Exam 6: Operations Producing Goods and Services
There are four assembly processes. Name all four, and pick two to discuss in detail.
Products are built either according to plan or to demand. Their production occurs via either a make-to-stock (MTS) or a make-to-order (MTO) manufacturing process. MTO can be segmented into three variations: assemble-to-order (ATO), build-to-order (BTO), and engineer-to-order (ETO). Each process is appropriate for some types of products.
Make-to-stock is the traditional production method where end-item products are finished before receipt of a customer order.
Assemble-to-order product assembly commences after receipt of a customer's order. The finished ATO product is generally a combination of common components and a limited number of options or accessories made available to the customer. The individual components are often stocked in anticipation of demand, but the finished goods are not assembled until customers place orders for their desired products.
The build-to-order production approach also delays assembly until a confirmed order is received for the product. The end-item finished product is generally a combination of standard and custom-designed components that meet the unique needs of a specific customer. It differs from ATO in the higher level of customization and lower volume level of production. BTO is considered a good choice for products that require some custom configuration, such as a private jet where the aircraft is a standard model but the customer specifies the avionics and interior design. It is also effective for situations where holding finished goods inventories in anticipation of demand is very expensive.
Engineer-to-order production focuses on the creation of highly tailored products for customers whose specifications require unique engineering design or significant customization. In this manufacturing environment, no two products are identical, and each order requires detailed cost estimates and tailored pricing. Also known as project manufacturing, successful ETO initiatives depend on effective collaboration between all supply chain participants.
Packaging is very important in the manufacturing operation.
False
A workcenter is a fixed layout where the product remains in place for the duration of production.
Which of the following is not a reactive capability strategy?
World-class organizations can improve performance along multiple dimensions without making extensive performance tradeoffs or sacrifices.
Discuss the role of production operations in Supply Chain Management (SCM).
A newly launched twenty-first century addition to production strategy which leverages lean manufacturing strategies, Six Sigma best practices, and real-time actionable intelligence from the factory floor is called:
Machine flexibility provides the ability to produce different types of products as well as change the order of operations executed on a product.
A push-based strategy works well for supply chains that focus on:
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