Factors affecting process design - nature of product, Project Management

Factors affecting Process Design - Nature of Product

The operations management has to design the production systems to produce products/ service of the kind that customers want when they want them and at a cost that follow the firm to be profitable.

Production process must have adequate capacity to produce the volume of products. Service that customer wants. The  demand  forecast  (seasonality of demand, growth  trends and  other patterns of demand)  for the   products/ Service can be  the  basis for  determining type production capacity needed in the future period  or the time horizon of the demand forecast.

The volume of demand is related to the price of the product Service. The price volume relationship can be illustrated by means of price volume curve.

359_Factors affecting Process Design.png

It can  be seen  from figure aside that  when  price is set a high level consumers tend to  buy  lower  volumes of products services and vice versa.  Concepts implicit in price volume curves having important implications for designing production processes are:

  1. Every price  along  the price  volume  curve assumes a combination of elements of marketing  efforts such as  adverting sales force customer services  provided credit terms provided a particular product/Service  design, inventory  and shipping  policies and quality requirements.
  2. At different  price  levels, different  approaches to production  must  be adopted so that the  customers services provided, product/ Service design offered ( custom built design vs. standard design)  inventory and shipping policies product quality level and production cost  requirements can be met.
Posted Date: 1/11/2013 5:44:04 AM | Location : United States







Related Discussions:- Factors affecting process design - nature of product, Assignment Help, Ask Question on Factors affecting process design - nature of product, Get Answer, Expert's Help, Factors affecting process design - nature of product Discussions

Write discussion on Factors affecting process design - nature of product
Your posts are moderated
Related Questions
Processes by Market Orientation Processes can  also be categorized on the basis  of four  marker orientations: Make to Stock (MTS): the goods usually are standard mat

Question 1: As a Business development Officer, how you will bring business to a CRO? Responsibilities and roles of Business development Officer in a CRO Method and Tec

What is the procedure of privatization? This is however; wrong to think about the procedure of privatization can act as a magic wand. An extremely recent comparative study of t

Develop a work breakdown structure. 3. Make a list of the specific activities that need to be done between now and the wedding day. 4. For each activity, identify the person (Tony,

Analysis of Line Balancing Problems The procedure involves the followings steps: Determine the number of work stations and time available at each work stations.

External recruitment has certain merits: The selection of staff can be made from a much greater number of people. It brings individuals into the organization who have d

student in project management request topic on saving

Project Management Value Initiative The project management initiative program is a six step process which is designed to bring about a measurement team from the introduction to

After the data have been collected the researcher turns to the task of analyzing them. The analysis of data requires a number of closely related operations such as esta

The followings is a list of some of the common misconceptions that should be understood by those claiming to have used quality by design: 1. Quality by design is not simult