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identifies the mix of resources required to produce the goods or services such that the organization's competitive priorities may be achieved.
includes: inputs (materials, labor, equipment)
work methods
work flow |
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dollar value associated with the portion of the production process to be accomplished by equipment rather than labor
degree of automation |
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| flexibility of the production process in terms of service-mix and service volume as determined by the selection of equipment, work force skills, and process design. |
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| backward or forward. make, buy, or lease |
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| Current trend favors outsourcing all activities that do not directly represent or support core competencies. |
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Limit Discretion of Personnel
Division of Labor
Substitute Technology for People
Standardize the Service |
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| detailed chart containing all activities required to produce the good/service by each worker/machine. Identifies all of the following types of activities in the order in which they occur noting their duration and location: operation, transporation, inspection |
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| Displays the activities performed by several workers (machines) simultaneously. Benefit: helps analyze the manner in which work may be divided among several members of a group more evenly (to minimize idle time) and efficiently. |
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| depicts the movement of materials or workers through the production process by diagramming the locational relationships between successive activities. |
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| inspection before/after process |
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| corrective action during production |
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| quality build into the process |
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Improved response
Economies of Scale
Improved reputation |
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Lower Rework Costs
Lower Scrap Costs
Lower Warranty Costs |
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| satisfying a previously dissatisfied customer, and making them a loyal one |
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