Factors affecting process design - nature of product, Project Management

Assignment Help:

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.

Related Discussions:- Factors affecting process design - nature of product

Inventory and stores control, 1. Inventory  and Stores Control : Inventor...

1. Inventory  and Stores Control : Inventory  control is  a systematic procedure  for  ensuring  the  availability  of items necessary to meet the  production  requirements  at o

Illustrate the division of work in economics, Illustrate the division of wo...

Illustrate the division of work in Economics? Division of Work (or Labour): It s a famous principle of Economics, invented through the traditional economist as defined by

Total quality management approach within 2jn, 2JN is a large manufacturing ...

2JN is a large manufacturing organisation which is structured with a number of supervisors every responsible for their own work production unit. Supervisors report to a team of sen

Growth in outsourcing by organisations, Briefly explain the reasons for the...

Briefly explain the reasons for the growth in outsourcing by organisations. Outsourcing involves the contracting out of a business function to an external third partyprovider.

Project approches, Describe your approach to tracking a project?

Describe your approach to tracking a project?

Explain the methodology of sequencing the activities, Question 1 For a...

Question 1 For an event manager, organizing an AGM would be a relatively 'dry' affair as the elements of entertainment, decoration and catering are missing in this event (some

What is project management methodology, Question 1: (a) What is project...

Question 1: (a) What is project management methodology ? (b) Why do you say that project management is the best method of implementing change ? Question 2: (a)

Quantitative analysis., A highly sensitive device used to measure electrici...

A highly sensitive device used to measure electricity activity in the brain is required to have a variance in measurements not exceeding 0.0001 volts^2. if the variance exceeds thi

Continuous improvement (Individual Assignment), I and my friend would like ...

I and my friend would like to make assignment of PPMP20009 (project management methodology) of master of project management

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd