LINKING PROCESS CHOICE WITH PLANT-LEVEL DECISIONS ABOUT CAPITAL AND HUMAN RESOURCES

We examine how process choice links with design decisions about capital and human resources. Our analysis confirms empirically most expected differences between process‐ and product‐focused plants for these decisions. What is unexpected is how top‐performing plants resemble other plants within the s...

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Bibliographic Details
Published in:Production and operations management 1999-12, Vol.8 (4), p.374-392
Main Authors: Ritzman, Larry P., Safizadeh, M. Hossein
Format: Article
Language:English
Subjects:
Automation
CAPITAL INTENSITY
Cognition & reasoning
Cost control
Design
Flexibility
HUMAN RESOURCE MANAGEMENT
Human resources
Inventory control
Job shops
Manufacturing
Operations research
Preventive maintenance
PROCESS CHOICE
Process planning
RESOURCE FLEXIBILITY
Studies
Variables
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Summary:We examine how process choice links with design decisions about capital and human resources. Our analysis confirms empirically most expected differences between process‐ and product‐focused plants for these decisions. What is unexpected is how top‐performing plants resemble other plants within the same process choice category in most respects, while distinguishing themselves on a few selected process attributes. For example, better performing process‐focused plants not only achieve higher machine flexibility levels and lower overhead costs as expected, but also have more intensive preventive maintenance programs. Similarly, product‐focused plants that achieve certain hallmarks of process‐focused plants also enjoy superior performance.
ISSN:1059-1478
1937-5956
DOI:10.1111/j.1937-5956.1999.tb00314.x