This is a summary of all the lectures of the course 'Design and Planning of Production.' It includes all the material and formulas that you need to study for the exam. The exam is open book, so it is useful to take this summary with you.
Samenvatting Design and Planning of Production,
videocolleges
,Lecture 2 Manufacturing Strategy
Main choice: competitive priorities: what do you choose to be good at? Three ways to express this
choice
● Dominant orientation: what is my identity?
● Diversification patterns: which products do I offer in which markets?
● Strategy for growth: what are my goals, and how do I get there
→ Competitive priorities
You cannot be the best in everything simultaneously. Distinguish between order winners from order
qualifiers.
● Order winners: enables you to distinguish yourself. Make sure to be on the performance frontier
with order winnen, otherwise your competitors will be.
● Order qualifiers: what is the minimum level of performance? Don't invest more than necessary
→ your competitive priorities must be congruent with the decisions that you make at all levels: identity,
diversification and growth.
1st driving forde: Dominant Orientation
● Market: know what your customers want
● Product: be an expert in product, find new uses for it
● Technology: be able to exploit the newest technologies in your processes and product: push
them to the market
→ Dominant orientation drives your focus and culture
,2nd driving force: Diversification Patterns
● Multiple production the same market
● Different markets with the same product
● Multiple links in the supply chain (vertical integration). You offer a product, but you take care of
more stages in the supply chain than just one. For example, netflix creates their own movies
● Multiple products in different markets: spreading the risk. For example, Microsoft offers
consumer and professional software.
3rd driving force: Perspective of Growth
● Opportunities
○ Take new markets
○ Increase return on investment
VS
● Threats
○ Not growing means competitors will
○ High growth makes it difficult to stabilize competitive capabilities
Manufacturing strategy implements competitive priorities through its driving forces: what is my focus
and how do I pursue growth?
➢ Where do you want to go with your organization?
➢ What do you have, and where can you go?
, Lecture 3 Product Process Matrix
➢ A major choice in the manufacturing strategy is the process choice
➢ Investigates if deviating from the diagonal on the product-process matrix is indeed
uncommon/disadvantageous
Three basic design decisions of production control
● Determine how to organize resources
○ Product
○ Process
● What kind of flows we allow in our factory
○ Unidirectional
○ Multidirectional
● Physical layout
○ Organize around product
○ All machines that have certain process group together
Primary focus of Production Control
Process focus: put all resources with similar functionality together. A product must visit multiple
departments to be finished. This must somehow be coordinated. This is the most important inhibitor of
flow.
Product focus
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