How is process selection related to product design and capacity determination

PROCESS SELECTION AND CAPACITY PLANNING

Product and service choices, process selection, capacity planning, and choices about location and layout are among the most basic decisions managers must make because those decisions have long-term consequences for the organization.

PROCESS SELECTION

Process refers to the way an organization chooses to produce its goods or provide its services. Essentially it involves choice of technology and related issue, and it has major implications for capacity planning, layout facilities, equipment, and design of work systems.

Make or buy.

In make of buy decisions, a number of factors are usually considered.

1. Available capacity (usually, contractual works are more costly).

2....