3. Consider five generic types of processes: 1) job shops 2) batch flow processe

Question

3. Consider five generic types of processes: 1) job shops 2) batch flow processes 3) cells 4) machine-paced lines 5) continuous flow processes.

All else being equal, match each of the five products / situations / contexts below to the single process type that you believe best fits it. Each of the five situations must be matched to a different process type (so your five answers will cover all five process types, and you may not use any process type more than once). Thus, if you believe, for example, that either of two process types would be appropriate for the situation described, you have to choose the one that would work better.

A. Production of a high-volume commodity liquid detergent?

B. Production of expensive and complex test machinery, for which the manufacturing process requires (1) precision machining, (2) sheet metal stamping, (3) chemical etching and electroplating in toxic and/or caustic chemical baths, and (4) subcomponent assembly. The product (test equipment) is highly customized with a wide range of available features. The labor content depends on the particular combination of features selected; any specific configuration is rarely produced twice. Product is made strictly to order, and long lead times are a matter of course.

C. Production of expensive and complex test machinery, for which the manufacturing process requires (1) precision machining, (2) sheet metal stamping, (3) chemical etching and electroplating in toxic and/or caustic chemical baths, and (4) subcomponent assembly. The product (test equipment) is standardized with few options available. Because customers demand quick response to orders, product is made to stock. Customer orders are filled from finished goods inventories.

D. Production of a narrow range of consumer electronics, where low cost is critical.

E. Production of a wide range of consumer electronics (several product categories, where the mix of demand among the categories is quite stable) characterized by very short product life cycles and a rapid rate of new product introduction.

Explanation / Answer

Ans: - continuous flow process

(1) precision machining,

(2) sheet metal stamping,

(3) chemical etching and electroplating in toxic and/or caustic chemical baths, and

(4) subcomponent assembly.

The product (test equipment) is highly customized with a wide range of available features. The labor content depends on the particular combination of features selected; any specific configuration is rarely produced twice. Product is made strictly to order, and long lead times are a matter of course.

C. Production of expensive and complex test machinery, for which the manufacturing process requires

(1) precision machining,

(2) sheet metal stamping,

(3) chemical etching and electroplating in toxic and/or caustic chemical baths, and

(4) subcomponent assembly. The product (test equipment) is standardized with few options available. Because customers demand quick response to orders, product is made to stock. Customer orders are filled from finished goods inventories.

D. Production of a narrow range of consumer electronics, where low cost is critical.

Marketers employ various kinds of appeals to make products appear more attractive for consumers. Consumers also pay attention to and rely on these appeals to decide whether to purchase the products, to look for other products, or to visit other stores for comparisons (Anderson & Simester, 2003Anderson, E.T., & Simester, One of the appeals frequently utilized in retail advertisement is a wording appeal, “high quality, low price” (HQLP appeal). For example, Safeway claims “Check out our brands! You will find high quality brands at low prices” and H&M claims their business concept such as “fashion and quality at the best price.” This type of appeal is used over a wide range of product and service categories such as clothing, cosmetics, furniture, housing, rent-a-car, and so on. The prevalence of this appeal indicates that marketers must consider it a success; however, it has been largely neglected by marketing researchers although a considerable amount of studies focused on effectiveness of available information regarding products for consumers.

E. Production of a wide range of consumer electronics (several product categories, where the mix of demand among the categories is quite stable) characterized by very short product life cycles and a rapid rate of new product introduction.

A new product passes through set of stages known as product life cycle. Product life cycle applies to both brand and category of products. Its time period vary from product to product. Modern product life cycles are becoming shorter and shorter as products in mature stages are being renewed by market segmentation and product differentiation.

Companies always attempt to maximize the profit and revenues over the entire life cycle of a product. In order to achieving the desired level of profit, the introduction of the new product at the proper time is crucial. If new product is appealing to consumer and no stiff competition is out there, company can charge high prices and earn high profits.

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