FOCUS FOCUS FOCUS CUSTOMIZATION Low volume, High-volume, High-volume, Modular High variety low-variety high-variety Long runs, Small quantity, large Large quantity, small Large quantity, large standardized product, variety of products variety of products variety of products from modules Special equipment General purpose Special purpose Rapid change over on aids in use of equipment equipment flexible equipment assembly line Flexible operators Broadly skilled Modestly trained Operators less trained for operators employees broadly skilled customization Many instructions Reduced training and Custom orders Few work orders and because of change in number of job require many job instructions jobs instructions instructions Raw material high Raw material low Raw material low relative to product JIT techniques used relative to product relative to product value value value WIP driven down by WIP high relative to WIP low relative to JIT techniques used JIT, kanban, lean output output production
Units move slowly Movement measured Units move swiftly Goods move swiftly thru plant in hours & days thru facility thru facility
Finished goods made
Finished goods made Finished goods made Finished goods made to forecast, then to order, not stored to frequent forecasts to order stored Scheduling complex Scheduling relatively Scheduling and concerned with Scheduling based on simple, concerns sophisticated to trade-off between building models from establishing sufficient accommodate inventory, capacity, a variety of forecasts rate of output to meet customization and customer service forecasts Fixed costs Fixed costs high; Fixed costs low, Fixed costs high, dependent on variable costs must variable costs high variable costs low flexibility of facilities be low
Costing, done by job,
Because of high fixed is estimated prior to High fixed costs and Costs usually known costs, cost dependent doing job but only dynamic variable based on experience on utilization of known after doing job costs capacity