Management and Operations: Process, Location, and Layout - Choices and Types, Study notes of Production and Operations Management

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MD 021 - Management and Operations Process, Location and Layout  Process Choice  Factors affecting location decisions  Breakeven location problem  Layout types  Product layout

Process Management and Major Process Decisions Process management is the selection of the inputs, operations, work flows, and methods that transform inputs into outputs. Major process decisions: Process choice: A process decision that determines whether resources are organized around products or processes. Vertical integration: The degree to which a firm’s own production system or service facility handles the entire supply chain. Resource flexibility: The ease with which employees and equipment can handle a wide variety of products, output levels, duties, and functions. Customer involvement: The ways in which customers become part of the process and the extent of their participation.

Breakeven Location Problem By chance, the Atlantic City Community Chest has to close temporarily for general repairs. They are considering four temporary office locations: Property Address Move-in Costs Monthly Rent Boardwalk $400 $ Marvin Gardens $280 $ St. Charles Place $350 $ Baltic Avenue $60 $ a. Can any of these addresses be immediately eliminated from consideration if the goal is to minimize total costs? b. Use the graph on the next page to help determine for what length of lease each location would be favored. Calculate the breakeven lease lengths between addresses.

Breakeven Location Problem 0 100 200 300 400 500 0 1 2 3 4 5 6 7 8 9 10 Months Total Cost Breakeven calculations:

Product Layout Although product layouts often follow a straight line, a straight line is not always the best, and layouts may take an L , O , S , or U shape. Why? L : O : S : U :