Operations and Supply Chain Management, 8th Edition

CHAPTER   6

Processes and Technology

LEARNING OBJECTIVES

 AFTER READING THIS CHAPTER, YOU WILL BE ABLE TO:

• Evaluate strategic options in process planning, including whether or not to outsource.
• Differentiate among different types of production processes.
• Understand the effect of volume and standardization on process selection.
• Appreciate the difficulties in translating a design to a process.
• Use simple flowcharting tools to improve everyday processes.
• Investigate the use of technology in manufacturing and service processes.

MAKING THE RIGHT OUTSOURCING DECISION

VF Corporation, formerly Vanity Fair Mills, is the world's largest apparel maker and the producer of Wrangler and Lee jeans, as well as many other apparel brands. VF employs over 29,000 supply chain associates who produce 1.25 million items each day. Currently, 70% of VF's apparel production is outsourced to 1500 factories in more than 40 countries. The remaining 30% is produced in-house at 38 company-owned facilities.

VF uses three strategies for production: (1) vertical integration (i.e., in-house manufacturing), (2) transactional outsourcing, and (3) the third way. VF-owned factories use the latest processes, technology, and management. These in-house factories allow VF to keep its expertise in process and product innovation. ...