MAN4504 Exam 2

Make to Stock

•Manufactured in advance based on demand forecast

•bottled soda, tooth paste, t shirts

Assemble to Order

•Standard components are premade and stocked, but final assembly happens after the customer places an order

•Ex: custom configured computers, fast food burgers, cars with selectable options

Make to Order

•Production of parts and final products starts only after the order is received

•Ex: custom furniture, wedding cakes, custom sized metal parts

Engineer to Order

•Product is designed, engineered, and then built from scratch after the order is placed. Design and product are customized

•Ex: bridges/large infrastructure projects, custom industrial machinery

Process Focus

• low volume, high variety

• general purpose equipment and skilled personel

• high degree of product flexibility

• ex: operating room where they do surgeriesR

Repetitive Focus

• facilities organized as assembly lines

• modules with parts and assemblies made previously

• less flexibility but more efficient

• ex: Harley Davidson bike

Product Focus

• facilities organized by product

• high volume, low variety

• high fixed cost, low variable cost

• less skilled labor

• ex: Frito Lay chips

Mass Customization

• rapid, low cost production to satisfy increasingly unique customer desires

• high volume, high variety