LECTURE 6
PROCESS SELECTION AND
FACILITY LAYOUT
Process Selection
•Process selection refers to deciding on the way
production of goods or services will be organized.
•It has major implications for capacity planning, layout of
facilities, equipment, and design of work systems.
•Process selection occurs as a matter of course when
new products or services are being planned.
Process Strategy
•Capital intensity: the mix of equipment and labor that will
be used by the organization.
•Process flexibility: the degree to which the system can be
adjusted to changes in processing requirements due to
such factors as changes in product or service design,
changes in volume processed, and changes in technology.
Process Types
