies, and create a global electric vehicle supply chain Signup and view all the answers

What is the primary goal of Tesla's planned investment of $150 billion?

To sell 20 million vehicles per year, with CEO Elon Musk expressing confidence in infinite demand for their vehicles Signup and view all the answers

What is the key benefit of an agile supply chain strategy in mitigating volatility in demand?

Ability to respond quickly to changing customer needs and preferences Signup and view all the answers

What is the significance of Tesla's partnerships with other companies in the electric vehicle industry?

To bolster its electric vehicle manufacturing and supply chain capabilities Signup and view all the answers

What was the production approach used by Tesla in producing the Roadster?

Job shop production Signup and view all the answers

What strategic partnerships did Tesla form to support the development of the Model S sedan?

Partnerships with Daimler AG and Toyota Signup and view all the answers

What is the significance of Tesla's vertically integrated supply chain?

Controlling sales, service, and charging networks, and manufacturing key components in-house Signup and view all the answers

What is the role of tier-one suppliers in the traditional auto industry?

Providing components to various automotive companies Signup and view all the answers

What is crucial for battery production in Tesla's supply chain?

Securing a stable supply of critical minerals and metals Signup and view all the answers

What is the purpose of Tesla's direct supply deals with mining companies?

Acquiring a significant portion of essential minerals directly from mining companies Signup and view all the answers

What is the significance of the NUMMI plant in Tesla's production history?

It was acquired for mass production of the Model S sedan Signup and view all the answers

What is the significance of Model 3 sedan and Model Y in Tesla's product lineup?

They demonstrated Tesla's commitment to accelerating the adoption of sustainable transport Signup and view all the answers

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Study Notes

Product Process Approaches

General-purpose equipment is used in job shops, which are not specialized to make just one particular product.
Labor is more skilled and flexible in job shops, allowing for the production of different products.
Each product can have a different flow path, and some products may skip certain work centers, making the flow jumbled and intermittent.

Job Shop

A special case of the batch process, where the product is made in batches, usually in small lot sizes, but customized to order.
Uses general-purpose equipment and has a jumbled flow.
Has high flexibility for product mix and volume of production, but costs are generally higher due to low volume and standardization.

Project

Used for unique or creative single products, where materials and labor are brought to the project site.
The project itself is stationary, and labor must be highly skilled with the unique nature of the product or service being made.
Examples include construction of buildings, roads, and dams, and production of large aircraft.

Make-to-Stock (MTS)

Goods are made and stored before customer orders are received, based on anticipated consumer demand.
MTS process has a standard product line specified by the producer, not by the customer.
Advantage: faster fulfillment of customer demand and low cost of production.
Disadvantage: inventory holding costs and slower response to changes in customer preferences.

Mass Customization

A strategy to provide custom products in lot sizes of one in high volume.
Depends on variability of scope, which is a high variety of products from a single process.
Reduces the average unit cost due to production of several products by the same process.

Mass Customization Components

Modular production and assemble-to-order (ATO) can provide a variety of options.
Fast changeover allows for production of a lot size of one economically.
Postponement of options defers a portion of production until the point of delivery.

Case of Tesla

Tesla has invested over $28 billion in capital to build production capacity, develop new technologies, and create a global electric vehicle supply chain.
Tesla plans to spend nearly $150 billion to sell 20 million vehicles per year, with CEO Elon Musk expressing confidence in infinite demand for their vehicles.
Tesla's supply chain involves a complex global network, including mining raw materials, refining minerals, manufacturing battery cells, and assembling battery packs.
Tesla secured direct supply deals with mining companies for key minerals like nickel, lithium, and cobalt.

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