Process and Location Strategy

Process design entails making decisions on the overall process method for changing the raw materials into finished goods. The decisions comprise the selection of a process, the technology used, layout of facilities and process flow analysis.

The decisions made at the process design helps in analysing the conversion of raw materials into finished products (Askar, C. 2007). Location is a key-decision of any large investment made in building machinery and plant. An improper location of a plant can lead to a loss and waste of investment made in machinery and plant.

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Process-focused strategy also known as job-shop production is characterized by, production of one or few amount or quantities of products, as per the customer’s specification, within a prefixed cost and time. Their unique features are high variety of products and low volume. The examples of process-focused include; Machine shop, Hospitals, and Banks (Askar, C. 2007).

Repetitive-focused strategy, also known as Mass Production entails production of assemblies, or parts, using a continuous process. The strategy is characterized by large volume of production. The machines get arranged in a product layout, or line. Also, all the outputs follow one path; this is due to product and process standardization. Examples of repetitive-focused strategy include; clothes dryer, fast food, and truck (Askar, C. 2007).

Product-focused strategy also known as Continuous Production entails facilities arranged in a sequence of production operations i.e. from the first operations to the final product. The devices, such as material handling devices and conveyors allow products to follow a sequence of operation. The examples of product-focused strategy include: production of soft drinks, bulbs manufacturing, and paper production (Askar, C. 2007).

Mass Customization also known as Batch Production gets applied when the jobs are passed into functional departments in batches, or masses, and each batch holds its own routing. Mass customization is characterized by the production of few products at normal intervals, thus leading to stocking of products to wait for marketing. In the batch production strategy, the other types of strategies become so flexible that the difference between them becomes minimal, making volume issues and variety less important.

Location of facilities for operations is a continuing decision making process which involves long-term assurance about the geographical static factors that affect an organization. It is a crucial strategic level decision-making for any organization. It mainly deals with the organization’s main operations should be based.

Choosing a proper location is one of key-decisions that an organization has to make when deciding to set up the plant or machinery. This can be attributed to the fact that an improper location can lead to losses and wastes of organization’s investment made on machinery and a plant. Hence, location of machinery and a plant can be based on various factors; an organization’s expansion plan and policy, the varying sources of raw materials and the diversification of products (Hurreeram, D. K. 2004).

The organization’s location strategy should match with and be a part of the organization’s expansion plan and policy. Hence, if an organization is striving to become a leader in what it does then it must establish its machineries and plant in regions that are consistent with its policies and plan.

The organization should also set the machineries and plant in areas close to the raw materials in order to maximize on returns. Diversification of products expands the organization’s operations by adding products, markets, services, or level of production to the present production line. Diversification allows an organization to enter into different businesses other than its current operation. Hence, the location of the different lines of production matters because it increases the organizations returns ( Heizer, J. & Render B. 2001)

Conclusion

Process design entails the process of changing raw materials into finished goods. The main purpose of location strategy is to come up with an optimal location whose result would be of assistance to the organization.

References

Heizer, J., & Render, B. (2001). Principles of Operations Management. National Library of Australia. Retrieved from http://trove.nla.gov.au/work/7299479

Askar, C. (2007) Process strategies. Retrieved from http://www2.cob.ilstu.edu/achoudh/choudhury/classes/Mqm227/ch07_classnote_1.pdf

Hurreeram, D. K. (2004). Location Strategy. Retrieved from http://www.uom.ac.mu/faculties/foe/mped/Students_Corner/notes/EnggManagement/lecture6.pdf

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