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CHAPTER 1O P E R AT I O N S A N D P R O D U C T I V I T Y
Product
Likely Process
(a) Beer
(b) Wedding invitations
(c) Automobiles
(d) Paper
(e) Big Mac
(f) Custom Homes
Product Focused/Continuous
Process Focused/Job Shop
Modular/Repetitive
Product Focused/Continuous
Modular/Repetitive
Job Shop with components made
in Product Focused and Modular
facilities
Modular/Repetitive
(g) Motorcycles
Repetitivefocus,HarleyDavidson
Productfocus,FritoLay
Masscustomization,DellComputer
10.Competitiveadvantageofmnufacturingfirmsineachofthe
processmodels:
Processfocus,differentiation,andexpertiseineachprocess
area(Kinkos)
Repetitive focus, rapidresponse, and efficiency(Harley
Davidson)
Productfocus,verylowvariablecost(FritoLay)
Mass customization, low cost, rapid response to unique
customerdemands(DellComputer)
11.StudentsmayfindFigure7.1andFigure7.8andtherelated
discussionshelpfulwiththisquestion.Servicefirmsineachofthe
processmodels:
Process: your local generalpurpose hospital. Also most
constructionfirms,suchasBechtel
Repetitive:fastfoodrestaurants
Product:ShouldiceHospital.
Mass customization: cafeterias and online stockbrokers
suchasSchwab
12.Competitiveadvantageofservicefirmsineachprocessmodel:
Processfocusforageneralpurposehospital:specialization
of expertise in each hospital discipline, xray, physical
therapy, blood lab, etc., by both the technician and
supervision.
Repetitivefocus:highqualitymodulesasinmostfastfood
(verylimitedmenu)restaurants,andlawclinicswiththe
lowcostoftheuncontesteddivorce.
Productfocus:SouthwestAirlinesandonlinestockbrokers
maybegoodexamplesoflowcostadvantage.
Masscustomization,perthetext,McDonaldsistryingthis
inalimitedway.CharlesSchwabseemstobeeffective at
thisinthefinancialservicesareas.Theyseekcompetitive
advantagevialowcostandhighcustomization.
13.Numericallycontrolledmachinerymeanstheequipmentis
computer controlled via programming languages. As an added
note, machinery with its own programmable computer is
sometimes called computer numerically controlled (CNC),
implyingthatthereiscomputermemoryatthemachine.Machines
thatarewiredtoacentralmachinearecalleddirectnumerically
controlled(DNC)machines.
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