3. Major factors affecting Process design decisions
3.1 Nature of product/process demand Production process must have satisfactory capacity to produce the volume of the product/service that customer want. And provision must be made for expanding or contracting capacity to keep demand patterns fulfilled. Some types of processes can be more easily expanded or contracted than others, and the choice of the type of production process will be affected by the forecasted product/service demand. Business plans set the prices of products and services. Prices affect sales volume, product design, and the required production capacity and costs therefore the choice of price and the choice of the design of production process must be carefully done.
3.2 Degree
3.1 Nature of product/process demand Production process must have satisfactory capacity to produce the volume of the product/service that customer want. And provision must be made for expanding or contracting capacity to keep demand patterns fulfilled. Some types of processes can be more easily expanded or contracted than others, and the choice of the type of production process will be affected by the forecasted product/service demand. Business plans set the prices of products and services. Prices affect sales volume, product design, and the required production capacity and costs therefore the choice of price and the choice of the design of production process must be carefully done.
3.2 Degree