Question 75 - CPIM-Part-2 discussion

A company's process technology and equipment should be characterized by product-independent processes and flexible automation if its competitive business strategy is based on offering customized products or features and a rapid response to market shifts. Product-independent processes are processes that can produce a variety of products or features without requiring major changes or adjustments in the production system. Flexible automation is a type of automation that can adapt to different product specifications or volumes by using programmable or reconfigurable machines, robots, or software. Product-independent processes and flexible automation can enable a company to offer customized products or features and a rapid response to market shifts by allowing it to:

Produce small batches or single units of products or features that meet specific customer needs or preferences.

Switch quickly and easily between different products or features without losing time or efficiency.

Incorporate new technologies, materials, or designs into the production system without disrupting the existing operations.

Respond to changes in demand or supply by adjusting the production capacity or output accordingly.

Continuous flow processes and a high degree of fixed automation are not suitable for a company's process technology and equipment if its competitive business strategy is based on offering customized products or features and a rapid response to market shifts. Continuous flow processes are processes that produce products or features in a continuous and uninterrupted manner, without any breaks or buffers between the stages. Fixed automation is a type of automation that uses specialized machines or equipment that are designed to perform a specific task or operation. Continuous flow processes and fixed automation can enable a company to achieve high efficiency, productivity, and quality, but they also have some limitations, such as:

They are suitable for producing large volumes of standardized products or features that have stable and predictable demand.

They are difficult and costly to modify or change when there is a need to produce different products or features or to incorporate new technologies, materials, or designs.

They are inflexible and rigid when there are variations or fluctuations in demand or supply, as they cannot adjust the production capacity or output easily.

Product-independent processes with parallel production lines are not appropriate for a company's process technology and equipment if its competitive business strategy is based on offering customized products or features and a rapid response to market shifts. Product-independent processes with parallel production lines are processes that use multiple identical machines or equipment that can produce the same product or feature simultaneously. Product-independent processes with parallel production lines can enable a company to increase its production capacity and output, but they also have some drawbacks, such as:

They are suitable for producing high volumes of standardized products or features that have high and constant demand.

They are inefficient and wasteful when there is a need to produce different products or features or to incorporate new technologies, materials, or designs, as they require duplication of resources and equipment.

They are redundant and unnecessary when there are variations or fluctuations in demand or supply, as they create excess inventory or idle capacity.

Product-dependent processes and automation based on product volume are not optimal for a company's process technology and equipment if its competitive business strategy is based on offering customized products or features and a rapid response to market shifts. Product-dependent processes are processes that can produce only one type of product or feature, or that require significant changes or adjustments in the production system to produce different products or features. Automation based on product volume is a type of automation that uses different machines or equipment depending on the volume of production required for each product or feature. Product-dependent processes and automation based on product volume can enable a company to optimize its production costs and quality, but they also have some disadvantages, such as:

They are suitable for producing low volumes of specialized products or features that have low variability and uncertainty in demand.

They are complex and time-consuming when there is a need to produce different products or features or to incorporate new technologies, materials, or designs, as they require frequent changes or setups in the production system.

They are unresponsive and slow when there are variations or fluctuations in demand or supply, as they cannot adapt the production capacity or output quickly.