Question

Which of the following is true with respect to a job shop vs. a continuous​ process? The job shop tends to​ have:

A. lower vertical integration and lower WIP inventory

B. higher vertical integration and higher WIP inventory

C. higher vertical integration and lower WIP inventory

D. lower vertical integration and higher WIP inventory

Answer 1

Option:C,

High vertical integration and lower WIP Work-in-progress (WIP) is a production and supply-chain management term describing partially finished goods awaiting completion.

Job Shop

BY INC. EDITORIAL, INC. STAFF

A job shop is a type of manufacturing process in which small batches of a variety of custom products are made. In the job shop process flow, most of the products produced require a unique set-up and sequencing of process steps. Job shops are usually businesses that perform custom parts manufacturing for other businesses. However, examples of job shops include a wide range of businesses—a machine tool shop, a machining center, a paint shop, a commercial printing shop, and other manufacturers that make custom products in small lot sizes. These businesses deal in customization and relatively small production runs, not volume and standardization.

In the job shop, similar equipment or functions are grouped together, such as all drill presses in one area and grinding machines in another in a process layout. The layout is designed to minimize material handling, cost, and work in process inventories. Job shops use general purpose equipment rather than specialty, dedicated product-specific equipment. Digital numerically controlled equipment is often used to give job shops the flexibility to change set-ups on the various machines very quickly. Because economies of scale are usually not a part of a job shop's competitive edge, they compete on factors other than price. They compete on quality, speed of product delivery, customization, and new product introduction.In the job shop, similar equipment or functions are grouped together, such as all drill presses in one area and grinding machines in another in a process layout. The layout is designed to minimize material handling, cost, and work in process inventories. Job shops use general purpose equipment rather than specialty, dedicated product-specific equipment. Digital numerically controlled equipment is often used to give job shops the flexibility to change set-ups on the various machines very quickly. Because economies of scale are usually not a part of a job shop's competitive edge, they compete on factors other than price. They compete on quality, speed of product delivery, customization, and new product introduction.