Chapter 3 - Process Choice and Layout Decisions in Manufacturing and Services

Flexible manufacturing systems (FMS)

Highly automated batch processes that can reduce the cost of making groups of similar products.

Production line

A type of manufacturing process used to produce a narrow range of standard items with identical or highly similar designs.

Product-based layout

A type of layout where resources are arranged sequentially, according to the steps required to make a product.

Cycle time (throughput time)

The total elapsed time needed to complete a business process; for line processes, the actual time between completions of successive units on a production line.

Continuous flow processes

A type of manufacturing process that closely resembles a production line process; main difference is the form of the product, which usually cannot be broken into discrete units

Exs. yarn and fabric, food products, oill, gas

Job shop

A type of manufacturing process used to make a wide variety of highly customized products in quantities as small as one; characterized by general-purpose equipment and workers who are broadly skilled.

Functional layout

Type of layout where resources are physically grouped by function.

Batch manufacturing

Type of manufacturing process where items are moved through the different manufacturing steps in groups.

Fixed-position layout

Type of manufacturing process in which the position of the product is fixed; materials, equipment, and workers are transported to and from the product.

Hybrid manufacturing processes

General term referring to a manufacturing process that seeks to combine the characteristics of more than one of the classic procedures

Exs. Flexible manufacturing systems, machining centers, group technology

Machining center

Type of manufacturing process that completes several manufacturing steps without removing an item from the process.

Group technology

Type of manufacturing process that seeks to achieve the efficiencies of a line process in a batch environment by dedicating equipment and personnel to the manufacture of products with similar manufacturing characteristics.

Cellular layout

Type of layout typically used in group technology settings in which resources are physically arranged according to the dominant flow of activities for the product family.

Product family

In group technology, a set of products with very similar manufacturing requirements.

3D printing

An additive manufacturing process that creates a physical object from a digital design.

Make-to-stock (MTS) products

Products that require no customization; are typically generic products and are produced in large enough volumes to justify keeping a finished goods inventory.

Assemble-to-order (ATO) or finish-to-order products

Products that are customized only at the very end of the manufacturing process.

Make-to-order (MTO) products

Products that use standard components but have customer-specific final configuration of those components.

Engineer-to-order (ETO) products

Products that are designed and produced from the start to meet unusual customer needs or requirements; represent the highest level of customization.

Upstream

Term used to describe activities or firms that are positioned earlier in the supply chain relative to some other activity or firm of interest.

Downstream

Term used to describe activities or firms that are positioned later in the supply chain relative to some other activity or firm of interest.

Law of variability

According to Roger Schmenner and Morgan Swink, “The greater the random variability either demanded of the process of inherent in the process itself or in the items processed, the less productive the process is.”

Service package

A package that includes all the value-added physical and intangible activities that a service organization provides to the customer.

Takt time

In a production line setting, the available production time divided by the required output rate; sets the maximum allowable cycle time for a line.