124 CHAPTER 9 LA Y O U T ST R A T E G I E S
◼ Individual workloads can usually be made to be relatively
equivalent.
◼ It usually results in low variable cost per unit.
6. Preconditions for high-volume, low-variety products are:
1. Volume is adequate for high equipment utilization
2. Product demand is stable enough to justify high invest-
ment in specialized equipment
3. The product is standardized or approaching a phase of its
life cycle that justifies investment in specialized
equipment
4. Supplies of raw material and components are adequate and
of uniform quality to ensure that they will work with the
specialized equipment.
7. Three types of work cells are the small work cell within a
plant, focused work center, and focused factory.
8. The advantages of work cells are:
◼ Reduction in work-in-process inventory
◼ Reduction in required floor space
◼ Reduced raw material and finished goods inventory
◼ Reduced direct labor cost