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Objective: The goal is to organize materials and machinery in a way that minimizes
the need for explicit orders or instructions.
Simplified Operations:
Objective: The goal is to organize materials and machinery in a way that minimizes
the need for explicit orders or instructions.
Simplified Operations:
Objective: The goal is to organize materials and machinery in a way that minimizes
the need for explicit orders or instructions.
Simplified Operations:
Timeframe: The production cycle from mining raw materials to creating the final
product (in this case, an automobile) takes approximately eighty-one hours.
Efficiency: This short production cycle implies a quick and efficient manufacturing
process, which aligns with the just-in-time approach.nt:
Timeframe: The production cycle from mining raw materials to creating the final
product (in this case, an automobile) takes approximately eighty-one hours.
Efficiency: This short production cycle implies a quick and efficient manufacturing
process, which aligns with the just-in-time approach.Finished products are in
transit, suggesting a just-in-time approach where goods are produced as needed and
shipped immediately.
Raw Material Inventory: Similar to finished products, raw materials are also in
transit, indicating a focus on minimizing on-site inventory.
Production Cycle:
Timeframe: The production cycle from mining raw materials to creating the final
product (in this case, an automobile) takes approximately eighty-one hours.
Efficiency: This short production cycle implies a quick and efficient manufacturing
process, which aligns with the just-in-time approach.
Technological Requirements: Assess whether the production process requires
specialized technology or skills. In some cases, outsourcing may provide access to
advanced technologies.
Innovation: Consider whether outsourcing might limit the company's ability to
innovate in the long term. In-house production may offer more control over the
innovation process.
Total Cost of Ownership (TCO):
Comprehensive Analysis: Calculate the total cost of ownership for both options,
taking into account not only direct costs but also indirect costs, such as quality
control, transportation, and communication.
Strategic Alignment:
Strategic Objectives: Ensure that the chosen option aligns with the company's
overall strategic objectives and goals.